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Moody-Williams Appraisal - 2023-1163 Dora Street Land Prepared For: Mr. Steve Swann, P.E. City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233 Vacant Residentially Zoned Land Eastern terminus of Dora Street Atlantic Beach, Duval County, Florida 32233 1300 Riverplace Boulevard, Suite 640 Jacksonville, Florida 32207 904-516-8900 APPRAISAL REPORT 1300 Riverplace Boulevard, Suite 640, Jacksonville, F lorida 32207 | 904.516.8900 | moodywilliams.com May 5, 2023 Mr. Steve Swann, P.E. City of Atlantic Beach 800 Seminole Road Atlantic Beach, Florida 32233 RE: Appraisal of three contiguous parcels located at the end of Dora Street in Atlantic Beach, Duval County, Florida. Appraisal Number: 2023-1163 Dear Mr. Swann, As requested, the following is an Appraisal Report of the above-referenced property. The subject property is specifically described by both narrative and legal description contained within the attached Appraisal Report. Furthermore, the report describes the subject, its market area environment, and surrounding influences, including current economic market conditions, the methods of approach to the valuation problem. It contains data gathered and analyzed in arriving at our conclusion of market value. We developed our analyses, opinions, and conclusions and prepared this report in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation; the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; and the requirements of our client as we understand them. Based on the appraisal presented in the following report and subject to the assumptions and limiting conditions and definition of market value as set forth herein, our opinion of market value is shown on the following page. Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value "As Is" Fee Simple May 3, 2023 $2,400,000 The value above is subject to definitions,assumptions and limiting conditions set forth in the accompanying report of which this summary is part.No party other than the client and intended user may use or rely on the information,opinions and conclusions contained in the report.It is assumed that the user of the report has read the entire report. 1300 Riverplace Boulevard, Suite 640, Jacksonville, F lorida 32207 | 904.516.8900 | moodywilliams.com If you have questions or comments, please contact the undersigned. Thank you for the opportunity to provide appraisal services. Respectfully Submitted, MOODY WILLIAMS APPRAISAL GROUP, LLC Michael Hotaling Managing Partner State-Certified General Real Estate Appraiser RZ3226 Ronald K. Moody, MAI, SRA Founding Partner State-Certified General Real Estate Appraiser RZ864 John Timlin Trainee Appraiser State-Registered Trainee Appraiser RI25435 Extraordinary Assumptions & Hypothetical Conditions 1. None The value conclusion is subject to the following extraordinary assumptions that may affect the assignment results. 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. The value conclusion is based on the following hypothetical conditions that may affect the assignment results. A Hypothetical Condition is 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. 1.No metes and bounds legal description was provided for the subject.As such,we have taken the subject's parcel sizes from public records,which are assumed to be correct.If a boundary survey proves these land sizes inaccurate, our opinion of the subject's market value could be affected. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. iii TABLE OF CONTENTS Executive Summary ........................................................................................................................................................ 1 General Overview ............................................................................................................................................................ 2 Identification of Real Estate ................................................................................................................................... 2 Legal Description ........................................................................................................................................................ 2 Property Owner ........................................................................................................................................................... 3 Scope of Work ............................................................................................................................................................. 3 Appraisal Report Type .............................................................................................................................................. 4 Client ............................................................................................................................................................................... 4 Intended Use and User ............................................................................................................................................ 4 Appraisal Requirements........................................................................................................................................... 4 Purpose of Appraisal ................................................................................................................................................. 4 Inspection ...................................................................................................................................................................... 4 Date of the Report ..................................................................................................................................................... 4 Market Value Definition ........................................................................................................................................... 5 Property Interest Appraised ................................................................................................................................... 5 Prior Services................................................................................................................................................................ 5 Assessment and Taxes ................................................................................................................................................... 5 Land Use and Zoning ..................................................................................................................................................... 7 Zoning Map .................................................................................................................................................................. 7 Land Use/Zoning Requirements ........................................................................................................................... 7 Site Description ................................................................................................................................................................ 8 Location Maps ............................................................................................................................................................. 8 Tax Aerial Map............................................................................................................................................................. 9 Physical Characteristics ............................................................................................................................................ 9 Flood Map .................................................................................................................................................................. 10 FEMA Data ................................................................................................................................................................. 10 Environmental Hazards ......................................................................................................................................... 10 Easements/Encroachments/Restrictions ........................................................................................................ 11 Conclusion of Site Utility ...................................................................................................................................... 11 Subject Photographs ............................................................................................................................................. 12 Market Area Analysis .................................................................................................................................................. 13 Boundaries ................................................................................................................................................................. 13 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. iv Access and Linkages .............................................................................................................................................. 13 Surrounding Area Demographics ..................................................................................................................... 14 Demand Generators ............................................................................................................................................... 16 Outlook and Conclusions ..................................................................................................................................... 16 Multifamily Market Analysis ..................................................................................................................................... 17 Jacksonville Multifamily Market ......................................................................................................................... 17 Beaches Multifamily Submarket ........................................................................................................................ 18 Highest And Best Use ................................................................................................................................................. 19 Highest and Best Use “As If Vacant” ................................................................................................................ 20 Valuation Methodology ............................................................................................................................................. 21 Land Valuation .............................................................................................................................................................. 22 Land Sales Summary .............................................................................................................................................. 22 Analysis of Land Sales ........................................................................................................................................... 33 Land Sale Adjustment Grid .................................................................................................................................. 35 Reconciled Land Value .......................................................................................................................................... 36 Exposure Time ............................................................................................................................................................... 37 Marketing Time ............................................................................................................................................................. 37 Assumptions & Limiting Conditions ..................................................................................................................... 38 Certification – Michael Hotaling, MAI .................................................................................................................. 41 Certification - Ronald K. Moody, MAI, SRA ........................................................................................................ 43 Certification – John Timlin ........................................................................................................................................ 45 Qualifications of Michael Hotaling, MAI ........................................................................................................ 47 Qualifications of Ronald K. Moody, MAI, SRA .............................................................................................. 49 Qualifications of John Timlin .............................................................................................................................. 51 Engagement Letter ................................................................................................................................................. 53 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 1 EXECUTIVE SUMMARY Property Name Address Property Type Current Owners of Record Tax ID Numbers Gross Land Area 2.011 Acres; 87,599 SF Zoning Designation RG-M (Residential, General, Multi-Family) Subject Occupancy Highest & Best Use - As Vacant Multi-Family Development Exposure Time 6-12 Months Marketing Period 6-12 Months Date of Report May 5, 2023 Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value "As Is" Fee Simple May 3, 2023 $2,400,000 Extraordinary Assumptions & Hypothetical Conditions 1. None The value conclusion is subject to the following extraordinary assumptions that may affect the assignment results. 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. The value conclusion is based on the following hypothetical conditions that may affect the assignment results. A Hypothetical Condition is 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. The value above is subject to definitions,assumptions and limiting conditions set forth in the accompanying report of which this summary is part.No party other than the client and intended user may use or rely on the information,opinions and conclusions contained in the report.It is assumed that the user of the report has read the entire report. Vacant Residential Land 70 and 85 Dora Street & 1940 Francis Avenue Atlantic Beach, Duval County, Florida 32233 Wooded Land Hoose Homes and Investments, LLC 1.No metes and bounds legal description was provided for the subject.As such,we have taken the subject's parcel sizes from public records,which are assumed to be correct.If a boundary survey proves these land sizes inaccurate, our opinion of the subject's market value could be affected. Wooded Land 172119-0000, 172122-0000, & 172118-0000 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 2 GENERAL OVERVIEW IDENTIFICATION OF REAL ESTATE The subject property represents three, contiguous parcels totaling 2.146±-acres. The wooded site is residentially-zoned for single- and multi-family uses and located at the eastern terminus of Dora Street just off of Mayport Road within the municipal limits of Atlantic Beach, Florida. The subject site also has limited frontage along Francis Avenue. It is noted that the subject has three parcel numbers with separate addresses according to the Duval County Property Appraiser’s office as shown below. No boundary survey was provided for the subject. The most recent transfer deed for the subject contains a “Lot and Block” legal description, rather than a “metes and bounds” legal description. As such, the parcel sizes shown above were taken from the legal description section of the Duval County Property Appraisers website for each parcel. LEGAL DESCRIPTION The following legal description was taken from the most recent deed conveying the subject property provided by the Duval County Property Appraiser’s Office, Deed Book 18061, Page 1147. Parcel Number Address Gross Acres Gr. SF (Land)Zoning 172119-0000 85 Dora Drive 1.440 62,726 RG-M (Atlantic Bch) 172122-0000 70 Dora Drive 0.066 2,875 RG-M (Atlantic Bch) 172118-0000 1940 Francis Avenue 0.505 21,998 RG-M (Atlantic Bch) Subject 2.011 87,599 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 3 PROPERTY OWNER According to the Duval County Property Appraisers office website, the subject’s owner is Hoose Homes and Investments, LLC, which has owned the subject since July 14, 2017. The purchase transaction is summarized below. SCOPE OF WORK The scope of work includes all steps taken in the development of the appraisal. These include: 1. The extent to which the subject property is identified, 2. The extent to which the subject property is inspected, 3. The type and extent of data researched, 4. The type and extent of analysis applied and the type of appraisal report prepared. These items are discussed as follows: In preparing this appraisal of the subject property, the appraisers: • Gathered factual data on the subject property (zoning, land use, taxes, etc.). • Inspected the subject property. o Our inspection was limited to an on-site visual observation of the subject property on the date of the site visit. • Used sources such as the Duval County Property Appraisers website, The City of Atlantic Beach website, Municode website, CoStar website, FEMA website, etc., to identify subject info such as the address, site size, aerial maps, tax maps, flood maps, etc. • Considered the highest and best use of the subject property “as vacant”. • Researched recent sales of vacant land located within the subject’s immediate market area. • Analyzed current market data, which was analyzed in relation to the subject. • Prepared a Sales Comparison Approach to provide an opinion of current Market Value for the subject. • Prepared this Appraisal Report, which presents the significant data gathered during my investigation for this assignment, in addition to the analysis and conclusions reached as a result of the appraisal process. In developing our opinion of current market value for the subject, consideration was given to the subject’s zoning, surrounding improvements, and development potential under the City of Atlantic Beach Comprehensive Plan. Parcel Numbers 172119-0000, 172122-0000, & 172118-0000 Grantor Grantee Hoose Homes and Investments, LLC Sale Date July 14, 2017 Recorded (OR Book/Page)18061/01147 Deed Type Warranty Deed Sale Price $350,000 Land Size (Gr. Acres)2.146 Price Per Gr. Acre $163,094 Jacksonvilles Finest Homes, LLC File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 4 We also considered its location related to commercial and residential growth within the subject’s immediate market area as well as the Jacksonville MSA. Additional information obtained while completing this appraisal assignment is retained in the appraisal file and incorporated herein by reference. It is acknowledged that John Timlin, State-Registered Trainee Appraiser RI25435 made a significant professional contribution to this appraisal, consisting of researching the subject and transactions involving comparable properties, participating in the property inspection, assisting in appraisal practices, and assisting in report writing under the supervision of Ronald K. Moody, MAI, SRA, the trainee’s supervisory appraiser who signed this report. APPRAISAL REPORT TYPE This is an Appraisal Report described by the Uniform Standards of Professional Appraisal Practice (USPAP) under Standards Rule 2-2(a). CLIENT The client of this assignment is Mr. Steve Swann, P.E., with the City of Atlantic Beach. INTENDED USE AND USER The intended use of this appraisal is to estimate the current fair market value of the subject property for possible purchase. APPRAISAL REQUIREMENTS This appraisal and report are intended to conform to the requirements of the following: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; PURPOSE OF APPRAISAL The purpose of the appraisal is to estimate the subject’s current fair market value. INSPECTION Michael Hotaling, MAI, Ronald K. Moody, MAI, SRA, and John Timlin, State-Registered Trainee inspected the subject property on May 3, 2023. The inspection included a visual observation of site conditions, including access, visible easements or encroachments, and on- and off-site improvements affecting the property. DATE OF THE REPORT The date of the report is May 5, 2023, which is the date the report is completed and transmitted to the client. Assignment Premise Property Rights Date of Value Market Value "As Is" Fee Simple May 3, 2023 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 5 MARKET VALUE DEFINITION1 The purpose of this appraisal is to develop an opinion of the market value of the subject property. “Market Value,” as used in this appraisal, is defined as “the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and each 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.” PROPERTY INTEREST APPRAISED The fee simple interest is "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 Based on the unimproved condition of the subject, the property rights appraised in this assignment are the rights of Fee Simple Interest. PRIOR SERVICES USPAP requires appraisers to disclose to the client any other services they provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. • Michael Hotaling, MAI, Ronald K. Moody, MAI, SRA, and John Timlin have not previously appraised the subject property of this report within the three years immediately preceding acceptance of this assignment. ASSESSMENT AND TAXES Real estate tax assessments are administered by the Duval County Property Appraiser and are estimated by jurisdiction on a county-wide basis for the subject annually. Real estate taxes in this 1 Department of the Treasury, Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision and National Credit Union Administration under 12 CFR Part 34, Real Estate Appraisals and Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”); and the Interagency Appraisal and Evaluation Guidelines, Federal Register, Volume 75, No. 237, December 10, 2010. 2 The Dictionary of Real Estate Appraisal, 7th Edition (Chicago: Appraisal Institute, 2022), p. 73. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 6 state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. Real estate taxes and assessments for the 2022 tax year are shown in the following table. State law requires that all real property be revalued each year. The subject is reviewed to determine a new working value effective January 1st of every year. The millage rate is generally finalized in October of each year, and tax bills are received in late October or early November. If the taxes are paid before November 30th, the State of Florida allows a 4% discount. After March 31st, the taxes are subject to interest, penalties, and a tax lien sale. TAX HISTORY The subject’s historical taxes are shown in the following chart. According to the Duval County Tax Collector’s Office, the 2022 taxes are paid. No delinquent taxes from prior years were reported. Based on our opinion of market value for the subject, the current taxes appear low. . Parcel No. Land Improvements Just MV Cap Diff/ Portability Assessed Value Millage Rate 172119-0000 $412,800 $0 $412,800 -$167,272 $245,528 16.8431 $5,053 172122-0000 $48,640 $0 $48,640 -$19,712 $28,928 16.8431 $595 172118-0000 $145,408 $0 $145,408 -$58,923 $86,485 16.8431 $1,780 Totals $606,848 $0 $606,848 $360,941 $7,428 2022 Just Market Value Ad Valorem Taxes Tax Year Just MV % ∆ Assessed Value % ∆ Millage Rate Ad Valorem Taxes Non-Ad Valorem Fees Gross Taxes % ∆ 2020 $345,136 $298,302 17.5454 $6,160 $0 $6,160 2021 $455,136 31.9%$328,130 10.0%17.4386 $6,370 $0 $6,370 3.4% 2022 $606,848 33.3%$360,941 10.0%16.8431 $7,428 $0 $7,428 16.6% File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 7 LAND USE AND ZONING ZONING MAP The subject’s approximate location is indicated by a red star on the map above. LAND USE/ZONING REQUIREMENTS Zoning Jurisdiction City of Atlantic Beach Future Land Use District Residential - High Density (up to 20 units/acre) Zoning District RG-M Zoning Description Residential General - Multi-Family District Intent The RG-M zoning district is intended for development of medium to high-density multi-family residential areas. Primary Permitted Uses A wide variety of single-and multi-family uses including duplexes, townhouses and group care homes Minimum Lot Requirements (Area/Width)7,500 SF/ 75 feet Maximum Lot Coverage by all Buildings 45% Minimum Yard Requirements Front 20 feet Side 5-15 Feet Rear 20 feet Maximum Height of Structures 35 feet Current Use Legally Conforming Yes (unimproved site) Zoning Change Likely No Other Land Use Regulations None known File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 8 SITE DESCRIPTION LOCATION MAPS File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 9 TAX AERIAL MAP PHYSICAL CHARACTERISTICS Location East end of Dora Sreet, directly off of Mayport Road (aka State Road A1A); site backs to Francis Avenue Gross Land Area 2.146 Acres; 93,478 SF Wetlands None known; assumed 100% usable uplands Shape Irregular; three contiguous parcels Topography Generally at road grade Frontage Located at the end (cul-de-sac) of Dora Street. Limited access from Francis Storm Water Retention Assumes on-site retention to be required for development Drainage No drainage problems were observed or disclosed during our inspection.This appraisal assumes surface water collection is adequate. Utilities All municipal services directly available Wetlands No Landscape Wooded Site Improvements None observed File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 10 FLOOD MAP FEMA DATA ENVIRONMENTAL HAZARDS An environmental assessment report was not provided for review, and during our inspection, we did not observe any obvious signs of contamination on or near the subject. However, environmental issues are beyond our scope of expertise. It is assumed that the property is not adversely affected by environmental hazards. FEMA Map Numbers 12031C0408J FEMA Map Dates 11/2/2018 Flood Zone Designation X Flood Zone The subject property is under Flood Zone X,which is an area determined to be outside the 0.2% annual chance floodplain. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 11 EASEMENTS/ENCROACHMENTS/RESTRICTIONS There appear to be no easements, encroachments, or restrictions that would adversely affect value. It is assumed that only typical utility easements exist. Our valuation assumes no adverse impacts from easements, encroachments, or restrictions and further assumes that the subject has a clear and marketable title. CONCLUSION OF SITE UTILITY Overall, the site's physical characteristics and the availability of utilities result in functional utility suitable for a variety of residential uses, including those specifically permitted by zoning. The subject site is permitted for a maximum of 20 dwelling units per acre under the RG-M zoning and High-Density Land Use. Therefore, subject’s maximum allowable density is 40 units. equates to a physical density of 19.89 units per acres, which should allow for a marketable finished product within normal market densities. We are not aware of any other restrictions on development. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 12 SUBJECT PHOTOGRAPHS Front view of subject looking north from Dora Street Photo was taken on May 3, 2023 View of subject looking northeast from Dora Street Photo was taken on May 3, 2023 View of Subject looking northwest from Dora Street Photo was taken on May 3, 2023 View of Dora Street looking west from subject site Photo was taken on May 3, 2023 View of Dora Street, Looking East Photo was taken on May 3, 2023 View of Mayport Road (aka SR A1A) from Dora Street Photo was taken on May 3, 2023 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 13 MARKET AREA ANALYSIS BOUNDARIES The subject property is located at the eastern terminus of Dora Road, east of Mayport Road within the municipal limits of Atlantic Beach. This location is approximately one-mile north of Atlantic Boulevard, in the area commonly referred to as Mayport. This area is generally delineated as follows: • North St. Johns River • South Atlantic Boulevard • East Atlantic Ocean • West Intracoastal Waterway (ICW) The subject is located at the northern end of the Beaches retail and office submarket as defined by CoStar. ACCESS AND LINKAGES North/South Routes • Mayport Road - This is a four- to six-lane minor arterial extending north from Atlantic Boulevard to the Naval Station Mayport. It is the primary north/south route serving the subject’s market area. The segment of Mayport Road from Atlantic Boulevard north to Mayport Crossing Boulevard is also known as State Road A1A. Mayport Road recently underwent a beautification project, which included installing divider medians with landscaping and trees. • State Highway A1A - This two- to four-lane minor arterial runs along the coastline of Florida, merging with Mayport Road in the subject market area. It diverges from Mayport Road near Mayport Crossing Boulevard and continues northwest, curving along the shoreline and continuing north of the St. Johns River via Heckscher Road, which is accessible to automobiles via ferry. • St. Johns River Ferry - The City of Jacksonville Port Authority assumed responsibility for the ferry service on Oct. 1, 2007. The 0.9-mile ferry transit saves motorists twenty-eight miles over a driving route that uses the Dames Point Bridge to cross the river. The current operator of the service is Hornblower Marine Services, which will continue to operate the ferry until JAXPORT locates a permanent operator through a bid process. East/West Routes • Atlantic Boulevard - A major four-lane roadway extending from Neptune Beach at State Road A1A on the east to its merger with Beach Boulevard near Downtown. Atlantic Boulevard was recently widened from four to six lanes at its span over the Intracoastal Waterway, which improved Mayport traffic to and from the Greater Arlington Planning District. Eastbound lanes of Atlantic Boulevard use a flyover to northbound lanes of Mayport Road. • Wonderwood Drive - This newly expanded roadway is a four-lane collector from Mayport Road to A1A, where it becomes a four-lane freeway as the Wonderwood Bridge from A1A west to Mount Pleasant Road on the west side of the Intracoastal Waterway. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 14 The existing and proposed roadway improvements provide excellent access within the immediate market area as well as to other regions of the Jacksonville MSA. Public transportation is provided by Jacksonville Transit Authority and provides access to the downtown area. The nearest bus station is located at Mayport Road and Wonderwood Drive. The local market perceives public transportation as average compared to other areas in the region. However, the primary mode of transportation in this area is the automobile. The Jacksonville International Airport is located about 18± miles from the property; travel time is about 40 minutes, depending on traffic conditions. The Jacksonville CBD, the economic and cultural center of the region, is approximately 14± miles from the property. SURROUNDING AREA DEMOGRAPHICS File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 15 85 Dora Street, Atlantic Beach, Florida, 32233 Prepared by Esri Radius: 5-, 10-, and 15-Minute Drive Time Radius 5 Min 10 Min 15 MinJacksonville, FL Metropolitan Statistical Area Florida 2010 Population 13,929 50,589 128,923 1,345,596 18,801,310 2020 Population 14,333 54,655 144,592 1,605,848 21,538,187 2022 Population 14,379 54,650 146,288 1,668,325 22,114,754 2027 Population 14,655 55,503 148,863 1,755,751 22,794,570 2010-2020 Annual Rate 0.29%0.78%1.15%1.78%1.37% 2020-2022 Annual Rate 0.14%0.00%0.52%1.71%1.18% 2022-2027 Annual Rate 0.38%0.31%0.35%1.03%0.61% 2022 Male Population 49.1%51.5%50.0%48.7%48.9% 2022 Female Population 50.9%48.5%50.0%51.3%51.1% 2022 Median Age 39.1 37.7 38.7 39.0 42.8 High School Graduate 22.6%17.3%17.5%22.7%24.1% Associate Degree 7.8%9.1%10.9%11.0%10.9% Bachelor's Degree 26.4%30.3%29.3%22.4%20.5% Graduate/Professional Degree 11.0%16.1%16.0%12.0%12.1% 2010 Households 5,353 20,074 50,410 524,146 7,420,802 2020 Households 6,215 22,232 58,389 628,344 8,529,067 2022 Households 6,246 22,323 59,129 653,070 8,760,977 2027 Households 6,389 22,752 60,330 687,374 9,036,611 2010-2020 Annual Rate 1.50%1.03%1.48%1.83%1.40% 2020-2022 Annual Rate 0.22%0.18%0.56%1.73%1.20% 2022-2027 Annual Rate 0.45%0.38%0.40%1.03%0.62% 2022 Average Household Size 2.27 2.31 2.41 2.50 2.47 2022 Median Household Income $67,398 $80,842 $87,248 $73,420 $65,438 2027 Median Household Income $80,973 $98,095 $103,129 $85,765 $78,674 2022-2027 Annual Rate 3.74%3.94%3.40%3.16%3.75% 2022 Average Household Income $94,301 $114,609 $120,451 $102,342 $96,086 2027 Average Household Income $111,852 $132,243 $140,451 $119,974 $113,397 2022-2027 Annual Rate 3.47%2.90%3.12%3.23%3.37% 2010 Total Housing Units 6,030 22,296 55,829 598,490 8,989,580 2010 Owner Occupied Housing Units 2,959 11,848 33,003 350,768 4,998,979 2010 Renter Occupied Housing Units 2,391 8,225 17,410 173,378 2,421,823 2010 Vacant Housing Units 677 2,222 5,419 74,344 1,568,778 2020 Total Housing Units 6,626 23,995 62,725 690,609 9,865,350 2020 Vacant Housing Units 411 1,763 4,336 62,265 1,336,283 2022 Total Housing Units 6,667 24,118 63,606 719,365 10,129,608 2022 Owner Occupied Housing Units 3,479 13,010 39,070 428,715 5,794,353 Average Home Value $353,592 $419,744 $376,526 $332,837 $344,665 2022 Renter Occupied Housing Units 2,767 9,312 20,059 224,355 2,966,624 2022 Vacant Housing Units 421 1,795 4,477 66,295 1,368,631 2027 Total Housing Units 6,880 24,804 65,504 761,980 10,483,687 2027 Owner Occupied Housing Units 3,567 13,269 40,239 457,401 6,038,076 Average Home Value $384,784 $439,664 $405,310 $377,518 $386,186 2027 Renter Occupied Housing Units 2,823 9,483 20,091 229,973 2,998,535 2027 Vacant Housing Units 491 2,052 5,174 74,606 1,447,076 Data Note: Income is expressed in current dollars Source: U.S. Esri forecasts for 2022 and 2027. Esri converted Census 2010 data into 2020 geography. Population Executive Summary Housing Average Household Income Median Household Income Population 25+ Educational Attainment Households File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 16 DEMAND GENERATORS Major employers that generate demand for the residential communities surrounding the subject includes Naval Station Mayport. Currently, Naval Station Mayport employs over 12,500 people. The Beaches area contains over 500 retail properties that further enhance demand for the subject. These include Atlantic Beach Commons, a 75,852 square foot shopping center anchored by Family Dollar, and Pan Am Plaza, a 58,000 square foot shopping center located on Mayport Road. There are also a number of shopping centers along Atlantic Boulevard, between Mayport Road and State Road A1A. The massing of these retail properties creates a significant gravitational pull that benefits the subject and supports residential development in the area. The nearest fire and police stations are within three miles of the property. The closest public schools are within five miles. Proximity to parks, open space, and other passive recreation is above average. Of special note is the proximity of Hanna Park, which is just east of the subject’s immediate area. OUTLOOK AND CONCLUSIONS The subject property is located within a well-established area in the Mayport area of Atlantic Beach. It is our opinion that the immediate subject market area will experience average development and redevelopment over the next decade with good investment opportunities and potential for property value appreciation, which will be tempered by fluctuating interest rates until the rates stabilize. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 17 MULTIFAMILY MARKET ANALYSIS All data within this section is provided by CoStar, which I reprinted with their permission. JACKSONVILLE MULTIFAMILY MARKET Supply pressure is building in Jacksonville's metro apartment market. The 12,000 units underway amount to unprecedented development, and this follows a total of 7,000apartments that have delivered over the past two years. Vacancy is also on the rise in Jacksonville, up 4.1% in the past year to 11.0% with the new units under construction set to further tax supply and demand fundamentals. Developers have been capitalizing on strong market fundamentals by pushing the pace of multifamily construction. Jacksonville’s economy has recovered and then some, and population growth (1.5% over the past 12 months) ranked as one of the fastest in the United States. That growth is making more areas viable for development, leading to soaring rents. Asking rents in Jacksonville increased by more than 20% in 2021, one of the largest increases in the nation. As of the second quarter of 2023, the only submarket in Jacksonville experiencing marked negative rent growth was Nassau County, down more than 1% year over year with very minimal declines in Southside and St. Augustine due to the impact of a recent supply wave in those areas. The fastest pace of rent growth is occurring in Central Jacksonville, and gains in Southside are far more tempered than they have been over the past year. That submarket still leads the metro in both units under construction and those delivered in the trailing 12-month period. The biggest submarket by a wide margin (Arlington is second with 20,000 fewer apartments), Southside saw asking rents accelerate close to 23% in 21Q3, although the rate of rent growth has now declined to well below the metro average. These conditions have made Jacksonville a target for capital investment like no other time since CoStar started researching the market. Sales volume over the last year has been robust, totaling $1.7 billion and reaching a record high. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 18 BEACHES MULTIFAMILY SUBMARKET The subject property is located within Jacksonville’s Beaches Multifamily submarket, as defined by CoStar. Buyers have shown interest in Beaches multifamily properties and have scooped up assets over the years. But while investors have historically been active here, deal flow has pulled back over the past 12 months. Annual sales volume has averaged $53.3 million over the past five years, and the 12-month high in investment volume hit $120 million over that stretch. In the past 12 months specifically, $36.0 million worth of assets sold. Market pricing, based on the estimated price movement of all apartment properties in the submarket, sat at $206,942/unit during the second quarter of 2023. That figure is largely unchanged since last year, and pricing is roughly in line with the metro's average. At 4.8%, the market cap rate is only a few basis points lower than last year's number, and it's close to the metro's average. The vacancy rate in the Beaches Submarket has expanded significantly over the past year, and at 16.1%, is substantially above the long-term average. About 460 units have come on-line over the past year, far outpacing the five-year average. Developers have taken a pause; nothing is currently underway. Rents have increased by 2.9% over the past year, although this still significantly trails the average annual growth of 5.5% over the past decade. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 19 HIGHEST AND BEST USE Definition The 7th Edition of The Dictionary of Real Estate Appraisal, (Chicago: Appraisal Institute, 2022), defines highest and best use as: “The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.” 1. Legal Permissibility: “a property use that is either currently allowed or most probably allowable under zoning codes, building codes, environmental regulations, and other applicable laws and regulations that govern land use.” 2. Physical Possibility: “the parcel of land must be able to accommodate the construction of any building that would be a candidate for the ideal improvement.” 3. Financial Feasibility: “the capability of a physically possible and legal use of property to produce a positive return to the land after considering risk and all costs to create and maintain the use.” 4. Maximally Productive Use: “a specific land use must yield the highest value of all the physically possible, legally permissible, and financially feasible possible uses.” These tests are performed sequentially, as it is irrelevant if a certain use is financially feasible when not physically possible or legally permissible. When identifying the highest and best use of an improved property these tests are performed first on the property under the hypothetical assumption it is vacant. If the highest and best use is to improve the property, then the ideal improvement is determined using these same four criteria. Then, the subject improvements are compared to the ideal improvement. A determination is then made on whether to maintain the existing improvement in its existing use or modify the improvement to conform more to the ideal. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 20 HIGHEST AND BEST USE “AS IF VACANT” LEGALLY PERMISSIBLE The site is zoned RG-M, with a future land use of Residential - High Density. To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Given the subject’s zoning, land use, and prevailing land use patterns in the area, only residential development (to a maximum density of 20 units per acre) is given further consideration in determining the highest and best use of the site as vacant. PHYSICALLY POSSIBLE The physically possible uses for the subject are limited to the legally permissible uses current zoning and land use of the site mandates. The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the site's physical characteristics and the availability of utilities result in functional utility suitable for any of the legally permitted uses. FINANCIALLY FEASIBLE Financially feasible uses for the subject parcels are governed by legally permissible uses and the physically possible uses for that site. The influence of the surrounding market area considering commercial, industrial, and residential uses and the economic growth within the market area and its effect on the subject must be considered. The primary determinant of financial feasibility is if a specific use is likely to produce a greater income level than the combined need to satisfy operating expenses, financial expenses, and capital amortization. Given the subject properties characteristics, only high-density residential uses (to a maximum density of 20 units per acre) are considered to be financially feasible. MAXIMALLY PRODUCTIVE Maximally productive uses are governed by the subject's legally permissible, physically possible, and financially feasible uses. The final criterion addresses the question of maximum productivity of the subject development. That would require consideration of alternate potential uses. There appears to be no reasonably probable use of the site that would generate a higher residual land value than residential use at a maximum density of 20 units per acre. Accordingly, it is our opinion that multi-family residential use, developed to the normal market density level permitted by zoning, is the maximally productive use of the property. MOST PROBABLE BUYER/USER Considering the site's functional utility and area development trends, the most probable buyer is a residential developer. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 21 VALUATION METHODOLOGY Three basic approaches may be applicable and utilized, then reconciled to arrive at an estimate of market value. An approach to value is included or eliminated based on its applicability to the property type being value and the information available. The reliability of each approach depends on the availability and comparability of market data and the motivation and thinking of purchasers. Applicable approaches and whether they were utilized are summarized below: The Cost Approach is based upon the principle of substitution, which states a prudent purchaser would not pay more for a property than the amount required to purchase a similar site and construct similar improvements without undue delay, producing property of equal desirability and utility. This approach is particularly applicable when the appraised improvements are relatively new or proposed or when the improvements are so specialized, there is little or no sales data from comparable properties. The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. A gross income multiplier and / or effective gross income multiplier may also be analyzed. By process of correlation and analysis, a final indicated value is derived. In the Income Capitalization Approach, the property's income-producing capacity is estimated using contract rents on existing leases and by estimating market rent from the rental activity at competing properties for the vacant space. Deductions are then made for vacancy and collection loss, and operating expenses. The resulting net operating income is divided by an overall capitalization rate to derive an opinion of value for the subject property. The capitalization rate represents the relationship between net operating income and value. This method is referred to as Direct Capitalization. The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others. The subject property is vacant residential land. The Sales Comparison Approach is the only applicable approach to value. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 22 LAND VALUATION The subject’s land value was developed via the sales comparison approach, our value opinion is considered an “as is” market value. The sales comparison approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. This approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived. We researched numerous comparable land sales for this analysis, which are documented on the following pages, including a location map and analysis grid. All sales were researched through numerous sources and, when possible, verified by a party to the transaction. LAND SALES SUMMARY No.Identification Sale Date Sale Price Land Size (Acres) Land Size (SF) Proposed Units Density (Units/Acre) Price Per Unit Price Per Acre 1 1609 Bridgeton Drive 08/12/21 $2,000,000 1.08 47,248 27 24.89 $74,074 $1,843,888 2 11391 Square Street 04/12/22 $8,520,000 5.73 249,599 192 33.51 $44,375 $1,486,910 3 Burbank Avenue 05/13/22 $22,000,000 16.29 709,592 396 24.31 $55,556 $1,350,523 4 1200 Preservation Trail 05/18/22 $9,500,000 6.69 291,416 178 26.61 $53,371 $1,420,032 5 Peyton Parkway 07/15/22 $17,600,000 16.56 721,354 280 16.91 $62,857 $1,062,801 9.27 403,842 215 25.24 $58,047 $1,432,831 2.011 87,599 40 19.89 Averages/Totals Subject Property File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 23 Land Sale No. 1 Property Identification Record ID 7979 Property Type Vacant Residential, Townhouse site Address 1609 Bridgeton Drive, Jacksonville, Duval County, Florida 32207 Location Southwest corner of Atlantic Boulevard & Arcadia Place Tax ID 081662-0010 Sale Data Grantor East San Marco, LLC Grantee Toll Southeast, LLP Sale Date August 12, 2021 Deed Book/Page 19862/2141 Property Rights Fee Simple Marketing Time Off Market Conditions of Sale Arm's Length Verification Burr & Forman, LLP; 904-232-7233, November 27, 2021; Other sources: CoStar, Public Records, Confirmed by Logan Jones Sale Price $2,000,000 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 24 Land Sale No. 1 (Cont.) Land Data Zoning PUD (2019-0799-E), Planned Unit Development Topography Level Utilities Public Shape Irregular Land Size Information Gross Land Size 1.085 Acres or 47,248 SF Uplands Land Size 1.085 Acres or 47,248 SF, 100% Proposed Units 27 Front Footage 150 ft Atlantic Boulevard; 280 ft Arcadia Place; Indicators Sale Price/Gross Acre $1,843,888 Sale Price/Gross SF $42.33 Sale Price/Uplands Acre $1,843,888 Sale Price/Uplands SF $42.33 Sale Price/ Unit $74,074 Remarks This property is part of the 4.33-acre PUD (Ordinance 2019-0799) that allows mixed-use development. On the day of sale, this vacant land parcel allowed and purchased for construction of 27 townhomes. The parcel was 100% entitled at the time of sale. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 25 Land Sale No. 2 Property Identification Record ID 8197 Property Type Residential, Multi-family Site Property Name Olea - eTown Address 11391 Square Street, Jacksonville, Duval County, Florida 32256 Location Northeast corner of Exchange Street & Bold City Street east of SR 9B and south of Etown Parkway Tax ID 167872-0435 Sale Data Grantor Eastland Timber, LLC Grantee CRP/RW Olea South Jacksonville Owner, LLC Sale Date April 12, 2022 Deed Book/Page 20221/2487 Property Rights Fee Simple Conditions of Sale Arm's length Financing Cash to sellers Verification Libby Malloy; 203-218-9183, Purchase Agreement, Other sources: Appraisal, Confirmed by J. Mark Williams, MAI File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 26 Land Sale No. 2 (Cont.) Sale Price $8,520,000 Land Data Zoning PUD Ordinance Number 2018-564-E, Planned Special Development Topography Level Utilities Public Shape Irregular Landscaping Cleared & ready for development Land Size Information Gross Land Size 5.730 Acres or 249,599 SF Uplands Land Size 5.730 Acres or 249,599 SF, 100% Planned Units 192 Indicators Sale Price/Gross Acre $1,486,911 Sale Price/Gross SF $34.13 Sale Price/Uplands Acre $1,486,910 Sale Price/Uplands SF $34.13 Sale Price/Planned Unit $44,375 Remarks This is the sale of a full entitled 192-unit apartment site, which was negotiated and contracted in October 2021. This site was cleared and graded with off-site retention area. The buyer, RangeWater Development, purchased this site to develop Olea at eTown, which will have clubhouse, dog wash area, mailbox cabana, and three garages with a total of 22 spaces. This is RangeWater’s third Olea location in Florida; the first two were in Nocatee (Ponte Vedra Beach) and Melbourne. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 27 Land Sale No. 3 Property Identification Record ID 8222 Property Type Vacant Residential, Multi-family Site Property Name Bainbridge @ Nocatee Address Burbank Avenue, Ponte Vedra Beach, Duval County, Florida 32081 Location At the end of Burbank Avenue within the southwest quadrant of Burbank Avenue and Nocatee Pkwy Tax ID 168149-1120 Sale Data Grantor Sonoc Company, LLC Grantee Ponte Vedra Owner, LLC Sale Date May 13, 2022 Deed Book/Page 20288/2006 Property Rights Fee Simple Conditions of Sale Arm's-length Financing Cash to seller Verification Other sources: Public records, site plan, survey, news article, Confirmed by Bolina Kol Sale Price $22,000,000 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 28 Land Sale No. 3 (Cont.) Land Data Zoning PUD (Ordinance Number 2001-16-E) Topography Level Utilities Public Shape Irregular Landscaping Wooded Land Size Information Gross Land Size 16.290 Acres or 709,592 SF Uplands Land Size 16.290 Acres or 709,592 SF, 100% Allowable Units 396 Indicators Sale Price/Gross Acre $1,350,522 Sale Price/Gross SF $31.00 Sale Price/Uplands Acre $1,350,523 Sale Price/Uplands SF $31.00 Sale Price/Allowable Unit $55,556 Remarks This site was purchased by Bainbridge Companies for 396-unit apartment. It plans to break ground in October 2022 and will be known as Bainbridge @ Nocatee, which will feature spacious 1-, 2- and 3-bedroom apartment homes. This community is anticipated to open late 2023. According to the site plan & Assignment of Development Rights, this site has access to off-site retention and 100% upland with full entitlement for 396 apartment units. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 29 Land Sale No. 4 Property Identification Record ID 8221 Property Type Vacant Residential, Multi-family Site Property Name Auterra at Nocatee Address 1200 Preservation Trail, Ponte Vedra Beach, Duval County, Florida 32081 Location Northeast corner of Preservation Trail and Crosstown Drive Tax ID 168149-1330 Sale Data Grantor Sonoc Company, LLC Grantee Crosstown Properties I, LLC Sale Date May 18, 2022 Deed Book/Page 20289/2188 Property Rights Fee Simple Conditions of Sale Arm's-length Financing Cash to seller File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 30 Land Sale No. 4 (Cont.) Verification Other sources: Public records & news article, Confirmed by Bolina Kol Sale Price $9,500,000 Land Data Zoning PUD (Ordinance Number 2001-16-E) Topography Level Utilities Public Shape Irregular Landscaping Wooded Land Size Information Gross Land Size 6.690 Acres or 291,416 SF Uplands Land Size 6.690 Acres or 291,416 SF, 100.00% Allowable Units 178 Indicators Sale Price/Gross Acre $1,420,030 Sale Price/Gross SF $32.60 Sale Price/Uplands Acre $1,420,032 Sale Price/Uplands SF $32.60 Sale Price/Allowable Unit $53,371 Remarks This site was purchased by RISE (Crosstown Properties I, LLC) to develop 178- unit (55+ active adult community) apartment. RISE Real Estate Company is set to break ground on a new age-targeted multifamily community with an opening scheduled for late 2023. One- bedroom, two-bedroom, and three-bedroom apartment homes will be available for rent and will include inspired features and amenities: dog park, a clubhouse and a pool with courtyard. RISE has been one of the more active multifamily developers on the First Coast, with projects in downtown Jacksonville, Mandarin and the growing Race Track Road corridor near the border of Duval and St. Johns counties. The company last year moved its headquarters to Jacksonville. According to the site plan & Assignment of Development Rights (OR Book 20289, Page 2202), this site has access to off-site retention and 100% upland with full entitlement for 178 apartment units. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 31 Land Sale No. 5 Property Identification Record ID 8346 Property Type Vacant Commercial, Apartment Complex Property Name Durbin Park West Site Address Peyton Parkway, St. Johns, St. Johns County, Florida 32259 Location Located on the south side of Peyton Parkway, east of State Road 9B Tax ID 023540 0006 Sale Data Grantor Durbin Creek National, LLC Grantee DHIC-Durbin Park, LLC Sale Date July 15, 2022 Deed Book/Page 5599/515 Property Rights Fee Simple Conditions of Sale Arm's length Financing Cash to seller Verification November 01, 2022; Other sources: Plans, Confirmed by Ben Ford Sale Price $17,600,000 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 32 Land Sale No. 5 (Cont.) Land Data Zoning PUD, Planned Unit Development Topography Level Utilities All available Shape Irregular Landscaping Wooded Flood Info Flood Zone X Land Size Information Gross Land Size 16.560 Acres or 721,354 SF Usable Land Size 16.560 Acres or 721,354 SF, 100.00% Planned Units 280 Indicators Sale Price/Gross Acre $1,062,802 Sale Price/Gross SF $24.40 Sale Price/Usable Acre $1,062,801 Sale Price/Usable SF $24.40 Sale Price/Planned Unit $62,857 Remarks This is the sale of an apartment complex site within the Durbin development in north St. Johns County. The property sold to DHI, an apartment developer owned by DR Horton, for $62,857 per planned unit. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 33 ANALYSIS OF LAND SALES The adjustment process is typically applied through either quantitative or qualitative analysis or a combination of the two. Quantitative adjustments are often developed as dollar or percentage amounts and are most credible when there is enough data to perform a paired sales or statistical analysis. Qualitative adjustments are based on qualitative judgment rather than empirical data when there is insufficient data to develop a sound quantified estimate within a reasonable degree of confidence. For this analysis, we used both quantitative and qualitative adjustments. Qualitative adjustments are based on a scale calibrated in 5% increments, with a minor adjustment considered 5% and increasing upward with a more perceived difference between a comparable property and the subject. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative inferiority; if the comparable is inferior, its price is adjusted upward. The transactional elements of comparison are: PROPERTY RIGHTS This adjustment is generally applied to reflect the transfer of property rights different from those being appraised, such as differences between properties ground-leased at market rent and those sold fee simple. An adjustment for this is not considered necessary due to all property rights being Fee Simple, which is equal to the subject. No adjustment is warranted. FINANCING This adjustment is generally applied to a property that transfers with atypical financing, such as having assumed an existing mortgage at a favorable interest rate. Conversely, a property may be encumbered with an above-market mortgage with no prepayment clause or a very costly prepayment clause. Such atypical financing often plays a role in the negotiated sale price. No atypical financing was reported. No adjustments are warranted for financing terms. CONDITIONS OF SALE This adjustment category reflects the extraordinary motivations of the buyer or seller to complete the sale. Examples include purchase for assemblage involving anticipated incremental value or a quick sale for cash. This adjustment category may also reflect a distress-related sale or a corporation recording at a non-market price. The sales were all reportedly arm’s length and did not require adjustment. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 34 MARKET CONDITIONS Real estate values normally change over time. The rate of change fluctuates due to investors’ perceptions of prevailing market conditions. This adjustment category reflects value changes, if any, which occurred between the date of the sale and the effective date of the appraisal. Jacksonville market conditions within the subject’s market and submarket have been improving since the earliest sale used in this analysis, and a 6.00% upward annual adjustment was made to account for this trend through June 30, 2022, when interest rates started to increase. Beginning July 1, 2022, our adjustment reflects a 0.00% annual adjustment through the effective date of value for the subject. The reduction in market conditions also considers the sharp reduction in transactional data since the beginning of the interest rate increases. Market Condition adjustments are applied after the previous adjustments but before any of the following adjustments. LOCATION/ACCESS Property location greatly affects its value. This adjustment category considers general market area influences and a property’s accessibility and visibility from a main thoroughfare. Differing rent levels or land values are typically good indications that a location adjustment is required. In determining location adjustments, I considered the demographics surrounding the sale site when compared to the subject. I also considered site access and traffic exposure and proximity to supporting uses. Although based on data, the location and access adjustments applied are somewhat qualitative. ZONING This adjustment considers the differences in zoning and the intensities they allow. All of the comparable sales had similar zoning which allowed for high density residential uses. No adjustments are warranted for zoning. NUMBER OF PROPOSED UNITS This adjustment considers economies of scale. Typically, an investor would pay less for a higher number of units and more (per unit) for a lower number of units. Our adjustment is made at the rate of one percent per 25 proposed unit compared to the subject. RETENTION This adjustment category considers the regulatory characteristic of stormwater retention. Sites benefitting from off-site retention have higher utility. Those sites that require on-site retention have lower utility. Our adjustment considers the land size required to construct on-site retention as well as construction costs for the pond. The subject will likely need on-site retention. Sales benefitting from off-site retention are adjusted downward. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 35 DENSITY Density (units per acre) affects the price per unit in that sales with a higher density are often priced below sites with higher density. This adjustment is the inverse when analyzing sales on a price per acre basis. Our adjustment is made at the rate of one percent per unit of difference in density than the subject. A Land Sales Adjustment Grid showing all adjustments relating the comparable sales to the subject and the adjusted price ranges and Summary Indicators are shown following. LAND SALE ADJUSTMENT GRID Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 4 Date of Value & Sale 5/3/2023 8/12/2021 4/12/2022 5/13/2022 5/18/2022 7/15/2022 Unadjusted Sale Price $2,000,000 $8,520,000 $22,000,000 $9,500,000 $17,600,000 Proposed Units 40 27 192 396 178 280 Usable Acres 2.011 1.08 5.73 16.29 6.69 16.56 Density (Units/Acre)19.89 24.89 33.51 24.31 26.61 16.91 Unadjusted Sale Price per Usable Acre $1,843,888 $1,486,910 $1,350,523 $1,420,032 $1,062,801 Unadjusted Sale Price per Unit $74,074 $44,375 $55,556 $53,371 $62,857 Transactional Adjustments Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment 0.00%0.00%0.00%0.00%0.00% Adjusted Price $74,074 $44,375 $55,556 $53,371 $62,857 Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller Cash to seller Adjustment 0.00%0.00%0.00%0.00%0.00% Adjusted Price $74,074 $44,375 $55,556 $53,371 $62,857 Conditions of Sale Arm's Length Arm's Length Arm's Length Arm's Length Arm's Length Adjustment 0.00%0.00%0.00%0.00%0.00% Adjusted Price $74,074 $44,375 $55,556 $53,371 $62,857 Market Condition (Annual Rate)Inferior Inferior Inferior Inferior Similar Value Growth/Decline through 6/30/2022 6.00% Value Growth/Decline after 7/1/2022 0.00% Adjustment 5.29%1.30%0.79%0.71%0.00% Adjusted Price per Unit $77,995 $44,951 $55,994 $53,748 $62,857 Property Adjustments Location/Access/Exposure Atlantic Beach San Marco E-Town Nocatee Nocatee Durbin Compared to the Subject Superior Inferior Similar Similar Similar Adjustment -15.00%15.00%0.00%0.00%0.00% Zoning RG-M PUD PUD PUD PUD PUD Compared to the Subject Similar Similar Similar Superior Superior Adjustment 0.00%0.00%0.00%0.00%0.00% Number of Proposed Units 40 27 192 396 178 280 Compared to the Subject Fewer More More More More Adjustment -0.52%6.08%14.24%5.52%9.60% Retention On-Site Off-Site Off-Site Off-Site Off-Site On-Site Compared to the Subject Superior Superior Superior Superior Similar Adjustment -15.00%-15.00%-15.00%-15.00%0.00% Density (Units per Acre)19.89 24.89 33.51 24.31 26.61 16.91 Compared to the Subject More Dense More Dense More Dense More Dense Less Dense Adjustment 10.00%27.23%8.84%13.43%-5.96% Net Property Adjustment -20.52%33.31%8.08%3.95%3.64% Adjusted Sale Price per Usable Acre $61,993 $59,927 $60,517 $55,872 $65,142 Summary Indicators Average Median Comparables - Unadjusted $44,375 $74,074 $56,844 $54,463 Comparables - Adjusted $55,872 $61,993 $59,577 $60,222 Range File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 36 RECONCILED LAND VALUE All Sales occurred from August 2021 through July 2022. Once adjustments for various property characteristics were made, we concluded a range of adjusted values from roughly $56,000 to $$62,000 per allowable/planned residential unit. Based on the overall characteristics of the subject property and the comparable sales, we reconciled to: As seen in the chart above, our reconciled unit value for the subject of $60,000 equates to approximately $1.2 Million per gross acres which is within the range of the comparable sales on a per acre basis. 40 Units x $60,000 Per Unit $2,400,000 Rounded $2,400,000 $2,400,000 ÷ 2.011 Acres =$1,193,436/Acre Equated Price per Usable Acre File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 37 EXPOSURE TIME Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Based on our review of recent sales transactions for similar properties and our analysis of supply and demand in the local shopping center market, it is our opinion that the probable exposure time for the subject at the concluded market value stated previously is 6-12 months. MARKETING TIME Marketing time estimates the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. As we foresee no significant changes in market conditions in the near term, it is our opinion that a reasonable marketing period for the subject is likely to be the same as the exposure time. Accordingly, we estimate the subject’s marketing period at 6-12 months. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 38 ASSUMPTIONS & LIMITING CONDITIONS This appraisal is subject to the following limiting conditions: 1. The effective date is May 3, 2023. The appraisers assume no responsibility for economic or physical factors occurring at some later date, which may affect the opinions stated herein. 2. The legal description is assumed correct. No responsibility for legal matters is assumed, although such matters may be discussed in the report. No opinion is rendered as to the title, which is assumed marketable and free and clear of all liens, encumbrances, easements, encroachments, and restrictions, except as herein described. The property was appraised under the assumption that it is under responsible ownership and competent management and available for its highest and best use. 3. Certain information in this report was furnished from sources believed reliable; however, such information is not guaranteed as to its accuracy, although it has been checked insofar as possible and is believed correct. 4. No encroachments are assumed to exist unless specifically mentioned in the report. 5. No engineering test boring was made to determine soil-bearing qualities. The soil of the area under appraisement appears firm and solid unless otherwise stated. Subsidence in the area is unknown or uncommon, but the appraisers do not warrant against this condition or occurrence. 6. In this assignment, the existence of toxic waste, including without limitation cyclodienes, petroleum leakage, or agricultural chemicals that may or may not be present, was not observed by, nor do the appraisers know the existence of any such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The existence of potentially hazardous waste materials may affect the value of the property. 7. Subsurface oil, gas, or mineral rights were not considered in this report unless otherwise stated. 8. The appraisers, by reason of this report, are not required to give testimony in court concerning the property herein appraised, nor are the appraisers obligated to appear before any governmental body, board, agent, or representative for investigation questioning, depositions, conferences, or hearings unless specific arrangements have been previously made therefore concerning time and fees. 9. Any drawings, maps, or exhibits included in this report are for illustration only to visualize the property and its surroundings and may not be relied upon for any other purpose. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 39 10. A member of The Appraisal Institute signed this report. The Bylaws and Regulations of the Institute require each member to control each appraisal report's use and distribution signed by such members. Therefore, no out-of-context quoting or partial reprinting of this report is authorized. Further, neither all nor any part of this appraisal report shall be disseminated to the general public by using media for public communication without the prior written consent of the signatory of this appraisal report. The Bylaws and Regulations of the Institute also provide for review of appraisal reports by its duly authorized representatives in certain cases. No change of any item in the appraisal report shall be made by anyone other than the appraisers, and the appraisers shall have no responsibility for any such unauthorized change. 11. This appraisal is conditioned upon there being no hidden or unapparent conditions of the property, subsoil, or any termite and/or other insect infestations or damages that were not visible to the appraisers during the inspection had such been observed, would be discussed herein. 12. The Highest and Best Use Analysis of the subject and the valuation estimate of the analysis and report are subject to the continuing land uses identified herein being continued according to the Duval County Comprehensive Plan. 14. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws and that all zoning and use regulations and restrictions of all types have been complied with (unless non-compliance is stated, defined, and considered in the appraisal report). It is further assumed that all licenses, consents, permits, or legislative or administrative authority required by any local, state, federal, and/or private entity or organization have been or can be obtained or renewed for any use considered in the value estimates. 15. No claim is intended to be expressed for matters of expertise that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, environmental, pest control, mechanical, etc. 16. This appraisal was prepared for the sole and exclusive use of the client for the function outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the appraisal's contents without the express written consent of Moody Williams Appraisal Group, LLC and the client. The client shall not include partners, affiliates, or relatives of the party addressed herein. The appraisers assume no obligation, liability, or accountability to any third party. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 40 17. The distribution of this report is at the sole discretion of the client. However, no third- parties that are not listed as an intended user on the face of the appraisal or the engagement letter may rely upon the appraisal's contents. In no event shall the client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client. 18. This appraisal shall be used only for the function outlined herein unless expressly authorized by Moody Williams Appraisal Group, LLC. 19. Unless otherwise noted in this report's body, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed, nor have we contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraisers are not surveyors, they make no guarantees, express or implied, regarding this determination. 20. Our inspection included an observation of the land thereon only. It was not possible to observe conditions beneath the soil. 21. This appraisal applies to the land only. The value of subsurface rights (minerals, gas, and oil) was not considered in this appraisal unless stated explicitly to the contrary. 22. No changes in any federal, state, or local laws, regulations, or codes (including, without limitation, the Internal Revenue Code) are anticipated unless stated explicitly to the contrary. 23. The data gathered in the course of this assignment shall remain the property of the Appraisers. The Appraisers are authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraisers to comply with the Bylaws and Regulations of such Institute now or hereafter in effect. 24. Acceptance and/or use of this appraisal report constitutes acceptance of these general assumptions and limiting conditions. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 41 CERTIFICATION – MICHAEL HOTALING, MAI I certify that to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions of this review report are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I have performed no previous appraisal service, review service, and no other services in any capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Neither my engagement to make this appraisal review (or any future appraisals or reviews for this client) nor any compensation, therefore, are contingent upon the reporting of a predetermined conclusion or direction in conclusion that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined conclusion that favors the cause of the client, the attainment of a stipulated result, or the occurrence of any subsequent event directly related to the intended use of this appraisal review. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 9. I made a personal inspection of the subject property of this report on May 3, 2023. 10. Ronald K. Moody, MAI, SRA and John Timlin (Trainee Appraiser) provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 42 12. As of the date of this report, Michael Hotaling, MAI completed the continuing education program for Designated Members of the Appraisal Institute. Michael Hotaling, MAI Managing Partner State-Certified General Real Estate Appraiser RZ3226 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 43 CERTIFICATION - RONALD K. MOODY, MAI, SRA I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I 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. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of any subsequent event directly related to the intended use of this appraisal. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 9. I made a personal inspection of the property that is the subject of this report on May 3, 2023. 10. Michael Hotaling, MAI, and John Timlin (Trainee Appraiser) provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 44 12. As of the date of this report, Ronald K. Moody, MAI, SRA, completed the continuing education program for Designated Members of the Appraisal Institute. 13. I, the supervisory appraiser of the registered appraiser trainee who contributed to the development or communication of this appraisal, hereby accepts full and complete responsibility for any work performed by the registered appraiser trainee named in this report as if it were my own work. Ronald K. Moody, MAI, SRA Founding Partner State-Certified General Real Estate Appraiser RZ864 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 45 CERTIFICATION – JOHN TIMLIN I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. I 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. 5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of any subsequent event directly related to the intended use of this appraisal. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. 9. I made a personal inspection of the subject property of this report on May 3, 2023 10. Michael Hotaling, MAI and Ronald K. Moody, MAI, SRA provided significant real property appraisal assistance to the person signing this certification. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 46 John Timlin Trainee Appraiser State-Registered Trainee Appraiser RI25435 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 47 QUALIFICATIONS OF MICHAEL HOTALING, MAI Managing Partner Moody Williams Appraisal Group, LLC. Prior to entering the appraisal field, Michael Hotaling, MAI spent 20 years in the automotive industry at both the dealership and auto auction positions and now specializes in dealership valuations with over 100 dealerships appraised. Experience • Moody Williams Appraisal Group, Senior Appraiser (2020-Present) • Moody Appraisal Group, Senior Appraiser (December 2018-2019) • JLL Valuation & Advisory – Senior Analyst (May 2017- October 2018) • IRR-Jacksonville, formerly Crenshaw Williams Appraisal Company- Senior Analyst (August 2005 – May 2017) • IRR-Orlando, Researcher (June 2005 – August 2005) Completed appraisal assignments in Florida, Georgia, South Carolina, North Carolina, Virginia, Maryland, and the District of Columbia including Multi-family development, condominiums, residential subdivisions, downtown and suburban office buildings, general and medical offices, mixed-use developments, shopping centers, and free-standing retail properties, all types of vacant land including islands and special use properties such as churches, funeral homes, and child care centers. Assignments in the Jacksonville Metropolitan area (Duval County) also include the surrounding counties of Clay, Nassau, St Johns, Baker, Flagler, and Putnam. State Certifications State of Florida State-Certified General Real Estate Appraiser RZ3226 State of Georgia State-Certified General Real Property Appraiser 334632 Education Bachelor of Science Business Administration & Finance University of Central Florida Contact Details Moody Williams Appraisal Group, LLC 1300 Riverplace Blvd, Ste 640 Jacksonville, FL 32207 Phone: 904-516-8900 Cell: 386-295-0295 Email: mhotaling@moodywilliams.com File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 48 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 49 QUALIFICATIONS OF RONALD K. MOODY, MAI, SRA Founding Partner Moody Williams Appraisal Group Appraisal Institute & Related Courses A.I. – The Tough One: Mixed-Use Properties (2017) A.I. – 2-4 Unit Small Residential Income Property appraisals (2017) A.I. – Online Cool Tools: New Technology for Real Estate Appraisers (2017) A.I. – Overview of Real Estate Appraisal Principles (2017) A.I.– Online Rates and Ratios: Making Sense of GIMs, OARs, and DCF (2017) A.I. – Eminent Domain and Condemnation (2017) A.I. – Online Business Practices and Ethics (2017) A.I. – 7-hour USPAP Update Course (2018, 2020) McKissock – Florida Appraisal Laws and Regulations (2018) McKissock – That’s A Violation (2018) McKissock – Introduction to Commercial Appraisal Review (2020) McKissock - The Basics of Expert Witness for Commercial Appraisers (2020) CLE Int’l- Florida Eminent Domain (2021) McKissock – Residential Property Inspections: An Appraisers Perspective (2022) McKissock – Supervisor – Trainee Course for Florida (2022) A.I. – Florida Appraisal Law & USPAP Update (2022) A.I. Business Practices & Ethics (2022) McKissock - Journey from Analysis to Adjusting (2022) Attended numerous other courses and seminars sponsored by the Appraisal Institute, area Board of Realtors, and the National Assn of Industrial & Office Properties (NAIOP) Court Experience Qualified Expert Witness for Circuit and State Courts in State of Florida. Served as Special Magistrate-Tax Adjustment Board for Duval County Experience • Moody Williams Appraisal Group, CEO (2020 – Present) State Certifications: Florida State-Certified General Real Estate Appraiser RZ864 MAI - Appraisal Institute, Certificate 6469 Registered Real Estate Broker State of Florida BK231399 SRPA Member, Society of Real Estate Appraisers, Cert 902304 SRA Member, A.I. Cert 1088 Education: BBA Degree, Major: Land Economics; University of North Florida, Graduated 1974 Other Acknowledgements: Past Chairman, Downtown Investment Authority (DIA), 2020/2021 Contact Details: Moody Williams Appraisal Group, LLC 1300 Riverplace Blvd, Ste 640 Jacksonville, FL 32207 Phone: 904-516-8900 Cell: 904-612-6187 Email: rmoody@moodywilliams.com File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 50 • Moody Appraisal Group, President (2015-2019) • Valbridge Property Advisors, Sr. Managing Director (2013-2014) • Broom, Moody, Johnson & Grainger, CEO (1982- 2013) Appraisal/valuation and consulting assignments in Florida include: downtown & suburban office buildings, shopping centers, restaurants (sit down & fast food), all types of net lease facilities, retail buildings including big box stores, apartments, service stations & convenience stores, hotels/motels, storage & distribution warehouses, manufacturing facilities, golf courses, assisted & independent living facilities, residential subdivisions, residential & commercial condominium projects, special purpose properties, churches, hospitals & nursing homes, residential, commercial, & industrial land, and extensive eminent domain/condemnation appraisals. File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 51 QUALIFICATIONS OF JOHN TIMLIN State-Registered Trainee Real Estate Appraiser Moody Williams Appraisal Group, LLC. Appraisal Experience Commercial Trainee Appraiser Moody Williams Appraisal Group (July 2021-Present) Appraisals of various types of properties in Florida include: • Downtown and Suburban office buildings and condominiums • Shopping centers • Student-oriented housing • Hotels/motels • Vacant land Assignments have been concentrated in the Jacksonville Metropolitan area (Duval County) and surrounding Clay, Nassau, St. Johns, Baker, Flagler, and Putnam counties. State Certifications State of Florida State Registered Trainee Real Estate Appraiser RI25435 Education Bachelor of Finance University of Central Florida Contact Details Moody Williams Appraisal Group, LLC 1300 Riverplace Blvd, Ste 640 Jacksonville, FL 32207 Phone: 386-986-0305 jtimlin@moodywilliams.com File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 52 File No. 2023-1163 Moody Williams Appraisal Group, LLC Page No. 53 ENGAGEMENT LETTER