Treviso Bay Outparcel

Transcription

APPRAISAL OF REAL PROPERTY
Land Property
SEC of Southwest Blvd and Tamiami Trail East
Naples, Collier County, Florida 34102
Client Reference Tamiami Southwest, LLC
PREPARED FOR:
Mr. Ennio A Alonso, Sr.
Credit Officer & Real Estate Specialist
TIB Bank
12195 Metro Parkway
Fort Myers, FL 33966
EFFECTIVE DATE OF THE APPRAISAL:
April 15, 2009
REPORT FORMAT:
Summary
INTEGRA REALTY RESOURCES - SOUTHWEST FLORIDA
File Number: 152-2009-0117
© 2007 BY INTEGRA REALTY RESOURCES
Naples, Florida
April 20, 2009
TIB Bank
12195 Metro Parkway
SUBJECT:
Market Value Appraisal
Naples, Collier County, Florida 34102
Client Reference Tamiami Southwest, LLC
Integra Southwest Florida File No. 152-2009-0117
Dear Mr. Alonso:
Integra Realty Resources – Southwest Florida is pleased to submit the accompanying appraisal
of the referenced property. The purpose of the appraisal is to develop an opinion of the market
value of the fee simple interest in the property. The client for the assignment is TIB Bank, and
the intended use is for loan underwriting purposes.
The appraisal is intended to conform with the Uniform Standards of Professional Appraisal
Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal
Practice of the Appraisal Institute, and the appraisal guidelines of TIB Bank. The appraisal is
also prepared in accordance with the appraisal regulations issued in connection with the
Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).
To report the assignments results, we use the summary report option of Standards Rule 2-2 of
USPAP. Accordingly, this report contains summary discussions of the data, reasoning, and
analyses that are used in the appraisal process whereas supporting documentation is retained in
our file. The depth of discussion contained in this report is specific to the needs of the client and
the intended use of the appraisal.
The subject is a parcel of vacant land containing an area of 30.00 acres, or 1,306,800 square feet.
The property is zoned AG-2, Agricultural, which permits agricultural uses. The subject had been
zoned PUD which allowed residential and retail uses, however, the PUD sunsetted in 2006 and
zoning reverted to the previous zoning designation.
TIB Bank
April 20, 2009
Page 2
Based on the valuation analysis in the accompanying report, and subject to the definitions,
assumptions, and limiting conditions expressed in the report, our opinion of value is as follows:
VALUE CONCLUSION
Appraisal Premise
Market Value
Interest Appraised
Fee Simple
Date of Value
April 15, 2009
Value Conclusion
$7,840,000
EXTRAORDINARY ASSUMPTIONS & HYPOTHETICAL CONDITIONS
The value conclusions are subject to the following extraordinary assumptions and hypothetical conditions that
may affect the assignment results.
For purposes of the as is valuation, we assume:
a. The subject property had a PUD which allowed retail and multi-family residential uses. The PUD sunsetted
in 2006 and it is our understanding, based on conversations with Collier County, that in the event a PUD
sunsets, it reverts to the original zoning which in this case is AG-2. It is our further understanding that in order
to reclaim a more desirable use designation, the owner must start the rezoning process from the beginning. We
assume this information to be correct.
If you have any questions or comments, please contact the undersigned. Thank you for the
opportunity to be of service.
Respectfully submitted,
INTEGRA REALTY RESOURCES - SOUTHWEST FLORIDA
Louis C. Bobbitt, MAI
Carlton J. Lloyd, MAI
State-Certified General R.E. Appraiser RZ. #001271
[email protected]; Phone 239-643-6888 ext. 208
TREVISO BAY OUTPARCEL
TABLE OF CONTENTS
TABLE OF CONTENTS
PAGE NO.
SUMMARY OF SALIENT FACTS AND CONCLUSIONS............................................................. 1 GENERAL INFORMATION ...................................................................................................... 2 Identification of Subject .............................................................................................. 2 Current Ownership and Sales History......................................................................... 2 Purpose, Property Rights and Effective Date ............................................................. 2 Definition of Market Value ......................................................................................... 2 Definition of Property Rights Appraised .................................................................... 3 Client, Intended User and Intended Use ..................................................................... 3 Applicable Requirements ............................................................................................ 3 Scope of Work ............................................................................................................ 3 ECONOMIC ANALYSIS ........................................................................................................... 5 Collier County Area Analysis ..................................................................................... 7 Surrounding Area Analysis ....................................................................................... 19 PROPERTY ANALYSIS .......................................................................................................... 20 Land Description and Analysis ................................................................................. 20 Real Estate Tax Analysis .......................................................................................... 22 Highest and Best Use Analysis ................................................................................. 23 VALUATION ANALYSIS ........................................................................................................ 24 Valuation Methodology ............................................................................................ 24 Sales Comparison Approach ..................................................................................... 25 Reconciliation and Conclusion of Value .................................................................. 29 CERTIFICATION ................................................................................................................... 30 ASSUMPTIONS AND LIMITING CONDITIONS ....................................................................... 31 ADDENDA
Appraiser Qualifications ....................................................................................... Addendum A
Subject Photographs ............................................................................................. Addendum B
Property Information ............................................................................................ Addendum C
Comparable Data .................................................................................................. Addendum D
Letter of Authorization ......................................................................................... Addendum E
© 2007 BY INTEGRA REALTY RESOURCES
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
Property Name
Address
Property Type
Owner of Record
Tax ID
Naples, Florida 34102
Vacant Land
Tamiami Southwest LLC
00439880008
Land Area
Zoning Designation
Highest and Best Use
Exposure Time; Marketing Period
Effective Date of the Appraisal
Property Interest Appraised
30.00 acres; 1,306,800 SF
AG-2, Agricultural
Retail use
12 months; 12 months
April 15, 2009
Fee Simple
Sales Comparison Approach
Number of Sales
Range of Sale Dates
Range of Prices per SF (Unadjusted)
Indicated Value
5
Aug 07 to Sep 08
$7.98 - $16.92
$7,840,000
($6.00/SF)
Market Value Conclusion
$7,840,000
($6.00/SF)
PAGE 1
GENERAL INFORMATION
GENERAL INFORMATION
IDENTIFICATION OF SUBJECT
The subject is a parcel of vacant land containing an area of 30.00 acres, or 1,306,800
square feet. The property is zoned AG-2, Agricultural, which permits agricultural uses.
The subject had been zoned PUD which allowed residential and retail uses, however, the
PUD sunsetted in 2006 and zoning reverted to the previous zoning designation. A legal
description of the property is in the addend].
Property Name
Address
Tax ID
PROPERTY IDENTIFICATION
00439880008
CURRENT OWNERSHIP AND SALES HISTORY
The owner of record is Tamiami Southwest LLC. This party acquired the property from
John Nevins, (Bishop of the Diocese of Venice Corp) on May 17, 2004 for a price of
$2,100,000. The transaction is recorded in OR 3568/2789. Since the time of acquisition,
the PUD on the property has sunsetted. The property is currently listed for sale at
$15,681,600.
To the best of our knowledge, no sale or transfer of ownership has occurred within the
past three years, and as of the effective date of this appraisal, the property is not subject to
an agreement of sale or option to buy.
PURPOSE, PROPERTY RIGHTS AND EFFECTIVE DATE
The purpose of the appraisal is to develop an opinion of the market value of the fee simple
interest in the property as of the effective date of the appraisal, April 15, 2009.
DEFINITION OF MARKET VALUE
Market value is defined as:
“The most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:

Buyer and seller are typically motivated;

Both parties are well informed or well advised, and acting in what they consider
their best interests;

A reasonable time is allowed for exposure in the open market;
PAGE 2
GENERAL INFORMATION

Payment is made in terms of cash in United States dollars or in terms of financial
arrangements comparable thereto; and

The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated
with the sale.” (Source: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August
24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal
Register 29499, June 7, 1994)
DEFINITION OF PROPERTY RIGHTS APPRAISED
Fee simple estate is defined as an: “Absolute ownership interest unencumbered by any
other interest or estate, subject only to the limitations imposed by the governmental
powers of taxation, eminent domain, police power, and escheat.” (Source: The Dictionary
of Real Estate Appraisal, Fourth Edition, 2002.)
CLIENT, INTENDED USER AND INTENDED USE
The client and intended user is TIB Bank. The intended use is for loan underwriting
purposes. The appraisal is not intended for any other use or user.
APPLICABLE REQUIREMENTS
This appraisal is intended to conform to the requirements of the following:

Uniform Standards of Professional Appraisal Practice (USPAP)

Code of Professional Ethics and Standards of Professional Appraisal Practice of the
Appraisal Institute

Appraisal requirements of Title XI of the Financial Institutions Reform, Recovery
and Enforcement Act of 1989 (FIRREA), revised June 7, 1994.

Appraisal guidelines of TIB Bank.
SCOPE OF WORK
To determine the appropriate scope of work for the assignment, we considered the
intended use of the appraisal, the needs of the user, the complexity of the property, and
other pertinent factors. Our concluded scope of work is described below.
VALUATION METHODOLOGY
Appraisers usually consider the use of three approaches to value when developing a
market value opinion for real property. These are the cost approach, sales comparison
approach, and income capitalization approach. Use of the approaches in this
assignment is summarized as follows:
APPROACHES TO VALUE
Approach
Cost Approach
Income Capitalization Approach
Applicability to Subject
Not applicable
Applicable
Not applicable
Use in Assignment
Not Utilized
Utilized
Not Utilized
PAGE 3
GENERAL INFORMATION
We use only the sales comparison approach in developing an opinion of value for the
subject. This approach is applicable to the subject because there is an active market for
similar properties, and sufficient sales data is available for analysis.
The cost approach is not applicable because there are no improvements that contribute
value to the property, and the income approach is not applicable because the subject is
not likely to generate rental income in its current state.
OTHER RESEARCH AND ANALYSIS
Additional steps taken to gather, confirm, and analyze relevant data, are detailed in
individual sections of the report.
PROPERTY INSPECTION
Louis Bobbitt, MAI conducted an on-site inspection of the property on April 15, 2009.
Carlton J. Lloyd, MAI conducted an on-site inspection on April 15, 2009.
REPORT FORMAT
The report has been prepared under the summary report option of Standards Rule 22(b) of USPAP. As such, it contains summary discussions of the data, reasoning, and
analyses that are used in the appraisal process whereas supporting documentation is
retained in our file. The depth of discussion contained in this report is specific to the
needs of the client and the intended use of the appraisal.
PAGE 4
SCOPE OF WORK
ECONOMIC ANALYSIS
An analysis of population, employment, and income trends for Collier County and the
State of Florida is performed using data provided by NPA Data Services, a recognized
source. While the NPA data is still considered relevant, it is noted that the data
presented was compiled by NPA in late 2008 subsequent to the collapse of the subprime housing market and well into the ongoing national economic downturn, and the
resulting meltdown in the capital credit markets, and the broader national economic
downturn. Consequently, we include discussion regarding the subprime mortgage
crisis, the economic downturn, and government sponsored rescue efforts, and the
impact of the capital credit markets on real estate values.
NATIONAL ECONOMIC DOWNTURN / SUBPRIME MORTGAGE CRISIS
The subprime mortgage crisis is an ongoing financial crisis characterized by contracted
liquidity in global credit markets and banking systems triggered by the failure of
mortgage companies, investment firms and government sponsored enterprises which
invested heavily in subprime mortgages. The crisis, which has roots in the late 1990’s,
became apprarent in late 2005 through 2006 with the bursting of the United States
housing bubble and high default rates on "subprime" and adjustable rate mortgages
(ARM).
Declining lending standards, an increase in loan incentives such as low initial terms,
and a long-term trend of rising housing prices had encouraged borrowers to assume
difficult mortgages in the belief they would be able to quickly refinance at more
favorable terms. However, once interest rates began to rise and housing prices in
markets across the nation started to decrease in 2006 to 2007, refinancing became more
difficult. Defaults and foreclosure activity increased dramatically as low initial terms
expired, home prices failed to increase as anticipated, and ARM interest rates reset
higher. Foreclosures accelerated in the United States in late 2006 and triggered a global
financial crisis through 2007 and 2008. During 2007, nearly 1.3 million U.S. housing
properties were subject to foreclosure activity, up 79% from 2006.
On September 7, 2008, Congress bought out the government-sponsored mortgage
giants Fannie Mae and Freddie Mac, placing the pair into separate conservatorships,
with the federal government committing $100 billion to each. The government buy-out
is expected to eventually have a positive effect on the residential market by increasing
the availability of residential financing and lowering interest rates.
As part of the Government Sponsered Enterprises (GSE) restructuring plan, the
Treasury Department is providing capital and funding support in an effort to boost
investor confidence in Fannie and Freddie's $5.2 trillion worth of debt and mortgagebacked securities. As a result, interest rates decreased by the largest weekly decrease
since May 1980. The current rate on a 30-year fixed-rate mortgage as of February 12,
2009 is 5.16%, and a proposal to lower the rate to 4.5% is currently being considered
by the federal government to further alleviate the housing credit crisis.
PAGE 5
SCOPE OF WORK
In early October 2008 the U.S. Congress passed a $700 billion financial-market rescue
package authorizing the government to buy troubled assets from financial institutions
affected by recorded home foreclosures. It contains a provision which raises the limit
on federal bank-deposit insurance from $100,000 to $250,000; and reiterates the
authority of securities regulators to suspend asset valuing rules that corporate
executives blame for fueling the crisis.
The passage of the rescue package, which included the Troubled Asset Relief Program
(TARP), did not immediately boost confidence. The rescue plan caused a downward
spiral in Europe, Asia, and the United Sates. The Dow plunged by as much as 900
points, whith market volatility that has not been seen since the early 1930s.
In early February 2009 the U.S. Congress passes a $787 billion economic stimulus plan
which is expected to revitalize the economy and ease frozen credit markets. It will
provide billions of dollars in aid though sources such as unemployment benefits, food
stams, medical care, and job retaining. Tens of billions of dollars will help offset cuts
states might have had to make in iad to schools and local goverments. Additionally,
there is more than $48 billion for transportation projects including road and bridge
construction, mass transit, and high-speed rail. The expansion of computerized
information technology in the heath care industry, and billions to create green jobs to
reduce the country’s dependence on foreign oil are also included.
IMPACT OF CAPITAL MARKETS ON COMMERCIAL REAL ESTATE VALUES
Investors have access to less leverage with higher borrowing costs which negatively
impacts real estate values. Leverage is one of the prime motivators for investors to
purchase real estate as it allows investors to control a larger property than they
otherwise could if they had to pay all cash, thus increasing their return on equity.
Leverage also allows investors to spread their equity across multiple properties,
minimizing their risk through diversification.
When there is uncertainty in the markets, lenders hedge their risk by building in a
greater cushion in their underwriting, including increasing: (1) Debt Service Coverage
Ratio (DSCR) requirements, (2) wider loan spreads, (3) and decreasing Loan-to-Values
(LTVs).
Rising DSCR - Prior to the capital markets shakeup, DSCR was at an average of 1.1:1,
which means lenders required $1.10 in NOI for each $1 in debt service. Lenders today
are mitigating risk by requiring that NOIs are 1.25:1 greater than debt service.
Wider Loan Spreads - Competition among lenders forced spreads to historically low
levels in 2006 and early 2007, with the average falling to 100 to 110 basis points over
the 10-year Treasury, which at the time was around 4.65%. The 10-year Treasury has
retreated to the mid-3 percent range, but lenders are pricing in more risk, pushing loan
spreads to an average of 275 basis points over the 10- year Treasury.
Lower LTVs - Approximately one year ago, LTVs were 75 to 80 percent. The rapid
price appreciation cycle has ended, and tighter credit markets are encouraging lenders
PAGE 6
COLLIER COUNTY AREA ANALYSIS
to become more cautious. As a result, LTVs have decreased to the 65 to 70 percent
range.
The news media has continuously reported on current market conditions with statistics
on falling sales, increased inventory, stationary pricing, and a decrease in new home
permits. Homebuyers are taking their time to decide on purchasing a home and in some
markets such as Southwest Florida there is a significant glut of inventory to choose
from. Job growth and the area’s underlying employment base will be prime factors in
how deep and how long the current sales slump continues.
An analysis of population, employment, and income trends for Collier County and the
State of Florida is performed using data provided by NPA Data Services, a recognized
source.
POPULATION
Historical and projected population trends for Collier County are charted below:
POPULATION TRENDS
600
500
400
300
200
100
0
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
Population (1,000's)
Collier County
Year
The population of Collier County increased at a compounded annual rate of 3.37%
from 2004 to 2009. For the same time period, the State of Florida grew at a
compounded annual rate of approximately 1.94%. Over the last ten years Collier
County’s average annual compound change was 3.60%, compared to 1.94% for the
State of Florida.
Looking ahead, both Collier County and the State of Florida are anticipated to
experience continued growth, with future population estimates reflecting growth rates
similar to those experienced in the past. For the period 2009 to 2019, the populations
of Collier County and the State of Florida are expected to increase by an average
annual compound rate of 4.23% and 2.02%, respectively. For the next five years, the
population of Collier County should grow slightly faster than the ten year average.
PAGE 7
POPULATION TRENDS COMPARISON
State of Florida
Collier County
Historical
Current
Projected
Year
1999
2004
2005
2006
2007
2008
Population (000's)
15,759.1
17,342.6
17,736.0
18,057.5
18,251.2
18,673.6
2009
2010
2011
2012
2013
2014
2019
Average Annual
Compound Change
%
Change
%
Change
10.0%
2.3%
1.8%
1.1%
2.3%
Population (000's)
245.1
295.7
306.8
313.2
315.8
332.5
19,091.3
2.2%
349.1
5.0%
19,504.4
19,916.6
20,330.1
20,747.2
21,170.3
23,311.0
2.2%
2.1%
2.1%
2.1%
2.0%
10.1%
365.5
382.1
399.0
416.4
434.5
528.1
4.7%
4.5%
4.4%
4.4%
4.3%
21.6%
Historical
Past 5 years
Past 10 years
Projected
Next 5 years
Next 10 years
20.6%
3.7%
2.1%
0.8%
5.3%
1.94%
1.94%
3.37%
3.60%
2.09%
2.02%
4.47%
4.23%
S our ce: NPA Data Services, Inc.; compi led by IRR
According to a January 2009 Herald Tribune article, “Florida’s population growth
crawled to a near standstill last year, the compounding result of a national recession
and the downturn in the state real estate market. It was the slowest rate in Florida since
1944, during the height of World War II.” According to the U.S. Census Bureau,
Florida population grew by less than 129,000, or by 0.7%, between July 2007 and July
2008. Growth is expected to slow even more in 2009, before return to a more stabilized
growth rate in 2010 and 2011.
As shown in the preceding table, Collier County has historically outpaced the overall
State of Florida in population growth. However, based on the recent statistics the NPA
Data Services, Inc. projection of 4.47% average annual growth for the next five years
appears high.
The following chart from Hank Fishkind, an economist with Fishkind & Associates
shows projected population growth through 2012 for Collier County. The table
following shows the indicated projected percent growth per year which ranges from
0.7% to 1.7% per year from 2009 through 2011, and 2.1% from 2011 to 2012.
PAGE 8
Population
Change
% Change
2007
333,858
7,200
2008
332,854
-1,004
-0.3%
2009
335,150
2,296
0.7%
2010
338,500
3,350
1.0%
2011
344,086
5,586
1.7%
2012
351,387
7,301
2.1%
EMPLOYMENT
Employment trends for both Collier County and the State of Florida should follow a
pattern similar to the population trends for these areas. From 2004 to 2009, Collier
County’s employment grew at an average annual compound rate of 4.36% compared to
2.82% for the State of Florida. These figures indicate that Collier County surpassed
the State of Florida in employment growth over the last five years. Looking back ten
years, Collier County’s employment grew at an average annual compound rate of
5.33%, compared to the State of Florida’s growth rate of 2.63%.
Over the next five and ten years Collier County employment growth should exceed the
State of Florida growth rate. From 2009 to 2014, Collier County should grow by a
4.69% average annual growth rate, while the long term projection, 2009 to 2019, is for
a 4.36% increase. For the same periods, employment in the State of Florida is
expected to grow at average annual compound rates of 2.58% and 2.40%, respectively.
Employment gains are a strong indicator of economic health and generally correlate
with real estate demand. Historically, Collier County has exceeded the State of
Florida’s growth rate, suggesting that Collier County’s relative position is
strengthening.
Employment trends for Collier County and the State of Florida are presented below.
PAGE 9
NON-FARM EMPLOYMENT TRENDS COMPARISON
State of Florida
Collier County
Year
Employment (000's)
%
Change
1999
2004
2005
2006
2007
2008
8,580.5
9,683.1
10,101.7
10,437.5
10,728.8
10,920.3
12.8%
4.3%
3.3%
2.8%
1.8%
131.1
178.0
183.0
192.0
202.4
211.2
35.8%
2.8%
5.0%
5.4%
4.4%
Current
2009
11,127.0
1.9%
220.3
4.3%
Projected
2010
2011
2012
2013
2014
2019
11,409.3
11,750.9
12,078.8
12,352.6
12,640.0
14,110.7
2.5%
3.0%
2.8%
2.3%
2.3%
11.6%
230.8
242.7
254.5
265.4
277.0
337.6
4.8%
5.1%
4.9%
4.3%
4.3%
21.9%
Historical
Average Annual
Compound Change
Historical
Past 5 years
Past 10 years
Projected
Next 5 years
Next 10 years
Employment (000's)
%
Change
2.82%
2.63%
4.36%
5.33%
2.58%
2.40%
4.69%
4.36%
S our ce: NPA Data Services, Inc.; compiled by IRR
As with projected population growth, the NPA Data Services, Inc. projection of 4.02%
average annual growth for the next five years appears high.
The following chart from Hank Fishkind, an economist with Fishkind & Associates
shows projected employment growth through 2012 for Collier County. The table
following shows the indicated projected percent growth per year which ranges from
0.4% to 1.4% per year from 2009 to 2011, and 2.3% from 2011 to 2012.
Employment
Change
% Change
2007
130,795
-4,080
2008
127,286
-3,509
-2.7%
2009
127,845
559
0.4%
2010
128,601
756
0.6%
2011
130,369
1,768
1.4%
2012
133,430
3,061
2.3%
PAGE 10
The following chart depicts the current distribution of employment by industry. In
2009, the largest employment sectors in Collier County are:

Services (43.4%)

FIRE (15.0%)

Construction (12.7%)

Retail Trade (12.3%)
12.3%
2.9%
2.1%
ct
ur
in
g
&
O
th
er
Re
ta
il
Tr
ad
e
Tr
Se
an
rv
sp
ic
or
es
t,
In
fo
W
,U
ho
til
le
sa
le
Tr
ad
e
2.1% 2.6%
in
in
g
nm
an
uf
a
M
ov
er
43.4%
M
E
FI
R
G
Co
ns
t ru
en
t
50.0%
45.0%
40.0%
35.0%
30.0%
25.0%
20.0% 12.7% 15.0%
15.0%
7.0%
10.0%
5.0%
0.0%
ct
io
n
Percentage
EMPLOYMENT SECTORS 2009
Collier County
Sector
By comparison, the State of Florida's largest employment sectors are Services (45.0%),
Retail Trade (11.5%), Government (11.4%), and FIRE (11.3%).
Over the past five years, the largest meaningful percentage gains in employment within
Collier County occurred within the FIRE, Manufacturing, and Construction sectors
with annual average compound growth rates of 6.87%, 5.64%, and 5.44% respectively.
For the State of Florida, the largest meaningful gains in employment over the past five
years occurred within the FIRE and Services sectors with annual average compound
growth rates of 4.49% and 3.08%, respectively.
Ten year projections for Collier County show Manufacturing related employment
leading all other sectors with Retail Trade second. The forecast for the State of Florida
has Services related employment leading all other sectors with Mining & Other second.
PAGE 11
EMPLOYMENT SECTOR TRENDS
Collier County
2004
178.0
2009
220.3
%
of Total
100%
2014
277.0
2019
337.6
'04-'09
4.36%
Construction
FIRE
Government
Manufacturing
Mining & Other
Retail Trade
Services
Transport, Info, Util
Wholesale Trade
21.5
23.8
12.8
3.5
5.1
21.2
81.5
5.1
3.6
28.0
33.1
15.5
4.5
5.6
27.0
95.6
6.4
4.5
12.7%
15.0%
7.0%
2.1%
2.6%
12.3%
43.4%
2.9%
2.1%
35.8
39.6
19.4
5.9
6.8
34.5
121.5
7.9
5.6
40.6
46.8
23.5
7.3
8.1
43.2
151.7
9.6
6.8
5.44%
6.87%
3.79%
5.64%
2.19%
4.99%
3.23%
4.67%
4.75%
5.05%
3.65%
4.60%
5.34%
3.81%
5.02%
4.92%
4.26%
4.21%
3.79%
3.52%
4.29%
4.92%
3.71%
4.80%
4.73%
4.07%
4.06%
Ttl Non-Mfg.
Ttl Office-Related*
174.5
118.1
215.7
144.1
97.9%
65.4%
271.1
180.5
330.3
222.0
4.33%
4.06%
4.67%
4.60%
4.35%
4.42%
Total Employment
* In cludes FIRE, S ervices an d Govern men t
Change Rate
'09-'14
'09-'19
4.69%
4.36%
(Nu mbers in th ous and s (0 00's ))
State of Florida
Total Employment
2004
9,683.1
2009
11,127.0
%
of Total
100%
2014
12,640.0
2019
14,110.7
'04-'09
2.82%
Construction
FIRE
Government
Manufacturing
Mining & Other
Retail Trade
Services
Transport, Info, Util
Wholesale Trade
697.0
1,006.5
1,160.8
417.9
103.2
1,124.7
4,299.1
510.6
363.4
772.1
1,253.7
1,266.9
441.4
111.6
1,283.0
5,003.8
576.1
418.6
6.9%
11.3%
11.4%
4.0%
1.0%
11.5%
45.0%
5.2%
3.8%
892.2
1,411.8
1,434.2
464.1
127.0
1,457.3
5,738.3
637.8
477.4
924.1
1,573.2
1,597.6
480.1
143.7
1,639.5
6,515.1
699.1
538.4
2.07%
4.49%
1.76%
1.10%
1.58%
2.67%
3.08%
2.44%
2.87%
2.93%
2.40%
2.51%
1.01%
2.63%
2.58%
2.78%
2.06%
2.66%
1.81%
2.30%
2.35%
0.84%
2.56%
2.48%
2.67%
1.95%
2.55%
Ttl Non-Mfg.
Ttl Office-Related*
9,265.2
6,466.4
10,685.7
7,524.4
96.0%
67.6%
12,175.9
8,584.2
13,630.6
9,685.9
2.89%
3.08%
2.65%
2.67%
2.46%
2.56%
* In cludes FIRE, S ervices an d Govern men t
Change Rate
'09-'14
'09-'19
2.58%
2.40%
(Nu mbers in th ous and s (0 00's ))
In the following chart, we focus on trends in two broad employment sectors: officerelated and manufacturing employment. For purposes of this analysis, we define officerelated employment as the total number of jobs in the FIRE, Services and Government
sectors. While not all employment in these sectors is office-related, office employment
trends tend to mirror the trends in these three categories combined. In Collier County,
office-related employment is growing at a similar rate as manufacturing employment.
PAGE 12
Collier County
250
Offic e Re lated
Employment (000's)
7
200
6
5
150
4
100
3
2
50
1
0
Manufacturing Employmen t
( 000's)
8
0
2004
2009
Office RelatedYear
2014
2019
Manufacturing
Collier County accounted for approximately 1.53% of the State of Florida's
employment in 1999. In 2009, the ratio is 1.98% and it is projected at 2.39% through
2019. This is an indication that Collier County is growing at a rate above that of the
State of Florida.
Collier County’s economy is substantially dependent on the construction and real estate
sector. Therefore, Collier County has been and should be more susceptible to cyclical
fluctuations that have occurred in other areas dominated by a single industry. The
area’s major employers are listed below.
MAJOR EMPLOYERS
Employer
# of Employees
NCH Healthcare System
Collier County School District
Publix Supermarket
Marriott Hotels
Wal-Mart
Collier County Sheriff’s Office
Winn Dixie Stores Inc.
Home Depot
Gargiulo Inc.
5,000
4,728
3,246
2,328
1,715
1,029
1,014
1,012
800
Source: Collier County EDC / InfoUSA, 2008
UNEMPLOYMENT
The previous section is based on long term projections using historical data to forecast
employment trends. It is a broad brush picture covering a protracted period of time and
the data is considered to be a reliable indicator of future expectations. However, in this
section, we consider the impact of the current unemployment rates on the subject
market.
PAGE 13
Indications of economic health can be gleaned from a review of unemployment rates.
In general, unemployment rates have been increasing over the past few years, but
recently, the rates have been increasing more rapidly. As of December 2008, the
unemployment rate for the State of Florida was 7.8%, up 3.3 percentage points since
December 2007. According to the Bureau of Labor Statistics, Collier County is higher
with an December 2008 rate of 8.1%, up 3.2 percentage points from an unemployment
rate of 4.9%, reported in December 2007. On a national level, the unemployment rate
in December 2008 was 7.1%, up from 4.8% a year earlier, indicating that both the State
of Florida and Collier County are experiencing a slightly higher unemployment than
the national level.
The local economy is largely dependent on the real estate market which has been
significantly depressed over the last two and a half years. The following table from the
U.S. Department of Labor shows Naples/Marco Island employment from 2005 through
November 2008. As shown, there were significant declines in construction
employment due mainly to the downturn in the real estate market. Goods producing
and service-providing employment have also decreased.
Year
2005
2006
2007
2008*
Service‐
Providing
104,700
107,800
108,700
107,045
% Change
‐
3.0%
0.8%
‐1.5%
Goods % Change
Producing
23,500
‐
27,200
15.7%
22,900
‐15.8%
19,318
‐15.6%
Naples ‐ Marco Island
Ntrl Resourrces, % Mining, & Const.
Change
20,300
‐
23,900
17.7%
19,600
‐18.0%
16,173
‐17.5%
Leisure and Hospitality
21,500
21,900
22,800
22,727
% Change
‐
1.9%
4.1%
‐0.3%
All Employees, % Total Nonfarm Change
128,300
‐
135,000
5.2%
131,600
‐2.5%
126,364
‐4.0%
*Through November 2008
Source: U.S. Department of Labor
According to the Economic Development Council of Collier County Market Facts
2008-2009 Report, the industries of Aviation Technology, Biomedical Technology,
Corporate Headquaters, Information Technology and Manufacturing Technology are
some of Collier County’s leading growth industries today, and key targets for
expansion and recruitment efforts.
On a national level, the National Bureau of Economic Research recently reported the
U.S. economy has been in a recession since December 2007, the last month that U.S.
employers added jobs. A November 2008 Associated Press article reported that the
economy has been hit hard in recent months by the housing slump and the broader
financial crisis. Consumers and businesses have cut back on spending. The higher
unemployment could further depress the economy, as jobless workers are more likely
to fall behind on mortgage payments and other debt. Americans cut spending in
October 2008 by the largest amount since November 2001.
DEVELOPMENT
Another issue affecting the region’s economy is the slowdown in residential
construction in the wake of the uncertainty in the mortgage markets. While nearly
every market has been impacted, some have been worse than others. In its 3rd Quarter
2008 report, the Office of Federal Housing Enterprise Oversight (OFHEO) found that
the Naples-Marco Island MSA had a -25.25% decrease in house prices over the trailing
PAGE 14
12 months. The 3rd Quarter 2008 marks the sixth straight quarter of decreases since 1st
Quarter 2007. As housing prices fell, sales lagged, and new employment slowed.
Recently, sales of existing homes increased slightly as home prices declined due to the
large number of short sales, foreclosure and REOs to levels sufficiently low to attract
investors. Sales of new homes continue to slow, and most builders report sales below
their cost. An analysis of MLS sales in 2008 shows a 25% overall increase from 2007,
with a 340% increase in sales in the $100,000 to $199,999 price range from 2007.
Sales of new homes continue to slow, and most builders report sales below their cost.
Construction spending is important to the region’s employment and economy, and as
would be expected, this oversupply will affect future construction. The following chart
illustrates projected construction starts (pertaining to both residential and commercial
real estate) through 2010 for Collier County. This information was obtained from Hank
Fishkind, an economist with Fishkind & Associates.
INCOME
Personal income is a significant factor in determining the real estate demand in a given
market. From 2004 to 2009, Collier County’s income grew at an average annual
compound rate of 3.19%, compared to the State of Florida’s average annual compound
growth rate of 2.01%. The two market areas displayed a similar pattern in per capita
income growth over the last ten years. Collier County's average annual compound
growth rate was 2.99% as compared to 1.90% for the State of Florida. Projections for
PAGE 15
the next five and ten year periods reflect growth rates for Collier County that are
parallel to the anticipated gains for the State of Florida. For the two time frames, 2009
to 2014 and 2009 to 2019, Collier County is anticipated to experience 2.95% and
2.35% average annual growth rates, respectively, compared to the projected growth
rates for the State of Florida of 2.73% and 2.15%.
An examination of income per household reveals that, historically, Collier County has
experienced a growth rate above that of the State of Florida. Future projections predict
similar growth for Collier County compared to the State of Florida. In absolute dollars,
Collier County’s personal income historically has been above that of the State of
Florida, both on per capita and per household bases.
INCOME PER CAPITA COMPARISON
State of Florida
1
Year
1999
2004
2005
2006
2007
2008
Income/Capita
$27,536
$30,099
$31,212
$32,020
$33,385
$33,471
Current
2009
Projected
2010
2011
2012
2013
2014
2019
Historical
Average Annual
Compound Change
1
%
Change
Collier County
1
%
Change
9.3%
3.7%
2.6%
4.3%
0.3%
Income/Capita
$40,366
$46,321
$48,584
$50,092
$54,145
$54,431
$33,250
-0.7%
$54,207
-0.4%
$34,414
$35,559
$36,569
$37,321
$38,035
$41,112
3.5%
3.3%
2.8%
2.1%
1.9%
8.1%
$56,236
$58,235
$60,017
$61,378
$62,682
$68,362
3.7%
3.6%
3.1%
2.3%
2.1%
9.1%
Historical
Past 5 years
Past 10 years
Projected
Next 5 years
Next 10 years
14.8%
4.9%
3.1%
8.1%
0.5%
2.01%
1.90%
3.19%
2.99%
2.73%
2.15%
2.95%
2.35%
Income f igu res ar e s tat ed in year 200 0 cons tan t do llar s.
PAGE 16
INCOME PER HOUSEHOLD COMPARISON
State of Florida
Current
Projected
Year
1999
2004
2005
2006
2007
2008
Income/Household
$69,326
$75,473
$78,112
$80,031
$83,399
$83,439
2009
2010
2011
2012
2013
2014
2019
Average Annual
Compound Growth
1
1
%
Change
Collier County
1
%
Change
8.9%
3.5%
2.5%
4.2%
0.0%
Income/Household
$98,538
$112,596
$117,895
$121,402
$131,169
$131,633
$82,720
-0.9%
$130,875
-0.6%
$85,443
$88,111
$90,432
$92,110
$93,687
$100,292
3.3%
3.1%
2.6%
1.9%
1.7%
7.1%
$135,550
$140,133
$144,181
$147,203
$150,075
$162,327
3.6%
3.4%
2.9%
2.1%
2.0%
8.2%
Historical
Past 5 years
Past 10 years
Projected
Next 5 years
Next 10 years
14.3%
4.7%
3.0%
8.0%
0.4%
1.85%
1.78%
3.05%
2.88%
2.52%
1.94%
2.78%
2.18%
Income f igu res ar e s tat ed in year 200 0 cons tan t do llar s.
CONCLUSION
Over the last two and a half (2.5) to three (3) years the Collier County Market has been
in the stage of the real estate cycle best described as “downturn and contraction”. A
downturn follows a peak in the market and is best characterized as a period where
absorption rates and construction and development activity begin to decline.
Contraction is that period characterized by declining absorption rates, decreasing
prices, and, ultimately, a falloff in the construction and development activity. The
residential market is at the trough in the market cycle and nearing “recovery” as
evidenced by increasing sales pace in response to the reduced retail pricing. However,
the commercial market lags the residential market cycle. Commercial rents and
occupancies are still decreasing. With the recovering residential market, we expect the
commercial market to reach the trough and begin recovery in the next one to two years.
The area was heavily dependent on the construction sector, which has seen dramatic
decreases in employment since 2007. Collier County’s unemployment rate increased to
8.0% in November 2008. As a result of the local economy, the area has also seen a
dramatic decrease in demand for commercial properties. We expect real estate prices in
Collier County to remain relatively stable and in some cases continue to decline with
the deteriorating national and local economies.
PAGE 17
Despite the current national and local economic downturns and their affect on the real
estate market in Collier County, the long term economic outlook for Collier County is
positive. The area lures people from all over the country for tourism as well as
retirement. The beaches and weather are considered major demand drivers for this area
and will be the basis for bringing people to the county when the economy recovers.
Although Collier County is expected to experience a decline in employment,
population growth and income levels, we believe the area will recover and grow in the
future. The expected growth should provide an economic base that supports demand
for real estate in the subject neighborhood and for the subject property. These
conditions should stimulate increases in general property values within the foreseeable
future.
We believe the market contraction has begun to slow and that we will be in a trough
throughout 2009 and quite possibly a good portion of 2010. Most real estate experts
project the Collier County market to improve by early to mid 2010. At this point, when
the market has reached its low point, we should see the real estate industry begin a
moderate upturn, setting the stage for the next expansion.
Subject
PAGE 18
SURROUNDING AREA ANALYSIS
SURROUNDING AREA ANALYSIS
BOUNDARIES
The subject is in the southern part of the Collier County north of the city of Marco
Island. The area is generally described as the area south of Davis Boulevard, North of
Marco Island, East of the Gulf of Mexico and west of County Road 92
ACCESS AND LINKAGES
Primary access to the area is from State Road 41 (Tamiami Trail Secondary access is
from Collier Boulevard (State Road 951)State Road 41 (Tamiami Trail). Road access
is average.
The Naples Airport is located about 8 miles from the market area; travel time is about
10 minutes, depending on traffic conditions. The downtown Naples, the economic and
cultural center of the region, is approximately 8 miles from the market area.
DEMAND GENERATORS
Primary employment centers are to the south in Marco Island, and north in Naples.
There are no major employment centers in the immediate neighborhood.
MARKET AREA SERVICES AND AMENITIES
The nearest commercial area with restaurants, convenience stores and support services
is located along Tamiami Trail and Collier Boulevard. The nearest fire and police
stations are within 4 miles of the property.
DEVELOPMENT ACTIVITY
During the last five years, the area has seen increasing development activity. In
particular the Fiddlers Creek has been a significant source of growth in the immediate
Neighborhood.
Two new residential developments have been announced to the northwest of the
subject property; Sabal Bay projected to have 2,000 units at build out and Treviso Bay
which is projected to have 1,200 residential units
In addition the area has seen new commercial development around the US 41-Collier
Boulevard intersection. With a new Eckerds drug store and a new office/warehouse
center developed on the northeast corner. And a new Walmart Super center is under
construction in the southeast quadrant of US 41 and Collier Boulevard.
OUTLOOK AND CONCLUSIONS
The market area is in the growth stage of its life cycle. Recently development activity
has been increasing. Given the history of the area and the current economic conditions,
it is our opinion that property values will be stagnant in the near future but will
increase gradually in the long term.
PAGE 19
LAND DESCRIPTION AND ANALYSIS
PROPERTY ANALYSIS
LAND DESCRIPTION
Land Area - Acres
Land Area - Square Feet
Source of Land Area
Primary Street Frontage
Shape
Corner
Topography
Drainage
Environmental Hazards
Ground Stability
30.00
1,306,800
Survey
Tamiami Trail East - 883 feet
Irregular
Yes
Level
No problems reported or observed
None reported or observed.
No problems reported or observed
Flood Area Panel Number
Date
Zone
Description
Insurance Required?
120067 603G
November 17, 2005
AE
Within 100-year floodplain
Yes
ZONING; OTHER REGULATIONS
Zoning Jurisdiction
Collier County
Zoning Designation
AG-2
Description
Agricultural
Legally Conforming?
Zoning Change Likely?
Permitted Uses
Other Land Use Regulations
Service
Water
Sewer
Electricity
Natural Gas
Local Phone
Yes
Yes
Agricultural uses
Future Land Use Plan
UTILITIES
Provider
Municipal
Municipal
FP&L
Not Available
EMBARQ
Although the zoning designation has reverted to its previous AG-2 designation, the
location of the subject along with the development in the area would dictate a retail use
being the most homogeneous and feasible future use of the site.
PAGE 20
EASEMENTS, ENCROACHMENTS AND RESTRICTIONS:
We were not provided a current title report to review. We are not aware of any
easements, encumbrances, or restrictions that would adversely affect value. Our
valuation assumes no adverse easements, encroachments or restrictions and that the
subject has a clear and marketable title.
CONCLUSION OF LAND ANALYSIS
Overall, the physical characteristics of the site and the availability of utilities result in
functional utility suitable for a variety of uses including those permitted by zoning.
There are no other particular restrictions on development noted in the analysis.
PAGE 21
REAL ESTATE TAX ANALYSIS
REAL ESTATE TAX ANALYSIS
Real estate taxes and assessments for the current tax year are shown in the following table.
TAXES AND ASSESSMENTS - 2008
Assessed Value
Tax ID
00439880008
Land
$3,000,000
Improvements
$0
Total
$3,000,000
Taxes and Assessments
Ad Valorem
Direct
Tax Rate
Taxes
Assessments
1.10540%
$33,162
Total
$33,162
Based on the concluded market value of the subject, the assessed value appears low.
PAGE 22
HIGHEST AND BEST USE ANALYSIS
HIGHEST AND BEST USE ANALYSIS
HIGHEST AND BEST USE AS VACANT
Legally Permissible
The only permitted uses under zoning that are consistent with prevailing land use
patterns in the area are agricultural uses. However, the site is no longer suited for
agricultural use and a zoning change to retail use is a legal and probable possibility.
Physically Possible
There are no physical limitations that would prohibit development of any of these uses
on the site.
Financially Feasible
Based on our analysis of the market, there is currently limited demand for retail use in
the subject’s area. It appears that a newly developed retail use on the site would not
have a value commensurate with its cost. However, given anticipated growth in the
subject’s area, we expect that retail use would be financially feasible in the future.
Maximally Productive
There does not appear to be any reasonably probable use of the site that would generate
a higher residual land value than retail use.
Conclusion
Future development of the site for retail use is the only use that meets the four tests of
highest and best use. Therefore, it is concluded to be the highest and best use of the
property after a zoning change has been obtained.
AS IMPROVED
No improvements are situated on the site. Therefore, a highest and best analysis as
improved is not applicable.
MOST PROBABLE BUYER
The most probable buyer is a developer.
PAGE 23
VALUATION ANALYSIS
Appraisers usually consider three approaches to estimating the market value of real
property. These are the cost approach, sales comparison approach and the income
capitalization approach.
The cost approach assumes that the informed purchaser would pay no more than the cost
of producing a substitute property with the same utility. This approach is particularly
applicable when the improvements being appraised are relatively new and represent the
highest and best use of the land, or when the property has unique or specialized
improvements for which there is little or no sales data from comparable properties.
The sales comparison approach assumes that an informed purchaser would pay no more
for a property than the cost of acquiring another existing property with the same utility.
This approach is especially appropriate when an active market provides sufficient reliable
data. The sales comparison approach is less reliable in an inactive market, or when
estimating the value of properties for which no directly comparable sales data is available.
The sales comparison approach is often relied upon for owner-user properties.
The income capitalization approach reflects the market’s perception of a relationship
between a property’s potential income and its market value. This approach converts the
anticipated net income from ownership of a property into a value indication through
capitalization. The primary methods are direct capitalization and discounted cash flow
analysis, with one or both methods applied, as appropriate. This approach is widely used
in appraising income-producing properties.
Reconciliation of the various indications into a conclusion of value is based on an
evaluation of the quantity and quality of available data in each approach and the
applicability of each approach to the property type.
Use of the approaches in this assignment is summarized as follows:
APPROACHES TO VALUE
Approach
Cost Approach
Income Capitalization Approach
Applicability to Subject
Not applicable
Applicable
Not applicable
Use in Assignment
Not Utilized
Utilized
Not Utilized
PAGE 24
SALES COMPARISON APPROACH
To apply the sales comparison approach, we searched for sale transactions most relevant
to the subject in terms of location, size, highest and best use, and transaction date. The
most relevant sales are summarized in the following table.
SUMMARY OF COMPARABLE LAND SALES
Sale
SF;
$/SF
No. Name/Address
Date
Sale Price
Acres
Zoning
Land
$/Acre
1 Heritage Bay Retail
Aug-07
$8,500,000
502,247
Planned
$16.92
$737,207
Immokalee Rd.
11.53
Naples
Collier County
FL
Comments:
This property was bought by an investment group headed by steve hovland of
2 Pine Air Lakes Unit 6 Lot
Aug-07
$7,800,000
494,842
Pine Air
$15.76
$686,620
Naples Blvd.
11.36
Naples
Collier County
FL
Comments:
confirmed via public records. Property is approved for 120,000 sf of retail
3 Pine Air Lakes Unit 3 Lot
Dec-07
$6,650,000
397,703
$16.72
$728,368
6381 Naples Blvd.
9.13
Naples
Collier County
FL
4 Meridian Marketplace
Sep-08
$6,850,000
443,441 Commercial $15.45
$672,888
Pine Ridge Road and Livingston Rd.
10.18
Naples
Collier County
FL
Comments:
Sale price includes $150,000 in pre-paid transportation impact fees, $200,000 in
5 Triad Parcel
May-08
$3,200,000
400,752 Commercial
$7.98
$347,826
17801 S. Tamiami Trl.
9.20
Fort Myers
Lee County
FL
Comments:
Property is a the future site of Phase 3 of a mini storage facility. Property is
PAGE 25
COMPARABLE LAND SALES MAP
Sale 5
Sale 1
Sale 2
Sale 3
Sale 4
Subject
PAGE 26
ANALYSIS AND ADJUSTMENT OF SALES
The sales are compared to the subject and adjusted to account for material differences
that affect value. The following table summarizes the adjustments we make to each
sale.
LAND SALES ADJUSTMENT GRID
Name
Address
Subject
Comparable 1
Treviso Bay
Heritage Bay
Outparcel Retail Center Land
Comparable 2
Pine Air Lakes
Unit 6 Lot 2
Comparable 3
Pine Air Lakes
Unit 3 Lot 1
SEC of Southwest
Blvd and Tamiami
Trail East
Immokalee Rd.
City
Naples
County
Collier
Sale Date
Sale Price
Square Feet
1,306,800
Acres
30.00
Database ID
Price Per Square Foot
PROPERTY RIGHTS
% ADJUSTMENT
FINANCING TERMS
% ADJUSTMENT
CONDITIONS OF SALE
% ADJUSTMENT
MARKET CONDITIONS
4/15/2009
ANNUAL % ADJUSTMENT
-25%
CUMULATIVE ADJUSTED PRICE
LOCATION
% ADJUSTMENT
ACCESS/EXPOSURE
% ADJUSTMENT
SIZE
% ADJUSTMENT
SHAPE AND TOPOGRAPHY
% ADJUSTMENT
ZONING
% ADJUSTMENT
Net $ Adjustment
Net % Adjustment
Final Adjusted Price
Overall Adjustment
Range of Adjusted Prices
Average
Indicated Value
Naples
Collier
Aug-07
$8,500,000
502,247
11.53
213076
$16.92
Fee Simple
0%
Naples
Collier
Aug-07
$7,800,000
494,842
11.36
221194
$15.76
Fee Simple
0%
Naples
Collier
Dec-07
$6,650,000
397,703
9.13
237898
$16.72
Fee Simple
0%
0%
0%
0%
0%
Aug-07
-41%
$9.99
Similar
0%
Similar
0%
Superior
-10%
Similar
0%
Superior
-10%
-$2.00
-20%
$7.99
-53%
0%
Aug-07
-43%
$8.98
Similar
0%
Similar
0%
Superior
-10%
Similar
0%
Superior
-10%
-$1.80
-20%
$7.19
-54%
0%
Dec-07
-33%
$11.20
Similar
0%
Similar
0%
Superior
-10%
Similar
0%
Superior
-10%
-$2.24
-20%
$8.96
-46%
$5.61 - $8.96
$7.66
$6.00
Naples Blvd. 6381 Naples Blvd.
Comparable 4
Meridian
Marketplace
Comparable 5
Triad Parcel
Pine Ridge Road 17801 S. Tamiami
and Livingston Rd.
Trl.
Naples
Fort Myers
Collier
Lee
Sep-08
May-08
$6,850,000
$3,200,000
443,441
400,752
10.18
9.20
287562
319911
$15.45
$7.98
Fee Simple
Fee Simple
0%
0%
ncing, cash to seller.
0%
0%
0%
Sep-08
-15%
$13.13
Superior
-15%
Similar
0%
Superior
-10%
Similar
0%
Superior
-10%
-$4.60
-35%
$8.53
-45%
0%
May-08
-22%
$6.23
Inferior
10%
Similar
0%
Superior
-10%
Similar
0%
Superior
-10%
-$0.62
-10%
$5.61
-30%
The comparables were adjusted for deflation since the time of sale. This deflation
adjustment also includes a discount for the probable holding period until the zoning
change is made and the market indicates that development is feasible. The sales were
also adjusted for locational differences. The subject is 3 times larger than the largest
comparable. In the current economic climate it is more difficult to finance a larger
project than a smaller project, thus a size adjustment is indicated. The subject is zoned
AG-2 and the comparables are zoned for commercial uses. Although the subject could
obtain a zoning change, there would be a cost/effort factor that must be compensated
for.
PAGE 27
LAND VALUE CONCLUSION
We give greatest weight to the lower end of the range and arrive at a land value
conclusion as follows:
LAND VALUE CONCLUSION
Indicated Value per Square Foot
Subject Square Feet
Indicated Value
Rounded
$6.00
1,306,800
$7,840,800
$7,840,000
PAGE 28
RECONCILIATION AND CONCLUSION OF VALUE
RECONCILIATION AND CONCLUSION OF VALUE
As discussed previously, we use only the sales comparison approach in developing an
opinion of value for the subject. The cost and income approaches are not applicable, and
are not used.
Based on the preceding valuation analysis, and subject to the definitions, assumptions, and
limiting conditions expressed in the report, our value opinion follows:
VALUE CONCLUSION
Appraisal Premise
Market Value
Interest Appraised
Fee Simple
Date of Value
April 15, 2009
Value Conclusion
$7,840,000
EXPOSURE AND MARKETING TIMES
Our estimates of exposure and marketing times are as follows:
EXPOSURE TIME AND MARKETING
PERIOD
Exposure Time (Months)
Marketing Period (Months)
12
12
PAGE 29
CERTIFICATION
CERTIFICATION
We certify that, to the best of our knowledge and belief:
1.
The statements of fact contained in this report are true and correct.
2.
The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions,
and conclusions.
3.
We have no present or prospective interest in the property that is the subject of this report and no
personal interest with respect to the parties involved.
4.
We have no bias with respect to the property that is the subject of this report or the parties involved
with this assignment.
5.
Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
6.
Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent
event directly related to the intended use of this appraisal.
7.
Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute, which includes the Uniform Standards of Professional
Appraisal Practice (USPAP), and also in conformity with the appraisal regulations issued in
connection with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
(FIRREA).
8.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
9.
Louis Bobbitt, MAI made a personal inspection of the property that is the subject of this report.
Carlton J. Lloyd, MAI has personally inspected the subject.
10.
No one provided significant real property appraisal assistance to the person(s) signing this
certification
11.
This appraisal is not based on a requested minimum valuation, a specific valuation, or the approval
of a loan.
12.
We have not relied on unsupported conclusions relating to characteristics such as race, color,
religion, national origin, gender, marital status, familial status, age, receipt of public assistance
income, handicap, or an unsupported conclusion that homogeneity of such characteristics is
necessary to maximize value.
13.
We have experience in appraising properties similar to the subject and are in compliance with the
Competency Rule of USPAP.
14.
As of the date of this report, Louis Bobbitt, MAI and Carlton J. Lloyd, MAI have completed the
continuing education program of the Appraisal Institute.
Louis C. Bobbitt, MAI
PAGE 30
ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal is based on the following assumptions, except as otherwise noted in the
report.
1. The title is marketable and free and clear of all liens, encumbrances, encroachments,
easements and restrictions. The property is under responsible ownership and
competent management and is available for its highest and best use.
2. There are no existing judgments or pending or threatened litigation that could affect
the value of the property.
3. There are no hidden or undisclosed conditions of the land or of the improvements that
would render the property more or less valuable. Furthermore, there is no asbestos in
the property.
4. The revenue stamps placed on any deed referenced herein to indicate the sale price
are in correct relation to the actual dollar amount of the transaction.
5. The property is in compliance with all applicable building, environmental, zoning,
and other federal, state and local laws, regulations and codes.
6. The information furnished by others is believed to be reliable, but no warranty is
given for its accuracy.
This appraisal is subject to the following limiting conditions, except as otherwise noted in
the report.
1. An appraisal is inherently subjective and represents our opinion as to the value of the
property appraised.
2. The conclusions stated in our appraisal apply only as of the effective date of the
appraisal, and no representation is made as to the effect of subsequent events.
3. No changes in any federal, state or local laws, regulations or codes (including,
without limitation, the Internal Revenue Code) are anticipated.
4. No environmental impact studies were either requested or made in conjunction with
this appraisal, and we reserve the right to revise or rescind any of the value opinions
based upon any subsequent environmental impact studies. If any environmental
impact statement is required by law, the appraisal assumes that such statement will be
favorable and will be approved by the appropriate regulatory bodies.
5. Unless otherwise agreed to in writing, we are not required to give testimony, respond
to any subpoena or attend any court, governmental or other hearing with reference to
the property without compensation relative to such additional employment.
6. We have made no survey of the property and assume no responsibility in connection
with such matters. Any sketch or survey of the property included in this report is for
illustrative purposes only and should not be considered to be scaled accurately for
size. The appraisal covers the property as described in this report, and the areas and
dimensions set forth are assumed to be correct.
PAGE 31
7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any,
and we have assumed that the property is not subject to surface entry for the
exploration or removal of such materials, unless otherwise noted in our appraisal.
8. We accept no responsibility for considerations requiring expertise in other fields.
Such considerations include, but are not limited to, legal descriptions and other legal
matters such as legal title, geologic considerations such as soils and seismic stability,
and civil, mechanical, electrical, structural and other engineering and environmental
matters.
9. The distribution of the total valuation in the report between land and improvements
applies only under the reported highest and best use of the property. The allocations
of value for land and improvements must not be used in conjunction with any other
appraisal and are invalid if so used. The appraisal report shall be considered only in
its entirety. No part of the appraisal report shall be utilized separately or out of
context.
10. Neither all nor any part of the contents of this report (especially any conclusions as to
value, the identity of the appraisers, or any reference to the Appraisal Institute) shall
be disseminated through advertising media, public relations media, news media or
any other means of communication (including without limitation prospectuses,
private offering memoranda and other offering material provided to prospective
investors) without the prior written consent of the person signing the report.
11. Information, estimates and opinions contained in the report, obtained from third-party
sources are assumed to be reliable and have not been independently verified.
12. Any income and expense estimates contained in the appraisal report are used only for
the purpose of estimating value and do not constitute predictions of future operating
results.
13. If the property is subject to one or more leases, any estimate of residual value
contained in the appraisal may be particularly affected by significant changes in the
condition of the economy, of the real estate industry, or of the appraised property at
the time these leases expire or otherwise terminate.
14. No consideration has been given to personal property located on the premises or to
the cost of moving or relocating such personal property; only the real property has
been considered.
15. The current purchasing power of the dollar is the basis for the value stated in our
appraisal; we have assumed that no extreme fluctuations in economic cycles will
occur.
16. The value found herein is subject to these and to any other assumptions or conditions
set forth in the body of this report but which may have been omitted from this list of
Assumptions and Limiting Conditions.
17. The analyses contained in the report necessarily incorporate numerous estimates and
assumptions regarding property performance, general and local business and
economic conditions, the absence of material changes in the competitive environment
and other matters. Some estimates or assumptions, however, inevitably will not
materialize, and unanticipated events and circumstances may occur; therefore, actual
PAGE 32
results achieved during the period covered by our analysis will vary from our
estimates, and the variations may be material.
18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We
have not made a specific survey or analysis of any property to determine whether the
physical aspects of the improvements meet the ADA accessibility guidelines. In as
much as compliance matches each owner’s financial ability with the cost to cure the
non-conforming physical characteristics of a property, we cannot comment on
compliance to ADA. Given that compliance can change with each owner’s financial
ability to cure non-accessibility, the value of the subject does not consider possible
non-compliance. A specific study of both the owner’s financial ability and the cost to
cure any deficiencies would be needed for the Department of Justice to determine
compliance.
19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries
and/or affiliates. It may not be used or relied upon by any other party. All parties who
use or rely upon any information in the report without our written consent do so at
their own risk.
20. No studies have been provided to us indicating the presence or absence of hazardous
materials on the subject property or in the improvements, and our valuation is
predicated upon the assumption that the subject property is free and clear of any
environment hazards including, without limitation, hazardous wastes, toxic
substances and mold. No representations or warranties are made regarding the
environmental condition of the subject property and the person signing the report
shall not be responsible for any such environmental conditions that do exist or for any
engineering or testing that might be required to discover whether such conditions
exist. Because we are not experts in the field of environmental conditions, the
appraisal report cannot be considered as an environmental assessment of the subject
property.
21. The person signing the report may have reviewed available flood maps and may have
noted in the appraisal report whether the subject property is located in an identified
Special Flood Hazard Area. We are not qualified to detect such areas and therefore do
not guarantee such determinations. The presence of flood plain areas and/or wetlands
may affect the value of the property, and the value conclusion is predicated on the
assumption that wetlands are non-existent or minimal.
22. Integra Realty Resources – Southwest Florida is not a building or environmental
inspector. Integra Southwest Florida does not guarantee that the subject property is
free of defects or environmental problems. Mold may be present in the subject
property and a professional inspection is recommended.
23. The appraisal report and value conclusion for an appraisal assumes the satisfactory
completion of construction, repairs or alterations in a workmanlike manner.
24. It is expressly acknowledged that in any action which may be brought against Integra
Realty Resources – Southwest Florida, Integra Realty Resources, Inc. or their
respective officers, owners, managers, directors, agents, subcontractors or employees
(the “Integra Parties”), arising out of, relating to, or in any way pertaining to this
engagement, the appraisal reports, or any estimates or information contained therein,
PAGE 33
the Integra Parties shall not be responsible or liable for an incidental or consequential
damages or losses, unless the appraisal was fraudulent or prepared with gross
negligence. It is further acknowledged that the collective liability of the Integra
Parties in any such action shall not exceed the fees paid for the preparation of the
appraisal report unless the appraisal was fraudulent or prepared with gross
negligence. Finally, it is acknowledged that the fees charged herein are in reliance
upon the foregoing limitations of liability.
25. Integra Realty Resources – Southwest Florida, an independently owned and operated
company, has prepared the appraisal for the specific purpose stated elsewhere in the
report. The intended use of the appraisal is stated in the General Information section
of the report. The use of the appraisal report by anyone other than the Client is
prohibited except as otherwise provided. Accordingly, the appraisal report is
addressed to and shall be solely for the Client’s use and benefit unless we provide our
prior written consent. We expressly reserve the unrestricted right to withhold our
consent to your disclosure of the appraisal report (or any part thereof including,
without limitation, conclusions of value and our identity), to any third parties. Stated
again for clarification, unless our prior written consent is obtained, no third party may
rely on the appraisal report (even if their reliance was foreseeable).
26. The conclusions of this report are estimates based on known current trends and
reasonably foreseeable future occurrences. These estimates are based partly on
property information, data obtained in public records, interviews, existing trends,
buyer-seller decision criteria in the current market, and research conducted by third
parties, and such data are not always completely reliable. Integra Realty Resources,
Inc. and the undersigned are not responsible for these and other future occurrences
that could not have reasonably been foreseen on the effective date of this assignment.
Furthermore, it is inevitable that some assumptions will not materialize and that
unanticipated events may occur that will likely affect actual performance. While we
are of the opinion that our findings are reasonable based on current market conditions,
we do not represent that these estimates will actually be achieved, as they are subject
to considerable risk and uncertainty. Moreover, we assume competent and effective
management and marketing for the duration of the projected holding period of this
property.
27. All prospective value estimates presented in this report are estimates and forecasts
which are prospective in nature and are subject to considerable risk and uncertainty.
In addition to the contingencies noted in the preceding paragraph, several events may
occur that could substantially alter the outcome of our estimates such as, but not
limited to changes in the economy, interest rates, and capitalization rates, behavior of
consumers, investors and lenders, fire and other physical destruction, changes in title
or conveyances of easements and deed restrictions, etc. It is assumed that conditions
reasonably foreseeable at the present time are consistent or similar with the future.
PAGE 34
The appraisal is also subject to the following:
PAGE 35
ADDENDUM A
APPRAISER QUALIFICATIONS
PROFESSIONAL QUALIFICATIONS OF
LOUIS C. BOBBITT, MAI
EXPERIENCE:
Real Estate Analyst for INTEGRA REALTY RESOURCES – SOUTHWEST
FLORIDA, NAPLES. Actively engaged in real estate valuation and consulting
since 1983. Practice is focused on community/neighborhood shopping centers, power
centers, office buildings-CBD and suburban, warehouse/distribution, multi-family,
condominium projects, hotels and motels, vacant land and special purpose properties.
Specialized services include appraisals, portfolio valuation, market feasibility studies,
acquisition/disposition counseling, and litigation support in connection with real
estate transactions. Clients served include life insurance companies and pension fund
advisors, banks and financial institutions, conduits, developers and investors, law
firms, business/industry and government, and mortgage bankers. Valuations have
been performed for condemnation purposes, estate, financing, equity participation
and due diligence support. Economic feasibility studies for large mixed use and
residential subdivisions, villas, and mid and high-rise condominium projects.
Valuations and market studies have been done on proposed and partially completed
residential projects as well as renovated and existing structures.
PROFESSIONAL
ACTIVITIES:
Member:
Appraisal Institute – MAI Certificate Number 10379
Licensed:
Florida State Certified General Real Estate Appraiser
License No. 0001271
Member:
MENSA
EDUCATION:
University of Illinois, Chicago Circle, Chicago, Illinois
Successfully completed numerous real estate and valuation courses and seminars
sponsored by the Appraisal Institute, accredited universities and others.
Real Estate Practices and Principals – 1984
Real Estate Finance - 1984
Real Estate Law - 1984
Real Estate Marketing - 1984
Real Estate Appraisal Principals - 1989
Basic Valuation Procedures - 1989
Capitalization Theory and Technique, A - 1989
Capitalization Theory and Technique, B - 1989
Case Studies in Real Estate Valuation - 1991
Report Writing and Valuation Analysis - 1991
Standards of Professional Practice, Part A - 1991
QUALIFIED BEFORE
COURTS AND
ADMINISTRATIVE
BODIES:
Standards of Professional Practice, Part B - 1991
The Appraisers Complete Review Seminar - 1994
USPAP Core Law for Appraisers - 1994
The Professional Appraiser - 1994
Understanding Limited Appraisals - 1994
Wetland, Mitigation and Severable Rights - 1995
The Appraiser as Expert Witness - 1995
Internet and the Appraiser - 1996
Professional Standards USPAP Update/Law - 1996
Standards of Professional Practice, Part C – 1998
Standards of Professional Practice, Part C - 2001
Qualified as an expert witness in U.S. Federal Bankruptcy Court and Monroe County
Court
PROFESSIONAL QUALIFICATIONS OF
EXPERIENCE:
Integra Realty Resources Southwest Florida
Formerly Appraisal Research Corporation of Naples
Naples and Sarasota, Florida
Senior Real Estate Analyst since 1995
Director of the Sarasota office of Integra Realty Resources –
Southwest Florida since 2006.
Actively engaged in real estate valuation since 1995. Territories
include Collier, Lee, Charlotte, Sarasota, Desoto and Hendry
Counties. Performed assignments for a multitude of savings and loan
associations, commercial banks, and other financial institutions.
Experienced in , residential (single and multi-family), office
buildings, restaurants, commercial retail centers, industrial
warehouse properties, proposed PUD subdivisions, golf courses and
country clubs. Clients include, but are not limited to, developers,
investors, lawyers, mortgage banking firms, local, state, and federal
agencies, and individuals.
PROFESSIONAL
ACTIVITIES:
Member:
Appraisal Institute – MAI Designated since 2008.
Licensed:
Florida State Certified General Real Estate Appraiser
License No. 002618
EDUCATION:
Bachelor Of Arts Degree 1989, State University of N.Y. at Albany
Successfully completed numerous real estate and valuation courses
and seminar sponsored by the Appraisal Institute.
INTEGRA REALTY RESOURCES, INC.
CORPORATE PROFILE
Integra Realty Resources, Inc. offers the most comprehensive property valuation and
counseling coverage in the United States with 56 independently owned and operated offices in
33 states. Integra was created for the purpose of combining the intimate knowledge of wellestablished local firms with the powerful resources and capabilities of a national company.
Integra offers integrated technology, national data and information systems, as well as
standardized valuation models and report formats for ease of client review and analysis.
Integra’s local offices have an average of 25 years of service in the local market, and each is
headed by a Managing Director who is an MAI member of the Appraisal Institute.
A listing of IRR’s local offices and their Managing Directors follows:
ATLANTA, GA - J. Carl Schultz, Jr., MAI, SRA, CRE
ATLANTIC COAST, NJ - Anthony S. Graziano, MAI, CRE
AUSTIN, TX - Randy A. Williams, MAI, SR/WA
BALTIMORE, MD - G. Edward Kerr, MAI
BOISE, ID - Bradford T. Knipe, MAI, ARA, CCIM
BOSTON, MA - David L. Cary, MAI, SRA, CRE
CHARLOTTE, NC - Fitzhugh L. Stout, MAI, CRE
CHICAGO, IL - Gary K. DeClark, MAI, CRE, FRICS
CHICAGO, IL - Jeffrey G. Pelegrin, MAI
CINCINNATI, OH - Gary S. Wright, MAI, SRA
COLUMBIA, SC - Michael B. Dodds, MAI, CCIM
COLUMBUS, OH – Bruce A. Daubner, MAI
DALLAS, TX - Mark R. Lamb, MAI, CPA
DAYTON, OH - Gary S. Wright, MAI, SRA
DENVER, CO - Brad A. Weiman, MAI
DETROIT, MI - Anthony Sanna, MAI, CRE
FORT WORTH, TX - Donald J. Sherwood, MAI
GREENVILLE, SC – A. Keith Batson, MAI
HARTFORD, CT - Mark F. Bates, MAI, CRE
HOUSTON, TX - David R. Dominy, MAI
INDIANAPOLIS, IN - Michael C. Lady, MAI, SRA, CCIM
KANSAS CITY, MO/KS - Kenneth Jaggers, MAI
LAS VEGAS, NV - Shelli L. Lowe, MAI
LOS ANGELES, CA - John G. Ellis, MAI, CRE
LOUISVILLE, KY - George M. Chapman, MAI, SRA, CRE
MEMPHIS, TN - J. Walter Allen, MAI
MIAMI, FL - Michael Y. Cannon, MAI, SRA, CRE
MILWAUKEE, WI – Sean Reilly, MAI
MINNEAPOLIS, MN – Michael F. Amundson, MAI, CCIM
MORGANTOWN, WV – Thomas A. Motta, MAI
NAPLES, FL – Thomas Tippett, MAI,
NASHVILLE, TN – R. Paul Perutelli, MAI, SRA
NEW YORK, NY – Raymond T. Cirz, MAI, CRE
NORTHERN NJ – Barry J. Krauser, MAI, CRE, FRICS
ORANGE COUNTY, CA – Larry D. Webb, MAI
ORLANDO, FL – Charles J. Lentz, MAI
PHILADELPHIA, PA – Joseph D. Pasquarella, MAI, CRE
PHOENIX, AZ – Walter Winius, Jr., MAI, CRE
PITTSBURGH, PA – Paul D. Griffith, MAI
PORTLAND, OR – Brian A. Glanville, MAI, CRE
PROVIDENCE, RI – Gerard H. McDonough, MAI
RICHMOND, VA – Robert E. Coles, MAI, CRE
SACRAMENTO, CA – Scott Beebe, MAI
SALT LAKE CITY, UT – Darrin Liddell, MAI, CCIM
SAN ANTONIO, TX – Martyn C. Glen, MAI, CRE, FRICS
SAN DIEGO, CA – Jeffrey Greenwald, MAI
SAN FRANCISCO, CA – Jan Kleczewski, MAI
SARASOTA, FL – Julian Stokes, MAI, CRE, CCIM
SAVANNAH, GA – J. Carl Schultz, Jr., MAI, SRA, CRE
SEATTLE, WA – Allen N. Safer, MAI
SYRACUSE, NY – William J. Kimball, MAI
TAMPA, FL – Bradford L. Johnson, MAI
TULSA, OK – Robert E. Gray, MAI
WASHINGTON, DC – Patrick C. Kerr, MAI, SRA
WILMINGTON, DE – Douglas Nickel, MAI
IRR de Mexico – Oscar J. Franck
Corporate Office
1133 Avenue of the Americas, 27th Floor, New York, New York 10036
Telephone: (212) 255-7858; Fax: (646) 424-1869; E-mail [email protected]
Website: www.irr.com
SUBJECT PHOTOGRAPHS
ADDENDUM B
SUBJECT PHOTOGRAPHS
SUBJECT PHOTOGRAPHS
Tamiami Trail East
(Photo Taken on April 15, 2009)
Tamiami Trail West
Southwest Boulevard south
Subject frontage on Tamiami
Subject Frontage on SW Blvd
Western neighboring property
ADDENDUM C
PROPERTY INFORMATION
A
PUD
F
F
F
F
F
F
F
PUD
F
V
PUD
RSF-4
C-3
F
C-5
C-4
AW
WIND ZONE
PUD
133
F
F
132
F
WIND ZONE
F
F
F
PUD
F
F
F
F
F
F
Details
Page 1 of 1
Property Record
Aerial
Sketches
Trim Notices
Current Ownership
Parcel No. 00439880008
Property Address
NO SITE ADDRESS
Owner Name TAMIAMI SOUTHWEST LLC
Addresses 19275 W CAPITOL DR
City BROOKFIELD
State WI
Zip 53045 - 2742
Legal 32 50 26 30+- AC
Section
Township
Range
Acres
Map No.
Strap No.
32
50
26
30
5B32
502632 002.0005B32
Sub No.
100
0
Use Code
ACREAGE HEADER
Millage Area
VACANT RESIDENTIAL
7
2008 Final Tax Roll
Millage
11.054
Latest Sales History
(Subject to Change)
If all Values shown below equal 0 this
parcel was created after the Final Tax Roll
Land Value
(+) Improved Value
(=) Just Value
$ 3,000,000.00
Date
Book - Page
$ 0.00
05 / 2004
3568 - 2789
$ 2,100,000.00
$ 3,000,000.00
12 / 1984
1112 - 1624
$ 0.00
(-) SOH Exempt Value
$ 0.00
(=) Assessed Value
$ 3,000,000.00
(-) Homestead and other Exempt Value
(=) Taxable Value
Amount
$ 0.00
$ 3,000,000.00
SOH = "Save Our Homes" exempt value due to cap on assessment increases.
The Information is Updated Weekly.
http://collierappraiser.com/RecordDetail.asp?Map=&FolioID=0000000439880008
4/15/2009
LoopNet - Treviso Bay, Retail (land), Naples, FL
Page 1 of 6
Property ID: 15813370
http://listing.loopnet.com/15813370
Treviso Bay
Treviso Bay
SE Corner of US-41 and
Southwest Blvd.
Naples, FL 34113
County: Collier
Dan O'Berski
(239) 659-4971
For Sale
Active
Type:
Land
Retail (land)
Date Last Verified:
3/16/2009
Property ID:
15813370
Available Lots
Lot #
Price
$15,681,600
Price Per
Lot Size
Lot Type
Status
($522,720.00/AC)
30.00 AC
Retail (land)
Active
Additional Information
Property Description:
Great piece of land attached to one of the most prestigious developments in Naples. Rare 3 Acre commercial
development opportunity. This premium property sits in front of the 1,200 unit Treviso Bay and PGA Tour
Tournament Players Club Golf Club (TPC). Subject property is 10 minutes to Naples' famous 5th Avenue and part
of a strong growth corridor in this wealthy market: 70,000+ people in 5 miles with median household income
exceeding $50,000. Positioned on US-41 with 43,926 cars a day and excellent visibility. Take advantage of this
incredible price with a short window of opportunity.
Location Description:
SE Corner of US-41 and Southwest Blvd.
Highlights
• $12 PSF
• 43,296 Cars per Day
• Nearly 900 feet on US-41
• Multiple Opportunities!
• 10 minutes to Naples' 5th Avenue
• TPC Tour Course
Brokerage Firm
CB Richard Ellis
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintAll.aspx?LID=15813370&ShowAudit=false
4/16/2009
LoopNet - Treviso Bay, Retail (land), Naples, FL
Page 2 of 6
Map
http://www.loopnet.com/xNet/MainSite/Listing/Profile/PrintAll.aspx?LID=15813370&ShowAudit=false
4/16/2009
LAND SALE OPPORTUNITY
SE CORNER OF SOUTHWEST BLVD AND US-41, NAPLES, FL
Rare large tract of
land on Tamiami Trail
in Naples
For information, contact:
Dan O’Berski
Associate
T 239.659.4971
F 239.659.4028
[email protected]
SPACE:
30 Acres
PRICE:
$12 PSF
LOCATION:
DESCRIPTION:
CB Richard Ellis
Fort Myers-Naples, FL
1100 Fifth Avenue South
Suite 100
T 239.659.1447
F 239.659.4028
6 miles to Naples’ famous 5th Avenue
* Incredible development opportunity
* Superb Naples location
* US-41 location provides top visibility
* In front of Southwest Florida’s only PGA Tour Tournament Players Club
Golf Club
* Outstanding growth corridor
www.cbre.com/ftmyers-naples
©2008, CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified
its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions,
change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions,
assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax
and legal advisors should conduct your own investigation of the property and transaction.
Rare large tract of
in Naples
Dan O’Berski
Associate
T 239.659.4971
F 239.659.4028
[email protected]
CB Richard Ellis
Suite 100
T 239.659.1447
F 239.659.4028
DEMOGRAPHICS
Est. Population 2008
Annual Population Growth 2000-2008
Median Household Income 2008
Traffic Count (ADT Q1 2008)
US-41 (Tamiami Trl) east of Rattlesnake Hammock Rd:
1 mile
4,197
3 miles
27,100
5 miles
66,816
3.5%
3.42%
3.87%
$48,176
$50,188
$50,068
43,926
EAST TRAIL NAPLES DEVELOPMENT MAP
Rare large tract of
in Naples
Dan O’Berski
Associate
T 239.659.4971
F 239.659.4028
[email protected]
CB Richard Ellis
Suite 100
T 239.659.1447
F 239.659.4028
ADDENDUM D
COMPARABLE DATA
LAND SALE PROFILE
Land:Retail
IRR Event ID (213076)
Heritage Bay Retail Center Land
Heritage Bay
Immokalee Rd.
Naples, FL 34120
Sale Date: 08/23/07
Eff. Price/Acre Gross Land: $737,207.29
Eff. Price/SF Gross Land: $16.92
Eff. Price/PotentialSF: $106.25
Property Identification
Legal/Tax/Parcel ID:
49660081080
County:
Collier
MSA:
NAPLES-MARCO ISLAND,
FL METROPOLITAN
STATISTICAL AREA
Site Data
Gross Land Area (Acres):
11.53
Shape:
Rectangular
Gross Land Area (SF):
502,247
Topography:
Level
Usable Land Area (Acres):
11.53
Usable Land Area (SF):
502,247
Ratio of Usable to Gross Land Area:
1.00
Sale Information
Sale Price:
$8,500,000
Sale Date:
08/23/07
Effective R.E. Sale Price:
$8,500,000
Conveyance Document Type:
Warranty Deed
Grantor / Seller:
Lennar Homes, LLC
Conveyance Document Recording:
4064851
Grantee / Buyer:
Heritage Bay Development, Property Rights Conveyed:
LLC
Percent of Interest Conveyed:
Fee Simple
Verified By:
See Comments
Closed
Sale Status:
100.00
Legal
Zoning Code:
PUD
Zoning Description:
Planned Unit Development Flood Zone:
Commercial Retail
Environmental Issues:
Flood Plain:
No
X
No
Utilities and Off-Site
Electricity:
Yes
Telephone:
Yes
Public Water:
Yes
Cable TV:
Yes
Sewer:
Yes
Rail Access:
No
Gas:
Yes
Water/Port Access:
No
Development Potential
Potential Building Area:
80,000
V2006-07-18
Sale Analysis
Proposed Use Change:
No
Entitlement @ T.O.S.:
No
Comments
This property was bought by an investment group headed by steve hovland of Hovland Real Estate. Plans are to develop the land as Heritage
Bay, an 80,000 square foot unanchored retail center along with a single outparcel. There shouldn't be any tenants over 10,000 sf says Hovland.
Scheduled build is in 8months to a year. Hovland expects the rental rate for the center to average 27.5 per square foot NNN. Confrimed Via
public intervuew with Steve Hovland In the Gulf Coast Business Review dated September 14th, 2007.
V2006-07-18
LAND SALE PROFILE
Land:Retail
Pine Air Lakes Unit 6 Lot 2
Pine Air Lakes
Naples Blvd.
Naples, FL 34109
Sale Date: 08/01/07
66760013041
County:
Collier
Submarket:
North Naples
Site Data
11.36
Frontage Feet:
755
494,842
Frontage Description:
613
11.36
Shape:
Irregular
494,842
Topography:
Level
1.00
Sale Information
Sale Price:
$7,800,000
Sale Date:
08/01/07
$7,800,000
Warranty Deed
Grantor / Seller:
Airport Road Limited
Partnership
4056194
Property Rights Conveyed:
Fee Simple
Grantee / Buyer:
JHS & MCB Naples Blvd I, Percent of Interest Conveyed:
LLC
Sale Status:
100.00
Closed
Legal
Zoning Code:
PUD
Flood Plain:
No
Zoning Description:
Pine Air Lakes PUD
No
Electricity:
Yes
Telephone:
Yes
Yes
Rail Access:
No
Well Water Irrigation:
No
Water/Port Access:
No
Well Water Potable:
No
Public Water:
Sewer:
Utilities Description:
Yes
Collier County, FP&L,
EMBARQ
Sale Analysis
Proposed Use Change:
No
Entitlement @ T.O.S.:
No
V2006-07-18
Comments
confirmed via public records. Property is approved for 120,000 sf of retail space. Confirmed through Tony Jablonski on 11/12/2007 that sale
was for raw land and arm's length and confirmed the price.
V2006-07-18
LAND SALE PROFILE
Land:Retail
Pine Air Lakes Unit 3 Lot 1
Pine Air Lakes
6381 Naples Blvd.
Naples, FL 34109
Sale Date: 12/27/07
Property Location:
N/S of Naples Blvd, just west of Airport Pulling Rd
66760010044
County:
Collier
MSA:
Naples
Submarket:
Central Naples
Site Data
9.13
Shape:
Rectangular
397,703
Topography:
Level
9.13
397,703
1.00
Sale Information
$6,650,000
Deed
Grantor / Seller:
Naples Plaza Inc
4315/3021
Grantee / Buyer:
Kohls Department Stores
Inc
Fee Simple
100.00
Not Verified
Sale Status:
Closed
Verification Type:
Legal
Flood Plain:
No
No
Electricity:
Yes
Telephone:
Yes
Public Water:
Yes
Cable TV:
Yes
No
Fiber Optics:
No
No
Rail Access:
No
Sewer:
Yes
Water/Port Access:
No
Gas:
No
Well Water Potable:
V2006-07-18
LAND SALE PROFILE
Land:Retail
Meridian Marketplace
Cambridge Square Tract B
Pine Ridge Road and Livingston Rd.
Naples, FL 34109
Sale Date: 09/08/08
Eff. Price/PotentialSF: $85.63
38451000003, 38450041005, 38450040006
County:
Collier
MSA:
NAPLES-MARCO ISLAND,
FL METROPOLITAN
STATISTICAL AREA
Site Data
10.18
Shape:
Rectangular
443,441
Topography:
Level
10.18
443,441
1.00
Sale Information
Sale Price:
$6,850,000
Sale Date:
09/08/08
$6,850,000
Contract Date:
07/08/08
Listing Price:
$6,850,000
Deed
Grantor / Seller:
C&R Pine Ridge Inc.
4392 1014
Grantee / Buyer:
Pine Ridge Livingston, LLC Property Rights Conveyed:
Fee Simple
Verified By:
Thomas Tippett, MAI,
MRICS
100.00
Sale Status:
Closed
Verification Date:
08/20/08
Verification Source:
Daniel Pioli
Verification Type:
Confirmed-Buyer Broker
Legal
Zoning Code:
CPUD
Flood Plain:
No
Zoning Description:
Commercial
No
Electricity:
Yes
Telephone:
Yes
Public Water:
Yes
Cable TV:
Yes
Sewer:
Yes
Gas:
Yes
V2006-07-18
Development Potential
Potential Building Area:
80,000
Comments
Sale price includes $150,000 in pre-paid transportation impact fees, $200,000 in fill dirt, estimated $75,000 for all project architectural and
engineering and complete plans for 36,041 square foot retail building to be built on lot 100, SDP approval, and pre-paid transportation impact
mitigation fees of $33,000.
V2006-07-18
LAND SALE PROFILE
Land
Triad Parcel
Triad
17801 S. Tamiami Trl.
Sale Date: 05/23/08
07-46-25-00-00009.0010
County:
Lee
MSA:
Fort Myers-Naples
Submarket:
Fort Myers
Site Data
9.20
Frontage Feet:
875
400,752
Frontage Description:
Tamiami Trail
9.20
Traffic Count:
Average
400,752
1.00
Sale Information
$3,200,000
Deed
Grantor / Seller:
DRMJ Enterprises LLC
2008000139085
Grantee / Buyer:
Collier Florida Properties
Fee Simple
Verified By:
Anthony Sartori
100.00
Verification Date:
03/13/09
Sale Status:
Closed
Verification Source:
Michael J. Frye-Remax
(239-489-0444)
Terms of Sale:
Typical market financing,
cash to seller.
Verification Type:
Confirmed-Seller Broker
Legal
Zoning Code:
C-2
Zoning Description:
Commercial
Easement Description:
We are unaware of any
easements or
encumbrance isses.
No
Electricity:
Yes
Telephone:
Yes
Public Water:
Yes
Cable TV:
Yes
No
Sewer:
Yes
Gas:
Yes
V2006-07-18
Sale Analysis
Current Use:
Future Commercial
Development
Comments
Property is a the future site of Phase 3 of a mini storage facility. Property is located on the east side of 41.
V2006-07-18
ADDENDUM E
LETTER OF AUTHORIZATION
CREDIT ADMINSTRATION
12195 Metro Parkway – Suite 7
Fort Myers, Florida 33966
PHONE: (239) 768-7109
FAX: (239) 561-5573
April 1, 2009
Via Email
To:
Integra Realty Resources
Attn:
Carlton J. Lloyd
Borrower:
Tamiami Southwest, LLC
Dear Carl:
You have been selected by TIB Bank to provide an Updated appraisal and Summary Report for
the following property:
XXXX Tamiami Trail East, Naples, FL 34113
PARCEL ID # 00439880008
A 30-ACRE PARCEL OF VACANT LAND
The purpose of the appraisal is to estimate the market value of the Fee Simple interest in the
subject property. Your market value estimate is to be “as-is” as of the date of your last
inspection of said property.
By accepting this appraisal assignment, you agree to prepare your appraisal report in accordance
with the attached TIB Bank Minimum Appraisal Standard and Guidelines. It is suggested that
you familiarize yourself with our standards, as they are more stringent than USPAP. No
unauthorized exceptions to these standards will be permitted. Please include a copy of those
standards in your report as well as a copy of our engagement letter.
Your appraisal report will be used by the bank in connection with a loan decision. Accordingly,
we ask that you pay particular attention to the property and market conditions which influence
the income production capability and marketability of the subject property.
Page 2 of 3
The Credit Department of TIB Bank will thoroughly review your report for compliance. The
assignment is not considered complete until the report has been reviewed and deemed to be
compliant with the minimum standards attached hereto and, by reference, made a part of this
agreement. All requests for additional support, clarification, or consideration submitted to you
after our initial review shall be expeditiously processed.
TIB Bank will notify the appraiser of deficiencies found within 30 days of receipt of the report
and the bank is to receive an update or justification thereof, before the invoice is processed for
payment.
Please submit three (3) copies of the appraisal report, each signed by the appraiser, no later than
4/22/2009. This deadline date may be extended only when circumstances beyond the control of
the engaged appraiser arise. Any extension must be approved in writing by the bank ahead of the
initial deadline stated above. Said copies are to be delivered to:
Ennio A. Alonso, Sr.
TIB Bank
12195 Metro Parkway – Suite 7
[email protected]
[email protected]
In place of one of the hard copy reports referenced above, please provide one of those copies via
a PDF file, please email it to the commercial address above, we would greatly appreciate it.
It is our understanding that you have agreed to do this appraisal for the sum of $2,000. This fee
shall include all expenses incurred by you necessary for completing the assignment.
Be advised that our contract for services is specifically with you as an individual, NOT others in
your firm who may assist in the preparation of this report. As such, you are required to sign this
engagement letter and the appraisal report as the primary appraiser. Your signature on this
engagement letter to TIB Bank, a copy of which is to be included within the addendum of the
appraisal report, specifically acknowledges that you have no financial or other interest in the
property to be appraised or relationships with the potential borrower which might cause a
conflict of interest or otherwise influence your value estimate.
Page 3 of 3
Should you have any questions pertaining to this assignment or are in need of additional
material, please contact the loan officer, William Root, at 239-598-5877.
Please acknowledge your early acceptance of the terms of this engagement by signing below and
returning it to TIB Bank by facsimile transmission at (239) 561-5573. Your formal engagement
is not recognized until TIB Bank is in receipt of your signed acceptance of our mutual
understanding.
Sincerely,
Credit Officer, Real Estate Specialist
I hereby acknowledge my acceptance of this appraisal assignment and will comply with the
requirements as set forth in the Minimum Appraisal Standards and Guidelines of TIB Bank.
Accepted by:
By:
EXHIBIT TO
TIB BANK
MINIMUM APPRAISAL STANDARDS AND GUIDELINES
The objective of an appraisal report is to communicate the appraiser’s reasoning and conclusions in a logical manner
so that the reader is led to the appraiser’s estimation of value. The form, length, and content of appraisal reports
may vary, depending on the type of property being appraised and the nature of the assignment. Therefore, appraisals
utilized by TIB Bank must at a minimum, include:
1.
Be performed by an approved/qualified, independent fee appraiser engaged by the Bank, who is
competent and knowledgeable of the relevant markets, has no direct or indirect interest, financial or
otherwise, in the property appraised and who is state licensed or certified.
2.
Conform to the Uniform Standards of Professional Appraisal Practice (“USPAP”) adopted by the
Appraisal Standards Board of the Appraisal Foundation, the Department Provision notwithstanding.
3.
Disclose any steps taken that were necessary or appropriate to comply with the Competency Provision
of the USPAP.
4.
The appraisal must be based on the following definition of Market Value which should be a part of the
appraisal report:
Market Value means the most probable price with a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeable, and assuming the price is not affected by undue stimulus. Implicit in this definition is
the consummation of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby:*





5.
Buyer and Seller are typically motivated;
Both parties are well informed or well advised, and acting in what they consider their own
best interests;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
If requested to estimate Fair Value, the following definition must be made a part of the appraisal:
Fair value is the cash price that might reasonably be anticipated in a current sale under all conditions
requisite to a fair sale. A fair sale means that Buyer and Seller are each acting prudently,
knowledgeably, and under no necessity to buy or sell, i.e., other than in forced or liquidation sale. The
appraiser should estimate the cash price that might be received upon exposure of the open market for a
reasonable time, considering the property type and local market conditions. When a current sale is
unlikely, i.e., when it is unlikely that the sale can be completed within twelve (12) months, the
appraiser must discount all cash flows generated by the property to obtain the estimate of fair value.
These cash flows include, but are not limited to, those arising from ownership, development, operation,
and sale of the property. The discount applied shall reflect that appraiser’s judgment of what a
prudent, knowledgeable purchaser under no necessity to buy would be willing to pay to purchase the
property in a current sale.
The following definition requires the appraiser to estimate the following:




Cash price (Market Value)
Marketing Period
Cash flows arising from ownership of the property during the estimated marketing period (for
example, real estate taxes for vacant land or the net operating income/loss from an income
property).
Selling Costs

Discount Rate for properties with marketing periods estimated to be in excess of one year.
6.
Be written and presented in a narrative format or on forms that satisfy all the requirements of these
guidelines.
7.
Be sufficiently descriptive to enable the reader to ascertain the estimated value and the rationale for the
estimate.
8.
Provide detail and depth of analysis that reflect the complexity of the real estate appraised.
9.
Analyze and report, in reasonable detail, any prior sales of the property being appraised that occurred
within the three years preceding the date of the appraisal.
10.
Analyze and report data on current revenues, expenses, and vacancies for the property if it is income
producing.
11.
Analyze and report a reasonable marketing period for the subject property.
12.
Analyze and report on current market conditions and trends that will affect projected income or the
absorption period to the extent they affect the value of the subject property; (appraisals are expected to
reflect values based on existing economic conditions); the appraiser should contrast supply and
absorption, cite vacancy rates and, as appropriate, sales prices, market rents and concessions in
discussing and projecting market conditions.
13.
Describe and provide photographs of the subject property and all comparables including improved
sales and rent comparables. Photographs are not required for vacant land comparables; however, a site
sketch should be included with each land sale.
14.
The appraisal report must contain locator maps indicating the location of the subject property, the
vacant land comparables, the improved sales comparables and the rent comparables.
15.
Land comparables, improved comparables and rent comparables must be analyzed via adjustment
grids, which indicate the magnitude of each adjustment.
16.
Analyze and report appropriate deductions and discounts for any proposed construction, or any
completed properties that are partially leased or leased at other than market rents as of the date of the
appraisal, or any tract developments with unsold units. If encumbered by lease, the leased fee estate
must be valued accordingly.
17.
Include in the certification required by the USPAP an additional statement that the appraisal
assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a
loan.
18.
Contain sufficient supporting documentation with all pertinent information reported, so that the
appraiser’s logic, reasoning, judgment, and analysis in arriving at a conclusion indicate to the reader
the reasonableness of the value reported.
19.
Follow a reasonable valuation method that addresses the direct sales comparison, income, and cost
approaches to value, reconciles those approaches, and explains the elimination of each approach not
applied. Bracket investment yields within regional activity and the attractiveness to investors of
market conditions, as appropriate. PLEASE NOTE: We require a cost approach to include the
depreciation value of all improvements.
20.
The appraiser should note competing real estate for sale, including foreclosed or RTC inventory, and
whatever details can be learned about disposition efforts and their results.
21.
Generally, appraisal should be based on existing zoning and use restrictions. However, the appraiser
may value the property based on both current zoning and any other zoning the appraiser believes is
likely obtainable within a short period. The likelihood of the alternative zoning should be explained in
the report and letter of transmittal for all cases in which the appraiser believes it is appropriate to
supply both valuations. The appraiser must advise of any impending use restrictions, moratoria,
concurrency or land use planning restrictions.
22.
The appraiser must provide the amount of annual property taxes and any past due taxes in the appraisal
report and comment as to their reasonableness. The appraisal report should present real estate tax
comparables when the subject property is a proposed property.
23.
The appraiser should note any potential environmental hazards, including, but not limited to, storage
containers of known or unknown contents, suspected underground storage tanks, evidence of waste
disposal such as sludge, paints, chemical residues, oil spillage, asbestos content in building material, or
similar conditions affecting the value of the property.
24.
The appraiser must provide a Flood Hazard Statement citing the specific panel number of the
appropriate Flood Hazard Map, describing the Flood Zone within which the subject property is located
and providing any available date relative to jurisdictional wetlands, and drainage conditions within the
subject property.
25.
A certification of compliance with TIB BANK Minimum Appraisal Standards and Guidelines must be
made a part of the appraisal report.

Treviso Bay Outparcel

Transcription

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