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HomeMy WebLinkAbout2001- AppraisalAPPRAISAL REPORT of As Of: Prepared For: Prepared By: Vacant Land at 300 W. Airport Drive Sebastian, FL 32958 01/17/2020 City of Sebastian 1225 Main Street Sebastian, FL 32958 Adam B. Preuss, MAI Adam Preuss Appraisal Services, Inc. 936 U.S. Highway 1, Suite A Sebastian, FL 32958 Produced by ClickFORMS Software 800-622-8727 Net=0% Gross=0% Net=0% Gross=0% Net=0% Gross=0% File No.LAND APPRAISAL REPORT Owner Census Tract Map Reference Property Address City County State Zip Code Legal Description Sale Price $Date of Sale Property Rights Appraised Fee Leasehold De Minimis PUD Actual Real Estate Taxes $(yr)Loan Charges to be paid by seller $Other Sales Concessions Client Address Occupant Appraiser Instructions to Appraiser ID E N T I F I C A T I O N Intended User Intended Use Location Urban Suburban Rural Good Avg.Fair Poor Built Up Over 75%25% to 75%Under 25%Employment Stability Growth Rate Fully Dev.Rapid Steady Slow Convenience to Employment Property Values Increasing Stable Declining Convenience to Shopping Demand/Supply Shortage In Balance Oversupply Convenience to Schools Marketing Time Under 3 Mos,4-6 Mos.Over 6 Mos.Adequacy of Public Transportation Present Land Use %1 Family %2-4 Family % Apts % Condo % Commercial Recreational Facilities %Industrial % Vacant %Adequacy of Utilities Change In Present Land Use Not Likely Likely(*)Taking Place (*)Property of Compatibility (*) From To Protection from Detrimental Conditions Predominate Occupancy Owner Tenant % Vacant Police and Fire Protection Single Family Price Range $to $Predominant Value $General Appearance of Properties Single Family Age yrs to yrs.Predominant Age yrs Appeal to Market Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise): NE I G H B O R H O O D Dimensions =Corner Lot Zoning Classification Present Improvements do do not conform to zoning regulations Highest and best use Present use Other (specify) Public Other (Describe)TopoOFF SITE IMPROVEMENTS Elec.Street Access Public Private Size Gas Surface Shape Water Maintenance Public Private View San. Sewer Storm Sewer Curb/Gutter Drainage Underground Elect. & Tel.Sidewalk Street Lights Is the property located in a HUD identified Special Flood Hazard Area?No Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments or other adverse conditions): SI T E The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject. For the Market Data Analysis See grid below See narrative attachment SUBJECT PROPERTY COMPARABLE NO.1 COMPARABLE NO.2 COMPARABLE NO.3 Address Proximity to Subject Sales Price $$$$ Price /$$$$ Data Source +(-)$+(-)$+(-)$Date of Sale and DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTIONAdjustmentAdjustment Adjustment Time Adjustment Location Site/View Sales or Financing Concessions Net Adj.(Total)Plus Minus $Plus Minus $Plus Minus $ Indicated Value MA R K E T D A T A A N A L Y S I S of Subject $$$ Comments on Market Data Comments and Conditions of Appraisal: Final Reconciliation:RE C O N C I L I A T I O N I ESTIMATE THE MARKET VALUE, AS DEFINED, OF SUBJECT PROPERTY AS OF to be $ NL - Land 5/2007 This form may be reproduced unmodified without written permission, however, Bradford Technologies, Inc. must be acknowledged and credited. Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. Fishe Flying Corp. (Less) & City of Sebastian Airport 0508.08 51 300 W. Airport Drive Sebastian Indian River FL 32958 Lengthy Legal Description - Please see Page 7. Parcel ID No.: 30-38-22-00001-0000-00001.0 N/A N/A X 2,425 (2019)N/A N/A City of Sebastian 1225 Main Street, Sebastian, FL 32958 "As If" Vacant Land & Imp Adam B. Preuss, MAI Appraise Current Market Value Please see Page 7.Please see Page 7. X X X X X X 65 5 10 5 15 X X N/A N/A N/A N/A N/A N/A X X X X X X X X X X X X The subject site is located east of W. Airport Drive, which runs parallel to and east of Roseland Road in north Indian River County, within the Sebastian Municipal Airport property. Moreover, the subject site has direct frontage and access to the flight line. 307' x 425'3.00 Ac (130,680 sf) AI, Airport and Industrial Facilities District X Please see Page 7. X X X FPL Indian River County Indian River County X Asphalt Paved X X X X X Level Mid-Sized Acreage Rectangular Airport-Industrial Appears Adequate X The subject property lies within flood zone "X," according to FEMA map #120123 0085H, dated 12/04/21012 (Please see Flood Map). X X 300 W. Airport Drive Sebastian, FL 32958 N/A Per SqFt 0 Public Records N/A N. Indian River Co. 3.00 Ac (130,680 sf) Zoning AI Site Improvements Cleared Prior Sale No Prior Sale in 3 Years 7940 130th Street Sebastian, FL 32958 1.30 miles NE 144,000 3.31 MLS #211556/Public Records/Deed 03/22/2019 N. Indian River County 1.00 Ac (43,560 sf)-60% IL 0 Cleared No Prior Sale in 1 Year Cash Sale None Noted X -60 1.32 4400 77th Street, et al Vero Beach, FL 32967 7.07 miles SE 190,000 1.71 MLS #206785/Public Records/Deed 10/23/2018 N. Indian River County 2.55 Ac (111,078 sf)-30% IL 0 Slight Vegetation +5% Old Home-No Value No Prior Sale in 1 Year Cash Sale None Noted X -25% 1.28 10250 99th Way Sebastian, FL 32958 3.75 miles S 275,000 0.87 Public Records/Deed 04/05/2018 N. Indian River County 7.23 Ac (314,939)+30% IL 0 Heavy Vegetation +20% 04/12/2017 - $120,000 Cash Sale None Noted X 50% 1.31 Please see Page 7. Please see Page 8. Please see Page 7. 01/17/2020 170,000 1 26 N=0% G=0% N=0% G=0% N=0% G=0% Produced by ClickFORMS Software 800-622-8727 File No.APPRAISAL REPORT THIS IS AN APPRAISAL REPORT AS DEFINED AND PERMITTED BY THE UNIFORM STANDARDS OF PROFESSIONAL APPRAISAL PRACTICE. THIS REPORT CONTAINS A SUMMARY OF ALL INFORMATION SIGNIFICANT TO THE SOLUTION OF THE APPRAISAL PROBLEM WHICH IS IN THE APPRAISER'S FILE. CLIENT Census Tract Map Reference PROPERTY IDENTIFICATION AND SUMMARY DESCRIPTION: Street City State Zip Description REAL PROPERTY INTEREST: Fee Simple Leasehold Project Type:PUD Condominium HOA$/Mo. PURPOSE OF THE APPRAISAL:To estimate market value Other INTENDED USE OF THE APPRAISAL:For loan security purposes Other SUMMARY OF THE APPRAISAL PROCEDURES FOLLOWED: SUMMARY OF THE EXTENT OF THE PROCESS COLLECTING, CONFIRMING AND REPORTING DATA: NIEGHBORHOOD SUMMARY: Note: Race and Racial composition of the neighborhood are not appraisal factors Location Urban Surburban Rural Predominant Single Family housing Present land uses %Land use change AGEPRICEoccupancyBuilt Up Over 75 %25-75 %Under 25 %One family Not likely Likely(yrs)$ (000) Growth rate Rapid Stable Slow Owner Low 2-4 family In process Property values Increasing Stable Declining Tenant High Muti-family To: Demand/supply Shortage In balance Over supply Vacant(0-5%)Predominant Commercial Marketing time Under 3 mos.3-6 mos.Over 6 mos.Vacant(over 5%) Neighborhood boundaries, characteristic, marketability of properties, marketing time, trends, and supply and demand: SUMMARY OF SITE DATA: SUMMARY DESCRIPTION OF THE IMPROVEMENTS: SUMMARY OF THE APPRAISAL'S OPINION OF THE HIGHEST AND BEST USE: SUMMARY OF THE SALES COMPARISION APPROACH: ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 Address Proximity to subject Sales Price $$$$ Price/Gross Liv. Area $$$$ VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION +(-)Adjustment DESCRIPTION +(-) Adjustments DESCRIPTION +(-)Adjustments Sale/Financing Concessions Date of sale/Time Location Site View Design and Appeal Quality of Construction Age Condition Above Grade Total Bdrms Baths Totals Bdrms Baths Total Bdrms Baths Total Bdrms Baths Room Count Gross Living Area Sq. ft.Sq. ft.Sq. ft.Sq. ft. Functional Utility Heating/Cooling Garage/Carport Net Adjustments +-+-+- Adjusted Sales Price $$$ INDICATED VALUE BY THE SALES COMPARISON ANALYSIS $ SUMMARY OF THE COST APPROACH OR THE SUPPORTED REASON FOR IT'S EXCLUSION: SUMMARY OF THE INCOME APPROACH OR SUPPORTED REASONS FOR IT'S EXCLUSIONS: SUMMARY OF THE INFORMATION CONSIDERED AND THE REASONING THAT SUPPORTS THE ANALYSES, OPINIONS AND CONCLUSIONS AND ANY ADDITIONAL INFORMATION: SPECIAL ASSUMPTIONS AND LIMITING CONDITIONS THAT EFFECT ANALYSIS,OPINIONS AND CONCLUSIONS: A statement of the normal assumptions and limiting conditions that effect the analyses,opinions and conclusions is attached to this report. DEFINITION OF VALUE: I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED,OF THE REAL PROPERTY THAT IS SUBJECT OF THIS REPORT TO BE $ My analysis, opinions and conclusions were developed, and this Appraisal Report was prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Standards Board of the Appraisal Foundation. SIGNATURES AND DATES OF REPORTS:Effective Date of the Appraisal:Date of Report: APPRAISER SUPERVISORY APPRAISAL: Address Address City State Zip City State Zip I Inspected the interior exterior of the subject property.I inspected the interior exerior of the subject property. Signature:Signature: State Cert./License #Expires State Cert/License #Expires Date Signed:Date Signed: Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. City of Sebastian 0508.08 51 300 W. Airport Drive Sebastian FL 32958 Lengthy Legal Description - Please see Page 7. Parcel ID No.: 30-38-22-00001-0000-00001.0 X X X Please see Page 7. Please see Pages 7 & 8. Please see Pages 7 & 8. X X X X X X X N/A N/A N/A N/A N/A N/A 65 5 15 Vacant 15 X The subject site is located east of W. Airport Drive, which runs parallel to and east of Roseland Road in north Indian River County, within the Sebastian Municipal Airport property. Rectangular-shaped, 3.0 acre, AI zoned, cleared site, with frontage and access to the Sebastian Airport flight line. A single-story office building with CBS exterior walls and a dimensional asphalt shingle roof, constructed in 1980 and containing 1,440 sf. And, a steel framed metal warehouse building, constructed in 1980 and containing 3,000 sf. Please see Page 7. Please see Page 8. 300 W. Airport Drive Sebastian, FL 32958 N/A 0.00 N. Indian River Co. 3.00 Ac (130,680 sf) CBS/Steel-Metal 40 yrs 4,440 Bldg-to-Land Ratio 3.4% Zoning AI 1090 Old Dixie Highway Vero Beach, FL 32960 14.99 miles SE 510,000 68 02/15/2019 S. Indian River Co.0 1.20 Ac (52,272 sf) CBS 0 36 yrs 0 7,542 +10% 14.4% CH X 10 75 3005 Industrial Boulevard Vero Beach, FL 32967 10.35 miles SE 390,000 130 09/05/2018 Central Ind Rvr Co.0 2.35 Ac (102,366 sf) Steel-Metal 0 35 yrs 0 3,000 -5% 2.9%-30% IG X -35% 85 4388 U.S. Highway 1 Vero Beach, FL 32967 11.44 miles SE 825,000 75 07/31/2018 Central Ind Rvr Co.0 1.16 Ac (50,530 sf) Steel-Metal 0 34 yrs 0 11,000 +15% 21.8% CH X 15% 86 Please see Page 8. Please see Page 8. Please see Page 8. Please see Page 8. X Please see Page 3. 330,000 01/17/2020 01/26/2020 Adam B. Preuss, MAI 936 U.S. Highway 1, Suite A Sebastian FL 32958 X X FL RZ1991 11/30/2020 01/26/2020 2 26 Produced by ClickFORMS Software 800-622-8727 File No. This appraisal report is subject to the scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. SCOPE OF WORK:The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. DEFINITION OF MARKET VALUE: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, 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: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS:The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 3. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 4. The appraiser has noted in this appraisal report any adverse conditions (such as the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent deficiencies or adverse conditions of the property (such as, but not limited to, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. NL - Land Certification 5/2007 This form may be reproduced unmodified without written permission, however, Bradford Technologies, Inc. must be acknowledged and credited. Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. 3 26 Produced by ClickFORMS Software 800-622-8727 File No. APPRAISER'S CERTIFICATION:The Appraiser certifies and agrees that: 1. I have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 3. I performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. I developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. I have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. I further certify that I considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. I researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. I researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. I selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. I have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 9. I verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale of the subject property. 10. I have knowledge and experience in appraising this type of property in this market area. 11. I am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 12. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct. 13. I have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. I have noted in this appraisal report any adverse conditions (such as, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that I became aware of during the research involved in performing this appraisal. I have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 14. I have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 15. I stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 16. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any other basis prohibited by law. 17. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that I would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event. 18. I personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If I relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, I have named such individual(s) and disclosed the specific tasks performed in this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and I will take no responsibility for it. 19. I identified the client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. Page of 2. I performed a complete visual inspection of the subject property. 20. I am aware that any disclosure or distribution of this appraisal report by me or the client may be subject to certain laws and regulations. Further, I am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. NL - Land Certification 5/2007 This form may be reproduced unmodified without written permission, however, Bradford Technologies, Inc. must be acknowledged and credited. Adam Preuss Appraisal Services, Inc.2001airport300 Case No. 4 26 Produced by ClickFORMS Software 800-622-8727 File No. 21. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. SUPERVISORY APPRAISER'S CERTIFICATION:The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 2. I accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4. This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record" containing my "electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Signature Name Name Company Name Company Name Company Address Company Address Telephone Number Telephone Number Email Address Email Address Date of Signature and Report Date of Signature Effective Date of Appraisal State Certification # State Certification #or State License # or State License #State or Other (describe)State #Expiration Date of Certification or License State Expiration Date of Certification or License SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED Did not inspect subject property Did inspect exterior of subject property from street Date of Inspection APPRAISED VALUE OF SUBJECT PROPERTY $Did inspect interior and exterior of subject property CLIENT Date of Inspection Name Company Name COMPARABLE SALES Company Address Did not inspect exterior of comparable sales from street Did inspect exterior of comparable sales from street Email Address Date of Inspection Page of NL - Land Certification 5/2007 This form may be reproduced unmodified without written permission, however, Bradford Technologies, Inc. must be acknowledged and credited. Adam Preuss Appraisal Services, Inc.2001airport300 Case No. Adam B. Preuss, MAI Adam Preuss Appraisal Services, Inc. 936 U.S. Highway 1, Suite A Sebastian, FL 32958 772-589-8915 adam@preussappraisals.com 01/26/2020 01/17/2020 RZ1991 FL 11/30/2020 300 W. Airport Drive Sebastian, FL 32958 170,000 City of Sebastian 1225 Main Street Sebastian, FL 32958 5 26 Produced by ClickFORMS Software 800-622-8727 File No.APPRAISAL COMPLIANCE ADDENDUM Borrower/Client Address Unit No. City County State Zip Code Lender/Client This Appraisal Compliance Addendum is included to ensure this appraisal report meets all USPAP 2014 requirements. APPRAISAL AND REPORT IDENTIFICATION This Appraisal Report is one of the following types: Appraisal Report This report was prepared in accordance with the requirements of the Appraisal Report option of USPAP Standards Rule 2-2(a). Restricted Appraisal Report This report was prepared in accordance with the requirements of the Restricted Appraisal Report option of USPAP Standards Rule 2-2(b). The intended user of this report is limited to the identified client. This is a Restricted Appraisal Report and the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without the additional information in the appraiser's workfile. ADDITIONAL CERTIFICATIONS I certify that, to the best of my knowledge and belief:.The statements of fact contained in this report are true and correct..The reported analyses, opinions, and conclusions are limited only by the reported assumptions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions..Unless otherwise indicated, I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to parties involved.Unless otherwise indicated, I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment..I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment..My engagement in this assignment was not contingent upon developing or reporting predetermined results..My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal..My analyses, opinions, and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice that were in effect at the time this report was prepared..Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report..Unless otherwise indicated, no one provided significant real property appraisal assistance to the person(s) signing this certification (if there are exceptions, the name of each individual providing significant real property appraisal assistance is stated elsewhere in this report)..This report has been prepared in accordance with Title XI of FIRREA as amended, and any implementing regulations. PRIOR SERVICES .I have NOT performed services, as an appraiser or in another other capacity, regarding the property that is the subject of the report within the three-year period immediately preceding acceptance of this assignment..I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Those services are described in the comments below. PROPERTY INSPECTION .I HAVE made a personal inspection of the property that is the subject of this report..I have NOT made a personal inspection of the property that is the subject of this report. APPRAISAL ASSISTANCE Unless otherwise noted, no one provided significant real property appraisal assistance to the person signing this certification. If anyone did provide significant assistance, they are hereby identified along with a summary of the extent of the assistance provided in the report. ADDITIONAL COMMENTS Additional USPAP related issues requiring disclosure and/or any state mandated requirements: MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY A reasonable marketing time for the subject property is day(s) utilizing market conditions pertinent to the appraisal assignment. A reasonable exposure time for the subject property is day(s). APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Signature Name Name Date of Signature Date of Signature State Certification #State Certification # or State License #or State License # State State Expiration Date of Certification or License Expiration Date of Certification or License Supervisory Appraiser Inspection of Subject Property: Effective Date of Appraisal Did Not Exterior Only from street Interior and Exterior USPAP Compliance Addendum 2014 Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian X X X The reported analyses, opinions and conclusions were developed, and this report have been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, I, Adam B. Preuss, have completed the continuing education program of the Appraisal Institute and the continuing education requirements for state certification. Adam B. Preuss has met the continuing education requirements for state certification. X X 12-24 mos. 12-24 mos. Adam B. Preuss, MAI 01/26/2020 RZ1991 FL 11/30/2020 01/17/2020 6 26 Produced by ClickFORMS Software 800-622-8727 COMMENT ADDENDUM File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Intended User and Intended Use Intended Users of Appraisal: The City of Sebastian, the Federal Aviation Administration (FAA) and Fishe Flying Corp. Intended Use of Appraisal: Assist Scott Baker, Airport Director with the City of Sebastian in evaluating the property that is the subject of this appraisal for the purpose of executing a new Commercial Lease Agreement with Fishe Flying Corp., the current tenant. Legal Description per IRCPA.org ROSELAND SATELLITE FIELD FLEMING GRANT THAT CERTAIN PARCEL LYING IN SEC 29 DESC AS FOLL; BEG AT THE MOST WLY COR OF SAID SEC 29, RUN S 44 DEG 21 MIN 28 SEC E 818.81 FT ON SW BDY OF SEC 29 TO CENTERLINE OF ROSELAND RD; TH N 04 DEG 48 MIN 59 SEC W 514.65 FT ON SAID CENTERLINE; TH N 89 DEG 50 MIN 46 SEC E 644.46 FT; TH N 00 DEG 09 MIN 14 SEC W 542.00 FT TO TRUE POB; TH N 89 DEG 50 MIN 46 SEC E 425.00 FT TO A PT WHICH LIES 75.00 FT W OF THE CENTERLINE OF AN EXISTING AIRPORT TAXIWAY; TH N 00 DEG 09 MIN 14 SEC W 307.00 FT; TH S 89 DEG 50 MIN 46 SEC W 425.00 FT; TH S 00 DEG 09 MIN 14 SEC E 307.00 FT TO TRUE POB Zoning Classification The Airport and Industrial Facilities District (AI) zoning classification is intended to provide a management framework for implementing comprehensive plan objectives and policies for airport facilities and supportive light industrial activities and related development within lands designated IN on the future land use map. In addition, the district shall implement the policies of the City of Sebastian Airport Master Plan. Performance criteria within the Land Development Code requires that land use and development within and adjacent to the Sebastian Airport avoid encroaching upon the airport hazard zone. Furthermore, land uses proposed within noise impact areas defined in the FAA noise control regulations shall comply with FAA guidelines for managing noise impacts through land use regulation. The airport district regulations establish the permitted uses and applicable restrictions within the air operations area. The Federal Aviation Administration (FAA) regulations shall govern the land use, specifications, and placement of structures within the airport operations area. All development in the AI District shall comply with the comprehensive plan, performance criteria in chapter III, section 54-2-7.12, Airport height limitations, article XVIII, Site Plan Review Procedures, as well as other applicable land development regulations. Scope of Appraisal Per the Federal Aviation Administration's restriction, the property located within the Sebastian Municipal Airport is owned by the City of Sebastian and can only be leased, not sold. However, the lease rates are to be established and based upon each property's fair market value. The conundrum is that there are no actual market transactions of these government-owned, airport properties with which to make comparisons to. Thus, as the subject's AI zoning classification, described above, is supportive of light industrial activities, the only logical solution is to develop an opinion of the fair market value based upon sales of publicly-owned, light industrial (IL) zoned properties, with similar characteristics, located throughout the general neighborhood area. Moreover, per the client's instructions, this appraisal concludes two fair market value opinions. First, the value of the land, subject to the hypothetical condition that the subject site is vacant with no existing improvements. And second, the value of the existing improvements, independent from land. The first opinion of value is straight- forward and developed by utilizing comparable land sales. The second opinion of value is developed by utilizing comparable improved sales and then deducting the value of the land. Highest and Best Use Analysis The highest and best use of the subject property, "as if" vacant and as currently improved, reflects those uses which are legally permissible, physically possible, financially feasible and maximally productive. Thus, consideration is given to the site's present zoning and future land use; its size, shape, location, access to roadways and availability of utilities; and surrounding land uses and demand for property and various uses in the current real estate market economy. Moreover, the existing improvements are further analyzed in relation to the maximally productive potential improvements to discover if a change is financially feasible and it was determined that the subject property has a considerable amount of surplus land that could be developed. This surplus land was considered in the market value opinion of the subject property, as currently improved. Approaches to Value and Market Data for the Subject Site - "As If" Vacant Due to the fact that the subject site is appraised "as if" vacant, the Cost and Income Approaches are not pertinent to this appraisal and the Sales Comparison Approach is therefore given sole consideration. Despite the limited number of comparable vacant land sales found throughout the subject's competing neighborhood, it is this appraiser's opinion that the comparable sales utilized herein are the most similar locationally, physically and functionally, as compared to the subject property, as of the effective date of this appraisal. Moreover, all sales were analyzed on a per square foot basis, which is the typical unit of comparison, recognized by active market participants. All three comparable sales utilized herein are located within the northern portion of Indian River County. Moreover, all three sales share a similar, light industrial zoning classification. However, Sale 1 is significantly smaller and Sales 2 & 3 are moderately smaller and larger, respectively. Furthermore, Sales 2 & 3 require various levels of clearing vegetation. With respect to differences in size, it is generally recognized that smaller sites typically sell for a higher unit price than smaller sites and vice versa, due to the principle of economies of scale. After making the necessary adjustments, the unit sale price range tightened from $0.87 - $3.31 per square foot to an adjusted unit sale price range of $1.28 - $1.32 per square foot. Final Reconciliation for the Subject Site - "As If" Vacant Equal weight was given to all three sales within the reconciliation process. Consequently, a unit price of $1.30 per square foot was reconciled, as of the effective date of this appraisal, resulting in a value indication of $170,000 (rounded) for the subject property ($1.30/SF x 130,680 sf = $169,884). Continued on the following page... 7 26 Produced by ClickFORMS Software 800-622-8727 COMMENT ADDENDUM File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Approaches to Value and Market Data for the Existing Subject Improvements - Independent from Land Due to the fact that the subject improvements are older with significant physical depreciation and rental income and expense data is considerably limited, the Cost and Income Approaches were not developed nor were they considered necessary for credible assignment results. Hence, the Sales Comparison Approach is given sole consideration. Despite the limited number of comparable improved sales found throughout the subject's competing neighborhood, it is this appraiser's opinion that the comparable sales utilized herein are the most similar locationally, physically and functionally, as compared to the subject property, as of the effective date of this appraisal. Moreover, all sales were analyzed on a building per square foot basis, which is the typical unit of comparison, recognized by active market participants. All three comparable sales utilized herein are located throughout Indian River County. Moreover, all three sales share a similar industrial/ heavy commercial zoning classification and are improved with similar office/warehouse space as the subject property. One pertinent property characteristic that appeared to significantly influence sales price and thus, a property's unit price, was any surplus or excess land. It was evident that despite the zoning regulations allowing for builing-to-land ratios of 40-50%, that typical builing-to-land ratios ranged from just under 15% to just over 20%, with a median of approximately 17.5%. Therefore, Sales 1 & 3 had builing-to-land ratios that were considered reasonable and typical, but Sale 2 with only 2.9% and the subject property with only 3.4% were considered well below the normal range and have considerable surplus land that could be developed. Therefore, Sale 2 was adjusted for its surplus land, which resulted in a negative 30% adjustment. After making this adjustment, the unit sale price range tightened from $0.68 - $1.30 per square foot of building area to an adjusted unit sale price range of $0.75 - $0.86 per square foot of building area. Final Reconciliation for the Existing Subject Improvements - Independent from Land Equal weight was given to all three sales within the reconciliation process. Consequently, a unit price of $0.82 per square foot was reconciled. This resulted in a value indication of $364,080 for the improvements and the land, excluding the surplus land. However, it was then necessary to deduct the land portion of this value indication in order to determine the value of the improvements only, per the client's instructions. This resulted in a value indication of $330,000 (rounded) for the subject improvements only, as of the effective date of this appraisal ($364,080 - $32,982 = $331,098). Comments and Conditions of Appraisal The land value portion of this appraisal is made subject to the hypothetical condition that the subject property is vacant land with no existing improvements. This appraisal is based upon the extraordinary assumption that the subject's entire vacant site is suitable for development, with no existing environmental hazards or detrimental conditions. This extraordinary assumption is believed to be true; however, in the event that this assumption was determined to be false, the value opinion concluded would likely be impacted. 8 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. STATE OF FLORIDA MAP 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 9 26 Produced by ClickFORMS Software 800-622-8727 File No.AERIAL PLAT VIEW Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 SUBJEC T 10 26 Produced by ClickFORMS Software 800-622-8727 ZONING LOCATION MAP File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 SUBJECT 11 26 Produced by ClickFORMS Software 800-622-8727 LAND USE MAP File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 SUBJECT 12 26 Produced by ClickFORMS Software 800-622-8727 File No.FLOOD MAP ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Flood Map Legends Flood Zone Determination Flood Zones SFHA (Flood Zone): Areas inundated by 500-year flooding Within 250 ft. of multiple flood zones? Community:Areas outside of the 100 and 500 year flood plains Community Name:Areas inundated by 100-year flooding Map Number:Areas inundated by 100-year flooding with velocity hazard Zone:Panel:Panel Date:Floodway areas FIPS Code:Census Tract: Floodway areas with velocity hazard This Report is for the sole benefit of the Customer that ordered and paid for the Report Areas of undetermined but possible flood hazard and is based on the property information provided by that Customer. That Customer's Areas not mapped on any published FIRM use of this Report is subject to the terms agreed to by that Customer when accessing this product. THE SELLER OF THIS REPORT MAKES NO REPRESENTATIONS OR WARRANTIES TO ANY PARTY CONCERNING THE CONTENT, ACCURACY, OR COMPLETENESS OF THIS REPORT INCLUDING ANY WARRANTY OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The seller of this Report shall not have any liability to any third party for any use or misuse of this Report. Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 SUBJECT Out Not within 250 feet 120123 SEBASTIAN, CITY OF X 120123 0085H 12/04/2012 12061 0508.08 13 26 Produced by ClickFORMS Software 800-622-8727 SKETCH ADDENDUM File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of ADAM PREUSS APPRAISAL SERVICES, INC. 1907sebastian695 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Office Building 24.0' 60.0' 50.0' 60.0' Warehouse Building SKETCH CALCULATIONS Perimeter Area Building Area Office Building 1440.0 Warehouse 3000.0 Total Building Area 4440.0 CBS / Asphalt Shingle Steel-Framed / Metal 14 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Gated Entrance to Subject from W. Airport Drive Street Scene of W. Airport Drive Warehouse Building (left) Office Building (right) 15 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 North & East Elevations (Office Building) South & West Elevations (Office Building) Reception Area (Office Building) 16 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Reception Area (Office Building) Lunch Room (Office Building) One of Several Offices (Office Building) 17 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 Mens' Bathroom (Office Building) Womens' Bathroom (Office Building) Office Building (left) Warehouse Building (right) 18 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 North & West Elevations (Warehouse Building) Interior Area (Warehouse Building) View of Flight Line Facing North 19 26 Produced by ClickFORMS Software 800-622-8727 File No.SUBJECT PHOTO ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 View of Flight Line Facing South 20 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. Comparable Land Sales 1-2-3 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 7940 130th Street Sebastian, FL 32958 COMP 1 4400 77th Street, et al Vero Beach, FL 32967 COMP 2 10250 99th Way Sebastian, FL 32958 COMP 3 21 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. Comparable Improved Sales 1-2-3 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 1090 Old Dixie Highway Vero Beach, FL 32960 3005 Industrial Boulevard Vero Beach, FL 32967 4388 U.S. Highway 1 Vero Beach, FL 32967 22 26 Produced by ClickFORMS Software 800-622-8727 File No.LOCATION MAP ADDENDUM Borrower Property Address City County State Zip Code Lender/Client Address Page of Adam Preuss Appraisal Services, Inc. 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 23 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Qualifications of the Appraiser 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 24 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Qualifications of the Appraiser 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 25 26 Produced by ClickFORMS Software 800-622-8727 File No. Borrower Property Address City County State Zip Code Lender/Client Address Page of Qualifications of the Appraiser 2001airport300 Case No. N/A 300 W. Airport Drive Sebastian Indian River FL 32958 City of Sebastian 1225 Main Street, Sebastian, FL 32958 26 26