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Colliers International Appraisal ATLANTIC BEACH MULTI-FAMILY LAND 70 & 85 Dora Drive and 1940 Francis Avenue Atlantic Beach, Florida 32233 APPRAISAL REPORT Date of Report: September 8, 2023 Colliers File #: JAX230313 Client File #: 231632 PREPARED FOR Joe Gerrity Interim City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 PREPARED BY COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LETTER OF TRANSMITTAL Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 500+ offices throughout more than 68 countries worldwide. COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 76 S. Laura Street, Suite 1500 Jacksonville, FL 32202 USA MAIN +1 904 861 1150 FAX +1 904 353 4949 WEB www.colliers.com/valuationadvisory September 8, 2023 Joe Gerrity Interim City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 RE: Atlantic Beach Multi-Family Land 70 & 85 Dora Drive and 1940 Francis Avenue Atlantic Beach, Florida 32233 Colliers File #: JAX230313 Client File #: 231632 Mr. Gerrity: Pursuant with our engagement, the above captioned property was appraised utilizing best practice appraisal principles for this property type. This appraisal report satisfies the scope of work and requirements agreed upon by City of Atlantic Beach and Colliers International Valuation & Advisory Services. The date of this report is September 8, 2023. At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2-2(a). Our appraisal format provides a detailed description of the appraisal process, subject and market data and valuation analyses. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: The subject is a 1.98-acre site at 70 & 85 Dora Drive and 1940 Francis Avenue in Atlantic Beach, Florida. The site has a drainage ditch running across the northwestern portion of the property, reducing the total usable land area to 1.88 acres. The subject property is currently vacant, unimproved land and the City of Atlantic Beach is considering a purchase of the subject property for use as a park and/or stormwater pond. The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice VALUE TYPE INTEREST APPRAISED DATE OF VALUE VALUE As-Is Market Value Fee Simple August 29, 2023 $2,200,000 LETTER OF TRANSMITTAL CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific- assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”. The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at our opinion of value are fully discussed below. We advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results. EXTRAORDINARY ASSUMPTIONS No Extraordinary Assumptions were made for this assignment. HYPOTHETICAL CONDITIONS No Hypothetical Conditions were made for this assignment. RELIANCE LANGUAGE The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Colliers International Valuation & Advisory Services is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by Colliers International Valuation & Advisory Services or portions of such Appraisal, to become part of or be referenced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that Colliers International Valuation & Advisory Services will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to Colliers International Valuation & Advisory Services, by a party satisfactory to Colliers International Valuation & Advisory Services. Colliers International Valuation & Advisory Services does consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide Colliers International Valuation & Advisory Services with an Indemnification Agreement and/or Non-Reliance letter. Colliers International Valuation & Advisory Services hereby expressly grants to Client the right to copy the Appraisal and distribute it to other parties in the transaction for which the Appraisal has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any. Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. LETTER OF TRANSMITTAL CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The signatures below indicate our assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal. If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers International Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below. Sincerely, COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Kyle Hildenbrand Senior Valuation Specialist State Certified General Real Estate Appraiser License #RZ3943 +1 904 861 1105 kyle.hildenbrand@colliers.com Patrick R. Phipps, MAI Managing Director | Jacksonville State Certified General Real Estate Appraiser License #RZ2954 +1 904 861 1114 patrick.phipps@colliers.com TABLE OF CONTENTS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LETTER OF TRANSMITTAL INTRODUCTION _________________________________________________________________________ 1 Executive Summary _____________________________________________________________________ 1 Aerial Photograph ______________________________________________________________________ 2 Subject Property Photographs _____________________________________________________________ 3 Identification of Appraisal Assignment _______________________________________________________ 5 Scope of Work _________________________________________________________________________ 7 DESCRIPTIONS & EXHIBITS _______________________________________________________________ 9 Regional Map __________________________________________________________________________ 9 Regional Analysis ______________________________________________________________________ 10 Local Area Map _______________________________________________________________________ 15 Local Area Analysis ____________________________________________________________________ 16 Site Description _______________________________________________________________________ 24 Aerial Map _________________________________________________________________________ 26 Zoning Map ________________________________________________________________________ 27 Flood Map _________________________________________________________________________ 28 Assessment & Taxation _________________________________________________________________ 29 Zoning Analysis _______________________________________________________________________ 30 Highest & Best Use ____________________________________________________________________ 32 VALUATION ___________________________________________________________________________ 33 Valuation Methods _____________________________________________________________________ 33 Land Valuation ________________________________________________________________________ 33 Land Sales Summation Table ___________________________________________________________ 34 Land Sales Location Map ______________________________________________________________ 35 Land Sales Data Sheets _______________________________________________________________ 36 Calculation of Land Value ______________________________________________________________ 41 CERTIFICATION ASSUMPTIONS & LIMITING CONDITIONS ADDENDA Engagement Letter Survey Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services EXECUTIVE SUMMARY JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City Atlantic Beach State Florida Zip Code 32233 County Duval Core Based Statistical Area (CBSA)Jacksonville, FL Market Jacksonville Submarket Beaches Latitude 30.339080 Longitude -81.411926 Number Of Parcels 3 Assessor Parcels Total Taxable Value $360,941 Census Tract Number 139.02 SITE INFORMATION Land Area Acres Square Feet Usable 1.88 82,039 Unusable 0.09 4,079 Excess 0.00 0 Surplus 0.00 0 Total 1.98 86,118 Topography Level at street grade Shape Irregular Access Average Exposure Average Current Zoning Flood Zone Zone X (Unshaded) Seismic Zone Low Risk Atlantic Beach Multi-Family Land Residential, General, Multi-Family (RG-M) 172119-0000, 172118-0000, 172122-0000 70 & 85 Dora Drive and 1940 Francis Avenue Land - Multi-Family Land VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE AUGUST 29, 2023 FINAL VALUE CONCLUSION FINAL VALUE $2,200,000 $/Unit $56,410 LAND VALUATION LAND VALUE $2,200,000 Value/Unit $56,410 AERIAL PHOTOGRAPH JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 2 SUBJECT PROPERTY PHOTOGRAPHS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 3 VIEW NORTH ON FRANCIS AVENUE VIEW SOUTH ON FRANCIS AVENUE VIEW WEST ON DORA DRIVE VIEW EAST ON DORA DRIVE VIEW NORTH ON MAYPORT ROAD VIEW SOUTH ON MAYPORT ROAD0 SUBJECT PROPERTY PHOTOGRAPHS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 4 VIEW NORTH AT DITCH AREA FROM SUBJECT’S WEST BOUNDARY VIEW EAST AT SUBJECT PROPERTY FROM DORA DRIVE VIEW NORTH AT SUBJECT PROPERTY FROM DORA DRIVE VIEW SOUTH AT SUBJECT PROPERTY FROM DORA DRIVE IDENTIFICATION OF APPRAISAL ASSIGNMENT JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 5 PROPERTY IDENTIFICATION The subject is a 1.98-acre site at 70 & 85 Dora Drive and 1940 Francis Avenue in Atlantic Beach, Duval County, Florida. The assessor ’s parcel numbers are: 172119-0000, 172118-0000, 172122-0000. The legal description of the subject property is presented in the Addenda. CLIENT IDENTIFICATION The client of this specific assignment is City of Atlantic Beach. PURPOSE The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. INTENDED USE The intended use of this appraisal is to assist the client in making internal business decisions related to a potential acquisition of the asset. INTENDED USERS City of Atlantic Beach is the only intended user of this report. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. ASSIGNMENT DATES PERSONAL INTANGIBLE PROPERTY No personal property or intangible items are included in this valuation. PROPERTY AND SALES HISTORY Current Owner The subject title is currently recorded in the name of Hoose Homes and Investments LLC who acquired title to the property on July 14, 2017 as land for $350,000, as recorded in Book 18061 Page 01147 of the Duval County Deed Records. Three-Year Sales History Research of the applicable public records, private data services and an interview of the current owner and/or broker revealed that the subject property has not transferred during the past three years of the effective date of value stated in this report. Subject Sale Status Research of the applicable public records, private data services and an interview of the current owner and/or broker revealed that the subject property is not under a current agreement of sale or option and is not currently offered for sale on the open market. DEFINITIONS This section summarizes the definitions of value, property rights appraised, and value scenarios that are applicable for this appraisal assignment. All other applicable definitions for this assignment are located in the Valuation Glossary section of the Addenda. Date of Report September 8, 2023 Date of Inspection August 29, 2023 Valuation Date - As-Is August 29, 2023 IDENTIFICATION OF APPRAISAL ASSIGNMENT CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 6 DEFINITIONS OF VALUE Given the scope and intended use of this assignment, the following definition of value is applicable: 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 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: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 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. 1 PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple interest. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat.2 VALUE SCENARIOS As-Is Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.3 1 Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472 2 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 3 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 SCOPE OF WORK JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 7 INTRODUCTION The appraisal development and reporting processes requires gathering and analyzing information about those assignment elements necessary to properly identify the appraisal problem to be solved. The scope of work decision must include the research and analyses that are necessary to develop credible assignment results given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. The scope of work for this appraisal assignment is outlined below: • The appraisers analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends. The local area was further studied to assess the general quality and condition, and emerging development trends for the real estate market. The immediate market area was inspected and examined to consider external influences on the subject. • The appraisers confirmed and analyzed legal and physical features of the subject property including sizes of the site, flood plain data, seismic zone, zoning, easements and encumbrances, access and exposure of the site. • The appraisers completed a land market analysis that included market and sub-market overviews. The Jacksonville market and Beaches sub-market overviews analyzed supply/demand conditions using vacancy, absorption, supply change and rent change statistics. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences. • The appraisers conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant. The analysis considered legal, locational, physical and financial feasibility characteristics of the subject site. • The appraisers confirmed and analyzed financial features of the subject property including potential entitlement issues, and tax and assessment records. This information as well as trends established by confirmed market indicators was used to forecast performance of the subject property. • Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions. This appraisal developed the Sales Comparison Approach to value, which was adjusted and reconciled as appropriate. The appraisal develops an opinion of the As-Is Market Value of the subject property’s fee simple interest. • Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are fully described within this document. • We understand the Competency Rule of USPAP and the authors of this report meet the standards. • No one provided significant real property appraisal assistance to appraisers signing this certification. SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: SCOPE OF WORK CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 8 SUBJECT PROPERTY INSPECTION SOURCES OF INFORMATION ITEM SOURCE Tax Information Duval County Tax Collector Zoning Information City of Atlantic Beach Zoning Code Site Size Information Survey, Duval County Property Appraiser New Construction City of Atlantic Beach / Duval County Flood Map InterFlood Demographics Pitney Bowes/Gadberry Group - GroundView® Comparable Information See Comparable Datasheets for details Legal Description Survey Other Property Data Duval County Property Records, Client SUBJECT PROPERTY INSPECTION APPRAISER INSPECTED EXTENT DATE OF INSPECTION Kyle Hildenbrand Yes Site Only August 29, 2023 Patrick R. Phipps, MAI No -- REGIONAL MAP JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 9 REGIONAL ANALYSIS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 10 INTRODUCTION The Jacksonville, FL Metropolitan Statistical Area, also called Greater Jacksonville or Metro Jacksonville, is the metropolitan area centered on its principal city, Jacksonville, Florida. The metropolitan statistical area consists of five counties: Duval, Clay, St. Johns, Nassau, and Baker. According to the 2020 United States Census, the total population was 1,605,848. Jacksonville is the westernmost point on the U.S. Atlantic Coast. The Jacksonville, FL MSA has a diversified economy strengthened by four military bases. The region is known for its industry clusters in advanced transportation, aerospace technology, financial services, and health/life sciences. The Port of Jacksonville, an international trade seaport on the St. Johns River, is a significant economic engine for the region. The port has three marine terminals that handle 8 million tons of cargo each year, including approximately 600,000 vehicles. It also supports approximately 132,000 jobs in the region, generating $27 billion in annual economic impact. DEMOGRAPHIC ANALYSIS The following is a demographic study of the region sourced by Pitney Bowes/Gadberry Group - GroundView®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Demographic changes are often highly correlated to changes in the underlying economic climate. Periods of economic uncertainty necessarily make demographic projections somewhat less reliable than projections in more stable periods. These projections are used as a starting point, but we also consider current and localized market knowledge in interpreting them within this analysis. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. Population According to Pitney Bowes/Gadberry Group - GroundView®, a Geographic Information System (GIS) Company, the Jacksonville metropolitan area had a 2022 total population of 1,664,670 and experienced an annual growth rate of 1.6%, which was higher than the Florida annual growth rate of 1.1%. The metropolitan area accounted for 7.5% of the total Florida population (22,063,838). Within the metropolitan area the population density was 485 people per square mile compared to the lower Florida population density of 376 people per square mile and the lower United States population density of 93 people per square mile. POPULATION YEAR US FL CBSA 2020 Total Population 331,501,080 21,569,932 1,611,388 2022 Total Population 334,017,687 22,063,838 1,664,670 2027 Total Population 344,637,383 23,477,389 1,799,689 2020 - 2022 CAGR 0.4% 1.1% 1.6% 2022 - 2027 CAGR 0.6% 1.2% 1.6% Source: Pitney Bowes/Gadberry Group - GroundView® REGIONAL ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 The 2022 median age for the metropolitan area was 38.84, which was 1.21% older than the United States median age of 38.38 for 2022. The median age in the metropolitan area is anticipated to grow by 0.44% annually, increasing the median age to 39.72 by 2027. Education Jacksonville is home to a number of institutions of higher education. The University of North Florida (UNF) is a public institution and a member of the State University System of Florida. Its campus comprises 1,300 acres surrounded by a natural preserve on Jacksonville's Southside. UNF had an enrollment of 17,043 students as of fall 2020 and is organized into five colleges, which offer 53 undergraduate degree programs and 28 graduate degree programs. Jacksonville University (JU), with an enrollment of approximately 4,000 students annually, is a private university in Jacksonville. Jacksonville University offers approximately 70 undergraduate majors and programs, as well as several master's programs that include the Master of Science, Master of Arts, Master of Arts in Teaching, and Master of Business Administration, and doctorates that include the Doctor of Nursing Practice. Household Trends The 2022 number of households in the metropolitan area was 659,076. The number of households in the metropolitan area is projected to grow by 1.5% annually, increasing the number of households to 710,842 by 2027. The 2022 average household size for the metropolitan area was 2.48, which was -1.68% smaller than the United States average household size of 2.53 for 2022. The average household size in the metropolitan area is anticipated to grow by 0.07% annually, raising the average household size to 2.49 by 2027. The Jacksonville metropolitan area had 34.37% renter occupied units, compared to the lower 33.91% in Florida and the higher 35.54% in the United States. POPULATION DENSITY YEAR US FL CBSA 2022 Per Square Mile 93 376 485 2027 Per Square Mile 96 400 525 Source: Pitney Bowes/Gadberry Group - GroundView® MEDIAN AGE YEAR US FL CBSA 2022 38.38 42.48 38.84 2027 39.16 43.42 39.72 CAGR 0.40% 0.44% 0.44% Source: Pitney Bowes/Gadberry Group - GroundView® NUMBER OF HOUSEHOLDS YEAR US FL CBSA 2022 129,171,249 8,752,638 659,076 2027 134,179,366 9,287,544 710,842 CAGR 0.8% 1.2% 1.5% Source: Pitney Bowes/Gadberry Group - GroundView® AVERAGE HOUSEHOLD SIZE YEAR US FL CBSA 2022 2.53 2.47 2.48 2027 2.51 2.48 2.49 CAGR (0.11%)0.08% 0.07% Source: Pitney Bowes/Gadberry Group - GroundView® REGIONAL ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 12 The 2022 median household income for the metropolitan area was $68,959, which was -3.4% lower than the United States median household income of $71,362. The median household income for the metropolitan area is projected to grow by 4.8% annually, increasing the median household income to $87,000 by 2027. As is often the case when the median household income levels are lower than the national average, the cost of living index is also lower. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index, the Jacksonville, FL MSA’s cost of living is 93.7 compared to the national average score of 100. The ACCRA Cost of Living Index compares groceries, housing, utilities, transportation, health care and miscellaneous goods and services for over 300 urban areas. HOUSING UNITS US FL CBSA Owner Occupied 64.46% 66.09% 65.63% Renter Occupied 35.54% 33.91% 34.37% Source: Pitney Bowes/Gadberry Group - GroundView® MEDIAN HOUSEHOLD INCOME YEAR US FL CBSA 2022 $71,362 $63,977 $68,959 2027 $89,318 $80,081 $87,000 CAGR 4.6% 4.6% 4.8% Source: Pitney Bowes/Gadberry Group - GroundView® Apparel, 6.69% Computers, 2.91% Education, 5.95%Entertainment, 13.74% Food at Home, 23.24% Eating Out, 11.20% Health Care, 24.89% Hsld Furnishings, 11.01% Auto Maint., 0.37% Consumer Spending Jacksonville $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 Consumer Spending Comparison Average Household United States Florida Jacksonville REGIONAL ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 13 EMPLOYMENT Total employment has increased annually over the past decade in the state of Florida by 2.0% and increased annually by 2.4% in the area. From 2021 to 2022 unemployment decreased in Florida by 1.7% and decreased by 1.3% in the area. In the state of Florida unemployment has increased over the previous month by 0.1% and increased by 0.2% in the area. The preceding chart depicts unemployment trends in the region, Florida, and the U.S. Overall levels of unemployment in the region experienced minor fluctuations throughout the past three months. By the end of July 2023, unemployment in the region was 0.1% greater than the State’s, and 0.6% lower than the national average. EMPLOYMENT & UNEMPLOYMENT STATISTICS 2013 - 2022 TOTAL EMPLOYMENT UNEMPLOYMENT RATE Florida Year Total % ∆ Yr Ago Total % ∆ Yr Ago 2013 8,706,060 2.1%655,861 2.4%7.4% 7.5%7.3% 2014 8,931,440 2.6%668,958 2.0%6.2% 6.4%6.4% 2015 9,106,772 2.0%683,745 2.2%5.3% 5.5%5.4% 2016 9,360,237 2.8%704,144 3.0%4.9% 4.9%4.7% 2017 9,544,892 2.0%721,215 2.4%4.4% 4.3%4.1% 2018 9,749,598 2.1%739,813 2.6%3.9% 3.6%3.5% 2019 9,950,515 2.1%754,917 2.0%3.7% 3.2%3.2% 2020 9,292,632 (6.6%)725,930 (3.8%)8.1% 8.1%6.6% 2021 9,872,517 6.2%767,454 5.7%5.3% 4.6%4.1% 2022 10,449,041 5.8%808,776 5.4%3.6% 2.9%2.8% CAGR 2.0%-2.4%---- Source: U.S. Bureau of Labor Statistics *Unadjusted Non-Seasonal Rate United States* Jacksonville, FL Metropolitan Statistical Area Florida Jacksonville, FL Metropolitan Statistical Area 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% UNEMPLOYMENT RATES Aug 2022 Sep 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023 Jul 2023 USA 3.8%3.3%3.4%3.4%3.3%3.9%3.9%3.6%3.1%3.4%3.8%3.8% Florida 3.0%2.7%2.8%2.6%2.3%2.6%2.5%2.6%2.3%2.7%3.0%3.1% Area 3.0%2.6%2.6%2.5%2.2%2.5%2.5%2.6%2.3%2.7%3.0%3.2% REGIONAL ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 14 The preceding chart depicts the top employers in the Jacksonville MSA. Principal employers are spread throughout diverse sectors, including public administration, wholesale/retail trade, and education. The largest employer is Naval Air Station, Jacksonville, a military airport and one of two naval bases in Duval County. The second largest employer is Amazon, the multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. Duval County Public School District is the third largest employer. The school district serves the families and children residing in the urban, suburban, and rural areas of the city of Jacksonville and Duval County. AIRPORT STATISTICS The following chart summarizes the local airport statistics. SUMMARY The Jacksonville, FL MSA is an economically diversified region. The presence of U.S. military installations in the area has a significant impact on the regional economy, including sectors and industries supported by the military, as well as its contribution to personal income, employment, and the area’s gross product. The Port of Jacksonville has a positive economic impact in the region’s economy. The region has a well-positioned economic base, as well as an attractive location; factors that have a positive influence and will benefit the growth in its economy for years to come. TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY Naval Air Station, Jacksonville 20,000 Public Administration Amazon 16,000 Wholesale/Retail Trade Duval County Public School District 13,110 Education Baptist Health 12,603 Healthcare/Social Assistance Naval Station Mayport 10,030 Transportation/Warehousing Mayo Clinic 8,848 Healthcare/Social Assistance Bank of America Merrill Lynch 8,000 Finance/Insurance City of Jacksonville 7,639 Public Administration UF Health Jacksonville 6,600 Public Administration Florida Blue 5,700 Finance/Insurance Source: https://dcps.duvalschools.org/ JACKSONVILLE INTERNATIONAL AIRPORT (JAX) YEAR ENPLANED PASSENGERS % CHG 2011 2,700,514 - 2012 2,579,023 (4.5%) 2013 2,549,070 (1.2%) 2014 2,589,198 1.6% 2015 2,716,465 4.9% 2016 2,729,129 0.5% 2017 2,701,861 (1.0%) 2018 3,135,508 16.0% 2019 3,479,923 11.0% 2020 1,367,501 (60.7%) 2021 2,425,685 77.4% Source: U.S. Department of Transportation LOCAL AREA MAP JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 15 LOCAL AREA ANALYSIS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 16 INTRODUCTION In this section of the report, we provide details about the local area and describe the influences that bear on the real estate market as well as the subject property. A map of the local area is presented on the prior page. Below are insights into the local area based on fieldwork, interviews, demographic data and experience working in this market. LOCAL AREA PROFILE The subject property is in Jacksonville, Florida, the seat of Duval County. According to the 2020 census, the city had a population of 949,611. Centered on the banks of St. Johns River in northeast Florida, Jacksonville is approximately 25 miles south of the Georgia state line and 140 miles north of Orlando. Its riverine location enabled the construction of two United States Navy bases and the Port of Jacksonville, Florida's third largest seaport. Air transportation for Jacksonville is provided by the Jacksonville International Airport, 14 miles north of the city’s central business district. DEMOGRAPHIC PROFILE Below is a demographic study of the area, sourced by Pitney Bowes/Gadberry Group - GroundView®, an on- line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 17 Transportation Routes Major traffic arteries are shown in the chart below: Community Services Community services and facilities are readily available in the surrounding area. These include public services such as fire stations, hospitals, police stations, and schools (all ages). LOCAL AREA DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILES 5 MILES DESCRIPTION 1 MILE 3 MILES 5 MILES POPULATION AVERAGE HOUSEHOLD INCOME 2010 Population 12,565 44,192 102,228 2022 $105,227 $115,276 $116,360 2020 Population 13,110 46,176 112,779 2027 $137,181 $147,136 $148,599 2022 Population 13,172 48,148 116,742 Change 2022-2027 30.37% 27.64% 27.71% 2027 Population 13,874 50,708 123,693 MEDIAN HOUSEHOLD INCOME Change 2010-2020 4.34% 4.49% 10.32% 2022 $76,998 $83,347 $88,522 Change 2020-2022 0.47% 4.27% 3.51% 2027 $103,653 $109,696 $113,337 Change 2022-2027 5.33% 5.32% 5.95%Change 2022-2027 34.62% 31.61% 28.03% POPULATION 65+PER CAPITA INCOME 2020 Population 2,432 7,878 16,688 2022 $47,840 $50,745 $48,537 2022 Population 2,462 8,333 17,406 2027 $62,496 $65,013 $62,224 2027 Population 2,950 10,042 20,987 Change 2022-2027 30.64% 28.12% 28.20% Change 2020-2022 1.23% 5.78% 4.30%2022 HOUSEHOLDS BY INCOME Change 2022-2027 19.82% 20.51% 20.57% <$15,000 6.5% 5.6% 6.0% NUMBER OF HOUSEHOLDS $15,000-$24,999 4.7% 3.8% 4.5% 2010 Households 5,258 17,660 39,852 $25,000-$34,999 9.2% 7.4% 6.5% 2020 Households 5,854 19,986 45,680 $35,000-$49,999 10.2% 10.1% 9.9% 2022 Households 6,038 20,895 47,034 $50,000-$74,999 18.5% 19.4% 16.7% 2027 Households 6,368 22,096 50,048 $75,000-$99,999 11.1% 11.0% 11.8% Change 2010-2020 11.34% 13.17% 14.62% $100,000-$149,999 21.9% 19.9% 21.1% Change 2020-2022 3.14% 4.55% 2.96% $150,000-$199,999 8.0% 10.4% 11.3% Change 2022-2027 5.47% 5.75% 6.41%$200,000 or greater 10.0% 12.3% 12.1% HOUSING UNITS (2022)MEDIAN HOME VALUE $315,356 $363,276 $311,579 Owner Occupied 3,880 12,976 30,935 AVERAGE HOME VALUE $447,554 $466,158 $396,419 Renter Occupied 2,072 7,918 16,111 HOUSING UNITS BY UNITS IN STRUCTURE HOUSING UNITS BY YEAR BUILT 1, detached 3,551 12,320 29,589 Built 2010 or later 267 1,325 4,404 1, attached 1,043 2,395 4,077 Built 2000 to 2009 501 2,165 7,155 2 211 627 782 Built 1990 to 1999 1,023 4,176 12,274 3 or 4 226 1,146 2,264 Built 1980 to 1989 1,798 5,300 10,314 5 to 9 214 558 1,591 Built 1970 to 1979 1,080 2,960 5,408 10 to 19 103 1,307 2,457 Built 1960 to 1969 770 2,233 3,097 20 to 49 216 886 2,527 Built 1950 to 1959 381 1,623 2,348 50 or more 219 999 2,112 Built 1940 to 1949 95 417 913 Mobile home 170 657 1,593 Built 1939 or earlier 122 697 1,122 Boat, RV, van, etc.0 0 54 Source: Pitney Bowes/Gadberry Group - GroundView® 0% 5% 10% 15% 20% 25% 0-17 18-29 30-39 40-49 50-64 65+ POPULATION GROWTH BY AGE -5 MILES 2020 2022 2027 0% 5% 10% 15% 20% 25% 0-17 18-29 30-39 40-49 50-64 65+ POPULATION BY AGE 1 MILE 3 MILES 5 MILES MAJOR ROADWAYS & THOROUGHFARES HIGHWAY DIRECTION FUNCTION DISTANCE FROM SUBJECT I-295 SURFACE STREETS DIRECTION FUNCTION DISTANCE FROM SUBJECT Mayport Road north-south Atlantic Boulevard east-west Primary Arterial This is within a mile of the subject property. This is just down the street from the subject property This is within 8 miles of the subject property. Secondary Arterial Outerbelt LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 18 IMMEDIATE AREA PROFILE This section discusses uses and development trends in the immediate area that directly impact the performance and appeal of the subject property. Predominant Land Uses Significant development in the immediate area consists of office, retail, and light industrial uses along major arterials that are interspersed with multi-family complexes and single-family residential development removed from arterials. The local area has a mix of commercial uses nearby and the composition is shown in the following graph. Multi-Family Development The following chart shows a summary of multi-family data by type in the immediate area from CoStar. The largest three multi-family properties are at 13300 Atlantic Boulevard, 2753 Mayport Road and 1701 San Pablo Road South with an NRA of 528,076 SF, 524,902 SF and 500,691 SF that were built in 2002, 2022 and 2013, respectively. The closest large multi-family property in proximity to the subject is at 2160 Mayport Road with an NRA of 189,000 SF that was built in 1988. The majority of properties were constructed after 2000. The following chart and map show the subject property and its location relative to the 10 largest multi-family properties in the immediate area from CoStar. 10% 7% 11% 72% COMMERCIAL AREA COMPOSITION RETAIL OFFICE INDUSTRIAL MULTIFAMIL Y ©CoStar MULTIFAMILY SUMMARY CLASS PROPERTIES NRA (SF)AVG YR BLT A 2 144,800 2018 B 25 4,473,189 1992 C 35 776,585 1964 TOTAL 62 5,394,574 1977 Source: CoStar LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 19 Retail Development The following chart shows a summary of retail data by type in the immediate area from CoStar. The largest three retail properties are at 953-1021 Atlantic Boulevard, 13475 Atlantic Boulevard and 500 Atlantic Boulevard with an NRA of 100,559 SF, 90,388 SF and 90,000 SF that were built in 1983, 2006 and 1977, respectively. The closest large retail property in proximity to the subject is at 2292 Mayport Road with an NRA of 32,750 SF that was built in 1986. The majority of properties were constructed before 2000. The following chart and map show the subject property and its location relative to the 10 largest retail properties in the immediate area from CoStar. LARGEST MULTIFAMILY PROPERTIES NAME DISTANCE MAP PIN CLASS NRA (SF)STORIES YEAR BUILT The Enclave 2.9 Miles A B 528,076 3 2002 The Reef 1.8 Miles B B 524,902 5 2022 Seagrass Apartments 2.6 Miles C B 500,691 3 2013 Banyan Bay Apartments 2.7 Miles D B 380,684 3 1997 Ribault Bay 1.3 Miles E B 330,000 2 1972 The Views at Harbortown Apartments 2.1 Miles F B 300,000 3 2015 Terrabella Coastal Apartments 2.3 Miles G B 261,228 4 2021 Hale Nani 2.1 Miles H B 250,000 2 1969 The Cove at Atlantic Beach 0.5 Miles I B 189,000 2 1988 33 East Apartments 1.3 Miles J B 186,688 3 1986 Source: CoStar RETAIL SUMMARY TYPE PROPERTIES NRA (SF) AVG YR BLT OCCUPANCY AVG RENT General Retail 163 800,397 1977 98.6 $21.50 TOTAL 163 800,397 1977 98.6 $21.50 Source: CoStar LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 20 Office Development The following chart shows a summary of office data by class in the immediate area from CoStar. The largest three office properties are at 310 3rd Street, 2300 Marsh Point Road and 60 Ocean Boulevard with an NRA of 25,764 SF, 25,660 SF and 23,255 SF that were built in 2023, 2007 and 1958, respectively. The closest large office property in proximity to the subject is at 645 Mayport Road with an NRA of 11,604 SF that was built in 1987. The majority of properties were constructed before 2000. The following chart and map show the subject property and its location relative to the 10 largest office properties in the immediate area from CoStar. LARGEST SHOPPING CENTERS NAME DISTANCE MAP PIN TYPE NRA (SF)% LEASED YEAR BUILT AVG RENT Atlantic Village 0.9 Miles A Neighborhood Center 100,559 100.0 1983 N/Av Harbour Village Shopping Cente2.7 Miles B Community Center 90,388 100.0 2006 N/Av K-Mart Redevelopment 1.3 Miles C General Retail 90,000 100.0 1977 N/Av Seminole Shoppes 1.2 Miles D Neighborhood Center 73,751 100.0 2010 N/Av Atlantic Beach Commons 1.3 Miles E Neighborhood Center 63,992 100.0 1988 N/Av Neptune Beach Plaza 1.2 Miles F Neighborhood Center 60,484 75.4 1977 N/Av North Beach Shopping Center 0.9 Miles G Neighborhood Center 58,153 100.0 2003 N/Av Village Shoppes at San Pablo 2.7 Miles H Neighborhood Center 54,288 100.0 2002 N/Av Penman Plaza 1.1 Miles I Neighborhood Center 52,940 100.0 1962 N/Av Pan Am Plaza 0.7 Miles J Neighborhood Center 32,750 91.5 1986 N/Av Source: CoStar OFFICE SUMMARY CLASS PROPERTIES NRA (SF) AVG YR BLT OCCUPANCY AVG RENT A 1 25,764 2023 100.0 - B 34 236,760 1985 99.6 $34.33 C 58 250,896 1975 100.0 - TOTAL 93 513,420 1980 99.9 $34.33 Source: CoStar LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 21 Industrial Development The following chart shows a summary of industrial data by type in the immediate area from CoStar. The largest three industrial properties are at 1575 Main Street, 1824 3rd Street North and 95 Levy Road with an NRA of 35,290 SF, 32,086 SF and 23,259 SF that were built in 1985, 1941 and 1961, respectively. The closest large industrial property in proximity to the subject is at 95 Levy Road. All of the properties were constructed before 2000. The following chart and map show the subject property and its location relative to the 10 largest industrial properties in the immediate area from CoStar. LARGEST OFFICE BUILDINGS NAME DISTANCE MAP PIN CLASS NRA (SF)% LEASED YEAR BUILT AVG RENT Office Building 1.4 Miles A A 25,764 100.0 2023 N/Av Sky Enterprises Building 1.1 Miles B B 25,660 97.7 2007 $43.65 Atlantic Beach Town Center 1.3 Miles C B 23,255 100.0 1958 N/Av Atrium Medical Plaza 1.9 Miles D B 22,485 100.0 2003 N/Av Office Building 2.4 Miles E C 19,976 100.0 1999 N/Av Office Building 1.1 Miles F B 14,000 100.0 -N/Av Penman Village 2.6 Miles G C 13,293 100.0 1979 N/Av Park Place 1.8 Miles H C 12,000 100.0 1978 N/Av Office Building 2.7 Miles I B 12,000 100.0 1983 N/Av Office Building 0.7 Miles J C 11,604 100.0 1987 N/Av Source: CoStar INDUSTRIAL SUMMARY TYPE PROPERTIES NRA (SF) AVG YR BLT OCCUPANCY AVG RENT Industrial 95 721,418 1985 98.5 $18.50 Flex 12 82,506 1991 89.7 $17.67 TOTAL 107 803,924 1985 97.5 $18.41 Source: CoStar LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 22 The following map shows the subject property and the five largest retail, office, and industrial properties in the immediate area from CoStar. LARGEST INDUSTRIAL PROPERTIES NAME DISTANCE MAP PIN TYPE NRA (SF)% LEASED YEAR BUILT AVG RENT Industrial Building 0.5 Miles A Industrial 35,290 100.0 1985 N/Av Industrial Building 2.5 Miles B Industrial 32,086 100.0 1941 N/Av Coastal Graphix 0.4 Miles C Industrial 23,259 100.0 1961 N/Av Industrial Building 0.5 Miles D Industrial 20,000 100.0 1985 N/Av Bldg 1 0.5 Miles E Industrial 19,145 100.0 1998 N/Av Industrial Building 1.2 Miles F Industrial 16,760 100.0 1952 N/Av Industrial Building 2.0 Miles G Industrial 16,626 100.0 1942 N/Av Industrial Building 1.3 Miles H Industrial 15,784 100.0 1992 N/Av Industrial Building 0.5 Miles I Industrial 15,362 100.0 1998 N/Av Industrial Building 0.5 Miles J Industrial 14,611 86.5 1970 $13.00 Source: CoStar LOCAL AREA ANALYSIS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 23 SUBJECT PROPERTY ANALYSIS The following discussion draws context and analysis on how the subject property is influenced by the local and immediate areas. Subject Property Analysis The uses adjacent to the property are noted below: › North - Residential, light industrial › South - Residential › East - Francis Avenue, residential, church › West - Dora Drive, Mayport Road, light industrial, office, retail Access The subject site has frontage on a neighborhood street. Based on our field work, the subject’s access is rated average compared to other properties with which it competes. Visibility The subject has minimal frontage and its visibility is hampered by adjacent properties and trees. In comparison to competitive properties, the subject property has below-average visibility. Subject Conclusion Trends in the local and immediate areas, adjacent uses and the property’s specific location features indicate an overall typical external influence for the subject, which is concluded to have an average position in context of competing properties. SITE DESCRIPTION JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 24 General Description The subject site consists of 3 tax parcels which have a total combined land area of 2.16 acres (94,090 SF), according to assessment records. However, a boundary & topographic survey dated November 21, 2016 was provided to us and reports a total land area of 1.977 acres (86,118 SF). For purposes of this analysis, we have relied on the survey in our estimate of subject's land area. The survey also notes an Upland Cut Ditch measuring 0.093 acres, or 4,079 SF, which is considered to be unusable land area. Therefore, the total usable area of the subject site is estimated to be 1.88 acres, or 82,039 SF. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Accessibility The accessibility of the subject is rated as average. The subject is accessed from two streets, with the main entrance and primary point of ingress/egress being Dora Drive. Major transportation arterials within proximity to the subject include Mayport Road/Highway A1A and Atlantic Boulevard, providing linkage to the surrounding area. MULTIPLE PARCEL SITE DESCRIPTION GRID USABLE UNUSABLE EXCESS SURPLUS TOTAL FRONTING FLOOD PARCEL SF AC SF AC SF AC SF AC SF AC STREET SHAPE ACCESS EXPOSURE PLAIN 172119-0000 62,726 1.44 0 0.00 0 0.00 0 0.00 62,726 1.44 Dora Drive, Francis Avenue Irregular Average Minimal Zone X (Unshaded) 172118-0000 28,314 0.65 0 0.00 0 0.00 0 0.00 28,314 0.65 Francis Avenue Rectangular Average Average Zone X (Unshaded) 172122-0000 3,049 0.07 0 0.00 0 0.00 0 0.00 3,049 0.07 None Rectangular Average None Zone X (Unshaded) TOTAL 94,090 2.16 0 0.00 0 0.00 0 0.00 94,090 2.16 Assessor Parcels Number Of Parcels 3 Land Area Acres Square Feet Primary Parcel 1.88 82,039 Unusable Land 0.09 4,079 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 1.98 86,118 Shape See Multiple Parcel Chart For Breakdown Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site See Multiple Parcel Chart For Breakdown Street Improvements Street Direction No. Lanes Street Type CurbsSidewalksStreetlightsCenter LaneGuttersFrancis Avenue Secondary Street two-way two-lane connector street     Dora Drive Secondary Street two-way two-lane connector street Frontage The subject has approximately 50 feet of frontage on Francis Avenue at its north boundary and another 12 feet of frontage on Francis Avenue at its south boundary. The subject also has 10 feet of frontage at its access point from Dora Drive. SITE DESCRIPTION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 25 Exposure The subject has average exposure, as it is located along a connector street. The project's exposure rating takes into account its moderate visibility and its average traffic count. Seismic The subject is in Low Risk. The seismic zone factor (or Z factor) corresponds numerically to the effective horizontal peak bedrock acceleration (or equivalent velocity) that is estimated as a component of the design base shear calculation. In each seismic zone an earthquake-related event would create an effective peak bedrock acceleration of 0.1 times the force of gravity for Zone 1, 0.15 times the force of gravity for Zone 2A, 0.2 times the force of gravity for Zone 2B, 0.3 times the force of gravity for Zone 3 and 0.4 times the force of gravity for Zone 4. These values correspond to ground motion values with a 10% probability of being exceeded in 50 years. Flood Zone Zone X (Unshaded). This is referenced by Community Number 120075, Panel Number 12031C0408J, dated November 02, 2018. Zone X (unshaded) is a Non- Special Flood Hazard Area (NSFHA) of minimal flood hazard, usually depicted on Flood Insurance Rate Maps (FIRM) as above the 500-year flood level. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. EXHIBITS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 26 AERIAL MAP EXHIBITS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 27 ZONING MAP EXHIBITS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 28 FLOOD MAP ASSESSMENT & TAXATION JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 29 INTRODUCTION Assessment of real property is established by an assessor that is an appointed or elected official charged with determining the value of each property. The assessment is used to determine the necessary rate of taxation required to support the municipal budget. A property tax is a levy on the value of property that the owner is required to pay to the municipality in which it is situated. Multiple jurisdictions may tax the same property. The subject property is located within Duval County. The assessed value and property tax for the current year are summarized in the following table. SUBJECT PROPERTY ANALYSIS The total assessment for the subject property is $606,848 or $7.05/SF. The subject property benefits from the 10% Cap exemption in the amount of $245,907, reducing the taxable assessment to $360,941 or $4.19/SF. Total taxes for the property are $7,428 or $0.09/SF, before consideration of the early payment discount. According to the Duval County Tax Collector’s Office, real estate taxes for the subject property are current as of the date of this report. ASSESSMENT & TAXES Tax Year 2022 Certified Tax Rate 16.8431 Tax Rate Area USD3 Taxes Current Yes APN LAND IMPV TOTAL 10% Cap Difference TAXABLE BASE TAX 172119-0000 $412,800 $0 $412,800 $167,272 $245,528 $5,053 172118-0000 $145,408 $0 $145,408 $58,923 $86,485 $1,780 172122-0000 $48,640 $0 $48,640 $19,712 $28,928 $595 Totals $606,848 $0 $606,848 $245,907 $360,941 $7,428 Total/Unit $15,560.21 $0.00 $15,560.21 $6,305.31 $9,254.90 $190.46 Total Base Tax Without Early Payment $7,428 Total Base Tax Per Unit Without Early Payment $190.46 Discount For Early Payment 4%($297) Total Base Tax With Early Payment $7,131 Total Base Tax Per SF With Early Payment $182.84 Source: Duval County Assessment & Taxation ZONING ANALYSIS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 30 INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING CONCLUSIONS The subject is currently vacant, unimproved land. We previously concluded that the highest and best use of the site is for multi-family development. Based on the interpretation of the zoning ordinance, the subject can be improved with a maximum of 39 units. This indicates a density of 19.7 units per acre which is within the maximum allowable density of 20 units per acre. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of our analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through our due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ZONING SUMMARY Municipality Governing Zoning City of Atlantic Beach Planning & Zoning Department Current Zoning Residential, General, Multi-Family (RG-M) Permitted Uses Current Use Vacant Land Is Current Use Legally Permitted?Yes Zoning Change Not Likely The RG-M zoning district is intended for development of medium to high-density multi-family residential areas. Permitted uses include ZONING REQUIREMENTS Minimum Site Area (SF)7,500 SF Minimum Lot Width 75 Feet Minimum Lot Depth 100 Feet Minimum Yard Setbacks Front (Feet)20 Rear (Feet)20 Side (Feet)Single-family dwellings: Combined 15 total feet and 5 minimum feet on either side Two-family (Duplex) dwellings and townhouses: 7.5 feet each side Multi-family dwellings: 15 feet each side Maximum Density (Units/Acre)20 : 1 Maximum Impervious Surface 45% Maximum Building Height 35 Feet Parking Requirement Spaces Per Dwelling Unit 2 Source: City of Atlantic Beach Planning & Zoning Department MARKET ANALYSIS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 31 EXPOSURE TIME & MARKETING PERIOD Exposure time is defined as "An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal." (The Dictionary of Real Estate Appraisal, Appraisal Institute, 2022). Reasonable exposure time is impacted by the aggressiveness and effectiveness of a property’s exposure to market participants, availability and cost of financing, and demand for similar investments. Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys. The availability of acquisition financing factors into exposure time. In recent quarters, financing has been available for well-positioned commercial real estate, particularly for stabilized assets within core MSAs and owner/user deals. For second tier or marginal properties, financing has been available but subject to more stringent requirements. Based on review of the local capital market, we conclude that adequate financing options would have been available to consummate a sale of the property on the date of value. Exposure Time Conclusion Based on its overall physical and locational characteristics, the subject site has average overall appeal to developers. Considering these factors, a reasonable estimate of exposure time for the subject property is 12 months or less. Marketing Period Conclusion Marketing period is very similar to exposure time, but reflects a projected time period to sell the property, rather than a retrospective estimate. Having reviewed open listings and discussed the market with local participants, and given the nature of this site, we feel that a time period of 12 months or less is supported for the subject's marketing period. HIGHEST & BEST USE ANALYSIS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 32 INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s Residential, General, Multi-Family (RG-M) zoning were listed in the Zoning Analysis section. Overall, legal factors support residential uses for the subject site. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average exposure. The subject site has frontage on a neighborhood street. The immediate area is developed with office, retail, and light industrial development along major arterials that is interspersed with multi-family complexes and single-family residential development removed from arterials. Of the outright permitted uses, physical and locational features best support multi-family development as market conditions warrant for the site’s highest and best use as-vacant. Feasibility Factors In general, the Jacksonville Market and Beaches Submarket are experiencing a typical level of construction activity compared to historical norms. Based on this factor, as well as our analysis of other supply/demand factors that impact the feasibility of development, it is likely that a developer would undertake a speculative project within the next year or two. Financial feasibility factors generally support near-term development of the subject site. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be multi-family development as market conditions warrant. LAND VALUATION JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 33 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. LAND VALUATION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per unit. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 34 existing structures, general site clearing and/or mitigation of environmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on our research, the following table summarizes the market conditions adjustment applied in this analysis. The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate our logic in deriving a value opinion for the subject site. LAND VALUATION PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. MARKET CONDITIONS ADJUSTMENT Per Year As Of August 2023 (As-Is)3% LAND SALES SUMMATION TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name Atlantic Beach Multi-Family Land Multifamily Land Vacant Multi- Family Land Multifamily Land Vacant Townhome Land Address 70 & 85 Dora Drive and 1940 Francis Avenue 0 Cross Town Drive 11385 Exchange Street 14051 Beach Blvd 1609 Bridgeton Drive City Atlantic Beach Jacksonville Jacksonville Jacksonville Jacksonville State FL FL FL FL FL Zip 32233 32256 32256 32256 32207 County Duval Duval Duval Duval Duval APN 172119-0000, 172118-0000, 172122-0000 168149-1330 167872-0435 167115-5010 Multiple PHYSICAL INFORMATION Acres 1.98 6.70 5.73 9.97 1.08 Density (Units/AC)19.73 26.9 : 1 33.5 : 1 33.5 : 1 25.0 : 1 Units 39 180 192 334 27 SALE INFORMATION Date 5/18/2022 4/12/2022 12/29/2021 8/13/2021 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $9,500,000 $8,520,000 $10,200,000 $2,000,000 Analysis Price $9,500,000 $8,520,000 $10,300,000 $2,000,000 $/Unit $52,778 $44,375 $30,838 $74,074 LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 35 LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/UNIT SUBJECT -70 & 85 Dora Drive and 1940 Francis Avenue , Atlantic Beach, FL -2.0 86,118 - No. 1 16.1 Miles 0 Cross Town Drive, Jacksonville, FL 5/18/2022 6.7 291,852 $52,778 No. 2 13.1 Miles 11385 Exchange Street, Jacksonville, FL 4/12/2022 5.7 249,598 $44,375 No. 3 4.0 Miles 14051 Beach Blvd, Jacksonville, FL 12/29/2021 10.0 434,293 $30,838 No. 4 14.5 Miles 1609 Bridgeton Drive, Jacksonville, FL 8/13/2021 1.1 47,044 $74,074 LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 36 COMPARABLE 1 LOCATION INFORMATION Name Multifamily Land Address 0 Cross Town Drive City, State, Zip Code Jacksonville, FL, 32256 County Duval MSA Jacksonville, FL APN 168149-1330 SALE INFORMATION Buyer Crosstown Properties I LLC Seller Sonoc Company, LLC Transaction Date 05/18/2022 Transaction Status Recorded Transaction Price $9,500,000 Analysis Price $9,500,000 MULTIFAMILY LAND Recording Number 20289/2188 ANA LYSIS INFORMATION Rights Transferred Fee Simple Pr ice $/Acre $/SF $/Unit Financing Conventional Gross $1,417,910 $32.55 $52,778 Conditions of Sale Arms-Length Ne t $1,417,910 $32.55 $52,778 PHYSICAL INFORMATION CO NFIRMATION Intended Use Multi-Residential Na me Confidential Location Average Company Confidential Site Size (Net)6.70 Acres (291,852 SF)Source Seller's Broker Site Size (Gross)6.70 Acres (291,852 SF)Date / Phone Number 05/6/2022 Confidential Zoning PUD REM ARKS Development Potential 180 Density 26.9 Shape Irregular Access Average Exposure Average Corner No Utilities No The property is loc ated at the northeast corner of Cross Tow n Dr.and Preservations Trail in the Nocatee development.The site was purchased by an entity related to RISE Real Estate Company for development of a 180-unit multifamily complex to be known as Auterra at Nocatee.The site was purchased for $9,500,000, or $52,777 per developable unit. LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 37 COMPARABLE 2 LOCATION INFORMATION Name Vacant Multi-Family Land Address 11385 Exchange Street City, State, Zip Code Jacksonville, FL, 32256 County Duval MSA Jacksonville, FL APN 167872-0435 SALE INFORMATION Buyer CRP/RW OLEA SOUTH JACKSONVILLE OWNER LLC Seller EASTLAND TIMBER LLC Transaction Date 04/12/2022 Transaction Status Recorded Transaction Price $8,520,000 Analysis Price $8,520,000 VACANT MULTI-FAMILY LAND Recording Number 20221/2487 ANA LYSIS INFORMATION Rights Transferred Fee Simple Pr ice $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $1,486,911 $34.13 $44,375 PHYSICAL INFORMATION Ne t $1,486,911 $34.13 $44,375 Intended Use Multi-Residential CO NFIRMATION Location Average Na me St. Johns River Water Management Site Size (Net)5.73 Acres (249,598 SF)Company Confidential Site Size (Gross)5.73 Acres (249,598 SF)Source Knowledgeable Third Party Zoning PUD Date / Phone Number 09/1/2023 Confidential Development Potential 192 REM ARKS Density 33.51 Shape Irregular Access Average Exposure Average Corner No Utilities No This is the s ale of a 5.73-acre site located along E-Tow n Parkway,just east of Highway 9B in Jacksonville,FL. The site was purchased for multi-family development to include 192 units and to be known as Olea at ETown.The planned development permits a max gross density of 20 units/acre cumulatively. However, the subject site will have a density of 33.5 units/acre, which requires an additional 3.87 acres for density obtained from the adjacent commercial site. LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 38 COMPARABLE 3 LOCATION INFORMATION Name Multifamily Land Address 14051 Beach Blvd City, State, Zip Code Jacksonville, FL, 32256 County Duval MSA Jacksonville, FL APN 167115-5010 SALE INFORMATION Buyer 14051 Beach Blvd Venture LLC Seller Elda Florida Investments Transaction Date 12/29/2021 Transaction Status Recorded Transaction Price $10,200,000 Analysis Price $10,300,000 MULTIFAMILY LAND Recording Number NYR ANA LYSIS INFORMATION Rights Transferred Fee Simple Pr ice $/Acre $/SF $/Unit Financing Conventional Gross $732,575 $16.81 $30,838 Conditions of Sale Arms-Length Ne t $1,033,099 $23.72 $30,838 PHYSICAL INFORMATION CO NFIRMATION Intended Use Multi-Residential Na me Confidential Location Average Company Assessor, Costar, Public Records Site Size (Net)9.97 Acres (434,293 SF)Source Assessor Site Size (Gross)14.06 Acres (612,584 SF)Date / Phone Number 01/5/2022 Confidential Zoning IBP REM ARKS Development Potential 334 Density 33.5 Shape Irregular Topography Level Access Average Exposure Average Corner No Utilities No This is the sales of the former Regal Cinemas located on the north s ide of Beach Blvd.According to the confirmation source, the property is approved for 334 multifamily units.The consideration in the sale was $10,200,000 or $30,539 per unit. Additionally, the buyer w ill need to raze the existing cinema structure and parking. Based on information obtained we have considered an additional cost of $100,000 to raze the existing improvements.The effective sales price is calculated at $10,300,000 or $30,838 per unit, LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 39 COMPARABLE 4 LOCATION INFORMATION Name Vacant Townhome Land Address 1609 Bridgeton Drive City, State, Zip Code Jacksonville, FL, 32207 County Duval MSA Jacksonville, FL APN Multiple SALE INFORMATION Buyer Toll Southeast LP Company Inc. Seller East San Marco LLC Transaction Date 08/13/2021 Transaction Status Recorded Transaction Price $2,000,000 Analysis Price $2,000,000 VACANT TOWNHOME LAND Recording Number 19862/2141 ANA LYSIS INFORMATION Rights Transferred Fee Simple Pr ice $/Acre $/SF $/Unit Conditions of Sale Arms-Length Gross $1,851,852 $42.51 $74,074 PHYSICAL INFORMATION Ne t $1,851,852 $42.51 $74,074 Intended Use Multi-Residential CO NFIRMATION Location Average Na me Public Records Site Size (Net)1.08 Acres (47,044 SF)Company Confidential Site Size (Gross)1.08 Acres (47,044 SF)Source Knowledgeable Third Party Zoning PUD Date / Phone Number 09/6/2023 Confidential Development Potential 27 REM ARKS Density 25 Shape Irregular Topography Level Access Average Exposure Average Corner No Utilities No This is the s ale of a 1.08-acre site located along Atlantic Boulevard w ithin the San Marco neighborhood of Jacksonville,FL. The site was acquired for development of 27 townhomes, indicating a density of 25 units/acre.The reported sale price is $2,000,000, or $74,074/unit and $1,851,852/acre. LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 40 LAND SALES ADJUSTMENT TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 Name Atlantic Beach Multi-Family Land Multifamily Land Vacant Multi- Family Land Multifamily Land Vacant Townhome Land Address 70 & 85 Dora Drive and 1940 Francis Avenue 0 Cross Town Drive 11385 Exchange Street 14051 Beach Blvd 1609 Bridgeton Drive City Atlantic Beach Jacksonville Jacksonville Jacksonville Jacksonville APN 172119-0000, 172 168149-1330 167872-0435 167115-5010 Multiple Acres 1.98 6.70 5.73 9.97 1.08 Density (Units/AC)19.7 : 1 26.9 : 1 33.5 : 1 33.5 : 1 25.0 : 1 Units 39 180 192 334 27 SALE INFORMATION Date 5/18/2022 4/12/2022 12/29/2021 8/13/2021 Status Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $9,500,000 $8,520,000 $10,300,000 $2,000,000 Price/Unit $52,778 $44,375 $30,838 $74,074 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0% Financing 0%0%0%0% Conditions of Sale 0%0%0%0% Expenditures After the Sale 0%0%0%0% Market Conditions¹4%4%5%6% Subtotal Transactional Adj Price $54,889 $46,150 $32,380 $78,519 PROPERTY ADJUSTMENTS Location -5%0%0%-25% Density (Units/AC)5%10%10%5% Exposure 0%0%0%0% Access 0%0%0%0% Shape 0%0%0%0% Subtotal Property Adjustment 0%10%10%-20% TOTAL ADJUSTED PRICE $54,889 $50,765 $35,618 $62,815 STATISTICS UNADJUSTED ADJUSTED LOW $30,838 $35,618 HIGH $74,074 $62,815 MEDIAN $48,576 $52,827 AVERAGE $50,516 $51,022 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 8/29/23 LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 41 LAND SALES ANALYSIS Introduction The comparable land sales indicate an adjusted value range from $35,618 to $62,815/Unit, with a median of $52,827/Unit and an average of $51,022/Unit. The range of total gross adjustment applied to the comparables was from 14% to 36%, with an average gross adjustment across all comparables of 20%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop a reasonably credible opinion of land value. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($54,889/Unit adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required adjustments for property characteristics, however these resulted in a net adjustment of 0%. A downward adjustment is made for superior location, and an upward adjustment is made for greater allowable density per acre. The total gross adjustment applied to this comparable was 14%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 2 ($50,765/Unit adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of 10% for property characteristics. An upward adjustment is made for a greater allowable density per acre. The total gross adjustment applied to this comparable was 14%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 3 ($35,618/Unit adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of 10% for property characteristics. An upward adjustment is made for a greater allowable density per acre. The total gross adjustment applied to this comparable was 15%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. Comparable 4 ($62,815/Unit adjusted) required a total upward transaction adjustment of 6%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -20% for property characteristics. A downward adjustment is made for superior location, and an upward adjustment is made for greater allowable density per acre. The total gross adjustment applied to this comparable was 36%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $35,618 to $62,815/Unit, with a median of $52,827/Unit and an average of $51,022/Unit. Based on the results of the preceding analysis, Comparable 1 ($54,889/Unit adjusted), Comparable 2 ($50,765/Unit adjusted) and Comparable 4 ($62,815/Unit adjusted) are given primary consideration for the subject’s opinion of land value. The following table summarizes the analysis of the comparables, reports the reconciled price per unit value conclusion, and presents the concluded value of the subject site. LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 42 CALCULATION OF LAND VALUE ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ % ADJ %COMPARISON 1 $52,778 4%$54,889 0%$54,889 4% 14%PRIMARY 2 $44,375 4%$46,150 10%$50,765 14% 14%PRIMARY 3 $30,838 5%$32,380 10%$35,618 16% 15%SECONDARY 4 $74,074 6%$78,519 -20%$62,815 -15%36%PRIMARY LOW $35,618 AVERAGE $51,022 HIGH $62,815 MEDIAN $52,827 COMPONENT SUBJECT UNITS $/UNIT CONCLUSION VALUE TOTAL PROPERTY 39 x $56,000 =$2,200,000 ¹Cumulative ²Additive Rounded to nearest $100,000 LAND VALUATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 43 LAND VALUE CONCLUSION The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of multi-family development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. ANALYSIS OF VALUE CONCLUSIONS VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE AUGUST 29, 2023 FINAL VALUE CONCLUSION $2,200,000 $/Unit $56,410 Exposure Time 12 Months or Less Marketing Period 12 Months or Less CERTIFICATION JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 44 We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions of the signers are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • The signers of this report has 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. • Kyle Hildenbrand has 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. Patrick R. Phipps, MAI has 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. • The signers are not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The 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. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • Kyle Hildenbrand inspected the property that is the subject of this report. Patrick R. Phipps, MAI did not inspect the property that is the subject of this report. • No one provided significant real property appraisal assistance to appraisers signing this certification. CERTIFICATION CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 45 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 Patrick R. Phipps, MAI completed the continuing education program for Designated Members of the Appraisal Institute. As of the date of this report Kyle Hildenbrand has completed the Standards and Ethics Education Requirement for (Candidates or Practicing Affiliates) of the Appraisal Institute. September 8, 2023 Date September 8, 2023 Date Kyle Hildenbrand Senior Valuation Specialist State Certified General Real Estate Appraiser License #RZ3943 +1 904 861 1105 kyle.hildenbrand@colliers.com Patrick R. Phipps, MAI Managing Director | Jacksonville State Certified General Real Estate Appraiser License #RZ2954 +1 904 861 1114 patrick.phipps@colliers.com ASSUMPTIONS & LIMITING CONDITIONS JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 46 This appraisal is subject to the following assumptions and limiting conditions: • The appraisers may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. • We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. • The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property. • The appraisers assume no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. • This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication. • The appraisers may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraisers which is not specifically disclosed in this report. • Without the written consent or approval of the authors neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraisers and the firm with which the appraisers are connected. • This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. • The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. • The liability of Colliers International Valuation & Advisory Services, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraisers are in no way responsible for any costs incurred to discover or correct any deficiency in the property. • The appraisers are not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers International Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property ASSUMPTIONS & LIMITING CONDITIONS CONTINUED JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 47 damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. • The appraisers assume no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers International Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion. • An on-site inspection of the subject property was conducted. No evidence of asbestos materials on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on value and increased perceived risk, a revision of the concluded values may be necessary. • A detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions. • This analysis assumes that the financial information provided for this appraisal, including rent rolls and historical income and expense statements; accurately reflect the current and historical operations of the subject property. ADDENDA JAX230313 © 2023 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 48 Engagement Letter Survey Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services Colliers Valuation & Advisory Services Professional Service Agreement Colliers 76 South Laura Street,Suite 1500 Jacksonville,FL 32202 Direct: +1 904 861 1114 Mobile: +1 904 254 0618 www.colliers.com/valuationadvisory August 30, 2023 Patrick R. Phipps, MAI Managing Director I Jacksonville Direct +1 904.861.1114 Mobile +1 904.254.0618 Patrick.Phipps@colliers.com Joe Gerrity Interim City Manager City of Atlantic Beach 800 Seminole Road Atlantic Beach, FL 32233 Phone: (904) 247-5880 Fax: (904) 247-5819 pdrake@coab.us RE: Appraisal of Three (3) Land Properties Dear Patty Drake: Thank you for considering Colliers International Valuation & Advisory Services, LLC for the assignment identified in the below stated Professional Service Agreement. Please sign one copy of the agreement and return it to me, thereby indicating your authorization for us to proceed with this assignment and your acceptance of the attached Terms and Conditions. PRQFESSIONAL SERVICE AGREEMENT Agreement") Project 1. 85 DORA ST. - PARCEL 172119-0000 ("Property") 2. 70 DORA ST. - PARCEL 172122-0000 ("Property") 3. 1940 FRANCIS AVE - PARCEL 172118-0000 ("Property") Project Description The subjects are all land properties. Parties Colliers International Valuation & Advisory Services, LLC ("CIVAS") and City of Atlantic Beach (herein at times referred to as"Client") Intended User The appraisal will be prepared for City of Atlantic Beach. Intended users include the Client. No other users are intended. It should be noted that if this engagement is directly with the owner of the Property, the Appraisal will not be accepted by federally insured lenders due to FIRREA Compliance, limiting the use of this report. Should this potentially impact your source of lenders, we recommend engagement be directed by a Federally Insured Lender. Intended Use The report to be performed under this Agreement ("Appraisal") is intended only for use in Internal Decision Making - value for potential acquisition. The report is not intended for any other use. Purpose Market Value Type of Appraisal CIVAS will produce an Appraisal Report in which the appraiser's analysis and conclusions will be summarized within this document. Rights Appraised Fee Simple Date of Value Date of inspection (or other date defined by appraiser) Accelerating success. Professional Service Agreement Continued Scope of Work CIVAS and/or its designated affiliate will provide the Appraisal in accordance with USPAP, and the Code of Ethics and Certifications Standards of the Appraisal Institute and State Licensing Laws. CIVAS will research relevant market data and perform analysis to the extent necessary to produce credible appraisal results. Based on our discussions with the Client, the Client has requested the following valuation scenarios: As Is CIVAS anticipates developing the following valuation approaches: Land Value An observation of the subject property will be performed. Please note if it's a requirement per the client's underwriting guidelines to analyze and report all approaches to value, this will be performed although some approaches may be limited in application. The scope of work will be included in the Appraisal. A copy of the Assumptions and Limiting Conditions, which appear in the Appraisal, is available upon request. Delivery Draft Appraisal: Delivered fifteen (15) business days from the date of authorization and receipt of property specific information. Final Appraisal: Delivered three (3) days after completion of client review and authorization to deliver final report(s). Professional Fee $3,500 Expenses Fee includes all associated expenses. No. of Reports One (1) Electronic Draft Appraisal and One (1) Electronic Final Appraisal. No printed copies will be delivered to the client. Retainer No retainer is required. Payment Terms CIVAS will invoice Client for the Appraisal in its entirety at the delivery of the draft report. Final payment is due and payable within five (5) business days upon delivery of the electronic copy of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. If a draft report is requested, the fee is considered earned upon delivery of the draft report. If for any reason the client cancels the work before work was completed or for reasons beyond Colliers'control, then the client would pay for an agreed amount for work completed. Acceptance Date These specifications are subject to modification if this Agreement is not accepted within three (3) business days from the date of this letter. Professional Service Agreement Continued Terms and Conditions The attached Terms and Conditions and Specific Property Data Request are deemed a part of this Agreement as though set forth in full herein. The following is a list of information needed to begin and complete our analysis. The Client signing this Agreement or the party sending the specific property data certifies that all the information provided is accurate and complete as of the date of this request, and that any updates, revisions or additional relevant information that comes into control or possession of the Client prior to the date on which the Appraisal is delivered shall be provided to CIVAS immediately. Please forward with the Agreement or as soon as possible. Survey with Legal Description &Site Size Three year&YTD Income &Expenses Title Report Current Budget Wetland Delineation Map (if applicable)Detailed occupancy report for the past 3 years and YTD Engineering studies, soil tests or environmental > Detailed current certified rent roll indicating any vacant assessments units and in-place rents Ground lease (if applicable) Details regarding any pending changes to the rent roll Existing Building or Improvement Plans including any negotiated side deals to delay or forgive rent Individual Floor or Unit Plans payments Current County Property Tax Bill Aged Accounts/Delinquency Report Details on any Sale, Contract, or listing of the property in > Details regarding any concessions currently being offered the past 3 years for new and existing tenants Construction Cost/Budget (within past 3 years)Marketing plan and/or local competitive study, if available Detailed list of personal property items Copy of recent Appraisals or Market Studies Property Condition Report Name and telephone number of property contact for Details regarding the historical and future replacement physical inspection and additional information needed schedule (i.e., carpets, appliances, cabinetry, laundry during the appraisal process facilities, HVAC, etc.) Property Contact Capital improvements history (2 years) & budget In addition to the items requested above, please forward any additional materials you would consider relevant in the analysis of the subject property. Reliance Language The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with the stated Intended Use. CIVAS is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by CIVAS or portions of such Appraisal, to become part of or be referenced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that CIVAS will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to CIVAS, by a party satisfactory to CIVAS. CIVAS hereby expressly grants to client the right to copy the Appraisal and distribute it to employees of client and to your accountants/auditors in its entirety (but not component parts) without the need to provide CIVAS with an Indemnification Agreement and/or Non-Reliance letter. If you have questions regarding the enclosed, please feel free to contact me. CIVAS appreciates this opportunity to be of service to you on this assignment and looks forward to serving you. If you have additional questions, please contact us. I, Joe Gerrity, agree to the above stated terms and authorize Colliers International Valuation & Advisory Services, LLC to prepare the above referenced appraisal. Date: 3 ( ' 2, Joe Gerrity Interim City Manager City of Atlantic Beach Respectfully, Colliers International Valuation & Advisory Services, LLC Patrick R. Phipps, MAI Managing Director I Jacksonville Direct +1 904.861.1114 Mobile +1 904.254.0618 Patrick.Phipps@colliers.com Professional Service Agreement Contnued Terms and Conditions T&C" 1) The Appraisal will be subject to Colliers International Valuation &Advisory Services, LLC's ("CIVAS") Assumptions and Limiting Conditions that are incorporated into each appraisal, and any Extraordinary Assumptions and Hypothetical Conditions that may be incorporated into each appraisal. 2) Any capitalized, non-defined words shall have the same meaning as defined in the Agreement to which these T&Cs are attached. 3) Client is defined as the party signing the Agreement and shall be responsible for payment of the fees stipulated in the Agreement. Payment of the fee for the Appraisal is not contingent on the appraised value(s) or the outcome of the report(s). Additional fees will be charged on an hourly basis for any work that may exceed the scope of this proposal, including performing additional valuation scenarios, additional research, and conference calls, meetings, deposition preparation, deposition, trial testimony or travel that may exceed the time allotted by CIVAS for an assignment of this nature. If CIVAS is requested to cease working on the Appraisal for any reason prior to the completion of the appraisal(s), CIVAS will be entitled to bill the Client for the time spent to date at CIVAS' hourly rates for the personnel involved. The Client will be billed a minimum $500 or at a rate of $250 per hour for associate time, $300 per hour for valuation services director, $400 per hour for managing director, and 450 per hour for executive managing director. If the Client delays completion of the assignment beyond ninety (90) days, the fee may be renegotiated. This may result in the total fee exceeding the original agreed fee agreed upon cost. 4) Client agrees to pay all fees and expenses, including attorney's fees, incurred by CIVAS in connection with the collection or attempted collection of the fees and expenses. In the event Client fails to make payments when due and payable, the amount due shall bear interest at 1.5% per month or the maximum rate permitted in the state in which the CIVAS office executing the Agreement is located, whichever is lesser. 5) The fee is due upon delivery of the final report or within thirty (30) days of your receipt of the draft report, whichever is sooner. If a draft is requested,the fee is considered earned upon delivery of our draft report. 6) In the event that either party commences any legal action relating to the provisions of the Agreement, including collection, the prevailing party shall be entitled to its actual attorneys' fees and costs. The Agreement shall be governed by and construed in accordance with the laws of the state where the CIVAS office executing the Agreement is located. The venue of any action arising out of the Agreement shall be the county where the CIVAS office executing the Agreement is located. Client will have up to thirty (30) days from receipt of the Draft Appraisal to review and communicate its review to CIVAS. CIVAS reserves the right to bill Client for additional appraisal efforts that may arise from the Client not responding within with this time period. 7) CIVAS does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the state of affairs of the Property furnished to CIVAS by Client. In the event that any such information is inaccurate, misleading or incomplete, CIVAS shall have no responsibility or liability for any matters relating thereto (whether to the Client or to any third party). 8) CIVAS shall have no responsibility for legal matters, questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The Appraisal will not constitute a survey of the Property analyzed. 9) Client shall provide CIVAS with such materials with respect to the Appraisal as requested by CIVAS and which are in the possession or under the control of Client. Client shall provide CIVAS with sufficient access to the Property to be analyzed and hereby grants permission for entry, unless discussed in advance to the contrary. 10)The data gathered in the course of the Appraisal (except data furnished by Client) and the Appraisal prepared pursuant to the Agreement are, and will remain, the property of CIVAS. With respect to data provided by Client, such data shall be confidential, and CIVAS shall not disclose any information identified as confidential furnished to CIVAS. Notwithstanding the foregoing, CIVAS is authorized by Client to disclose all or any portion of the Appraisal and the related data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable CIVAS to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect. 11) Unless specifically noted, CIVAS does not assume any duty to analyze or examine the Property or adjacent property for the possible presence of toxic and/or hazardous substances or materials (including but not exclusive to asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (hazardous material), or the cost of encapsulation or removal thereof) and accepts no liability regarding the issue. If such materials exist, CIVAS defers to the expertise of professionals specifically trained in analyzing the cost to remediate, which will not be a part of the appraisal fee proposal. The Appraisal will contain a comprehensive disclaimer to this effect. 12) CIVAS understands that there is no major or significant deferred maintenance in the Property which would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, and are not a part of the fee contemplated in the Agreement. 13)Client acknowledges that CIVAS is being retained hereunder as an independent contractor to perform the services described herein and nothing in the Agreement shall be deemed to create any other relationship between Client and CIVAS. The Agreement shall be deemed concluded and the services hereunder completed upon delivery to Client of the Appraisal discussed herein. 14)Client agrees that its only remedy for losses or damages relating to the Agreement shall be limited to the amount of the appraisal fee paid by the Client and in no circumstances shall CIVAS be liable for any losses or damages in excess of this amount. Should the Client, or any other entitled party, make a claim against CIVAS, its directors, officers, employees and other affiliates and shareholders, relating to this engagement or the appraisal(s), the maximum damages recoverable from CIVAS, its directors, officers, employees and other affiliates and shareholders, shall be the amount of funds actually collected by CIVAS under the Agreement, and no claim shall be made for any consequential or punitive damages. Professional Service Agreement Continued 15) If CIVAS or any of its employees receives a subpoena or other judicial notification to produce documents or provide testimony involving the Appraisal in connection with a lawsuit or related proceeding, CIVAS will notify the Client of receipt of the subpoena or notification. However, if CIVAS is not part of the lawsuit or proceedings, Client agrees to compensate CIVAS for the professional time required and to reimburse CIVAS for the expenses incurred in responding to any such subpoena or judicial notification, including any attorneys' fees, as they are incurred. CIVAS is to be compensated at the prevailing hourly rates of the personnel responding to the subpoena or command for testimony. 16) If expert witness testimony is required in connection with the Appraisal, the following hourly rates will apply. The Client will be billed at the rate of $250 per hour for associate time, $350 per hour for valuation services director, $400 per hour for managing director, and $450 per hour for executive managing director. The hourly billings pertain to court preparation, waiting and travel time, document review and preparation (excludes appraisal report) and all meetings related to court testimony. 17) Client shall indemnify and hold CIVAS, its parent, subsidiaries, affiliates, its officers, directors, employees and agents ("CIVAS Indemnities"), fully harmless against all losses, damages, claims, and expenses of any kind whatsoever (including costs and reasonable attorneys' fees), sustained or incurred by a third party as a result of the negligence or intentional acts or omissions of Client (including any failure to perform any duty imposed by law), any misrepresentation, distortion or if Client fails to provide complete and accurate information to CIVAS, for which recovery is sought against the CIVAS Indemnities; however, such obligation to defend and indemnify shall not apply to the extent caused by the negligent act or willful misconduct of CIVAS. Client shall indemnify and hold CIVAS Indemnities harmless from any claims, expenses, judgments or other items or costs arising as a result of the Client's failure or the failure of any of the Client's agents to provide a complete copy of the Appraisal to any third party. LIMITATION OF LIABILITY. EXCEPT FOR THE INDEMNIFICATION PROVISION ABOVE, ANYTHING IN THE AGREEMENT TO THE CONTRARY NOTWITHSTANDING, UNDER NO CIRCUMSTANCES WHATSOEVER SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, OR INCIDENTAL DAMAGES OF ANY KIND WHATSOEVER. 18) CIVAS agrees to maintain Professional Liability Insurance in the amount of $1,000, 000 and General Liability insurance in the amount of $2,000,000, as well as Workers Compensation per local regulatory requirements. CIVAS will endeavor to provide Client with written notice regarding any cancellation of any such insurance. CIVAS will provide Client with certificates of insurance naming Client as an additional insured on the General Liability policy upon request. 19)The Appraisal and the name Colliers International Valuation & Advisory Services may not be used in any marketing or investment material or offering memoranda without CIVAS' prior written consent. CIVAS, its employees and appraisers have no liability to any recipients of any prepared material and disclaim all liability to any party other than the Client. 20) Unless CIVAS consents in writing, the Appraisal cannot be used by any party or for any purpose other than the Client for the purposes specified in the Agreement. Should the Client provide a copy of this Appraisal to any person or entity not authorized by CIVAS in writing, Client hereby agrees to hold CIVAS, its directors, officers, employees and other affiliates and shareholders, harmless from all damages, expenses, claims and costs, including any attorney's fees. The Client acknowledges that any opinions and conclusions expressed by the professionals of CIVAS pursuant to the Agreement are made as employees and not as individuals. CIVAS' responsibility is limited to the Client, and the use of the Appraisal or related product by third parties shall be solely at the risk of the Client and/or third parties. 21)The use of this appraisal shall be used only for the purpose as set forth in the Intended Use section of the Agreement. In the event that the client wishes to use this report or portions of this report for any other purpose such as, to become part of or be referenced in, any offering or other material intended for the review of others, or to be submitted to others, will be at the Client's sole and absolute discretion and, if given, will be on condition that CIVAS will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to CIVAS and the Client, by a party satisfactory to CIVAS and the Client. CIVAS does consent to Client submission of the complete Appraisal to rating agencies, loan participants or your accountants/auditors without the need to provide us with an Indemnification Agreement and/or Non-Reliance letter. OORq OR/ve LEGEND ALUM. ALUMINUM BOT BOTTOM (C)CALCULATED (C & D)CALCULATED AND DEED CATV CABLE TELEVISION CHAIN LINK FENCE CONCRETE CONCRETE MONUMENT CORRUGATED METAL PIPE DIRECTION ELEVATION EDGE OF PAVEMENT GUY ANCHOR HEADWALL HIGHWAY IDENTIFICATION INVERT ELEVATION IRON PIPE MITERED END SECTION MANHOLE MONUMENT NUMBER OVERHEAD ELECTRIC LINE OVERHEAD TELEPHONE LINE OFFICIAL RECORDS BOOK PLATTED PLASTIC PIPE REINFORCED CONCRETE PIPE RIGHT -OF -WAY SANITARY SEWER TELEPHONE TOP OF BANK TRAVERSE UNKNOWN WOOD BOARD FENCE WOOD POWER POLE WOOD SHARED UTILITY POLE WOOD SHARED UTILITY POLE WITH TRANSFORMER FIRE HYDRANT SIGN WATER METER WATER VALVE COVER CON C. CMON CMP DIR. ELEV. EOP OVA HOWL HWY ID INV. IP MES MI-I MON. NO. OHE OHT ORB (P) VC RCP R/W SAN. TELE. TON TRAY. UNO. WRY WPP WSHP WSHPTt, POINT OF BEGINNING SW COR RER LOT 11 D B NER S SUBDIVISION MAP SHOWING BOUNDARY & TOPOGRAPHIC SURVEY OF: Alt DORA PARCEL A PART OF SECTION 17, TOWNSHIP 2 SOUTH, RANGE 29 EAST, AND A PART OF LOTS 10 AND 11, E.H. DONNER'S SUBDIVISION, ACCORDING TO PLAT RECORDED IN PLAT BOOK B, PAGE 4, CURRENT PUBLIC RECORDS OF DUVAL COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:FOR A POINT OF COMMENCEMENT BEGIN AT THE SOUTHWEST CORNER OF SAID LOT 11; THENCE NORTH 00'24'24" WEST ALONG THE WEST LINE OF SAID LOTS 10 AND 11,A DISTANCE OF 247.82 FEET TO THE NORTHWEST CORNER OF THE SOUTH 50 FEET OF LOT 10;THENCE NORTH 89'27'49" EAST ALONG THE NORTH LINE OF THE SOUTH 50 FEET OF LOT 10, A DISTANCE OF 440.00 FEET TO AN INTERSECTION WITH THE WESTERLY RIGHT -OF -WAY LINE OF FRANCIS AVENUE (A 30.00 FOOT RIGHT -OF -WAY BY PLAT); THENCE SOUTH 00'33'04" EAST ALONG SAID RIGHT -OF -WAY LINE, A DISTANCE OF 50.00 FEET TO THE SOUTHEAST CORNER OF SAID LOT 10; THENCE DEPARTING SAID RIGHT -OF- WAY SOUTH 89'27'49" WEST ALONG THE SOUTH LINE OF LOT 10, A DISTANCE OF 94.00 FEET; THENCE DEPARTING SAID LOT LINE SOUTH 00'33'04" EAST. A DISTANCE OF 112.00 FEET; THENCE NORTH 89'27'49" EAST, A DISTANCE OF 20.00 FEET; THENCE SOUTH 00'33'04" EAST, A DISTANCE OF 74.00 FEET; THENCENORTH 89'27'49" EAST, A DISTANCE OF 74.00 FEET TO A POINT ON SAID RIGHT -OF -WAY LINE; THENCE SOUTH 00'33'04" EAST ALONG SAID RIGHT -OF -WAY LINE, A DISTANCE OF 12.00 FEET TO THE SOUTHEAST CORNER OF SAID LOT 11;THENCE SOUTH 89'29'13" WEST ALONG SAID SOUTH LINE OF LOT 11, A DISTANCE OF 222.13 FEET; THENCE DEPARTING SAID LOT LINE NORTH 01'46'50" WEST. A DISTANCE OF 50.00 FEET; THENCE NORTH 78'01'33" WEST, A DISTANCE OF 115.65 FEET; THENCE SOUTH 01'14'37" WEST, A DISTANCE OF 75.00 FEET TO A POINT ON SAID SOUTH LINE OF LOT 11;THENCE SOUTH 89'29'13" WEST ALONG SAID LOT LINE. A DISTANCE OF 105.43 FEET TO THE POINT OF BEGINNING. CONTAINING 1.977 ACRES MORE OR LESS. N 89'27'49' E 440.00' B2 y0 .VN5JL t ,00 OF m SET i 2" IRON ROD AND CAP STAM ED "GAI LB 3604' B7 LINE TABLE LINE BEARING LENGTH N 43' 33' ' 4 . E 11.26 51 55 E 42.11 A71 /Al A7OA<. A9 A8. A8.9A/A AA87///A6 A6/Á/A4 5 A5 A4 /A3 Al B2 Bá//8B5 B6/B7o9á. 5 89' 49' 32: ES 66' 26; 12 WS 42' 00' 36" WN 79' 48' 31' EN 88' 04' 27" EN 78' 40' 58" EN 58' 54' 32ti EN47'13'59 EN65'04'01"EN 89' 27' 49" ES 70' 54' 18" WS60'35'08 WS 62' 45' 22j' W S 81' 47' 10 W S 80' 57' 03" WS 49' 16' 58" WN 00'24'24" W 21.99 11.16 15.87 30.37 34.07 32.54 16.22 40.59 35.88 53.17 66.95 51.28 42.84 49.01 52.52 32.11 26.10 86 N VACANT Ot 440'(P) TBJ PROPERTIES, LLC 100 NORTH LAURA STREET JACKSONVILLE. FL 32202 SITE: 1940 FRANCIS AVENUE ATLANTIC BEACH, FL 32233 RE IO.172118 -0000 ORB 16499. PAGE 2006 SOUTH LOT LINE E.H. DONNER'S SUBDIVISION OF GOVERNMENT LOTS 2 AND SECTION 17,TOWNSHIP 2 SOUTH, RANGE 29 EAST P.B.8, PAGE 4 TBJ PROPERTIES, LLC 100 NORTH LAURA STREET JACKSONVILLE, FL 32202 SITE: 85 DORA DRIVE ATLANTIC BEACH. FL 32233 RE ID. 172119 -0000 ORB 16499, PAGE 2006 78131.33!N FENCE, 5 TIC 2.3 EXCEPTION JOHNNY RAYFORT CROUCH, SR 80 DORA DRIVE ATLANTIC BEACH, FL 32233 RE IO.172121 -0000 ORB 5957. PAGE 1055 FINAL PERMITTED PANS 0?8 Alotte~gk-ao uP I-SOUTH LOT LINE 1.FE)1 TIE -1 9 S, CE 2.3'W 1711j2.% 1r 6pW,# i 3'ry 35.ßw I 4'ALUM: 1.4 N F010E I TN 3 2. FE{CE 31.95 7.3Y N S 89'27'49' W 94.00' HABITAT FOR HUMANITY OF THE JACKSONVILLE BEACHES P.O. BOX 50939 JACKSONVILLE BEACH, FL 32240 -0939 SITE: O FRANCIS AVENUE ATLANTIC BEACH, FL 32233 RE íO.172336 -0005 ORB 13778, PAGE 1987 N 9'27'49' E J 20.80' FENCE TI): Ri N, 0.5E NOT PART OF SURVEY ' -FENCE TIE:06'E FENCE TIE:0.3'E N 8977'49' E 74.00'FENCE TIE: EME: 0.3'N 4'ALUM: 1.014 FENCE TIE:1.014 S 89'29'13' W 222.13' 1.BEARINGS SHOWN HEREON BASED ON THE WESTERLY RIGHT -OF -WAY LINE Of! FRANCIS AVENUE. STALE ANE COORDINATE SYSTEM EAST ZONE. NORTH AMERICAN VERTICAL DATUM 03/ 20'11, WITH A BEARING OF SIp,I,).' 00'33'04" EAST. 2.ELEVATIONS SHOWN HEREON ARE BASED ON NDRTH AMERICAN VERTICAL DATUM OF 1988 (NAVD'88) WITH AN ORIGINATING BENCHMARK BEING A SET IRON R D AND CAP STAMPED "LB 3604 ",WITH AN ELEVATION OF 25.67 FEET, SHOWN HEREON. 3.ONLY ABOVE GROUND INDICATORS TO SUBSUR ACE UTIURES WERE LOCATED BY 'Ni SURVEY. NO UNDERGROUND UTILITIES OR FOUNDATIONS WERE LOCATED BY THIS SURVEY. 4.THE SUBJECT PROPERTY APPEARS TO LIE IN FLOUR ZONE UNSHADED X, WHICH IS AN ARCA DETERMINED TO BE OUTSIDE THE 0.2% ANNUAL CHANCE FLOODPLAIN (500 -YEAR FLOOD), ACCORDING TO COMMUNITY PANEL NUMBER 120077- 0408 -H, MAP NUMBER 12031C0408H OF THE ROOD INSURANCE RATE MAPS FOR DUVAL COUNTY, FLORIDA DATED JUNE 3, 2013, PUBLISHED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA). N IN. 6.86' E NV. 6.90' S NV. 6.79' S 08'33104" E 68.110' S 00'33'04 E 12.00' R 4 CEIVED V 22 2016 JACKSONVILLE SC 6 J V 1 5 JOB NUMBER[] /60838 MAP NUMBER T0229009 Valuation Glossary 2023 Valuation & Advisory Services Direct: +1 206 695 4200 Fax: +1 206 682 7938 colliers.com 601 Union Street Suite 4800 Seattle, WA 98101 United States Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Ad Valorem Tax A real estate tax based on the assessed value of the property, which is not necessarily equivalent to its market value. (15th Edition) Arm’s-length Transaction A transaction between unrelated parties who are each acting in his or her own best interest. (Dictionary) As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Assessed Value The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (Dictionary) Average Daily Room Rate (ADR) In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid occupied rooms. (Dictionary) Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment. (Dictionary) Cash-Equivalent Price The sale price of a property that is equivalent to what a cash buyer would pay. (Dictionary) Common Area The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. (Dictionary) Contract Rent The actual rental income specified in a lease. (15th Edition) Cost Approach A set of procedures through which a value indication is derived for the fee simple estate by estimating the cost new as of the effective date of the appraisal to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. The contributory value of any site improvements that have not already been considered in the total cost can be added on a depreciated-cost basis. Adjustments may then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property rights being appraised. (Dictionary) Curable Functional Obsolescence An element of depreciation; a curable defect caused by a flaw involving the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of a property. (Dictionary) Depreciation In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. (Dictionary) Direct Costs Expenditures for the labor and materials used in the construction of improvements; also called hard costs. (Dictionary) Unless specified otherwise, these definitions were extracted from the following sources or publications: The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022 (Dictionary). Uniform Standards of Professional Appraisal Practice, 2020-2023 Edition (USPAP). The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, Chicago, Illinois, 2020 (15th Edition). Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. (Dictionary) Discount Rate A rate of return on capital used to convert future payments or receipts into present value. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Easement The right to use another’s land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation. (15th Edition) Economic Life The period over which improvements to real estate contribute to property value. (Dictionary) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the appraisal or review opinion applies (SVP) (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary) Effective Rent The total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions - e.g. free rent, excessive tenant improvements, moving allowances, lease buyouts, cash allowances, and other lease incentives. (15th Edition) Eminent Domain The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Dictionary) Entrepreneurial Incentive The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. (Dictionary) Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur received for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. (Dictionary) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the lessor and may reflect superior management, a lease execution in an earlier, stronger rental market, or an agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (15th Edition) Expense Stop A clause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP) External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent. There are two forms of external obsolescence: economic and locational. (Dictionary) Fair Market Value In nontechnical usage, a term that is equivalent to the contemporary usage of market value. As used in condemnation, litigation, income tax, and property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency or interpreted differently by court precedent. (Dictionary) Feasibility Analysis A study of the cost-benefit relationship of an economic endeavor. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. (Dictionary) Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. (Dictionary) Functional Obsolescence The impairment of functional capacity of improvements according to market tastes and standards. (Dictionary) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-concern An established and operating business having an indefinite future life. (Dictionary) Going-concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary) Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) Gross Living Area (GLA) Total area of finished, above-grade residential space area; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary) Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid (IVS). (Dictionary) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Income Capitalization Approach In the income capitalization approach, an appraiser analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach are used to analyze comparable sales data and to measure obsolescence in the cost approach. (15th Edition) Incurable Functional Obsolescence An element of depreciation; a defect caused by a deficiency or superadequacy involving the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all-risk insurance during construction, and marketing, sales, and lease-up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary) Interim Use The use contemplated by the market participants that the subject real estate can be put to while waiting for certain subsequent factors to occur. (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Legal Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; sometimes known as a legally nonconforming use. (Dictionary) Liquidation Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Market Area The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. (Dictionary) Market Study An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary) Market Value (Most Common Non-FRT) The most probable price, as of a specific date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue distress. (Dictionary) Market Value (Interagency Guidelines) 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: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 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. (Interagency Appraisal and Evaluation Guidelines, Federal Register, December 10, 2010. Marketability Analysis The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property. (Dictionary) Neighborhood Analysis The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors. (Dictionary) Net Net Net Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN lease, triple net lease, or fully net lease. (Dictionary) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). (15th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may be either functional or external. (Dictionary) Off-site Costs Costs incurred in the development of a project excluding on- site costs such as grading and construction of the building and other improvements; also called common costs or off- site improvement costs. (Dictionary) On-site Costs Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary) Overage Rent The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (15th Edition) Overall Capitalization Rate (OAR) The relationship between a single year’s net operating income expectancy and the total property price or value. (Dictionary) Parking Ratio The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances. (Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Potential Gross Income Multiplier (PGIM) The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary) Present Value (PV) The value of a future payment or series of future payments discounted to the current date or to time period zero. (Dictionary) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long- term occupancy. (Dictionary) Qualitative Adjustment An indication that one property is superior, inferior, or similar to another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (Dictionary) Quantitative Adjustment In the application of the sales comparison and income capitalization approaches, a numerical (dollar or percentage) adjustment to the sale price, rent, or expense amount of a comparable property to account for the effect on value of a difference between each comparable property and the subject property. (Dictionary) Rentable Area The amount of space on which the rent is based; calculated according to local practice. (Dictionary) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (Dictionary) Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property is replaced with a new property (i.e., depreciation is not deducted). (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary) Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is available. (Dictionary) Scope of Work The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to: The extent to which the property is identified; The extent to which tangible property is inspected; The type and extent of data researched; and The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP) Shopping Center Types Neighborhood Shopping Center: The smallest type of shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets. Neighborhood shopping centers offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people. Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. A community shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people. Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people. Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full-line department stores. This type of center is typically supported by a population area of 300,000 people. (15th Edition) Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sales prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. (Dictionary) Superadequacy An excess in the capacity or quality of a structure or structural component; determined by market standards. (Dictionary) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Tenant Improvements (TIs) 1. Fixed improvements to the land or structures installed for use by a lessee. 2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary) Usable Area The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas. (Dictionary) Useful Life The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary) Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income deductions due to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization A method used to convert future benefits into present value by (1) discounting each future benefit at an appropriate yield rate, or (2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value change, and yield rate. (Dictionary) Melanie S. Griffin, SecretaryRon DeSantis, GovernorSTATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONFLORIDA REAL ESTATE APPRAISAL BDTHE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THEPROVISIONS OF CHAPTER 475, FLORIDA STATUTESHILDENBRAND, KYLEDo not alter this document in any form.76 S LAURA STREET SUITE 1500LICENSE NUMBER: RZ3943EXPIRATION DATE: NOVEMBER 30, 2024This is your license. It is unlawful for anyone other than the licensee to use this document.JACKSONVILLE FL 32202Always verify licenses online at MyFloridaLicense.com Senior Valuation Specialist Valuation & Advisory Services kyle.hildenbrand@colliers.com Direct: +1 904 861 1105 Mobile: +1 563 320 2574 Fax: +1 904 353 4949 colliers.com 76 S Laura Street Suite 1500 Jacksonville, FL 32202 United States Kyle Hildenbrand Area of Expertise Kyle Hildenbrand serves as a Senior Valuation Specialist in the Jacksonville, Florida office for Colliers International Valuation & Advisory Services. Mr. Hildenbrand joined Colliers in 2021 and has over 10 years of experience in real property valuation and consulting services. He specializes in the appraisal of office and retail properties. Mr. Hildenbrand provides services to a broad range of clients that include corporations, developers, investment managers, lending institutions, pension fund advisors, private investors, and REITs. Mr. Hildenbrand’s experience includes appraisal, appraisal review, and valuation management for a variety of purposes including financial reporting, investment management, financing, corporate and estate planning, condemnation, assessment appeal, and market rent/rent comparability studies. He has experience working with assets across all primary property types and has been involved in valuation assignments in more than 20 states. Affiliations or Memberships Candidate for Designation – Appraisal Institute Professional Background 2021 – Present: Colliers International Valuation & Advisory Services | Senior Valuation Specialist 2018 – 2021: Situs AMC | Vice President, Valuation Management & IF 2017 – 2018: Jones Lang LaSalle Valuation & Advisory Services | Senior Analyst 2011 – 2017: Iowa Appraisal and Research Corporation | Appraiser Appraisal Institute Courses • Advanced Income Capitalization • Quantitative Analysis • Advanced Market Analysis and Highest & Best Use • General Appraiser Report Writing and Case Studies • Real Estate Finance, Statistics, and Valuation Modeling • General Appraiser Sales Comparison Approach • General Appraiser Site Valuation and Cost Approach • National USPAP Course Education or Qualifications Iowa State University B.S., Finance State Certifications Florida Georgia Melanie S. Griffin, SecretaryRon DeSantis, GovernorSTATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONFLORIDA REAL ESTATE APPRAISAL BDTHE CERTIFIED GENERAL APPRAISER HEREIN IS CERTIFIED UNDER THEPROVISIONS OF CHAPTER 475, FLORIDA STATUTESPHIPPS, PATRICK RDo not alter this document in any form.76 S LAURA ST SUITE 1500LICENSE NUMBER: RZ2954EXPIRATION DATE: NOVEMBER 30, 2024This is your license. It is unlawful for anyone other than the licensee to use this document.JACKSONVILLE FL 32202Always verify licenses online at MyFloridaLicense.com Managing Director | Jacksonville Valuation & Advisory Services patrick.phipps@colliers.com Direct: +1 904 861 1114 Mobile: +1 904 254 0618 Fax: +1 904 353 4949 colliers.com 76 S Laura Street Suite 1500 Jacksonville, FL 32202 United States Patrick Phipps, MAI Area of Expertise Patrick Phipps is the Managing Director for the Jacksonville, Florida office of Colliers International Valuation & Advisory Services. He has been actively engaged in real estate valuation and advisory since 2002 with appraisal reports prepared for a wide variety of public and private clients. His experience includes analysis and appraisal of all types of real estate, including residential, retail, office, agricultural, industrial, and special purpose properties, among others. Mr. Phipps has extensive specialized expertise in hospitality properties with over 200 properties appraised throughout the Southeast and New York. He also focuses on appraisals for litigation, including specializing in eminent domain. He is an Appraiser of Record for the Florida Department of Transportation and has been qualified as an expert witness throughout Florida, preparing appraisals for condemnors and private property owners. Affiliations or Memberships Appraisal Institute Designated Member International Right-of-Way Association (IRWA) Member Professional Background 2002-2012 – Crenshaw Williams Appraisal Company, Senior Appraiser 2012-2017 Integra Realty Resources – Jacksonville, Managing Director/Principal 2017-2019 JLL Valuation & Advisory Services, Executive Vice President 2019 – Present Colliers International Valuation & Advisory Services, Managing Director – Jacksonville Representative Clients and Projects Ameris Bank CenterState Bank BankUnited PNC Bank Hancock Whitney Bank Trustmark Bank Renasant Bank City of Jacksonville St. Johns County & St. Johns County School Board Nassau County Florida Department of Transportation Williams Gas Pipeline Doyle Land Services Duke Energy Education or Qualifications Florida State University Bachelor of Science: Finance & Real Estate State Certifications Florida Georgia Texas Accelerating success. 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We act as an extension of your team. Our approach is collaborative, nimble and informed by uncommon knowledge. By aligning with your core business needs, we develop and execute customized real estate solutions to support your growth strategy. We are both results and process-driven. From the first handshake to the last, we manage the valuation process to minimize disruption, mitigate risk and mediate competing perspectives so that you can focus on what you do best. You can count on us to stay focused on your priorities. We are defined by our people. We attract an exemplary roster of top valuation experts across the United States – specialists who save you time and money by cutting through the noise to deliver the most favorable outcome. This document has been prepared by Colliers for advertising and general information only. 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