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Agenda 10/14/2025 Item #11B (Agreement for Sale and Purchase of 3910 Domestic Avenue for pump rebuild operations, inventory storage and personnel accommodation)10/14/2025 Item # 11.B ID# 2025-3480 Executive Summary Recommendation that the Board of County Commissioners, acting as the ex-officio Governing Board of the Collier County Water-Sewer District, approve an Agreement for Sale and Purchase of 3910 Domestic Avenue for pump rebuild operations, inventory storage, and personnel accommodation. The total cost for this transaction will not exceed $4,525,000. OBJECTIVE: The public purpose is to provide public utility facilities to effectively and sustainably meet demand and maintain health, safety, and regulatory compliance. This action is to acquire the 3910 Domestic Avenue property. CONSIDERATIONS: Due to the growth of the wastewater system, the current pump shop facility is significantly undersized and no longer meets operational, safety, and compliance demands. CCWSD’s current facility, located at 6027 Shirley St, Naples, FL 34109, houses the following business wastewater units: • Inventory • Asset Infrastructure Rehabilitation • Pump Shop • Camera and Vactor Crew and Equipment • Electrical and Instrumentation Crew and Equipment. Key limitations at the current facility include: • Inadequate Storage and Inventory Space: Insufficient room to maintain required pump parts and replacement stock. • Limited Pump Rebuild Capacity: Lack of purpose-built workspace diminishes efficiency and increases reliance on outside vendors. • Insufficient Sanitary and Personnel Accommodations: Overcrowding has reached a critical level, forcing staff and equipment to be staged at remote pump stations not designed for these uses. The remote locations lack sanitary facilities, resulting in employees relying on temporary toilets and insufficient decontamination space. Acquisition of the proposed property at 3910 Domestic Avenue, situated on 0.85 acres, directly addresses these shortcomings. The facility provides space for pump rebuild operations, inventory storage, and accommodates staff, while also improving system resilience, operational efficiency, and scalability for future growth. Two independent appraisers, using the sales comparison approach and both noting no adverse conditions, valued the property at an average of $4,560,000. The County has negotiated a purchase price of $4,500,000 for the 12,500-square- foot facility, which also includes bay units well-suited for shop and storage functions. At closing, all units will be delivered vacant, with no carryover of any existing tenants. The current Owner will be permitted to occupy the storefront, storage above, and the nearest bay unit (the “Occupied Area”) for a period not to exceed 60 days following the date of Closing (the “Occupancy Period”). During the Occupancy Period, Seller will not be required to pay rent; however, Seller will be solely responsible for all utility charges and any related service costs for installation, maintenance, and service of any separate meters required to measure such use for the Occupied Area. If Seller fails to vacate at the end of the Occupancy Period, Seller will be liable for holdover damages in the amount of $233.33 per day, in addition to any other remedies available to Purchaser at law or in equity. Notable terms of the Purchase and Sale Agreement (“Agreement”) include: • Purchase Price: $4,500,000 or the average value determined by two appraisers, if lower. However, Seller may rescind the Agreement if the Board does not approve a purchase price of $4,500,000. • Inspection: If Phase I Environmental Assessment requires Phase II Environmental Assessment, the Seller is required to pay for Phase II, but if the price exceeds $5,000, then they may rescind the agreement without penalty. • Closing: 180 days from the date of the Agreement, or within 30 days of the County’s receipt of all reasonably required closing documents, whichever is later. Page 1129 of 6526 10/14/2025 Item # 11.B ID# 2025-3480 • 3rd party Inspection Period: 90 days from the date of the Agreement. This item is consistent with the Collier County strategic plan objective to plan and build public infrastructure and facilities to effectively, efficiently, and sustainably meet the needs of our community. FISCAL IMPACT: The total cost of the acquisition should not exceed $4,525,000 ($4,500,000 for the purchase price; $25,000 for a title commitment, title policy, closing costs and recording of the documents). The source of funding is Wastewater User Fee Capital Fund (4014). A budget amendment is required to allocate $4,525,000 from the SCWRF Electrical #1 Upgrade, Project No. 70288 to the Wastewater Collections Building, Project No. 70296 within the Wastewater User Fee Capital Fund (4014). GROWTH MANAGEMENT IMPACT: The item is consistent with the Growth Management Plan. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for approval. – SAA RECOMMENDATIONS: 1. Approve the attached Agreement for Sale and Purchase. 2. Authorize the Chairman to execute the Agreement and any additional closing documents. 3. Authorize staff to prepare related vouchers and warrants for payment. 4. Authorize necessary budget amendments. 5. Direct the County Manager or their designee to proceed to acquire the Property 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: Grant Cox, Property Acquisition Specialist II ATTACHMENTS: 1. 3910 Domestic Avenue Location Map 2. Seller Signed P.A._RA Signed 3. Carlson Norris' Appraisal 4. RKL's Appraisal 5. BA - CIP 4014 - 70296 - WW Collections bldg Page 1130 of 6526 Page 1131 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 AGREEMENT FOR SALE AND PURCHASE THIS AGREEMENT FOR SALE AND PURCHASE (hereinafter referred to as this "Agreement") is made and entered into by and between AMBROSI 3 LLC, a Florida limited liability company whose address is 3910 Domestic Avenue, Naples, FL 34104 (hereinafter referred to as "Seller"), and the BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT, its successors and assigns, whose address is 2685 Horseshoe Drive South, Suite 103, Naples, FL 34104 (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: I. AGREEMENT 1.01 ln consideration of the purchase price and upon the terms and conditions hereinafter set forth, Seller shall sell to Purchaser and Purchaser shall purchase from Seller the Property, described in Exhibit "A" attached hereto and made a part of this Agreement. II. PAYMENT OF PURCHASE PRICE 2.01 The purchase price (the "Purchase Price") for the Property shall be Four Million, Five Hundred Thousand Dollars and 00/100 dollars ($4,500,000.00), (U.S. Currency) or the average of two appraisals engaged by the Purchaser, whichever is lower, payable at time of Closing; lf the average of the appraisals is less than Four Million Five Hundred Thousand and 00/100 Dollars ($4,500,000.00), the Board of County Commissioners may, by supermajority vote, approve payment of the higher Purchase Price. Notwithstanding anything in this Agreement to the Public Utilities Division 612025 Page 1 of 17 cP'o Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1132 of 6526 Collier County Water-Sewer District TAX ]D NUM BER : 00282090906 contrary, if such supermajority approval is not obtained or if for any reason the Purchase Price to be paid to Seller to Purchaser at Closing is less than Four Million, Five Hundred Thousand Dollars and 00/100 dollars ($4,500,000.00), then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. III. CLOSING 3.01 The Closing (THE "CLOSING DATE", "DATE OF CLOSING", OR "CLOSING") of the transaction shall be held on or before one hundred and eighty (180) days following execution of this Agreement by the Purchaser, or within thirty (30) days of Purchaser's receipt of all reasonably required closing documents, whichever is later; provided, however, notwithstanding anything herein to the contrary, if for any reason Closing does not occur on or before December 31,2025, and the failure to Close is not caused by any act or omission of the Seller, then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. The Closing shall be held at the office of the insuring title company or by mail or by electronic signatures. 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, if legally required, acknowledged and in recordable form: 3.0111 Warranty Deed in favor of Purchaser conveying title to the Propefi, free and clear of all liens and encumbrances other than: (a) The lien for current taxes and assessments (b) Such other easements, restrictiohs, or conditions of record. 3.0 112 Combined Purchaser-Seller closing statement. 3.0113 A "Gap Tax Proration, Owner's Non-Foreign Affidavit", as required by Section 1445 of the lnternal Revenue Code and as required by the title insurance undenrvriter to insure the "gap" and issue the policy contemplated by the Title Commitment. 3.0114 A W-9 Form, "Request for Taxpayer ldentification and Certification" as required by the lnternal Revenue Service. Public Utilities Division 612025 Page 2 of 17 cho Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1133 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 3.012 At the Closing, the Purchaser, or its assignee, shall cause to be delivered to the Seller the items specified herein and the following documents and instruments duly executed : 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 Title 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 Title Commitment immediately after the recording of the deed. 3.0122 Funds payable to the Seller representing the cash payment due at Closing in accordance with Article lll hereof, shall be subject to adjustment for prorations as hereinafter set forth. 3.0 123 Combined Purchaser-Seller closing statement. 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 electronic fee of recording any instruments necessary to clear Seller's title to the Property (including a Multiple Lien Search, Electronic Service Fees for documents being recorded, and a Corporate Affidavit). The cost of the Owne/s Form B Title Policy, issued pursuant to the Title Commitment provided for in Section 4.011 below, shall be paid by Purchaser. The cost of the Title Commitment along with the closing fee and any other charges for title services shall also be paid by Purchaser. lf (i) required by a Phase I report issued by a licensed environmental professional received prior to Closing at Purchaser's sole expense and (ii) desired by Purchaser, then Seller shall pay for a Phase ll Environmental Assessment selected by Purchaser; provided, however, if for any reason the cost of such Phase ll Environmental Assessment exceeds Five Thousand Dollars and 00/100 dollars ($5,OOO.OO), then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. 3.03 Purchaser shall pay for the cost of recording the Warranty Deed. Real Property taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and any other applicable exemptions and paid by Seller. lf Closing occurs at a date which the current yeads millage is not fixed, taxes will be prorated based upon such prior yea/s millage. Public Utilities Division 612025 Page 3 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1134 of 6526 Collier County Water-Sewer District TAX lD NUM BER : 00282090906 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 fifteen (15) days after the effective date hereof, Purchaser shall request as evidence of title an ALTA Commitment for an Owner's Title lnsurance Policy (ALTA Form B-1970) covering the Property (the "Title Commitment"), together with hard copies of all exceptions shown thereon. Purchaser shall have thirty (30) days, following receipt of the Title Commitment, to notify Seller in writing of any objection to title other than liens evidencing monetary obligations, if any, which obligations shall be paid at Closing. lf the Title Commitment contains uncurable 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 no later than ninety (90) days after the effective date of this Agreement as Purchaser's sole remedy. 4.012 lf Purchaser shall fail to advise the Seller in writing of any such objections or uncurable exceptions in Selleds title in the manner herein required by this Agreement, the title shall be deemed fully acceptable to Purchaser and Purchaser shall waive all rights to raise any further objections or uncurable exceptions in Selle/s title. Upon notification of Purchase/s objection to title, Seller shall have thirty (30) days to cure or othenuise remedy any defects to convey good and marketable title at Seller's expense, except for liens or monetary obligations which will be satisfied at Closing. Seller, at its sole expense, shall use its best efforts to make such title good and marketable. ln the event Seller is unable to cure said objections within said time period, Purchaser, by providing written notice to Seller within seven (7) days after expiration of said thirty (30) day period, may accept title as it then is, waiving any objection; or Purchaser may terminate the Agreement as Purchaser's sole remedy. 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 and the contingencies in Sections 4.011 and 4.012 shall be deemed waived. 4.013 Seller agrees to furnish any existing surveys of the Property in Seller's possession to Purchaser within ten (10) days of the effective date of this Agreement. 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 Public Utilities Division 612025 Page 4 of 17 cAo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1135 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 change to the total acreage referenced in Exhibit "A," unless the difference in acreage revealed by survey exceeds 5o/o of the overall acreage. lf the survey provided by Seller or obtained by Purchaser, as certified by a registered Florida surveyor, shows: (a) an encroachment onto the property; or (b) that an improvement located on the Property projects onto lands of others, or (c) lack of legal access to a public roadway, the Purchaser shall notify the Seller in writing of such encroachment, projection, or lack of legal access, and Seller shall have the option of curing said encroachment or projection, or obtaining legal access to the Property from a public roadway, within sixty (60) days of receipt of said written notice from Purchaser. Purchaser shall have ninety (90) days from the effective date of this Agreement to notify Seller of any such objections. Should Seller elect not to or be unable to remove the encroachment, projection, or provide legal access to the property within said sixty (60) day period, Purchaser, by providing written notice to Seller within seven (7) days after expiration of said sixty (60) day period, may accept the Property as it then is, waiving any objection to the encroachment, or projection, or lack of legal access, or Purchaser may terminate the Agreement as Purchaser's sole remedy. 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 Property with the encroachment, or projection, or lack of legal access and the contingencies in this Section 4.013 shall be deemed waived. V. INSPECTION PERIOD 5.01 Purchaser shall have ninety (90) days from the effective date of this Agreement, ("lnspection 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 environ- mental laws and the Property is free from any pollution or contamination. 4. The Property can be utilized for its intended use and purpose by the Collier Cou nty Water-Sewer D istrict. 5.02 lf Purchaser is not satisfied, for any reason whatsoever, with the results of any investigation, Purchaser shall deliver to Seller prior to the expiration of the lnspection Period, written notice of its intention to waive the applicable contingencies or to terminate this Agreement. lf Purchaser fails to notify the Seller in writing of its specific objections as provided herein within the lnspection Period, it shall be deemed that the Purchaser is satisfied with the results of its Public Utilities Division 612025 Page 5 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1136 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 investigations and the contingencies of this Article V shall be deemed waived. ln the event Purchaser elects to terminate this Agreement because of the right of inspection, Purchaser shall deliver to Seller copies of all engineering reports and environmental and soil testing results commissioned by Purchaser with respect to the Property. 5.03 Purchaser and its agents, employees and servants shall, at their own risk and expense, have the right to go upon the Property during normal business hours 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. Seller shall be notified by Purchaser no less than twenty-four (24) hours prior to said inspection of the Property. Purchaser shall be solely responsible for any and all damage to the Property or improvements thereon caused by or resulting from any inspections, analyses, borings or other investigations conducted by Purchaser or any of its agents, employees and servants, Purchaser agrees to repair such damage and restore the Property and improvements thereon to their pre-existing condition. Purchaser's repair and restoration obligations hereunder shall survive termination of this Agreement. VI. INSPECTION 6.01 Seller acknowledges that the Purchaser, or its authorized agents, shall have the right to inspect the Property at any time during normal business hours prior to the Closing upon no less than twenty-four (24) hours prior notice to Seller. VII. POSSESSION 7.O1 Purchaser shall be entitled to full possession of the Property at Closing, subject to the following temporary occupancy rights granted to Seller. Purchaser shall allow the Seller to occupy and use (i) all of the shop (i.e., retail space) portion of the Property, including all of the upstairs area above the shop (i.e. the portion of the Property closest to Domestic Avenue), (ii) all of the bay adjacent to the shop and closest to Domestic Avenue (i.e., the first of five warehouse spaces) and (iii) the five (5) parking spaces in the parking area closest to and abutting the front doors to the shop (collectively, the "Occupied Area") for a period of up to sixty (60) days following the date of Closing ("Occupancy Period"). Seller shall not be required to pay rent or any other amounts to Purchaser for such post-Closing Occupancy Period; however, Seller shall be solely responsible for all utility charges associated with the use of the Occupied Area during such Occupancy Period, as well as the cost of installation, maintenance, and service of any separate meters required to measure such use, if any. All other portions of the Property shall be delivered vacant and free of any personal property or occupants at Closing. Upon expiration of the Occupancy Public Utilities Division 612025 Page 6 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1137 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282O90906 Period, Seller shall deliver the Occupied Area to Purchaser free and clear of all personal property and occupants, in broom clean condition, and othenrvise in the same condition as it existed as of the date of Closing. lf Seller fails to vacate at the end of the Occupancy Period, Seller shall be liable for holdover damages in the amount of $233.33 per day, in addition to any other remedies available to Purchaser at law or in equity. Seller shall maintain commercially reasonable liability and personal property insurance naming Purchaser as an additional insured during the Occupancy Period. Seller shall release, indemnify and hold harmless Purchaser, as well as their employees, agents and representatives, from any and all claims, demands, causes of action or damages of any kind or nature brought by the undersigned or others, including reasonable attorneys' fees, arising out of or in any way associated with Seller's post-Closing temporary occupancy of the Occupied Area, including without limitation any personal injury or property damage arising from such occupancy. This indemnification shall survive the Closing and remain in full force and effect until the expiration of the Occupancy Period and the resolution of any claims arising therefrom. VIII. PRORATIONS 8.01 Ad valorem taxes next due and payable after closing on the Property shall be prorated as of the Closing Date (with Seller charged for the period prior to the Closing Date and Purchaser charged for the period on and after the Closing Date) based upon the gross amount of current year taxes. IX. TERMINATION AND REMEDIES 9.01 lf Seller shall have failed to perform any of the covenants and/or agreements contained herein which are to be performed by Seller, within ten (10) days of written notification of and opportunity to cure such failure, Purchaser may, at its option, terminate this Agreement by giving written notice of termination to Seller; provided, however, if the cure of such failure reasonably requires more than ten (10) days, then Seller shall have an additional (and final) thirty (30) day period commencing immediately upon the expiration of the initial ten (10) day period so long as Seller is continuously and diligently taking action to complete the cure of such failure as soon as reasonably practicalwithin such additional (and final) thirty (30) day period. lf Seller fails to cure such failure within the extended cure period, Purchaser may terminate this Agreement by written notice to Seller. Termination in accordance with this section shall be Purchaser's sole and exclusive remedy for any such failure by Seller. 9.02 lf Purchaser shall have failed to perform any of the covenants and/or agreements contained herein which are to be performed by Purchaser, within ten Public Utilities Division 612025 Page 7 of 17 c4r, Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1138 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 (10) days of written notification of and opportunity to cure such failure, Seller may, at its option, terminate this Agreement by giving written notice of termination to Purchaser; provided, however, if the cure of such failure reasonably requires more than ten (10) days, then Purchaser shall have an additional (and final) thirty (30) day period commencing immediately upon the expiration of the initial ten (10) day period so long as Purchaser is continuously and diligently taking action to complete the cure of such failure as soon as reasonably practical within such additional (and final) thirty (30) day period. lf Purchaser fails to cure such failure within the extended cure period, Seller may terminate this Agreement by written notice to Purchaser. Termination in accordance with this section shall be Seller's sole and exclusive remedy for any such failure by Purchaser. 9.03 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. X SELLER'S AND PURCHASER'S REP RESENTATIONS AN D WARRANTI ES 10.01 Seller and Purchaser represent and warrant the following: 10.011 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. To the best of Seller's knowledge, Seller is not presently the subject of a pending, threatened or contemplated bankruptcy proceeding. Seller further represents the Property is free from any and all occupants, tenants, and other persons or entities claiming possession of the Proper$ at the time of Closing. This provision shall survive Closing. 10.012 Seller has full right, power, and authority to own and operate the Property, and to execute, deliver, and perform its obligations under this Agreement and the instruments executed in connection herewith, and to consummate the transaction contemplated hereby. All necessary authorizations and approvals have been obtained authorizing Seller and Purchaser to execute and consummate the transaction contemplated hereby. At Closing, certified copies of such approvals shall be delivered to Purchaser and/or Seller, if necessary. 10.013 The warranties set forth in this paragraph shall be true on the effective 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. Public Utilities Division 612025 Page 8 of 17 Qqo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1139 of 6526 Collier County Water-Sewer District TAX ID NUIVBER. 00282090906 1O.O14 Seller represents that it has no knowledge of any actions, suits, claims, proceedings, litigation or investigations pending or threatened against Seller, at law, equity or in arbitration before or by any federal, state, municipal or other governmental instrumentality that relate to this agreement or any other property that could, if continued, adversely affect Selle/s ability to sell the Property to Purchaser according to the terms of this Agreement. 10.015 No party or person other than Purchaser has any right or option to acquire the Property or any portion thereof. 10.016 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. 10.017 Seller represents that they have (it has) no knowledge that there is or ever has been incinerators, septic tanks, or cesspools on the Property; all waste, if any, is discharged into a public sanitary sewer system; Seller represents that they have (it has) no knowledge that any pollutants are or have been discharged from the Property, directly or indirectly into any body of water. Seller represents that to their knowledge 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, to the best of Seller's knowledge, 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 that they have (it has) no knowledge that there is or ever has been any 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 that they have (it has) no knowledge that any part of the Property has ever been used as a sanitary landfill. 10.018 Seller has no knowledge that the Property and Selle/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, Public Utilities Division 612025 Page 9 of 17 Qqo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1140 of 6526 Collier County Water-Sewer District TAX ID NUMBER: 00282090906 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. 10.019 Seller has no knowledge of unrecorded leases, licenses or other possessory interests, restrictions, easements, or rights of way (other than easements, restrictions or conditions of record, and 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 which have not been disclosed to Purchaser in writing prior to Closing. 10.020 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 Selle/s ability to perform hereunder; nor does Seller have knowledge of any other charge or expense upon or related to the Property which has not been disclosed to Purchaser in writing prior to the Closing. 10.021 Seller acknowledges and agrees that Purchaser is entering into this Agreement based upon Selle/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. 10.022 Upon Purchaser's request 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 shallsurvive the Closing. Public Utilities Division 612025 Page 10 of 17 a16 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1141 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 10.023 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 common law relating to pollution or protection of the environment to the extent arising from the condition of the Property prior to the Closing Date, including, 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. 10.024 Any loss and/ordamage to the Property between the effective date of this Agreement and the date of Closing shall be Selle/s sole risk and expense. XI. NOTICES 11.O1 Any notice, request, demand, instruction, or other communication to be given to either party hereunder shall be in writing, sent by facsimile with automated confirmation of receipt, or by registered, or certified mail, return receipt requested, postage prepaid, and with notification to the other Paff sent via email containing the tracking number and/or fax number (if applicable) of such notice addressed as follows: lf to Pu rchaser:Joseph Bellone Division Director Public Utilities Division 3339 Tamiami Trail E. Suite 301 Naples, Florida 341 12 Email: Joseph.Bello Iiercou ntvfl.oov With a copy to Attn: Grant Cox Collier County Real Property Management 2685 Horseshoe Dr. S., Suite 103 Naples, Florida 34104 Telephone n umber: 239-252-5373 Fax number: 239-252-8876 Ema il : G ra nt. Cox@co lliercou ntyfl.q ov Public Utilities Division 612025 Page 11 of 17 Q<o Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1142 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 lf to Seller:Name: AMBROSI 3 LLC, a Florida lirnited liability company Address: 3910 Domestic Avenue City. Naples State. FL Zip:34104 Telephone n umber: 239-253- 177 4 Fax number: _N lA- Email: rba7660@qmail.com With a copy to Attn: William L. Owens Bond, Schoeneck & King, PLLC 4001 Tamiami Trail North, Suite 105 Naples, FL 34103 Telephone n umber: 239-6 59-3822 Fax number: 239-649-3410 E ma i I : wowg n s@.[-s,K. co m & Name: Cody Shadley Address: 9130 Galleria Court, Suite 100 City: Naples State. FL Zip. 341 09 E m a i I : co d vs h adlgy(QK,gy.ag_q..,-c".o m & Name: Bryan Flores Email : bryanflores@kovacq .com 11.02 The addressees and numbers 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. XII. REAL ESTATE BROKERS 12.01 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. Public Utilities Division 612025 Page 12 of 17 aro Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1143 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 XIII. MISCELLANEOUS 13.01 This Agreement may be executed in any manner of counterparts by manual signature or authenticated by any electronic signature or other method effective under applicable law, each of which shall be deemed an original and all of which together shall constitute one and the same agreement of the parties. 13.02 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. 13.03 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. 13.04 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. 13.05 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. 13.06 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. 13.07 lf any date specified in this Agreement falls on a Saturday, Sunday, or legal holiday, then the date to which such reference is made shall be extended to the next succeeding business day. 13.08 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. 13.09 lf the Seller holds the Property in the form of a partnership, limited partnership, corporation, trust, or any form of representative capacity whatsoever for others, Seller shall make a written public disclosure, according to Chapter 286, Florida Statutes, under oath, of the name and address of every person having a Public Utilities Division 612025 Page 13 of 17 elo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1144 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 beneficial interest in the Property before Property held in such capacity is conveyed to Collier County. (lf the corporation is registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock is for sale to the general public, it is hereby exempt from the provisions of Chapter 286, Florida Statutes.) 13.10 This Agreement is governed and construed in accordance with the laws of the State of Florida. XIV. ENTIRE AGREEMENT 14.01 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. XV. ACKNOWLEDGMENT OF POTENTIAL FUTURE USE 15.01 Any development rights or credits available on the Property are relinquished by the Seller and conveyed to the Purchaser at Closing as part of the sale of the Property. S/GA/ATURES APPEAR O/V THE FOLLOWING PAGES Public Utilities Division 612025 Page 14 of 17 CAC Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1145 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 lN WITNESS WHEREOF, the parties hereto have signed below Dated ProjecUAcquisition Approved by BCC:_ AS TO PURCHASER: ATTEST: CRYSTAL K. KINZEL, Clerk of the Circuit Court and Comptroller BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS THE EX-OFFICIO THE GOVERNING BOARD OF THE COLLIER COU NTY WATER-SEWER DISTRICT By: , Deputy Clerk Burt L. Saunders, Chairman REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK cAO Public Utilities Division 612025 Page 15 of 17 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1146 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 AS TO SELLER: AMBROSI 3 LLC, a Florida limited liability company By: Name: Rudy Ambrosi Title: Manager Date: Approved as to form and Iegality: Sally A. Ashkar, Assistant County ,r/\ Public Utilities Division 612025 1V Page 16 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A 7/25/2025 Page 1147 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 EXHIBIT *A" PROPERTY IDENTIFICATION NUMBER: 00282090906 The West 1 1 8 feet of the North 1 12 of the South 688.60 feet of the West 1 12 of the East 112 of the East 112 of the Northwest 114, Section 36, Township 49 South, Range 25 East, of the Public Records of Collier County, Florida. 0.85 ACRES +l- CAO Public Utilities Division 612025 Page 17 of 17 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1148 of 6526 Page 1149 of 6526 Real Estate Valuation Experts Trusted since 1985 August 29, 2025 Collier County Procurement Services Division Planning & Project Management Dept. Attention: Joanna Ciani 3339 Tamiami Trail E Ste 303 Naples, FL 34112 Re: Warehouse/Office Building 3910 Domestic Avenue Naples, Florida 34104 Parcel ID: 00282090906 Purchase Order Number: 4500239839 Our File Number: 25-174 Dear Ms. Ciani, At your request and authorization, Carlson, Norris and Associates have completed an Appraisal Report for the above referenced real property. Per the request of the client, we have provided the market value of the subject on an “as is” basis. The interest appraised includes the fee simple interest of the subject property. The subject property is located at 3910 Domestic Ave, Naples, Florida 34104. The site is rectangular in configuration with 0.85 acres or 37,026 square feet of area. The subject property is improved with a warehouse/office building containing a total of 12,550 square feet net building area. The building was constructed in 2002 and is in overall average condition. The building contains 3,100 square feet of office/showroom area, while the rest of the building consists of 9,450 square feet of warehouse space that is separated into five individual units. The property is currently mostly owner occupied, with one of the warehouse units currently being rented on a month-to-month basis. A more complete description of the site and improvements will be provided in a later section of the report. Data, information, and calculations leading to the value conclusion are incorporated in the report following this letter. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. Any special assumptions and limiting considerations were especially noted in Section 7 of this report. Your attention is directed to these General Assumptions and Limiting Conditions which are part of this report. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, our interpretation of the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), and Title XI Regulations. Page 1150 of 6526 Collier County Procurement Services Division August 29, 2025 Page 2 Carlson, Norris and Associates does not authorize the out-of-context quoting from or partial reprinting of this appraisal report. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by the use of media for public communication without the prior written consent of the appraisers signing this report. Based upon the results of the investigation and analyses, the market value of the fee simple interest of the subject “As Is” under the extraordinary assumptions and market conditions existing August 4, 2025 is: FOUR MILLION FIVE HUNDRED AND FORTY THOUSAND DOLLARS ............ ($4,540,000.00.) Please refer to the attached appraisal report, plus exhibits, for documentation of the value estimates contained herein. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if Carlson, Norris and Associates can be of further service, please contact us. Respectfully submitted, CARLSON NORRIS AND ASSOCIATES Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Mitchell A. Clark State-registered trainee appraiser RI25830 Page 1151 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 1 SUBJECT PHOTOGRAPH WAREHOUSE/OFFICE BUILDING 3910 DOMESTIC AVE NAPLES, FLORIDA 34104 Page 1152 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 2 TABLE OF CONTENTS SUBJECT PHOTOGRAPH ....................................................................................... 1 SECTION 1 - SUMMARY OF SALIENT FACTS ....................................................... 3 SECTION 2 – PREMISES OF THE APPRAISAL ....................................................... 5 SCOPE OF WORK ................................................................................................................................. 5 LEGAL DESCRIPTION ........................................................................................................................... 9 SALES HISTORY................................................................................................................................... 9 EXPOSURE TIME ................................................................................................................................11 MARKETING TIME ..............................................................................................................................11 SECTION 3 – DESCRIPTION OF REAL ESTATE APPRAISED .............................. 13 COLLIER COUNTY DESCRIPTION ........................................................................................................13 MARKET AREA DESCRIPTION .............................................................................................................29 OWNER OF RECORD ..........................................................................................................................32 ASSESSED VALUE AND TAXES ...........................................................................................................33 SITE DESCRIPTION .............................................................................................................................34 IMPROVEMENTS DESCRIPTION ...........................................................................................................38 SUBJECT PROPERTY PHOTOGRAPHS .................................................................................................42 SECTION 4 – HIGHEST AND BEST USE ANALYSIS ............................................ 67 HIGHEST AND BEST USE AS THOUGH VACANT ...................................................................................67 HIGHEST AND BEST USE AS THOUGH IMPROVED ................................................................................68 SECTION 5 – VALUATION OF THE SUBJECT ..................................................... 69 VALUE ESTIMATE BY THE COST APPROACH ......................................................................................69 VALUE ESTIMATE BY THE INCOME APPROACH ..................................................................................70 VALUE ESTIMATE BY THE SALES COMPARISON APPROACH ..............................................................92 SECTION 6 – RECONCILIATION OF VALUE ...................................................... 112 SUMMARY OF VALUE CONCLUSIONS ............................................................................................... 112 SECTION 7 – CERTIFICATION AND LIMITING CONDITIONS ........................... 114 CERTIFICATION OF MICHAEL JONAS, MAI, AI-GRS, CCIM ............................................................. 114 CERTIFICATION OF MITCHELL CLARK .............................................................................................. 116 GENERAL ASSUMPTIONS & LIMITING CONDITIONS .......................................................................... 118 SECTION 8 – ADDENDA ..................................................................................... 123 LISTING FOR SALE .......................................................................................................................... 124 PROPERTY CARD ............................................................................................................................ 132 FLOOD MAP .................................................................................................................................... 133 APPRAISAER LICENSES .................................................................................................................. 134 QUALIFICATIONS OF MICHAEL JONAS, MAI, AI-GRS, CCIM .......................................................... 135 QUALIFICATIONS OF MITCHELL CLARK ........................................................................................... 137 Page 1153 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 3 Section 1 - Summary of Salient Facts Property Reference: 00282090906 Property Type: Industrial Property Address: 3910 Domestic Ave Naples, Florida 34104 Report Format: Appraisal Report Date of Report: Date of Inspection: August 29, 2025 August 4, 2025 Date of Value: Purpose of the Appraisal: August 4, 2025 The purpose of this appraisal is to estimate the market value of the fee simple interest of the subject property, as described on an “as is” basis, under the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and subject to the extraordinary assumptions noted herein. Use of the Appraisal: Intended User: The intended use of the appraisal is for internal valuation purposes by the Collier County Procurement Services Division. The intended user of this report is the Collier County Procurement Services Division Client: The client for this appraisal assignment is The Collier County Procurement Services Division. Interest Appraised: Fee simple Location: The subject property is located at 3910 Domestic Ave, Naples, Florida 34104 in Section 36, Township 49, Range 25 East. Site & Improvement Description: The site is rectangular in configuration with 0.85 acres or 37,026 square feet of area. The subject property is improved with a warehouse/office building containing a total of 12,550 square feet net building area. The building was constructed in 2002 and is in overall average condition. The building contains 3,100 square feet of office/showroom area, while the rest of the building consists of 9,450 square feet of warehouse space that is separated into five individual units. The property is currently mostly owner occupied, with one of the warehouse units currently being rented on a month-to-month basis. Land Use Designation: I – Industrial Airport Noise Area Overlay Residential Density Bands designated area Zoning Classification: I - Industrial Highest And Best Use As Vacant: Based on surrounding land uses, comprehensive land use plan classification and zoning classification the highest and best use for the subject property as vacant would be for industrial development. Page 1154 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 4 Highest And Best Use As Improved: The existing improvements provide a value greater than the value of the land as vacant plus the cost of demolition of the improvements; therefore, by definition, the existing improvements develop the site to its highest and best use. Value Indications “As Is”: Cost Approach: Not Applied Income Approach: $4,560,000 Sales Comparison Approach: $4,520,000 Market Value Estimate “As Is”: $4,540,000 Appraisal Firm: Carlson, Norris & Associates Appraiser completing report: Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Mitchell A. Clark State-registered trainee appraiser RI25830 Page 1155 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 5 Section 2 – Premises of the Appraisal Purpose of Appraisal: The purpose of this appraisal is to estimate the market value of the fee simple interest of the subject property, as described on an “as is” basis, under the reporting requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and subject to the extraordinary assumptions noted herein. Use of Appraisal: The intended use of this appraisal is for internal valuation purposes by the Collier County Procurement Services Division. Intended Users of Appraisal: The intended user of this report is the Collier County Procurement Services Division. Appraisal Client: The client for this appraisal is the Collier County Procurement Services Division. Competency of Appraisers: The appraisers' specific qualifications are included within this report. These qualifications serve as evidence of their competence for the completion of this appraisal assignment in compliance with the competency provision contained within the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation. The appraisers' knowledge and experience, combined with their professional qualifications, are commensurate with the complexity of this assignment based on the following: • Professional experience • Educational background and training • Business, professional, academic affiliations and activities The appraisers have previously provided consultation and value estimates for commercial buildings and various other types of vacant and improved industrial and commercial properties in Florida. Scope of Work: The Uniform Standards of Professional Appraisal Practice (USPAP) define the scope of work as: “the type and extent of research and analyses in an assignment”. “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.” The scope of this appraisal has been to collect, confirm, and report data. Other general market data and conditions have been considered. Consideration has been given to the property’s zoning, Page 1156 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 6 surrounding improvements and neighborhood. The work performed for this assignment included but is not limited to: • Extent to which the property was identified o We relied on the address provided by our client as well as a copy of the Collier County Property Appraiser’s record for the subject property. We also relied on the most recent warranty deed associated with the subject property recorded with Collier County Public Records for the legal description. We assume it is correct. • Extent to which the property was inspected o The appraisers gathered information about the physical characteristics of the subject site and improvements that are relevant to the valuation problem. Photographs of the subject site and improvements were taken at that time. o An inspection of the property being appraised, the multi-tenant industrial building as well as the neighborhood in which it is located was done on August 4, 2025. During the inspection, an inventory of the property attributes was collected based on visual observation. (NOTE: The term “inspection” should not be construed to be a professional engineer’s report concerning the condition of the building, structural integrity, or condition of any mechanical items. If the client has concerns of this type, a professional engineer’s inspection and report are recommended. That type of inspection is beyond the scope of work of this assignment and the professional abilities of a certified appraiser. This inspection is made only for observation of property attributes). o We viewed the subject parcel in order to gather information about the physical characteristics of the subject site and improvements that are relevant to the valuation problem. Photographs of the subject site were taken and building measurements were made at that time. • Type and extent of the data researched o Investigation of public records for the property’s zoning, land use, flood hazard area classification, property tax assessor’s records, for attributes of the property. Page 1157 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 7 o Three approaches were considered to be utilized in determining value. 1) Cost Approach – the replacement cost is used to develop a value indication for the subject property 2) Income Approach – valued on the ability of a property to generate a cash stream and 3) Sales Comparison Approach – value indication is derived by comparing sales of similar properties. o In the Cost Approach either replacement or reproduction cost is used to develop a value indication for the subject property. These costs can be estimated via a cost estimating service technique, in this case the Marshall Valuation Service, adjusted for local costs. Considering the subjective nature of estimating depreciation, the Cost Approach was not considered applicable. o Collection and analysis of rents and typical expense figures from comparative properties that would lead to the processing of the Income Approach to value. ▪ We located rental comparables similar to the subject improvements. ▪ A direct capitalization analysis was performed to estimate the value. o Investigated comparable sales of similar improved properties and made a comparative analysis which would lead to completion of the Sales Comparison Approach to value. ▪ We researched the specific market area defined for the subject for similar properties. The sales selected were considered competitive. ▪ The data was verified with the buyer or seller or their representative of the comparable as well as the public records. ▪ An analysis utilizing the estimated price per square foot of building area was performed. • Type and extent of analysis applied o The value opinions presented in this report are based upon review and analysis of the market conditions affecting real property value, the attributes of competitive properties, and sales data for similar properties. o Reconciling the value indications from the Income and Sales Comparison Approach to value into a final value opinion for the subject property; as of the effective date of this report. o Preparation of a written report. Page 1158 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 8 To develop the opinion of value, Carlson, Norris and Associates performed an appraisal as defined by the Uniform Standards of Professional Appraisal Practice (USPAP). In this appraisal, Carlson, Norris and Associates used the Income and Sales Comparison Approaches to develop reliable value indications. The Cost Approach was not used since it does not reflect current economic conditions. The search area for rental and sale comparables included the city of Naples and Collier County. Furthermore, the value conclusions reflect information about the subject and market conditions. This appraisal of the subject has been presented in the form of an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the USPAP. Property Rights Appraised: The ownership interest appraised will be fee simple. Fee Simple Interest: The fee simple interest is defined as: “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”0F0F0F 1 Market Value Definition: As defined in the Agencies’ appraisal regulations, “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 are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.” (Source: Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75, Number 237, Page 77472) 1 Unless otherwise noted, all definitions in italics are taken from The Dictionary of Real Estate Appraisal, Sixth Edition, the Appraisal Institute, Chicago, Illinois (U.S., 2020) Page 1159 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 9 Legal Description: The legal description was obtained from the most recent general warranty deed associated with the subject recorded with Collier County property appraisers’ office. The legal description is displayed below (Inst# 5746322). Sales History: The Uniform Standards of Professional Appraisal Practice requires a statement of the listings, purchase contracts and sales history of the subject property for the three years prior to the appraisal date. The subject property is currently under contract for purchase for $4,500,000, which is in line with our market conclusions. Prior to going under contract, the subject was listed for sale for $5,100,000. There have been no other transactions occurring during the past three years. Valuation History: The subject property has not been previously appraised by Carlson, Norris & Associates during the previous three years. We have not provided any other services related to the property in the last three years. Appraisal Analysis and Report Type: The Appraisal Standards Board controls the process of making an appraisal of a parcel of real estate. The Board issues rules and guidelines from which all appraisals and resulting reports are made. The process of administration of those rules and guidelines is addressed to the Real Estate Appraiser Commission of each respective state. The Appraisal Standards Board issues the rules and guidelines in the form of a document update published each year by The Appraisal Foundation. That document is entitled “The Uniform Standards of Professional Appraisal Practice” (USPAP). As of January 1, 2016, the two types of appraisal types are; Appraisal Report and Restricted Appraisal Report. The following definitions have been adopted for each type of report: • An Appraisal Report: A written report prepared under Standards Rule 2-2(a). • Restricted Appraisal Report: A written report prepared under Standards Rule 2-2(b) This appraisal is reported in an Appraisal Report format. Page 1160 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 10 Interview with market participants: The appraiser had discussions with owners, leasing agents and real estate brokers who are knowledgeable of the market area. They have indicated that there is an increase in demand for renting and buying commercial and industrial property in the Collier County market area. This has caused an increase in pricing in the last couple of years. An increase in rental rates for commercial and industrial property was also reported. Specific names and phone numbers of the individuals contacted were found by using the services of CoStar and internet search engines. For the benefit of the reader, we have listed the names, contact information on the rental and sales exhibits found later in this report. Exposure Time is defined as: “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 appraisal. Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market.” Exposure time is therefore interrelated with appraisal conclusion of value. An estimate of exposure time is not intended to be a prediction of a date of sale or a simple one-line statement. Instead, it is an integral part of the appraisal analysis and is based on one or more of the following: • statistical information about days on the market • information gathered through sales verification • Interviews of market participants. The reasonable exposure period is a function of price, time, and use. It is not an isolated estimate of time alone. Exposure time is different for various types of real estate and under various market conditions. In consideration of these factors, we may have analyzed the following: • Exposure periods of comparable sales revealed during the course of this appraisal; • Macroeconomic exposure times for the subject property type across the Subject MSA and the entire United States as published in multiple articles and websites. • Knowledgeable real estate professionals. An exposure time of twelve months or less appears to be reasonable and appropriate based on conversations with real estate professionals familiar with this market area. It has been typical of properties that have an appropriate listing price to sell in twelve months or less. The comparable sales Page 1161 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 11 utilized in the sales comparison approach have exposure times averaging ten months. This exposure time assumes the subject would have been competitively priced and aggressively promoted within the market area. Marketing Time is defined as: “An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.” The anticipated marketing time is essentially a measure of the perceived level of risk associated with the marketability, or liquidity, of the subject property. The marketing time estimate is based on the data used in estimating the reasonable exposure time, in addition to an analysis of the anticipated changes in market conditions following the date of appraisal. The future price for the subject (at the end of the marketing time) may or may not equal the appraisal estimate. The future price depends on unpredictable changes in the physical real estate, demographic and economic trends, real estate markets in general, supply/demand characteristics for the property type, and many other factors. Based on the premise that present market conditions are the best indicators of future performance, a prudent investor will forecast that, under the conditions described above, the subject is estimated to require a marketing time of twelve months or less based on conversations with real estate professionals familiar with this market area. Hypothetical Condition is defined as: “A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.” A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. We did not consider any hypothetical conditions applicable. Page 1162 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 12 Extraordinary Assumption is defined as: “An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.” An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. Please note the following extraordinary assumptions. Any discrepancy to these assumptions may affect the valuation contained herein: • A soil analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soil report, it is a specific assumption that the site has adequate soils to support the highest and best use. The analyst is not an expert in area of soils and would recommend that an expert be consulted. • It is assumed that there are no hidden or unapparent conditions to the property, soil, or subsoil, which would render them more or less valuable. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. The analyst is not an expert with respect to subsurface conditions and would recommend that an expert be consulted. It is assumed that there are no hazardous materials either at ground level or subsurface. Page 1163 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 13 Section 3 – Description of Real Estate Appraised COLLIER COUNTY AREA ANALYSIS Collier County is located in southwest Florida and was established in 1923 when it was separated from Lee County. Collier County is named for Barron Collier, a New York City advertising mogul and real estate developer who moved to southwest Florida and established himself as a prominent businessman and landowner. By the end of the 1920s, railroads and the Tamiami Trail were in-place, which opened the area to agricultural and resort development. Florida’s first commercial oil well was drilled in 1943, and the county’s pine and cypress logging industry flourished into the 1950s. The county’s economy boomed along with its population shortly after World War II. In a short span of 30 years the population increased from 6,500 to 86,000 by 1980. The economy was sustained from agribusiness, tourism and real estate. This turned the county into one of the fastest growing areas in the country. PHYSICAL FACTORS Collier County is the largest county in the state in terms of land area with 1,998 square miles which includes 821,600 acres of preserves, parks, and refuges. Along with the land area, Collier County also includes 307 square miles of water, giving Collier County a total size of 2,305 square miles. The most highly developed areas within the county are west of Interstate 75 and along the coastline of the Gulf of Mexico. Development becomes increasingly sparse when traveling east in the county. These eastern areas of the county contain a considerable amount of preserved land. There are three incorporated cities within the county; namely the City of Naples, the City of Marco Island, and Page 1164 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 14 Everglades City. The county is famous for its subtropical climate with average high temperatures ranging from 74o Fahrenheit in January to 90o Fahrenheit in August. The average annual precipitation for the county is 54 inches during the months of May through October. This area is also subject to tropical storms and hurricanes. The hurricane season runs from June through November. ECONOMIC-FINANCIAL FACTORS There are numerous economic factors that impact the supply and demand for all types of real estate and housing in any given area. These factors will be considered and discussed in the following paragraphs. Although these factors are considered individually, they do not act as independent agents in the marketplace. They interact and effect, one another. Therefore, the economic-financial factors considered, should be considered in totality, as a part of the economic framework. Population: According to the most recently published Census (July 2023), Collier County has 404,310 people living within, making Collier County Florida’s 19th most populous county. The median age in Collier County is 53.2. While the median age in Collier County is above 50, there are approximately 55,251 millennials (ages 25-39). The national average for an area this size is 80,926. Racial diversity is about average in Collier County, which equates to 152,115. The national average for an area this size is 163,672 racially diverse people. Collier County has 22,747 veterans. The national average for an area this size is 20,330. Retirement probability is high in Collier County which equates to 189,934. The national average for an area this size is 119,272 people 55 or older. Collier County population estimates reflect population projections from 1990 to 2045 and compare the three coastal counties in the southwest Florida area. The counties include Charlotte, Collier, and Lee. Collier County’s population is predicted to increase to around 517,000 by year 2045. According to the most recent Collier County’s Economic Development report, population is expected to increase by 3% between 2023 and 2028. Page 1165 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 15 Tourism: Tourism is an important industry for Naples, Marco Island, and the Everglades. According to the Tourist Development Council, Collier County is the leading employer and the primary economic engine for the region. As of 2024, the tourism industry is responsible for over 34,400 jobs in Collier County. As of March 2024, an estimated 266,200 visitors spent approximately $4.6 billion dollars, resulting in a total economic impact of approximately $6 billion dollars to Collier County. While the number of visitors declined by 2% from March 2023 numbers, direct spending and economic impact increased by 10.9% and 10.8% (respectively) from March 2023. Collier County enacts a 5% tax on all hotel, campground, and vacation rental stays of less than six months. The distribution of tourist development tax dollars is set according to Collier County ordinance. The funds are dispersed as follows; beach related projects with 42.56% of the total Tourist Tax, tourism promotion with 47.85%, and museums with 9.59%. Of the 42.56% for beach related projects, 3.58% is allocated for beach park facilities and the remaining 39.98% is used for nourishment, pass & inlet management. Of the 47.85% for tourism promotion, 33.57% is used for destination promotion and administration and the remaining 14.28% is used for amateur sports complex/debt. Lastly, of the 9.59% allocated for museums, 7.68% is used for county museum operations, and the remaining 1.91% is used for non-county museum grants. New Development: A relatively new town is developing in the eastern part of Collier County known as Ave Maria. The town is located on what was once largely agricultural land. This new town is centered around Ave Maria University, the county’s newest Catholic University. The university opened its doors in 2007, and as of 2024, it has approximately 1,270 students, and offers 66 major and minor degree programs. The school expects to continue to expand. The town of Ave Maria is designed to be compact, walk-able, and self-sustaining, reflecting the community’s rural roots while offering a full range of residential options and commercial services to its residents. The Ave Maria community totals about 6,656 acres, of which 113 acres are designated as the University Campus. The Town Core, anchored by the landmark oratory, includes retail, commercial, and residential spaces. It serves as a central link between the town and the university. Business is expanding in Collier County. In 2013, the surgical device company Arthrex opened a $47 million manufacturing plant near Ave Maria University. This brought approximately 500 construction jobs to the area and currently employs around 350 workers. Ave Maria has experienced a severe mosquito problem, resulting in the region being sprayed more than 30 times via airplane with pesticides by the Collier Mosquito Control District in 2015, making it the most sprayed area in southwest Florida. Page 1166 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 16 A new town has also been proposed in Eastern Collier County. Collier Enterprises received the Rivergrass project through the Collier County Commission on January 28th, 2020, allowing them to begin planning to develop a 1,000-acre township in Eastern Collier County. The plans were stalled as the project’s impact on approximately 700 acres of primary panther habitat is being heavily opposed by wildlife organizations such as the Conservancy of Southwest Florida, among others. However, a recent 2021 court ruling rejected the Conservancy groups’ challenge to the development of Rivergrass. Furthermore, Collier County commissioners voted to approve Collier Enterprises project plans for two additional villages and a town hub in Eastern Collier County called Longwater, Bellmar, and the Town of Big Cypress. These two additional villages along with Rivergrass will encompass over 12,000 acres with the neighboring Town of Big Cypress, most of which will be for environmental preservation. Each of the villages will be 1,000 acres, with the Town of big Cypress acting as an anchor for all three. See site plan below for reference. Employment & Income: According to Collier County’s Economic Data, from 2018 to 2023, jobs increased by 10.9% in Collier County, from 166,895 to 185,082. This change outpaced the national growth rate of 3.6% by 7.3%. As the number of jobs increased, the labor force participation rate increased from 55.7% to 56.2% between 2018 and 2023. Collier County’s unemployment rate is at 3.1 percent as of March 2024, which was slightly higher than in March 2023 (2.5%). The overall trend of unemployment has been fluctuation slightly since the spike in 2020 due to Covid-19. Historically, from Page 1167 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 17 January 2010 until March 2020, Collier County experienced downward trends with unemployment being as low as 3%. Then in April 2020, the effects of COVID-19 resulted in unemployment peaking to 13.5% from only 2.5% in February two months prior. Unemployment remained elevated in the following months. The most recent data from 2024 shows that the unemployment rate has leveled back out to around 3% and has stayed consistent. See the table below. Collier County’s largest employment concentrations continue to be in industries that are fueled by population growth. In 2019, the Retail Trade industry was the largest sector, with 23,534 industry jobs. Health Care and Social Assistance was second, and Real Estate and Rental Leasing was third. The latest report published in 2024 (data 2022) suggests that this trend has shifted. Health Care and Social Assistance are leading the industry with 23,222 jobs. Retail Trade is in second place with 22,743 jobs. The third industry is in Accommodation and Food Services, with 21,809 jobs. Interestingly, Real Estate and Rental and Leasing has been knocked down to 10th on the list. With its growing economy, Collier County has an expanding network of professionals with competitive wages. According to the Federal Reserve Economic Data’s latest numbers (published 2024, data from 2023), the median household income for 2022 in Collier County was $81,821. Additionally, According to Collier County’s Economic Development latest published report (published 2024, data from 2022), the highest paying positions are Management (with an estimated wage of $43/hour), Computer and Mathematics ($39/hour), and Healthcare Practitioner and Technical making $36/hour. The bottom wage-earning professionals include Farming, Fishing, and Forestry ($14/hour), Personal Care and Service ($15/hour), and Food Preparation and Serving Related ($15/hour). See tables below. Page 1168 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 18 Taxes: Florida is one of the few remaining states without a personal income tax. The absence of personal income taxes draws many people to Florida. Businesses enjoy additional incentive of low corporate income taxes. The Florida’s tax rate of 6% is one of the lowest in the U.S. and far below the 12% levied by some states. The largest share of households in Collier County pay $3,000+ in property taxes. Collier county’s sales tax rate continues to be 6% as of 2024. The Florida statutes provide for the annual assessment and collection of property taxes on real and personal property. Property taxes are assessed and collected at the county level as revenue for counties, municipalities, school districts and special taxing districts. The tax rate is set by the taxing authority. One mill is equal to $1 per $1,000 of property value. The total just value for all real estate property types in Collier County for 2023 was $221,906,729,456, which resulted in a 19.75% increase over the previous year. Prices: A price index is a tool that simplifies the measurement of price movements in a numerical series. Movements are measured with respect to the base period, when the index is set to 100. The Page 1169 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 19 current cost of living index in Collier County is 113 meaning that generally speaking the cost of living is more expensive in Collier County than the average cost of living throughout the United States. Specifically, Groceries are at 107.7, Housing is at 140.9, and Health is at 106.7. Below you can see the rest of the table and how it compares to the United States. Banking/Interest Rates/Financing: As of August 5, 2025, the prime rate was reported at 7.5%. Approximately one year ago the prime rate was 8.5%. The federal discount rate is most recently reported to be 4.5%; a year ago it was 5.5%. The federal funds rate is 4.5%, while a year ago it was 5.5%. Please see the table below. As of August 2024, the 30-year fixed-rate mortgage national average is currently at 6.75%, while a 15- year fixed rate mortgage is currently 5.99%. The five-year adjustable arm rate is at 6.01%. Financing both commercial and residential properties became difficult during the downturn in the economy. Financing for vacant land is the most difficult. Vacant land is currently being purchased by Page 1170 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 20 investors with cash and expectation of longer holding periods. Generally financing of improved properties requires loans of 60%-75% of commercial properties and 90%-95% financing available for residential properties. Real Estate and Housing: Collier County experienced a significant increase in residential and commercial property values from 2004 through 2006. Several news publications rated Naples as the most over-valued area of the country with respect to residential housing values. The decline in residential property values began in 2006. Inventory levels began to rise as investors and owners positioned themselves to sell at a significant profit. However, buyers were reluctant to purchase any property with a sense that the economy was headed for trouble. Many investors were not able to meet their carrying costs and properties went into foreclosure. Southwest Florida became the epicenter for residential property foreclosures with communities such as Golden Gate at the forefront of the crisis in Collier County. Residential construction projects in various stages of development were stopped as housing inventories continued to rise, and prices began to fall significantly. Southwest Florida thrived on the residential construction industry; and with no homes to build, this industry was quickly decimated. Contractors that supplied this industry typically ran their businesses from various industrial locations in Collier and Lee Counties. This type of property was the first commercial property to be adversely affected with retail and office properties following. There are 24+/- industrial parks and parks of commerce located throughout Collier County. Each park is proximate to Interstate-75 for connection to major air transportation and water ports. Collier County’s zoning allows the flexibility of properties of 19 acres or more to be zoned as Research and Technology Parks, which are based on commerce parks and offer advanced infrastructure to attract technology- based businesses. New construction building permits are an indicator of health in an economy of a given area. Below is a chart showing new construction building permits issued by month, starting July 2022 to July 2024. In the bottom of the recession in 2009, Collier County fell below 50 permits per month. In Collier County, 207 combined permits were issued in July 2024, this is a decrease of 38 permits from July 2023. New construction building permits include houses under construction and therefore reflect the current expected supply as well as the jobs in the construction industry. Page 1171 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 21 The median closed price of single-family Collier County home sales was $500,000, as of 2024, a decrease of $125,000 (20 percent) compared to 2023. The median price in Collier County reached its most recent peak in early 2023, with median home prices at $625,000. See chart below. Transportation: The infrastructure of the county continues to see improvements. Interstate 75 has been widened to six lanes from Fort Myers to Golden Gate Parkway in Naples. The County recently widened several major corridors such as Immokalee Road, Collier Boulevard, Rattlesnake Hammock Road and Goodlette-Frank Road. East Naples was not overlooked, with road widening projects along Page 1172 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 22 Collier Boulevard, Santa Barbara Boulevard and Radio Road. Major north south roads are: US 41, Interstate 75, Airport Pulling Road and Livingston Parkway. The Collier County Government has worked diligently to develop an efficient road system that will accommodate future growth; and it is likely to continue to develop the necessary road infrastructure in the years to come. Southwest Florida International Airport (RSW) in Fort Myers, Florida satisfies the passenger traffic needs for the fast-growing population of Southwest Florida. RSW is one of the fastest growing airports in the nation, servicing more than 10 million passengers a year. More than two dozen commercial airlines currently serve Southwest Florida Regional Airport with non-stop service to more than 27 domestic and two international destinations. The Southwest Florida International Airport also maintains customs clearing facilities for international cargo. RSW is located off Interstate-75 in South Lee County, an approximate 30-minute drive from most areas of Naples. In 2005 the airport was completely updated and expanded to meet the growing demand of area businesses and visitors. The $386 million ultra- modern complex includes a two-story terminal with 28 aircraft gates along three concourses, a new taxiway, and new parking options that includes a three-story parking structure. The facility will allow for incremental expansion up to 65 gates. Construction was recently completed on a direct access connection between I-75 and the airport. Total passenger activity for the Southwest Florida International Airport exceeded 1,100,000 in January 2020, before a historical decrease in traffic in April 2020, when total passengers fell to 53,379 for the month. As we have noted earlier, the COVID-19 pandemic was keeping both Floridians and non- Floridians at home. However, recent statistics show that passenger activity has generally returned to pre-COVID-19 conditions. Total passenger traffic at RSW was 10,343,802 in 2022, up 1.1 percent from the total passenger traffic in 2019. These numbers indicated that the region continues to improve from the dip in passenger activity experienced in April 2020. At the end of 2023, the airport saw 10,069,849, almost 300,000 less passengers than in 2022. This fluctuation is most likely due to impacts in tourism from Hurricane Ian. The chart below shows the overall number of passengers from 1983 through December of 2024. Page 1173 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 23 The Naples Municipal Airport is a fully certificated air carrier airport. The airport also provides FBO services for general aviation including fueling and catering. It is the home to charter airlines, aircraft maintenance facilities, a restaurant, fire/rescue services, mosquito control, car rental agencies, the Collier County Sheriff’s Aviation Unit, flight schools, the Humane Society, and over 40 additional aviation and non-aviation businesses. The airport encompasses approximately 732 acres of land, approximately two miles northeast of Old Naples with convenient access to major roads and Interstate- 75. POLITICAL-GOVERNMENTAL FACTORS The county government is headed by a Board of Commissioners. There are five commissioners, each assigned to a specific geographical area within the county. A County Manager coordinates most of the departments including county services, public services, community development/environmental services, utilities and transportation. Collier County has experienced an increase of 2% in budget between FY 2023 and FY 2024. The FY 2024 total net county budget is now $1,998,258,000. Page 1174 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 24 Education: The Collier County public school system currently contains a total of 64 schools with 50,000 students and 3,165 teachers. Collier County averages 3,200 graduates per year. The below chart shows more detail with regards to the public-school system. Collier County is home to several colleges and universities. As mentioned, Ave Maria University is a newly established Catholic University offering liberal arts-oriented baccalaureate degrees as well as some graduate degree programs. The county is also home to branch campuses of Florida Southwestern State College and Florida Gulf Coast University. Collier County has a high level of education attainment compared to other counties in Florida. According to the US Census Bureau numbers most recently published, Collier County has 38.7% of the population Age 25+ with a bachelor’s degree or higher, compared to 32.3% in Florida and 37.7% in the United States. Only 10.5% of those within Collier County have less than a high school education. SOCIOLOGICAL FACTORS Recreation: Collier County offers a vast array of natural and historical attractions. Places to visit include the 52-acre Naples Zoo, the Collier County Museum, the Big Cypress National Preserve, the Museum of the Everglades, and the Naples Botanical Gardens. In addition to these listed, there are numerous other reserves, museums, zoos, etc. that are available for tourists to visit. Healthcare: Within Collier County, there are the Naples Community Hospital, the North Collier Hospital, Regional Heart Institute, NCH Wellness Centers, and various other clinics. As the largest Page 1175 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 25 county in Florida with a total area of 2,305 square miles, these medical facilities must provide services effectively to the entire county. Access to healthcare services is a vital aspect of public health in Collier County, Florida. According to recent data from the Health Planning Council of Southwest Florida (published 2024, data 2021), approximately 87.9% of the population in Collier County possesses health insurance coverage, compared to 87.4% of Florida. Despite the majority having health insurance, there remains a significant portion of the population without coverage. Approximately 12.1% of individuals in Collier County lack health insurance, compared to 12.6% of Florida. The high percentage of insured individuals suggests a relatively robust healthcare infrastructure and accessibility in Collier County. Below is a char of mortality and leading causes of death in Lee County. County Health Rankings by the Robert Wood Johnson Foundation rank all counties in a state based on health data. Collier County was ranked 1st out of the 67 counties in Florida overall. For both Health Outcomes and Health Factors, Collier County ranked among the healthiest counties in Florida (Highest 75-100%). The data below are some of the factors tracked by County Health Rankings: Page 1176 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 26 SUMMARY Collier County, situated in southwest Florida, is a vibrant and rapidly growing region with a rich history, diverse economic landscape, and substantial real estate opportunities. As the largest county in Florida, encompassing 1,998 square miles of land and 307 square miles of water, Collier County includes extensive preserves, parks, and refuges. Its subtropical climate, characterized by mild winters and hot summers, along with significant annual precipitation, makes it an attractive destination for tourists and residents alike. The coastal areas, especially west of Interstate 75, are the most developed, while the eastern parts remain largely preserved. Economically, Collier County is robust and diversified. As of 2023, the county's population stood at 404,310, with projections suggesting continued growth. The population demographics indicate a high median age and a substantial retirement community, contributing to the county's economic stability. Tourism remains a critical industry, employing over 34,400 people and generating significant revenue. In 2024, tourism contributed approximately $6 billion to the local economy despite a slight decline in visitor numbers from the previous year. New developments in Collier County, such as the town of Ave Maria, reflect the area's ongoing growth and investment potential. Ave Maria, centered around a new Catholic university, exemplifies the county's blend of residential, commercial, and educational expansion. Additionally, the proposed Rivergrass project and other developments in Eastern Collier County indicate substantial future growth, despite environmental concerns and opposition from wildlife organizations. The employment landscape in Collier County is dynamic, with significant job growth outpacing national averages. Key industries include healthcare, retail trade, and accommodation and food services, reflecting the county's reliance on population-driven sectors. The median household income is relatively high, and the job market is supported by competitive wages across various sectors. Collier County's real estate market has experienced fluctuations, particularly during the economic downturns of the late 2000s. However, the market has since rebounded, with new construction permits indicating a healthy economy. The cost of living in Collier County is above the national average, particularly in housing, which is a critical consideration for potential investors and residents. Transportation infrastructure in Collier County is well-developed, with ongoing improvements to major roads and highways, enhancing connectivity and accessibility. The Southwest Florida International Page 1177 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 27 Airport serves as a crucial hub for the region, supporting both passenger and cargo traffic, which is essential for the county's economic vitality. Healthcare services in Collier County are comprehensive, with numerous hospitals and clinics serving the population. The county ranks highly in health outcomes and factors, indicating a robust healthcare infrastructure. Overall, Collier County presents a strong economy, strategic location, and extensive amenities. Its growth trajectory, coupled with a diverse economic base and well-maintained infrastructure, makes it an attractive destination for residents, businesses, and investors alike. We invite your attention to the location map on the following page, which shows the relative location of the subject property in Naples, Florida. Page 1178 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 28 LOCATION MAP Page 1179 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 29 MARKET AREA MAP Market Area Description: “The geographic or locational delineation of the market for a specific category of real estate, i.e., the area in which alternative, similar properties effectively compete with the subject property in the minds of probable, potential purchasers and users.” Please note the market area map on the previous page which defines the subject market area. Market Area Boundaries: Northern: Golden Gate Pkwy Western: Goodlette-Frank Road N Southern: Davis Boulevard Eastern: Livingston Road Page 1180 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 30 Life Stage: “Because market areas are perceived, organized, constructed, and used by people, each has a dynamic quality. Appraisers describe this quality as a market area’s life cycle. The complimentary land uses that make up neighborhoods and homogeneous land uses within districts typically evolve through four stages: Growth – a period during which the market area gains public favor and acceptance Stability – a period of equilibrium without marked gains or losses Decline – a period of diminishing demand Revitalization – a period of renewal, redevelopment, modernization and increasing demand” 2 It is our opinion that the subject market area is currently in the growth cycle. Recently the market has shown increased activity. Industrial and commercial vacancy has been decreasing, rental and sales activity has been increasing, and permit activity for commercial and residential construction have been increasing. Public Transportation: Public transportation is provided by Collier Area Transit Maintenance/Condition: The majority of improvements are well maintained and in good condition. Property Compatibility: There is an established retail, commercial, retail and office area along Airport Pulling Road, Immokalee Road, Pine Ridge Road, Vanderbilt Beach Road, Golden Gate Parkway and Tamiami Trail (US-41). Due to the high traffic counts in the area, retail uses include shopping centers, restaurants, and various other single-tenant retailers. Supporting residential abounds along secondary roadways and land uses are primarily single-family residential or multifamily. Appeal/Appearance: This area has generally good appeal. Appearance ranges from mostly newer construction and some older structures with generally good to average appearance. Development Trend: There is residential and commercial zoned vacant land available in the market area. Most exists is to the east portion of the market area (east of Interstate Highway 75). Future commercial development will be seen mainly along US- 41, Airport-Pulling Road, Vanderbilt Beach Road, Davis Road, Immokalee Road and Collier Boulevard. Supporting residential development is located throughout the market area. Neighborhood Access: Good access exists from major north-south corridors including Airport Pulling Road, US-41 (Tamiami Trail), Goodlette Frank Road, Collier Boulevard and I-75. East-west corridors include Immokalee Road, Vanderbilt Beach Road, Pine Ridge Road and Golden Gate Pkwy. Police/ Fire Department: Collier County Supply of Vacant Tracts Vacant land is available in the market area. 2 The Appraisal of Real Estate, Twelfth Edition Page 1181 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 31 Demand for Vacant Tracts: The supply appears to be greater than the demand at this time. However, the trend is more balanced with demand increasing. Traffic Volume: Airport Pulling Road: 45,000 AADT Goodlette Frank Rd: 35,000 AADT Golden Gate Pkwy: 49,500 AADT Livingston Road: 40,500 AADT Conclusion: Reports and real estate professionals alike suggest an upward trending of the real estate market is occurring. There are many positive signs that suggest we are headed in the right direction. Vacant land is showing increasing demand with many parcels selling for potential development. Vacant residential land has shown good demand from developers. Presently, commercial and industrial market values and rental rates are increasing as vacancy rates decrease. Market Summary: Trends in the local and immediate areas, adjacent uses and the property’s specific location features indicate an overall positive external influence for the subject, which is concluded to have an above-average position relative to competing properties. The property is located in an area that is projected to experience significant growth across all analysis areas. It offers proximity to major thoroughfares and provides convenient access to all points of Southwest Florida. Commercial developments are located along the major thoroughfares and there are sufficient supporting uses for the area creating ongoing demand. Overall, the condition and appeal of the area is good. At present, the area is in the growth stage of its lifecycle as th ese areas of Naples are seeing significant interest from residents and investors due to the convenient location and relative affordability. Naples Industrial Market Summary – Costar Q2-2025: The Naples' industrial market is one of the smallest on the West Coast of Florida, with roughly 14.5 million SF. The industrial vacancy rate is low here but has risen over the past year. Naples has one of the lowest industrial vacancy rates in Florida at just 3.9% as of the third quarter of 2025. However, the Naples market has been mostly stagnant over the past year, with minimal leasing activity and absorption. Outside of Uline's completion and move-in to its 940,000 facility, not much has happened in the Naples industrial market over the past three years. Like many areas in Florida, it saw a pop in activity in 2021 as in-migration fueled housing and, in turn, industrial demand. New construction is extremely limited in Naples. It's been well over a year since a new project was delivered, and less than 25,000 SF is under construction. The most prominent building under Page 1182 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 32 development is just 17,400 SF along Tollhouse Drive. It is predominately small-bay availabilities ranging from 2,500 to 3,500 SF with an asking rate of $24.00/SF. Naples is one of the most expensive industrial markets in Florida, with an average asking rent of $18.20/SF. Limited availability in the market, only 690,000 SF, has emboldened landlords to continue to push rates here up 3.4% from this time last year. Rent growth has cooled here, much like other parts of the country, and is down from a peak of more than 10% in mid-2022. However, Naples should continue to outpace the national average through at least the end of 2025. Owner of Record: According to the Collier County Property Appraiser’s office the owner of record for the subject properties is: AMBROSI 3 LLC 3910 DOMESTIC AVENUE NAPLES FL 34104 Page 1183 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 33 Assessed Value and Taxes: According to the Collier County Tax Collector’s Office the subject property is identified by its Parcel Number 00282090906. For the tax year of 2024 the subject property has a taxable value of $1,840,345 at a millage rate of 10.1725 resulting in an annual tax burden of $18,721 (including non-Ad Valorem taxes). Please note the 2022 through 2024 years tax analysis in tabular form that follows. We also present an estimated real estate tax based on our appraised value. Based on our final opinion of value stated herein, the subject tax liability is likely to increase. We have applied a 30% cost of sale to the appraised value resulting in an estimated assessed value of $3,178,000. Applying the 2024 millage rate of 10.1725 results in estimated future RE Tax liability of $32,000 rounded (including non- ad valorem taxes). The following table is presented to estimate the subject’s current RE taxes based on the appraised value. The revised tax liability will be utilized in the upcoming Direct Capitalization analysis. Only the Collier County Property Appraiser’s office can assess property for taxation purposes. The actual tax liability is calculated utilizing the millage rate as set by the Collier County Commission and then multiplying this by the assessed value of the property. Should the millage rate or the assessed value change the tax liability would be different from that as reported herein. Page 1184 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 34 Site Description: Please note the following information which includes an aerial photograph, general site information and data, and the physical characteristics and economic factors that affect the site. AERIAL PHOTOGRAPH Page 1185 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 35 PLAT MAP General Site Information Address: Parcel #00282090906 Location: The subject property is located at 3910 Domestic Ave, Naples, Florida 34104 in Section 36, Township 49, Range 25 East 3B3B3BPhysical Characteristics of the Site Site Configuration: Rectangular Frontage: Subject property has approximately 117 linear frontage feet along Domestic Ave. Site Area: 0.85 acres or 37,026 square feet of area. Public Access: Overall, the subject site has average accessibility. Corner Influence: No Utilities to Site: Water/Sewer: Collier County Page 1186 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 36 Electric: Florida Power and Light Phone: Multiple carriers Police: Collier County Sheriff Dept. Fire: Collier County Fire District Site Improvements: The subject property is improved with a warehouse/office building containing a total of 12,550 square feet net building area. The building was constructed in 2002 and includes 3,100 sf of office/showroom space and 9,450 sf of warehouse space divided into five separate units in overall average condition. The building consists of CBS construction. Easements: Typical utility and right-of-way easements exist. Flood Designation: Topography: Flood Zone X Panel 120067-12021C0392J, dated 2/8/2024. A copy of the flood map is included in the addenda. The site appears to be relatively level and with adequate drainage. 4B4B4BEconomic Factors Affecting the Site Supply of Vacant Tracts: There are industrial vacant land parcels in the subject’s immediate market area. Demand for Vacant Tracts: Real estate brokers have indicated that there is improved interest in vacant parcels. Rental rates have recently been climbing which should increase demand in the future. Neighboring Property Uses: Industrial and Commercial Future Land Use Designation: Industrial District designated areas will accommodate the following uses: I - Industrial District The Industrial Land Use District is reserved primarily for industrial type uses and comprises approximately 2,200 acres. Besides basic Industrial uses, limited commercial uses are permitted. Retail commercial uses are prohibited, except as accessory to Industrial or Business Park uses. The C-5, C-4 and PUD Commercial Zoning Districts along the perimeter of the designated Urban Industrial District that existed as of October 1997 shall be deemed consistent with this Land Use District. Industrially designated areas shall have access to a road classified as an arterial or collector in the Transportation Element, or access may be provided via a local road that does not service a predominately residential area. Intensities of use shall be those related to: manufacturing, processing, storage and warehousing, wholesaling, distribution, high technology, laboratories, assembly, computer and data processing, business services, other basic industrial uses as described in the industrial zoning district of the land development code, business park uses as discussed below and as described in the business park zoning district of the land development code. Support commercial uses, such as child care centers and restaurants. Page 1187 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 37 The subject property is also designated as being within a “residential density band” area. Residential density bands are part of the density bonuses as applied by the density rating system, described in the Future Land Use Element as follows: Additionally, the northwest corner of the subject property is located within the Airport Noise Area Overlay (D), which is described in the Collier County Future Land Use Element as follows: Page 1188 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 38 Industrial Zoning Districts Industrial District (I). The purpose and intent of the industrial district (I) is to provide lands for manufacturing, processing, storage and warehousing, wholesaling, and distribution. Service and commercial activities that are related to manufacturing, processing, storage and warehousing, wholesaling, and distribution activities, as well as commercial uses relating to automotive repair and heavy equipment sales and repair are also permissible in the I district. The I district corresponds to and implements the industrial land use designation on the future land use map of the Collier County GMP. The following uses include, but not limited to: Agricultural services, Automotive repair, barber shops, business service, communication towers, eating places, engineering, account, research, management and related services, essential services, fabricating metal products, food products, general aviation airport, lumber yards, insurance agents, heavy construction, outdoor storage yards, printing facilities, gunsmith shops and shooting range-indoor, real estate brokers, stone, clay glass and concrete products, outdoor storage yards, post offices, and existing retail uses that were in operation on January 1, 2009, and industrial uses that have been in operation since January 8, 2010. Improvements Description: The information on the subject improvements is based upon a physical inspection and upon records from the Collier County Property Appraiser’s office. The subject property consists of a multi-tenant industrial building. There is average visibility and access along Domestic Avenue. The salient construction specifics are summarized as follows: General Description General Property Type: Industrial Specific Property Type: Warehouse/Office Number of Buildings: 1 Years Built: 2002 Number of Stories: 2 Net Building Area: 12,550 square feet Design and Functionality: Design appears to function well for a warehouse/office building. The subject property is improved with a warehouse/office building containing a total of 12,550 square feet net building area. The building was constructed in 2002 and is in overall average condition. The building contains 3,100 square feet of office/showroom area, while the rest of the building consists of 9,450 square feet of warehouse space that is separated into five individual units. The property is currently mostly owner occupied, with one of the warehouse units currently being rented on a month-to-month basis. Construction Class: CBS Page 1189 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 39 Construction Quality: Average workmanship and materials Ceiling Height: 20’ Clear Height Grade-Level Doors: 5 overhead doors (12’x14’) Exterior Construction Detail Footings: Spread concrete on a concrete slab Exterior Wall Material: Concrete block stucco Roof Construction: Metal Roof Windows: Metal framed with glass Exterior Doors: Two store-front glass entrance doors and six exterior metal doors. Each of the five individual warehouse units contains one overhead roll-up door. There is also an employee bathroom that is accessed through an exterior metal door. Mechanical Description Heating/Cooling System: The office/showroom space is entirely under air conditioning. Three of the individual warehouse units are climate controlled (Forced air HVAC systems). Two of the warehouse units are not under air conditioning. Elevator Service: None Fire Protection: None Interior Description Ceilings Drywall ceiling in office/showroom areas. Drywall ceiling in one of the climate controlled warehouse areas. Open/exposed ceilings with insulation in two of the climate controlled warehouse areas. Open/exposed ceilings in the two warehouse units that are not under air conditioning. Lighting LED and Fluorescent lighting throughout the office and warehouse areas Partitions and Interior Walls: Painted drywall and concrete block walls separating the warehouse units. Floor Covering: Concrete flooring in warehouse; interior office areas contain tile, carpeting, and vinyl plank flooring. Restrooms: 3 bathrooms in the office/showroom area 1 bathroom in one of the warehouse units 1 restroom accessible by exterior metal door Interior Doors: Wood –office areas Site Improvements Parking: Parking appears adequate Onsite Landscaping: Consistent with similar industrial projects in the market Page 1190 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 40 Signage: Building signage Land to Building Ratio: 2.95:1 Physical Condition Year Built: 2002 Effective Age: 15 years Expected Useful Life: 50 years Remaining Useful Life: 35 years Condition: Average Past Maintenance: No deferred maintenance noted Deferred Maintenance: None applicable Overall Rating of Improvements: Average Functional Utility: No adverse functional utility noted External Influences: No adverse external influences were noted Page 1191 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 41 Building Sketch Page 1192 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 42 SUBJECT PHOTOGRAPHS View: Looking west along Domestic Ave Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking east along Domestic Ave Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1193 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 43 SUBJECT PHOTOGRAPHS View: Looking south toward subject property Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking north along driveway entrance to subject property Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1194 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 44 SUBJECT PHOTOGRAPHS View: Parking area at front of subject Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Parking area at front of subject Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1195 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 45 SUBJECT PHOTOGRAPHS View: Looking toward front of subject building Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking SW along east side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1196 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 46 SUBJECT PHOTOGRAPHS View: Utility meters at east side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Air conditioner units at east side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1197 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 47 SUBJECT PHOTOGRAPHS View: Looking north along east side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking west along south side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1198 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 48 SUBJECT PHOTOGRAPHS View: Looking east toward SW corner of building Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking south toward property line near rear of building Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1199 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 53 SUBJECT PHOTOGRAPHS View: Looking north along west side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Looking SE along west side of building Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1200 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 54 SUBJECT PHOTOGRAPHS View: Unit 1 showroom/retail area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 showroom/retail area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1201 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 55 SUBJECT PHOTOGRAPHS View: Unit 1 bathroom Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 bathroom Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1202 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 56 SUBJECT PHOTOGRAPHS View: Unit 1 showroom/retail area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 showroom/retail area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1203 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 57 SUBJECT PHOTOGRAPHS View: Unit 1 showroom/retail area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 stairway to 2nd floor office area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1204 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 58 SUBJECT PHOTOGRAPHS View: Unit 1 second floor office area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 second floor office area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1205 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 59 SUBJECT PHOTOGRAPHS View: Unit 1 second floor office area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 second floor bathroom Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1206 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 60 SUBJECT PHOTOGRAPHS View: Unit 1 second floor bathroom Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 stairway to 2nd floor office area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1207 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 61 SUBJECT PHOTOGRAPHS View: Unit 1 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1208 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 62 SUBJECT PHOTOGRAPHS View: Unit 1 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 1 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1209 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 63 SUBJECT PHOTOGRAPHS View: Unit 2 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 2 warehouse bathroom Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1210 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 64 SUBJECT PHOTOGRAPHS View: Employee bathroom, exterior door access Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 3 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1211 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 65 SUBJECT PHOTOGRAPHS View: Unit 3 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 4 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1212 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 66 SUBJECT PHOTOGRAPHS View: Unit 4 warehouse area Photograph date: August 4, 2025 Taken by: Mitchell Clark View: Unit 5 exterior view (unable to access) Photograph date: August 4, 2025 Taken by: Mitchell Clark Page 1213 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 67 Section 4 – Highest and Best Use Analysis The principal of highest and best use is defined as: “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.” The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability. • Permissible Use (Legal) - what uses are permitted by zoning and deed restrictions on the site in question? • Possible Use- to what uses is it physically possible to put the site in question? • Feasible Use-, which possible and permissible uses will produce any net return to the owner of the site? • Highest and best Use- among the feasible uses, which use will produce the highest net return or the highest present worth? HIGHEST AND BEST USE AS THOUGH VACANT Legally Permissible Use: Factors that impact the legally permissible uses for the subject property include such things as the comprehensive land use plan classification, zoning classification, deed restrictions and government regulations. No specific deed restrictions are known relating to the property. The land use designation affecting the site is Industrial and the site is currently zoned I - Industrial. The land use classification and zoning classification permit commercial or industrial development. Based on the land use and zoning classification affecting the property and the characteristics of the neighborhood, it would appear the subject site would typically be considered for commercial/industrial development. Physically Possible Use: The physical aspects of the site impact legally permissible uses. The site area is irregular in configuration, containing 0.85 acres or 37,026 square feet of area. Public utilities are provided. The current access is from Domestic Ave. There is approximately 117 linear frontage feet along Domestic Ave. The site is of such a size that they could adequately handle most of the development noted previously which is legally permissible. The physical characteristics of this property will allow for industrial development which could include warehouse and office/showroom use on the site. In consideration of the site size, it would most likely be developed with some form of commercial/industrial development. Page 1214 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 68 Economically and Financially Feasible Uses: Typically, the highest and best use analysis is a process to eliminate potential uses. In other words, once the uses that are legally permissible have been determined, consideration of uses which are physically possible will tend to reduce the legally permissible uses or reinforce them. Likewise, consideration of the economical and financial aspects of a given property will tend to further refine the uses which have been previously described as legally permissible and physically possible. The improving economic conditions in Collier County have been taking place over the last several years. Property values are increasing and rental rates are increasing. Rental rates and sales prices have reached the point to where it would typically be financially feasible for development of the site with a new industrial structure. This makes the property attractive for this use in the marketplace. The subject site is located in an area with extensive industrial and commercial development. This area of Southwest Florida has good market appeal and an expanding economic base. The physical characteristics of this property will allow for commercial/industrial development which could include multi-unit industrial building use on the site. Maximally Productive Use: At this point in the highest and best use analysis, the analyst has considered which uses are reasonably considered to be legal, physically possible as well as economically and financially supported. The zoning and land use allow for a wide range of industrial uses include multi-tenant industrial buildings. The site is large enough for a reasonably sized industrial development consistent with the surrounding developments and current zoning restrictions. Considering the nearby commercial and industrial development, it is our opinion that commercial/industrial use has the most development potential given the location of the property. HIGHEST AND BEST USE AS THOUGH IMPROVED The subject site is currently improved with a warehouse/office building totaling 12,550 square feet. Based on analysis the income producing capability to the property as well as the value of the property through the Sales Comparison Approach, the improvements provide a value greater than the value of the site as if vacant and available to be developed to its highest and best use. Therefore, by definition the existing improvements develop the site to its highest and best use. Page 1215 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 69 Section 5 – Valuation of the Subject VALUE ESTIMATE BY THE COST APPROACH Cost Approach is defined as: “A set of procedures through which a value indication is derived for the fee simple estate by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive or profit; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property interest being appraised.” The Cost Approach is based upon the principle of substitution, which states that a prudent purchaser would not pay more for a property than the amount required to purchase a similar site and construct a similar improvement without undue delay and produce a property of equal desirability and utility. The Cost Approach is based upon the principle of substitution, which states that a prudent purchaser would not pay more for a property than the amount required to purchase a similar site and construct similar improvements without undue delay, producing property of equal desirability and utility. Considering the older vintage of the improvements and the subject nature of estimating depreciation, the Cost Approach is not considered applicable in this analysis. Page 1216 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 70 VALUE ESTIMATE BY THE INCOME APPROACH Income Approach is defined as “Specific appraisal techniques applied to develop a value indication for a property based on its earning capability and calculated by the capitalization of property income.” This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.” The Income Approach is widely applied in appraising income-producing properties. Anticipated future income and/or reversions are discounted to a present worth figure through the capitalization process. In the course of the analysis of the subject property the income stream for the improvements will be analyzed using the Direct Capitalization Technique. This is defined as “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. Direct capitalization employs capitalization rates and multipliers extracted or developed from market data. Only the one year's income is used. Yield and value change are implied, but not explicitly identified.” The steps of the Income Approach using direct capitalization are summarized as follows: Estimate the Potential Gross Income 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. • The result is the Effective Gross Income. • Subtract from the Effective Gross Income., operating expenses, fixed expenses and reserves for the replacement of short-lived items (if market specified). • The result is the Net Operating Income. • Develop a direct capitalization rate by dividing the known Net Operating Expenses of properties that have sold that are comparable to the subject property by the selling Page 1217 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 71 price of the comparable sale. Reconcile them into one rate appropriate for the subject property. • Divide the Net Operating Income of the property being appraised by the appropriate capitalization rate which gives an indicated value of the property via the Income Approach. Based on the complexity of the assignment, it is our opinion that the utilization of the Direct Capitalization Technique is most appropriate. One of the basic steps in the Income Approach involves estimating the market rent for the subject property. Market rent is defined as: “The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including term, rental adjustment and revaluation, permitted uses, use restrictions, and expense obligations; the lessee and lessor each acting prudently and knowledgeably, and assuming consummation of a lease contract as of a specified date and the passing of the leasehold from lessor to lessee under conditions whereby: 1. Lessee and lessor are typically motivated. 2. Both parties are well informed or well advised, and acting in what they consider their best interests. 3. A reasonable time is allowed for exposure in the open market. 4. The rent payment is made in terms of cash in United States dollars and is expressed as an amount per time period consistent with the payment schedule of the lease contract. 5. The rental amount represents the normal consideration for the property leased unaffected by special fees or concessions granted by anyone associated with the transaction. “ Market Rent is defined as: “The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the specified lease agreement including rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, terms, concessions, renewal and purchase options and tenant improvements (TIs).” Gross Lease: A gross lease is defined as: “A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses.” Page 1218 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 72 Net Lease: A net lease is defined as: “A lease in which the landlord passes on all expenses to the tenant.” Typically, local tenants and chains are subject to either gross or some type of net lease. In these circumstances the landlord will actually pay such items as the property taxes and insurance costs and either get reimbursed from the tenant through the rental rate alone (gross lease) or a common area maintenance charge “CAM” (net lease). When the appraiser analyzes these types of leases all of the appropriate expenses that are paid for by the landlord must be itemized and included as expenses in the reconstructed operating statement. The offsetting income is included in either the gross lease rate or the common area maintenance charge. In this case the appraiser will use a net lease basis when referring to rental rates since most of the comparable properties in the market area are reported as net rents. A search of the marketplace was made for similar buildings resulting in rental comparable properties. Please note the Rent Comparable Location Map that follows which shows the relative location of the rent comparables to that of the subject. Because the subject property is an industrial warehouse/office building, similar rental properties were obtained. Page 1219 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 73 RENT COMPARABLE LOCATION MAP Please consider the comparable Rental Data Sheets on the following pages that present pertinent information for the rent comparables that were analyzed. Page 1220 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 74 RENT COMPARABLE 1 Property Location: Address: 3811 Enterprise Ave, Unit 3 Naples, FL 34104 County: Collier Owner: 3811 Enterprise Avenue LLC Property Name: N/A Property Data: Property Use: Industrial Building Type: Warehouse Site Size: 1.46 acres Parking: Adequate Corner Influence: No Access: Average Visibility: Average Year Built: 2001 Number of Buildings: 1 Number of Stories: 1 Type of Construction: CBS Page 1221 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 75 Gross Area: 22,000 sq. ft. Rentable Area 1,493 sq. ft. Condition of Improvements: Average Unit Breakdown: 1,493 sq. ft. Lease Data: Lease Type: NNN Asking: Actual Beginning Date: Commenced May 2025 Lease Term: 5 Years Gross Rate: $27.60 per sq. ft. CAM: $4.60 per sq. ft. Net Rate: $23.00 per sq. ft. Occupancy: 100% Lease Concessions: None Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: Shawn McManus - Leasing Agent, 239-834-2485 Verification Appraiser: Mitchell Clark, August 13, 2025 Comments: This is the asking lease rate for a 1,493 SF warehouse space located along Enterprise Ave in Naples. The unit is part of a larger 22,000 SF industrial building. The lease commenced in May of 2025 for a 5 year term at a base rate of $23.00 PSF and CAM fees of $4.60 PSF. The unit features 16 foot warehouse ceiling height. The unit is fully air conditioned and has one 10’ x 12’ roll-up door. Page 1222 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 76 RENT COMPARABLE 2 Property Location: Address: 4085 Arnold Ave, Unit 101 Naples, FL 34104 County: Collier Owner: ARNOLD PROPERTIES INC Property Name: N/A Property Data: Property Use: Industrial Building Type: Warehouse/Office Site Size: 1.78 acres Parking: 32 Corner Influence: No Access: Average Visibility: Average Year Built: 1997 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal Page 1223 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 77 Gross Area: 20,500 sq. ft. Rentable Area 6,500 sq. ft. Condition of Improvements: Average Unit Breakdown: 6,500 sq. ft. Lease Data: Lease Type: Net Asking/Actual: Actual Beginning Date: Began April 2025 Lease Term: 5 years Gross Rate: $26.50 per sq. ft. CAM: est. $4.50 per sq. ft. Net Rate: $22.00 per sq. ft. Occupancy: 100% Lease Concessions: None Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: CoStar Listing, Public Record Verification Appraiser: Mitchell Clark, August 13, 2025 Comments: This is an actual rent for industrial office/warehouse space with frontage along Arnold Ave in Naples. The unit is part of a 20,500 sf industrial building. The ceiling height is 21’. The lease is triple-net (NNN) with 5-year term at base rate of $22.00 and estimated CAM fees of $4.50. Page 1224 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 78 RENT COMPARABLE 3 Property Location: Address: 3899 Mannix Drive, Unit 407 Naples, FL 34114 County: Collier Owner: LAME REVOCABLE TRUST Property Name: N/A Property Data: Property Use: Industrial Building Type: Warehouse/Office Site Size: Part of a larger development Parking: Adequate parking Corner Influence: No Access: Average Visibility: Average Year Built: 2005 Number of Buildings: 1 Number of Stories: 1 Type of Construction: CBS Page 1225 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 79 Gross Area: 45,000 sq. ft. Rentable Area 1,500 sq. ft. Condition of Improvements: Average Unit Breakdown: 1,500 sq. ft. Lease Data: Lease Type: Net Asking/Actual: Actual Beginning Date: Began December 2024 Lease Term: 2 years Gross Rate: CAM: Net Rate: $29.30 per sq. ft. est. $4.50 per sq. ft. $24.80 per sq. ft. Occupancy: 100% Lease Concessions: None Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: Danielle Rizzo - Leasing rep, 201-741-7801 Verification Appraiser: Mitchell Clark, August 28, 2025 Comments: This is an actual rent for industrial office/warehouse space with frontage along Arnold Ave in Naples. The unit is part of a larger industrial/flex development. The space includes office area of 20% and 1 overhead roll-up door. The ceiling height is 18’. The lease is triple-net (NNN) with 2-year term at base rate of $24.80 and estimated CAM fees of $4.50 per sf. This was an arm’s length transaction. Page 1226 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 80 RENT COMPARABLE 4 Property Location: Address: 5450 Shirley Street Naples, FL 34109 County: Collier Owner: JERICHO DRIVE, LLC Property Name: N/A Property Data: Property Use: Industrial Building Type: Office/Warehouse Site Size: 1.130 acres Parking: 20 Corner Influence: No Access: Average Visibility: Average Year Built: 1980 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal/CBS CNA Data# 2868 Page 1227 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 81 Gross Area: 21,300 sq. ft. Rentable Area 2,100 sq. ft. Condition of Improvements: Average Lease Data: Lease Type: Actual Asking/Actual: Net Beginning Date: Began June 2024 Lease Term: 3 years Gross Rate: $29.50 per sq. ft CAM: est. $4.50 per sq. ft Net Rate: $25.00 per sq. ft. Occupancy: 97% in market Lease Concessions: N/A Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: Christine McManus, 239-261-3400 Verification Appraiser: Richard Tyler, June 12, 2024 Comments: This is an actual rate for a office/warehouse space located in a multi-tenant industrial building along Shirley Street, in Naples. Unit A with 2,100 SF rentable area and in average condition. The unit has a small office area and is fully air-conditioned. Lease term is 3- years with renewal options. CAM is estimated at $4.00. CNA Data# 2868 Page 1228 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 82 RENT COMPARABLE 5 Property Location: Address: 3927 Exchange Avenue Naples, FL 34104 County: Collier Owner: Exchange Avenue LLC Property Data: Property Use: Industrial Building Type: Warehouse/Office Site Size: 0.870 acres Parking: Appears Adequate Corner Influence: No Access: Average Visibility: Average Year Built: 1989 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal Frame CNA Data# 2790 Page 1229 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 83 Gross Area: 7,200 sq. ft. Rentable Area 7,200 sq. ft. Condition of Improvements: Average Unit Breakdown: 7,200 sq. ft. Lease Data: Lease Type: NNN Asking/Actual: Actual Beginning Date: January 2024 Lease Term: N/A Gross Rate: $26.79 per sq. ft. CAM: $3.46 per sq. ft. Net Rate: $23.33 per sq. ft. Occupancy: 100% Lease Concessions: None Noted. Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: Christine McManus- Leasing Rep, 239-777-2020 Verification Appraiser: Mitchell Clark, January 25, 2024 Comments: This is an actual lease of an office/warehouse building located along Exchange Avenue in Naples. The current tenant is a roofing company. The unit has approximately 1,200 square feet of office space and 6,000 square feet of warehouse area and is in average condition. There are a total of 4 overhead door drive-in bays at the building. There is adequate parking around the building with 22 open surface spaces. The lease commenced in January 2024 at the rate of $26.79. CNA Data# 2790 Page 1230 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 84 RENT COMPARABLE 6 Property Location: Address: 4573 Enterprise Ave, Unit 4 Naples, FL 34104 County: Collier Owner: Connie Jean Youngmark Trust Property Name: N/A Property Data: Property Use: Industrial Building Type: Office/Warehouse Site Size: 1.08 acres Parking: 28 Corner Influence: No Access: Average Visibility: Average Year Built: 1988 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal/CBS Page 1231 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 85 Gross Area: 14,000 sq. ft. Rentable Area 2,000 sq. ft. Condition of Improvements: Average Lease Data: Lease Type: Net Asking/Actual: Asking Gross Rate: $28.52 per sq. ft. CAM: $3.52 per sq. ft. Net Rate: $25.00 per sq. ft. Occupancy: 96% in market Lease Concessions: N/A Utilities Paid By Landlord: None Utilities Paid By Tenant: All Lease Confirmation: Verification: Bill Young, Leasing Rep – 239-402-3848 Verification Appraiser: Mitchell Clark, August 15, 2025 Comments: This is an actual rate for a office/warehouse space located in an industrial building along Enterprise Ave, in Naples. Unit 4 with 2,000 SF rentable area and in average condition. The unit contains approximately 10% of office area, and about 60% of the unit is under AC. There are 4 overhead roll-up doors. The ceiling height of the unit is 20’. The unit was described as being in average condition. Page 1232 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 86 A rental summary of the rent comparable lease rates is illustrated as follows. Rent Summary: The comparables represent actual rental rates in the subject’s surrounding market and within nearby markets. The base rental rates range between a low of $22.00 per square foot to $25.00 per square foot. In determining a reasonable market rent for the subject unit, we have considered an applicable base rental rate of $24.50 per square foot to be the net rate for the subject unit based on the location, quality of the unit, and the effective age/condition. Based on the total actual and estimated expenses as detailed within the expenses section of the Income Approach, we have determined an applicable CAM charge of $4.69 per square foot which is in line with the market. The estimated gross rent for the subject property totals $29.19 per square foot, which is consistent with the market rental rates of the comparables. As previously noted, the subject property is currently mostly owner occupied. Unit 5 is being rented out on a month-to-month basis, with the tenant using it as primarily storage space. Due to these factors, we will utilize the market derived rent in the following Direct Capitalization. In order to estimate the value for the subject property via the Income Approach, the Direct Capitalization technique was applied. The steps of this technique are summarized as follows: • Estimate the Potential Gross Income 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 • The result is the Effective Gross Income • Subtract from the Effective Gross Income, operating expenses, fixed expenses and reserves for the replacement of short-lived items (if market specified) Page 1233 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 87 • The result is the Net Operating Income • Develop a direct capitalization rate by dividing the known Net Operating Expenses of properties that have sold that are comparable to the subject property by the selling price of the comparable sale. Reconcile them into one rate appropriate for the subject property. • Divide the Net Operating Income of the property being appraised by the appropriate capitalization rate which gives an indicated value of the property via the Income Approach. Income Analysis We will first establish the income earning potential for the subject improvements. The income analysis for the subject property will utilize the net estimated market rental rate of $24.50 per square foot with CAM charges of $4.69 per square foot. No additional income is to be considered. Multiplying the total rental rate of $29.19 per square foot by the subject’s net building area of 12,550 square feet equates to a total potential gross income (PGI) of $366,335. The effective gross income is estimated next. This is done by subtracting the vacancy and collection loss from the potential gross income. Vacancy and collection loss is defined as: “A deduction from gross potential income (PGI) made to reflect income reductions due to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss.” Vacancy and collection loss is estimated using market derived data and local surveys for specific occupancies within specific market areas such as: • Market derived data • Published surveys • Personal observation We utilized an analysis of industrial properties within the general market of the subject. According to CoStar data for the Naples Industrial market area, the current vacancy averages 3.9%. The following graph illustrates the trend in vacancy rates in the subject’s submarket over the last six years as well as a forecasted trend for the future. Page 1234 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 88 We considered an applicable vacancy and collection loss rate of 3% appropriate for the subject. We took into account the current and historical occupancy of the subject, location, quality, and the overall trend in vacancies for commercial/industrial properties. The vacancy and collection rate, 3%, is multiplied times the gross potential income of $366,084 to obtain the annual vacancy and collection loss of $10,990. As mentioned, once the vacancy and collection loss has been determined, that value is subtracted from the potential gross income (PGI) to arrive at the effective gross income (EGI) of $355,345. Expense Analysis Historical financial information on the subject property was provided to the appraiser. We have also utilized estimations for fixed and variable expenses based on information from our files of similar properties as well as publicly available expenses. The net operating income is calculated by subtracting the operating expenses from the effective gross income. The fixed expenses include the previously estimated future tax liability of $32,000. Insurance expenses were provided at $6,000 annually. The total for the fixed expense category is $38,000. Management fees were estimated at 3% of the effective gross income, or $10,700 annually. Maintenance/landscaping costs were estimated at $0.65 per square foot, or $8,200 annually. Reserves for replacement were estimated at $0.15 per square foot, or $1,900 annually. The variable operating expenses total $20,800. Page 1235 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 89 The resulting total operating expense is $58,800 or approximately 17% of the effective gross income. The estimated expenses are within the normal range for similar type warehouse properties. The net operating income (NOI) is equal to the effective gross income of $355,345 less operating expenses of $58,800, which equals $296,545. The property value is estimated by dividing the net operating income by the overall capitalization rate. We will next estimate the Overall Capitalization Rate by utilizing two methods: 1) Published Sources and 2) Market derived from the improved sales noted later in this report. 1) Published Sources According to the Costar custom analytics search, cap rates for industrial properties in the Naples market average about 7.5%, as displayed by the following chart. 2) Sales Comparable Market Derived: The net operating income for these sales divided into the sales price equals the estimated overall capitalization rate for that sale. Please note the following spreadsheet which presents the data and analysis for the market derived capitalization rate. Page 1236 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 90 The rates vary from 4.70% to 7.18% with mean and median rates of 5.95% and 5.85%, respectively. We have also considered the Active Listing’s provided cap rate of 6.21% in our analysis. Based on the subject’s effective age/condition, quality, and location, it is our opinion that a market derived capitalization rate for the subject property is closer to that of the closed sales with support for the published sources, this being a rate of 6.50%. By dividing the net operating income of $296,545 by the overall capitalization rate of 6.50% we arrive at the estimated value via the Income Approach of $4,562,223 rounded to $4,560,000. We invite your attention to the following chart which shows in tabular form the information presented in the preceding analysis relating to the value of the property by the Direct Capitalization Technique. Page 1237 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 91 Page 1238 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 92 VALUE ESTIMATE BY THE SALES COMPARISON APPROACH Sales Comparison Approach is defined as: “The process of deriving a value indication for the subject property by comparing sale of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant when an adequate supply of comparable sales is available.” The Sales Comparison Approach involves the direct comparison of sales of similar properties, adjustments for variances, and correlation of the results into a property value indication. Adjustments to the sale prices of competitive properties selected for comparison are considered as they relate to the subject and to the various dissimilar investment features. The application of this approach produces an estimate of value for a property by comparing it with similar properties which have been sold or are currently offered for sale in the same or competing areas. There are a number of indicators of value that could be used for this analysis including sale price per square foot of building area with land. This indicator is calculated by dividing the sale price of the comparable by the building area which equals the sale price per square foot of building area. This technique is most useful when comparable land values and land to building ratios are consistent. In the analysis process, the analyst will utilize a quantitative procedure. In the initial step the appraiser will utilize a cumulative adjustment for each of the sale properties considering property rights, financing, conditions of sale, expenditures immediately after the sale and market conditions (commonly known as time). As the adjustments are cumulative in nature, they must be performed in the order in which they occur. Next the analyst will utilize a quantitative procedure by considering physical characteristics including location, quality of construction, age, condition, building size, percentage of office space, ceiling height, and land-to-building ratio. After completion of the analysis and adjustment process, the appraiser will estimate the appropriate value per square foot of building area and multiply it by the number of square feet contained within the building improvements. Page 1239 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 93 We invite your attention to the following improved sales location map which shows the location of the subject property and the location of the comparable sales utilized in this analysis in relationship to the subject property. IMPROVED SALES LOCATION MAP Pease note the following Improved Sales Sheets which provide the pertinent data for each comparable sale and a photograph. Page 1240 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 94 COMPARABLE 1 Property Reference: Property Type: Industrial Address: 1990 Seward Ave Naples, FL 34109 County: Collier Property Name: N/A Sale Date: March 07, 2024 Sale Price: $3,720,000 Recording: OR Book/Page: 6338-387 Interest Conveyed: Leased Fee Deed Type: Warranty Deed Financing: Cash to seller Grantor: 9720 Sample, LLC Grantee: 1990 Seward Avenue STRAP/ID: 00255087700/52685000143 Site Data: Site Dimensions: Approx 165' frontage along Seward Ave. Site Size: 77,537 square feet, 1.780 acres Utilities: Full Public Access: Good Zoning: Industrial CNA File# 3734 Page 1241 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 95 Improvement Data: Building Type: Office/Warehouse Year Built: 1990 Number of Buildings: 1 Number of Stories: 2 Type of Construction: CBS/Metal Quality: Average Building Condition: Average Effective Age (yrs): 20 Gross Building Area (sf): 10,000 Net Building Area (sf): 10,000 Land to Building Ratio: 7.75:1 Financial Analysis: Sale Price: $3,720,000 Conditions of Sale: None Noted Exp. Immed. After Sale: N/A Adjusted Sale Price: $3,720,000 Price per Net SF: $372.00 Net Operating Income: $227,000 Overall Rate: 6.10% Sale Confirmation: Verification: Adam Palmer - Listing agent, (239) 898-8686 Verifying Appraiser: Richard Tyler, June 12, 2024 Sale History: 8/20/2022 $2,850,000 Comments: This is the sale of a single user 10,000 SF industrial office/warehouse building located along Seward Avenue in Naples. The sale includes two contiguous parcels, the second parcel is vacant land. The listing agent verified sale as arm's length and at market. He also assisted with income and expense information. CNA Data # 3734 Page 1242 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 96 COMPARABLE 2 Property Reference: Property Type: Industrial Address: 3600 Westview Dr Naples, FL 34104 County: Collier Property Name: N/A Sale Date: April 15, 2024 Sale Price: $7,500,000 Recording: OR Book/Page: 6351-174 Interest Conveyed: Fee Simple Deed Type: Warranty Deed Financing: Cash to seller Grantor: Motorsports Storage, LLC Grantee: Spartan Investment Property – Naples LLC STRAP/ID: 81570360008 Site Data: Site Dimensions: Approx 218' frontage along Westview Dr. Site Size: 67,405 square feet, 1.547 acres Utilities: Full Public Access: Average Zoning: PUD Page 1243 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 97 Improvement Data: Building Type: Office/Warehouse Year Built: 2004 Number of Buildings: 1 Number of Stories: 1 Type of Construction: CBS Quality: Average Building Condition: Average Effective Age (yrs): 15 Gross Building Area (sf): 18,597 Net Building Area (sf): 18,597 Land to Building Ratio: 3.62:1 Financial Analysis: Sale Price: $7,500,000 Conditions of Sale: None Noted Exp. Immed. After Sale: N/A Adjusted Sale Price: $7,500,000 Price per Net SF: $403.29 Net Operating Income: $418,507 Overall Rate: 5.58% Sale Confirmation: Verification: CoStar Listing, Listing Flyer, Public Record Verifying Appraiser: Mitchell Clark, August 29, 2025 Sale History: No qualified sales in the previous three years. Comments: This is the sale of a single user 18,597 square foot industrial office/warehouse building located along Westview Dr in Naples. The building is fully air conditioned, and fully sprinklered. The ceiling height in the warehouse areas is 20’-22’. The building contains approximately 4,520 sf of office/showroom space. The transaction involved a sale leaseback, with the previous owner decreasing their footprint from occupying 18,597 sf to leasing 9,299 sf for up to 27 months. Income and expenses information is market derived. Page 1244 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 98 COMPARABLE 3 Property Reference: Property Type: Industrial Address: 3884 Progress Ave. Naples, FL 34104 County: Collier Property Name: N/A Sale Date: January 30, 2024 Sale Price: $2,940,000 Recording: OR Book/Page: 6326-560 Interest Conveyed: Fee Simple Deed Type: Warranty Deed Financing: Cash to seller Grantor: M & S Wild Enterprises, LLC Grantee: JOB 42, LLC STRAP/ID: 00282081009 Site Data: Site Dimensions: Approx. 160' x 308 Site Size: 49,223 square feet, 1.130 acres Utilities: Full Public Access: Good Zoning: Industrial CNA File# 3990 Page 1245 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 99 Improvement Data: Building Type: Office/Warehouse Year Built: 1989 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal Quality: Average Building Condition: Average Effective Age (yrs): 20 Gross Building Area (sf): 12,100 Net Building Area (sf): 12,100 Land to Building Ratio: 4.07:1 Financial Analysis: Sale Price: $2,940,000 Conditions of Sale: None Noted Exp. Immed. After Sale: N/A Adjusted Sale Price: $2,940,000 Price per Net SF: $242.98 Net Operating Income: $211,092 Overall Rate: 7.18% Sale Confirmation: Verification: Michael Buonadonna - Listing agent, 866-889-0550 Verifying Appraiser: Richard Tyler, March 07, 2025 Sale History: No sales in previous 3-years Comments: This is the sale of an industrial office/warehouse building along Progress Avenue in the Airport Industrial Park of Naples. The property is multi-tenant and currently includes seven tenants with 87% occupancy. The property was listed for sale at $3,250,000 and exposed to the market for 124 days. Listing agent assisted with income and expense information. CNA Data # 3990 Page 1246 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 100 COMPARABLE 4 Property Reference: Property Type: Industrial Address: 4273 Arnold Avenue Naples, FL 34104 County: Collier Property Name: N/A Sale Date: September 20, 2024 Sale Price: $1,850,000 Recording: OR Book/Page: 6400-1197 Interest Conveyed: Fee Simple Deed Type: Warranty Deed Financing: Conventional $1,100,000 Grantor: National Roofing Collier, Inc. Grantee: Tranon Properties, Inc. STRAP/ID: 00279080000 Site Data: Site Dimensions: Approx. 100' x 253' Site Size: 25,265 square feet, 0.580 acres Utilities: Full Public Access: Good Zoning: Industrial CNA File# 3987 Page 1247 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 101 Improvement Data: Building Type: Office/Warehouse Year Built: 1982 Number of Buildings: 1 Number of Stories: 1 Type of Construction: Metal Quality: Average Building Condition: Above-average Effective Age (yrs): 25 Gross Building Area (sf): 5,220 Net Building Area (sf): 5,220 Land to Building Ratio: 4.84:1 Financial Analysis: Sale Price: $1,850,000 Conditions of Sale: None noted Exp. Immed. After Sale: N/A Adjusted Sale Price: $1,850,000 Price per Net SF: $354.41 Net Operating Income: $121,365 Overall Rate: 6.56% Sale Confirmation: Verification: Ed Blackburn - Listing agent, 239-777-7020 Verifying Appraiser: Richard Tyler, March 07, 2025 Sale History: No sales in previous 3-years Comments: This is the sale of an industrial office/warehouse building along Arnold Avenue in the Airport Industrial Park of Naples. Buyer plans to occupy and utilize the property for his business. The property was listed for sale at $2,300,000 and exposed to the market for 144 days. Listing agent assisted with income and expense information. Although this is a 1031 exchange, the listing agent indicated the sale price was at market. CNA Data # 3987 Page 1248 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 102 COMPARABLE 5 Property Reference: Property Type: Industrial Address: 1141 Sun Century Road Naples, FL 34110 County: Collier Sale Date: December 14, 2023 Sale Price: $1,500,000 Recording: Instr# 6487811 Interest Conveyed: Leased Fee Deed Type: Warranty Deed Financing: Conventional Grantor: Attic Insulation Man Inc. Grantee: Sun Century Holdings LLC STRAP/ID: 642101200004 Site Data: Site Dimensions: 100' x 229' Site Size: 23,087 square feet, 0.530 acres Utilities: Full Public Access: Average Zoning: I CNA File# 3625 Page 1249 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 103 Improvement Data: Building Type: Warehouse/Office Year Built: 1989 Number of Buildings: 1 Number of Stories: 2 Type of Construction: Steel Frame Quality: Average Building Condition: Above average Effective Age (yrs): 15 Gross Building Area (sf): 4,800 Net Building Area (sf): 4,800 Land to Building Ratio: 4.81:1 Financial Analysis: Sale Price: $1,500,000 Conditions of Sale: Arm's Length Exp. Immed. After Sale: $0 Adjusted Sale Price: $1,500,000 Price per Net SF: $312.50 Potential Gross Income: $107,100 Vacancy and Collection Loss: $2,100 Effective Gross Income: $105,000 Operating Expenses: $21,000 Net Operating Income: $84,000 Overall Rate: 5.60% Sale Confirmation: Verification: Alexis North- Listing Broker, 239-489-4066 Verifying Appraiser: Zack Kazak, February 20, 2024 Sale History: Sold on April 28,2021 for $375,000 Comments: This is the sale of an industrial office/warehouse building located on Sun Century Rd in Naples, FL. The warehouse has 4,800 square feet of net area, with 1,000 square feet as office space on the first floor which equates to 21% of the total net area. The ceiling height is 18’. The building is in above average condition, with no deferred maintenance. The property was sold for $1,500,000 on December 14, 2023, in an arm's length transaction. The property sold for above asking price of $1,350,000. According to the listing agent, there were several bidders and was listed for sale for approximately 2 weeks. The property sold at a 5.6% cap rate and was fully leased at the time of sale. There is one tenant occupying the building. All information was verified by the listing agent. Page 1250 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 104 COMPARABLE 6 Property Reference: Property Type: Industrial Address: 68 Industrial Boulevard Naples, FL 34104 County: Collier Property Name: N/A Sale Date: December 5, 2023 Sale Price: $5,550,000 Recording: Instr. #6483947 Interest Conveyed: Fee Simple Deed Type: Special Warranty Deed Financing: Cash to Seller Grantor: AB Sunport II, LLC Grantee: 68 Industrial Holdings, LLC STRAP/ID: 00270960006 Site Data: Site Dimensions: Approx. 330’ x 313’ Site Size: 103,673 square feet, 2.38 acres Utilities: Full Public Access: Good Zoning: I - Industrial Page 1251 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 105 Improvement Data: Building Type: Warehouse Year Built: 2015 Number of Buildings: 1 Number of Stories: 1 Type of Construction: CBS Quality: Average Building Condition: Good Effective Age (yrs): 10 Gross Building Area (sf): 14,009 Net Building Area (sf): 14,009 Land to Building Ratio: 7.40:1 Financial Analysis: Sale Price: $5,550,000 Conditions of Sale: Arm's Length Exp. Immed. After Sale: N/A Adjusted Sale Price: $5,550,000 Price per Net SF: $396.17 Net Operating Income: $260,904 Overall Rate: 4.70% Sale Confirmation: Verification: Robert Johnston – Listing Agent, 614-272-1215 Verifying Appraiser: Mitchell Clark, August 2, 2024 Sale History: No sales in previous 3 years Comments: This is the purchase of an industrial warehouse building located at the corner of Industrial Blvd and Radio Rd in Naples. Per conversation with the listing agent, there is minimal office space in the building. The building was fully occupied by 1 tenant at the time of sale, and is currently being used as a maintenance warehouse for Suncoast Beverage. There are 9 roll-up doors and the clear height is 18’. The building was described as being in good condition, and was built in 2015. The property sold for $5,550,000 on December 5, 2023. This was an arm’s length transaction. Income and expense information is market derived. Page 1252 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 106 ACTIVE LISTING 1 Property Reference: Property Type: Industrial Address: 3558 Plover Avenue Naples, FL 341117 County: Collier Property Name: N/A Sale Date: N/A List Price: $6,800,000 Recording: N/A Interest Conveyed: Fee Simple Deed Type: N/A Financing: N/A Grantor: Plover Realty II, LLC Grantee: N/A STRAP/ID: 67989000122, 67989000148, 67989000164, 67989000180, 67989000203, 67989000229 Site Data: Site Dimensions: Approx. 233’ x 219’ Site Size: 50,965 square feet, 1.17 acres Utilities: Full Public Access: Average Zoning: PUD Page 1253 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 107 Improvement Data: Building Type: Industrial Year Built: 2020 Number of Buildings: 1 Number of Stories: 1 Type of Construction: CBS Quality: Average Building Condition: Good Effective Age (yrs): 5 Gross Building Area (sf): 18,450 Net Building Area (sf): 18,450 Land to Building Ratio: 2.76:1 Financial Analysis: List Price: $6,800,000 Conditions of Sale: N/A Exp. Immed. After Sale: N/A Price per Net SF: $368.56 Net Operating Income: $422,685 Overall Rate: 6.21% Sale Confirmation: Verification: CoStar Listing and Listing Flyer Verifying Appraiser: Mitchell Clark, August 13, 2025 Sale History: Sold for $4,999,000 on 1/10/2023 Comments: This is the active listing of a multi-unit industrial property located along Plover Ave in Naples. The building was constructed in 2020 and contains 6 units totaling 18,450 square feet of net area. NOI and cap rate information was obtained from the listing flyer for the property. The building contains 18’ ceilings, and there are twelve total 12’ x 14’ overhead roll-up doors. Each unit contains approximately 300 square feet of office area (16%). Page 1254 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 108 Page 1255 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 109 Improved Sales Adjustment Analysis: The six sales and one active listing were compared to each other individually and collectively as well as being compared to the subject property in order to assist in the adjustment process. Real Property Rights Conveyed: “An element of comparison in the sales comparison approach; comparable sales can be adjusted for the effect of differences in the real property rights (fee simple, leased fee, leasehold, easements, or other encumbrances, etc.) involved in the transactions being compared.” The property rights for the subject and the comparables are fee simple and leased fee, therefore no adjustment was made. Financing Terms: “The manner in which a transaction was financed; an element of comparison in the sales comparison approach whereby comparable properties can be adjusted for the influence of differences between a transaction’s financing terms and those assumed in the valuation of a subject property. In this analysis the transactions were either market financed or cash to the seller, so no adjustments were necessary. Conditions of Sale: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the motivations of either the buyer or a seller in a transaction.” In this analysis the transactions were all at “arms-length” or no conditions of sale were noted. No adjustments were necessary. Expenditures Immediately after Sale: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for any additional investment (e.g., curing deferred maintenance) that the buyer needed to make immediately after purchase for the properties to have similar utility to the subject property being valued.” No adjustments were warranted for the comparables in this category. Market Conditions is defined as: “An element of comparison in the sales comparison approach; comparable properties can be adjusted for differences in the points in the real estate cycle at which the transactions occur. Sometimes called a time adjustment because the differences in dates of sale are often compared, although the usage can be misleading because property values do not change merely as the result of the passage of time.” The sale dates of the comparables took place from December 2023 and September 2024. Realtors familiar with this market area confirmed that property values have been increasing over the past 2- 3 years. Based on market information previously discussed in the market trends section of this report, we have estimated a 5% annual or 0.4% monthly increase are applied to all sales occurring more than one year ago (Sales One, Two, Three, Five, and Six). Page 1256 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 110 Physical Characteristics: Next the sales were considered and compared with one another and to the subject for physical characteristics. These include location, quality of construction materials, effective age/condition, building size, percentage of office area, and land-to-building ratio. A quantitative adjustment analysis is utilized. The physical characteristics are discussed below. Location: The subject is located along Domestic Ave in a commercial/industrial corridor in Naples. All of the comparable sales are located in similar locations in the Naples. The subject’s location is average and deemed similar to the comparable sales and no adjustments were necessary in this category. Quality of Construction: The subject is an industrial warehouse/office building of CBS construction of average quality. All of the sales are rated to be of similar CBS or metal construction of average quality, and no adjustments were made in this category. Effective Age/Condition: The subject building was built in 2002 and is in overall average condition. The comparables were built from 1982 (Sale Four) through 2020 (Listing 1) and were rated as being average in condition. Sale Four has been adjusted upward 5% for the inferior effective age/condition. Sale Six and Active Listing 1 have been adjusted downward 5% for superior effective age/condition. All of the remaining comparables were rated as being similar in this category. Net Building Area: The subject property has 12,550 square feet of net building area. Typically, as the building size increases the unit value decreases (larger buildings sell for less per square foot than smaller buildings) all other factors being equal. The comparables range in size from 4,800 square feet (Sale Five) to 18,597 square feet (Sale Two). The sales utilized represent the most comparable properties in the market. All of the comparable sales were rated as being overall similar in size to the subject, and no adjustment was warranted. Percentage of Office/Showroom Area: The subject has an office/showroom area of approximately 25% of the net building area. Sale One was adjusted downward 5% for the superior percentage of office/showroom space. Sale Six was adjusted upward 5% for the inferior percentage of office/showroom space. All of the remaining comparable sales had a similar percentage of office/showroom area, and no further adjustments were warranted in this category. Ceiling Height: The subject has a ceiling height of 20’. Sale Four was adjusted upward 5% for the inferior ceiling height. Sale Six was adjusted downward 5% for the superior ceiling height. All of the remaining comparable sales were rated as having similar ceiling heights in the warehouse areas, and no further adjustments were warranted in this category. Page 1257 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 111 Land to Building Ratio: The subject property has a land-to-building ratio of 2.95 to 1. The comparable sales have land-to-building ratios that range from 2.76 to 1 (Listing 1) and 7.75 to 1 (Sale One). Typically, the larger the land-to-building ratio, the more parking capacity. Sales One and Six were each adjusted downward 5% for the superior land-to-building ratio. All of the remaining comparable sales were rated as being similar to the subject and no adjustments were necessary. Final Analysis A summary of the sale price data presented above is shown in tabular form below. Please note the statistical data for the final adjusted sale prices. The comparable sales range of adjusted prices per square foot is from $261.44 (Sale Three) to $429.10 (Sale Two) with mean and median values of $360.09 and $371.32, respectively. When selecting the comparables most similar to the subject the criteria utilized include location, quality of construction materials, effective age/condition, building size, percentage of office area, ceiling height, and land-to-building ratio. All of the comparable sales were given relatively equal consideration in our analysis. Based on this analysis, it is our opinion that the most appropriate value for the subject would be within the range of comparable sales and near the mean and median values noted, that being a value of $360.00 per square foot. Multiplying the subject’s total net building area of 12,550 square feet by the unit value of $360.00 per square foot results in a value of $4,518,000, or $4,520,000 rounded. Therefore, it is our opinion the “As Is” market value of the fee simple interest of the subject property, as of August 4, 2025 via the Sales Comparison Approach is $4,520,000. Page 1258 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 112 Section 6 – Reconciliation of Value 0B0B0BSummary of Value Conclusions “As Is” Cost Approach Not applied Income Approach $4,560,000 Sales Comparison Approach $4,520,000 The Cost Approach is based upon the principle of substitution, which states that a prudent purchaser would not pay more for a property than the amount required to purchase a similar site and construct similar improvements without undue delay, producing a property of equal desirability and utility. The subject building was constructed in 2002. As an improvement ages, it becomes increasingly difficult to accurately quantify physical depreciation. The current market relies mostly on sales and income generation capability to value properties such as the subject. For this reason, the Cost Approach is not used in this appraisal. The Income Approach was used to develop a value estimate for the subject utilizing the direct capitalization technique. The subject’s rental market was surveyed; and comparable rentals were selected to illustrate the current state of the subject’s market. The strength of this approach is the timeliness of the rental data. The overall capitalization rate was derived from the financial analysis of the comparable sales and published capitalization rates. The vacancy rate was developed with the aid of published local surveys and market data provided by well-respected commercial real estate data sources. All data was deemed reliable, the income approach provides a good indication of value of the subject based on its income stream. The Sales Comparison Approach references sales of similar properties located in competitive areas in the researched market area. Sales of comparable property were located and analyzed to estimate the value of the subject. The sales presented were the best available; collectively they provide a reliable indication of the subject’s market value. The Sales Comparison Approach and the Income Approach provide credible value estimates. The Income Approach is a credible value estimate to an investor. The Sales Approach on the other hand, better accounts for the subject as if owner occupied and provides a good indication of value to an end user. The sales comparison approach and income approach were both given relatively equal consideration in our analysis. Page 1259 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 113 Based upon the results of the investigation and analyses, the market value of the fee simple interest of the subject “As Is” under the extraordinary assumptions and market conditions existing August 4, 2025 is: FOUR MILLION FIVE HUNDRED AND FORTY THOUSAND DOLLARS ............ ($4,540,000.00.) CARLSON, NORRIS & ASSOCIATES Michael Jonas, MAI, AI-GRS, CCIM State-certified general real estate appraiser RZ2623 Mitchell A. Clark State-registered trainee appraiser RI25830 Page 1260 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 114 Section 7 – Certification and Limiting Conditions Certification of Michael P. Jonas, MAI, AI-GRS I certify to the best of my 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 is our personal, impartial and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My 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. • This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation and the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, as well as 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). • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, Michael Jonas has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. • As of the date of this report, Michael Jonas has completed the continuing education program for Designated Members of the Appraisal Institute. Page 1261 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 115 • Michael Jonas has completed the requirements of education for registration through the State of Florida is current until November 30, 2026. • Michael Jonas has not made a personal inspection of the property that is the subject of this report. • Mitchell Clark, Registered Appraiser Trainee License: RI25830, contributed twenty-four hours relating to development, research, inspection, and writing of this report. • 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. • Michael Jonas is in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and has sufficient education and experience to perform the appraisal of the subject property. • Michael Jonas has not appraised the subject in the last three years. He has not provided any other services related to the property in the last three years. • I, the supervisory appraiser of a registered appraiser trainee who contributed to the development or communication of this appraisal, hereby accepts full and complete responsibility for any work performed by the registered appraisal trainee named in this report as if it were my own work. Based on market conditions existing as of the effective date of appraisal, it is our opinion the subject property, under the extraordinary assumptions as discussed in this report, warranted a market value in “As Is” condition in fee simple ownership on August 4, 2025 of: FOUR MILLION FIVE HUNDRED AND FORTY THOUSAND DOLLARS ............ ($4,540,000.00.) Respectfully Submitted, CARLSON, NORRIS AND ASSOCIATES Michael P. Jonas, MAI, AI-GRS State-certified general real estate appraiser RZ2623 Page 1262 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 116 Certification of Mitchell Clark I certify to the best of my 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 is our personal, impartial and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My 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. • This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation and the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute, as well as 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). • The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • Mitchell A. Clark has completed the requirements of education for registration through the State of Florida is current until November 30, 2026. • Mitchell A. Clark has made a personal inspection of the property that is the subject of this report. • No one has provided significant real property appraisal assistance to the persons signing this report. Page 1263 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 117 • 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. • Mitchell A. Clark is in compliance with the Competency Provision in the USPAP as adopted in FIRREA 1989 and has sufficient education and experience to perform the appraisal of the subject property. • Mitchell A. Clark has not appraised the subject in the last three years. He has not provided any other services related to the property in the last three years. Based on market conditions existing as of the effective date of appraisal, it is our opinion the subject property, under the extraordinary assumptions as discussed in this report, warranted a market value in “As Is” condition in fee simple ownership on August 4, 2025 of: FOUR MILLION FIVE HUNDRED AND FORTY THOUSAND DOLLARS ............ ($4,540,000.00.) Respectfully submitted, CARLSON, NORRIS AND ASSOCIATES Mitchell A. Clark State-registered trainee appraiser RI25830 Page 1264 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 118 General Assumptions & Limiting Conditions Information Used: No responsibility is assumed for accuracy of information furnished by others or from others, including the client, its officers and employees, or public records. We are not liable for such information or for the work of contractors, subcontractors and engineers. The comparable data relied upon in this appraisal has been confirmed with one or more parties familiar with the transaction unless otherwise noted; all are considered appropriate for inclusion to the best of my factual judgment and knowledge. Certain information upon which the opinions and values are based may have been gathered by research staff working with the appraiser. Names, professional qualifications and extent of their participation can be furnished to the client upon request. Legal, Engineering, Financial, Structural or Mechanical Nature, Hidden Components, Soil: No responsibility is assumed for matters legal in character or nature nor matters of survey, nor of any architectural, structural, mechanical or engineering nature. No opinion is rendered as to the legal nature or condition of the title to the property, which is presumed to be good and marketable. The property is appraised assuming it is free and clear of all mortgages, liens or encumbrances, unless otherwise stated in particular parts of this report. The legal description is presumed to be correct, but I have not confirmed it by survey or otherwise. I assume no responsibility for the survey, any encroachments or overlapping or other discrepancies that might be revealed thereby. I have inspected, as far as possible by observation, the land thereon; however, it was not possible to personally observe conditions beneath the soil or hidden; as a result, no representation is made herein as to such matters unless otherwise specifically stated. The estimated market value assumes that no such conditions exist that would cause a loss of value. I do not warrant against the occurrence of problems arising from any of these conditions. It is assumed that there are no hidden or unapparent conditions to the property, soil, subsoil or structures, which would render them more or less valuable. No responsibility is assumed for any such conditions or for any expense or engineering to discover them. Information relating to the location or existence of public utilities has been obtained through inquiry to the appropriate utility authority, or has been ascertained from visual evidence. No warranty has been made regarding the exact location or capacities of public utility systems. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. Legality of Use: The appraisal is based on the premise that there is or will be full compliance with all applicable Federal, State and local environmental regulations and laws, unless otherwise stated in the report; and that all appropriate zoning, building and use regulations and restrictions of all types have been or will be complied with and required licenses, consent, permits or other authority, whether local, State, Federal and/or private, have been or can be obtained or renewed for the use intended and considered in the value estimate. Component Values: The distribution of the total valuation of this report between land and improvements applies only under the proposed program of utilization. The separate valuations of land and buildings must not be used in conjunction with any other appraisal, and are invalid if so used. A report related to an estate that is less than the whole fee simple estate applies only to the fractional interest involved. The value of this fractional interest, plus the value of all other fractional interests, may or may not equal the value of the entire fee simple estate considered as a whole. Page 1265 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 119 A report relating to the geographic portion of a larger property applies only to such geographic portion and should not be considered as applying with equal validity to other portions of the larger property or tract. The value for such geographic portions, plus the value of all other geographic portions, may or may not equal the value of the entire property or tract considered as a single entity. All valuations in the report are applicable only under the estimated program of the highest and best use and are not necessarily appropriate under other programs of use. Auxiliary and Related Studies: No environmental or impact studies, special market study or analysis, highest and best use analysis study or feasibility study has been requested or made by us unless otherwise specified in this report or in my agreement for services. I reserve the unlimited right to alter, amend, revise or rescind any of these statements, findings, opinions, values, estimates or conclusions upon any subsequent study or analysis or previous study or analysis that subsequently becomes available to us. Dollar Values, Purchasing Power: The value estimates and the costs used herein are as of the date of the estimate of value. All dollar amounts are based on the purchasing power and price of the United States dollar as of the date of value estimate Inclusions: Furnishings and equipment or business operations, except as otherwise specifically indicated, have been disregarded, with only the real estate being considered. Proposed Improvements Conditioned Value: For the purpose of this appraisal, on- or off-site improvements proposed, if any, as well as any repairs required, are considered to be completed in a good and workmanlike manner according to information submitted and/or considered by us. In cases of proposed construction, the report is subject to change upon inspection of the property after construction is complete. The estimate of value, as proposed, is as of the date shown, as if completed and operating at levels shown and projected. Value Change, Dynamic Market Influences: The estimated value is subject to change with market changes over time. Value is highly related to interest rates, exposure, time, promotional effort, supply and demand, terms of sale, motivation and conditions surrounding the offering. The value estimate considers the productivity and relative attractiveness of the property both physically and economically in the marketplace. The estimate of value in this report is not based in whole or in part upon race, color or national origin of the present owners or occupants of the properties in the vicinity of the property appraised. In the event this appraisal includes the capitalization of income, the estimate of value is a reflection of such benefits and my interpretation of income and yields and other factors which were derived from general and specific market information. Such estimates are made as of the date of the estimate of value. As a result, they are subject to change, as the market is dynamic and may naturally change over time. The date upon which the value estimate applies is only as of the date of valuation, as stated in the letter of transmittal. The appraisal assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinion stated herein. An appraisal is the product of a professionally trained person, but nevertheless is an opinion only, and not a provable fact. As a personal opinion, a valuation may vary between appraisers based upon the same facts. Thus, the appraiser warrants only that the value conclusions are his best estimate as of the date of valuation. There are no guaranties, either written or implied, that the property would sell for the expressed estimate of value. Page 1266 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 120 Title Review: Unless otherwise stated, the appraiser has not reviewed an abstract of title relating to the subject property. No title search has been made, and the reader should consult an attorney or title company for information and data relative to the property ownership and legal description. It is assumed that the subject title is marketable, but the title should be reviewed by legal counsel. Any information given by the appraiser as to a sales history is information that the appraiser has researched; to the best of my knowledge, this information is accurate, but not warranted. Management of the Property: It is assumed that the property which is the subject of this report will be under prudent and competent ownership and management over the entire life of the property. If prudent and competent management and ownership are not provided, this would have an adverse effect upon the value of the property appraised. Confidentiality: We are not entitled to divulge the material (evaluation or valuation) content of this report and analytical findings or conclusions, or give a copy of this report to anyone other than the client or his designee, as specified in writing, except as may be required by the Appraisal Institute, as they may request in confidence for ethic enforcement, or by a court of law with the power of subpoena. All conclusions and opinions concerning the analyses as set forth herein are prepared by the appraisers whose signatures appear. No change of any item in the report shall be made by anyone other than the appraiser, and the firm shall have no responsibility if any such unauthorized change is made. Whenever our opinion herein with respect to the existence or absence of fact is qualified by the phrase or phrases "to the best of our knowledge", "it appears" or "indicated", it is intended to indicate that, during the course of our review and investigation of the property, no information has come to our attention which would give us actual knowledge of the existence or absence of such facts. The client shall notify the appraiser of any error, omission or invalid data herein within 10 days of receipt and return of the report, along with all copies, to the appraiser for corrections prior to any use whatsoever. Neither our name nor this report may be used in connection with any financing plans which would be classified as a public offering under State or Federal Security Laws. Copies, Publication, Distribution, Use of Report: Possession of this report, or any copy thereof, does not carry with it the right of publication, nor may it be used for other than its intended use. The physical report remains the property of the firm for the use of the client, with the fee being for the analytical services only. This report may not be used for any purpose by any person or corporation other than the client or the party to whom the report is addressed. Additional copies may not be made without the written consent of an officer of the firm, and then only in its entirety. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public relations effort, news, sales or other media without my prior written consent and approval of the client. It has been assumed that the client or representative thereof, if soliciting funds for his project, has furnished to the user of this report complete plans, specifications, surveys and photographs of land d improvements, along with all other information which might be deemed necessary to correctly analyze and appraise the subject property. Authentic Copies: Any copy that does not have original signatures of the appraiser is unauthorized and may have been altered and, therefore, is considered invalid. Page 1267 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 121 Testimony, Consultation, Completion of Contract for Appraisal Services: A contract for appraisal, consultation or analytical services is fulfilled and the total fee payable upon completion of the report. The appraisers or those assisting in the preparation of the report will not be asked or required to give testimony in court or hearing because of having made the appraisal in full or in part, nor will they be asked or required to engage in post appraisal consultation with client or third parties except under separate and special arrangement and at an additional fee. Any subsequent copies of this appraisal report will be furnished on a cost-plus expenses basis, to be negotiated at the time of request. Limit of Liability: Liability of the firm and the associates is limited to the fee collected for preparation of the appraisal. There is no accountability or liability to any third party. Fee: The fee for this appraisal or study is for the service rendered, and not for time spent on the physical report. The acceptance of the report by the client takes with it the agreement and acknowledgement that the client will pay the negotiated fee, whether said agreement was verbal or written. The fee is in no way contingent on the value estimated. Special Limiting Conditions: The Americans with Disabilities Act became effective January 26, 1992. Not withstanding any discussion of possible readily achievable barrier removable construction items in this report, Carlson, Norris and Associates, has not made a specific compliance survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of the A.D.A. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the A.D.A. could reveal that the property is not in compliance with one or more of the requirements of the A.D.A. If so, this fact could have a negative effect on the value estimated herein. Since Carlson, Norris and Associates has no specific information relating to this issue, nor is Carlson, Norris and Associates qualified to make such an assessment, the effect of any possible non compliance with the requirements of the A.D.A. was not considered in estimating the value of the subject property. Extraordinary Assumptions: Extraordinary assumptions are defined as: “An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.” Please note the following extraordinary assumptions: • A soil analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soil report, it is a specific assumption that the site has adequate soils to support the highest and best use. The analyst is not an expert in area of soils, and would recommend that an expert be consulted. • It is assumed that there are no hidden or unapparent conditions to the property, soil, or subsoil, which would render them more or less valuable. Subsurface oil, gas or mineral rights were not considered in this report unless otherwise stated. The analyst is not an Page 1268 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 122 expert with respect to subsurface conditions and would recommend that an expert be consulted. • It is assumed that there are no hazardous materials either at ground level or subsurface. None were noted during the property inspection. The analyst is not an expert in the evaluation of site contamination and would recommend that an expert be consulted. It is recommended that an environmental audit be completed for the subject property due to its potential past use as a landscape supply company. • It is assumed all financial data provided by the owner is true and correct representations of the subject property. If this is not the case, the values stated herein will be affected. • This appraisal does not include the business furniture, fixtures and equipment (FF&E). The appraisal is for the real estate only and does not include any business-related inventory nor does it represent a business value. Page 1269 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 123 Section 8 – Addenda Page 1270 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 124 LISTING FOR SALE Page 1271 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 125 Page 1272 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 126 Page 1273 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 127 Page 1274 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 128 Page 1275 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 129 Page 1276 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 130 Page 1277 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 131 Page 1278 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 132 Property Card Page 1279 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 133 FLOOD MAP Page 1280 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 134 APPRAISERS' LICENSES LICENSE FOR MICHAEL JONAS, MAI, AI-GRS LICENSE FOR MITCHELL CLARK Page 1281 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 135 Page 1282 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 136 Page 1283 of 6526 C O L L I E R C O U N T Y P R O C U R E M E N T S E R V I C E S D I V I S I O N C A R L S O N , N O R R I S & A S S O C I A T E S 137 QUALIFICATIONS OF MITCHELL A. CLARK STATE-REGISTERED TRAINEE APPRAISER RI25830 EDUCATION: Auburn University - Bachelor of Science – Geology PROFESSIONAL EDUCATION: McKissock Basic Appraisal Principles – July 2022 McKissock: Basic Appraisal Procedures – August 2022 McKissock: 2020-2021 15-Hour National USPAP Course – December 2022 Marshall & Swift Commercial Cost Approach Certification – March 2023 McKissock: Florida Trainee Appraiser Subject Matter Electives – April 2023 McKissock: Supervisor-Trainee Course for Florida – April 2023 McKissock: National USPAP Update Course – November 2024 McKissock: Florida Appraisal Laws and Regulations – November 2024 McKissock: Appraisal of Fast Food Facilities – November 2024 McKissock: Appraisal of Self-Storage Facilities – November 2024 McKissock: Appraisal of Industrial and Flex Buildings – November 2024 EXPERIENCE: 2022-Present: Carlson, Norris and Associates, Inc. Fort Myers, Florida PROFESSIONAL MEMBERSHIP: Certification State-Registered Trainee Appraiser RI25830 Properties appraised/assisted with include: retail centers, commercial buildings, industrial buildings, warehouses, professional offices, medical offices, office/warehouse condominiums, vacant commercial land, vacant industrial land, special use properties, and other miscellaneous properties. Page 1284 of 6526 4500 Executive Drive, Suite 230 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com REAL ESTATE APPRAISAL REPORT 3910 BUILDING Industrial 3910 Domestic Avenue Naples, Collier County, Florida, 34104 PREPARED FOR: Mr. Roosevelt Leonard, R/W-AC Supervisor – Operations & Performance Management Collier County 2685 Horseshoe Drive South, Suite 103 Naples, FL 34104 Client File: PO Number 4500239840 EFFECTIVE DATE OF THE APPRAISAL: August 1, 2025 DATE OF THE REPORT: August 27, 2025 REPORT FORMAT: Appraisal Report PREPARED BY: RKL Appraisal and Consulting, PLC RKL File Number: 2025-188 Page 1285 of 6526 4500 Executive Drive, Suite 230 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com 3910 Building 3910 Domestic Avenue Naples, Florida Page 1286 of 6526 4500 Executive Drive, Suite 230 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com August 27, 2025 Mr. Roosevelt Leonard, R/W-AC Collier County 2685 Horseshoe Drive South, Suite 103 Naples, FL 34104 Re: Real Estate Appraisal 3910 Building 3910 Domestic Avenue, Naples, Collier County, Florida, 34104 Client File: PO Number 4500239840 RKL File Number: 2025-188 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 subject property. The intended users for the assignment are Collier County Board of Commissioners, and the intended use of the appraisal is to assist with the acquisition decisions by the Collier County Board of Commissioners. 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 subject is an existing industrial property containing 12,550 square feet of rentable area. The improvements were constructed in 2002 and are 100.0% occupied as of the effective date of the appraisal. The site consists of 0.93 acres, or 40,592 square feet. The northern approximately 30 feet of the lot is encumbered by the Domestic Avenue right- of-way. The usable area is approximately 37,052 square feet or 0.85 acres. Page 1287 of 6526 Mr. Roosevelt Leonard, R/W-AC Collier County August 27, 2025 Page 2 4500 Executive Drive, Suite 230 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion(s): VALUE CONCLUSIONS Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value, As Is Fee Simple August 1, 2025 $4,580,000 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: None. Respectfully submitted, RKL APPRAISAL AND CONSULTING, PLC Rachel M. Zucchi, MAI, CCIM Florida State-Certified General Real Estate Appraiser RZ2984 rzucchi@rklac.com; Phone 239-596-0801 Page 1288 of 6526 3910 BUILDING TABLE OF CONTENTS TABLE OF CONTENTS Summary of Important Facts and Conclusions ................................................................... 1 Introduction Information ..................................................................................................... 2 Subject Identification ...................................................................................................... 2 Current Ownership and Property History ....................................................................... 2 Appraisal Scope .............................................................................................................. 3 Client, Intended User, and Intended Use ........................................................................ 4 Definition of Market Value ............................................................................................. 4 Definition of Property Rights Appraised ........................................................................ 4 Purpose of Appraisal, Property Rights Appraised, and Dates ........................................ 5 Scope of Work ................................................................................................................ 5 Economic Analysis ............................................................................................................. 6 National Economic Analysis........................................................................................... 6 Florida Economic Analysis ............................................................................................. 8 Collier County Area Analysis ......................................................................................... 9 Market Area Analysis ................................................................................................... 26 Industrial Market Analysis ............................................................................................ 30 Property Description and Analysis ................................................................................... 34 Site Analysis ................................................................................................................. 34 Improvements Analysis ................................................................................................ 40 Real Estate Taxes and Assessments .............................................................................. 55 Highest and Best Use .................................................................................................... 57 Valuation Methodology .................................................................................................... 59 Analyses Applied .......................................................................................................... 60 Sales Comparison Approach ......................................................................................... 61 Income Capitalization Approach .................................................................................. 71 Reconciliation ............................................................................................................... 80 Certification ...................................................................................................................... 82 Assumptions and Limiting Conditions ............................................................................. 84 Addenda Appraiser Qualifications ....................................................................................... Addendum A Financials and Property Information .................................................................... Addendum B Comparable Data .................................................................................................. Addendum C Page 1289 of 6526 3910 BUILDING SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS Page 1 SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS GENERAL Subject: 3910 Building 3910 Domestic Avenue, Naples, Collier County, Florida, 34104 Owner: Ambrosi 3, LLC Legal Description: Lengthy legal description shown in addenda Tax Identification: 00282090906 Intended Use: The intended use is to assist with the acquisition decisions by the Collier County Board of Commissioners. Intended User(s): Collier County Board of Commissioners PROPERTY Land Area: Total: 0.93 acres; 40,592 square feet Usable: 0.85 acres; 37,052 square feet Improvements: Year Built: 2002 Renovations: 2019 - 2021 Gross Building Area (GBA): 12,550 Gross Leasable Area (GLA): 12,550 Zoning: I - Industrial District Highest and Best Use As if Vacant Industrial development As Improved The highest and best use is as currently improved. Exposure Time 12 months Marketing Period 12 months VALUE INDICATIONS As Is Cost Approach: Not Developed Sales Comparison Approach: $4,580,000 Income Approach: $4,500,000 Reconciled Value(s): As Is Value Conclusion(s) $4,580,000 Effective Date(s) August 1, 2025 Property Rights Fee Simple 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: None. Page 1290 of 6526 3910 BUILDING INTRODUCTION INFORMATION Page 2 INTRODUCTION INFORMATION SUBJECT IDENTIFICATION Subject: 3910 Building 3910 Domestic Avenue, Naples, Collier County, Florida, 34104 Legal Description: Lengthy legal description shown in addenda Tax Identification: 00282090906 The subject is an existing industrial property containing 12,550 square feet of rentable area. The improvements were constructed in 2002 and are 100.0% occupied as of the effective date of the appraisal. The site consists of 0.93 acres, or 40,592 square feet. The northern approximately 30 feet of the lot is encumbered by the Domestic Avenue right- of-way. The usable area is approximately 37,052 square feet or 0.85 acres. CURRENT OWNERSHIP AND PROPERTY HISTORY Owner The owner of the property is Ambrosi 3, LLC. Sale History According to public records, the subject has not sold in the last three years. Current Listing/Contract(s): The subject was listed for sale in February 2025 for $5,100,000 by Bryan Flores and Cody Shadley of Kova Commercial Group. The subject is currently under contract for sale from Ambrosi 3, LLC to the Board of County Commissioners of Collier County, Florida, as the Governing Body of Collier County and as the Ex-Officio Governing Board of the Collier County Water-Sewer District for $4,500,000, or the average of two appraisals engaged by the Purchaser, whichever is lower. If the average of the appraisals is less than $4,500,000, the Board of County Commissioners may, by supermajority vote, approve payment of the higher Purchase Price. If such supermajority approval is not obtained or if for any reason the Purchase Price to be paid to Seller to Purchaser at Closing is less than $4,500,000, then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cause or penalty. The contract was signed by the seller on July 25, 2025. The closing date is scheduled for on or before 180-days following execution of the Agreement by the Purchaser, or within 30-days of Purchaser’s receipt of all reasonably required closing documents, whichever is later. If for any reason Closing does not occur on or before December 31, 2025, and the failure to Close is not caused by any act or omission of the Seller, then Seller in its sole discretion shall have the right to rescind the Agreement upon written notice without cost or penalty. Page 1291 of 6526 3910 BUILDING INTRODUCTION INFORMATION Page 3 Following is Section 7.01 of the contract regarding possession after closing. As shown in the following appraisal, the pending purchase price is market orientated. To the best of our knowledge, no other sale or transfer of ownership has occurred within the past three years. 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: Page 1292 of 6526 3910 BUILDING INTRODUCTION INFORMATION Page 4 ● 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; ● 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 the Collier County Board of Commissioners. The intended use is to assist with the acquisition decisions by the Collier County Board of Commissioners. 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, 7th ed. (Chicago: Appraisal Institute, 2022) 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(h); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994 ; 79 Federal Register 28400, May 16, 2014; 83 Federal Register April 9, 2018; 84 Federal Register, October 8, 2019 ) 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 Page 1293 of 6526 3910 BUILDING INTRODUCTION INFORMATION Page 5 taxation, eminent domain, police power, and escheat.” (Source: The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 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 subject property. The effective date of the subject appraisal is August 1, 2025. The date of inspection was August 1, 2025. The date of the report is August 27, 2025. SCOPE OF WORK The problem to be solved is to estimate the market value of the fee simple interest in the subject property. 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 complete interior and exterior inspection of the subject property has been made, and photographs taken. Market Area and Analysis of Market Conditions: A complete analysis of market conditions has been made. The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to this analysis. Highest and Best Use Analysis: A complete as vacant and as improved highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded. Valuation Analyses Cost Approach: A cost approach was not applied as the age of the improvements makes the depreciation difficult to accurately measure. Sales Comparison Approach: A sales approach was applied as there is adequate data to develop a value estimate and this approach reflects market behavior for this property type. Income Approach: An income approach was applied as the subject is an income producing property and there is adequate data to develop a value estimate with this approach. Hypothetical Conditions: None. Extraordinary Assumptions: None. Comments The individual sections of the report detail the additional research, confirmation, and analysis of relevant data. Page 1294 of 6526 3910 BUILDING NATIONAL ECONOMIC ANALYSIS Page 6 ECONOMIC ANALYSIS NATIONAL ECONOMIC ANALYSIS The Federal Reserve Open Market Committee (FOMC) released the following statement on July 30, 2025. Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective. In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. The following table details the economic forecasts of Federal Reserve Board members and Federal Reserve Bank presidents as of June 2025. Real GDP is projected to grow at a rate of 1.4% in 2025, a decrease from the March 2025 projection of 1.7%. The 2026 projection also declined to 1.6% from 1.8%. The unemployment projection increased from 4.4% to 4.5% for 2025. The Core PCE inflation projection for 2025 increased from 2.8% in March 2025 to 3.1%. Page 1295 of 6526 3910 BUILDING NATIONAL ECONOMIC ANALYSIS Page 7 Lawrence Yun, NAR Chief Economist, noted in a January 2025 Economic Issues and Home Sales Trends webinar that 2025 may be a better year for real estate, with more inventory, more listings and more sales. Dr. Yun projects home sales rising 9% this year and another 13% in 2026. He projects price growth to be more muted at 0% to 5%. According to the Freddie Mac 2025 Outlook, although demand is expected to remain well above average in 2025, vacancy is expected to increase to 6.2%. The below-average rent growth of 2.2% and rising vacancy rates result in a forecast of gross rental income growth of 2% for 2025. According to the National Association of Real Estate Investment Trusts’ (NAREIT) 2025 Report, “there is a real possibility for an environment with both moderating interest rates and robust economic growth, otherwise known as an economic soft landing. Nevertheless, there are both lingering and emerging risks, including soft property fundamentals in some sectors and higher interest rates reflecting fiscal imbalances. Overall, in a world that will be marked by increasing and accelerating change, we see opportunities for REITs in 2025.” In the 2025 CBRE U.S. Real Estate Market Outlook, Dr. Richard Barkham, Global Chief Economist and Head of Global Research, predicts that despite many uncertainties, “the U.S. economy is poised for growth in 2025, driven by consumer spending, easing financial conditions and productivity gains. While retail and data centers have been supported by longer-term trends, all other real estate sectors will see the start of a new cycle.” Even though the 10-year Treasury yield is projected to remain above 4%, Dr. Barkham projects capitalization rates will compress slightly. Investors have the opportunity to secure long-term returns that have not been available for many years. Page 1296 of 6526 3910 BUILDING FLORIDA ECONOMIC ANALYSIS Page 8 According to the Deloitte Center for Financial Services annual Commercial Real Estate Outlook for 2025, “the global economic recovery has been uneven across geographies, and this will likely continue going forward.” Results from Deloitte’s 2025 commercial real estate outlook survey give some indication that commercial real estate owners and investors are hopeful that 2025 will emerge as a year of potential recovery over two years of muted revenues and pullbacks in spending. After two consecutive years where most survey respondents expected revenue declines, 88% of global respondents now report they expect their company’s revenues to increase going forward, a substantial shift from the 60% who expected further declines last year. Moreover, 60% of respondents expect growth to be in excess of 5% year over year. According to the PwC Emerging Trends in Real Estate 2025, real estate investors and developers should be poised for an upturn in industry trends as the post-pandemic disruption abates and positive cyclical forces gain strength. “The Federal Reserve is among the most important cyclical forces. Its pivot to reducing interest rates indicates a peak for inflation and construction costs — and the pivot is helping real estate markets to clear, boosting transaction activity. However, not all dealmakers are ready to jump in with both feet. After all, rate cuts also indicate a slower economy and that could affect net operating income (NOI) growth. The path to renewed vigor could take surprising detours.” According to J.P. Morgan Chase 2025 commercial real estate outlook, Following several years of elevated inflation, muted growth and general uncertainty, commercial real estate could be positioned for an upswing. “The industry is poised to be in a better place compared to the last few years,” said Victor Calanog, Global Head of Research and Strategy, Real Estate Private Markets at Manulife Investment Management. “It appears that the landing will be relatively soft, so that should mean continued positive momentum for economic activity, benefiting leasing and income drivers, including rents and occupancies.” Overall, the outlook for the 2025 commercial real estate is positive. The industrial sector remains the industry’s darling. Multifamily and retail continue to perform well, although they do have vulnerabilities. In some markets, even office vacancy rates are beginning to moderate. On April 9, 2025, J.P. Morgan Chase CEO Jamie Dimon said he sees the U.S. economy likely headed to recession as President Donald Trump’s tariffs cause uncertainty and volatility in the financial markets. FLORIDA ECONOMIC ANALYSIS According to the U.S. Census Bureau, Florida was home to four of the nation’s top five fastest-growing metropolitan statistical areas and three of the top 10 that gained the largest number of people from 2022 to 2023, reflecting continued population growth across the South. U.S. migration patterns played a significant role in the South’s population growth. Many people moved to this region, contributing to its overall positive net domestic migration (more people moving in from the rest of the United States than moving out to other parts of the United States). From 2022 to 2023, 28 of the top 30 metro areas with the highest positive domestic migration were in the South. Page 1297 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 9 According to the Winter 2024 Florida Forecast prepared by the Institute for Economic Competitiveness at the University of Central Florida, Florida’s economy, as measured by real Gross State Product, will expand at an average annual rate of 2.5% from 2024 to 2027. Real Gross State Product will decelerate during the economic slowdown as growth will slow to 3.3% in 2024 and 2.2% in 2025, then accelerate to reach 2.5% by 2026 and ease to 2.1% in 2027. Payroll job growth in Florida will begin to gradually decelerate as the economy remains at full employment. After year-over-year growth of 5.7% in 2022, payroll employment in 2023 was 3.4% but will slow to 2.0% in 2024 and drift lower to 0.6% by 2027. Housing starts have felt the bitter chill of higher mortgage rates. Total starts were 193,500 in 2022—before higher mortgage rates and worries of a slowing economy started a deceleration that will slow starts to 157,072 in 2027. The unemployment rate fell to 2.7% in 2023. The slower economy will push the rate up to 3.1% in 2024, and to 3.6% in 2025 before creeping to 3.8% in 2027. 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 Page 1298 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 10 degree of seasonality within the retail, service, and hospitality sectors of Collier County’s economy. Collier County is located less than 150 miles from Fort Myers, Fort Lauderdale, Miami, Sarasota, and West Palm Beach as shown in the following table. Metro Area Miles Fort Myers 44 Jacksonville 378 Fort Lauderdale 107 Tallahassee 435 Miami 128 Atlanta 616 Sarasota 120 New York 1,311 West Palm Beach 150 Dallas 1,315 Tampa 169 Chicago 1,335 Orlando 238 Distance to Other Major Markets Population The Bureau of Economic and Business Research, University of Florida released the following population statistics for Southwest Florida. As shown, total population increased in all six Southwest Florida counties with the greatest percentage growth in Lee County and the second highest in Charlotte County. 2023 2025 2030 2023 2025 2030 2035 to 2025 to 2030 to 2035 Southwest Florida 1,922,304 1,993,700 2,144,000 2,262,900 3.71%7.54%5.55% Charlotte 204,126 211,300 226,900 240,000 3.51%7.38%5.77% Collier 399,480 413,300 443,000 466,000 3.46%7.19%5.19% Glades 12,591 12,700 12,900 13,000 0.87%1.57%0.78% Hendry 40,895 41,500 42,600 43,400 1.48%2.65%1.88% Lee 800,989 835,900 908,500 964,400 4.36%8.69%6.15% Sarasota 464,223 479,000 510,100 536,100 3.18%6.49%5.10% Percent Change Projections of Florida Population by County, 2025-2050, with Estimates for 2023 Source: University of Florida, Bureau of Economic and Business Research, Florida Population Studies, Bulletin 198, January 2024 Population U.S. News & World Report, the global authority in rankings and consumer advice evaluated the country’s 150 most populous metropolitan areas based on affordability, job prospects and desirability. The 2024 25 Best Places to Retire includes six Florida metro areas with Daytona Beach the top Florida market at No. 8. Tampa is No. 12 overall while Sarasota is No. 18. Naples is ranked 6th overall in the 2023-2024 Best Places to Live report released by U.S. News & World Report and Sarasota is ranked 5th. Naples ranks No. 1 in the annual U.S. News & World Report Best Places to Live in the U.S. Sarasota, was ranked No. 11. Page 1299 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 11 Employment The local economy is largely dependent on the real estate market. Naples is one of the wealthiest areas in Florida, and it has seen significant population and job growth over the past several years. As migration from state to state has returned to pre-pandemic levels, the Naples region has seen population and job growth slow over the past year. According to the 3Q 2025 CoStar report, the market is one of the most affluent areas in Florida, with a median household income of $92,000, roughly 10% higher than the national median household income. The area has long been known as a destination for retirees and, as such, has a median age of 54, much higher than Florida's median age of 43. Like many parts of Florida, population growth has been a main driver for commercial real estate expansion over the past few years. However, Collier County’s relative affordability compared to other areas in the state has kept population trends muted. Population growth peaked between 2021 and 2022 when the market added roughly 13,000 new residents, according to Oxford Economics. That dropped down to less than 4,000 new residents over the past year. Migration patterns have largely returned to pre pandemic norms, and in-migration from out-of-state movers is expected to be far less than what the market has seen going forward. Healthcare is a driving force of the county’s economy and is the largest share of the market's employment base. Many of the hospital systems are the largest employers in the market. In addition, Arthrex, a medical device manufacturing company, has a large presence in the market and employs nearly 4,000 people. Page 1300 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 12 The following table shows employment projections through 2032 by the Florida Department of Economic Opportunity. As shown, the Construction and Professional and Business Services Industries have the largest projected growth rate of 11.1% and 11% respectively. Agriculture, Forestry, Fishing and Hunting are all projected to decline by 10%. NAICS Title 2024 2032 Growth Percent Growth Total, All Industries 667,076 710,326 43,250 6.5 Agriculture, Forestry, Fishing & Hunting 6,315 5,681 -634 -10.0 Mining 583 622 39 6.7 Construction 74,293 82,513 8,220 11.1 Manufacturing 16,413 16,459 46 0.3 Trade, Transportation, and Utilities 117,977 125,261 7,284 6.2 Information 6,229 6,715 486 7.8 Financial Activities 31,824 33,907 2,083 6.5 Professional and Business Services 82,530 91,587 9,057 11.0 Education and Health Services 76,975 84,462 7,487 9.7 Leisure and Hospitality 100,721 103,073 2,352 2.3 Other Services, Ex. Public Admin 24,972 26,837 1,865 7.5 Government 77,367 79,170 1,803 2.3 Self Employed and Unpaid Family Workers, All Jobs 50,877 54,039 3,162 6.2 Source: Florida Department of Economic Opportunity JOBS BY INDUSTRY WORKFORCE REGION 24 - CHARLOTTE, COLLIER, GLADES, HENDRY, LEE AND MONROE COUNTIES Employment The annual Collier County rate peaked in 2010 at 11.6% and had declined steadily since until the spike from the Covid-19 pandemic in April 2020. Since the pandemic, unemployment numbers have generally decreased as the economy continues to improve. Page 1301 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 13 As of May 2025, the unemployment rate for the State of Florida was 3.5%, down from the peak in May 2020 of 14.2%. On a national level, the unemployment rate in May 2025 was 4.2%, a decrease from the peak in April 2020 of 14.8%. Collier County currently has a slightly higher May rate, at 3.6%, than state levels and lower rate than national levels. 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 2014 through 2024. As shown, unemployment from the Covid-19 pandemic affected the service and leisure and hospitality sectors the most. All sectors have regained all lost jobs and have exceeded 2019 levels. Year Service- Providing % Change Goods Producing % Change Mining, Logging, & Const. % Change Leisure and Hospitality % Change All Employees, Total Nonfarm % Change 2014 114,400 4.4%15,400 14.1%12,100 15.2%25,500 4.5%129,400 4.9% 2015 118,500 3.6%17,000 10.4%13,600 12.4%26,500 3.9%135,500 4.7% 2016 123,200 4.0%18,700 10.0%14,900 9.6%27,500 3.8%141,900 4.7% 2017 125,400 1.8%19,400 3.7%15,400 3.4%28,300 2.9%144,800 2.0% 2018 128,600 2.6%21,500 10.8%17,200 11.7%29,100 2.8%150,100 3.7% 2019 132,200 2.8%22,400 4.2%17,700 2.9%30,000 3.1%154,600 3.0% 2020 125,300 -5.2%22,100 -1.3%17,200 -2.8%25,600 -14.7%147,400 -4.7% 2021 132,000 5.3%23,200 5.0%18,100 5.2%27,800 8.6%155,300 5.4% 2022 139,700 5.8%24,800 6.9%19,400 7.2%29,300 5.4%164,500 5.9% 2023 144,700 3.6%26,400 6.5%20,800 7.2%30,000 2.4%171,100 4.0% 2024 147,600 2.0%27,400 3.8%21,600 3.8%31,400 4.7%175,000 2.3% Source: U.S. Department of Labor Naples - Immokalee - Marco Island Page 1302 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 14 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 Southwest Florida Economic Development Alliance reports key employers in Southwest Florida (Collier, Lee and Charlotte County) from Biofuels, healthcare, technology, apparel design, to sugar production are a driving force behind the region’s success. The tables below provides a few examples of some key employers in Southwest Florida and the largest industries. Page 1303 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 15 The following table shows the Top 25 Employers as reported by the Florida Gulf Coast University Regional Economic Research Institute in 2023. Tourist Tax Revenues The following graph from the Southwest Florida Regional Economic Indicators April 2025 report prepared by Florida Gulf Coast University shows Collier, Lee, Charlotte, Sarasota County’s tourist tax revenues. Seasonally-adjusted real tourist tax revenues for the coastal counties registered $8.1 million in February 2025, up 1 percent from the prior month and 2 percent over the February 2024 figure. Collier County’s seasonally-adjusted real tourist tax revenues were $3.8 million in February 2025, a 0.1 percent decrease from January 2025 but a 4 percent increase from February 2024. Page 1304 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 16 Development Growth continues to shift east with Ave Maria becoming the top-selling single-family residential community in Collier County and was recently ranked as one of the Top 20 Selling Master-Planned Communities in the United States. It has maintained the top ranking in the Naples-Fort Myers market for the past eight years. Ave Maria reported a total of 600 new home sales in 2024 and 652 new home sales in 2023. It is the highest - ranking community in all of Collier County. There are currently four residential builders in Ave Maria, CC Homes, Del Webb Naples, Lennar and Pulte Homes. The grand opening of The National Golf and Country Club at Ave Maria, a bundled golf community by Lennar, was held on January 7, 2021. The Immokalee Road corridor between Naples and Ave Maria is projected to see thousands of new homes developed in the next few years. According to a June 2023 Naples Daily News article, Collier County commissioners approved an increase in the town of Ave Maria by nearly 1,000 acres to 5,000 acres which doesn’t include the roughly 1,000-acre Ave Maria University campus and other public benefits such as parks. According to David Genson, president of development for Barron Collier Cos., while more single-family homes will be built, the maximum number of residences won’t change, with the cap remaining at 11,000. With the way the town was originally laid out, it would have supported about 8,400 units without adding more land. The original plans called for 60% of the homes to be single- family which will increase to more than 80%. Approximately 50% of the buyers are from the east coast of Florida. Page 1305 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 17 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. In a near unanimous decision, the Collier County Planning Commission agreed to recommend approval of Longwater in March 2021. The project has sparked controversy because the property sits in the environmentally sensitive Rural Lands Stewardship Area, or RLSA. Commissioners voted to approve the Longwater and Bellmar Villages on June 8, 2021. The commissioners approved Brightshore, another rural village with thousands of proposed homes in December 2022. There are more than $1 billion in new luxury high-rise developments near the coast including The Ritz-Carlton Residences, Naples (formerly known as One Naples) at the northeast corner of Vanderbilt Beach Road and Gulf Shore Drive as well as Pelican Bay (Mystique completed in 2019) and Kalea Bay (Towers 100 and 200 are complete, Tower 300 was completed in December 2022, Tower 400 was completed in 2024 and Tower 500 is scheduled for completion in September 2026 in North Naples. New commercial development is very active at the intersections of Collier Boulevard and US 41 East as well as Collier Boulevard and Immokalee Road. In its 1st Quarter 2025 report, the Office of Federal Housing Enterprise Oversight (OFHEO) found that the Naples- Marco Island MSA had a 2.98% increase in home prices (purchase-only) over the trailing 12 months. Home prices (purchase-only) in the state of Florida decreased 1.43% over the past year (1Q 2024 – 1Q 2025) which was 50th in the nation. The continuing care retirement community, Moorings Park, teamed with London Bay Homes to develop an independent living development with 275 residences in 17 buildings. All of the buildings are six stories over parking. Grande Lake, will be built on 55 acres off Golden Gate Parkway, between Airport-Pulling and Livingston Roads. Entrance fees start at $1.5 million and are 70% refundable. Construction on the first 47 units in three buildings commenced in December 2018 with completion in May 2020. Arthrex, a medical device manufacturer and one of the county's largest employers, completed construction of its latest expansion plan at its headquarters along Goodlette- Frank Road in early 2020. The development includes a 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 hosts 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. Page 1306 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 18 NCH Healthcare partnered with New York-based Hospital for Hospital for Special Surgery, known as HSS, to build a three-story, 80,000-square-foot hospital. HSS at NCH will be a 15-bed acute-care addition on the hospital campus located along the north side of Immokalee Road near the NCH North Naples campus between Health Park and Medical Boulevards. The facility is expected to open to patients in the Spring of 2025. Barron Collier Companies and Metro Development Group broke ground on Founders Square, a 55-acre mixed-use development located on the southeast corner of Immokalee Road and Collier Boulevard in January 2020. The development is anchored by The Pointe, a collection of 10 separate restaurants and other retail tenants. It also includes a 400-unit Class A apartment community, known as The Haldeman; a 35,000 square foot medical office building leased by Physicians Regional Medical Healthcare; and StorQuest a 110,000 square foot self-storage facility. 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. Paradise Coast Sports Complex, is Collier County’s new $100 million Amateur Sports Complex. The county hopes to become a destination for traveling youth sports teams and amateur athletes. While the focus of the complex is athletics, with 20 fields between soccer, baseball and softball, plus a 10,000-person championship stadium, the goal is to get people to stay after the game is over with The Cove and The Factory. The Cove is a bar and food truck area for patrons to relax, listen to live music and play a variety of yard games (bag toss, oversized Connect Four and Jenga, plus ping pong). The Factory is an outdoor workout facility focusing on functional fitness (similar to CrossFit) which is available on a monthly membership basis. Additionally, the man-made lake next to The Cove includes a 2/3 mile jogging loop with three workout stations. There is a climbing wall for public use and a beach volleyball court. Collier County Commissioners approved a $15 million economic development agreement on June 22, 2021 for The Great Wolf Lodge. The Lodge is built on 20 acres of land along City Gate Boulevard North and feature a 100,000 square foot indoor water park, 500- room hotel, and 62,000 square feet of amenities and attractions. The resort opened in September 2024 and has 600 full-time and part-time employees. Work is underway for Collier County’s first Diverging Diamond Interchange (DDI) at Pine Ridge Road and I-75. A second DDI will be installed at the Immokalee Road interchange along with the proposed widening of Interstate 75. Phase I of the widening project (from Immokalee Road to the Lee County line) is projected to commence in 2027. Phase II (from the Lee County line to just south of Bonita Beach Road up to Corkscrew Road) is projected to commence in 2029. Phase III (from Pine Ridge Road north to Page 1307 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 19 Immokalee Road) is projected to commence in 2030 and Phase IV (from Golden Gate Parkway north to Pine Ridge Road) is projected to commence in 2031. Investment Trends The following CoStar data shows Collier County trends in the Multi-Family, Retail, Office, and Industrial sectors as of the third quarter 2025. According to the CoStar report, multifamily investors have been active in the Collier County, with $194 million in total sales volume over the trailing 12-month period. Two transactions make up over 60% of the market's investment activity. In December 2024, Ohio-based PLK Communities purchased the 286-Mark Lane Apartments for $82 million, or $285,000 per unit. The 2022-built 4 Star complex was 80% at the time of sale with a monthly average rent of $2,800. More recently, Maryland- based Excelsa acquired the 216-unit, 3 Star Oasis at Naples for $40.9 million, roughly $190,000 per unit. The buyer has announced plans to invest $7 million in capital improvements for the 1992-built property. Multifamily fundamentals have waned here over the past few years, with vacancies rising and rents declining for two years. While some deals will come to fruition, widespread transaction activity is unlikely until material improvements to market fundamentals occur. Page 1308 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 20 According to the CoStar Report, retail investment activity has been consistent over the past year, with the market recording $212 million in total sales volume. Current levels are down from the impressive run seen between 2021 and 2023, when the market averaged around $400 million in annual sales volume. The bulk of transactions over the past year have been on the smaller side here, with an average sale price of $3.9 million. The Collier County market opened 2025 with a larger transaction. Colorado-based M Development purchased a nearly 20,000-SF building on 5th Avenue in Downtown Naples for $29.5 million, roughly $1,500/SF. The buyer and its affiliates have bought several buildings in Downtown Naples over the past few years, including a 28-property $263 million deal in October 2023. Page 1309 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 21 A more typical market trade would be the $3.1 million acquisition of a free-standing restaurant along Bellaire Bay Drive in March 2025. The 5,500-SF building was 100% leased at the time of sale and traded for $560/SF after being on the market for 60 days. According to the CoStar Report, office investment activity has remained muted over the course of 2025, with very few transactions closing for more than $3 million. In the past 12 months in Collier County, sales volume has tallied $60.3 million which represented 230,000 SF of inventory, and it compares to the five year average of $104 million. The cyclical peak for quarterly sales volume was $118 million during 23Q4, and the last completed quarter totaled $8.4 million. Sale transactional pricing, which fluctuates based on the mix of assets sold over the trailing year, has averaged $360/SF in the past 12 months versus the five-year average of Page 1310 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 22 $280/SF. Conversely, market pricing, which estimates the value of all office assets in Collier County based on completed sales, measures $240/SF. That compares to the five- year average of $230/SF. Office transactions are typically on the smaller side here, averaging just $1.5 million. However, on a per SF basis, Collier County is one of the most expensive office markets to purchase buildings in Florida. At $360/SF on a transactional basis, office buildings trade here much higher than the national average of $196/SF. For example, the Halex Corporation purchased the building it was leasing along Galleria Court for $3.1 million, or $350/SF. According to the CoStar report, industrial investment activity has been relatively muted over the past few quarters after a multi-year run of historic sales volumes. Page 1311 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 23 Over the past year, the market has recorded $71.6 million in total sales volume, well below the 5-year average of $113 million. Pricing has remained more or less the same over the past several years, averaging around $174/SF, as of the third quarter of 2025. Sales are typically on the smaller side here, with an average sale price of just under $2.5 million. This market is not reliant on institutional investors, and as such, future investment volumes should be in line with current volumes. The largest sale to date was a user sale for $6.67 million, roughly $323/SF. Spazio Marble purchased a 20,650-SF building along Trade Center Way in January with plans to occupy the building. Page 1312 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 24 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 $151,444 and a per capita income of $65,894. Conclusion 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. Prior to the coronavirus pandemic, the residential market had stabilized after several years of an expansion period, with sustained growth in demand and increasing construction. Since the coronavirus pandemic, residential demand increased significantly with record sales in 2020 and continued high demand but limited inventory in 2021 and 2022. Inventory increased in 2023 and 2024 as demand declined due to continued increases in interest rates. Pricing has generally stabilized and is projected to remain fairly stable through 2025. According to the Naples Area Board of Realtors (NABOR), there was a record $18.2 billion in sales in Collier County during 2020. Demand eclipsed all expectations in 2021 with a 25.8% increase in overall sales in 2021 and a 20.3% increase in median closed price (year over year). The May 2025 Naples Area Board of Realtors Market Report, “2,023 properties on the market in May reported a list price decrease, 31% of the overall inventory. The number of homes for sale increased 23.9% to 6,524 properties from 5,265 properties in May 2024. But economic uncertainty is creating challenges for today’s buyer and seller, even in paradise.” The median closed price was down 9.1% from $649,000 in May 2024 to $590,000 in May 2025. Generally, the commercial market lags the residential market. The significant residential demand since the pandemic has generally stabilized the commercial market overall with an increased demand for the industrial sector and select retail and office properties. Page 1313 of 6526 3910 BUILDING COLLIER COUNTY AREA ANALYSIS Page 25 The recent 50 basis point decrease and subsequent 25 basis point decrease in the federal funds rate, as well as the projected future decreases through 2025, are expected to further stabilize the commercial market and potentially increase demand for both residential and commercial property. However, multiple sources including J.P. Morgan Reseach and Goldman Sachs have increased the likelihood of a recession due to heighted trade policy uncertainty. Finally, it is noted that Hurricane Ian, a Category 4 storm, made landfall in Southwest Florida on September 28, 2022, and caused widespread wind and storm surge damage. The analyses and value opinion(s) in this appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated. No analyses or opinions contained in this appraisal should be construed as predictions of future market conditions or value(s). Collier County Area Map Subject Page 1314 of 6526 3910 BUILDING MARKET AREA ANALYSIS Page 26 MARKET AREA ANALYSIS Market Overview The Collier County industrial market has approximately 14,439,579 square feet of industrial space in 1,073 buildings. The Naples area has five predominate industrial areas where the majority of the industrial development is concentrated. In addition to these five areas there are scattered pockets throughout the Naples area with industrial space. The five main areas are as follows: ▪ Naples Production Park ▪ Collier Park of Commerce ▪ J&C/Trade Center Industrial Park ▪ Rail Head Industrial Area ▪ White Lake/Tollgate Industrial Area Naples Production Park The subject is located in the Naples Production Park which is defined by Golden Gate Canal to the north, Livingston Road to the east, Radio Road to the south, and Airport - Pulling Road to the west. Naples Production Park, consists of approximately 650 acres and is 95% built out with a variety of light industrial and commercial uses. In addition there is some scattered industrial development along the south side of Radio Road. The Naples Production Park Area is located in the Central Naples Planning Community and the CoStar defined submarket of East Naples. According to CoStar, the park has approximately 4,528,340 square feet of industrial space in 339 buildings. In 2024 there was approximately $65 million in property sales with an average sale price of $3,251,250 or $290 per square foot. Access and Linkages Primary access to the market area is provided by any of four major arterial roadways within Collier County; Airport-Pulling Road, Livingston Road, Golden Gate Parkway, and Radio Road. Airport-Pulling Road runs in a north/south direction and is a six-lane divided highway from US-41 north to Immokalee Road. Livingston Road runs in a north/south direction and is a six lane divided highway from Radio Road north to the Lee County border where it becomes Imperial Highway. Radio Road runs in an east/west direction and is a four- lane divided highway extending from Davis Boulevard in the east and coming to an end at the entrance of the Naples Municipal Airport at Airport-Pulling Road. A mix of residential and commercial uses is typical along Radio Road. Golden Gate Parkway runs in an east/west direction and is a six-lane divided highway extending from Collier Page 1315 of 6526 3910 BUILDING MARKET AREA ANALYSIS Page 27 Boulevard in Golden Gate City east to US 41 in the City of Naples. Golden Gate Parkway provides the closest access to Interstate 75. The Southwest Florida International Airport (RSW) is located about 30 miles from the market area; travel time is about 45 minutes to an hour, depending on traffic conditions. The Naples Municipal Airport (APF) is located on the west side of Airport-Pulling Road, just across from Naples Production Park. The Naples CBD, the economic and cultural center of the region, is approximately 3 miles from the market area. Many businesses find the location of the industrial park convenient due to its location relative to Golden Gate Boulevard, Airport Road, Tamiami Trail and Interstate 75. This allows ease of access to several major arterial roadways which connect parts of Naples as well as Collier and Lee counties. Demographics The following table shows the historical, current and projected population, households, housing, and income demographics for the immediate market area defined as a 2 mile radius from the subject. The table was developed using data from STDBOnline.com. Demand Generators v. Supply Demand in the area has historically come primarily from the building industry in the development of residential and commercial properties. Prior to the coronavirus pandemic, Page 1316 of 6526 3910 BUILDING MARKET AREA ANALYSIS Page 28 the residential market had stabilized after several years of an expansion period, with sustained growth in demand and increasing construction. Since the coronavirus pandemic, residential demand increased significantly with record sales in 2020 and continued high demand but limited inventory in 2021 and 2022. Inventory increased in 2023 and 2024 as demand declined due to increases in interest rates. The recent 50 basis point decrease and subsequent 25 basis point decreases in the federal funds rate, as well as the projected future decreases through 2025, are expected to further stabilize the commercial market and potentially increase demand for both residential and commercial property. However, multiple sources including J.P. Morgan Reseach and Goldman Sachs have increased the likelihood of a recession due to heighted trade policy uncertainty. Outlook and Conclusions As with Collier County, the long term economic outlook for the market area is positive. Total population is projected to increase slightly over the next five years and begin a more normalized pattern thereafter. More importantly, the area is projected to experience increasing employment growth. Prior to the coronavirus pandemic, the residential market had stabilized after several years of an expansion period, with sustained growth in demand and increasing construction. Since the coronavirus pandemic, residential demand increased significantly with record sales in 2020 and continued high demand but limited inventory in 2021 and 2022. Inventory increased in 2023 and 2024 as demand declined due to continued increases in interest rates. Pricing has generally stabilized and is projected to remain fairly stable through 2025. The recent 50 basis point decrease and subsequent 25 basis point decreases in the federal funds rate, as well as the projected future decreases through 2025, are expected to further stabilize the commercial market and potentially increase demand for both residential and commercial property. However, multiple sources including J.P. Morgan Reseach and Goldman Sachs have increased the likelihood of a recession due to heighted trade policy uncertainty. Page 1317 of 6526 3910 BUILDING MARKET AREA ANALYSIS Page 29 Market Area Map Page 1318 of 6526 3910 BUILDING INDUSTRIAL MARKET ANALYSIS Page 30 INDUSTRIAL MARKET ANALYSIS The following table developed from CoStar summarizes the overall industrial market statistics as of the third quarter 2025 for the Collier County Industrial Market. As shown, current rental rents are $17.96 per square foot net and have increased 3.0% over the past twelve months. Vacancy rates are currently only 3.7%. 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. The subject consists of Flex space. According to the CoStar industrial report, the industrial vacancy is low but has risen over the past year. Collier County has one of the lowest industrial vacancy rates in Florida at just 3.7% as of the third quarter of 2025. However, the market has been mostly stagnant over the past year, with minimal leasing activity and absorption. Outside of Uline's completion and move-in to its 940,000 facility, not much has happened in the industrial market over the past three years. Like many areas in Florida, it saw a pop in activity in 2021 as in- migration fueled housing and, in turn, industrial demand. New construction is extremely limited in Collier County. It's been well over a year since a new project was delivered, and less than 25,000 SF is under construction. The most prominent building under development is just 17,400 SF along Tollhouse Drive. It is predominately small-bay availabilities ranging from 2,500 to 3,500 SF with an asking rate of $24.00/SF. Page 1319 of 6526 3910 BUILDING INDUSTRIAL MARKET ANALYSIS Page 31 Collier County is one of the most expensive industrial markets in Florida, with an average asking rent of $18.00/SF. Limited availability in the market, only 650,000 SF, has emboldened landlords to continue to push rates here up 3.0% from this time last year. Rent growth has cooled here, much like other parts of the country, and is down from a peak of more than 10% in mid-2022. However, Collier County should continue to outpace the national average through at least the end of 2025. Rental rates are projected to continue to increase at approximately 4-5% per year through 2029. Page 1320 of 6526 3910 BUILDING INDUSTRIAL MARKET ANALYSIS Page 32 East Naples Industrial Submarket The subject is located within the CoStar defined East Naples Industrial Submarket. The following table summarizes the net asking rents in each of the Collier County industrial submarkets. As shown, the Marco Island submarket has the highest net asking rent followed by the city of Naples submarket. The following graph shows average rental rates and occupancy levels for each submarket. The size of the bubble relates to the size (SF) of the submarket. As shown, the East Naples submarket is the largest submarket followed by the North Naples submarket. As previously mentioned, the Marco Island and city of Naples submarkets have the highest average rental rates. All submarkets have high occupancy rates at approximately 95% and higher. The following graph shows market rent and occupancy growth for each submarket over the past year. As shown, the Lely, Naples, North Naples and Golden Gate submarkets had the highest rent growth at 3.1%-3.2%. North Naples, Outlying Collier County, Marco Island, and East Naples all had decreases in occupancy. The East Naples submarket had the lowest rent growth at 2.8% with a 3.3% decrease in occupancy. Page 1321 of 6526 3910 BUILDING INDUSTRIAL MARKET ANALYSIS Page 33 VACANCY AND RENTAL RATE TRENDS The following graph shows vacancy and rental rates for all classes of flex space within a two mile radius of the subject. The data developed from CoStar includes a survey of 5,577,309 square feet of rentable area. As shown, rental rates have increased significantly over the past three years. The current average rental rate is $18.77/sf net. Vacancy rates have increased since late 2024 and are currently 5.6%. Page 1322 of 6526 3910 BUILDING SITE ANALYSIS Page 34 PROPERTY DESCRIPTION AND ANALYSIS SITE ANALYSIS The following description is based on our property inspection and public records. The northern approximately 30 feet of the lot is encumbered by Domestic Avenue right of way. The usable area is approximately 37,052 square feet or 0.85 acres. SITE Location: The subject is located along the south side of Domestic Avenue in the Naples Production Park. Current Use of the Property: Improved as a two-story industrial building. Shape: The site is roughly rectangular. Road Frontage/Access: The subject property has average access with frontage as follows: • Domestic Avenue: 118 feet The site has an average depth of 344 feet. It is not a corner lot. Visibility: Average 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: Municipal sewer Water: Municipal 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 no street lighting along Domestic Avenue. • Sidewalks: There are no sidewalks along Domestic Avenue. • Curbs and Gutters: There are no curbs and gutters along Domestic Avenue. • Curb Cuts: The subject has one curb cut along Domestic Avenue. • 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 X, which is not classified as a flood hazard area. FEMA Map Number: 12021C 0392J Land Summary Parcel ID Gross Land Area (Acres) Gross Land Area (Sq Ft) Usable Land Area (Acres) Usable Land Area (Sq Ft) 00282090906 0.93 40,592 0.85 37,052 Page 1323 of 6526 3910 BUILDING SITE ANALYSIS Page 35 FEMA Map Date: February 8, 2024 The subject is not 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: The northern approximately 30 feet of the lot is encumbered by the Domestic Avenue right-of-way. The usable area is approximately 37,052 square feet or 0.85 acres. 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 I Zoning Authority Collier County Zoning Description Industrial District Permitted Uses Agricultural services; automotive repair; service and parking; barber shops; building construction; crematories; eating places; fabricated metal products; general aviation airport; heavy construction; laundry; outdoor storage yards; welding repair, and wholesale trade; et al. Actual Density of Use 0.34 Current Use Legally Conforming The subject is legal and conforming use. Zoning Change Likely A zoning change is unlikely. Minimum Lot Area (SF) 20,000 Minimum Floor Area (SF) 1,000 Minimum Street Frontage (Feet) 100 Front Set Back Distance (Feet) 25 Rear Set Back Distance (Feet) Non-residential 15; Residential: 50; Waterfront: 25 Side Yard Distance (Feet) The total of all side yard setbacks shall equal 20% of the lot width, with a maximum of 50 feet. No side yard shall be less than 10 feet. Residential: 50; Waterfront: 25 Parking Requirement Warehouse, wholesale establishment: 1 per 1,000 square feet except for sales/office areas which are 1 per 275 square feet. Maximum Density/FAR 40% Maximum Building Height (Feet) 50 Zoning Comments We were not supplied with a survey indicating building setbacks and have assumed that the improvements conform to current building codes. Future Land Use Designation Industrial District Page 1324 of 6526 3910 BUILDING SITE ANALYSIS Page 36 Zoning Map Page 1325 of 6526 3910 BUILDING SITE ANALYSIS Page 37 Aerial Page 1326 of 6526 3910 BUILDING SITE ANALYSIS Page 38 Flood Map Subject Page 1327 of 6526 3910 BUILDING SITE ANALYSIS Page 39 Site Photographs Domestic Avenue – Easterly (Photo Taken on August 1, 2025) Domestic Avenue – Westerly (Photo Taken on August 1, 2025) Page 1328 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 40 IMPROVEMENTS ANALYSIS The subject is an existing industrial property containing 12,550 square feet of rentable area. The improvements were constructed in 2002 and are 100.0% occupied as of the effective date of the appraisal. The site consists of 0.93 acres, or 40,592 square feet. The northern approximately 30 feet of the lot is encumbered by the Domestic Avenue right- of-way. The usable area is approximately 37,052 square feet or 0.85 acres. IMPROVEMENTS DESCRIPTION Property Type: Industrial Property Sub Type: Flex Occupancy Type: Multi-tenant GENERAL Building Description: Flex Construction Class: Class C Construction Quality: Average Appeal/Appearance: Average Year Built: 2002 Renovations: 2019 - 2021 Actual Age (Yrs.): 23 Effective Age (Yrs.): 8 MVS Expected Life (Yrs.): 45 Remaining Useful Life (Yrs): 37 Condition: Average Number of Buildings: One Ratios: Site Area (SF) - Usable: 37,052 Floor Area Ratio (FAR): 0.34; (Based on the usable site area) Land to Building Ratio: 2.95 to 1; (Based on the usable site area) FOUNDATION, FRAME & EXTERIOR Foundation: Poured concrete slab Structural Frame: Concrete Block Exterior: Painted Stucco Windows: Fixed Casement Service Access/ Overhead Doors: The building is served by five (5) overhead doors (12' x 14'). Three (3) of the overhead doors are fully insulated with brush seals. None with levelers. Roof/Cover: Hip / Metal Building Name/ID Year Built Condition Number of Stories Gross Building Area Rentable Area Number of Units 3910 Building 2002 Average Two 12,550 12,550 6 Notes: The following description is based on our property inspection and public records. The square footage reported herein is based on public records which were verified by onsite measurements. Building Summary Page 1329 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 41 INTERIOR Interior Layout: The building has two-floors of office space and five (5) rear warehouse bays. The owner occupies the office space and four (4) warehouse bays. The remaining warehouse bay is rented on a month to month basis. The first floor office space consists of two showroom/display areas with two exterior storefront doors. The two display areas are connected by an interior doorway. An internal stairway is located on each side of the building providing access to the second floor office space. Three of the five warehouse bays are air-conditioned and insulated with spray foam and an insulated overhead door with brush seal. Percent Office Space: 25% Floor Cover: Ceramic tile and luxury vinyl plank in office/showroom. Polished concrete in warehouse. Walls: Painted drywall in showroom/office space. Unfinished concrete block in warehouse. Ceilings & Ceiling Height: Painted drywall in showroom/office space. Exposed wood trusses in warehouse. / 8' in office; 19-27' in warehouse. Lighting: A mix of fluorescent, LED and incandescent lighting. Restrooms: Two restrooms with lavatory and commode in first floor retail/showroom space. One restroom with lavatory, commode, and shower in second floor office space. Two common restrooms with lavatory and commode for warehouse space. MECHANICAL SYSTEMS HVAC: Package Units Electrical: 220 Plumbing Condition: Average Sprinkler: None Elevators: None Security: Private Reported improvements to the property since purchase in July 2019 include: new gutters, new exterior stucco and paint, three (3) new insulated overhead doors and two (2) new uninsulated overhead doors, new LED lighting in three (3) warehouse bays and portion of office/showroom, foam spray insulation in three (3) warehouse bays, air-conditioning for one (1) warehouse bay, two (2) new air-conditioning units for showroom, interior paint in showroom/offices, shelving for showroom space, new flooring in office, renovated second floor restroom, new warehouse entry doors, updated electrical for two warehouses, internal hard wiring for phone/computers, new exterior signage, hot water heater, new pavers at building entrance, and security cameras. Page 1330 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 42 PARKING AND LANDSCAPING Parking: Type: Paved open surface parking Number of Spaces: 20 Condition: Average Parking Ratio: 628 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 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. Occupancy Status The property is 100.0% occupied by the seller and one tenant, occupying a 1,890± square foot warehouse bay, on a month-to-month lease. 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 There are no items of personal property that would be significant to the overall valuation. Improvement Analysis Conclusion The quality, maintenance, and overall appeal of the subject are considered to be consistent with that of competing properties. Page 1331 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 43 Improvements Plan – First Floor Page 1332 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 44 Collier County Property Appraiser Building Sketch Page 1333 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 45 Improvement Photographs Northern Elevation (Photo Taken on August 1, 2025) Western Elevation (Photo Taken on August 1, 2025) Page 1334 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 46 Improvement Photographs Western Elevation (Photo Taken on August 1, 2025) Southern Elevation (Photo Taken on August 1, 2025) Page 1335 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 47 Improvement Photographs Eastern Elevation (Photo Taken on August 1, 2025) Eastern Elevation (Photo Taken on August 1, 2025) Page 1336 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 48 Improvement Photographs Display Area (Photo Taken on August 1, 2025) Display Area (Photo Taken on August 1, 2025) Page 1337 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 49 Improvement Photographs Display Area (Photo Taken on August 1, 2025) Typical Restroom in Office/Display Area (Photo Taken on August 1, 2025) Page 1338 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 50 Improvement Photographs Second Floor Office (Photo Taken on August 1, 2025) Second Floor Office (Photo Taken on August 1, 2025) Page 1339 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 51 Improvement Photographs Second Floor Restroom with Shower (Photo Taken on August 1, 2025) Shower (Photo Taken on August 1, 2025) Page 1340 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 52 Improvement Photographs Stairwell (Photo Taken on August 1, 2025) Air-Conditioned Warehouse (Photo Taken on August 1, 2025) Page 1341 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 53 Improvement Photographs Air-Conditioned Warehouse (Photo Taken on August 1, 2025) Un Air-Conditioned Warehouse (Photo Taken on August 1, 2025) Page 1342 of 6526 3910 BUILDING IMPROVEMENTS ANALYSIS Page 54 Improvement Photographs Warehouse Restroom (Photo Taken on August 1, 2025) Warehouse Restroom (Photo Taken on August 1, 2025) Page 1343 of 6526 3910 BUILDING REAL ESTATE TAXES AND ASSESSMENTS Page 55 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 2025 Preliminary are as follows: ASSESSED VALUES Tax Identification Number 00282090906 Land Assessed Value $1,304,511 Building Assessed Value $1,598,276 10% Assessment Cap -$878,407 Total Assessed Value $2,024,380 Totals Total Land Assessed Value $1,304,511 Total Building Assessed Value $1,598,276 10% Assessment Cap -$878,407 Total Assessment $2,024,380 Total Assessment per GLA $161.31 Total Assessment per Land Acre $2,172,398 Rates, Taxes, More Tax Rate 1.25% Ad Valorem Tax Amount $25,208 Special Assessment Amount $0 Special Assessment Comments None Total Tax Liability $25,208 Property Tax Comments The 2023 and 2024 taxes have been paid. The School Board millage is applied to the uncapped assessed value. The millage rate shown is the rate assuming the proposed budget is adopted. The tax assessment for subject property is currently $161.31 per square foot, or $231.30 per square foot excluding the assessment cap. Based on our valuation analysis, the subject’s assessment appears low, but reasonable. Page 1344 of 6526 3910 BUILDING REAL ESTATE TAXES AND ASSESSMENTS Page 56 The following table shows comparable assessed values and assessment ratios. As shown, the comparables have assessment ratios ranging from 70% to 84% with an average of 78%. Subsequent to a sale, the assessed value will probably increase to reflect more market assessed values. Based on the preceding analysis and estimated market value, an assessment of $3,664,000, or $291.95 per square foot, is projected. Taxes would increase to at least $38,869 annually using the 2025 Preliminary millage rate and special assessments. Tax Assessment Comparables Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Address 3910 Domestic Avenue 1958 Trade Center Way 1990 Seward Ave 4344 Arnold Avenue 3600 Westview Dr 3527 Plover Avenue Price $4,580,000 $6,665,000 $3,720,000 $1,900,000 $7,500,000 $3,877,800 Date 8/1/2025 1/15/2025 3/7/2024 6/6/2025 4/15/2024 3/4/2024 Rentable Area 12,550 21,086 10,100 6,400 18,597 11,240 Assessed Value $2,902,787 $4,682,732 $2,933,704 $1,574,843 $5,757,748 $3,242,914 Assessed Value/SF $231.30 $222.08 $290.47 $246.07 $309.61 $288.52 Assessment Ratio 63%70%79%83%77%84% Notes: Page 1345 of 6526 3910 BUILDING HIGHEST AND BEST USE Page 57 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 subject site is 0.93 acres or 40,592 square feet with 118 feet of frontage along Domestic Avenue. The northern approximately 30 feet of the lot is encumbered by the Domestic Avenue right-of-way. The usable area is approximately 37,052 square feet or 0.85 acres. 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 X area per FEMA Flood Map Number: 12021C 0392J, dated February 8, 2024, which is not 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 Industrial District (I), which allows manufacturing, processing, storage and warehousing, wholesaling, and distribution. Permitted uses include: Agricultural services; automotive repair; service and parking; barber shops; building construction; crematories; eating places; fabricated metal products; general aviation airport; heavy construction; laundry; outdoor storage yards; welding repair, and wholesale trade; et al. Recognizing the principle of conformity, we consider the prevailing land use patterns in the area. Therefore, only industrial uses are given further consideration in determining the highest and best use of the site, as if vacant. 1 The Dictionary of Real Estate Appraisal 7th ed. (Chicago: Appraisal Institute, 2022) Page 1346 of 6526 3910 BUILDING HIGHEST AND BEST USE Page 58 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. 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. Prior to the coronavirus pandemic, the residential market had stabilized after several years of an expansion period, with sustained growth in demand and increasing construction. Since the coronavirus pandemic, residential demand increased significantly with record sales in 2020 and continued high demand but limited inventory in 2021 and 2022. Inventory increased in 2023 and 2024 as demand declined due to continued increases in interest rates. Pricing has generally stabilized and is projected to remain fairly stable through 2025. The recent 50 basis point decrease and subsequent 25 basis point decreases in the federal funds rate, as well as the projected future decreases through 2025, are expected to further stabilize the commercial market and potentially increase demand for both residential and commercial property. However, multiple sources including J.P. Morgan Reseach and Goldman Sachs have increased the likelihood of a recession due to heighted trade policy uncertainty. On this basis, barring unforeseen changes in the market, a well-designed industrial product that is appropriately marketed and priced, should be received favorably by the market. Maximally Productive The maximally productive land use yields the highest value of the possible uses. Industrial development is the only use that meets the tests of physically possible, legally permissible, and financially feasible. Therefore, industrial development 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. 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. Most Probable Buyer Considering the size, class, and location of the property, the most probable buyer is an owner-user or partial owner-user such as an individual or partnership. Page 1347 of 6526 3910 BUILDING VALUATION METHODOLOGY Page 59 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 1348 of 6526 3910 BUILDING VALUATION METHODOLOGY Page 60 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 1349 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 61 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 I 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 1350 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 62 Comp Address Price Price Per SF Year Built Comp City Date Rentable Area Construction Subject 3910 Domestic Avenue 2002 Subject Naples 8/1/2025 12,550 Class C 1 1958 Trade Center Way $6,665,000 $316.09 1995 1 Naples 1/15/2025 21,086 Concrete Block and Heavy Steel 2 1990 Seward Ave $3,720,000 $368.32 1990 2 Naples 3/7/2024 10,100 Concrete Block & Metal 3 4344 Arnold Avenue $1,900,000 $296.88 1993 3 Naples 6/6/2025 6,400 Heavy Steel 4 3600 Westview Dr $7,500,000 $403.29 2004 4 Naples 4/15/2024 18,597 Steel with insulated concrete block 5 3527 Plover Avenue $3,877,800 $345.00 2003 5 Naples 3/4/2024 11,240 Heavy Steel Sale Comments The building has a total of 2,923/sf (26%) office area; 4,300/sf of warehouse/showroom; and 4,017/sf of warehouse with 2 OH doors. The building is fully air conditioned and sprinklered. The property was previously purchased on 11/3/2023 by a local investor/developer for $2,202,023. Listing and buyer agent, David Bartley, reported the recent transaction was a straight flip to an end user. Warehouse has 23' ceiling height. Income and expense data is proforma by the appraiser. Industrial flex building with 1,200 SF of office space (19%) and 5,200 SF of warehouse space. There is mezzanine storage above the office that is not included in the gross leasable area. The warehouse has a 17' clear height at the front of the building and 12'6" at the back of the building. It is serviced with a truckwell and 10'x12' overhead door as well as a grade-level 14'x12' overhead door and 600-amp single-phase electric. Property was listed for $2,250,000. David Wallace of CRE Consultants represented both the buyer and seller and said the buyer provided a quick cash closing after a 30-day due diligence period which was a positive for the seller. Sale was contingent on the seller closing on 4176 Mercantile Ave (replacement property). Purchased for owner occupancy by Naples Motorsports. Income/expenses are pro-forma based on market. Two-unit building. The seller (high-end car dealer) leased back 8,797 SF and the remaining 9,800 SF was vacant. The building consists of approximately 4,839/sf (26%) office area and the remaining is air conditioned warehouse (100% A/C) with 20-22' clear height. Epoxy floors in warehouse. Fire sprinklers throughout entire building. Loading dock (1,549/sf) has been filled in and is a concrete loading pad. Three exterior overhead doors and one glass roll-up door between warehouse and office. Building was configured for two-tenants. Buyer reported they were drawn to the property due to its location and paid a premium for it. 1031 Exchange cash purchase. There is a 33' wide drainage easement along the western border and a 59' wide drainage easement along the southern border. Excluding the drainage easement, the usable area is approximately 0.88 acres or 38,117 square feet. Income/expenses based on contract/market. As of September 2024 the building is 100% occupied by owner related companies including Icon Rocklear Detailing. Two-story 6,800 SF concrete block office building (67%) with attached rear metal 3,300 SF warehouse with approximately 14' high ceilings located at the southeast corner of Seward Ave and Kathleen Court. Usable site area (excluding Kathleen Court ROW) is 1.78 acres. Purchased by the tenant for owner occupancy. Income/expenses are pro-forma based on market. Two-story showroom/warehouse building with approximately 7,757± SF of showroom/office space (37%); 1,769± SF of unfinished mezzanine space; and 11,560± SF of air-conditioned warehouse space. The property was listed for lease by Jeff Buckler of Lee & Associates for $23.00/SF triple net. According to Mr. Buckler the buyers presented an unsolicited offer to purchase the property. Buyer will occupy after tenant vacates on May 31, 2025. The contract lease is below market with an approximate rent loss of $90,000 through the remaining lease term. Income/expenses are pro-forma based on market. There is a 30' Drainage and Utility Easement along the southern border of the site. The usable area excluding the easement is 44,800 square feet or 1.03 acres. Page 1351 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 63 Comparables Map Page 1352 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 64 Analysis Grid The above sales have been analyzed and compared with the subject property. I 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 1353 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 65 Name Address City Date Price Price Adjustment Adjusted Price Rentable Area Rentable Area Unit Price Property Rights Leased Fee 0.0%Fee Simple 0.0%Fee Simple 0.0%Leased Fee 0.0%Fee Simple 0.0% Financing Conventional 0.0%Conventional 0.0%Cash 5.0%Cash to seller 0.0%Conventional 0.0% Conditions of Sale Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's Length 0.0%Arm's length 0.0% Market Trends Through 8/1/2025 0.0% Location % Adjustment $ Adjustment Rentable Area % Adjustment $ Adjustment Year Built % Adjustment $ Adjustment % Office/% AC Area 25%70%37%100%67%67%19%19%26%100%26%100% % Adjustment $ Adjustment Land to Building Ratio % Adjustment $ Adjustment Net Adjustments Gross Rockstar Pools Comp 5 Naples Motorsports Comp 3 Omni Construction Comp 1 Comp 2 $0.00 0.0% 2004 0% $0.00 2.95 to 1 $15.59 $0.00 -5% 2.37 $0.00 $0.00 $18.42 5% 10.0%0.0% $327.30 0%-15% 3.407.68 0% $0.00 $0.00 Similar $0.00 0.0% 3.63 $0.00$0.00 5% $17.25 $345.00 Inferior 0.0% Similar Similar $403.29 $403.29 $368.32 $311.72 $311.72 $320.35 0% 0% 0% 18,597 0% 11,240 $0.00 0% 2003 $0.00 0% $0.00 0% $0.00 0% $15.59 -$55.25 -$18.42 $0.00 0% 0.0% $345.00 $403.29 0.0%0.0% $0 $1,900,000 $345.00 11,240 $296.88 18,597 Naples 3/4/2024 6,400 $3,877,800 4344 Arnold Avenue 1990 Seward Ave $6,755,000 Former Meals of Hope Building $0 Naples Naples $320.35 $368.32 $368.32$320.35 Transaction Adjustments $1,900,000 Naples $3,720,000 6/6/2025 $7,500,000 3/7/2024 3600 Westview Dr 3910 Building Analysis Grid 1958 Trade Center Way NaplesNaples Spazio Marble and Granite 3910 Domestic Avenue Comp 4 $0 1/15/2025 Average 12,550 21,086 10,100 6,400 0% Adjusted Rentable Area Unit Price 0%0% Similar $0.00 Adjusted Rentable Area Unit Price Fee Simple 10%0%-5% 1993 $0.00 -$15.59 0% 2002 $32.04 1995 5% 1990 5% 10.0% $352.39 25.0% -15.0% Adjusted Rentable Area Unit Price $313.07 15.0% 5.0% $403.29 $362.25 5.0% 5.0% 3.80 3527 Plover Avenue $3,877,800 4/15/2024 $0 $3,720,000 $0 8/1/2025 $7,500,000$0 $90,000 $6,665,000 12,550 21,086 10,100 Page 1354 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 66 Comparable Sale Adjustments Property Rights With the exception of Comparable 1, all of the comparables transferred in fee simple or leased fee interest at market rates; therefore, no adjustment for property rights is required. Comparable 1 is adjusted upward, as a Price Adjustment, to account for the below market lease through the remaining lease term. Financing All of the comparable sales had market orientated financing or were cash transactions; therefore, no adjustments for financing are required. The listing agent for Comparable 3 noted the buyer presented a cash offer with a quick closing. It is adjusted upward accordingly. Conditions of Sale All of the comparable sales were arm’s length transactions; therefore, no adjustments for conditions of sale are required. The buyer of Comparable 4 reported they were drawn to the property due to its location and paid a premium. No adjustments are made in the grid; however, this is considered in the final reconciliation. Economic Trends The following graph developed from CoStar shows all industrial sales less than 20,000 square feet, excluding outliers, in Collier County since January 2024. Page 1355 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 67 The survey included 83 transactions. The sales ranged from 741 to 19,432 square feet and averaged 5,598 square feet. Prices per square foot ranged from $126 to $651 per square foot and averaged $322 psf. Cap rates ranged from 4.0% to 10.06% and averaged 5.75%. The graph indicates a slight increasing trend in sales prices from January 2023 through the current date. However, it is noted this is unadjusted raw data and does not relate directly to the subject. Based on the previous analysis, and considering the stabilization of pricing, we have not applied an annual adjustment. Location The following table summarizes the population growth and average household income within a two mile radius and the CoStar industrial market areas statistics within a two mile radius. Page 1356 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 68 The subject and Comparables 3 are both located in the Naples Production Park. Comparable 4 is located just south of the Naples Production Park along Westview Drive. Comparables 1 and 2 are located in the J&C/Trade Center Industrial Park in North Naples. Comparable 5 is located in the White Lake Industrial Park in Outlying Naples with the smallest surrounding population base and lowest income levels. The subject and Comparables 1, 2, and 4 have the largest surrounding population base. Comparables 1 and 2 have the highest surrounding income levels. The subject and Comparables 3 and 4 are located in the largest industrial submarket. Comparables 1 and 2 have the highest surrounding rental rates. Comparable 5 has the lowest rental rates. All markets have stabilized vacancy rates. Comparable 5 is adjusted upward for its inferior location. Comparables 1, 2, 3, and 4 are considered relatively similar in terms of location. 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 comparable 1 is adjusted upward for its larger size while comparable 3 is adjusted downward for its smaller size. Comparables 2, 4, and 5 are relatively similar in terms of size and no adjustments are required. Age/Condition This adjustment reflects differences in age and condition. For this analysis, comparables 2 and 3 are adjusted upward for their older age. Comparable 1 has been updated recently and is relatively similar in terms of condition; therefore, no adjustments are required. Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Address 3910 Domestic Avenue 1958 Trade Center Way 1990 Seward Ave 4344 Arnold Avenue 3600 Westview Dr 3527 Plover Avenue City Naples Naples Naples Naples Naples Naples 2025 Population 20,942 25,254 26,811 19,275 26,420 12,011 2030 Population 22,298 26,305 27,895 19,927 28,565 12,919 % Change 6.48%4.16%4.04%3.38%8.12%7.56% Avg Household Income $149,156 $174,290 $176,665 $159,569 $126,364 $107,685 Total Industrial SF 5,577,309 3,199,158 3,227,754 5,403,639 5,759,609 1,985,024 Average Rental Rates $18.77 $20.20 $20.16 $18.57 $18.80 $14.27 Average Vacancy Rate 5.6%2.1%2.1%5.7%5.6%2.8% Primary Frontage Street Domestic Avenue Trade Center Seward Ave Arnold Ave Westview Plover Ave Source: STDB Online and Department of Transportation Locational Adjustment - Site to Do Business (2 Mile Radius) CoStar Industrial Analysis (2 mile radius) Page 1357 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 69 Comparables 4 and 5 are similar in terms of age and condition; therefore, no adjustments are required. Percent Office /Air Conditioning This adjustment reflects differences in build out or condition of the interior; i.e. percentage of office or AC space. Approximately 25% of the subject building is finished out office area and approximately 60% of the warehouse area is air conditioned for a total of 70% of the building being air conditioned area. Marshall Valuation Service estimates that the cost to finish out office area in a warehouse is $74.50/sf and the cost to air condition a warehouse is $11.00/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 differences in quality of finish out, depreciation or size differentials, etc. This has been taken into consideration in the concluded adjustment. 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 2.95 to 1, based on the usable area, and the comparables are different to various degrees. Because of the shortage of land, the size of the supporting land will have an impact on overall value of an improved property. 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 Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 SF 12,550 21,086 10,100 6,400 18,597 11,240 SF/Office 3,100 7,757 6,800 1,200 4,839 2,923 % Office 25%37%67%19%26%26% % Office Cost of Building Cost 21%29%43%17%22%22% % Difference -7%-21%4%-1%-1% Sale Price $ Adjustment -$23.84 -$78.01 $12.67 -$3.58 -$3.03 % Adjustment Office -7%-21%4%-1%-1% SF/Warehouse 9,450 13,329 3,300 5,200 13,758 8,317 SF/Warehouse AC 5,670 13,329 0 0 13,758 8,317 % of Warehouse AC 60%100%0%0%100%100% % AC Whse Cost of Building Cost 5%7%0%0%9%9% % Difference -1%5%5%-3%-3% Sale Price $ Adjustment -$4.34 $20.09 $16.19 -$12.45 -$10.66 % Adj Whse -1%5%5%-3%-3% Total Indicated Adjustment -9%-16%10%-4%-4% Concluded Adjustment 0%-5%5%0%0% Page 1358 of 6526 3910 BUILDING SALES COMPARISON APPROACH Page 70 Similar to the subject, the land area shown for Comparables 1, 2 and 4 is the usable area net of the large easements. Sales Comparison Approach Conclusion All of the value indications have been considered. Comparables 1, 4, and 5 have the least net and gross adjustments are given most weight in arriving at my final reconciled per square foot value of $365.00. Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale Price $6,665,000 $3,720,000 $1,900,000 $7,500,000 $3,877,800 GBA 12,550 21,086 10,100 6,400 18,597 11,240 Lot size/sf 37,052 44,800 77,537 21,780 37,117 42,689 Land to Bldg Ratio 2.95 2.12 7.68 3.40 2.00 3.80 Land needed to equal subject Land to Bldg Ratio 62,253 29,819 18,895 54,905 33,184 Difference/Land/SF 17,453 -47,718 -2,885 17,788 -9,504 Value of difference $610,864 -$1,670,132 -$100,973 $622,575 -$332,653 % of Sale Price 9%-45%-5%8%-9% Concluded Adjustment 0%-15%0%0%0% 5 % Δ 5.45% 0.00% 1.41%Average:$346.77 Value Ranges & Reconciled Values $403.29 Low:$313.07 $403.29 $351.66 $365.00 12,550 Indicated Value: Reconciled Value/Unit Value: Subject Size: Number of Comparables:Adjusted $296.88 $4,580,750 $4,580,000Reconciled Final Value: High: Unadjusted Page 1359 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 71 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 with one, month-to-month tenant. 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 1360 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 72 Potential Gross Income (PGI) The subject is largely owner occupied with one month-to-month tenant; therefore potential gross income will be based on market rental rates. Lease Structure The predominant lease structure in the market area is net. Occupancy The subject is largely owner occupied with one, month-to-month tenant. Market Rent Market Rent Comparables I have researched five comparables for this analysis. These are documented on the following pages followed by a location map and analysis grid. Comp #Name Year Built City/State Condition Type Size Base Rent/SF 1 4440 Domestic Avenue 2001 1 Naples, FL Average Triple net 5,440 $20.00 2 3927 Exchange 1989 2 Naples, FL Average NNN 7,200 $23.33 3 6203 Janes Lane 1975 3 Naples, FL Average Triple net 7,200 $24.00 4 4085 Arnold Ave 1997 4 Naples, FL Average NNN 6,500 $22.00 5 Taylor Village Unit 5 & 9 2000 5 Naples, FL Average NNN 4,084 $21.00 Comm Lease Comments The building features a secured, gated outdoor storage area, mezzanine, 4 grade-level bay doors, and warehouse restroom. Additionally, the property offers a 1,140 FF office space adjoining the warehouse, featuring four private offices, two restrooms, and a kitchenette. Class S industrial building with 2,400 SF of office (33%) and 4,800 SF of warehouse space. Site is 37,897 SF with approximately 0.25 acres of outside storage available. Building has a center height of 17 feet. 7,200 Sq. Ft. building situated on 0.50± acres of land. Building height/clear height 14’/16’. (8) 10’ W x 12’ H and (2) 8’ W x 8’ W overhead doors. 6,000 Sq. Ft warehouse space and 1,200 Sq. Ft of office buildout. Warehouse a/c at 2,400 Sq. Ft. The property was listed at $25/SF NNN and also for sale at $3,500,000 or $486.11 psf. Landlord responsible for removing a Garmot Paint booth and cleaning the warehouse to broom swept condition. End cap space in 4-unit industrial/flex building. Unit has approximately 960 SF of office space and 5,540 SF of warehouse (no A/C). Warehouse is serviced by four drive-in overhead doors and a truck well. Yard is fenced. Two industrial flex condominium leased by one tenant. Renewal of lease with commencement February 21, 2025. Contract rent is flat through the three year lease term. Unit 5 consists of showroom/warehouse space with 2nd floor private offices. Unit 9 consists of fully air-conditioned workstation with small kitchenette and bath. Units have 16' eave height. Units are listed for sale for $1,559,000 or $382/SF. Tenant has one remaining 3 year option. Page 1361 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 73 Comparables Map Subject Page 1362 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 74 Analysis Grid The above rentals have been analyzed and compared with the subject property. I have considered adjustments in the areas of:  Lease Terms  Conditions of Lease  Other  Economic Trends (time)  Location  Physical Characteristics Following is a rental comparison grid displaying the subject property, the comparables and the adjustments applied. Name Address City Tenant Start Date Base Rent/SF Lease Type Term Size Conditions of Lease Normal 0%Normal 0%Normal 0%Normal 0%Normal 0% Other Similar 0%Similar 0%Similar 0%Similar 0%Similar 0% Market Trends/Year Location % Adjustment $ Adjustment Year Built % Adjustment $ Adjustment Comm 1 SF % Adjustment $ Adjustment % Office/% AC Area % Adjustment $ Adjustment Net Adjustments Gross Adjustments 0.0% $21.00 5.0%10.0%10.0% 10.0% $24.20 0.0% Adjusted Rent $21.00 $26.40$25.23 5.0%10.0% Transaction Adjustments 5% $1.00 25% | 70% $0.00 5,440 0% 21% | 21% $20.00 Naples 2/1/2024 CMR Consruction and Roofing 4440 Domestic Avenue $20.00 8/1/2025 3910 Domestic Avenue Negotiable 5,440 Naples Lease Analysis Grid $23.33 NNN Listing Triple net Comp 2 7,200 3927 Exchange Ave 3927 Exchange 4085 Arnold Ave Comp 3 6203 Janes Lane 4085 Arnold Ave Comp 4 Taylor Village Unit 5 & 9 4/1/202512/1/2024 Naples All Year Cooling Air Cool Inc Debbie's Draperies & Design Studio Comp 5 $22.00 7,200 5% $0.00 Similar 0% 1997 5 years Naples 2/21/2025 $21.00 NNNNNN Naples $22.00 $24.00 0.0% 4,084 3 years 0.0% 6,500 $24.00 $24.00 $0.00 $22.00 $21.00 $22.00 0% $23.33 $24.00 5 years Triple net 5 years $24.03 Similar $0.00 0% $0.00 1975 0% Similar $1.20 5% 1989 $0.00 $24.03 3.0% 5% Similar 2000 0.0% $21.00 $0.00 $0.00 6,500 0% $0.00 $21.00 $0.00 0% 7,200 0% $0.00 0% 4,084 $1.20 $0.00$1.10 0% 7,200 0% 0% 33% | 33%15% | 15%17% | 17% $1.20 $1.10 $0.00$0.00 $0.00 5% 5405 Taylor Road, Unit 5 & 9 6203 Janes Lane Comp 1 4440 Domestic Avenue 0% 2002 2001 Similar Expenses Adjusted Rent $0.00 $20.00 0% Average Adjusted Rent 0.0%0.0% Adjusted Rent $20.00 5.0% 5.0% $0.00 $0.00 $0.00 12,550 30% | 100% 5% 8/1/2025 Naples 3910 Building Page 1363 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 75 Comparable Rent Adjustments Conditions of Lease All of the comparables are recent contract leases and no adjustments for conditions of lease are required. Comparable 1 is an active listing at market rent; therefore, no adjustment for negotiations is required. Economic Trends The comparables are all recent contract leases or active listings; therefore, no adjustments are required. Comparable 2 is adjusted upward for its annual contracted escalation. Expense Structure The comparables all have net lease structures; therefore, no adjustments are required. Location All the comparables are relatively similar in terms of location; therefore, no adjustments are required. Age/Condition For this analysis, comparables 2, 3, and 4 are adjusted upward for their older age. Comparables 1 and 5 are relatively similar in terms of age and condition. Size The subject consists of 12,550 square feet but can be easily leased to multiple tenants with five (5), 1,890± square foot warehouse bays and 3,100 square feet of office space. For this analysis, no adjustments for size are applied. Percent Office /Air Conditioning As in the Sales Comparison Approach, the comparables are all analyzed and adjusted for their differing percentage of office and air-conditioned warehouse space. Market Rent Reconciliation The adjusted comparables range from $21.00 to $26.40 with an average of $23.57 per square foot. Based on the preceding analysis, I have reconciled to a market rent of $23.00, as of August 1, 2025, for the subject space. Market Rent and Terms Reconciliation Market Rent by Space Type Space Type Rent Increases Type Term Industrial $23.00 3% per annum Net 3-5 years Page 1364 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 76 Expense Reimbursements The subject is analyzed on a net basis with projected reimbursements of $6.85 per square foot. Vacancy and Collection Loss Based on a review of market conditions, I have projected vacancy and collection loss at 5.00%. Expenses Expenses Analysis and Projection Real Estate Tax Real Estate Tax expense of $38,869 or $3.10 per square foot is based on the projected tax liability upon reassessment. Insurance Insurance expense of $18,825 or $1.50 per square foot is based on expenses at comparable properties. Utilities Utilities expense of $1,883 or $0.15 per square foot is based on estimated utilities expenses while vacant. Repairs/Maintenance Repairs/Maintenance expense of $12,550 or $1.00 per square foot is based on expenses at comparable properties. General/Administrative General/Administrative expense of $3,138 or $0.25 per square foot is based on expenses at comparable properties. Management Management expense of $10,675 or $0.85 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 are not included in the following analysis. Page 1365 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 77 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. The comparable cap rates range from 4.70% to 6.94% with an average of 6.11%. Comparable Price Date NOI NOI/SF Cap Rate 1 $6,665,000 1/15/2025 $425,972 $20.20 6.39% 2 $3,720,000 3/7/2024 $243,314 $24.09 6.54% 3 $1,900,000 6/6/2025 $131,840 $20.60 6.94% 4 $7,500,000 4/15/2024 $352,386 $18.95 4.70% 5 $3,877,800 3/4/2024 $231,582 $20.60 5.97% Comparable Sale Cap Rates Page 1366 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 78 Survey Data The following table from the RealtyRates Market Survey shows overall capitalization rates for Industrial Flex/R&D space in Florida ranging from 8.0% to 9.2%. The overall average for the regions is 8.8%. Overall capitalization rates for Industrial Warehouse space in Florida ranged from 8.0% to 9.2%. The overall average for the region is 8.4%. The following table from the PwC Real Estate Investor Survey shows overall capitalization rates for East Coast Region Warehouse space ranging from 4.05% to 6.00% with an average of 5.22%. Non-institutional properties (such as the subject) typically have overall cap rates (for the National warehouse market) ranging from 6.00% to 7.00% with an average of 6.50%. Page 1367 of 6526 3910 BUILDING INCOME CAPITALIZATION APPROACH Page 79 As shown, overall cap rates for the East Coast Region warehouse buildings increased by 18 basis points over the past year and by 15 basis points over the past quarter. Surveyed investors project cap rates will either increase or hold steady over the next six months. Capitalization Rate Conclusion Based on the preceding analysis I place greatest reliance on the overall capitalization rates derived from the comparable sales and conclude to an overall capitalization rate of 6.00%. Capitalization to Value Direct Capitalization Analysis Conclusion Based on the preceding analysis detailed above, I have reconciled to a direct capitalization approach value of $4,500,000 as of August 1, 2025. Unit/Space Type Income Method Units/SF Annual % of PGI Industrial $23.00 $/SF/Year 12,550 $288,650 77.1% Expense Reimbursements $6.85 $/SF/Year 12,550 $85,905 22.9% $374,555 100.0% 5.00%$18,728 $0 $355,827 95.0% Expense Amount Annual $/SF Real Estate Tax $38,869 $38,869 $3.10 Insurance $1.50 $18,825 $1.50 Utilities $0.15 $1,883 $0.15 Repairs/Maintenance $1.00 $12,550 $1.00 General/Administrative $0.25 $3,138 $0.25 Management 3%$10,675 $0.85 $85,939 $6.85 24.15% $269,888 $21.51 6.00% $4,498,140 $358.42 $4,500,000 $358.57 Income Capitalization Analysis Potential Gross Income: Vacancy & Collection Loss Other Income: Effective Gross Income (EGI): Method $/Year $/SF $/SF $/SF $/SF % of EGI Total Expenses: Expense Ratio (Expenses/EGI): Net Operating Income (NOI): Capitalization Rate: Value (NOI/Cap Rate): Rounded: Page 1368 of 6526 3910 BUILDING RECONCILIATION Page 80 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 Cost Approach: Not Developed Sales Comparison Approach: $4,580,000 Income Approach: $4,500,000 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 is a largely owner-occupied industrial building. 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. 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 1369 of 6526 3910 BUILDING RECONCILIATION Page 81 Value Conclusion Based on the data and analyses developed in this appraisal, I have reconciled to the following value conclusion(s), as of August 1, 2025, subject to the Limiting Conditions and Assumptions of this appraisal. VALUE CONCLUSIONS Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value, As Is Fee Simple August 1, 2025 $4,580,000 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: None. 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 1370 of 6526 3910 BUILDING CERTIFICATION Page 82 CERTIFICATION I certify that, to the best of my 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 my personal, unbiased professional analyses, opinions and conclusions. 3. I 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. I 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. 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 1371 of 6526 3910 BUILDING CERTIFICATION Page 83 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 has 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 acceptance of this assignment. 16. As of the date of this report, Rachel M. Zucchi, MAI, CCIM has completed the continuing education program for Designated Members of the Appraisal Institute. Rachel M. Zucchi, MAI, CCIM Florida State-Certified General Real Estate Appraiser RZ2984 rzucchi@rklac.com; Phone 239-596-0801 Page 1372 of 6526 3910 BUILDING ASSUMPTIONS AND LIMITING CONDITIONS Page 84 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 1373 of 6526 3910 BUILDING ASSUMPTIONS AND LIMITING CONDITIONS Page 85 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 1374 of 6526 3910 BUILDING ASSUMPTIONS AND LIMITING CONDITIONS Page 86 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 1375 of 6526 3910 BUILDING ASSUMPTIONS AND LIMITING CONDITIONS Page 87 23. The appraisal report and value conclusion for an appraisal assumes the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. The intended use of the appraisal is stated in the General Information section of the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 25. All prospective value estimates presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. Page 1376 of 6526 3910 BUILDING ADDENDA - APPRAISER QUALIFICATIONS ADDENDA Page 1377 of 6526 3910 BUILDING ADDENDUM A - APPRAISER QUALIFICATIONS ADDENDUM A APPRAISER QUALIFICATIONS Page 1378 of 6526 3910 BUILDING ADDENDUM A - APPRAISER QUALIFICATIONS 4500 Executive Drive, Suite 230 Naples, FL 34119-8908 Phone: 239-596-0800 www.rklac.com RKL Appraisal and Consulting, PLC COMPANY PROFILE: RKL Appraisal and Consulting, PLC was founded in 2009 by three designated Members of the Appraisal Institute. It is our mission to maximize our 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 (Retired) 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, government, and property owners. Page 1379 of 6526 3910 BUILDING ADDENDUM A - APPRAISER QUALIFICATIONS PROFESSIONAL QUALIFICATIONS OF Rachel M. Zucchi, MAI, CCIM EXPERIENCE: Partner / Managing Director of RKL Appraisal and Consulting, PLC Naples, FL (2009 – Present) President of D&R Realty Group, Inc. Naples, FL (2009 – Present) Senior Real Estate Analyst, Integra Realty Resources – Southwest Florida Naples, FL (2003 – 2009) Research Associate, Integra Realty Resources – Southwest Florida Naples, FL (2002-2003) PROFESSIONAL ACTIVITIES: Member: President: VP/Secretary/Treasurer: Region X Representative: Board of Directors: Government Relations: Prof. Standards & Guidance: LDAC Attendee: Member: Member: Licensed: Licensed: Appraisal Institute – MAI Certificate Number 451177 Appraisal Institute Florida Gulf Coast Chapter (2020) Appraisal Institute Florida Gulf Coast Chapter (2017 - 2019) Appraisal Institute Florida Gulf Coast Chapter (2017 - 2022) Appraisal Institute Florida Gulf Coast Chapter (2015 - 2021) Appraisal Institute National (2022) Appraisal Institute National (2023-2026) Leadership Development & Advisory Council Appraisal Institute - Washington, D.C. (2016, 2017, 2018) CCIM Institute - CCIM Designation Pin Number 21042 Naples Area Board of REALTORS Florida State Certified General Real Estate Appraiser License No. RZ 2984 Real Estate Broker (Florida) License No. BK3077672 EXPERT WITNESS: Qualified as an expert witness in the Twentieth Judicial Circuit Court of Collier County and Lee County EDUCATION: Bachelor of Arts, Major in Economics Florida Gulf Coast University, 2002 Graduated Magna Cum Laude 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, retail and office buildings, industrial 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. Page 1380 of 6526 3910 BUILDING ADDENDUM A - APPRAISER QUALIFICATIONS Page 1381 of 6526 3910 BUILDING ADDENDUM B - PROPERTY INFORMATION ADDENDUM B PROPERTY INFORMATION Page 1382 of 6526 $1,750,000 $180,000 Collier County Property Appraiser Summary Parcel ID 00282090906 Site Location 3910 DOMESTIC AVE, NAPLES 34104 Name / Address AMBROSI 3 LLC 3910 DOMESTIC AVENUE City NAPLES State FL Zip 34104 Legal 36 49 25 W 118FT OF N1/2 OF S 688.60FT OF W1/2 OF E1/2 OF E 1/2 OF NW1/4 Sub./Condo 100 - ACREAGE HEADER Use Code 48 - WAREHOUSING, DISTRIBUTION TERMINALS, TRU Millage Area 153 Municipality UNINCORPORATED Map No.Strap No.Section Township Range Acres *Estimated 4A36 000100 301 04A36 36 49 25 0.85 Latest Sales History (Not all Sales are listed due to Confidentiality) Date Book-Page Amount 07/26/19 5657-1674 03/31/99 2529-918 2025 Preliminary Tax Roll (Ad Valorem Only, Non-Ad Valorem After Certification) Just Values Amount Land $1,304,511 (+) Improvements $1,598,276 (=) Total Just $2,902,787 Assessment Reductions Applies To (-) Non-Homestead 10%Non-School $878,407 Assessed Values (=) Non-School Assessed $2,024,380 (=) School Assessed $2,902,787 Taxable Values Millage Rates (=) Non-School Taxable 6.3593 $2,024,380 (=) School Taxable 4.2490 $2,902,787 Tax Amounts Ad Valorem Taxes $25,207.59 (=) Total Tax $25,207.59 Important: This is not a tax bill. Preliminary values are subject to change. Ad valorem taxes shown are proposed only. Non- ad valorem assessments are not included in preliminary figures and will be posted after certification by the levying authorities. Do not rely on current taxes to estimate taxes after a change in ownership. A transfer may significantly affect the taxable value due to loss of exemptions, reset of Save Our Homes or the 10% Cap, and/or market changes. Use our Tax Estimator to estimate taxes under new ownership. Values reflect conditions as of January 1st each year and may differ from the actual tax bill due to millage changes or additional non-ad valorem assessments. For the most accurate and up-to-date tax information, please visit the Collier County Tax Collector ’s Office. Page 1383 of 6526 Collier County Property Appraiser Detail Parcel ID 00282090906 Site Location 3910 DOMESTIC AVE, NAPLES 34104 Permits (Provided for reference purposes only. ) Tax Yr Issuer Permit #Issued Date CO Date Temp CO Final Bldg Type 2022 COUNTY PRHV20210102574 05/27/21 06/03/21 OTHER 2021 COUNTY PRPL20200831564 12/16/20 OTHER 2020 COUNTY PRBD20190833623 08/21/19 10/03/19 OTHER 2018 COUNTY PRBD20170518265 06/06/17 06/14/17 OTHER 2015 COUNTY PRFR20140306046 03/19/14 02/18/15 OTHER 2002 COUNTY 2000033126 03/20/02 Land #Calc Code Units 10 ACREAGE 0.85 20 ACREAGE 0.08 Building/Extra Features #Year Built Description Area Adj Area 10 2002 FACTORY BUILDING 11000 11000 20 2002 ASPHALT PAVING 17100 17100 Page 1384 of 6526 Page 1385 of 6526 Page 1386 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 AGREEMENT FOR SALE AND PURCHASE THIS AGREEMENT FOR SALE AND PURCHASE (hereinafter referred to as this "Agreement") is made and entered into by and between AMBROSI 3 LLC, a Florida limited liability company whose address is 3910 Domestic Avenue, Naples, FL 34104 (hereinafter referred to as "Seller"), and the BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS THE EX-OFFICIO GOVERNING BOARD OF THE COLLIER COUNTY WATER-SEWER DISTRICT, its successors and assigns, whose address is 2685 Horseshoe Drive South, Suite 103, Naples, FL 34104 (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: I. AGREEMENT 1.01 ln consideration of the purchase price and upon the terms and conditions hereinafter set forth, Seller shall sell to Purchaser and Purchaser shall purchase from Seller the Property, described in Exhibit "A" attached hereto and made a part of this Agreement. II. PAYMENT OF PURCHASE PRICE 2.01 The purchase price (the "Purchase Price") for the Property shall be Four Million, Five Hundred Thousand Dollars and 00/100 dollars ($4,500,000.00), (U.S. Currency) or the average of two appraisals engaged by the Purchaser, whichever is lower, payable at time of Closing; lf the average of the appraisals is less than Four Million Five Hundred Thousand and 00/100 Dollars ($4,500,000.00), the Board of County Commissioners may, by supermajority vote, approve payment of the higher Purchase Price. Notwithstanding anything in this Agreement to the Public Utilities Division 612025 Page 1 of 17 cP'o Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1387 of 6526 Collier County Water-Sewer District TAX ]D NUM BER : 00282090906 contrary, if such supermajority approval is not obtained or if for any reason the Purchase Price to be paid to Seller to Purchaser at Closing is less than Four Million, Five Hundred Thousand Dollars and 00/100 dollars ($4,500,000.00), then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. III. CLOSING 3.01 The Closing (THE "CLOSING DATE", "DATE OF CLOSING", OR "CLOSING") of the transaction shall be held on or before one hundred and eighty (180) days following execution of this Agreement by the Purchaser, or within thirty (30) days of Purchaser's receipt of all reasonably required closing documents, whichever is later; provided, however, notwithstanding anything herein to the contrary, if for any reason Closing does not occur on or before December 31,2025, and the failure to Close is not caused by any act or omission of the Seller, then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. The Closing shall be held at the office of the insuring title company or by mail or by electronic signatures. 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, if legally required, acknowledged and in recordable form: 3.0111 Warranty Deed in favor of Purchaser conveying title to the Propefi, free and clear of all liens and encumbrances other than: (a) The lien for current taxes and assessments (b) Such other easements, restrictiohs, or conditions of record. 3.0 112 Combined Purchaser-Seller closing statement. 3.0113 A "Gap Tax Proration, Owner's Non-Foreign Affidavit", as required by Section 1445 of the lnternal Revenue Code and as required by the title insurance undenrvriter to insure the "gap" and issue the policy contemplated by the Title Commitment. 3.0114 A W-9 Form, "Request for Taxpayer ldentification and Certification" as required by the lnternal Revenue Service. Public Utilities Division 612025 Page 2 of 17 cho Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1388 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 3.012 At the Closing, the Purchaser, or its assignee, shall cause to be delivered to the Seller the items specified herein and the following documents and instruments duly executed : 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 Title 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 Title Commitment immediately after the recording of the deed. 3.0122 Funds payable to the Seller representing the cash payment due at Closing in accordance with Article lll hereof, shall be subject to adjustment for prorations as hereinafter set forth. 3.0 123 Combined Purchaser-Seller closing statement. 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 electronic fee of recording any instruments necessary to clear Seller's title to the Property (including a Multiple Lien Search, Electronic Service Fees for documents being recorded, and a Corporate Affidavit). The cost of the Owne/s Form B Title Policy, issued pursuant to the Title Commitment provided for in Section 4.011 below, shall be paid by Purchaser. The cost of the Title Commitment along with the closing fee and any other charges for title services shall also be paid by Purchaser. lf (i) required by a Phase I report issued by a licensed environmental professional received prior to Closing at Purchaser's sole expense and (ii) desired by Purchaser, then Seller shall pay for a Phase ll Environmental Assessment selected by Purchaser; provided, however, if for any reason the cost of such Phase ll Environmental Assessment exceeds Five Thousand Dollars and 00/100 dollars ($5,OOO.OO), then Seller in its sole discretion shall have the right to rescind this Agreement upon written notice without cost or penalty. 3.03 Purchaser shall pay for the cost of recording the Warranty Deed. Real Property taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and any other applicable exemptions and paid by Seller. lf Closing occurs at a date which the current yeads millage is not fixed, taxes will be prorated based upon such prior yea/s millage. Public Utilities Division 612025 Page 3 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1389 of 6526 Collier County Water-Sewer District TAX lD NUM BER : 00282090906 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 fifteen (15) days after the effective date hereof, Purchaser shall request as evidence of title an ALTA Commitment for an Owner's Title lnsurance Policy (ALTA Form B-1970) covering the Property (the "Title Commitment"), together with hard copies of all exceptions shown thereon. Purchaser shall have thirty (30) days, following receipt of the Title Commitment, to notify Seller in writing of any objection to title other than liens evidencing monetary obligations, if any, which obligations shall be paid at Closing. lf the Title Commitment contains uncurable 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 no later than ninety (90) days after the effective date of this Agreement as Purchaser's sole remedy. 4.012 lf Purchaser shall fail to advise the Seller in writing of any such objections or uncurable exceptions in Selleds title in the manner herein required by this Agreement, the title shall be deemed fully acceptable to Purchaser and Purchaser shall waive all rights to raise any further objections or uncurable exceptions in Selle/s title. Upon notification of Purchase/s objection to title, Seller shall have thirty (30) days to cure or othenuise remedy any defects to convey good and marketable title at Seller's expense, except for liens or monetary obligations which will be satisfied at Closing. Seller, at its sole expense, shall use its best efforts to make such title good and marketable. ln the event Seller is unable to cure said objections within said time period, Purchaser, by providing written notice to Seller within seven (7) days after expiration of said thirty (30) day period, may accept title as it then is, waiving any objection; or Purchaser may terminate the Agreement as Purchaser's sole remedy. 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 and the contingencies in Sections 4.011 and 4.012 shall be deemed waived. 4.013 Seller agrees to furnish any existing surveys of the Property in Seller's possession to Purchaser within ten (10) days of the effective date of this Agreement. 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 Public Utilities Division 612025 Page 4 of 17 cAo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1390 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 change to the total acreage referenced in Exhibit "A," unless the difference in acreage revealed by survey exceeds 5o/o of the overall acreage. lf the survey provided by Seller or obtained by Purchaser, as certified by a registered Florida surveyor, shows: (a) an encroachment onto the property; or (b) that an improvement located on the Property projects onto lands of others, or (c) lack of legal access to a public roadway, the Purchaser shall notify the Seller in writing of such encroachment, projection, or lack of legal access, and Seller shall have the option of curing said encroachment or projection, or obtaining legal access to the Property from a public roadway, within sixty (60) days of receipt of said written notice from Purchaser. Purchaser shall have ninety (90) days from the effective date of this Agreement to notify Seller of any such objections. Should Seller elect not to or be unable to remove the encroachment, projection, or provide legal access to the property within said sixty (60) day period, Purchaser, by providing written notice to Seller within seven (7) days after expiration of said sixty (60) day period, may accept the Property as it then is, waiving any objection to the encroachment, or projection, or lack of legal access, or Purchaser may terminate the Agreement as Purchaser's sole remedy. 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 Property with the encroachment, or projection, or lack of legal access and the contingencies in this Section 4.013 shall be deemed waived. V. INSPECTION PERIOD 5.01 Purchaser shall have ninety (90) days from the effective date of this Agreement, ("lnspection 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 environ- mental laws and the Property is free from any pollution or contamination. 4. The Property can be utilized for its intended use and purpose by the Collier Cou nty Water-Sewer D istrict. 5.02 lf Purchaser is not satisfied, for any reason whatsoever, with the results of any investigation, Purchaser shall deliver to Seller prior to the expiration of the lnspection Period, written notice of its intention to waive the applicable contingencies or to terminate this Agreement. lf Purchaser fails to notify the Seller in writing of its specific objections as provided herein within the lnspection Period, it shall be deemed that the Purchaser is satisfied with the results of its Public Utilities Division 612025 Page 5 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1391 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 investigations and the contingencies of this Article V shall be deemed waived. ln the event Purchaser elects to terminate this Agreement because of the right of inspection, Purchaser shall deliver to Seller copies of all engineering reports and environmental and soil testing results commissioned by Purchaser with respect to the Property. 5.03 Purchaser and its agents, employees and servants shall, at their own risk and expense, have the right to go upon the Property during normal business hours 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. Seller shall be notified by Purchaser no less than twenty-four (24) hours prior to said inspection of the Property. Purchaser shall be solely responsible for any and all damage to the Property or improvements thereon caused by or resulting from any inspections, analyses, borings or other investigations conducted by Purchaser or any of its agents, employees and servants, Purchaser agrees to repair such damage and restore the Property and improvements thereon to their pre-existing condition. Purchaser's repair and restoration obligations hereunder shall survive termination of this Agreement. VI. INSPECTION 6.01 Seller acknowledges that the Purchaser, or its authorized agents, shall have the right to inspect the Property at any time during normal business hours prior to the Closing upon no less than twenty-four (24) hours prior notice to Seller. VII. POSSESSION 7.O1 Purchaser shall be entitled to full possession of the Property at Closing, subject to the following temporary occupancy rights granted to Seller. Purchaser shall allow the Seller to occupy and use (i) all of the shop (i.e., retail space) portion of the Property, including all of the upstairs area above the shop (i.e. the portion of the Property closest to Domestic Avenue), (ii) all of the bay adjacent to the shop and closest to Domestic Avenue (i.e., the first of five warehouse spaces) and (iii) the five (5) parking spaces in the parking area closest to and abutting the front doors to the shop (collectively, the "Occupied Area") for a period of up to sixty (60) days following the date of Closing ("Occupancy Period"). Seller shall not be required to pay rent or any other amounts to Purchaser for such post-Closing Occupancy Period; however, Seller shall be solely responsible for all utility charges associated with the use of the Occupied Area during such Occupancy Period, as well as the cost of installation, maintenance, and service of any separate meters required to measure such use, if any. All other portions of the Property shall be delivered vacant and free of any personal property or occupants at Closing. Upon expiration of the Occupancy Public Utilities Division 612025 Page 6 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1392 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282O90906 Period, Seller shall deliver the Occupied Area to Purchaser free and clear of all personal property and occupants, in broom clean condition, and othenrvise in the same condition as it existed as of the date of Closing. lf Seller fails to vacate at the end of the Occupancy Period, Seller shall be liable for holdover damages in the amount of $233.33 per day, in addition to any other remedies available to Purchaser at law or in equity. Seller shall maintain commercially reasonable liability and personal property insurance naming Purchaser as an additional insured during the Occupancy Period. Seller shall release, indemnify and hold harmless Purchaser, as well as their employees, agents and representatives, from any and all claims, demands, causes of action or damages of any kind or nature brought by the undersigned or others, including reasonable attorneys' fees, arising out of or in any way associated with Seller's post-Closing temporary occupancy of the Occupied Area, including without limitation any personal injury or property damage arising from such occupancy. This indemnification shall survive the Closing and remain in full force and effect until the expiration of the Occupancy Period and the resolution of any claims arising therefrom. VIII. PRORATIONS 8.01 Ad valorem taxes next due and payable after closing on the Property shall be prorated as of the Closing Date (with Seller charged for the period prior to the Closing Date and Purchaser charged for the period on and after the Closing Date) based upon the gross amount of current year taxes. IX. TERMINATION AND REMEDIES 9.01 lf Seller shall have failed to perform any of the covenants and/or agreements contained herein which are to be performed by Seller, within ten (10) days of written notification of and opportunity to cure such failure, Purchaser may, at its option, terminate this Agreement by giving written notice of termination to Seller; provided, however, if the cure of such failure reasonably requires more than ten (10) days, then Seller shall have an additional (and final) thirty (30) day period commencing immediately upon the expiration of the initial ten (10) day period so long as Seller is continuously and diligently taking action to complete the cure of such failure as soon as reasonably practicalwithin such additional (and final) thirty (30) day period. lf Seller fails to cure such failure within the extended cure period, Purchaser may terminate this Agreement by written notice to Seller. Termination in accordance with this section shall be Purchaser's sole and exclusive remedy for any such failure by Seller. 9.02 lf Purchaser shall have failed to perform any of the covenants and/or agreements contained herein which are to be performed by Purchaser, within ten Public Utilities Division 612025 Page 7 of 17 c4r, Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1393 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 (10) days of written notification of and opportunity to cure such failure, Seller may, at its option, terminate this Agreement by giving written notice of termination to Purchaser; provided, however, if the cure of such failure reasonably requires more than ten (10) days, then Purchaser shall have an additional (and final) thirty (30) day period commencing immediately upon the expiration of the initial ten (10) day period so long as Purchaser is continuously and diligently taking action to complete the cure of such failure as soon as reasonably practical within such additional (and final) thirty (30) day period. lf Purchaser fails to cure such failure within the extended cure period, Seller may terminate this Agreement by written notice to Purchaser. Termination in accordance with this section shall be Seller's sole and exclusive remedy for any such failure by Purchaser. 9.03 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. X SELLER'S AND PURCHASER'S REP RESENTATIONS AN D WARRANTI ES 10.01 Seller and Purchaser represent and warrant the following: 10.011 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. To the best of Seller's knowledge, Seller is not presently the subject of a pending, threatened or contemplated bankruptcy proceeding. Seller further represents the Property is free from any and all occupants, tenants, and other persons or entities claiming possession of the Proper$ at the time of Closing. This provision shall survive Closing. 10.012 Seller has full right, power, and authority to own and operate the Property, and to execute, deliver, and perform its obligations under this Agreement and the instruments executed in connection herewith, and to consummate the transaction contemplated hereby. All necessary authorizations and approvals have been obtained authorizing Seller and Purchaser to execute and consummate the transaction contemplated hereby. At Closing, certified copies of such approvals shall be delivered to Purchaser and/or Seller, if necessary. 10.013 The warranties set forth in this paragraph shall be true on the effective 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. Public Utilities Division 612025 Page 8 of 17 Qqo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1394 of 6526 Collier County Water-Sewer District TAX ID NUIVBER. 00282090906 1O.O14 Seller represents that it has no knowledge of any actions, suits, claims, proceedings, litigation or investigations pending or threatened against Seller, at law, equity or in arbitration before or by any federal, state, municipal or other governmental instrumentality that relate to this agreement or any other property that could, if continued, adversely affect Selle/s ability to sell the Property to Purchaser according to the terms of this Agreement. 10.015 No party or person other than Purchaser has any right or option to acquire the Property or any portion thereof. 10.016 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. 10.017 Seller represents that they have (it has) no knowledge that there is or ever has been incinerators, septic tanks, or cesspools on the Property; all waste, if any, is discharged into a public sanitary sewer system; Seller represents that they have (it has) no knowledge that any pollutants are or have been discharged from the Property, directly or indirectly into any body of water. Seller represents that to their knowledge 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, to the best of Seller's knowledge, 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 that they have (it has) no knowledge that there is or ever has been any 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 that they have (it has) no knowledge that any part of the Property has ever been used as a sanitary landfill. 10.018 Seller has no knowledge that the Property and Selle/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, Public Utilities Division 612025 Page 9 of 17 Qqo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1395 of 6526 Collier County Water-Sewer District TAX ID NUMBER: 00282090906 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. 10.019 Seller has no knowledge of unrecorded leases, licenses or other possessory interests, restrictions, easements, or rights of way (other than easements, restrictions or conditions of record, and 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 which have not been disclosed to Purchaser in writing prior to Closing. 10.020 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 Selle/s ability to perform hereunder; nor does Seller have knowledge of any other charge or expense upon or related to the Property which has not been disclosed to Purchaser in writing prior to the Closing. 10.021 Seller acknowledges and agrees that Purchaser is entering into this Agreement based upon Selle/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. 10.022 Upon Purchaser's request 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 shallsurvive the Closing. Public Utilities Division 612025 Page 10 of 17 a16 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1396 of 6526 Collier County Water-Sewer District TAX lD NUMBER: 00282090906 10.023 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 common law relating to pollution or protection of the environment to the extent arising from the condition of the Property prior to the Closing Date, including, 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. 10.024 Any loss and/ordamage to the Property between the effective date of this Agreement and the date of Closing shall be Selle/s sole risk and expense. XI. NOTICES 11.O1 Any notice, request, demand, instruction, or other communication to be given to either party hereunder shall be in writing, sent by facsimile with automated confirmation of receipt, or by registered, or certified mail, return receipt requested, postage prepaid, and with notification to the other Paff sent via email containing the tracking number and/or fax number (if applicable) of such notice addressed as follows: lf to Pu rchaser:Joseph Bellone Division Director Public Utilities Division 3339 Tamiami Trail E. Suite 301 Naples, Florida 341 12 Email: Joseph.Bello Iiercou ntvfl.oov With a copy to Attn: Grant Cox Collier County Real Property Management 2685 Horseshoe Dr. S., Suite 103 Naples, Florida 34104 Telephone n umber: 239-252-5373 Fax number: 239-252-8876 Ema il : G ra nt. Cox@co lliercou ntyfl.q ov Public Utilities Division 612025 Page 11 of 17 Q<o Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1397 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 lf to Seller:Name: AMBROSI 3 LLC, a Florida lirnited liability company Address: 3910 Domestic Avenue City. Naples State. FL Zip:34104 Telephone n umber: 239-253- 177 4 Fax number: _N lA- Email: rba7660@qmail.com With a copy to Attn: William L. Owens Bond, Schoeneck & King, PLLC 4001 Tamiami Trail North, Suite 105 Naples, FL 34103 Telephone n umber: 239-6 59-3822 Fax number: 239-649-3410 E ma i I : wowg n s@.[-s,K. co m & Name: Cody Shadley Address: 9130 Galleria Court, Suite 100 City: Naples State. FL Zip. 341 09 E m a i I : co d vs h adlgy(QK,gy.ag_q..,-c".o m & Name: Bryan Flores Email : bryanflores@kovacq .com 11.02 The addressees and numbers 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. XII. REAL ESTATE BROKERS 12.01 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. Public Utilities Division 612025 Page 12 of 17 aro Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1398 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 XIII. MISCELLANEOUS 13.01 This Agreement may be executed in any manner of counterparts by manual signature or authenticated by any electronic signature or other method effective under applicable law, each of which shall be deemed an original and all of which together shall constitute one and the same agreement of the parties. 13.02 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. 13.03 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. 13.04 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. 13.05 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. 13.06 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. 13.07 lf any date specified in this Agreement falls on a Saturday, Sunday, or legal holiday, then the date to which such reference is made shall be extended to the next succeeding business day. 13.08 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. 13.09 lf the Seller holds the Property in the form of a partnership, limited partnership, corporation, trust, or any form of representative capacity whatsoever for others, Seller shall make a written public disclosure, according to Chapter 286, Florida Statutes, under oath, of the name and address of every person having a Public Utilities Division 612025 Page 13 of 17 elo Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1399 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 beneficial interest in the Property before Property held in such capacity is conveyed to Collier County. (lf the corporation is registered with the Federal Securities Exchange Commission or registered pursuant to Chapter 517, Florida Statutes, whose stock is for sale to the general public, it is hereby exempt from the provisions of Chapter 286, Florida Statutes.) 13.10 This Agreement is governed and construed in accordance with the laws of the State of Florida. XIV. ENTIRE AGREEMENT 14.01 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. XV. ACKNOWLEDGMENT OF POTENTIAL FUTURE USE 15.01 Any development rights or credits available on the Property are relinquished by the Seller and conveyed to the Purchaser at Closing as part of the sale of the Property. S/GA/ATURES APPEAR O/V THE FOLLOWING PAGES Public Utilities Division 612025 Page 14 of 17 CAC Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1400 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 lN WITNESS WHEREOF, the parties hereto have signed below Dated ProjecUAcquisition Approved by BCC:_ AS TO PURCHASER: ATTEST: CRYSTAL K. KINZEL, Clerk of the Circuit Court and Comptroller BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY AND AS THE EX-OFFICIO THE GOVERNING BOARD OF THE COLLIER COU NTY WATER-SEWER DISTRICT By: , Deputy Clerk Burt L. Saunders, Chairman REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK cAO Public Utilities Division 612025 Page 15 of 17 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1401 of 6526 Collier County Water-Sewer District TAX ID NUMBER. 00282090906 AS TO SELLER: AMBROSI 3 LLC, a Florida limited liability company By: Name: Rudy Ambrosi Title: Manager Date: Approved as to form and Iegality: Sally A. Ashkar, Assistant County ,r/\ Public Utilities Division 612025 1V Page 16 of 17 CAO Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A 7/25/2025 Page 1402 of 6526 Collier County Water-Sewer District TAX lD NUMBER : 00282090906 EXHIBIT *A" PROPERTY IDENTIFICATION NUMBER: 00282090906 The West 1 1 8 feet of the North 1 12 of the South 688.60 feet of the West 1 12 of the East 112 of the East 112 of the Northwest 114, Section 36, Township 49 South, Range 25 East, of the Public Records of Collier County, Florida. 0.85 ACRES +l- CAO Public Utilities Division 612025 Page 17 of 17 Docusign Envelope ID: 91AECEE8-30B3-4E69-8A22-A996FDE2679A Page 1403 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ADDENDUM C COMPARABLE DATA Page 1404 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID 9799 Date 1/15/2025 Address 1958 Trade Center Way Price $6,665,000 City Naples Price Per RA $316.09 State FL Transaction Type Closed Sale Grantor Naples Warehouse, LLC Financing Conventional Grantee Spazio Marble & Granite Inc Property Rights Leased Fee Tax ID Days on Market --Sale Verification Date 10/22/2024 Book/Page or Reference Doc OR 6431 PG 3144 Sale Verification Source Jeffrey Buckler, SIOR; Lee & Associates Conditions of Sale Arm's Length Sale History None in previous 3 years. Acres 1.15 Topography Level Land SF 50,050 Zoning I (Industrial District) Primary Frontage Feet 175 Flood Zone Zone AE and X Primary Frontage Street Trade Center Way Dimensions 175' x 286' Utilities All Utilities Available Shape Roughly rectangular Land to Building Ratio 2.37 Floor Area Ratio 0.42 GBA 21,086 PGI $559,412 Rentable Area 21,086 EGI $542,630 Construction Concrete Block and Heavy Steel NOI $425,972 Year Built 1995 Cap Rate 6.39% Roof Type Flat NOI/SF $20.20 Condition Good Occupancy Buyer Comparable 1 Two-story showroom/warehouse building with approximately 7,757± SF of showroom/office space (37%); 1,769± SF of unfinished mezzanine space; and 11,560± SF of air-conditioned warehouse space. The property was listed for lease by Jeff Buckler of Lee & Associates for $23.00/SF triple net. According to Mr. Buckler the buyers presented an unsolicited offer to purchase the property. Buyer will occupy after tenant vacates on May 31, 2025. The contract lease is below market with an approximate rent loss of $90,000 through the remaining lease term. Income/expenses are pro-forma based on market. There is a 30' Drainage and Utility Easement along the southern border of the site. The usable area excluding the easement is 44,800 square feet or 1.03 acres. Site Comments Improvements & Financial Data Transaction 77020006509 Page 1405 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID 9740 Date 3/7/2024 Address 1990 Seward Ave Price $3,720,000 City Naples Price Per RA $368.32 State FL Transaction Type Closed Sale Grantor 9720 Sample, LLC Financing Conventional Grantee Omni RE Holdings LLC Property Rights Fee Simple Tax ID Days on Market --Sale Verification Date 9/4/2024 Book/Page or Reference Doc Instr #6518183 Sale Verification Source Adam Palmer, CCIM, SIOR; LQ Commercial Conditions of Sale Arm's Length Sale History 8/2022 - $2,850,000 Acres 1.78 Topography Level Land SF 77,537 Zoning I (Industrial) Primary Frontage Feet 165 Flood Zone Zone X Primary Frontage Street Seward Ave Dimensions 165' x 566' Utilities All Utilities Available Shape Roughly rectangular Land to Building Ratio 7.68 Floor Area Ratio 0.13 GBA 10,100 PGI $306,186 Rentable Area 10,100 EGI $297,000 Construction Concrete Block & Metal NOI $243,314 Year Built 1990 Cap Rate 6.54% Roof Type Flat NOI/SF $24.09 Condition Average Occupancy Buyer Improvements & Financial Data Two-story 6,800 SF concrete block office building (67%) with attached rear metal 3,300 SF warehouse with approximately 14' high ceilings located at the southeast corner of Seward Ave and Kathleen Court. Usable site area (excluding Kathleen Court ROW) is 1.78 acres. Purchased by the tenant for owner occupancy. Income/expenses are pro-forma based on market. Comments Comparable 2 00255087700 & 52685000143 Transaction Site Page 1406 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID 10330 Date 6/6/2025 Address 4344 Arnold Avenue Price $1,900,000 City Naples Price Per RA $296.88 State FL Transaction Type Closed Sale Grantor Meals of Hope, Inc Financing Cash Grantee Senna Vault, LLC Property Rights Fee Simple Tax ID Days on Market 2 months Sale Verification Date 4/17/2025 Book/Page or Reference Doc Instru #6693533 Sale Verification Source David Wallace; CRE Consultants Conditions of Sale Arm's Length Sale History None in previous 3 years. Acres 0.50 Topography Level Land SF 21,780 Zoning I (Industrial) Primary Frontage Feet 109 Flood Zone Zone X Primary Frontage Street Arnold Ave Dimensions 109' x 200' Utilities All Utilities Available Shape Roughly rectangular Land to Building Ratio 3.40 Floor Area Ratio 0.29 GBA 6,400 PGI $179,200 Rentable Area 6,400 EGI $170,240 Construction Heavy Steel NOI $131,840 Year Built 1993 Cap Rate 6.94% Roof Type Flat NOI/SF $20.60 Condition Average Occupancy Buyer Transaction Site Comments Improvements & Financial Data Comparable 3 279880006 Industrial flex building with 1,200 SF of office space (19%) and 5,200 SF of warehouse space. There is mezzanine storage above the office that is not included in the gross leasable area. The warehouse has a 17' clear height at the front of the building and 12'6" at the back of the building. It is serviced with a truckwell and 10'x12' overhead door as well as a grade-level 14'x12' overhead door and 600-amp single-phase electric. Property was listed for $2,250,000. David Wallace of CRE Consultants represented both the buyer and seller and said the buyer provided a quick cash closing after a 30-day due diligence period which was a positive for the seller. Sale was contingent on the seller closing on 4176 Mercantile Ave (replacement property). Purchased for owner occupancy by Naples Motorsports. Income/expenses are pro-forma based on market. Page 1407 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID 9644 Date 4/15/2024 Address 3600 Westview Dr Price $7,500,000 City Naples Price Per RA $403.29 State FL Transaction Type Closed Sale Grantor Motorsports Storage, LLC Financing Cash to seller Grantee Spartan Investment Property - Naples, LLC (67%), Greystone Debt Acquisitions, LLC (4%), Wells Next Generation Financial (27%), Wells Investment (2%) Property Rights Leased Fee Tax ID Days on Market 7-8 months Sale Verification Date 7/23/2024 Book/Page or Reference Doc 6351-174 Sale Verification Source Jeff Buckler, SIOR; Lee & Associates Conditions of Sale Arm's Length Sale History None in previous 3 years Acres 1.55 Topography Level Land SF 67,518 Zoning Westview Plaza PUD Primary Frontage Feet 220 Flood Zone Zone AE Primary Frontage Street Westview Drive Dimensions 220' x 300' Utilities All Public Shape Rectangular Land to Building Ratio 3.63 Floor Area Ratio 0.28 GBA 18,597 PGI $491,384 Rentable Area 18,597 EGI $466,815 Construction Steel with insulated concrete block NOI $352,386 Year Built 2004 Cap Rate 4.70% Roof Type Gable - insulated metal NOI/SF $18.95 Condition Good Occupancy 100.00% 81570360008 Improvements & Financial Data Transaction Comments Site Two-unit building. The seller (high-end car dealer) leased back 8,797 SF and the remaining 9,800 SF was vacant. The building consists of approximately 4,839/sf (26%) office area and the remaining is air conditioned warehouse (100% A/C) with 20-22' clear height. Epoxy floors in warehouse. Fire sprinklers throughout entire building. Loading dock (1,549/sf) has been filled in and is a concrete loading pad. Three exterior overhead doors and one glass roll-up door between warehouse and office. Building was configured for two-tenants. Buyer reported they were drawn to the property due to its location and paid a premium for it. 1031 Exchange cash purchase. There is a 33' wide drainage easement along the western border and a 59' wide drainage easement along the southern border. Excluding the drainage easement, the usable area is approximately 0.88 acres or 38,117 square feet. Income/expenses based on contract/market. As of September 2024 the building is 100% occupied by owner related companies including Icon Rocklear Detailing. Comparable 4 Page 1408 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID 9643 Date 3/4/2024 Address 3527 Plover Avenue Price $3,877,800 City Naples Price Per RA $345.00 State FL Transaction Type Closed Sale Grantor Anna Louise Properties, LLC Financing Conventional Grantee Rebel RE, LLC Property Rights Fee Simple Tax ID Days on Market --Sale Verification Date 7/23/2024 Book/Page or Reference Doc 6336/1504 Sale Verification Source David Bartley; Bartley Realty LLLP Conditions of Sale Arm's length Sale History 11/23 - $2,202,100 Acres 0.98 Topography Level Land SF 42,689 Zoning PUD Primary Frontage Feet 200 Flood Zone Zone AE Primary Frontage Street Plover Ave Dimensions 200' x 213' Utilities All Utilities Available Shape Roughly rectangular Land to Building Ratio 3.80 Floor Area Ratio 0.26 GBA 11,240 PGI $313,966 Rentable Area 11,240 EGI $298,268 Construction Heavy Steel NOI $231,582 Year Built 2003 Cap Rate 5.97% Roof Type Flat NOI/SF $20.60 Condition Average Occupancy Buyer 81790004649 Comments Transaction Site Improvements & Financial Data Comparable 5 The building has a total of 2,923/sf (26%) office area; 4,300/sf of warehouse/showroom; and 4,017/sf of warehouse with 2 OH doors. The building is fully air conditioned and sprinklered. The property was previously purchased on 11/3/2023 by a local investor/developer for $2,202,023. Listing and buyer agent, David Bartley, reported the recent transaction was a straight flip to an end user. Warehouse has 23' ceiling height. Income and expense data is proforma by the appraiser. Page 1409 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID Name Address Comm 1 Lessor City GBA State Comm 1 Escalations Market Comm 1 Expense Reimbursements Year Built Comm 1 Concessions Condition Comm 1 TI Comm 1 Lease Transaction Type Comm. Verification Source Tenant Size Base Rent/SF Type Comm 1 Start Date Term Listing 5,440 $20.00 Triple net 8/1/2025 Negotiable Location Building Average FL 4440 Domestic Avenue 5285 Leases 2001 4440 Domestic Avenue Sealog, LLC 10,240 Listing Naples Suburban The building features a secured, gated outdoor storage area, mezzanine, 4 grade-level bay doors, and warehouse restroom. Additionally, the property offers a 1,140 FF office space adjoining the warehouse, featuring four private offices, two restrooms, and a kitchenette. 3.00% Comments Lease Comparable 1 Bryan Flores w/ KOVA Commercial Group None $3.00 Negotiable Page 1410 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID Name Address Comm 1 Lessor City GBA State Comm 1 Escalations Market Comm 1 Expense Reimbursements Year Built Comm 1 Concessions Condition Comm 1 TI Comm 1 Lease Transaction Type Comm. Verification Source Tenant Size Base Rent/SF Type Comm 1 Start Date Term CMR Consruction and Roofing 7,200 $23.33 NNN 2/1/2024 5 years Location Building Leases J&C Industrial Park Lease Comparable 2 8225 3927 Exchange New Lease Christine McManus, IPC $3.46 3927 Exchange Ave Exchange Avenue LLC Class S industrial building with 2,400 SF of office (33%) and 4,800 SF of warehouse space. Site is 37,897 SF with approximately 0.25 acres of outside storage available. Building has a center height of 17 feet. Comments 1989 None Naples 7,200 FL 3% per year Average Second generation Page 1411 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID Name Address Comm 1 Lessor City GBA State Comm 1 Escalations Market Comm 1 Expense Reimbursements Year Built Comm 1 Concessions Condition Comm 1 TI Comm 1 Lease Transaction Type Comm. Verification Source Tenant Size Base Rent/SF Type Comm 1 Start Date Term All Year Cooling 7,200 $24.00 Triple net 12/1/2024 5 years Comments 7,200 Sq. Ft. building situated on 0.50± acres of land. Building height/clear height 14’/16’. (8) 10’ W x 12’ H and (2) 8’ W x 8’ W overhead doors. 6,000 Sq. Ft warehouse space and 1,200 Sq. Ft of office buildout. Warehouse a/c at 2,400 Sq. Ft. The property was listed at $25/SF NNN and also for sale at $3,500,000 or $486.11 psf. Landlord responsible for removing a Garmot Paint booth and cleaning the warehouse to broom swept condition. Location Building Eric Edwards, CCIM w/ LSI Companies None1975 2nd generation FL 2% per year Naples $2.50 Leases New Lease Lease Comparable 3 FMG Enterprises of Naples LLC6203 Janes Lane Average Naples 7,200 8561 6203 Janes Lane Page 1412 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID Name Address Comm 1 Lessor City GBA State Comm 1 Escalations Market Comm 1 Expense Reimbursements Year Built Comm 1 Concessions Condition Comm 1 TI Comm 1 Lease Transaction Type Comm. Verification Source Tenant Size Base Rent/SF Type Comm 1 Start Date Term Air Cool Inc 6,500 $22.00 NNN 4/1/2025 5 years New Lease Dean Arnold; Arnold & Arnold, LLC Leases Comments End cap space in 4-unit industrial/flex building. Unit has approximately 960 SF of office space and 5,540 SF of warehouse (no A/C). Warehouse is serviced by four drive-in overhead doors and a truck well. Yard is fenced. 1997 None Average Second generation Naples 20,500 FL 3% per year Building Naples Production Park $5.00 4085 Arnold Ave Arnold Properties Inc Lease Comparable 4 Location 10123 4085 Arnold Ave Page 1413 of 6526 3910 BUILDING ADDENDUM C - COMPARABLE DATA ID Name Address Comm 1 Lessor City GBA State Comm 1 Escalations Market Comm 1 Expense Reimbursements Year Built Comm 1 Concessions Condition Comm 1 TI Comm 1 Lease Transaction Type Comm. Verification Source Tenant Size Base Rent/SF Type Comm 1 Start Date Term Debbie's Draperies & Design Studio 4,084 $21.00 NNN 2/21/2025 3 years Naples Lease Comparable 5 J&C Industrial $5.25 2000 None Average None Two industrial flex condominium leased by one tenant. Renewal of lease with commencement February 21, 2025. Contract rent is flat through the three year lease term. Unit 5 consists of showroom/warehouse space with 2nd floor private offices. Unit 9 consists of fully air-conditioned workstation with small kitchenette and bath. Units have 16' eave height. Units are listed for sale for $1,559,000 or $382/SF. Tenant has one remaining 3 year option. Comments Designer Creations LLC New Lease Christine McManus, CCIM, SIOR Leases 4,084 FL 5405 Taylor Road, Unit 5 & 9 10148 Taylor Village Unit 5 & 9 Second generation Location Building Page 1414 of 6526