bankofamerica - Appraisal Alliance Inc

Transcription

APPRAISAL DEVELOPMENT INTERNATIONAL, INC
PO Box 1212, Tampa FL 33601
Tel: Pinellas (727) 726-8811 Hillsborough (813) 258-5827
Toll Free 1-888-683-7538 Fax: (813) 258-5902
www.appraisaldevelopment.com
SUMMARY
APPRAISAL REPORT
of
TIERRA VERDE MARINE CENTER
100 PINELLAS BAYWAY
TIERRA VERDE, FL 33715
FOR:
BAN K OF AMERICA
TAMPA, FL
DATE OF VALUATION
February 1, 2008
TABLE OF CONTENTS
Page
Letter of Transmittal ...........................................................................................
Declaration of Value ............................................................................................
Appraisers Certification ........................................................................................
USPAP Summary Appraisal Report Minimum Requirements ..............................
General Assumptions & Limiting Conditions .......................................................
Extraordinary Assumptions & Hypothetical Conditions .......................................
The Valuation Process Chart ................................................................................
Type of Appraisal .................................................................................................
3
4
5
6
7-8
9
10
11
REAL ESTATE APPRAISED..............................................................................
Site Description ...........................................................................................
Land To Building Ratio ...............................................................................
Improvements ..............................................................................................
Proposed improvements ...............................................................................
Utilities.........................................................................................................
Ownership ....................................................................................................
Sales History and Analysis ..........................................................................
Legal Description ........................................................................................
Zoning/Land Use .........................................................................................
Census Tract ................................................................................................
Flood Zone Determination ..........................................................................
Assessment & Taxes ...................................................................................
Marketability ...............................................................................................
Concurrency.................................................................................................
Environmental Issues ..................................................................................
11-22
11
11
12-18
19
20
20
20
20
21
21
21
21
22
22
22
Pinellas County Market Area ...............................................................................
Regional Map...............................................................................................
Area Map ....................................................................................................
Neighborhood Map .....................................................................................
Neighborhood .............................................................................................
23-34
35
36
37
38-39
Photographs of Property .......................................................................................
40-83
Objective and Use of this Appraisal .....................................................................
Intended User ..............................................................................................
Effective Date of this Appraisal ..................................................................
Scope of the Work Assignment ...................................................................
Highest and Best Use ..................................................................................
84
84
85
85
86-87
VALUATION .......................................................................................................
The Sales (Market) Approach .....................................................................
The Cost Approach .....................................................................................
The Income Approach .................................................................................
88-121
89-104
105-110
111-121
RECONCILIATION AND FINAL VALUE ESTIMATE....................................
122
ADDENDA INDEX ...........................................................................................
123
© Appraisal Development International, Inc File # 0808
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Toll Free 1-888-683-7538 Fax: (813) 258-5902
March 5, 2008
Daniel Langelier
Senior Vice President
Bank of America
Mail Code: FL1-400-07-02
P.O. Box 31590 (33631-3590)
101 E. Kennedy Blvd., 7th Floor
Tampa, Florida 33602
RE: TIERRA VERDE MARINA, TIERRA VERDE, FLORIDA
OUR FILE # 0808
Dear Mr. Langelier,
Thank you for the opportunity to provide appraisal services to your bank on the real property
referenced above. It is my understanding that we are appraising the Market Value in Fee
Simple “As Is” and “As Completed” on the date of my inspection on February 1, 2008.
Please find enclosed a Complete Appraisal in a Summary Report format performed according
to the Uniform Standards of Professional Appraisal Practice, 2008-2009 Edition, and the
requirements of Title X1 of the Financial Institute Reform, Recovery and Enforcement Act of
1989.
Please read the attached valuation in its entirety and if you have any questions concerning the
contents or methodology please contact me at my office.
Sincerely,
Paul T. Willies
State-Certified General Real Estate Appraiser RZ2762
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Toll Free 1-888-683-7538 Fax: (813) 258-5902
March 5, 2008
Daniel Langelier
Senior Vice President
Bank of America
101 E. Kennedy Blvd., 7th Floor
Tampa, Florida 33602
RE: TIERRA VERDE MARINA, TIERRA VERDE, FLORIDA - OUR FILE # 0808
Dear Mr. Langelier,
I, the undersigned, do hereby certify that I have personally inspected the property and
improvements identified above and have made an appraisal of the same for the purpose of
estimating the Market Value in Fee Simple “As Is” and “As Completed” unencumbered by
liens of the real estate.
To the best of my knowledge and belief the statements contained in this report are true and
correct and neither my employment to make this appraisal nor my compensation is contingent
upon the value reported.
In my opinion the Market Value in Fee Simple of the proposed real estate known as Tierra
st
Verde Marina as of the date of my inspection on February 1 , 2008 is:
“As Is”
TWENTY FOUR MILLION, EIGHT HUNDRED &
FIFTY FOUR THOUSAND DOLLARS
( $24,854,000 )
“As Completed”
TWENTY NINE MILLION DOLLARS
( $29,000,000 )
Sincerely,
Paul T Willies
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Certification
I certify, to the best of my knowledge and belief that:
- the statements of fact contained in this report are true and correct to the best of my
knowledge,
- the reported analysis, opinions and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial unbiased professional
analyses, opinions and conclusions,
- I have no present or prospective interest in the property that is the subject of this report and
I have no personal interest or bias with respect to the parties involved,
- I have no bias with respect to the property that is the subject of this report or 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,
- my analysis, opinions and conclusions were developed, and this report has been prepared
in conformity with the Uniform Standards of Professional Appraisal Practice,
- I have made a personal inspection of the property that is the subject of this report,
compiled the report and the value estimate,
- No one provided significant real property appraisal assistance to the person signing this
certification.
Paul T Willies
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Summary Appraisal Report
Uniform Standards Rule 2-2(b) requires the content of a Summary Appraisal Report
must be consistent with the intended use of the appraisal and at a minimum:
(i)
state the identity of the client and any intended users, by name or type;
(ii)
state the intended use of the appraisal;
(iii)
summarize information sufficient to identify the real estate involved in the appraisal,
including the physical and economic property characteristics relevant to the assignment;
(iv)
state the real property interest appraised;
(v)
state the type and definition of value and cite the source of the definition;
(vi)
state the effective date of the appraisal and the date of the report;
(vii)
summarize the scope of work used to develop the appraisal;.
(viii)
summarize the information analyzed, the appraisal methods and techniques employed,
and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the
sales comparison approach, cost approach, or income approach must be explained;
(ix)
state the use of the real estate existing as of the date of value and the use of the real
estate reflected in the appraisal; and , when an opinion of highest and best use was
developed by the appraiser, summarize the support and rationale for that opinion;
(x)
Clearly and conspicuously:
-
(xi)
state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results; and
include a signed certification in accordance with Standard Rule 2-3.
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General Assumptions and Limiting Conditions
This report has been prepared under the following general assumptions and limiting
conditions:
1. Information furnished by others is assumed to be true, factually correct and reliable. No
effort has been made to verify such information and I assume no responsibility for its
accuracy. Should there be any material error in the information provided to me; the results of
this report are subject to review and revision.
2. All mortgages, liens and encumbrances have been disregarded unless specified within this
report. The subject property is analyzed as though under responsible ownership and
competent management. It is assumed in this analysis that there were no hidden or
unapparent conditions of the property, subsoil or structures, including hazardous waste
conditions, which would render it more or less valuable. No responsibility is assumed for
such conditions or for engineering that may be required to discover them. No responsibility is
assumed for legal matters existing or pending, nor is opinion rendered as to title, which is
assumed to be good.
3. I have assumed that no hazardous waste exists on or in the subject property unless
otherwise stated in this report. I did not observe the existence of hazardous material, which
may or may not be present on the property. I have no knowledge of the existence of such
materials on or in the subject property. I however, am not qualified to detect such substance
or detrimental environmental conditions. The value estimate rendered in this report is
predicated upon the assumption that there is no such material on or affecting the property that
would cause a diminution in value. I assume no responsibility or environmental engineering
knowledge required to discover it. You urged to retain an expert in the field if so desired.
4. It is assumed that there is full compliance with all applicable federal, state and local
environmental regulation and laws unless non-compliance is noted.
5. The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not
made a specific compliance survey and or analysis of this property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property together with a detailed analysis of the requirements of the
ADA could reveal that the property is not in compliance with one or more elements of the
ADA. If so, this fact could have a negative effect upon the value of the property. Since I have
no direct evidence relating to this issue, I did not consider possible noncompliance with the
requirements of the ADA in estimating the value of the subject property.
6. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless nonconformity has been stated, defined and considered in the analysis.
7. It is assumed that all required licenses, consents or other legislative or administrative
authority from any local, state or national governmental or private entity or organization have
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been or can be obtained or renewed for any use on which the value estimated contained in
this report is based.
8. Possession of this report, or a copy thereof, does not carry with it the right of publication.
Neither all nor any part of the contents of this report (especially on conclusions as to value,
my identity or the identity of the firm with which I am connected) shall be disseminated to
the public through advertising, public relations, news, sales or other media without my prior
written consent and approval. This appraisal report is intended for use in its entirety.
Individual pages or sections or the report should not be used separately from the rest of the
report.
9. Unless prior arrangements have been made, I, by reason of this report, am not required to
give further consultation or testimony, or to be in attendance in court with reference to the
property that is the subject of this report without prior financial arrangements.
10.
This report constitutes a Complete Appraisal presented in a Summary Report.
11.
I have made no legal survey nor have I commissioned one to be prepared. Therefore,
reference to a sketch, plat, diagram or previous survey appearing in the report is only for the
purpose of assisting the reader to visualize the property.
12.
The Bylaws and Regulations of the Appraisal Institute cover disclosure of the
contents of this report.
13.
The authentic copies of this report are signed in ink and are printed on white paper.
Electronic signatures may also be utilized in this report. The Uniform Standards Board state
that electronically affixing a signature to a report carries the same level of authenticity and
responsibility as an ink signature on a paper report (the term “Written Records” includes
information stored on electronic, magnetic or other media). Any copy that does not have the
above is unauthorized and may have been altered.
14.
By the receipt and implied acceptance of this report, the addressee recognizes the
obligation for timely remittance of associated professional fees in full. Furthermore, any
claims against me, for whatever reason, are limited to the amount of said fees. My
responsibility is limited to Bank of America, and does not extend to any third party.
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Extraordinary Assumption
It is an extraordinary assumption that the wave attenuator proposed for the redevelopment of the
slips will adequately protect the slips and boats.
Hypothetical Condition
The “As Completed” aspect of this report is based on the successful completion of the
upgrades outlined to us by the client. We did not see a comprehensive breakdown of the
expenses, or drawings of the completed renovations, other than renderings that illustrate what
the owners hope to accomplish. We have based our valuation “On Completion” on the basis
that the property would be renovated to like new condition, reflecting the facility and services
that the boating community would demand.
The use of Extraordinary Assumptions and Hypothetical conditions might have affected the
assignment results.
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TYPE OF APPRAISAL
This appraisal is a Summary Appraisal Report as prescribed by the Appraisal Standards Board
in the 2008-2009 Edition of Uniform Standards of Professional Appraisal Practice.
REAL ESTATE APPRAISED:
Tierra Verde Marine Center
100 Pinellas Bayway, Tierra Verde, FL 33715
Pinellas County Parcel IDs: 17/32/16/90828/000/0040 High & Dry Facility
17/32/16/00000/340/0100 The Wet Slips
17/32/16/90828/023/0010 The Retail Center
Located in the Tax District of TVF – Tierra Verde Fire an unincorporated district of Pinellas
County
Site Description
The property comprises of 7.042 acre waterfront site and 4.18 acres of leased submerged lands
(see the addenda for a copy of the lease) to accommodate the wet slips, lying at the north end of
Tierra Verde island, west of the Pinellas Bayway Bridge. The subject fronts approximately 600
feet along the westerly right-of-way of the Pinellas Bayway, immediately south of a active draw
bridge over the waters of Boca Ciega Bay and the Intracoastal Waterway. There are two 24-foot
driveways one located near the southeast corner of the site, the other towards the middle. There
is additional 400 feet along the northerly right-of-way of Madonna Boulevard with a 24-foot
drive located near the center of road frontage. The subject has northerly boundary of 613.8 feet
along a seawall fronting Boca Ciega Bay, and an irregular westerly boundary. The site is
cleared, level and majority paved with minimal landscaping along the southern and eastern
boundaries.
At the time of inspection there was no unusual soil or subsoil condition or any noticeable or
obvious signs of the presence of hazardous substances. However, we are not experts in the
detection and analysis of such conditions and should not be relied upon for such determinations.
Land To Building Ratio
The improvements to the site provide a total land to building ratio of 3.41: 1.00.
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Improvements
There are four principle units of value in the combined parcel, the High & Dry, Wet Slips, Full
service Restaurant and Bar with Public Restrooms and Boat Rental, and a Retail Strip Center
comprised of three buildings. The following is a brief discussion on each element.
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HIGH & DRY
The high and dry facility is a pre-engineered metal warehouse built in 1990 with a total
footprint of 57,571 sq ft. (230.1 x 250 feet). The eave height at the walls is 35 feet rising to
40.75 at the roofline. Steel columns rest on individual footers of various sizes, and a number of
footers are resting atop single or double pile footings. In other words, eight-inch tip timber piles,
driven to 20 ton bearing and providing uplift resistance of 10,000 pounds, are located just
beneath the footers. The building is designed to provide resistance to meet 110 mile per hour
wind load requirements. The roof is comprised of 26 gauge Galvalume sheet metal and exterior
walls are combination of 26 gauge steel panels and wire lathe and stucco, and steel panel
sections are fitted with storefront-type glass, providing a aesthetically pleasing exterior
appearance that is typical for this type of building. Each end of the building is provided with
two sets of 24 foot sliding hanger doors at the forklift entries of the two aisles.
The interior of the building consists of four rows of four-high staked rack systems with a load
carrying capacity, beginning at the lowest berth, of 40,000 pounds, 24,000 pounds, 16,000
pounds, and 12,000 pounds respectively. The two exterior rows provide capacity of 30,000
pounds, 20,000 pounds, 12,000 pounds and 8,000 pounds. In order to provide for margin of
safety, capacity of the center row is rated at 20,000 pounds, 12,000 pounds, 8,000 pounds and
6,000 pounds and 4,000 pounds. These are typically designed with a width of 20 feet 6 inches,
except that end bays are 22 feet 6 inches, providing for capacity of boats up to 10 feet in beam,
and center racks will accommodate boats with up to 30 feet overall length and exterior racks
will accommodate boats up to 25 feet overall length. The racks are adjustable in six-inch
increments. The rack system can accommodate from 350 to 384 boats depending on actual size.
Larger boats are charged a premium, and create more demand for fuel and services from the
marina.
The facility is rated for up to 384 boats, but currently accommodates 350 due to the larger size.
The facility was completed in 1991, and is in overall good condition, with an effective age
estimated at ten to fifteen years, based on economic life of 40 years.
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WET SLIPS
North of the seawall, located within the waters of Boca Ciega Bay, over approximately 4.1 acres
of submerged bottomland leased from the State of Florida, is an existing fixed pier wet slip
marina containing approximately 89 boat slips. There are four additional aluminum floating
docks to allow for staging area for boats, which have been just launched, or awaiting retrieval.
The fixed pier system consists of two main docks eight feet in width and extending north 272
feet from the seawall. Additional piers extending east and west from the main pier are located
about halfway out and at the northern extremity. Construction is of marine grade pressure
treated pine. The condition of the wood and pilings is fair and show some signs of storm
damage. Useful lives of docking systems of this type are typically around 25 years, dependent
on environmental conditions and maintenance. Effective age is estimated at 20 years, which is
the approximate age of the marina.
Individual finger piers are typically 23.75 feet, with tie poles for the bow about 20 feet further
out. The slips accommodate vessels in the 35 to 40 foot range, and some 50 to 70 foot on the
pier ends, Most slips are double loaded, meaning that finger piers are located between every
other boat, although end slips on the outboard series are built for single loading. A power
pedestal is located between slips, providing electricity, telephone an cable television
connections. In addition, water lines run the length of the pier.
Two fueling points are provided. The first is located landside, just east of the easterly launching
point for the high and dry facility. A second fuel point is located at the southeasterly end pier,
which measures about 84 feet overall, somewhat longer than the other end piers. Two, 6,000
gallon underground fuel tanks are reported by the owner, one devoted to diesel and one to
marine gasoline.
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PUBLIC RESTROOMS
There is an additional 392 Sq. Ft. masonry block men and women’s public restroom on the
dockside.
BOAT RENTAL TIKI HUT
One-story wood frame building with deck located near the northeast corner of the site along the
waterfront with a total estimated square footage of 460 sq. ft. utilized as a boat rental shop. The
building is equipped with two wall-mounted air conditioners. There is access to 8 boat lifts for
rental boats.
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RESTAURANT & BAR
A 3,220 square foot two story wood framed restaurant and bar. Construction is typical pole
shed, with large wooden, pressure treated members, with high pitched gable roof covered with
green metal roof panels and lighted signage near the peak. The building has been updated and
porch area covered in since first construction. There is a separate bar and dining area, with a
small upstairs dining room for private events and a separate office. The bar has a full liquor
license. The building is in average to good condition with an overall effective age of 5 to 10
years.
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RETAIL CENTER
The property is also developed with three retail facilities. Two of the structures were originally
built as part of a larger shopping center in 1963, and were vacant for several years prior to
acquisition by the previous owner. Portions of the center were demolished leaving the two
structures, one lying north and south parallel to the Pinellas Bayway near the northeast corner of
the site, referred to as the north retail building, and another lying east and west near the
southwest corner of the site, referred to as the south retail building. Both are of similar masonry
construction, typical of strip retail centers in the area.
Based on scaling the survey provided and on county records the north building was calculated at
13,544 gross square feet, while the area of the south retail building was calculated at 7,420
square feet.
The northerly building is divided to 12 demised premises, with eight developed to typical
retailing and four located to the rear of the storefront and utilized for storage, maintenance and
the dock master’s office. The south retail building is generally similar to the north retail
building but somewhat smaller, and divided into seven demised premises. The westerly end of
the building, approximately 2,598 square feet, is occupied by the marine engine repair facility
operated by the owner of the marina. Four additional spaces are typical retailing or office use,
with a storeroom and small rear area of about 200 square feet occupied as a contractors office.
Construction appears typical for strip retail facilities. Flooring is slab on grade. Exterior walls
are concrete block with stucco finish; a majority of the front of the buildings is faced with
storefront glass in aluminum frames. Access is provided by single or double three-foot glass
entry doors, while rear doors are typically hollow metal. Ceiling heights appear to be ten feet,
and are primarily drywall, but portions are suspended.
A third retail building was constructed in 1993 and 1994. This building is located at the
southeast corner of the existing north and south retail buildings, forming an “L”. The finished
floor elevation is 11 feet, pursuant to flood regulations, requiring masonry foundation walls and
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fill, topped with concrete slab. The building measure 60 by 120.4 feet, or 7224 square feet, and
is divided to six possible retail bays, each with restroom facility and separate storefront entry.
However, the two southerly bays are both occupied by a convenience store, and the four
northerly bays are occupied by a hardware store.
In all retail buildings air conditioning is provided by split systems, with compressors located to
the rear of the buildings. Lighting is typically surface mounted fluorescent, with lay-in fixtures
in suspended areas. Floor coverings are typically commercial grade carpet or vinyl tile. Interior
wall finishes are typically painted drywall, although some areas have vinyl wall coverings and
rear storage areas and corridors have wood paneling.
The two original retail buildings were extensively remodeled in about 1991, and are in generally
good condition. Individual units have been upgraded as leases changed. We give the retail
center an overall effective age of 15 to 20 years based on 50 years economic life.
There is an additional forecourt and canopy leased by the convenience store
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PROPOSED IMPROVEMENTS
The wet slip marina was recently approved
for complete demolition and construction
of a new marina with 86 rental wet slips, 6
temporary slips for the high and dry, and
an additional ramp to contain 4 jet skis.
The docks will be constructed by
ShoreMaster and will be floating concrete
structures with full utility and power
connections. Slips along the outside will
have a built-in wave attenuator and a total
of 30 slips of 40 feet in length and having
lifts to store boats above the water level.
Six other slips along the seawall will be
approximately 30 feet in length and also
have lifts. Two docks will extend out in
the middle section of the marina and they will provide a total of 17 slips of 38 feet in length, 26
slips of 42 feet, and 7 slops of 50 feet. The overall weighted average slip size is 40 feet. The six
temporary slips will be located along the seawall near the drop in and take out points for the
travel lift.
It is an extraordinary assumption that the wave attenuator will adequately protect the slips and
boats.
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Utilities
All utilities are available to the site including sewer, water, electricity, gas, and telephone
services.
Ownership
According to Pinellas County Public Records the property is owned by:
Tierra Verde Marina Holdings LLC
rd
14001 63 Way N
Clearwater, FL 33760-3619
The submerged land is listed as
Fl Int Imp Fund Tre
Tierra Verde Marina Holdings LLC Lse.
rd
14001 63 Way N
Clearwater, FL 33760-3619
Sales History and Analyses
The property was purchased by Tierra Verde Marina Holdings LLC (Grantee) on December
2005 from a Limited Partnership, Marina Opportunity 1 (Grantor) recorded in the Pinellas
County records as a multiple sale on 12/22/2005 for $7,610,000 (Book 14826 Page 260) and
reportedly the assumption of an existing loan of approximately $13,000,000 – for a total
purchase price of $20,000,000. A previous sale was recorded in June of 1998 in an unqualified
sale for $8,800,000.
Brief Legal Description
Parcel 1:
Lots 1, 2, 3, 4, 5, 6 and 7, BLOCK 23, TIERRA VERDE UNIT ONE, according to the plat
thereof as recorded in Plat Book 57, Pages 42 through 55, inclusive, of the Public Records of
Pinellas County, Florida.
Parcel 2:
Tract “D”, TIERRA VERDE UNIT ONE, according to the plat thereof as recorded in Plat Book
57, Pages 42 through 55, inclusive, of the Public Records of Pinellas County, Florida.
Parcel 3: (a vacated Alley OR Book 5899, Pages 1220 through 1222).
Parcel 4:
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Leased submerged land:
“A portion of submerged land lying in Section 17, Township 32 South, Range 16 East, Pinellas
County, Florida, described as follows:
From the most Northerly corner of Tract “D” also being the most easterly corner of Lot 34,
Block 17, TIERRA VERDE UNIT ONE, as recorded in Plat Book 57, Pages 42 through 55,
inclusive, of the Public Records of Pinellas County, Florida, as a point of reference; thence
South 67° 09’ 46” East along said Northeasterly line of said Tract “D” 25.00 feet to the Point of
Beginning; thence continue South 67° 09’ 46 East along said Northeasterly line and along the
Northeasterly line of Lot 1, Block 23 in said subdivision, 535.64 feet: thence North 22° 50’ 14”
East, 340.12 feet: North 67° 09’ 46” West, 535.64 feet: thence South 22° 50’ 14” West, 340.12
feet to the Point of Beginning. Containing 182.182 square feet more or less, or 4.18 acres mre
or less.”
Zoning/Land Use
C2 – General Retail, commercial and limited services district Pinellas County.
Census Tract
The recorded census tract number is 201.03
Flood Zone Determination
Zone “V14” and “A-11” areas considered flood prone, as noted on FEMA Panel Number
12103 C 0278 G Effective Date September 3, 2003, and requiring finished floor elevation
eleven feet above mean sea level, some four to five feet above grade.
Assessment & Taxes
According to the Pinellas County Tax Collector’s Office, the 2007 property assessment and
gross real estate taxes to the subject property are as follows:
Parcel Number:
Just (Market) Value:
Total Assessment:
Real Estate Taxes:
17/32/16/90828/000/0040 (Wet & Dry)
$5,170,000
$5,170,000
$95,345.74 (currently due as of Feb 19, 2008)
Parcel Number:
Total Assessment:
Real Estate Taxes:
17/32/16/00000/340/0100 (submerged land)
$1,481,600
$1,298,700 ($182,900 exempt)
Parcel Number:
17/32/16/90828/023/0010 (retail center)
$7,520,000
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Total Assessment:
Real Estate Taxes:
$7,520,000
Total Real Estate Taxes: $257,981.22 (currently due as of Feb 19, 2008)
Marketability
It is anticipated a 12-18 month period would be required to fully market the property.
Concurrency
Concurrency laws are in effect in Pinellas County at this time. It is presumed that the current
improvements conform to the present concurrence laws in the State of Florida and Pinellas
County.
Environmental Issues
The site contains two, 6,000 gallon underground fuel storage tanks and a 10,000 divided tank,
but these are of recent construction and assumed to meet current environmental standards.
At the time of my inspection there were no apparent stained soil areas, improperly disposed
drums or petroleum containers or stressed vegetation that would be cause for concern.
Interested parties are hereby notified that I am not a trained environmental inspector and
concerned interested parties are advised to employ the services of a trained, licensed and
professional environmental inspector for a more reliable determination of environmental issues.
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PINELLAS COUNTY MARKET AREA
GENERAL AREA DESCRIPTION:
The subject property is located on the island of Tierra Verde an unincorporated area of
Pinellas County, south of St. Petersburg and St. Pete Beach with access to the Intracoastal
Waterway leading to the Gulf of Mexico. Pinellas County, along with Hillsborough, Pasco,
Citrus, Polk, Manatee, Sarasota and Hernando Counties, comprises the greater Tampa Bay
Area. The estimated total population as of April 1, 2007 was 4 million and the area is one of
th
the fastest growing, and 19 largest metropolitan areas in the United States. In 2000 the U.S.
Bureau of Labor Statistics reported that the “Bay Area” had the largest percentage increase in
employment of the nation’s 24 metropolitan areas with one million or more employees.
Newsweek magazine ranks the Tampa Bay area tenth in the nation for projected employment
gains between 1998 and 2025. It is the only Florida metropolitan area listed in the top 10.
The Bay Area has easy access to local, national, and international markets due to a good
transportation system, a major international airport, and deep-water port with access to the
Gulf of Mexico. The Tampa/St. Petersburg/Clearwater area is known for its fine quality of
life, recreational activities, and progressive community business atmosphere. It is part of an
area sometimes referred to as the Sunbelt, which extends into the Orlando area and contains
numerous vacation attractions, including Disney World, Sea World, Busch Gardens, and
beach area resorts.
Pinellas County has water frontage on both the Gulf of Mexico and Tampa Bay with 414 miles
of shoreline. The Pinellas peninsula contains the largest part of the county’s 265 square miles.
The county is fringed on the west by a narrow chain of offshore islands with Clearwater Beach
being the most northerly and St. Petersburg Beach the most southerly, all connected by bridges.
Florida taxes and incentives are designed to provide the best business investment opportunity
possible for its developing indigenous businesses and for those seeking expansion
opportunities. Its attractive tax structure, a legislative and regulatory climate conducive to
economic activity, incentives, finance and business assistance programs, low occupancy and
construction costs and adequate space in which to expand are all fueling the accelerated growth.
Florida’s economy remains one of the healthiest in the nation.
There are no personal income or personal property taxes, and the first $25,000 of assessed
valuation of an owner occupied homestead is exempt from real property taxes.
Population
In 2007, the Tampa Bay Region had a population of about 4 million, or 22.5% of the state’s
total.
Labor Force and Employment
In 2005, the Tampa Bay Region had a labor force of nearly 1.93 million, or about 22% of the
23
state’s labor force. In 2005, the Tampa Bay Region’s unemployment rate of 3.7% was lower
than the state and national averages.
Income
The Tampa Bay Region had a total personal income of nearly $124.1 billion in 2004.
The Tampa Bay Region’s 2004 per capita income of $31,875 is higher than the state average,
but below that of the nation.
International Trade and Investment
There were 163 foreign-affiliated companies in the Tampa Bay Region in 2005.
High Tech Capacity
The Tampa Bay Region reported 3,449 patents from 2000 to 2005. This accounted for about
19% of the state’s patent activity over the same time period.
Cost of Living
The cost of living in the Tampa Bay Region is slightly less than the national average.
In 2005, The Tampa Bay Region’s median home price of $224,367 was about 5% lower than
the state average and about 8% higher than the national average.
Table 1
In 2005, Florida’s Tampa Bay Region was home to nearly 4 million people, an increase of
more than 105 thousand people from 2004. This region’s growth rate continues to outpace
that of the nation, with domestic migration accounting for 90% of its net migration. With
these new residents, the Tampa Bay Region’s racial and ethnic mix continues to become
increasingly diverse. The population of the Tampa Bay Region is relatively older than that of
the rest of the state.
Population Growth
For the past ten years, the Tampa Bay Region’s population has grown at a rate faster than that
24
of the nation, but slightly slower than that of Florida as a whole.
Between 1995 and 2005, the Tampa Bay Region’s population grew by over 675,400 people,
or 20.3%, while that of the state and the nation grew by 22.4% and 11.3%, respectively.
From 2004 to 2005, this region gained about 105,300 people, at an annual growth rate of
2.7%, to bring its total population to nearly 4 million people.
Migration
In 2005, net migration accounted for an increase of over 103,200 people into the Tampa Bay
Region. Of this increase, domestic migration accounted for about 90% and international
migration about 10%.
Pasco County received the largest number of net domestic immigrants, totaling nearly 22,000.
This county alone accounted for 24% of the Tampa Bay Region’s domestic migration.
Hillsborough County led the region in net international migration, with about 4,400 net
international immigrants, which accounted for 41% of the Tampa Bay Region’s net
international migration.
25
Population by Age
The Tampa Bay Region has a slightly older population than the rest of the state.
In 2005, 30% of the region’s population, and 32% of Florida’s population, were less than 25
years old.
At the same time, the elderly population (65 and over) accounted for 19% of the Tampa Bay
Region’s population and 17% of the population of the state.
Racial & Ethnic Diversity
Much like the rest of the state, the Tampa Bay Region’s racial and ethnic mix has become
increasingly diverse over the last decade.
From 2000 to 2005, the Non-Hispanic White share of Tampa Bay Florida’s population
dropped by about four percentage points.
26
During this same time period, Tampa Bay Florida’s Hispanic population grew to reach 12.1%
while that of the state as a whole grew to about 19.5%.
Between 2000 and 2005, Tampa Bay Florida’s Asian, Pacific Islander, and Black populations
also continued to grow
In 2005, the Tampa Bay Region had a civilian labor force of nearly 1.93 million, or 22.2% of
the state’s total labor force. With a regional unemployment rate of 3.7%, the Tampa Bay
Region employed more than 1.85 million people in 2005, a 21.8% increase from 1995.
Labor Force and Unemployment
Of the region’s eight counties, Hillsborough continued to have the largest labor force in 2005,
accounting for 30.3% of the region’s total labor force.
Within the region, Sarasota County had the lowest unemployment rate, at 3.0% in 2005
The Tampa Bay Region’s unemployment rate has remained lower than the state and national
averages for the last ten years.
27
In 2005, the Tampa Bay Region’s unemployment rate of 3.7% was one-tenth of a percentage
point below the state average, and 1.4 percentage points below the national average.
Employment
The Tampa Bay Region’s rate of employment growth has remained relatively close to that of
the state as a whole for the past ten years.
Between 1995 and 2005, the region’s employment grew at an average annual rate of 2.0%,
while that of the state grew at an average annual rate of 2.3%.
In 2005, the Tampa Bay Region employed nearly 1.86 million people, making up 22.3% of
the state’s total employment.
28
Over the last ten years, the Tampa Bay Region’s total employment has increased from
1,522,974 in 1995 to 1,854,862 in 2005, an increase of about 21.8%, or over 331,888
employed people.
The Trade, Transportation & Utilities and Professional & Business Services industries
accounted for the largest shares of the Tampa Bay Region's 2005 employment (total
employment numbers below vary from those used in previous graphs due to different
methods of data collection in the BLS surveys used).
Personal Income
In 2004, the total personal income of the Tampa Bay Region reached over $124 billion,
which accounted for about 23% of the total personal income of the state.
29
Of the region’s eight counties, Hillsborough County accounted for the greatest share of
personal income, totaling nearly $35 billion, which was about 28% of the region’s total
personal income in 2004. After Hillsborough, Pinellas County contributed the second largest
amount of personal income of $33.0 billion.
During this same period, Sarasota led the region with the highest per capita income of
$42,933.
Total Personal Income
Total personal income of the Tampa Bay Region has had a growth pattern nearly identical to
the state average and faster than the national average over the past ten years.
Between 1994 and 2004, Tampa Bay Region’s total personal income increased by 76%.
During the same period, total personal income of the state and the nation grew by 77% and
66%, respectively.
30
Per Capita Personal Income
Although the growth rate of total personal income in the region was faster than that of the
nation, the Tampa Bay Region’s per capita income has remained about the same as the state
and the national averages over the past ten years.
While the Tampa Bay Region’s 2004 per capita income of $31,875 was about 4% lower than
the national average, it was about 1% higher than the state average. This region’s 10 year
growth rate of 48% is 3% higher than the state’s, and 1% lower than the nation’s.
Exports
The Tampa Bay Region’s exports of goods to overseas markets were estimated to be about
$2.7 billion in 2004.
31
It is estimated that in any given year, the Tampa Bay Region accounts for an eighth of
Florida’s total export of goods.
Foreign-Affiliated Companies
As of 2005, there were over 160 foreign-affiliated companies in the Tampa Bay Region,
employing more than 8,000 people.
The majority of foreign-affiliated firms in the Tampa Bay Region are located in Pinellas and
Hillsborough Counties.
Foreign Affiliated Companies in the Tampa Bay Region: 2007
Number of
Companies
County
Total
Employment
Average
Employment
Citrus
0
0
n.a.
Hernando
1
5
5
62
2955
48
Manatee
9
260
29
Pasco
2
86
43
Pinellas
61
3982
65
Polk
13
423
33
Sarasota
15
355
24
163
8066
49
Hillsborough
Total
Source: Dun & Bradstreet; Enterprise Florida Inc.
High Tech Rankings
The Milken Institute ranked 315 metropolitan areas for their high tech capacity, in the Tampa
Bay Region, Tampa-St. Petersburg-Clearwater metropolitan area ranks 51st in the nation in
high-tech capacity. All three metropolitan areas in this region have location quotients less
than 1 indicating a low concentration of high-tech activity than the nation on average. In
terms of the relative output growth, Tampa-St. Petersburg-Clearwater metropolitan area has
grown at a rate higher than the U.S. average (U.S. average growth = 1).
32
Note:
* Composite “Tech-Pole” Index is equivalent to the percent of national high-tech real output
multiplied by the high-tech real output location quotient for each metropolitan area.
** The Location Quotient (LQ) equals percent of output in metropolitan area divided by
percent of output in the United States. If LQ > 1.0, the industry is more concentrated in the
metro area than in the nation on average.
Patents
Patents are perhaps the single best way to measure the commercialization of knowledge.
They indicate a region’s R&D or product development capacity. According to the U.S. Patent
Office, there were nearly 18,000 patents filed in the State of Florida from 2000 to 2005.
The Tampa Bay Region reported 3,349 patents from 2000 to 2005. This accounted for about
19% of the state’s total patent activity over the same time period. Pinellas County led the
region with 1,366 patents from 2000 to 2005, followed by Hillsborough with 779 and
Sarasota with 523.
Cost of Living
The Tampa Bay Region’s cost of living index represents the average of the cost of living indices of
the Bradenton, Sarasota, St. Petersburg-Clearwater, and Tampa metropolitan areas.
According to the ACCRA cost of living index, the overall cost of living in the Tampa Bay Region is
slightly less than the national average.
The Tampa Bay Region has relatively lower cost of living indices than the national averages for
33
grocery items, utilities, healthcare, and miscellaneous goods and services.
Housing Costs
The Tampa Bay Region’s median home price is the average median home price of the
Sarasota-Bradenton, Lakeland-Winter Haven and Tampa-St. Petersburg-Clearwater
metropolitan areas.
The median home price in the Tampa Bay Region grew by 30.7% from 2004-2005, and was
higher than the national average.
In 2005, the Tampa Bay Region’s median home price of $224,367 was about 5% lower than
the state average and about 8% higher than the national average.
34
REGIONAL MAP
35
AREA MAP
36
NEIGHBORHOOD MAP
37
NEIGHBORHOOD
The subject is located on the island of Tierra Verde, a census-designated place (CDP) in
Pinellas County, Florida. The population was 3,574 at the 2000 census. Located at the end of
Tierra Verde is Fort De Soto, a Pinellas County Park. According to the United States Census
Bureau, the CDP has a total area of 667 acres 1.5 mi of it is land and 3.1 mi of it (67.69%) is water.
In its short history, this community has been best known for its wealth of marina space,
waterfront property, and the wealth of the people who live there. Part of the community's
distinction comes from its lack of organized government. Though the idea of incorporating
Tierra Verde as its own city is always under discussion in some circles, with an active
Community Association.
Tierra Verde was once 15 islands covered with mangroves, pines and bush. These islands
ranged in size from only a few acres to the largest, Cabbage Key, having over 289 acres. For
centuries, Indians used the islands for ceremonial and burial grounds. A marker remains on
the east side of Pinellas Bayway, just north of East Shore Drive, where Indian relics were
found in a typical shellmound, excavated when the road was built to Fort DeSoto Park. The
islands were sacred ground to Indian nations as far back as 500 years ago, archaeologists
suggest, and deadly conflicts occurred when outsiders trespassed.
Then the Spanish explorers came. One explorer, Ponce De Leon, came to the area in 1513,
and again in 1521, when he received the wound that he later died from after returning to
Cuba. Later, Hernando De Soto, Navarez and John Ortiz explored, and then pirates and
buccaneers sailed the area.
In 1848 Robert E. Lee, then a lieutenant colonel in the U.S. army, recommended that Mullet
Key be used for coastal defense in Florida. During the Spanish-American War of 1898, Fort
De Soto was built on Mullet Key. Remains of the fort still stand, along with fortifications on
Egmont Key. In 1948 the federal government sold Mullet Key to Pinellas County for park
and recreation facilities, now Fort De Soto Park.
Early settlers to the area included Baltimore sea captain William Bunce and Silas Dent, who
with his brother had a dairy farm. Dent lived on Cabbage Key until he died there in 1952. The
Roberts family was among the early settlers of Pass-A-Grille and Tierra Verde. George
"Florida" Roberts was a fishing guide for figures such as land developer Walter Fuller, Cecil
B. Detre, and John Wanamaker. The thousands of tarpoon caught by Roberts and his clients
can be found as far away as Alexandria, Egypt in the home of Sir Harry Rofe.
Although two homes were built on Monte Cristo in 1923, and one in 1946, things were quiet
until the mid-1950's when a Dr. Bradley "Doc" Waldron went to Tallahassee and persuaded
the State of Florida to sell him Pine Key, Cabbage Key, Pardee Key and the surrounding bay
bottom. This was about the same time construction of the old Skyway Bridge began. Waldron
formed a partnership with two builders from Detroit, Hyman and Irving Green, who became
majority owners of a group of 36 corporations. They named their island investment "Green
Land."
38
Backed by the Murchison brothers, Texas oilmen who would eventually own the Dallas
Cowboys, the developers dredged and filled the island, building sea walls in 1960 and the
first homes in 1962.
On June 30, 1961, the Tierra Verde Community Association, Inc. Articles of Incorporation
were filed with the State of Florida, and the original Declaration of Restrictions and
Covenants were recorded in public records in August that same year.
Things changed in 1963, when the developers died in a plane crash over Lake Okeechobee.
The Murchisons refused to sell the property piecemeal, so it sat untouched until 1977, when
they teamed with another developer to finish what they had started.
Billy Moore built his popular restaurant in Tierra Verde in 1979, and he recalls just 41 homes
on the island when he arrived. But things changed again in 1984, with a new Pinellas Bayway
exit ramp off Interstate 275.
Suddenly, Tierra Verde was a quick drive from Tampa.
In 20 years, the island has become synonymous with the best Pinellas has to offer.
Facts
•
Tierra Verde, which means "Green Land," is a mostly manmade island made up of
several smaller islands, including Cabbage Key and Pine Key.
•
In 1948, Life magazine called Cabbage Key, the precursor to Tierra Verde, "an idyllic
but insect-infested strip of beach and mangrove jungle off Tampa Bay."
•
Not including Tierra Verde's hundreds of private docks, its marinas have 745 boat
slips -- about one for every five people.
•
With 3,574 people, Tierra Verde is larger than these six barrier island beach towns:
Belleair Beach, 1,751; Belleair Shore, which had 60 in 1990; Indian Shores, 1,705;
North Redington Beach, 1,474; Redington Beach, 1,539; and Redington Shores,
2,238.
39
SUBJECT PHOTOGRAPHS
2006 Aerial
40
Tierra Verde Marina
Pinellas Bayway looking south from NE corner of property
41
Entrance off of Pinellas Bayway
Entrance towards SE corner off of Pinellas Bayway
42
Pinellas Bayway looking north from SE corner
Madonna Blvd looking west
43
Looking NW from SE corner
Entrance off of Madonna Blvd
44
Looking East from SW corner of property
Looking north from SW corner of property
45
Looking south from NW corner of property
Looking east along seawall from NW corner
46
Looking west along sea wall from NE corner of property
View of wet slips looking west
47
View of wet slips looking NE from SE corner of property
Marine gas pumps on end of pier
48
View of “High & Dry” from slips
North side of “High & Dry”
49
East side of “High & Dry” looking south
East side of “High & Dry” looking north
50
South side of “High & Dry” looking west
South side of “High & Dry” looking east
51
West side of “High & Dry” looking north – note Cell Tower.
West side of “High & Dry” looking south
52
North side of “High & Dry” looking east
Hanger doors closed on SW corner of building
53
View of hanger doors open
View of racking system on west side of building
54
Racking system center of building
Further view of racking system at center of building
55
Racking system on east side of building
Boat Forklift
56
Second boat forklift
Marine gas and diesel pumps dock side
57
Men and women’s public restrooms
Further view of restrooms
58
Boat rental dock with lifts
View looking SW towards boat rental dock and restaurant
59
Boat rental “Tiki” Hut
Further view of “Tiki” Hut at the NE corner of property
60
Leased restaurant looking NW
Looking NE towards Bar entrance to Restaurant
61
View of restaurant and bar looking south from docks
Interior of bar area
62
Dining room
Further view of dining room
63
Second floor private dining room
View looking SW towards North retail building
64
Underground fuel tanks for marina
Parking area looking south
65
North building looking south
North side of North Building and Harbor Master’s Office
66
Interior of Harbor Master’s Office
Café at NE corner of North Building
67
Interior of Café
Post Office and Island Gift Shop
68
Salon Mimi
Interior of Salon
69
Bait Shop
Gym
70
Interior of gym
Retail – currently vacant
71
Real Estate Sales Office
Interior of Real Estate Sales Office
72
Hardware store – Building 3
Interior of Hardware store – Building 3
73
Convenience Store and Sandwich Shop SE corner of building 3
Interior of Convenience Store
74
Canopy and forecourt for gas pumps for convenience store
Yacht Sales – South Building
75
Interior of Yacht Sales Office
Dry Cleaners
76
Dentist Office
Interior of Dentist Office
77
Marine Parts & Service
Interior Marine Parts & Service
78
Marine Boat & Yacht Sales
Interior of Marine Boat & Yacht Sales Office
79
West side of South Building with covered boat /engine repair area
North side of South Building – Marine Parts & Service
80
Further view looking NE towards Marine Repair/Service area
Typical view of rear side of strip center with individual utility meters
81
Electric station
Propane tank at rear of café
82
View of rear of North building looking towards entrance to Business Office
Leased fresh produce stand at SE corner of property
83
THE OBJECTIVE OF THIS APPRAISAL
The Objective of this appraisal is to estimate the Market Value of the Fee Simple Estate of the
property described herein as defined by agencies that regulate federal financial institutions as:
“The most probable price, which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller acting prudently and
knowledgeably, and assuming the price is not, affected by undue stimulus. Implicit in this
definition are the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they think is their best
interest;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and
5. The price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale.” (1)
Fee Simple Estate is defined as the “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.”(2)
Intended User
The Use of this appraisal is limited to our client Encore Bank, for establishing the Market
Value “As Is” and “As Completed” in Fee Simple for underwriting purposes. My
responsibility is limited to our client and does not extend to a third party. In addition, any
claims against me for any reason whatsoever are limited to the amount of fees paid to me for
this appraisal assignment.
Neither the value estimate nor any of the contents of this appraisal may be disclosed to or
relied upon by third parties.
(1.) The Appraisal of Real Estate, Eleventh Edition, the Appraisal Institute, 1996.
(2.) The Appraisal of Real Estate, Eleventh Edition, the Appraisal Institute, 1996,
pp. 137.
84
Effective Date of this Appraisal
The effective date of this Summary Appraisal is February 1, 2008 and the date of the Report
presented is March 5, 2008.
Scope of Work
Extent and Process of Collecting, Confirming and Reporting Data - Scope of the Work
Assignment
In preparation for this appraisal I have:
-
Contracted with Encore Bank to prepare Summary Appraisal
-
Met with the owner, and inspected the exterior and interiors of the Subject
Property Feb 1, 2008,
-
Reviewed prior appraisal conducted by H. Linwood Gilbert, MAI & Travis
McDaniel of Urban Realty Solutions, dated July 2, 2007 confirming details with
my personal inspection,
-
Took extensive photographs of the exterior and interior reflecting the condition of
the property overall,
-
Reviewed several data bases for similar sales,
-
Reviewed municipal and assessor records in Pinellas, Hillsborough, Pasco and
Manatee Counties,
-
Confirmed zoning and permissible uses,
-
Reviewed State publications and recent forecasts for economic growth for Tierra
Verde Island, Pinellas County, and Tampa Bay in general,
-
Reviewed statistics and development plans for the Marina,
-
Reviewed prior reported sales of the subject and comparables,
-
Reviewed market conditions and current listings similar to the subject, and
attempted to confirm data of the selected comparables used for direct comparison
to the subject with principals in each transaction..
-
Developed Cost analyses utilizing Marshall & Swift’s SwiftEstimator,
-
Developed income approach utilizing current rent roles provided by the client and
by reviewing typical leases of similar properties,
-
Reviewed and made flood plane determination,
-
Reconciled the three approached utilized, with emphasis placed on the Sales
approach, considered most reflective of the market activity
85
Highest and Best Use
To determine the value of the real property it is necessary to determine the Highest and Best
Use of the property as though vacant and available for use at its Highest and Best Use.
One major objective of property analysis is to develop a conclusion about the Highest and
Best Use, or most probable use of the site and the improved property. Highest and Best Use is
that reasonable and probable use that supports the highest present value, as defined, as of the
effective date of the appraisal. In estimating the Highest and Best Use, the appraiser goes
through four considerations:
Possible Use:
Determine the physically possible uses for the subject site.
Permissible Use:
Determine which uses are legally permitted for the subject site.
Feasible Use:
Determine which possible and permissible uses will produce a net
return to the subject site.
Most Profitable Use:
Determine which uses, among the feasible uses, is the most
profitable use of the subject site
The Highest and Best Use of the land as if vacant and available for use may be different from
the Highest and Best Use of the improved property. This is true when the existing
improvements do not constitute an appropriate use. The existing use will continue unless and
until land vale in its Highest and Best Use exceeds the sum value of the entire property in its
existing use and the cost to remove the improvements.
Since the appraisal of the subject property is based on a particular premise of use, the Highest
and Best Use analysis determines just what that premise should be. A Highest and Best Use
analysis consists of considering the Highest and Best Use of a property under two
assumptions: (1) as a vacant and available site, and (2) with the property improved. These
two assumptions on Highest and Best Use are correlated into one final estimate of highest
and Best Use.
As Though Vacant
It is outside of the scope of this assignment to determine the use that would best utilize the
site. Our evaluation is confined to the current zoning as CG – Commercial General.
As Presently Improved
Would be considered a conforming use.
Possible Use
It is outside the scope of this assignment to make an exhaustive analysis that would result in a
86
specific determination. The current zoning would allow for many uses that would support the
current and future development.
Permissible Use
The property is currently zoned CG - Commercial General, Pinellas County, allowing for a
variety of commercial and residential uses. The subject’s present use is legally conforming.
Most Profitable Use
To determine the most profitable use an extensive study would need to be done, taking into
consideration the many economic, governmental, environmental, social, local code
restrictions, and other factors. Hence, the answer to this question is beyond the scope of this
assignment, which is to determine its present market value “as is”, which would be deemed
to be the most profitable at this time for the purpose of this assignment.
Conclusion of Highest and Best Use
It is outside of the scope of this assignment to develop a comprehensive Highest and Best
Use Analysis. This assignment seeks to determine if the current use is legally possible,
permissible and feasible and will result in an economic return to the owner. Based on the
above analysis it is my opinion that the highest and best use for the subject property at this
time and for the purposes of this assignment is “as is”.
87
INDICATORS OF VALUE
The estimation of a real property’s market value involves a systematic process in which the
problem is defined, the work necessary to solve the problem is planned, and the data required
is acquired, classified, analyzed and interpreted into an estimate of value. In this process,
three approaches are considered, and utilized if appropriate:
THE SALES APPROACH
THE COST APPROACH
THE INCOME APPROACH
The Sales Approach also referred to as the Market Approach, involves the comparison of
similar properties that have recently sold or similar properties that are currently offered for
sale, with the subject property. The basic principle of substitution underlies this approach as
it implies that an informed purchaser would not pay more for a property than the cost to
aquire a satisfactory substitute property with the same utility as the subject property in the
current market.
The Cost Approach is a method in which the value of a property is derived from creating a
substitute property with the same utility as the subject property. In the Cost Approach, the
appraiser must estimate the market value of the subject site as if vacant, by using the direct
sales comparison method, then estimate the reproduction cost new of the improvements.
Depreciation from all sources is estimated and subtracted from the reproduction cost new of
the improvements. The depreciated reproduction cost of all improvements is then added to
the estimated site value with the results being an indicated value by the cost approach.
The Income Approach is a process, which discounts anticipated income streams (whether in
dollar income or amenity benefits) to a present worth figure through the capitalization
process. A review of typical rents and leases is undertaken along with an examination of the
current leases of the property along with the expenses related to the management of the real
estate. After the expenses we arrive at a Net Operating Income or NOI, which is then divided
by the current capitalization rate (CAP rate) relevant to that particular property to arrive at the
valuation.
The value estimates as indicated by the approaches utilized are then reconciled into a final
estimate of the property’s value. In the final reconciliation, the appraiser must weigh the
relative significance, desirability, amount and accuracy of data, and applicability of each
approach as it pertains to the type of property and the “scope of work” required in the process
to arrive at a credible valuation.
For the purposes of this appraisal, we have utilized all three approaches in arriving at our
value estimate.
88
SALES COMPARISON APPROACH
The valuation of an improved property is most appropriately processed through the application
of the Sales Comparison Approach (market approach). The rationale being that the Principal of
Substitution suggests that an informed and prudent purchaser will pay no more for a property
than the cost of acquiring a substitute with the same amenities and potential uses.
In the application of the Sales Comparison Approach and reflective of the Principle of
Substitution, recent sales of comparable or competitive transactions that have taken place in the
open market are employed as a guide to a most probable value. It is for this reason that a search
has been made through authoritative and knowledgeable sources for data relating to recent sales
activity of sufficiently similar properties to provide a market derived foundation for the value
estimate. Market derived indicators are then compared to the characteristics of the subject in an
adjustment process wherein various elements of value including physical characteristics might
be reflected upon and adjusted if and when appropriate and to an appropriate degree.
For purposes of comparison the appraiser has the option of several alternative units of
comparison, the most notable being the direct overall parcel to parcel comparison or with the
sales broken down into a “unit of comparison” such as price per front foot, price per square foot
or price per acre, etc. The selection of the unit of comparison is dependant or the character of
the property and the observed actions of the market participants, i.e. buyers and sellers.
As a basic fundamental to the procedure, it must be emphasized that an accurate understanding
of the characteristics of the property in question, both subject and sales, are a highly necessary
ingredient as they provide the factual foundation upon which the adjustment process is applied
and conclusions reached.
The following is a brief discussion for the reasoning behind the various adjustment categories. It
should be noted that not all categories in all comparisons will have an indicated adjustment as
either no adjustment is felt to be a appropriate or necessary or there may be counteracting forces
within the category tending to offset one another.
Time has reference to the potential for changes in market related values between the time of the
sale and the date of the appraisal which are, as a result of the changes in market conditions,
caused by inflation, deflation, changes in supply and or demand, etc.
Location adjustments are appropriate if the location characteristics of the properties are
significantly different. It is noted that no location is absolutely desirable or undesirable but vary
in degree of relationship.
Topography refers to the topographical characteristics of the properties in question and takes
into consideration the level relationship of the parcels to their frontage, the interior
characteristics of the property with the degree of magnitude of adjustment predicated on the
reflection of the market and not necessarily the direct cost of bringing the properties to a
common grade or character as would be developed via a “cost to cure” estimate.
89
Utilities is a category in which the accessibility and availability of various public utilities might
be reflected on which again is a reflection of the contributory value of the item and not
necessarily the direct cost of accessibility.
Size and Shape addresses the frontage, width, depth area mass of the properties considered.
The desirability and adaptability for the envisioned highest and best use are of major concern
with the size portion of the heading reflecting the area of the property while the shape refers to
the geometric shape of the same and its adaptability.
Use and Desirability are categories where the potential use of the property is noted if a
difference exists, while desirability affords an opportunity to reflect upon the general overall
appeal of the parcel for its perceived use.
Frontage affords the opportunity to consider the relationship of the area of the property to its
frontage and the quality of both.
Other is a category reserved for all other adjustments deemed appropriate by the appraiser after
review of the salient characteristics of the subject and comparable property.
All the adjustments, if and when made, are then combined into a total adjustment, which in turn
is applied against the unit of comparison of the sale to result in an indicated value for the
particular property in review with the range of adjusted values then reviewed, reanalyzed and
correlated to an indication of value.
A thorough search was made of the subject’s market area using LoopNet, IRIS, MLS, and
municipal records to locate similar sales and listing. Over 30 transactions were analyzed, of
which four were utilized for the marina, and four for the retail center.
The period of the recorded sales transactions is July 2005 to February 2008.
The following is a summary of each property.
90
91
MARINA COMPARABLE SALE #1
12458 145th Lane N
Largo, FL 33774
Largo Intracoastal Marina
Parcel ID: 07/30/15/00000/3100/0200 Pinellas County
Sale Date: 7/2005
Sale Price: $6,500,000
Grantor: Largo Marine Trust No 1 u/t/d
Grantee: TPA Investments, LLC
Book/Page: 14475/169
Built 1963-1978
Acres: 5.20
Slips: 0
Racks: 370
Avg: $17,567.57 per slip/rack
Comprised of three metal buildings for boat storage with marine repair support onsite
92
5200 W Tyson Ave
Tampa, FL 33611
Tampa Bayside Marina
Parcel Folio: 131222-0000 & 131222-0025 Hillsborough County
Sale Date: 7/5/2006
Sale Price: $34,500,000
Grantor: CJ Marina LLC
Grantee: Tampa Marina Investments LLC
Book/Page: 16677/0843
Built: 2003
Acres: 8.010
Slips: 40
Racks: 700
Avg:$46,621.62 per slip/rack
Similar full service marina facility
93
6810 Gulfport Blvd S
South Pasadena, FL 33707
MarineMax St. Pete Yacht Service Center
Sale Date: 04/14/2006
Grantor: Corlin Enterprises Inc
Grantee: Gulfport Marina LLC
Book/Page: 15058/1771 Pinellas County
Built: 1985
Acres: 6.39 (approx 3 acres upland /3.39 acres submerged)
Slips: 105
Racks: 0
Avg: $90,476.20 per slip
94
MARINA COMPARABALE SALE #4
343 Causeway Blvd
Dunedin, FL 34698
Marker One Marina
Parcel ID: 15/28/15/23166/012/0100 & /0200 & /0001 Pinellas County
Sale Date: 3/2006
Sale Price: $29,998,800
Grantor: Bettmar Inc
Grantee: Pinellas Marina LLC
Book/Page: 15001/970 Pinellas County
Built: 1968
Acres: 10.510 acres
Slips: 144
Racks: 96
Avg: $125,517.99
Marker One Marina was purchased from Bettmar Inc comprising of three parcels including
parcel 15/28/15/23166/012/0200 = 1.17 acres, 15/28/15/23166/012/0100 = 1.70 acres, and
15/28/15/55329/000/0001 = 7.64 aces of submerged land (wet slips) = for a total of 10.510
acres.
Since the purchase, the slips have been divided into “condo-docks”
95
MARINA COMPARABLE SALES MAP
96
MARINA COMAPARABLE SALES ADJUSTMENTS
Subject
Sale Date:
Sales Price:
Dry Storage (ESF):
Construction:
Built:
Racks:
Wet Slips:
Land Size (acres):
Price Per Rack/Slip:
57,500
Pre Metal
1990
384
89
6.92
Sale 1
Sale 2
Sale 3
Sale 4
7/05
7/06
$6,500,000 $34,500,000
43,385
unknown
Metal
Metal
1963-78
2003
370
700
0
40
5.20
8.01
$17,567.57 $46,621.62
4/06
$9,500,000
3,200
Metal
1985
0
105
6.39
$90,476.10
3/06
$29,998,800
19,694
Metal
1968
96
144
8,3200
$124,995.00
MARKET ADJUSTMENTS
Financing:
Adj. Value/Sq. Ft.:
Market Cond (Time):
Months Since Sale:
Adjustment:
0%
0%
0%
0%
31
18%
19
5%
22
7%
23
8%
$20,729.73
$48,952.70
$96,809.43
$134,994.60
10%
15%
0%
10%
0%
0%
0%
0%
0%
0%
10%
0%
0%
-10%
0%
0%
0%
0%
0%
0%
0%
15%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
35.0%
0.0%
15%
0%
$48,952.70 $111,330.85
$134,994.60
0.0%
Adj. Value/Sq. Ft
PHYSICAL ADJUSTMENTS
Location:
Amenities:
Construction:
Age:
Condition:
Size/Shape:
Topography:
Utilities:
Zoning:
Other:
Net Physical Adj:
Indicated Value/Sq. Ft.
$27,985.14
Indicated value of subject: Racks Average $30,000 Slips Average $98,500
97
RETAIL COMPARABALE SALE #1
John Pass Village
12901 Village Blvd
Madeira Beach, FL 33708
John Pass Viilage
Parcel ID: 15/31/15/97812/000/0170 & /0210 & /0230 Pinellas County
Sale Date: 6/2007
Grantor: Paul R Straubinger LLC
Grantee: RNJ Madeira Beach Inc
Book/Page: 15848/1633
Built: 1949-2001
Building: 32,237 ESF
Acres: .67 acres (29,300 SF)
Avg Per ESF: $190.01
This sale comprises of four buildings built 1949, 1982, 1981 & 2001 all of which have been
updated in recent years. The property is located within the John Pass Village, a popular
tourist enclave between Madeira Beach and Treasure Island on John’s Pass – a fishing village
with restaurants, boardwalk and marina offering boat rentals. The buildings are 97%
occupied with a combination of professional offices (Tampa Bay Beaches Chamber) and
retail including Ciega Bay Deli.
98
7190 Ulmerton Rd
Largo, FL 33771
Parcel ID: 07/30/16/50111/0000/0010 & /0020 Pinellas County
Sale Date: 6/2007
Grantor: The Ross Realty Group
Grantee: Largo Bazzar At Ulmerton LLC
Built: 1985
Acres: 3.25 acres
This sale comprises of three buildings recently renovated as a strip center. Currently (as of
sale) 78% occupied with a combination of professional, retail and a Sports Bar. The property
has 676 feet frontage on Ulmerton Rd.
99
rd
850 3 Ave S
St. Petersburg, FL 33701
Sale Date: 3/2007
Grantor: Allard, LLC
Grantee: St. Pete Towers, LLC
Book/Page: 15662/1367
Built: 1987
Acres: 3.00 acres
Avg Per ESF: $90.76
Purchased for redevelopment.
100
th
201 38 Ave N
St. Petersburg, FL 33704
Sale Date: 2/2007
Grantor: Marcelo Gutierrez
Grantee: Sunrise Plaza Holdings LLC
Built: 1972
Acres: 3.25 acres
Strip/grocery property, 100% occupied, tenants include Golds Gym, Jo-Ann Fabrics & Crafts,
Publix Super Markets, & Walgreens divided between two buildings.
101
RETAIL COMPARABLE SALES MAP
102
RETAIL COMAPARABLE SALES ADJUSTMENTS
Subject
Sale Date:
Sales Price:
Retail (ESF):
Construction:
Built:
Land Size (acres):
Price Per ESF:
31,408
Block
1963
4.25
Sale 1
Sale 2
Sale 3
Sale 4
6/07
$6,125,300
32,237
Block
1963-78
.67
$190.01
6/07
$3,000,000
26,167
Block
1985
3.25
$114.65
3/07
$4,200,000
46,275
Block
1987
3.00
$90.76
2/07
$4,900,000
33,328
Block
1972
3.25
$147.02
MARKET ADJUSTMENTS
Financing:
Adj. Value/Sq. Ft.:
0%
0%
0%
0%
Market Cond (Time):
Months Since Sale:
Adjustment:
8
2%
8
2%
11
3%
12
3%
$193.81
$116.94
$93.48
$151.43
-10%
0%
0%
0%
0%
0%
0%
0%
0%
20%
0%
0%
-5%
0%
0%
0%
0%
0%
20%
0%
0%
20%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-10.0%
15.0%
40%
0%
$174.43
$124.48
$130.87
$151.43
0.0%
Adj. Value/Sq. Ft
PHYSICAL ADJUSTMENTS
Location:
Construction:
Age:
Condition:
Size/Shape:
Topography:
Utilities:
Zoning:
Other:
Net Physical Adj:
Indicated Value/Sq. Ft.
Indicated value of subject: $145.30 Per ESF
103
Summary of Sales Approach
To arrive at our valuation we have divided the project between the Marina, High & Dry and
support facilities, and the retail strip center. We have compared similar Marinas with
comparable features, and have adjusted where appropriate, and in the same way Retail strip
centers with similar neighborhood features.
After a review of all of the salient features of the subject and the comparables chosen for this
appraisal, it is my opinion that the value of the subject, based on the Sales Comparison
Approach in Fee Simple “As Is” as presented herein, is:
Marina / High & Dry
89 slips @ $98,500 = $8,766,500
384 racks @ $30,000 = $11,520,000
rounded to:
TWENTY MILLION, TWO HUNDRED & NIETY THOUSAND DOLLARS
( $20,290,000 )
Retail
31,408 ESF @ $145.30 Per ESF = $4,563,582.40
rounded to:
FOUR MILLION, FIVE HUNDRED & SIXTY FOUR THOUSAND DOLLARS
( $4,564,000 )
For a total “As Is” market sales value of:
TWENTY FOUR MILLION, EIGHT HUNDRED
& FIFTY FOUR THOUSAND DOLLARS
( $24,854,000 )
104
THE COST APPROACH
The basic premise, upon which this method of value estimation is based, is known as the
principle of substitution. This principle logically states, “That a prudent purchaser of a
particular property would be willing to pay no more for that property than the cost of
acquiring an equally desirable substitute”. It is acknowledged that one principle method of
acquiring a substitute property would be realized by the reproduction (replacement) of the
improvements of commensurate utility on an equally desirable site. This approach is most
valid when analyzing new improvements, which have not experienced any loss in value
through normal wear and tear, or other forms of depreciation.
Therefore, the cost approach to value estimates the current market value of a property through
the process in which the replacement cost of all improvements are estimated and then deduct
the total estimated loss in value (depreciation) for the improvements.
Estimate of Land Value
The valuation of vacant land is typically undertaken by the sales comparison approach
(market approach). The application of this approach produces a value estimate for land by
comparing it with similar properties that have recently sold, in the same competitive
neighborhood. The sale price of these properties tends to set the range of value in which the
subject property will fall, when reduced to an appropriate unit of comparison (price per
square foot, per front foot, per unit, etc). Refinements of this data, by comparative process,
should lead to a logical estimate of market value as of the date of appraisal.
For the purposes of this appraisal, and with little or no comparable commercial land sales in
Pinellas County, we have arrived at a land value by extraction based on the Marina and Retail
sales given in the Sales Approach of this report.
It is our opinion that the 7.042 acres of upland and 4.1 acres of leased submerged land would
be valued if vacant and as currently zoned would be $12,000,000.
The following is a Marshall & Swift analysis on the costs associated in reproducing the
improvements along with any depreciation for age.
105
Marshall & Swift - SwiftEstimator
Commercial Estimator - Summary Report
General Information
Estimate ID:
0803
Date Created:
2-20-2008
Property Owner:
Tierra Verde Marina
Property Address:
100 Pinellas Bayay
Tierra Verde, FL 33715
Date Calculated:
02-20-2008
Cost Data As Of:
using report date
20%
Report Date:
02-2008
Local Multiplier:
Permitting &
Architects Fee:
High & Dry
Area
57571
Overall Depreciation %
Stories in Section 1
30.8%
Physical Depreciation %
Functional Depreciation %
Shape
rectangular
Perimeter
(auto-calc)
Effective Age
15
External Depreciation %
Occupancy
%
Class
Height
Quality
328 Storage Hangar
100
S
40
3.0
Total Percentage
100
%/Units
Quality
10
3.0
80
3.0
Depr%
Other
System : Exterior Walls
868 Exterior Walls : PF.- Metal & Glass Panels
840 Exterior Walls : Curtain-Aggregate Siding Panels
Total % for system :
90
100
System : Sprinklers
681 Sprinklers : Sprinklers
100
Addition
Units
Cost
3.0
Depr %
LM
Base Date
106
Boat Racks
384
3500
30
N
01-1996
Rest Room Building
1
29400
25
N
01-1998
Boat Rental & Lifts
1
100000
25
N
01-1998
Fixed Pier Marina - Fuel Dispensers
89
19841.62
60
N
01-1993
Hanger Doors
3264
18.50
24
N
01-1996
Retail Bldg 1 North
Area
13544
Stories in Section
1
Stories in Building
30.8%
Shape
rectangular
Perimeter
(auto-calc)
Effective Age
20
Occupancy
%
Class
Height
Quality
597 Mixed Retail w/ Office Units
100
C
10
3.0
Total Percentage
100
%/Units
Quality
Depr%
Other
System : Land and Site
7001 Land and Site : Paving, Asphalt
150000
2.0
7117 Land and Site : Fence, Chain Link
10000
2.0
7002 Land and Site : Curbing, Concrete
13900
2.0
7200 Land and Site : Landscaping
51008
2.0
7300 Land and Site : Lighting
61 Land and Site : Land
10
2.0
12000000
3.0
Addition
Units
Cost
Depr %
LM
Base Date
Basic Signage
1
4000
50
N
01-1998
Retail Bldg 2 - Conv. Store
Area
7224
Stories in Section
1
Stories in Building
30.8%
Shape
rectangular
Perimeter
(auto-calc)
Effective Age
10
107
Occupancy
%
Class
Height
Quality
531 Mini-Mart Convenience Store
100
C
10
3.0
Total Percentage
100
%/Units
Quality
3860
3.0
Depr%
Other
System : Malls
755 Malls : Malls-Open
Retail Bldg 3 - South
Area
7420
30.8%
Shape
rectangular
Perimeter
(auto-calc)
Effective Age
20
Occupancy
%
Class
Height
Quality
597 Mixed Retail w/ Office Units
100
C
10
3.0
Total Percentage
100
Restaurant
Area
3220
30.8%
Shape
rectangular
Perimeter
(auto-calc)
Effective Age
10
Occupancy
%
Class
Height
Quality
350 Restaurant
100
D
12
3.0
Total Percentage
100
%/Units
Quality
500
3.0
Depr%
Other
System : Mezzanines
759 Mezzanines : Mezzanines
108
System : Sprinklers
681 Sprinklers : Sprinklers
100
3.0
100
Calculation Information (All Sections)
Units
Unit Cost
Total Cost
Less
New Depreciation
Total Cost
Depreciated
Base Cost
88,979
74.59
6,637,101
1,404,729
5,232,372
Exterior Walls
83,222
21.79
1,813,779
409,526
1,404,253
Heating & Cooling
88,979
3.35
298,305
57,591
240,714
Sprinklers
60,791
3.36
204,103
51,260
152,843
Mezzanine
500
28.34
14,170
2,126
12,044
3,860
25.45
98,237
10,806
87,431
384
5,540.65
2,127,610
638,283
1,489,327
Rest Room Building
1
44,700.35
44,700
11,175
33,525
Boat Rental & Lifts
1
152,042.01
152,042
38,011
114,031
89
34,296.30
3,052,371
1,831,423
1,220,948
3,264
29.30
95,635
22,952
72,683
1
6,091.15
6,091
3,046
3,045
88,979
163.46
14,544,144
4,480,928
10,063,216
4,480,928
10,063,216
4,480,928
10,063,216
Basic Structure
Malls
Boat Racks
Fixed Pier Marina - Fuel
Dispensers
Hanger Doors
Signage
Basic Structure Cost
Less Depreciation
Physical & Functional
Depreciated Cost
30.8%
88,979
113.10
Miscellaneous
Land
Paving, Asphalt
12,000,000
12,000,000
150,000
2.07
310,500
310,500
Fence, Chain Link
10,000
2.80
28,000
28,000
Curbing, Concrete
13,900
9.88
137,332
137,332
Landscaping
51,008
3.16
161,185
161,185
Lighting
10
674.47
6,745
6,745
Total Cost
88,979
305.55
27,187,906
4,480,928
22,706,978
109
Summary of Coat Approach
For this approach we have utilized recent land sales to determine the value of the subject as if
vacant. We have then utilized the services of Marshall & Swift’s Online Cost Estimator, a well
known recognized leader in the construction industry for estimating the cost of construction and
reproduction of commercial and residential properties, to derive the cost approach. We have
estimated the value and depreciation of the subject “As Is” and as would be “On Completion” It
is assumed that the property would be brought up to standard as “New”, and as such we would
utilize the Cost Approach “Reproduction” value, without depreciation, to arrive at our value
It is my opinion that the value of the subject, based on the Cost Comparison Approach as
presented herein, is:
“As Is”
TWENTY TWO MILLION, SEVEN HUNDRED & TEN THOUSAND DOLLARS
( $22,710,000 )
“On Completion”
TWENTY SEVEN MILLION, TWO HUNDRED THOUSAND DOLLARS
( $27,200,000 )
110
THE INCOME APPROACH
The Income Approach to Value is based on the rationale that a relationship exists between
the amount of income a property can generate and its value. It is an analysis tool that
converts anticipated benefits (usually net income in dollars) to be derived from ownership of
an income producing property, into a lump sum value estimate. This is accomplished by
capitalizing the income stream from a single year (most recent) or capitalizing a series of
anticipated cash flows at an appropriate discount rate.
Virtually all businesses or interests in business may be appraised under each of the following
four alternative premises of value:
1. Value as a going concern. Value in continued use, as a mass assemblage of income
producing assets, and as a going concern enterprise.
2. Value as an assemblage of assets. Value in place, as part of a mass assemblage of assets,
but not in current use in the production of income, and not as a going concern business
enterprise.
3. Value as an orderly disposition. Value in exchange, on a piecemeal basis (not part of a
mass assemblage of assets), as part of an orderly disposition. This premise contemplates that
all of the assets of the business enterprise will be sold individually and that they will enjoy
normal exposure to the appropriate secondary market.
4. Value in forced liquidation. Value in exchange, on a piecemeal basis (not part of a mass
assemblage of assets), as part of a forced liquidation. This premise contemplates that the
assets of the business enterprise will be sold individually and that they will experience less
than normal exposure to their appropriate secondary market. (2)
The Income Approach to value is generally that of assemblage of assets. An estimate of the
subject’s earning potential is extracted from the market for the real estate as though vacant
and available at the highest and best use. Financial statements are developed in a pro forma
environment and an appropriate capitalization rate is applied to derive a market indicator of
value.
With this assignment we have undertaken to look at the Sales and Cost approach to valuation,
which are well supported. The current income is considered interim on the existing property
and would not be reliable in determining the ultimate value of the subject. As such, we
choose not to utilize this approach.
(1.) The Appraisal of Real Estate, eleventh edition, The Appraisal Institute, 1996, p. 28.
(2.) Valuing Small Businesses and Professional Practices, third edition, Shannon P. Pratt, Robert F. Riley and Robert P.
Schweihs, 1998, pp. 46, 47, 272, 273.
111
Following is a chart of Marina Rentals in the region, a stabilized income and expense
projection, and conclusion.
Tampa/St Petersburg, Fl Area Marina Rental Rates & Occupancy Survey June 2007
Tampa Bay Area Locations
Saint Petersburg Municipal Marina
Overall Rating
Harborage Marina
Overall Rating
Saint Petersburg Yacht Club
Overall Rating
Holiday Inn Sunspree Resort
Overall Rating
Gulfport Municipal Marina
Overall Rating
The Pass-A-Grille Marina
Overall Rating
Isla Del Sol Yacht Club Marina
Overall Rating
Manna Point Ship‘s Store
Overall Rating
Sailor‘s Wharf
Overall Rating
Maximo Marina
Overall Rating
Tierra Verde Marina
Overall Rating
Blind Pass Marina
Overall Rating
Johns Pass Marina
Overall Rating
Snug Harbor Marine
Overall Rating
Embree Marine
Overall Rating
Bay Pines Marina
Overall Rating
Marjorie Park Marina
Overall Rating
Majorie Park Yacht Basin
112
Overall Rating
Davis Island Yacht Club
Overall Rating
Tampa Yacht & Country Club
Overall Rating
Wyndham Harbour Island Hotel
Overall Rating
In reviewing the data obtained from the above marina facilities the appraisers have
considered a blended average of these rates which are presented below:
The average slip and dry storage blended occupancy is 92.3% overall. The wet slips are more
than 97% occupied and the dry storage is somewhat less at 88% occupancy resulting in a
weighted average of 92.3% overall area occupancy rate.
113
Avg Monthly Rental Rates Of Above Facilities
Size Dry
Wet
25ft $200 $250
$96/F $120/F
t
t
26ft $208 $260
27ft $216 $270
28ft $224 $280
29 ft $232 $290
30 ft $240 $300
$96.F $120.F
t
t
31ft $248 $310
32 ft $256 $320
33 ft $264 $330
34 ft $272 $340
35 ft $280 $350
$96/F $120/F
t
t
36 ft $288 $360
37 ft $296 $370
38 ft $304 $380
$96/F $120/F
t
t
Based upon the above data we reconcile on an average of $96/Lin Ft for dry storage and
$120/Lin Ft Wet Storage. This is applied in our income analysis of the subject property
operations.
Three of the most comparable rental programs most similar to the subject are presented
below and on the following pages of this section of the report.
114
Twin Dolphin Marina Facility
Twin Dolphin Marina
1000 1st Ave. West, Bradenton, Florida 34205-7852
941.747.8300 - fax 941.745.2831
e-mail: [email protected]
Leasing & Rates
Daily......................$ 2.00 / ft / day + electric
Weekly...................$12.50 / ft / week + electric
Monthly..................$22.00 / ft / month + electric
Seasonal.................$16.80 / ft /6 months + electric
Annual...................$14.00 / ft / 1 year + electric
Additional Monthly Fees
Dock Fee................$50.00 / month (Water / Cable TV / Waste
/Trash)
Live Aboard Fee........$200.00 / month
Special cable package & telephone services as applicable
Electric Rates
Amps.......... Daily.......... Weekly.......... Monthly.......... Live Aboard
............................................................Sail/Power .........Sail/Power
...............1-30 ............$5.00...........$15.00..........$30/$35...............$50/$55
2-30............$7.50...........$30.00..........$50/$55.............$100/$110
1-50............$7.50...........$30.00..........$50/$55.............$100/$110
2-50............$10.00.........$40.00........$100/$110...........$130/$140
Please note the following:
Rates reflect cash discount prices
Catamaran slips available
Slip overhang limited
Boat measured "Length Overall" - (Tip to Tip)
Premium "B" Dock Slips add $1.00/foot/month
Special fee rates are applied for end ties
Slip minimum fees are applicable
Sales & tourism tax applies to Transient and Month to Month rates
Transient rates-Minimum 35'
Rates & slip availabilities are subject to change
115
(727) 392- 4922
The indoor boat storage at Bay Pines Marina is state of the art for safe and secure storage of your
boat. It has 360 (300 dry and 60 wet) spaces for storage and uses 2 new Hyster forklifts and 2 wall
dockside lifts. It is located in a well protected backwater bayou. There is 600 feet of floating dock
space and you can get your Ocean Wave Sunglasses (the best ones for being on the water), fuel,
bait and ice at the marina. The rates are fair and reasonable. Please call and make a reservation as
soon as possible if you would like us to keep your boat safe and secure.
•
93 Octane Fuel
•
NOAA Marine Weather Radio
Station on Premises
•
Mercury Premium Plus/Rotella
T/Pennzoil 4 Cycle Oil
•
Waste Pump Out Station
•
Bait - Chum - Sardines - Squid
•
24 Hour Access
•
Ice
•
Free Local Calls
•
Sodas
•
Coming in 2005 - 60 more High and
Dry Slips
116
Bay Pines Marina
Dry Storage Rates
$10.00 a foot + tax
SIZE
15’ to 15'6”
15'6” to 16'6”
16'6” to 17'6”
17'6” to 18'6”
18'6” to 19'6”
19'6” to 20'6”
20’6” to 21'6”
21'6” to 22'6”
22'6” to 23'6”
23'6” to 24'6”
24'6” to 25'6”
25'6” to 26'6”
26'6” to 27’6”
27'6” to 28'6”
28'6” to 29’6”
29'6” to 30'6
30'6” to 31'6”
31'6” to 32’6”
RATE
150.00
160.00
170.00
180.00
190.00
200.00
220.50
231.00
241.50
252.00
262.50
273.00
283.50
294.00
304.50
315.00
325.50
336.00
TAX
10.50
11.20
11.90
12.60
13.30
14.00
15.44
16.17
16.91
17.64
18.38
19.11
19.85
20.58
21.32
22.05
22.79
23.52
TOTAL
160.50
171.20
181.90
192.60
203.30
214.00
235.94
247.17
258.41
269.64
280.88
292.11
303.35
314.58
325.82
337.05
348.29
359.52
2 MONTHS
321.00
342.40
363.80
385.20
406.80
428.00
471.88
494.34
516.82
539.28
561.76
584.22
606.70
629.16
651.64
674.10
696.58
719.04
WET SLIPS
$5.50 a foot for wet slips
Minimum $130.00
117
The Harborage Marina
1500 Second Street
Saint Petersburg, FL 33701
Bayboro Harbor/Tampa Bay
Phone : 727/821-6347
Fax: 727/896-6227
email : [email protected]
Marina Manager : Russell Thompson
Wet Slips $428.82 monthly for 30 ft slip or
$171.53/Lin Ft of Dock Space
Dry Stack Storage $310.60 monthly for 30’ dry
storage or $124.24/Lin Ft of Dock Space
The Harborage Marina offers a variety of floating slips and dry storage to best fit your
boating needs. Located only seven blocks from Interstate 275 allows for quick easy access to
Tampa, Clearwater, Bradenton/Sarasota.
IN THE WATER:
The Harborage Marina has over 300 wet slips that allow for quick convenient access to
your boat. The floating concrete dock (the Unifloat system), designed to withstand 12-foot
tidal surge, is equipped with dock boxes offering power outlets, water, telephone and Cable
TV hookup.
The above data is from competing facilities offering similar type boating accommodations to
the public supports the subject’s income projections for dry and wet slip storage.
Within our analysis we select a vacancy rate of 7.5% for the projected income
118
Advanced Mortgage Equity Calculation
Input Variables
Projected Holding Period
Loan Ratio 1
Interest Rate
Loan Term
Investor Equity Portion
Required Investor Yield (IRR)
Growth Rate in Value per Year
Growth Rate in Net Income per Year
Soft Costs in Addition to Equity
Selling Expenses: Terminal Year
10 Years
75.00%
8.00%
25 Years
25.00%
10.000%
2.000%
1.000%
5.000%
6.000%
Calculation
Loan 1 c Constant (.75000 x 0.092618)
Equity x Required Yield (.25000 x 0.1000000)
0.0694635
0.0250000
__________
0.0944635
LESS Credit for Equity Build-up
RATIO X % PAID OFF X SINKING FUND
Loan 1 75.00 0.924
0.062745
-0.0090526
__________
BASIC RATE 0.0854109
ADD Amoritization of Soft Costs (5.00 x 0.16275)`0.0081373
__________
0.0935482
LESS Appreciation Factor
-0/0091517
LESS Income Growth Factor
-0.0031031
__________
CAP RATE AT STABLE OPERATION
0.0812934
OVERALL RATE ROUNDED TO
8.13%
119
Projected Income & Expense
(At stable operation – based on sales and expenses of 2007, with 10% increase in leases and
rentals based market rate).
MONTH
ANNUAL
89 Slips average of $500
$44,500.00
$534,000.00
385 Dry Storage average of $350
134,750.00
1,617,000.00
20 Outside Storage average of $250
5,000.00
60,000.00
Vacancy 7.5%
-13,818.75
-165,825.00
Boat Club Memberships
8,000.00
96,000.00
Service/Parts
58,333.33
700,000.00
Misc fees (Boat initiation, detailing etc)
2,000.00
24,000.00
Diesel / Gas sales
60,000.00
720,000.00
Merchandise
1,000.00
12,000.00
Retail Leases
38,187.60
458,251.20
Cam Fees
25,808.20
309,698.40
Cell Tower
965.00
11,580.00
Net Income
$364,725.38
$4,376,705
6,500.00
12,492.25
6,500.00
7,083.33
22,416.67
500.00
4,000.00
50,000.00
13,750.00
53,750.00
5,750.00
433.58
500.00
18,236.27
78,000.00
149,907.00
78,000.00
85,000.00
269,000.00
6,000.00
48,000.00
600,000.00
165,000.00
645,000.00
69,000.00
5,203.00
6,000.00
218,835.23
201,912.10
$2,422,945.23
Expenses
Management
Leased Employees
Accounting/Legal/Bank/CC Charges
Insurance
Taxes
Landscaping
Security/Maintenance
Fuel (Gas, Diesel), equipments, etc
Forklift Op Expenses
Parts & Service
Utilities
Permits & Inspections
Misc. office/travel expenses
Reserve for replacement 5%
Total Expenses
Total NOI
$1,953,759.37
120
CAPITALIZATION
Stable Net Divided by Capitalization Rate = Value
$1,953,759.37
0.081293
$24,033,549.88
Therefore it is our opinion that the value of the subject property as of the date of inspection of
Feb 1, 2008, based on the Income Approach (stabilized) is:
TWENTY FOUR MILLION, THIRTY THREE THOUSAND,
& FIVE HUNDRED & FIFTY DOLLARS
( $24,033,550 )
121
RECONCILIATION OF APPROACHES
AND FINAL VALUE ESTIMATE
In determining Market Value in Fee Simple we have extracted the value based on the Sales and
Cost Approaches presented in this report.
The following is a recapitulation of the value estimates for the property:
“As Is”
Sales Approach: $24,854,000
Cost Approach: $22,710,000
Income Approach (stabilized): $24,033,550
The three approaches utilized are well supported, however the Sales Approach would be most
favored in reflecting the market condition generally, and as such we will weigh in favor of the
Sales Approach.
It is therefore my opinion that the Market Value in Fee Simple of the subject property as of
February 1st, 2008, the day I inspected the property is $24,854,000 rounded upwards to:
TWENTY FOUR MILLION, EIGHT HUNDRED &
FIFTY FOUR THOUSAND DOLLARS
( $24,854,000 )
After all proposed renovations are complete
TWENTY EIGHT MILLION DOLLARS
( $29,000,000 )
122
ADDENDA
Definitions of Extraordinary Assumption and Hypothetical Condition.
Definitions of Reproduction & Replacement Cost
Survey
Submerged Land Lease
Pinellas, Hillsborough, Manatee County Marina Facility List
Engagement Letter
Appraisers Qualifications
123
Definitions of Extraordinary Assumption and Hypothetical Condition.
An Extraordinary Assumption is, as it's name implies, an assumption that's out of the
ordinary. These assumptions usually arise as the result of uncertainty on the appraiser's part
about the attributes of the subject property or its market conditions. An example of an EA is
the permit status of a structural addition that doesn't show up in the appraiser's databases. If
the structure appears to be of reasonable quality and workmanship and the property owner is
making statements about having permits, an appraiser may elect to assume that the addition is
permitted for valuation purposes. Now if this assumption proves to be unfounded it could
have an effect on the appraisers work product. That's why we are required to note those extra
assumptions in our reports and provide notice about how it affects our value opinion.
A Hypothetical Condition is different in that we're not making any assumptions about what
is; we know for a fact that it isn't, but are treating it as if it were for valuation purposes. The
most common example of this is when we're appraising a property subject to something - like
completion of construction per plans and specs, or completion of a lot split. We know the
construction isn't yet complete but we are treating it as if it were for valuation purposes. This
is in answer to the intended user's questions of "what would it be worth if it were completed".
Definition of Replacement Cost
Replacement cost is the estimated cost to construct, as of the effective appraisal date, a
building with utility equivalent to the building being appraised, using contemporary
materials, standards, design, and layout. When this cost basis is used some existing
obsolescence in the property is assumed to be cured.
Definition of Reproduction Cost
Reproduction cost is the estimated cost to construct, as of the effective appraisal date, an
exact duplicate or replica of the building being appraised, insofar as possible using the same
materials, construction standards, design, layout, and quality of workmanship and embodying
all the deficiencies, super adequacies, and obsolescence of the subject building.
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
Pinellas, Hillsborough, Manatee County Marina Facility List
Marinas
PINELLAS COUNTY
St. Petersburg
Bay Pines Marina; St. Petersburg, FL (727) 320-9540
Blind Pass Marina; St. Petersburg, FL (727) 360-4281
Corey Landings Marina; St. Petersburg, FL (727) 360-8933
Gandy Bridge Marina; St. Petersburg, FL (727) 577-1403
The Harborage; St. Petersburg, FL (727) 821-6347
Harborage Marina; St. Petersburg, FL (800) 888-7497 FAX: (727) 898-2028
Huber Yacht Harbor; St. Petersburg, FL (727) 867-2117
Isla Del Sol Yacht & Country Club; St. Petersburg, FL (727) 864-0091 FAX: (727) 867-1213
Lighthouse Harbor Marina; St. Petersburg, FL (727) 381-3887
Lighthouse Point Marina; St. Petersburg, FL (727) 384-3625
Mariner's Cove Marina; St. Petersburg, FL (727) 527-2259
Maximo Marina; St. Petersburg, FL (727) 867-7718
O'Neill's Skyway Boat Basin & Marina; St. Petersburg, FL (727) 867-2585
Pass-A-Grille Yacht Club; St. Petersburg, FL (727) 360-1646 FAX: (727) 360-7524
Renaissance Vinoy Resort Marina; St. Petersburg, FL (727) 894-1000
St. Petersburg Marina; St. Petersburg, FL (727) 893-7329
Tracey's Cove; St. Petersburg, FL (727) 393-0429
Clearwater
The Boatworks; Clearwater, FL (727) 535-4555
Clearwater Bay Marine; Clearwater, FL (727) 442-9376
Clearwater Municipal Marina; Clearwater, FL (727) 462-6954 FAX: (727) 462-6957
Clearwater Yacht Club; Clearwater, FL (727) 447-6000
High & Dry Marina; Clearwater, FL (727) 443-0637
Dunedin
Marker One Marina; Dunedin, FL (727) 733-9324 (727) 736-0839
Pirate Cove Marina; Dunedin, FL (727) 733-1102 FAX: (727) 733-4297
Gulfport
Boca Ciega Yacht Club; Gulfport, FL (727) 321-7295
Great American Marine; Gulfport, FL (727) 384-3428
Gulfport Municipal Marina; Gulfport, FL (727) 893-1071
Indian Rocks Beach
139
Hamlin's Landing Marina; Indian Rocks Beach, FL (727) 595-9484
Holiday Inn Harbourside Marina; Indian Rocks Beach, FL (727) 595-9484 FAX: (727) 5964825
Largo
Indian Springs Marina; Largo, FL (727) 595-2956
Madiera Beach
ABC Marina of Madeira Beach; Madiera Beach, FL (727) 393-2090
Boca Bay Marine; Madiera Beach, FL (727) 391-3410
Holiday Isles Marina; Madeira Beach, FL (727) 391-7064
Hubbard's Marina; Madiera Beach, FL (727) 727-393-1947 (800) 755-0677
Oldsmar
Greentree Marina; Oldsmar, FL (727) 855-1161
Ozona
George's Marina; Ozona, FL (727) 784-3798
Ozona Shores Marina; Ozona, FL (727) 784-1690
Pat's Landing; Ozona, FL (727) 784-0143
Speckled Trout Marina, Ozona, FL (727) 784-2417
Palm Harbor
Home Port Marina; Palm Harbor, FL (727) 784-1443
Island Harbor Marina; Palm Harbor, FL (727) 784-3014
Redington Shores
Redington Shores Marina; Redington Shores, FL (727) 391-1954
Tarpon Springs
Anclote Harbors Marina; Tarpon Springs, FL (727) 934-7616
Bluefin Marine; Tarpon Springs, FL (727) 937-0123
Duke's Fish Camp & Marina; Tarpon Springs, FL (727) 937-9737
Ericson Marine; Tarpon Springs, FL (727) 934-6390
Port Tarpon Marina; Tarpon Springs, FL (727) 937-2200
Sail Harbor Marina; Tarpon Springs, FL (727) 938-4660
Tarpon Springs City Marina; Tarpon Springs, FL (727) 937-9165
Maverick Marine Services; Tarpon Springs, FL (727) 937-5402
Tierra Verde
Tierra Verde Marine Center; Tierra Verde, FL (727) 866-0255
Tierra Verde Resort Marina; Tierra Verde, FL (727) 867-0400 FAX: (727) 867-9331
140
HILLSBOROUGH COUNTY
Ruskin
Bahia Beach Marina; Ruskin, FL (813) 645-2411
Bahia Del Sol Marina; Ruskin, FL (813) 645-0884
Bahia Beach Island Resort & Marina; Ruskin, FL (813) 645-9269 FAX: (813) 641-1589
Shell Point Marina; Ruskin, FL (813) 645-1313
Tampa
Bayshore Marina; Tampa, FL (813) 259-1604
Economy Marine Services; Tampa, FL (813) 872-0477
Marjorie Park Marina; Tampa, FL (813) 259-1604
Imperial Yacht Center; Tampa, FL (813) 832-2628
Interbay Marine; Tampa, FL (813) 837-4247
Palm River Marina; Tampa, FL (813) 247-2939
Tampa Bayside Marina; Tampa, FL (813) 831-5757 FAX: (813) 839-6667
Tampa Marina & Yacht Club; Tampa, FL (813) 251-5980
Y S Marina; Tampa, FL (813) 251-5980
MANATEE COUNTY
Bradenton
Agee's Marina; Bradenton, FL (941) 792-4443
Boca Del Rio Marina; Bradenton, FL (941) 792-9610
Bradenton Beach Marina; Bradenton Beach, FL (941) 778-2288 FAX: (941) 778-2763
Bradenton Pier & Yacht Basin; Bradenton, FL (941) 747-8300>
Galati Perico Harbor Marina; Bradenton, FL (941) 795-2628
Twin Dolphin Marina; Bradenton, FL (941)747-8300 FAX: (941)745-9541
Longboat Key
Buccaneer Inn & Marina; Longboat Key, FL (941) 383-4468
Cannon's Marina; Longboat Key, FL (941) 383-1311
Longboat Key Moorings; Longboat Key, FL (800) 858-0836
141
QUALIFICATIONS OF PAUL T WILLIES
APPRAISAL AND RELATED EXPERIENCE
1998-2008 Director and CEO Appraisal Development International
2008 Appraisal Institute Seminar: Supervisor/Trainee Roles & Rules
2008 AI Seminar: Florida State Law For Real Estate Appraisers
2007 AI Seminar: Analyzing Distressed Real Estate
2007 AI Seminar: Condos, Co-ops, and PUDSs
2007 Marshal & Swift Webinar - Mastering Swiftestimator - Commercial
2006 AI Seminar: State of Florida Law
2006 AI Seminar: 2006 USPAP review
2006 AI Seminar: 2006 Scope of Work & the New USPAP Requirements
2006 AI Seminar: 2006 New Technology for the Real Estate Appraiser
2006 AI Seminar: What Clients Would Like Their Appraisers To Know
2005 Hillsborough Planning Commission “Comprehensive Planning for Tomorrow’s Markets”
2005 AI Briefing: How New Appraisal Requirements Impact Bankers & Appraisers
2005 AI Seminar: Cost Studies in Commercial Highest and Best Use
2005 AI Seminar: Appraisal Problems presented in mini-case format
2004 State-Certified General Real Estate Appraiser RZ2762
2004 AI Seminar: Sales Comparison Valuation Mixed Use Properties
2004 ABIII Fl. State Pre-Certification Certified General Appraiser
2003 ABII Fl. Pre-Certification State Registered Appraiser
2001 State Registered Assistant Appraiser Course.
SCOPE OF APPRAISAL ASSIGNMENTS
Acreage, Farms, Medical/office Leasehold Estates, Industrial, Restaurants, Multifamily, Mobile Home
Parks, RV Parks, Marinas, Hotels/Motels, Condo-Hotels, Condominiums, Time Share, Nursing Homes,
Life Care Facilities, Community & Neighborhood Shopping Centers, Office Centers, Automobile
Dealerships, Apartments, Special Purpose Single Family Homes
MEMBERSHIPS
Associate Member, Appraisal Institute of West Florida
Member BNI Referral Masters, Clearwater Chapter
Managing Partner, Long Bay Communications
Board Member & Past Chairman, British-American Business Council of Tampa Bay
Past Board Member, British-American Business Council New York
Past Member, Greater Tampa Chamber of Commerce Committee of One Hundred
Past Member South Tampa Chamber of Commerce, Ybor Chamber
1985 Leadership Grand Strand Alumni (Horry County, South Carolina).
FORMAL EDUCATION
1985 Public Relations Society of America Accreditation
1975 Burnaby Technical College, Vancouver BC – Television Production
72-73 Nova Scotia College of Art and Design - Visual Communication and Design
69-72 Queen Elizabeth High School, Halifax Nova Scotia
74-08 Seminars on Management, Business Development, Commercial Appraisal & RE Development
142

bankofamerica - Appraisal Alliance Inc

Transcription

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