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HomeMy WebLinkAboutItem 19 Purchase of Gettings Studio Property located at 275 North Lakeshore Drive ocoee florida AGENDA ITEM COVER SHEET Meeting Date: March 5, 2019 Item # 19 Reviewed By: Contact Name: Craig Shadrix, Ass' nt Department Director: City Manager Contact Number: 1081 City Manager: /ire Subject: Purchase of Gettings Studio Property located at 275 N. Lakeshore Drive Background Summary: As part of the City's downtown master planning process, City Staff identified the Gettings Studio property (the "Property") as a potential parcel that could be used for a variety of uses to enhance the public's use and enjoyment of Starke Lake. The owner of the Property has expressed an interest in selling the Property to the City. City Staff and the owner's representatives have met and agreed on the basic terms of a transaction whereby the City would acquire the Property and the owner would remain an occupant of the building for a period of time. Under the agreement, after closing on the purchase, the City would have the right to use and develop the Property in a way that would not interfere with the owner's continued use. A summary of the terms of the transaction are set forth below. The City obtained an appraisal for the Property prepared by Property Valuation & Consulting, Inc. dated November 12, 2018 (attached). The appraisal valued the Property at $1,920,000. City Staff believes that purchasing the Property over and above the appraised value is justifiable. First, the terms of the purchase are favorable to the City. Rather than having to pay for the full purchase price at closing, the City can spread out the payments over a five (5) year period. In addition, the unique use of the building (recording studio) the value of the Property is greater as a recording studio than any other use. The owner has indicated that they have received more substantial offers from others to purchase the Property and continue the use as a recording studio. City Staff believes that due to the unique location of the Property and the importance of the Property in the redevelopment efforts along Starke Lake, losing the opportunity to purchase the Property to a use that would not enhance the redevelopment efforts along Starke Lake would be short-sighted. A summary of the proposed transaction is as follows: Seller: Glendall W. and Calliope A. Gettings Buyer: City of Ocoee, Florida Purchase Price: $2,500,000.00. $1,500,000.00 would be paid at closing and the balance of the purchase price ($1,000,000.00) would be paid in five (5) annual $200,000 payments. Continued Use: Following closing, owner would have the right to continue to use the recording studio building on the Property for a period of five (5) years rent-free. The City would immediately have the right to use and develop the Property other than the recording studio. The owner's continued use of the recording studio would be under a lease agreement with the City. Under the terms of the lease, the owner would be responsible for maintenance of the interior of the building and the HVAC units and the City would be responsible for the maintenance of the exterior of the building and the other portions of the Property. The City would also have some limited opportunities to utilize the building as long as such use did not interfere with the owner's continued use. In the event the City desired to terminate the lease and occupancy prior to the five (5) year period, the City would be able to do so with the payment of lease termination fee. In the event the owner and the City desired to extend the lease, the parties could extend the lease beyond the five (5) years with the owner's payment to the City of monthly rent. With the City Commission's approval to move forward with the transaction as outlined above, City Staff and the owner would work together to enter into an agreement memorializing the agreed-upon terms. The agreement would include an agreement to purchase the Property under threat of condemnation. Issue: Should the City Commission approve the City's purchase of the Gettings Studio property under the terms outlined above? Recommendations: City Staff recommends that the City Commission approve the City's purchase of the Gettings Studio property under the terms outlined above and authorize the Mayor to execute such agreements and documents as the City Manager and the City Attorney believe are necessary to effectuate the transaction described herein. Attachments: Appraisal Financial Impact: Not including normal and customary closing costs, the purchase of the Property will cost the City $2,500,000.00. Type of Item: (please mark with an x') Public Hearing For Clerk's Dept Use: Ordinance First Reading Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval X Discussion&Direction Original Document/Contract Attached for Execution by City Clerk Original Document/Contract Held by Department for Execution Reviewed by City Attorney Scott A. Cookson, Esq. N/A Reviewed by Finance Dept. N/A Reviewed by N/A 2 AN APPRAISAL REPORT of An Existing Recording Studio Known as Starke Lake Studios Totaling 8,207 Enclosed/Rentable Square Feet(SF) Situated on 1.52 Net Upland/Usable Acres 275 North Lakeshore Drive Ocoee, Orange County, Florida 34761 Project Name: Gettings Productions: Recording Studio PREPARED FOR Mr. Al Butler Director of Support Services City of Ocoee, FL 150 North Lakeshore Drive Ocoee, FL 34761 DATE OF VALUATION November 12, 2018 DATE OF REPORT December 4, 2018 PREPARED BY PROPERTY VALUATION & CONSULTING, INC. Blair Beasley State-Certified General Real Estate Appraiser Florida License#RZ3871 File#A18-24.OFF Copyright 2018 Property Valuation & Consulting, Inc. TABLE OF CONTENTS Nature of the Assignment 1 Purpose and Intended Use of the Report 1 Effective Date of the Appraisal 2 Effective Date of the Report 2 Inspection Date 2 Scope of Work 2 Definition of Value and Property Interest Appraised 4 Marketing and Exposure Period 5 Sales History 5 Location Description 5 Zoning 6 Site Description 6 Flood Map Information 7 Assessment/Tax Data 7 Site Improvements 10 Building Improvement 10 Age and Condition 11 Highest and Best Use as if Vacant 11 Highest and Best Use as if Improved 12 Valuation Process 12 Land Value 12 Land Sales 12 Cost Approach 15 Accrued Depreciation 17 Sales Comparison Approach 20 Reconciliation 23 Exhibits: A—Location Map and Subject Photographs B—Aerial Map,Tax Map,Floor Plans, Survey,Buildout Estimate and Building Sketches C—Identifying Legal Description D—Comparable Land Sales Location Map,Aerial Photographs, and Summary Descriptions E - Comparable Improved Sales Location Map,Photographs and Summary Descriptions F—Assumptions & Limiting Conditions,Extraordinary Assumptions & Hypothetical Conditions G—Certification H—Qualifications of Appraisers and Appraiser Licenses I—General Service Conditions and Engagement Authorization (RIMS Award) Property Valuation& Consulting, Inc. SUMMARY OF SALIENT FACTS PROPERTY Starke Lake Studios TAX PARCEL ID: 17-22-28-5468-00-051 LOCATION 275 North Lakeshore Drive, Ocoee, Orange County, FL 34761 SITE The site consists of 3.23 acres/140,595 SF gross and 1.52 acres/66,108 SF net upland/usable. The uplands are irregular in shape with 513.91 frontage feet on the south and east sides of N. Lakeshore Drive(based on a current survey that was provided). The uplands are mostly cleared, with frontage along Starke Lake, and are improved and level with N. Lakeshore Drive. The site is improved with asphalt-paved drives and parking areas, concrete wheel stops and average landscaping. IMPROVEMENTS A two-story, concrete block building (built in 1983 with some signs of deterioration on some of the wood siding) containing 8,207 SF of rentable area and 8,401 SF of gross building area currently being used as a recording studio. The rentable area is based on floor plans and survey provided by property owners. The parking ratio is 1.95 cars per 1,000 rentable square feet based on 8,207 SF of enclosed rentable building area and 16 parking spaces. ZONING/LAND USE P-S (Professional Offices and Services)/Commercial; City of Ocoee PRESENT USE Owner-occupied Recording Studio HIGHEST &BEST USE As vacant: commercial (likely office) use As improved: continued commercial use, as exists MARKETING TIME EXPOSURE PERIOD 12 to 18 months OWNER OF RECORD Glendall W. Gettings and Calliope A. Gettings PROPERTY RIGHTS Fee simple DATE OF VALUATION November 12, 2018 DATE OF REPORT December 4, 2018 Property Valuation & Consulting, Inc. SUMMARY OF SALIENT FACTS (continued) MARKET VALUE ESTIMATE As Is Value of Property Approach Weighting Value/SF Sales Comparison Approach $1,900,000 50% $231.51 Cost Approach $1,930,000 50% $235.17 Reconciliation $1,915,000 Rounded: $1,920,000 100% $233.95 Extraordinary Assumptions None Hypothetical Conditions None Property Valuation& Consulting, Inc. John A. Robinson, MAI,AI-GRS, CCIM State-Certified General Real Estate Appraiser#RZ417 I° Blair Beasley State-Certified General Real Estate Appraiser#RZ3871 Matthew C. Smith State-Registered Trainee Real Estate Appraiser#RI24544 INC. Aubree Robinson Property Valuation&Consulting State-Registered Trainee Real Estate Appraiser#RI24567 www.Prop ertyValue.com December 4, 2018 Mr. Al Butler Director of Support Services City of Ocoee 150 North Lakeshore Drive Ocoee, FL 34761 RE: An Existing Recording Studio Known as Starke Lake Studios Totaling 8,207 Enclosed/Rentable Square Feet (SF) Situated on 1.52 Net Upland/Usable Acres 275 North Lakeshore Drive, Ocoee, Orange County, Florida 34761 Project Name: Gettings Productions: Recording Studio Tax ID: 17-22-28-5468-00-051 In accordance with your request,we have completed an appraisal report(in a summary format) of the above-captioned property. The information contained in this report is based on more complete data, analyses and conclusions retained in our office files. Nature of the Assignment We have been requested by the client(City of Ocoee)to estimate the "as is" market value of the fee simple estate in the appraised property. The information contained in this report is based on more complete data, analyses and conclusions retained in our office files. The estimated marketing and exposure period for the subject is 12 to 18 months. Purpose and Intended Use of the Report In accordance with the client's request,the purpose of this appraisal is for internal decision making purposes including a potential purchase of the subject property by City of Ocoee. The intended users of this report include the City of Ocoee. It is entirely inappropriate to use this report for any purpose other than the one stated. 204 South Dillard Street,Winter Garden, Florida 34787 Phone (407) 877-0200 Fax (407) 877-8222 2 Furthermore, our appraisal services and related appraisal report have been prepared in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), as adopted by the Appraisal Standards Board under the direction of the Appraisal Foundation, as well as the Code of Professional Ethics of the Appraisal Institute, as read and interpreted within this office. Effective Date of the Appraisal The effective as is valuation date of the appraisal is November 12, 2018. Effective Date of the Report The effective date of this report is December 4, 2018. Inspection Date The property was inspected on November 12, 2018. Scope of Work This appraisal report(summary format) complies with the reporting requirements as set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice ("USPAP") for an appraisal report with adherence to the Competency Provision for the property being appraised. As such, it presents discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraisers' opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraisers' file. The depth of discussion contained in this report is specific to the client's needs and for the intended use as stated. The appraisers are not responsible for any unauthorized use of this report. To develop the as is opinion of value for the subject commercial recording studio and underlying land, the appraisers considered all three traditional approaches to value (the sales comparison, income capitalization, and cost approaches). However, only two of the three traditional approaches to value were applicable: the sales comparison and cost approaches, with the result indicating the most credible value estimate for the subject. The income approach was not used because the improvements are of a special purpose nature and comparable rental data is very limited. The sales comparison approach is considered an appropriate method in the valuation of the subject if available for sale on the open market. The sales comparison approach analyzes recent sales, contracts and/or listings of similar properties as a basis for comparison with the subject in order to determine an appropriate unit of comparison for estimating the subject's market value. The sales comparison approach was also applied to indicate the value of the underlying land to be applied in the cost approach to value. Property Valuation& Consulting, Inc. 3 In the cost approach to valuation, an estimate is made of the current replacement cost new of the proposed or existing improvements. This amount is then adjusted to reflect depreciation (if any) resulting from physical deterioration,wear and tear,and utility, on the basis of a personal inspection and comparison with component parts of similar new office buildings with specialty buildout. This analysis also recognizes factors of functional and external obsolescence, if applicable. The current land value is then added to the depreciated cost in order to determine the value of the improved property via the cost approach. Comparable data were researched by investigations of public records and discussions with local brokers and real estate professionals. The research tasks performed to estimate the value,as defined herein, involved a thorough analysis of cost new data for the subject and comparable land and improved commercial sales data in the subject's market area. In cases where comparable land and improved sales were not available in the subject's immediate market area, land and improved sales in similar areas to the subject or physically similar to the subject were used. The research tasks performed to estimate the value, as defined herein, involved the following: 1- Researching and analyzing economic data for Florida,Orange County and the City of Ocoee. Major data sources include local brokers and business articles with information pertaining to the commercial property type in Osceola, Orange, Lake and Seminole counties or the Orlando MSA. 2- Personally inspecting the subject site on November 12,2018 and taking exterior and interior photos of the subject property;reviewing the survey,floor plan and buildout cost information provided, reviewing the aerial, building sketches and legal description as well as zoning,tax and flood information from Orange County and the City of Ocoee pertaining to the subject property. 3- Researching comparable commercial specialty buildings including recording studios as well as professional office sales/contract/listing data available through various data sources such as: county records, data service providers such as CoStar, Loopnet, Microbase, and MLS, as well as data gathered in the field and calling and confirming pertinent details with the property owners, managers or brokers/real estate professionals in the subject's market area, including Orange, Lake, Seminole and Osceola counties in addition to a statewide search, due to the special purpose nature of the subject property. The data were verified, in all cases (unless specifically noted otherwise in the description of each transaction as presented in the Exhibits), with other real estate professionals and/or property owners and/or their property managers. Property Valuation& Consulting, Inc. 4 4- Researching comparable land sales/contract/listing data, based on consistent use, available through various data sources such as: county records,data service providers such as CoStar, Loopnet, Microbase, MLS, and Total Commercial, as well as data gathered in the field and calling and confirming pertinent details with the property owners, managers or brokers/real estate professionals in the subject's market area within Orange, Lake, Seminole and Osceola counties. The data were verified, in all cases (unless specifically noted otherwise in the description of each transaction as presented in the Exhibits), with other real estate professionals and/or property owners and/or their property managers. 5- Reviewing the survey and floorplans provided by the property contact as well as building sketches from the Orange County Property Appraiser for the subject, and utilizing Marshall Valuation Service to complete a thorough analysis of cost new data and applying depreciation rates to conclude an indication of value via the cost approach. 6- Analyzing the market data in relation to the subject property to derive the indications of value presented in the report, which are then reconciled to the indicated as is market value of the fee simple estate in the subject property. This appraisal report is a recapitulation of the appraisers' data,analyses and conclusions. Supporting documentation is retained in the office file. Definition of Value and Property Interest Appraised The value result reported herein reflects the as is market value of the fee simple estate in the subject property. Market Value can be defined as the most probable price 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 best interests; (3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and Property Valuation& Consulting, Inc. 5 (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. * *12 CFR 34 42(a)Financial Institutions Reform,Recovery,and Enforcement Act of 1989("FIRREA") The land and improvements were valued as if offered in the open market for a reasonable period of time in which to find a buyer. The fee simple estate in the property has been appraised. It is assumed the property is available for development to its highest and best use, free and clear of all liens and encumbrances. Fee simple estate is defined as the absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. Marketing and Exposure Period The marketing and exposure period for the subject is estimated at 12 to 18 months or less based on the special purpose nature of the property and/or potential for conversion to alternative use, sales of similar properties, the availability of financing and discussions with local brokers. Sales History The subject property is owned by Glendall W. Gettings and Calliope A. Gettings. The current owners acquired the subject property as vacant for the recorded purchase price of$45,000.00 in June 1981. There are no other known sales and/or transactions of the subject property within the last three years. The subject property is not known to be under contract for purchase nor listed for sale on the open market at the time of this appraisal. Location Description The subject is specifically located at 275 North Lakeshore Drive, which is along the south and east sides of North Lakeshore Drive and along the northern/western shore of Starke Lake in Ocoee, Orange County. North Lakeshore Drive is an asphalt-paved, two-lane road running primarily in a north-south direction along the west side of Starke Lake,extending south from East Silver Star Road. There are two access points(ingress and egress)to the subject property from North Lakeshore Drive along the northern boundary of the site. Improvements along North Lakeshore Drive in the vicinity of the subject include concrete curbs and street lighting. The neighborhood boundaries are East Silver Star Road to the north, East Orlando Avenue connecting with White Road to the south, Maguire Road to the west, and Clarke Road to the east. Property Valuation& Consulting, Inc. 6 The immediate neighborhood is at least 95%developed with only a minimal amount of vacant land available for development. Uses surrounding the subject property include the Lakeshore Drive Mobile Home Park to the north of the subject and the City of Ocoee Municipal Complex west of the subject (the City is currently redeveloping portions of their municipal complex with a new town hall currently under construction). Other uses in the immediate area of the subject are primarily residential in nature and include Ocoee Middle School and Ocoee Elementary School to the south of the subject. Residential uses in the subject neighborhood are primarily single-family in nature and are accessed off of the arterial roads. Commercial uses in the subject neighborhood include retail, office, and industrial uses and are located along the arterial roadways. The immediate neighborhood real estate outlook is considered to be good. Zoning The subject is currently zoned P-S (Professional Offices and Services) by the City of Ocoee with a Commercial Future Land Use. According to the City of Ocoee zoning code, the areas included within the P-S district are to provide an amenable environment for the development of professional office and business services. This district is intended to apply to an area adjacent to major streets and convenient and complementary to major commercial uses. The current use as a recording studio is permitted under the current zoning and Future Land Use and is considered to be a legal, conforming use. Site Description Land Size (SF or Acres) 3.23 acres/140,595 SF gross and 1.52 acres/66,108 SF net upland/usable, based on tax records of Orange County and a survey provided by the owners. Shape Irregular Frontage 513.91' on the south and west sides of North Lakeshore Drive. Access Two access points (ingress and egress) to the subject property from North Lakeshore Drive along the northern boundary of the site. Topography The site is mostly cleared, level and developed. The property has some typical landscaping native to central Florida. The back portion of the site is fronts Starke Lake. Property Valuation& Consulting, Inc. 7 Drainage Appeared adequate on the day of inspection Utilities Public water provided by City of Ocoee Septic tanks are used for sewer Electricity provided by Duke Energy Telephone is provided by AT&T Apparent Easements, Encroachments or Restrictions No known easements (other than typical utility easements) or encroachments were noted that adversely impact value. Soil and Subsoil Conditions It is assumed that there are no hidden or unapparent conditions to the property or subsoil which would render it more or less valuable. The site is suitable for normal building loads as evidenced by the surrounding and existing improvements. Environmental None known/noted Flood Map Information According to the National Flood Insurance Program FIRM, map and panel number 12095C 0210F, dated September 25, 2009, the upland areas of the subject site are situated in Zone X, which is defined as an area determined to be an area of the 100-year floodplain. The areas of the subject site surrounding and encompassing Starke Lake are situated in Zone AE, a flood prone area. Assessment/Tax Data According to the Orange County Property Appraiser, the subject property is identified as tax parcel ID# 17-22-28-5468-00-051. The total certified market value for 2018 is $825,092, consisting of $153,388 for total land value(only$17 of which is attributed to the 1.71 acres of lake area),$643,942 for building value and $27,762 for features. Total 2018 taxes for the subject parcel are $15,565.12 with an additional $1,354.41 for non-ad valorem assessments. The 2018 taxes are being paid via a quarterly installment plan with the next payment due by end of December 2018. The 2017 taxes have been paid with no prior years' taxes delinquent. The 2018 assessment reflects a 2.6%increase for the improved parcel over the 2017 assessed value. Pertinent tax data is displayed below: Property Valuation& Consulting, Inc. 8 Historical Value and Tax Benefits U - 2018 Tax Breakdown Tax Year Values Land Building(s) Feature(s) Market Value Assessed Value 2.z _---, 2018 ©mg 51533E8 - 5543,942 - 527752 = 3825.092 -: 5825,092 .. - - 2017 ©m $153388 5637.732 - 516951 = 3808.011 :: $804,937 - 2016 ©= 3145780 - 5633,365 - 516551 = 3799.014 — 5731397 . FTS 2015 ®m 3795451 5664,906 Tax Year Benefits Tax Savings G 2018 n 50 2017 Eg n 537 2016 ®n S739 2015 ©1$I 51,439 2018 Taxable Value and Certified Taxes iJ TAX YEAR 12018 • 2017 • 2016 • 2015 Taxing Authority Assd Value Exemption Tax Value ',tillage Rate Taxes 96 Pub[:Schcols:Ey Sate Lev,;4le; 5525:52 30 5525.092 1'81[ -:. 53,342.45 23 Public Schools By Local Board 5825092 50 5625.092 32480 muga; 52,679.90 17% Orange County(Ge-oral) 5828 052 30 5825 092 44347 q7.cc,.. 53,659.04 24% Ory Of Ocoee 5825092 50 5825.092 6.5000 1;:s 55,363.10 34% Library-Operating Budget 5825 C92 50 5825..092 03748 :c 5309.24 2% St Johns Water Management District 5625092 50 3825,092 02562 sass.; 521139 1% 18.8647 515,565.12 2018 Non-Ad Valorem Assessments Levying Authority Assessment Description Units Rate Assessment O Y OF 000E OCOEE RES-CAABAOE-1407)5H-317C LCC 5252.02 5252.00 CITY OF OCOEE OCOEE STORM-DRAINAGE-(407)905-3170 - 83219 51.00 5832.19 cTY OF OCOES OCOEE FRE RSC-Iv:4-(467:925-3174 27022 51.00 5270.22 51354.41 2018 Gross Tax Total: $16,919.53 r(I 2018 Tax Savings Tax Savings Your property taxes withc,.t exemptions would be: 515.565.12 Your ad-valorem property tax Hitt exemptions is: - 315.56512 Providing You A Savings Ot = $0.00 Property Valuation & Consulting, Inc. 9 Current Taxes and Unpaid Delinquent Warrants: Year Owner Information Amount Due View BilUReceipt Certified Owner Make Payment 2018-Installment 1 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of June) GETTINGS CALLIOPE A 2018-Installment 2 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of September) GETTINGS CALLIOPE A 2018-Installment 3 GETTINGS GLENDALL W $3,918.97 Taxbill ❑ Pay Now (due by end of December) GETTINGS CALLIOPE A 2018-Installment 4 GETTINGS GLENDALL W $7.959.15 Taxbill ❑ Pay Now (due by end of March) GETTINGS CALLIOPE A 2017-Installment 1 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of June) GETTINGS CALLIOPE A 2017-Installment 2 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of September) GETTINGS CALLIOPE A 2017-Installment 3 GETTINGS GLENDALL W 'PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of December) GETTINGS CALLIOPE A 2017-Installment 4 GETTINGS GLENDALL W PAID(View Taxbill For Receipt)* Taxbill ❑ (due by end of March) GETTINGS CALLIOPE A 2016 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ GETTI NGS CALLIOPE A 2015 GETTINGS GLENDALL W 'PAID(View Taxbill For Receipt) Taxbill ❑ GETTINGS CALLIOPE A 2014 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbill ❑ GETTINGS CALLIOPE A 2007 GETTINGS GLENDALL W *PAID(View Taxbill For Receipt)* Taxbitl ❑ 2006 GETTINGS GLENDALL W "PAID(View Taxbill For Receipt)* Taxbill ❑ Unpaid Real Estate Certificates: Year Current Payoff If Paid By Current Payoff If Paid By Make Payment 'NONE* 'NONE* *NONE* *NONE* *NONE* *NONE* Other Real Estate Certificates: Year Face Value Certificate Number Status Amount Paid 2013 $14,181.60 2014-0004692 Paid $14,896.93 2012 $14.178.53 2013-0004998 Paid $14,893.71 2011 $15,802.69 2012-0005137 Paid $16,599.07 2009 $17,906.49 2010-0006239 Paid $19.225.88 2008 $17,541.17 2009-0007065 Paid $18,424.48 *UNPAID DELINQUENT TAXES MUST BE PAID BY A CASHIERS CHECK,MONEY ORDER,OR CERTIFIED FUNDS AND ARE DUE BY THE LAST BUSINESS DAY OF THE MONTH. Property Valuation & Consulting, Inc. 10 Site Improvements The site is improved with asphalt-paved drives and parking areas,concrete wheel stops and curbing, and minimal landscaping. The appraisers counted 16 asphalt-paved parking spaces of which zero are handicapped. There are two access points (ingress and egress) to the subject property from N. Lakeshore Drive along the northern boundary of the site and an asphalt-paved dumpster pad located at the northwest corner of the site. Building Improvement Number of Buildings One Year Built 1983 Number of Stories Two Building Size (SF) 8,207 enclosed/rentable SF and 8,401 SF of gross building area (based on survey and floor plans provided to appraisers.) Foundation Concrete slab Framing Concrete block Exterior Walls Stucco with wood paneling Interior Walls Wood (cedar), drywall and acoustic panels. Interior build-out is specialty recording studio quality with extra thick walls, dimensional wall coverings to enhance acoustic properties, and sound insulation for sound control. Doors and Windows Glass in aluminum frame entry doors,metal exit doors, solid and wood in glass interior doors with aluminum frame windows Ceilings Acoustical tile, drywall, cedar plank, and acoustic sound insulation in the recording areas Roof Pitched, barrel tile roof and built-up foam roof Floors Tile, wood, carpet, parquet flooring Electrical System and Lighting Fluorescent and incandescent with specialty wiring, lighting and sound systems Property Valuation& Consulting, Inc. 11 Heating, Ventilating and Air Conditioning(HVAC) Package central heating and cooling system covering 100% of the building improvements with additional, specialized air conditioning for the booths and equipment. Plumbing Adequate restroom facilities with two single-user restrooms each with one sink and commode. Fire Protection Fire extinguishers Elevators N/A Furniture, Fixtures &Equipment Items include: built in speakers and wiring Age and Condition The subject property improvements appear to be in good condition. The improvements were built in 1983 with an actual age of 35 years.The subject was determined to have an effective age of 15 years. According to Marshall Valuation Service, the subject has a typical economic life of 50 years,leaving 35 years of remaining economic life. The subject's building improvements appear to be functional for the neighborhood and the layout and floor plan appear to be functional for use as a recording studio. The appearance and construction quality of the improvements conforms to the neighborhood and zoning requirements of the City of Ocoee. Highest and Best Use as if Vacant The highest and best use of the subject site as if vacant considers uses that are physically possible, legally permissible, financially feasible, and maximally productive. The subject site is physically capable of supporting development as evidenced by the existing and surrounding improvements, with adequate size, shape and access. Commercial uses are permitted under the current zoning and land use designations. The subject has average exposure and adequate access from N. Lakeshore Drive. This location has access to/from major thoroughfares including State Road 50, County Road 438, State Road 429 and Florida's Turnpike through Orlando and Central Florida. __ Property Valuation& Consulting, Inc. 12 The use that would be feasible and result in the highest return to the land would be for commercial use as permitted by the City of Ocoee. Therefore, the highest and best use of the subject property as if vacant is for commercial (likely office) use. Highest and Best Use as if Improved The subject property's parking ratio is 1.95 cars per 1,000 square feet based on 8,207 SF of enclosed rentable building area, which is adequate to support current parking, maneuvering, driveway area needs and open space requirements. Altering the improvements may not be feasible. Therefore,the highest and best use, as improved, is for continued recording studio use, as exists, or conversion to alternative office use. Valuation Process In the appraisal of the subject property,all three of the commonly accepted approaches to value were considered. However, due to the use of the subject property as a special purpose, recording studio, only the Sales Comparison and Cost Approaches were applied. The Income Capitalization Approach was not applied to the subject given the improvements are representative of a special purpose facility and limited comparable rental properties exist. The Sales Comparison Approach is the process of comparing prices paid for properties having a satisfactory degree of similarity to the subject. This approach was applied in valuing the subject improvements as well as the underlying land applied in the cost approach. The cost approach considers what it would cost to buy the land and build improvements accounting for any depreciation of those improvements. Land Value The sales comparison approach was used to estimate the land value of the subject property "as if' vacant to apply in the cost approach. Land suitable for commercial use with locations and development potential similar to the subject were researched. This process is a method of comparison of the subject with recent sales, contracts, and/or listings of similar tracts in the market area suitable for commercial development. Four land sales (market comparables) were chosen which were the most comparable to the subject property features including location, exposure/visibility, size, access, utilities, and other property characteristics. Adjustments are made for any major differences between the subject and the market comparables. The indications of value for the various market sales are then correlated into a final land/site value estimate for the underlying land of the subject property. Land Sales The primary sales search was targeted for recent land sales between 0.5 and 10 acres within or near the subject neighborhood allowing similar uses to the subject. The comparables range in size from 0.91 to 8.69 net upland acres. The sales occurred between September 2016 and August 2018. Property Valuation& Consulting, Inc. 13 Unadjusted prices per unit range from $1.22 to $5.57 per square foot(net upland). Per net upland square feet was the source of measurement used. Based upon the analysis of the comparable land sales and discussions with local brokers and market participants in the local market, it appears that the local market for vacant developable commercial sites has experienced a trend of increasing unit sale prices over the past two years. Therefore, the comparable sales were adjusted for market conditions based on the more recent trend of increasing unit prices. The location map of the sales in relation to the subject, tax map/aerial photographs and detailed descriptions of each comparable are provided in Exhibit D. A land sales adjustment grid follows, with a detailed discussion about the concluded land value. Property Valuation& Consulting, Inc. 14 Vacant Land Sales Adjustment Grid 275 North Lakeshore Drive '-" ' Subject ..Land Sale I ,.Lend Sale 2 Land Sale 3 ::Lad Sale4 Address: 275 North Lakeshore Drive 432 Ocoee Apopka Road 698 South Bluford Avenue 300 North Bluford Avenue 158 West Silver Star Road and 441 Palm Drive City/County Ocoee,Orange Co. Ocoee,Orange Co. Ocoee,OrangeCo. Ocoee,Orange Co. Ocoee,Orange Co. Sale Date Nov-18 Appraisal Date Aug-18 Jul-18 Feb-18 Sep-16 Unadjusted Sale/Listing Price N/A 81,694,600 5260,000 5220,000 5240,000 Adjusted Sale/Listing Price N/A $1,694,600 5260,000 $220,000 $240,000 Sae(Gross Acres) 3.23 Acres 8.69 Acres 1.15 Acres .91 Acres 4.51 Acres Sae(Gross SF): 140,595 SF 378,543 SF 50,023 SF 39,483 SF 196,561 SF Net Upland Acres. 1.52 Acres 8.69 Acres 1.15 Acres 91 Acres 4.51 Acres Net Upland/Usable SF 66,108 SF 378,543 SF 50,023 SF 39.483 SF 196,561 SF Adjusted Sale Price/Net Upland Acre N/A $195,002 $226,408 $242,717 $53,187 Adjusted Sale Price/Net Upland SF: N/A $4.48 $5.20 $5.57 51 22 Days on Market N/A Unknown 1,144 280 535 Adjustments for Property Rights Conveyed,financing Terms,Conditions of Sale,Expenditures Immediately After Purchase and Market Conditions: a• ' Real Property Rights. Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjustment for Real Property Rights: N/A 0% 0% 0% 0% Adjusted Pnce/SF of Net Upland Area for Real Property Rights N/A $4.48 $5.20 $5.57 $4.42 Financing terms. N/A Cash or Equivalent to Seller Cash or Equivalent to Seller Cash to Seller Cash or Equivalent to Seller Adjustment for Financing terms: N/A 0% 0% 0% 0% Adjusted Price/SF of Net Upland Area for Financing Terms. N/A $4.48 $5.20 $5.57 $4.42 Conditions of sale N/A Assumed Arm's Assumed Arm's km's Length/Normal Assumed Arm's Length/Normal Length/Normal Length/Normal Adjustment for Conditions of sale: N/A 0% 0% 0% 0% Adjusted Price/SF of Net Upland Area for Conditions of Sale: N/A $4.48 $5.20 $5.57 $4.42 Market Conditions Adjustment@ 3.% N/A 0.76% 1.01% 2.24% 6.50% Months since dosing: N/A 3 months ago 4 months ago 9 months ago 26 months ago Adjusted Price/SF of Net Upland Area for Market Conditions: N/A $4.51 $5.25 $5.70 $4.71 Gross Adjustment N/A 0.76% 1.01% 2.24% 6.50% Adjusted Price/SF of Net Upland Area: N/A $4.51 $5.25 $5.70 $4.71 Municipality/Location: Ocoee,Orange County Ocoee,Orange County Ocoee,Orange County Ocoee,Orange County Ocoee,Orange County Adjustment for Location: N/A 0% 0% 0% 0% Sae(Upland Acres): 1.52 Acres 8.69 Acres 1.15 Acres .91 Acres 4.51 Acres Sae(Upland SF) 66,108 SF 378,543 SF 50,023 SF 39,483 SF 196,561 SF Adjustment for Size(Usable/Upland SF): N/A 20% 0% 0% 10% Frontage. 513 91'on N.Lakeshore Dr.948.3'on Ocoee Apopka Rd. 239'on Geneva St.and 290.15'on W.Silver Star Rd. 785.5'on W.Silver Star Rd., and 673 25 on Palm Dr. 251.5'on S.Bluford Ave. and 132-81'on N.Bluford 256.35'on Taylor St.and Ave. 701.46'on Lee St. Frontage to Depth Ratio. Irregular 1.288:1 1.052:1 2.058:1 2.69:1 Adjustment for Frontage to Depth Ratio: N/A 0% 0% 0% 0% Utilities(5=Sewer.W=Water,E=electric;T=Telephone): W-E-T S-W-E-T(Assumed) S-W-E-T S-W-E-T(Assumed) S-W-E-T(Assumed) Adjustment for Utilities: N/A -5% -5% -5% S% Access/Shape/Utility 1 Street/Irregular/Interior Site 2 Streets/Mostly 2 Streets/Mostly 2 Streets/Rectangular/Corner 3 Streets/Mostly with Lake Frontage Rectangular/Corner Rectangular/Corner Redangular/Comer Adjustment for Access/Shape/Utility: N/A -5% -5% S% -5% Development Information Developed with Recording Zoning and FLU in place,no Buyer Intends to Develop Zoning and FLU in place; Zoning and FLU in place;no Studio known development plans Charter School;Zoning Retail Ste Plans available known development plans change required Zoning/FLU: P-S(Professional Offices C-2(Community I-1(Restncted Manufacturing C-2(Community C-2(Community and ServicesyCommercia/ Commercial)/Commercia/ and Warehousing)/Light Commercial)/Commercia/ Commercial)/Commercia/ Industrial Adjustment for Zoning/FLU: WA 0% 0% 0% 0% Water Retention Onsite OnSlte On-Site On-Site On-Site Adjustment for Water Retention: N/A 0% 0% 0% 0% Topography Level,at Road Grade Level,at Road Grade Level,at Road Grade Level,at Road Grade Level,at Road Grade Adjustment for Topography: N/A 0% 0% 0% 0% State of Development Developed Cleared Cleared Partly Cleared Cleared Adjustment for State of Development N/A 0% 0% 5% 0% Net Physical Adjustments: N/A 10% -10% -5% 0% Gross Physical Adjustments: N/A 30% 10% 15% 20% Indicated Value/SF of Net Upland Area: N/A $4.96 $4.73 $5.41 $4.71 Weighting N/A 15% 30% 30% 25% Weighted Value/SF of Net Upland Area: N/A $0.74 $1.42 $1 62 51.18 Concluded Value: 66,108 SF @ $4 96/SF $328,046 Final Value Indication: Rounded to: $330,000 The adjustments to the sales were made on a quantitative basis, reflecting the inferior or superior characteristics of a comparable sale compared to the subject. The following is a brief synopsis of the adjustments applied to the individual sales. Property Valuation& Consulting, Inc. 15 None of the sales required any adjustments for property rights, as each transaction involved the fee simple estate. No sales required financing adjustments as each was in cash terms, or cash equivalent to the seller. No conditions of sale adjustments were necessary as each sale was a normal, arm's- length transaction with no unusual conditions or motivations on behalf of either party. Due to an increasing trend in values for commercial land over the last approximately two years, a market conditions adjustment of 3%per year from date of sale was applied. The property characteristics that influence value include location,size,access/shape/utility, frontage to depth,traffic,utilities,topography and state of development, zoning/land use and water retention. The sales were analyzed and compared to the subject relative to these features and appropriate adjustments were made. Adjustments were made on a percentage basis (inferior/superior). After adjustments, the range of indicated values for the subject was $4.71 to $5.41 per net upland SF, averaging$4.95 per net upland SF. Sales 2 and 3 received the most weight (30% each) as they are representative of recent transactions of properties highly similar to the subject. Secondary weighting (25%) was given to Sale 4 due to its older sale date and Sale 1 was given the least weight (15%) due to its large size when compared with the subject. This weighting indicates a weighted average unit value of$4.96 (rounded)per net upland acre. Multiplying the indicated unit value by the subject site size of 66,108 net upland SF results in a value indication of$328,046 rounded to $330,000 for the underlying land of the subject property. Cost Approach The cost estimate for the subject improvements is derived by an analysis of construction cost data obtained from the Marshall Valuation Service, a reliable national cost service. This cost service contains actual costs to the owner including: architect's and engineer's fees, plan check, building permits, survey, normal interest during the construction period, processing fee, sales tax on materials, normal site preparation including finish grading, excavation for foundation and backfill, utilities from structure to lot line, contractor's overhead and profit including job supervision, workman's compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities and security. The Marshall Valuation Service does not include: cost of buying or assembling the land, legal fees, property taxes, demolition costs, storm drains, rough grading, hillside foundations, soil compaction, appraisal, consulting fees, signs, landscaping, paving, walls, yard lighting,jurisdictional hook-up, Property Valuation& Consulting, Inc. 16 tap-in, impact fees, advertising expenses, leasing fees, broker's commissions and other marketing costs. The cost of these items will need to be added to the base cost estimate if required. The improvements are classified as a Class "C", Average Cost Office Buildings. The direct cost estimate for the existing building improvements indicated by the Marshall Valuation Service is $2,018,202 based on square footages and per square foot prices shown in the following table. The cost for the recording studio buildout was calculated with consideration of the supplied estimate from Magic Audio, Inc. (refer to documentation in Exhibit B) for $1,300,000 ($158.40 per square foot),however, it should be noted that this estimate includes equipment. We also consulted cost data from Marshall Valuation Service which indicated approximately$100 per SF for a specialty interior buildout. The appraisers have determined a cost of $125.00 per square foot (8,207 SF) for the buildout of the recording space, exclusive of equipment, to be appropriate indicating a total of $1,025,875 for the subject's interior buildout. Building improvement costs are followed by the cost of the building appendages and finally site improvements. See the following summary: Class C Average Cost Office Building 8,207 SF @ $118.08/SF $969,059 Add:Recording Studio Build Out 8,207 SF @ $125.00/SF $1,025,875 Add:Canopy 194 SF @ $34.25/SF $6,651 Asphalt Paved Parking Spaces 16 @ $1,039 each $16,617 Total Site Improvements $16,617 SUBTOTAL:DIRECT COSTS(MARSHALL VALUATION SERVICE) $2,018,202 The base cost of an average cost class"C"Office Building is$113.00 and adjusts upwards to$118.08 based on refinements. Additional direct costs include the recording studio buildout ($1,025,875), canopied area($6,651) and site improvements ($16,617), for a total direct cost of$2,018,202. The City of Ocoee assesses local impact fees for new properties, based on property type and size. Impact fees for commercial properties such as the subject include transportation, law enforcement, fire protection,water capital charges and sewer capital charges. The impact fees are estimated to be $39,005 for transportation, $2,708 for law enforcement, $3,857 for fire, $5,710 for water, and $16,935 for sewer. Permanent financing/legal fees were estimated at $25,000. The total direct and indirect costs are estimated to be $2,111,417. Applying the appropriate amount of entrepreneurial profit is the next step and is a legitimate fee due the developer for the risk involved in assembling the land, capital and overseeing the development. A survey of developers of similar projects indicate that this item can be anywhere from 5% up to 20%depending on the perceived risk involved and the investment requirements of equity investors. Ultimately, the level of profit actually received by the developer/entrepreneur is based on his/her Property Valuation& Consulting, Inc. 17 ability to purchase land at a reasonable price and keep development costs within reason until the project is ready to be marketed or generate income. For the purpose of this analysis, a minimal 5% profit rate on the improvements and land is applied since the property is considered special purpose and entrepreneurial effort would be limited for customized uses. Applying 5%to the total direct and indirect costs of$2,111,417 indicates an estimate of entrepreneurial profit of$105,571. Adding these items together indicate a total replacement cost new of the building and site improvements of $2,216,987. Accrued Depreciation The estimate of physical and functional accrued depreciation can be considered curable or incurable. Physical deterioration can be measured by the effective age/economic life method. This is a simple technique that applies the ratio of effective age to expected economic life. This ratio/percentage is then applied to the total cost new of the improvements, after deducting for any curable depreciation or deferred maintenance. This methodology was applied because of its simplicity. No physical curable depreciation/deferred maintenance was observed on the property. According to the Marshall Valuation Service,the typical economic life expectancy of an average quality, Class "C" Office Building is 50 years.The building has an effective age of 15 years indicating 30%(15/50 years) physical incurable depreciation including interior buildout for the recording studio, or $598,480. The subject's site improvements (including canopied areas)have an overall effective age of 12 years and have a projected life expectancy of 20 years. Therefore, incurable physical depreciation for the site improvements is estimated at 60% (12/20 years), or$13,961. Functional obsolescence is the result of design defects, or changes over the years, which have made some aspects of the structure, materials or design obsolete by current standards. Similar to physical deterioration,functional obsolescence may be curable or incurable. No functional obsolescence was observed on the subject improvements; however, given the special purpose nature of the improvements,the cost approach for a special purpose property is more representative of a use value rather than market value (as the market does not always recognize cost value for special purpose features unless the market participant is a specific user). External obsolescence is the diminished utility of a structure due to negative influences from outside the property itself. External obsolescence may be caused by environmental, political, social or economic factors or conditions external to the property that adversely impact the value of the property. Since forces outside the property cause external obsolescence,it is incurable by the owner. Property Valuation& Consulting, Inc. 18 The subject property does not appear to suffer from any form of external obsolescence. Deducting total accrued depreciation of$612,441 from the total replacement cost new estimate of $2,216,987 indicates a depreciated cost of the improvements of$1,604,546. The final step in the Cost Approach is to add the land value, which was determined to be $330,000 by the analysis of comparable land sales, as discussed previously. Adding the land value results in an indicated as is value via the cost approach of$1,934,546 rounded to $1,930,000, (for the real estate only, not including FF&E) as summarized in the following table. Property Valuation& Consulting, Inc. 19 COST APPROACH SUMMARY 275 North Lakeshore Drive REPLACEMENT COST NEW The following replacement cost new estimate was based on the Marshall Valuation Service, using the following building types and costs. Office Buildings Class C Average Cost Office Buildings Section 15,Page 17 Base Cost $113.00 Sprinkler Adjustment $0.00 Base Cost Adjusted for Sprinkler $113.00 Story Height Multiplier 1.000 Base Cost Adjusted for Story Height $113.00 Floor Area Multiplier 0.997 Base Cost Adjusted for Configuration $112.60 Current Cost Multiplier 1.07 Base Cost Adjusted for Current Market $120.49 Local Cost Multiplier 0.98 Adjusted Base Cost $118.08 Total Enclosed Building Area 8,207 SF Class C Average Cost Office Building 8,207 SF @ $118.08/SF $969,059 Add:Recording Studio Build Out 8,207 SF @ $125.00/SF $1,025,875 Add:Canopy 194 SF @ $34.25/SF $6,651 Asphalt Paved Parking Spaces 16 @ $1,039 each $16,617 Total Site Improvements $16,617 SUBTOTAL:DIRECT COSTS(MARSHALL VALUATION SERVICE) $2,018,202 Impact Fees Impact Fees-City of Ocoee Transportation Impact Fee $39,005 Law Enforcement Impact Fee $2,708 Fire Impact Fees $3,857 Water Capital Charges $5,710 Sewer Capital Charges $16,935 Total Impact Fees $68,215 Permanent Financing/Legal Fees $25,000 TOTAL DIRECT AND INDIRECT COSTS OF THE IMPROVEMENTS $2,111,417 Plus: Entreprenuerial Profit @ 5% $105,571 TOTAL REPLACEMENT COST NEW $2,216,987 Less Estimated Depreciation: Physical Curable(deferred maintenance): $0 Physical Incurable: Building Improvemen'15 years/50 years=30%Depreciation ($598,480) Site Improvements 12 years/20 years=60%Depreciatio ($13,961) Total Physical Depreciation ($612,441) Functional Incurable from: Superadequacy $0 Extemal Obsolescence V Total Depreciation ($612,441) TOTAL DEPRECIATED COST OF THE IMPROVEMENTS $1,604,546 Plus:Land Value $330,000 INDICATED VALUE BY THE COST APPROACH $1,934,546 Rounded to: $1,930,000 Property Valuation & Consulting, Inc. 20 Sales Comparison Approach Five comparable improved sales were analyzed to indicate a value for the subject. The improved comparables used are summarized on the ensuing adjustment grid, and a location map,photographs and summary descriptions are found in Exhibit E. Property Valuation& Consulting, Inc. N i° -> > 78s.;:, '-' E_ `''E i €'8 A 'E .' 8^ r 2. w w a vim“,BO a ,'$ - Q N5 0 �'8: -ES s s. i' gag r -� 3 , a .; w a ill L--.4z.„ o ',� --:zi -` - - g 9-5 .1 z 2 o Ji j w b 9 w w J} C u. - w U W ,-.7,v, E C Z 9 ° „, 2 m ^ a a§.g s ' E '53§ »s ] „§ § 4„ m n { a g 9 e P o s i E g e inn- s" � w E nTz T - w ]w !w "r a" _ - 'm _ - w E 3 w w w E 4' it `' i gaa u J 3 Rg r 4 w w w l` li w _ _ E i P 8 r m o w Oww www w rm SZ u - ,11 - o Li 5 1 z & - U E 4 4og`- E $3= « $sw r ;41 e $ yt ssy `io 8 1-1 -, im - b% .zm� S i W '" 1' w bA 6' Si - a 5 a - g4t. y A» , w „ 2 - g0. a 8y ” U AE - 0 3 u.'- RU ry c CU GI r$ o 788x$ € E "ST. w§ _ '§ z°� w^,n ' § � t84 W " s wt s$ �'" W ti � m u xo 2 - gz ami "6 " u •m r § cU ° z, T w .W7 "' w w w = w 4 4.w w -„a = <r a. - - c o 0.2 w 3 0 X a r E .t n S c $FC V m o 4 - G A2 Um C a - s a 6 - `a 1 O 3 K 0 . AT9 s 8 8 m 3 it C _ C U m 'E 3 < e P A _ _ -1 da as so _� $a on s• ...2. - s 3 m i a E a.- z m Al u k 3 3 E H' 3 . m 2 - .y a ca ° - - S m_ @ a g € `a . o - c�, `e S e i 'e p V Z o c! `e e u 6 �� 1A,2. a 1 a 3 8 x o 3 3 _ -AA -t' li . -< 3 9` <m 3 k ?,4 _.,ro 3'?• 0 a ”, 2 - 3 -.1. 1 5. 5 a '1.3 "k n 'a 3 i = .� a 'a 9 i= '< 1 'a A -' �� 2� a`w°'a o S z 'a°' i "e °'f �, m coy ,, a m' a" >` 22 The comparables analyzed in the grid are judged to be among the best value indicators available,the appraisers attempted to find nearby, recent sales of buildings with recording studio or similar specialty buildout. The comparable properties have rentable areas ranging in size from 7,017 square feet to 13,512 square feet. Unadjusted sale prices range from $149.14 to $399.64 per square foot, averaging$281.39 per square foot. The sales occurred from December 2015 to June 2018 . Although Sale 3 is a leased fee estate,due to a one year leaseback at$8,000 per month,no adjustment was made as it was done as a courtesy to the seller rather than a purchase as an income producing property.No adjustments were required for real property rights on the remaining sales comparables as the fee simple estate of each property was acquired. Sale 5 was financed by the seller (90%) but details of the arrangement could not be verified and a cash equivalency could not be determined, so no adjustment was made.No other adjustments for financing were needed as each sale involved cash or the equivalent to the seller. Improved Sales 3 was adjusted downward 10% or $256,250, for motivations of the buyer, as they own an adjacent property. Sale 5 was purchased by the existing tenant but the listing agent stated that had no effect on price negotiations). No other sales required conditions adjustments. Due to an increasing trend in values for this type of property over the last approximately 1 %2 years,a 3%per year market conditions adjustment due to date of sale was applied. Sale 4 received a$70,000 adjustment for expenditures after purchase to account for real estate related renovations necessary/completed after the sale(this figure was negotiated as part of the sales contract to account for necessary roof and air conditioning repairs).After making adjustments for these items of comparison, the comparables reflect a range of value from $152.45 to $435.48 per square foot, averaging$286.01 per square foot. None of the improved sales included any FF&E; therefore, the value estimate via the sales comparison approach represent real estate only. Adjustments were applied for physical differences between the subject and comparables (location, exposure/access, site utility, building size, parking ratio, construction quality, buildout, and age/condition). Sale 3 received most weight (35%) with secondary weight on Sales 1 and 2 (20% and 25%, respectively) because they each include studio recording space. The least weight(10% each) was applied to Sales 4 and 5. The adjusted unit sale prices of the comparables result in a weighted average indicated unit value via the Sales Comparison Approach of$231.04 per square foot. Multiplying the subject's indicated unit value of$231.04 per square foot by the subject's 8,207 square feet of rentable area results in a value indication of $1,896,172, rounded to $1,900,000 which is the as is market value of the fee simple estate in the subject property via the Sales Comparison Approach. Property Valuation& Consulting, Inc. 23 Reconciliation The cost and sales comparison approaches were applied in estimating the market value of the subject property"as is". In the final determination of the market value of the fee simple estate in the subject property, equal weight (50% each) was placed on both approaches due to the age of the subject and the special purpose nature of the subject improvements. A summary of the value indications from these approaches to value for the subject follows: As Is Value of Property Approach Weighting Value/SF Sales Comparison Approach $1,900,000 50% $231.51 Cost Approach $1,930,000 50% $235.17 Reconciliation $1,915,000 Rounded: $1,920,000 100% $233.95 Based upon the investigation summarized and the premise defined herein, the "as is" Market Value of the Fee Simple Estate in the subject property (real estate only) as a recording studio, as of November 12, 2018,the date of inspection, is estimated to be: ONE MILLION NINE HUNDRED TWENTY THOUSAND DOLLARS ($1,920,000). ____ Property Valuation& Consulting, Inc. 24 Our appraisal services and related appraisal report have been designed to conform to USPAP. This report was prepared in accordance with,and is subject to,our Assumptions and Limiting Conditions and General Service Conditions, which are attached to and form an integral part of this report. No investigation was made of the title to or any liabilities against the property appraised. Respectfully submitted, PROPERTY VALUATION & CONSULTING, INC. ,A" Blair Beasley State-Certified General Real Estate Appraiser Florida License#RZ3871 December 4, 2018 Job#A18-24.OFF Property Valuation & Consulting, Inc. Property Valuation& Consulting, Inc. Exhibit A SUBJECT PHOTOGRAPHS t NORTHERN AND WESTERN BUILDING ELEVATIONS FROM NORTH LAKESHORE DRIVE 4. ... , . , -',,,, .. -.- 17,. :. ' , . ' --..• t3¢3 rs: z7 i _ ,..„ . r !il -`� re°°-- Y Eff.. t SOUTHERN AND EASTERN BUILDING ELEVATIONS FROM NEAR THE SOUTHEAST CORNER OF UPLAND AREA Property Valuation& Consulting, Inc. Exhibit A Exhibit A Location Map and Subject Photographs (5 Pages) �1 Wit' L ak6 i �1,.. I to _ SpringLake Moxe =-Flewelfmg ve 73' 02, z ci 11ithtl• eAl----.:cl P f 1 CA - Subject X _ ' . --Ell •�:�- _ 275 N Lakeshore Dr , o cam' N` v f i [I— D C 711 Ocoee FL 34761 1 h -/-14'i "c..)111") ! j ILr �r----„--, ,� 1 i...-. , X J L____==.112 r nia ir��:u 438. [429 -'� J— f'_. vl � -,L JL ' 1 438: Ft nklln t f oee ' '=- ---, , ° Starke Lake Lam: •° �I j' „am I 4 ,-- $,v it;,,, Lake A4*---' �r C}iypaa Ar a �4174S)61 : I li xs0:. `SII-J , 1 a rite rfse- ' r F ndo Ave ,- I --1 ---,- ,1 , r+ r AJC it I [ 1 [��ii I _-- rt e 1-Li �I I -,� - p II �- c —'(439,- Geneva St E , = ` 1- Story Rd=-- —'�� ' ,�I `� C' oreCerneter'y' r }_ �t:. Nrico- � - �¢ , 'I k _r i it\): -.----E1_—: :d71--(,, I ��j('�� qQ t t -__Irk: r Q �r'= ^., III h` II T6, Yir -18111-c47 ` Property Valuation& Consulting, Inc. Exhibit A SUBJECT PHOTOGRAPHS f !PI; NORTH LAKESHORE DRIVE LOOKING EAST FROM NEAR THE NORTHWEST CORNER OF THE SITE(SUBJECT ON RIGHT) j • „ R t11ouonna NORTH LAKESHORE DRIVE LOOKING SOUTH FROM NEAR THE NORTHEAST CORNER OF THE SITE(SUBJECT ON LEFT AND AHEAD) Property Valuation & Consulting, Inc. Exhibit A SUBJECT PHOTOGRAPHS r -/,-, 1 lifik- - + ,!i .,„ t Id . ., . ,, k 'ri a a rip ma { tet_ Fa» i 0 FRONT ENTRANCE LOBBY(CONTROL ROOM B UPSTAIRS) P M 14 di a all ' » a 1 4 f, e. 1 1/114- 201:.' 1: 1111 PRIVATE OFFICE LOBBY a. "ii lop 7 11006. MEETING ROOM OFFICE/STORAGE ROOM(SOUND INSULATED) Property Valuation & Consulting, Inc. Exhibit A SUBJECT PHOTOGRAPHS f \ . s g 94'`,. 4 i • CONTROL ROOM A STUDIO A 4i QM CONTROL ROOM B(UPSTAIRS) STUDIO B(UPSTAIRS) of- Imo �. DIGITAL STUDIO OFFICE CONTROL ROOM C Property Valuation & Consulting, Inc. Exhibit A SUBJECT PHOTOGRAPHS 17 1 i i _ 2 _ �a '. STUDIO C BOOTH MEETING/BREAK ROOM 4 N- 1-7' .fir,..... ,: w ..„..., , ,..„,„ tl!i2/ 018 1 ., - -- RECEPTION OFFICE(UPSTAIRS) PRIVATE OFFICE(UPSTAIRS) Property Valuation& Consulting, Inc. Exhibit B Exhibit B Aerial Map, Tax Map, Floor Plans, Survey, Buildout Estimate and Building Sketches 8 Pa es � g ) Property Valuation & Consulting, Inc. Exhibit B Aerial Map off . `; ' s 55' S jiltt 55 10 .•,, • •".. Ii,f; W ' • • 4 , `. r I.; •oar ,y r 6 10 g ‘. • 8 1 if3. . . , -1: it, , .: i4 f_. t' . 4: . iii i • • ! i { t t 1 ! a t ' \8 ' Gettingz .` 1 1 07&31 s Property Valuation & Consulting, Inc. Exhibit B Tax Map w q.t. 50 50 50 a ! ,� a `�' �+ 5 55 55 55 LakeShore < Drive Mh Park O i Calio ,�, .„ 'Services Inc cr 7 ' : 6 10 9 g z, k / , t _�- � ,,, rings , 9 Predictors* I -Itecerding 8 ; Studio Getting* 7 Gtsndatt W 1 L1. '.r., k Property Valuation & Consulting, Inc. Exhibit B Floor Plan — First Floor /in r Ro 5uea Vow 5w[ ; //' x 5 I A Cam 8 \972 om j - i i.t4- StugC C ,a, .x:a 1 '� r _ ___. _�, Com. AC Q i Mau Swat .., al kw Sum 1f lit' • {-,...---t.---... ,-,,-------:-.1 QOiU QCGF1 I I �1 fir, ,; FORSi Caanoa I Ram. .; r.{a � A -.-.t fir-.1- t- L F--- 1 - -- _ , _ . 1— --''.\\N Or R Awo s a I i STARKE LAKE STUDDS 275 N.LAKESHORE NNE °OGEE,FLORIDA FIRST. FLOOR t 1 f 1 K [•61.111([ (407)656-9778a RFoOsTARKELAKEST W#OS.COM 1 I I Property Valuation & Consulting, Inc. Exhibit B Floor Plan — Second Floor , i Slava 1 ; am Rumnoe li._ t I F 1 --........orect . ',rm....N.4 . D I . .. STARKE LAKE STUDIOS 275 N. LAKESNME NNE SITHIIK[4611:11([ OCCEE,FLORIDA SECONP FLOOR (407)656-9778 1 s tbelos IDIFOOSTARKELAKESTUDIOS.COM Property Valuation& Consulting, Inc. Exhibit B Survey __ _ "- VICINITY MAP N S. PLAT OF SURVEY r,,,/ .! . ., LAA/ . .1 r. 333 7,c 4c�1 •i , i amswr i I. � . � j % ,..filj iii I;0 Mr.urcsvuao- ',1' a:.. ===s sm e fir_ .r �� ` , I.. -ter , w ,. - a° 1" :sem» 4-6 i rte^ s' �< \. �; I _. P t , "" -+.. 1. _..____.. r .. .:,d :.-.1-4 :114,-- /4/.',it'' /:!n/ ..(____:-_-_— _-,-----=,...... S :..-:.' .c.--rDARY,L.. 1 SAX,.:,-_ Property Valuation& Consulting, Inc. Exhibit B Buildout Estimate MAGIC AUDIO INC. Estimate 4387 36th Street ORLANDO,FLORIDA 32811 407-649.6402 407-648-5520 FAX E-MAIL magicaudiojim( nac.com Ne —dress OETTINGS PRODUCTIONS 275 N.LAKE SHORE DRIVE OCOEF.FLORIDA 34761 407-656-9778 I 407-656-9S62tax • Date [ Estimate No. i Pro)act 11/12/18 2194 Item Description Quantity Coat Total Recording Studio Design,buildout,including RPG Acoustics. 1 1,300,000.00; 1.300.000.00 Sudio Buildout (Panels.Diffusors,Wiring,Electric,and Recording Equipment for Main Control Room,B Room and C Room. • • • I i ANY QUESTIONS PLEASE CALL JIM MC CORMICK Total 51,300,000.00 Property Valuation & Consulting, Inc. Exhibit B Building Sketch — First Floor 78' ' 10' 9.3' First Floor [6551.43 Sq ft] 17.4' 76.2' Property Valuation & Consulting, Inc. Exhibit B Building Sketch — Second Floor 46' r Second Floor [1656 Sq ft] 46' Property Valuation& Consulting, Inc. Exhibit C Exhibit C Identifying Legal Description (1 Page) Property Valuation& Consulting, Inc. Exhibit C MAGUIRES ADDITION TO OCOEE G/10 LOTS 5 THROUGH 10 LYING S OF LAKE SHORE DR (LESS THAT PART LYING WITHIN N 180 FT OF NW1/4 OF SW1/4&THAT PT OF LOT 5 LYING N OF LAKE SHORE DR& S OF N 180 FT OF NW1/4 OF SW1/4) Public Records Orange County, Florida Property Valuation& Consulting, Inc. Exhibit D Exhibit D Comparable Land Sales Location Map, Aerial Photographs and Summary Descriptions ' gli i-_-__,=, ..._ (4 Pages) 1 :14.1actsti,L, . ..---,. - .cf 3 Land Sale 1 X 437 1 _ _ 432 Ocoee Apopka Rd G�� ter St Ocoee FL 34761 =` 0 v ' ,J p Land Sale 3 X 8,ily �rg,, ° 300 N Bluford Ave far �, ' ``�, ] Ocoee FL 34761 11 cc Ra .1438 C� . - lrsr'n II _ 9 NE lin S - —1438)--158 W Silver Star Rd X ,ii oOeoe. Ocoee,FL 34761 Subject X f` 275 N Lakeshore Dr '" TOIL -19 tar:',,.,,,,,,, '�•'• Ocoee FL 34761 111lill '"1 '., Vt .� _ ,2 Magnolia sk rS' +'Ir + t I I 1 " .- L tB St�''., r'� r =, \Al --= \ it /I r III _ -' \,l `'S\ L Erdwprise St �`,:',.. 439, —ifd2ui (! ) Land Sale 2 X Il I 698 5 Bluford Ave OcoeeFL 34761 _� = n. ( Ii ! —I 1 ,,�� Sabina) St Property Valuation& Consulting, Inc. Exhibit D LAND SALE 1 w� ___9131,2 foil' { ret' terep balm c` w+� 6�pihz' IPS ( erdit/-4;isol Wig imp Via II Address/Location 432 Ocoee Apopka Road and 441 Palm Drive, Ocoee, Orange County, FL Grantor West Orange Park Properties,LLC and West Orange Park Properties V, LLC Grantee Shine Ocoee, LLC Transfer Data: Sale/Recording Date August 2018; Instrument#20180503034, Orange County Exchange Conditions and Verification Source Assumed arm's-length;normal(all attempts to verify with a party to the transation failed; qualified sale per Orange County public records) Sale Price $1,694,600 Financing Cash or equivalent to seller Price per SF $4.48 per Gross/Net Upland SF Site Data: Configuration The site is a mostly rectangular corner lot, level, and cleared with 948.3 frontage feet on the west side of Ocoee Apopka Road and 673.25 frontage feet on the north side of Palm Drive. Size 378,543 SF/8.69 Acres (Gross and Net Upland) Zoning/FLU C-2 (Community Commercial)/Commercial, City of Ocoee Utilities Water, sewer,electric and telephone are available to the site and on-site retention is required. Comments The sale contained two adjoining parcels totaling 378,543 gross SF. Property Valuation & Consulting, Inc. Exhibit D LAND SALE 2 id, ., ' v-f'-* of >M 7- 2 - -- —i,o iFAN - Imo---- _ _ 4 • 4,, o -'�k mg� y .t / i xt 1 f r 1,. ¢s :f - � vJ ,It. - `E GENEVA ST i Address/Location 698 South Bluford Avenue, Ocoee, Orange County, Florida Grantor J. Kevin Butler aka John Kevin Butler aka Kevin Butler Grantee Charter Schools Development Group, LLC Transfer Data: Sale Date July 2018 Exchange Assumed Arm's length Conditions Assumed Normal Recorded Instrument#20180454498, Orange County Sale Data: Sale Price $260,000 (all attempts to verify with a party to the transaction failed — some data verified with Karin Arellano, a prior listing agent of the property) Financing Cash or equivalent to seller Price per Sq. Ft. $5.20/SF (Net Upland/Gross SF) Site Data: Configuration The site is a cleared, level, mostly rectangular corner lot with 251.5 frontage feet on the east side of South Bluford Avenue and 239 frontage feet on the north side of Geneva Street. Size 50,023 SF/1.15 Acres (Gross and Net Upland) Zoning I-1 (Restricted Manufacturing and Warehousing)/Light Industrial; City of Ocoee. Utilities Sewer, water, electric and phone are available to the site with on-site retention required. Comments According to prior listing agent, Karen Arrelano (407-948-0767) the buyers intend to take the property through a land use change to allow for development of the site with a charter school,Mrs.Arellano noted it should not be a problem to have the zoning changed as the city is redeveloping Bluford Avenue with the goal of creating the main thoroughfare to the City of Ocoee. 1 Property Valuation& Consulting, Inc. Exhibit D LAND SALE 3 � .i °f 'i f ' f . . , , y im F., ''AM r s 11111151 . a - v t, rz e y. ii ,r,, ,,,, ; 0 w+v f moi' L_ Address/Location 300 North Bluford Avenue, Ocoee, Orange County, FL Grantor Romerca International, Inc. and Lohengri Gimeno Donnelly, f/k/a Lohengri Gimeno-Leland Grantee Suresh Diptee and Cyntra C.R. Diptee Transfer Data: Sale/Recording Date February 2018; Instrument#20180130630, Orange County Exchange Conditions and Verification Source Arm's length and normal(verified with Kurt Gunter,buyer broker,407- 656-7814) Sale Price $220,000 Financing Cash to seller Price per unit $5.57 per Gross/Net Upland SF Site Data: Configuration The site is a mostly rectangular, level,and partly cleared corner lot with 132.81 frontage feet on the west side of North Bluford Avenue and 290.15 frontage feet on the north side of W. Silver Star Road. Size 0.91 gross/net upland acres (39,483 gross/net SF) Zoning/FLU C-2 (Community Commercial)/Commercial; City of Ocoee Utilities Sewer, water, electric and phone are available to the site with on-site retention required. Comments Per listing,site plans have been drawn up for a retail strip with nine store fronts, however no approvals had been obtained. Property Valuation& Consulting, Inc. Exhibit D LAND SALE 4 07 1FI ' f _ 1 � a us w' ' r ` .�_ . . • 111�� } Address/Location 158 West Silver Star Road, Ocoee, Orange County, FL Grantor Munguia, Inc., Grantee VMG Construction, Inc. Transfer Data: Sale/Recording Date September 2016; Instrument#20160487973, Orange County Exchange Conditions and Verification Source Assumed Arm's length and normal (all attempts to verify with a party to the transaction failed — some data verified with Cleve Loveland, a prior listing agent of the property) Sale Price $240,000 (Qualified sale per Orange County public records) Financing Cash or equivalent to seller Price per unit $1.22 per Gross/Net Upland SF Site Data: Configuration The site is mostly rectangular, level, and cleared corner lot with 785.5 frontage feet on the south side of West Silver Star Road,256.35 frontage feet on the east side of Taylor Street and 701.46 frontage feet on the north side of Lee Street. Size 4.51 gross/net upland acres(196,561 gross/net SF) Zoning/FLU C-2 (Community Commercial)/Commercial; City of Ocoee Utilities Sewer, water, electric and phone are available to the site with on-site retention required. Comments Cleve Loveland, the prior listing agent of the property, indicated that seller was ill-informed regarding cost to develop property and was suffering from personal liens, which motivated the sale. However, Mr. Loveland was confident the sales price was reflective of market price at the time of sale. The property was originally listed for $299,900 and subsequently withdrawn from market. Property Valuation& Consulting, Inc. Exhibit E Exhibit E Comparable Improved Sales Location Map, Photographs & Summary Descriptions (5 Pages) dol. °aklari _muuur e.rwwues Lemon ((�� •-r aik�--t7 a a Plymouth ? Bluff' Mayt 1`Teesburg y 'S�{rrentoQ Ethel° ekiva d❑ 1�6dwyy ? '>Lar Lane Park Il / Millet Osceola a ce Tan erin eBay Ridge Lake t':rya Lake La.Le f1a7sey ° a Yalaha g'' X va�idala ,Ea rtiron Park Improved Sale 3 � Howey °Astet� ± ImprovedSale 4 257 Lake Destiny Rd N fid ° X "`46, , in the Howey Eatonville FL 32751 r •1133 Morse Blvd W u Hill'. ,°:',......„.Hills °Height -1ImmRe -" er Winter Park FL 32789 ore CRy ❑ Chuluota tg ` �. �...A Dote^rings e :annoga o erntlale 4 c,:enYpd 'c h,Iontverde I Leckha J._ ,I ? _ ...�(. E M N O fake Pickett I Fate ecoee t42 ' WinterP k tte, Minneole i and° -OnaCl eland �— �nt._ a`otz: .ri Improved Sale 5 1 x Flo ii{". "Cr .e 'r S.Lake Destiny Dr, el,Subject X- \ '43t %'....9 Maitland,FL 32751 ' .: n 275 N Lakeshore Dr pi Castile F L 0 't I D A allay Lake,OeLoulsa FL 314761 ,�,c, \I Toll 0. 'k LUi= l sis Lake Mabel 1.,,� ) Wewahoter C'j• Ba ake- Taft - alakaa ° Improved Sale 2 x aurin o.=—Q_P if G E • 8601 Commodity Cir a Orlando,FL 32819 no thla Eva ,it y - 151 0gyne, TKissimmee' ' Narcooss❑ New Eden it I1'I ° St Cloud < `Cpmr,Ywll 'ie ❑ Pine Crone I fj I _I UUU I— ' '441 allandale Beach ' 75 0 r.% ., r Improved Sale 1 X Tylia it .:k.t4 -- 5020 Biscayne Blvd ns' :q_ rr..::, 1 ° ° Miami, FL 33137 Ga ens i I / Jami Shores M miSpr g ''llialee • I Gard- °Miami Beach - gini Ga -r. - - tw 836 181T11 "Art Deco 3Weat Miarji Historic istc ester•i ,,: District r S h Mi;rui 0coral Gables -1,1. 4f o _. Property Valuation& Consulting, Inc. Exhibit E Im s roved Sale 1 -. r 114Address/Location: 5020 Biscayne Blvd., Miami, Miami-Dade County, FL Grantor: I Light 444 Multimedia, LLC Grantee: Dinvel, LLC Transfer Data: Recorded/Date December 2015; O.R. Book 29897, Page 1839, Miami-Dade County Exchange/Conditions Assumed Arm's Length;Normal Transaction Data: Sale Price $5,400,000 (all attempts to verify failed information is from per CoStar and Miami-Dade County records) Financing Cash or equivalent Price Per Sq. Ft. $399.64/SF Building Data: Building Sq. Ft. 13,512 Rentable SF and 13,956 SF of gross building area Year Built 1949 and 1968 Parking Ratio 1.85 cars per 1,000 square feet based on 13,512 SF of enclosed rentable building area and 25 parking spaces. Construction Type Two-story concrete with stucco and elevator building designed for use as a recording studio Comments The property has a mostly rectangular upland area and has frontage on both Biscayne Blvd., a 4-lane, asphalt-paved road with a median barrier and Federal Hwy.,a 2-lane,asphalt-paved road with no median barriers. The buyers planned to continue using the property as a recording studio. Property Valuation& Consulting, Inc. Exhibit E Im s roved Sale 2 f 1 Address/Location: 8601 Commodity Circle, Orlando, Orange County, FL Seller: DNP Commodity Circle, LLC Grantee: Happy Building, LLC Transfer Data: Recorded/Date March 2018; Instrument#20180199068, Orange County Exchange/Conditions Arm's Length;Normal Sale Data: Sale Price $1,485,000 (verified with Micah Strader, listing broker, 407- 404-5021) Financing Cash or equivalent Price Per Sq. Ft. $149.14/SF Building Data: Building Sq. Ft. 9,957 Rentable and 11,804 SF of gross building area Year Built 2008 Parking Ratio 4.02 cars per 1,000 square feet based on 9,957 SF of enclosed rentable building area and 40 parking spaces. Construction Type Two-story concrete block with stucco Comments The site is mostly rectangular and has access via Commodity Circle which is a 4-lane road with a median barrier requiring a U-turn to access property. The seller used the property for recording music and other media. No specific information available as to the build-out of the studio areas the balance was office area. Buyers converted entire building to professional offices but no cost information was available. Property Valuation & Consulting, Inc. Exhibit E Im I roved Sale 3 1111111111111r' 0100 Address/Location: 257 and 225 S.Lake Destiny Drive,Eatonville, Orange County, FL Grantor: PWJR,LLC Grantee: Fields Motorcars of Florida, Inc. Transfer Data: Recorded/Date April 2018; Instrument#20180216210 Orange County Exchange/Conditions Motivated buyer/Sale-Lease Back Sale Data: List Price $2,562,500 (verified with Beth Lynch, listing and buyer broker, 407-702-7817) Financing Cash or equivalent Price Per Sq. Ft. $365.18/SF Building Data: Building Sq. Ft. 7,017 rentable and 8,384 SF of gross building area Year Built 1986 Parking Ratio 6.70 cars per 1,000 square feet based on 7,017 SF of enclosed rentable building area and 47 parking spaces. Construction Type One-story, concrete block with stucco. Comments The site is mostly rectangular and has access from S. Lake Destiny Drive,a two-lane asphalt paved road with no barriers to access. The sellers leased back the property for one year at a rate of $8,000 per month ($13.68/SF/year). This property contains approximately 1,500 square feet of recording space. Property Valuation& Consulting, Inc. Exhibit E Im'roved Sale 4 , 3 siorA T ' s y .00.1%.7 ,.11`.11::, .44,.....kiw 714 _ Address/Location: 1133 West Morse Blvd., Winter Park, Orange County, FL Grantor: 1133 W. Morse Boulevard, LLC Grantee: PRN Real Estate & Investments, Ltd. Transfer Data: Recorded/Date June 2018; Instrument#20180393801 Orange County Exchange/Conditions Arm's length; normal Sale Data: Sale Price $3,230,000 (verified with Tommy Pinel, listing and buyer broker,407-241-3084) Financing Cash or equivalent Price Per Sq. Ft. $284.31/SF Building Data: Building Sq. Ft. 11,361 SF Rentable and 13,359 SF of gross building area Year Built 1981 Parking Ratio 2.73 cars per 1,000 square feet based on 11,361 SF of enclosed rentable building area and 31 parking spaces. Construction Type Two-story, concrete block with stucco Comments The site is rectangular in shape and has access from W. Morse Blvd., a four-lane asphalt paved road with median cut and Harper Street, a two-lane asphalt paved road with no barriers to access. The sale price was reduced by $70,000 for deferred maintenance which included roof replacement and air conditioning repairs. I Property Valuation& Consulting, Inc. Exhibit E Im s roved Sale 5 110, Address/Location: 517 South Lake Destiny Dr.,Eatonville, Orange County, FL Grantor: The Holding Firm, LLC Grantee: Imperial Design, Inc. Transfer Data: Recorded/Date May 2018; Instrument#20180317964 Orange County Exchange/Conditions Arm's length;tenant purchase Sale Data: Sale Price $1,945,000 (verified David Lundberg, listing and buyer broker, 407-982-1735) Financing Seller financed 90%of purchase price at unknown terms Price Per Sq. Ft. $208.69/SF Building Data: Building Sq. Ft. 9,320 SF Rentable and 9,950 SF of gross building area Year Built 1985 Parking Ratio 5.79 cars per 1,000 rentable square feet based on 9,320 SF of enclosed rentable building area and 54 parking spaces. Construction Type Two-story,precast concrete panel Comments The site is rectangular in shape and has access from S. Lake Destiny Drive,a two-lane asphalt paved road with no barriers to access. The site also has frontage along Interstate 4. The broker stated he feels sale price was reflective of market value even though the buyer was the tenant. The building is being used as an event center. Property Valuation& Consulting, Inc. Exhibit F Exhibit F Assumptions and Limiting Conditions, Extraordinary Assumptions & Hypothetical Conditions (2 Pages) � II Property Valuation& Consulting, Inc. Exhibit F Assumptions and Limiting Conditions No responsibility is assumed for matters legal in nature. No investigation has been made of the title to or any liabilities against the property appraised. In this appraisal,it is presumed that,unless otherwise noted,the owner's claim is valid,the property rights are good and marketable,and there are no encumbrances that cannot be cleared through normal processes. We have provided an appraisal report(summary format),intended to comply with the reporting requirements set forth by the Uniform Standards of Professional Appraisal Practice("USPAP")for an appraisal report. As such,the report presents only summary discussions of the data,reasoning,and analyses used in the appraisal process to develop Property Valuation &Consulting's opinion of value.Supporting documentation concerning the data,reasoning,and analyses has been retained as a part of our work papers. The depth of discussion contained in the report is specific to your needs as the client and for the intended use as stated. Property Valuation&Consulting,Inc.,is not responsible for the unauthorized use of this report. Furthermore,our appraisal services and related appraisal report have been prepared in accordance with the requirements of Title XI of the Financial Institution's Reform,Recovery and Enforcement Act of 1989("FIRREA")with respect to real estate related financial transactions,as we understand these requirements. To the best of our knowledge,all data set forth in this report are true and accurate. Although gathered from reliable sources, no guarantee is made nor liability assumed for the accuracy of any data,opinions,or estimates identified as being furnished by others that have been used in formulating this analysis. The market value estimate contained within this report specifically excludes the impact of structural damage or environmental contamination resulting from earthquakes or other causes. It is recommended that the reader of this report consult a qualified structural engineer and/or industrial hygienist for the evaluation of possible structural/environmental defects,the existence of which could have a material impact on market value. Land areas and descriptions used in this appraisal were provided by the owner and/or obtained from surveys or public records and have not been verified by legal counsel or a licensed surveyor. (The land description is included for identification purposes only and should not be used in a conveyance or other legal document without proper verification by an attorney.) No soil analysis or geological studies were ordered or made in conjunction with this report,nor were any water,oil,gas, or other subsurface mineral and use rights or conditions investigated. Substances such as asbestos, urea-formaldehyde foam insulation, other chemicals, toxic wastes, or other potentially hazardous materials could,if present,adversely affect the value of the property. Unless otherwise stated in this report,the existence of hazardous substance, which may or may not be present on or in the property, was not considered by the appraisers in the development of the conclusion of value.The stated value estimate is predicated on the assumption that there is no material on or in the property that would cause such a loss in value. No responsibility is assumed for any such conditions,and the client has been advised that the appraiser is not qualified to detect such substances,quantify the impact on values,or develop the remedial cost. No environmental impact study has been ordered or made. Full compliance with applicable federal, state, and local environmental regulations and laws is assumed unless otherwise stated, defined, and considered in the report. It is also assumed that all required licenses,consents,or other legislative or administrative authority from any local,state,or national government or private entity organization either have been or can be obtained or renewed for any use that the report covers. Plats are presented only as aids in visualizing the property and its environment. Although the material was prepared using the best available data,it should not be considered as a survey or scaled for size. It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a non- conformity has been stated,defined,and considered in the appraisal report. Further, it is assumed that the utilization of the land and improvements is within the boundaries of the property described and that no encroachment or trespass exists unless noted in the report. Property Valuation& Consulting, Inc. Exhibit F The Americans with Disabilities Act(ADA)became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one of more of the requirements of the act. If so,this fact could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue,we did not consider the possible noncompliance with the requirements of ADA in estimating the value of the property. Blair Beasley and Matthew C. Smith have made a physical inspection of the property and noted visible physical defects, if any,in this report. This inspection was made by individuals generally familiar with real estate and building construction. However,these individuals are not architectural or structural engineers who would have detailed knowledge of building design and structural integrity. Accordingly,we do not opine on,nor are we responsible for,the structural integrity of the property including its conformity to specific governmental code requirements,such as fire,building and safety,earthquake, and occupancy,or any physical defects,which were not readily apparent to the appraisers during their inspection. The value or values presented in this report are based upon the premises outlined herein and are valid only for the purpose or purposes stated. The date of value to which the conclusions and opinions expressed apply is set forth in this report. Unless otherwise noted, this date represents the last date of our physical inspection of the property. The value opinion herein rendered is based on the status of the national business economy and the purchasing power of the U.S. dollar as of that date. Testimony or attendance in court or at any other hearing is not required by reason of this appraisal unless arrangements are previously made within a reasonable time in advance therefore. One or more of the signatories of this appraisal report is a member or associate/affiliate member of the Appraisal Institute. The Bylaws and Regulations of the Institute require each member and associate/affiliate member to control the use and distribution of each appraisal report signed by them. Possession of this report or any copy thereof does not carry with it the right of publication. No portion of this report (especially any conclusion to use,the identity of the appraiser or the firm with which the appraiser is connected, or any reference to the Appraisal Institute or the designation awarded by this organization) shall be disseminated to the public through prospectus,advertising,public relations,news,or any other means of communication without the written consent and approval of Property Valuation&Consulting,Inc. Extraordinary Assumptions None Hypothetical Conditions None Property Valuation & Consulting, Inc. Exhibit G Exhibit G Certification (1 Page) Property Valuation& Consulting, Inc. Exhibit G Certification We certify that,to the best of our knowledge and belief: The statements of fact contained in this appraisal report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions,and are our personal,impartial,and unbiased professional analyses,opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report,and we have no personal interest or bias with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction of 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 the appraisal. 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& Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice and the regulating agencies governed under FIRREA. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The undersigned have made a personal inspection of the property that is the subject of this report. John A. Robinson, MAI, AI-GRS, CCIM and Matthew C. Smith provided significant real property appraisal assistance to the person(s)signing this certification. As of the date of this report,Blair Beasley has completed the Standards and Ethics Education Requirement of the Appraisal Institute for Candidates of the Appraisal Institute. We have performed no services,as an appraiser or in any other capacity,regarding the property that is the subject of this report,within the 3-year period immediately preceding acceptance of this assignment. r State-Certified General Appraiser;Florida License#RZ3871 December 4,2018 Property Valuation& Consulting, Inc. Exhibit H Exhibit H Qualifications of Appraiser(s) and Appraiser License(s) (2 Pages) Property Valuation & Consulting, Inc. Exhibit H QUALIFICATIONS OF BL IR BEASLEY State-Certified General Real Estate Appraiser#RZ.3871 Business Address Property Valuation&Consulting.Inc. 204 South Dillard Street Winter Garden_FL 34787 (40 7)877-0200.Fax (407)877-8222 Education Florida State University Tallahassee,FL Bachelor of Science in Real Estate and Marketing.April 2011 Appraisal&Real Estate Courses Introduction to Real Estate:Florida State University Tallahassee.FL December 2009 Real Estate Valuation:Florida State University Tallahapsee,FL December 2010 Real Estate Finance:Florida State University- Tallahassee.FL December 2010 Real Estate Market Analysis:Florida State University Tillahassee,FL April 2011 Real Estate Inneestment:Florida State University Tallahassee,FL April 2011 Legal Environment of Real Estate:Florida State University Tallahassee,FL April 2011 National USPAP 15 Hour Course,Stew V.Tilliantson Real Estate Education Specialists Orlando,FL April2012 General Appraiser Market Analysis and Highest&Best Use Maitland FL. April2013 Business Practices and Ethics Online February-2014 7-Hour National USPAP Update Course Orlando,FL November 2014 Florida Law Orlando,FL November 2014 7-Hour National USP_AP Update Course Orlando,FL May 2016 7-Hour National USPAP Update Course Orlando,FL April 2018 Florida Law Orlando,FL April 2018 Appraisal seminars sponsored by The Appraisal Institute Critical Thinking in Appraisals.January 2014 Real Estate Experience September 2011-Present-Associate,Ihopeity Valuation&Consultinu:Inc_,Winter Garden.FL Appraisal experience includes narrative and form report uriting of commercial and residential vacant land, proposed residential subdivision properties, recreational facilities, retail buildings. industrial tmiltlinas_ office buildings, day care facilities, gr eenhouseimarsery, commercial condominium properties and other special purpose properties. This includes research, data collection_verification and analysis. References Available upon request_ Property Valuation & Consulting, Inc. Exhibit H Appraiser License A-, RICK SCOTT.GOVERNOR JONATHAN ZACHEM,SECRETARY ,:i..4t 7, dbdiar , 4.,,...„; a STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD THE CERTIFIED GENERAL.APPRAISER HEREIN IS CERTIFIED UNDER THE PROVISIOJJS OF CHAP T475,FLORIDA STATUTES ... lfr.-11*;7 :,--- --xot _:„,00,,,, : BEASLEY, BLAIR4 ' 204 5 DILLARD STREET r WINTER GARDEN FL 34787 .+�y LICENSE NUMBER:RZ3871 • EXPIRATION DATE: NOVEMBER 30,2020 Always verify licenses online at MyFloridaLicense.com ,y1; • Do not alter this document in any form. ;+} ' This is your license.It is unlawful for anyone other than the licensee to use this document. Property Valuation & Consulting, Inc. Exhibit I Exhibit I General Service Conditions (1 Page) Property Valuation & Consulting, Inc. Exhibit I General Service Conditions The service(s)provided by Property Valuation&Consulting,Inc.have been performed in accordance with professional appraisal standards. Our compensation was not contingent in any way upon our conclusions of value. We assumed,without independent verification,the accuracy of all data provided to us. We have acted as an independent contractor and reserved the right to use subcontractors. All files,work papers or documents developed by us during the course of the engagement are our property. We will retain this data for at least five years Our report is to be used only for the specific purposes stated herein and any other use is invalid. No reliance may be made by any third party without our prior written consent. You may show our report in its entirety to those third parties who need to review the information contained herein.No one should rely on our report as a substitute for his or her own due diligence. No reference to our name or our report, in whole or in part, in any document you prepare and/or distribute to third parties may be made without our prior written consent. You agree to indemnify and hold us harmless against and from any and all losses, claims, actions, damages, expenses, or liabilities, including reasonable attorneys' fees, to which we may become subject in connection with this engagement. You will not be liable for our negligence. Your obligation for indemnification and reimbursement shall extend to any controlling person of Property Valuation & Consulting, Inc., including any director, officer, employee, subcontractors, subsidiary, affiliate, or agent. We reserve the right to include your company/firm name in our client list, but we will maintain the confidentiality of all conversations,documents provided to us,and the contents of our reports,subject to legal or administrative process or proceedings. These conditions can only be modified by written documents executed by both parties. Property Valuation& Consulting, Inc., is an equal opportunity employer.