HomeMy WebLinkAboutItem 09 Unsolicited Letter of Intent (LOI) between TNXL Academy Ducks LLC and City of Ocoee
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
STAFF REPORT
Meeting Date: December 2, 2025
Item #: 9
Contact Name: Michael Rumer Department Director:
Contact Number: Ext. 6434 City Manager: Craig Shadrix
Subject: Unsolicited Letter of Intent (LOI) between TNXL Academy Ducks LLC and City of
Ocoee for 10.20 +/- Acres of land located at 1755 Adair Street and 1701 Adair Street (Sorenson
Fields and a portion of Ison Center property). (Assistant City Manager Rumer)
Background Summary: TNXL Academy Ducks LLC (TNXL) has submitted an unsolicited Letter of Intent
(LOI) to purchase approximately 8.97 acres of land located at 1755 Adair Street (the Sorenson Field property),
along with a 1.3 acre portion of 1701 Adair Street consisting of the strip of land situated between the Ison
Center parking lot's east side and the existing TNXL facility. The parcels identified in the LOI are 08-22-28-
2866-01-200 and 08-22-28-0000-00-041. Under the proposal, the Ison Center would retain 2.3 acres. The LOI
offers a purchase price of $2,200,000 for the approximately 10.20 acres and includes TNXL’s commitment to
replace the functionality of the two fields (sized for junior and senior level baseball) at Sorenson with like-sized
fields at Vignetti Park —valued at roughly $900,000.
Founded in 2014 by Brian Martinez, TNXL Baseball Academy serves student-athletes in grades 6–12.
Through its partnership with G3 Academy, TNXL provides a dual-pathway model that combines accredited
academic instruction with high-level baseball training. The academy has established a strong track record of
player development and placement, with 95% of graduates either signing collegiate baseball commitments or
being selected in the Major League Baseball draft. In 2024, TNXL expanded its enrollment to 110 athletes and
grew to four teams, which collectively captured the Premier Division Championship of the NAA Conference
that same year.
On July 18, 2019, the City Commission approved a Lease Agreement with TNXL permitting construction of a
baseball training facility and use of the fields at Sorenson Park. A subsequent First Amendment, approved on
July 21, 2020, authorized construction of a permanent 80' × 120' building at the site. The Second Amendment,
approved December 17, 2024, provided for a $640,000 capital investment by TNXL for facility improvements,
including: (i) installing synthetic turf infields on both the Senior and Junior fields; (ii) raising the outfield fence
on the Junior field; (iii) adding additional netting on the Junior field; and other enhancements. This amendment
also reduced TNXL’s lease payments. The current lease rate is $1,500 per month with a 5% annual
escalation. Per the agreement, the City maintains access to both Sorenson fields Monday through Friday from
5:00 p.m.–10:00 p.m., and on Saturdays from 8:00 a.m.–10:00 p.m. with 48 hours’ notice for City Little League
and other municipal uses. Presently, under this agreement, the city reserves the fields for Legacy Charter
School baseball team, Ocoee Middle School's feeder team to Ocoee High School, and various other travel ball
teams. The City's Youth baseball league does not field any teams in the age bracket that would use the fields
at this time.
TNXL’s submission of the LOI represents a significant step toward solidifying its long-term presence in Ocoee
City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761
Phone: (407) 905-3100 ▪ www.ocoee.org
and supporting the continued expansion of its educational, training, and operational facilities. Ownership of the
land and associated buildings would strengthen TNXL’s ability to secure capital investment and establish a
more permanent foundation for future growth.
In November 2024, TNXL commissioned an appraisal of the combined properties, including the Sorenson
Fields, the Ison Center building, and the existing TNXL facility under lease. The appraisal estimated the
market value of the Sorenson Fields property at $675,000, and the combined value of the full acreage on the
Ison Center property and both buildings at $2,337,000. A summary of the key elements of the LOI is provided
below:
1. Purchase +/- 10.20 acres of land, including the two Sorenson ball fields, the land containing the
existing TNXL building, and the additional land between that building and the Ison Center parking lot
for $2,200,000.
2. Replace the functionality of the two fields at Sorenson with like fields at Vignetti Park.
3. Maintain City access to the Sorenson Fields—Monday through Friday from 5:00 p.m.–10:00 p.m., and
on Saturdays from 8:00 a.m.–10:00 p.m. with 48 hours’ notice for City Little League and other uses—
throughout the construction of the two Vignetti Park fields.
If the City Commission approves the LOI, staff will bring back a purchase and sale agreement to a City
Commission meeting detailing the above terms and any other stipulations identified in the negotiations.
Issue:
Should the Honorable Mayor and City Commissioners approve City Staff to accept the unsolicited Letter of
Intent (LOI) with TNXL Academy Ducks LLC for the purchase of approximately 10.20 acres of land located at
1755 Adair Street and 1701 Adair Street (Sorenson Fields and a portion of Ison Center property)?
Recommendations:
Staff recommends acceptance of the Letter of Intent (LOI) between TNXL Academy Ducks LLC and the City of
Ocoee for approximately 10.20 acres of land located at 1755 Adair Street and 1701 Adair Street (Sorenson
Fields and a portion of Ison Center property) and bringing back a purchase and sale agreement outlining
conditions to include those stated in the LOI.
Attachments:
1. TNXL LOI
2. TNXL LOI Baseball Field Property Information
3. Ison Center 2.3 Acres
4. Property Subject to LOI
5. Appraisal of Properties on Adair St
Financial Impacts:
Land sale proceeds in the amount of $2,200,000.
Type of Item: Regular
Letter of Intent (LOI)
Date: September 22, 2025
To:
Craig Shadrix
City of Ocoee
1 N Bluford Ave.
Ocoee, FL 34761
RE: City-Owned Property PID: 08-22-28-2866-01-200
This Letter of Intent ("LOI") sets forth the general terms and conditions under which TNXL
Academy Ducks LLC (the “Buyer”) proposes to acquire from the City of Ocoee (the “Seller”)
the property described below. Upon mutual execution of this LOI, a formal Contract
(defined below) between Buyer (defined below) and Seller (defined below) shall be drafted
by Buyer incorporating the terms and conditions specified herein, plus any other terms and
conditions that are mutually acceptable to Seller and Buyer.
1. Property
Approximately 10.16 acres as depicted in the attached Exhibit A (Plot Plan) and identified
as PID: 08-22-28-2866-01-200.
2. Purchase Price
As part of the consideration for the purchase of the property, in addition to the land
purchase price of $2,200,000.00, Buyer agrees to refurbish and update the two fields at
Vignetti Park in order to accommodate for the loss of use of the fields located on the
property being acquired. Buyer shall complete the refurbishment and improvements within
one hundred eighty (180) days following the closing of the land purchase, allowing for
sufficient time to survey, design, and complete the project at Vignetti Park. All work shall be
performed at Buyer’s sole cost and expense and shall be subject to coordination with the
appropriate municipal authorities.
3. Intended Use
The property shall be used for the development of a multi-purpose sports complex and
facilities for concessions and community events. Buyer may also include additional
commercial or recreational uses compliant with city zoning.
4. Deposit
Buyer shall deposit $15,000 into escrow within 10 business days of the Contract’s effective
date. This deposit shall be fully refundable under any of the following conditions:
- The Seller defaults or does not proceed with the sale;
- Title defects are discovered and not cured;
- Zoning does not permit Buyer’s intended use;
- The Buyer terminates during the Due Diligence Period for any reason.
5. Due Diligence
Buyer shall have 120 days from execution of the Contract to perform feasibility,
environmental, and land use/zoning due diligence. Seller shall cooperate and provide access
for surveys, reports, etc., and shall deliver all existing documentation in its possession
within 10 days.
6. Zoning and Use Assurance
Seller represents that the property is appropriately zoned or shall support any zoning
amendments necessary for Buyer’s intended use. The sale is contingent upon zoning
confirmation or approval supporting the sports complex and concessions use.
7. Impact Fees
To the extent permitted by law, the City of Ocoee shall waive or exempt Buyer from any
future construction impact fees for development of the property.
8. Title
Seller shall convey good and marketable title. All title defects (monetary or otherwise) must
be cured by Seller prior to closing unless expressly waived in writing by Buyer. Failure to
cure shall entitle Buyer to terminate and receive full refund of the deposit.
9. Closing
Closing shall occur within 60 days following City of Ocoee site plan approval for Buyer’s
proposed development.
10. Costs
Seller to pay title insurance, deed transfer taxes, and settlement costs. Buyer pays for
inspections, surveys, and own legal fees.
11. Contract
This LOI will serve as the basis for a formal Contract for Sale and Purchase, to be negotiated
and executed within 10 calendar days of LOI execution.
12. Exclusivity
Seller shall not solicit or negotiate other offers during the exclusivity period defined herein.
13. Exhibit A: Plot Plan
The document titled “Baseball Field Property Information.pdf” dated 9/17/2025 is hereby
incorporated as Exhibit A to this LOI and shall be attached to the final contract.
14. Legal Disclaimer
This LOI does not constitute a binding agreement, and no legal obligation shall arise unless
and until a formal Contract is executed by both parties.
The above general terms and conditions are not fully exhaustive. Additional issues will
need to be addressed in the formal Contract. While we anticipate that the definitive
Contract will be generally consistent with this LOI, this LOI shall not create any legal rights
or obligations on behalf of or between Seller and Buyer. Nothing herein constitutes an offer
to purchase or acceptance of an offer to sell. This LOI is not a contract. Neither party shall
be bound or obligated to perform under the above terms unless a Contract is executed.
If the above is acceptable to you as the basis for a possible transaction, please sign this LOI
in the space provided below and return the same to me no later than TBA. Upon my receipt
of the executed LOI, Seller will promptly proceed with the preparation of a formal Contract.
Accepted and Agreed To:
BUYER:
TNXL Academy Ducks LLC
By: ___________________________
Name:
Title: Manager
Date:
SELLER:
City of Ocoee
By: ___________________________
Name:
Title:
Date:
I
This map has been produced from the most accurate information available.The City of Ocoee is not responsible for any errors or omissions contained hereon.
Prepared by the City of Ocoee Support Services Department.
Property Information
LEGEND
Baseball_Field_Parcels
Date: 9/17/2025
Document Path: M:\ProjData\LM\Mike Rumer Projects\Property Information.mxd
160 0 16080 Feet
442,511.22 Sq. Ft. 10.16 AC
APPRAISAL REPORT
24-0483
Recreation Property
1701 & 1755 Adair St
Ocoee, Florida 34761
Prepared For:
Mr Brian Martinez
1755 Adair St
Ocoee, FL 34761
Requested By:
Mr Brian Martinez
Buyer
As Of:
10/07/2024
Street View of Subject Property
2
11/3/2024
Mr Brian Martinez
Buyer
1755 Adair St
Ocoee, FL 34761
Re: 24-0483
Recreation Property
1701 & 1755 Adair St
Ocoee, Florida 34761
Dear Mr Martinez:
Thank you for the opportunity to provide appraisal services. Based on our agreement with you, we
have performed an appraisal and reported our findings in this Appraisal Report format. This report is
intended to comply with the reporting requirements under Standards Rule 2.2 of the Uniform Standards of
Professional Appraisal Practice (USPAP 2024).
The depth of discussion contained in this report is specific to the needs of the client and for the
intended use stated below. Herring Realty Advisors is not responsible for unauthorized use of this report.
SUBJECT DESCRIPTION
The subject can be described as multiple parcels that include two baseball fields with a private access
road, an industrial-style building currently used for exercise and batting practice, and a community center.
The community center used to be a church and still retains many of the elements of design, with several
open areas, offices, bathrooms, and a kitchen.
The City of Ocoee owns all three parcels. They have broken out a small portion of 1701 Adair St to a
separate parcel so that the new building can be taxed. The building is otherwise on leased land. For the
purposes of this valuation, 1701 Adair St includes the land and all of the buildings, while 1755 Adair St is
just the parcel with the ballfields. The third parcel is an anomaly for tax purposes that would be rectified in
the proposed sale. The property cards for all three parcels are in the addenda. They currently have
residential zoning but have future zonings for recreational/institutional purposes. The City of Ocoee is
interested in selling the property to the owner of a baseball academy for continued use with the current
improvements.
More information describing the subject parcels and improvements in detail are included in the report.
3
ASSIGNMENT CONDITIONS
The intended use of this report is for purposes of negotiation. It is our understanding that the
intended user and client of the report is Brian Martinez, the only intended user of this report. Use of
this report by Third-Parties and other unintended users is not permitted.
The real estate interest appraised is Fee Simple Interest.
Fee Simple Interest is absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain, police power,
and escheat.
While the industrial building is currently on leased land, if the property were to sell to the buyer, then
the lease would be eradicated and the industrial building would become part of the property. The
industrial building is already assessed as real property. In this scenario, the fee simple value of the property
is thus the most relevant.
The effective date of the appraisal is 10/07/2024. The report date is 11/3/2024.
The definition of value is:
Market Value2
SCOPE OF WORK
The subject was visited on the effective date by the appraiser. I walked the property and entered both
buildings. I interviewed the buyer and the seller. After reviewing the property, I devised a scope of work to
determine value of the property based on available data and accepted appraisal techniques.
4
VALUE OPINION
The value opinion and approaches are described and delineated in the report. See each applicable
value approach section for details. The value opinion is summarized below. As of the effective date, the
market values for the subject are:
FINAL DETAILS
This report is the result of the appraiser and client concurring on the appropriate valuation methods
based on the subject property specifics resulting in a credible value opinion.
This appraisal does not include any extraordinary assumptions. This appraisal contains the hypothetical
condition that the small cutout from 1701 Adair St is added back to the property so that the analysis
mimics reality instead of tax needs. The building cannot be removed and sold separately and in the
proposed sale would be come part of the property, so it does not make sense to exclude it or value it
separately. Reliance on this condition may have had an impact on report results.
I certify that I have no present or contemplated future interest in the property beyond this estimate of
value. I have performed no services, acting as an appraiser or in any other capacity, on the property that is
the subject of this report within the three-year period immediately preceding acceptance of this
assignment.
Your attention is directed to the Limiting Conditions and Assumptions section of this report.
Acceptance of this report constitutes an agreement with these conditions and assumptions.
Seth Philip Shore, SRA
State-certified General Real Estate Appraiser #RZ4151
11/3/2024
5
Certification
I certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions 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
no personal interest 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.
The appraisal assignment was not based on a requested minimum valuation, a specific
valuation, or the approval of a loan.
The signatories of this appraisal report nor Herring Realty Advisors have been sued by a
regulatory agency or financial Institution for fraud or negligence involving an appraisal report.
Compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value or direction in value that favors the
cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this appraisal.
Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice, 2024 Edition.
Seth Shore has made a personal observation of the property that is the subject of this report.
No one provided significant real property appraisal assistance to the persons signing this
certification.
Our analyses, opinions, and conclusions have been developed, and this report has been
prepared, in compliance with the requirements of the Code of Professional Ethics and Standards
of Professional Appraisal Practice of the Appraisal Institute, in conformity with the Uniform
Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards
Board of The Appraisal Foundation. This report was also prepared in conformance with the State
of Florida Standards for Certified General Real Estate Appraisers and, if applicable, the client’s
appraisal requirements.
We have not relied on unsupported conclusions relating to characteristics such as race, color,
religion, national origin, gender, marital status, familial status, age, receipt of public assistance
6
income, handicap, or an unsupported conclusion that homogeneity of such characteristics is
necessary to maximize value.
It is our opinion that the subject does not include any enhancement in value as a result of any
natural, cultural, recreational or scientific influences retrospective or prospective.
We have extensive experience in appraising properties similar to the subject and are in
compliance with the Competency Rule of USPAP.
The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
As of the date of this report, Seth Shore has completed the continuing education program for
Designated Members of the Appraisal Institute.
We have not relied on the work of others if we have a reasonable doubt that the work is credible.
I have provided no prior services on this property in the last three years, appraisal or otherwise.
Seth Philip Shore, SRA
State-certified General Real Estate Appraiser #RZ4151
11/3/2024
7
Assumptions
1. This is an appraisal report presented in an Appraisal Report format which is intended to comply with the reporting
requirements set forth under Standard Rule 2-2 of the Uniform Standards of Professional Appraisal Practice. It is understood
between the parties that the scope of the assignment is limited and we relied on information obtained from the Public
Records of Orange County, published data sources and discussions with market professionals such as investors and brokers
relative to the subject’s income performance and physical composition. Herring Realty Advisors is not responsible for
unauthorized use of this report.
2. Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties which are
identified as the subject of the report, are clear and marketable and there are no recorded or unrecorded matters or
exceptions to title that would adversely affect marketability or value including but not limited to liens, easements, restrictions,
and encumbrances. Herring Realty Advisors has not examined title and makes no representations relative to the condition
thereof.
3. Unless otherwise specifically noted in the body of the report, the legal description furnished is assumed to be correct. Any
abbreviations or discrepancies relative to the legal would be identified.
4. It is assumed that surveys and/or plats furnished to, or acquired by, the appraiser and used in the making of this report are
correct. Herring Realty Advisors has not made a land survey or caused one to be made unless identified in the report and
therefore, assumes no responsibility for accuracy of same.
5. It is assumed any improvements have been, or will be, constructed according to approved architectural plans and
specifications in conformance with recommendations contained in or based on any soil report(s). Unless otherwise noted,
Herring Realty Advisors has not retained independent engineer(s) or architect(s) in connection with the report and therefore,
makes no representations relative to conformance with approved architectural plans, specifications, or recommendations
contained in or based on any soil(s) report.
6. It is assumed that all factual data furnished by the client, property owner, owner's representative, or persons designated by
the client or owner are accurate and correct unless otherwise specifically noted in the report. I do not guarantee the
correctness of such data, although as far as is reasonably possible, the data has been checked and is believed to be correct.
Information and data referred to in this paragraph may include but is not limited to information relative to the subject of the
report regarding numerical street addresses, lot and block numbers, assessor’s parcel numbers, land dimensions, square
footage area of land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count,
room count, rent schedules, income data, budgets, historic operating expenses, and related data. Information obtained
regarding demographics, comparable verification, and data of a general sense is assumed factual as confirmed and the
source(s) reliable. Any material error in the gathered data could have substantial impact on the conclusions reported; as a
result, Herring Realty Advisors reserves a right to amend conclusions reported if made aware of such an error.
7. Unless otherwise noted in the body of the report, it is assumed that there are no mineral or sub-surface rights of value
involved in the report and there are no other development rights of value that may be transferred. Subsurface rights,
minerals and oils, were not considered in making this report unless otherwise stated.
8. Any riparian and/or littoral rights identified by survey or plat are assumed to go with the property unless easements and/or
deeds of record were found by the appraiser to the contrary.
9. It is assumed that there is full compliance with all federal, state, and local environmental regulations and laws, unless non-
compliance is stated, defined, and considered in the report.
10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless the non-
conformity has been stated, defined, and considered in the report. Unless otherwise noted, it is assumed that no changes in
the present zoning ordinances or regulations governing use, density, or shape, are being considered.
11. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority
from any local, state, or national government or private entity or organization has been, or can be, obtained or renewed for
any use on which the value estimate contained in the report is based.
12. Unless otherwise stated in the report, the existence of hazardous material, which may or may not be present on the property,
was not observed by the appraisers. The appraisers have no knowledge of the existence of such material on or in the
8
property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as asbestos,
urea formaldehyde foam insulation, contaminated ground water, or other potentially hazardous materials may affect the
value of the property. The value estimate is predicated upon the assumption that there is no such material on or in the
property that would cause loss in value or affect its marketability. No responsibility is assumed for any such conditions, or for
any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field if
desired.
13. The soil of the area which is the subject of the report appears to be firm and solid. Unless otherwise stated, subsidence in the
area is unknown or uncommon, but Herring Realty Advisors does not warrant against this condition and/or occurrence.
14. It is assumed that the utilization of the land and improvements is within the boundaries or property lines as described in the
report, and there is no encroachment or trespass, unless noted.
15. The date of value of which the opinions in the report apply is set forth in the body of the report. Herring Realty Advisors
assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions stated
in the report.
16. Unless specifically noted in the body of this report, it is assumed that the property or properties described are structurally
sound, seismically safe, and that all building systems (mechanical, electrical, HVAC, elevator, plumbing, etc.) are, or will be
upon completion, in good working order with no major deferred maintenance or repair required; that the roof and exterior
are in good condition and free from intrusion from the elements; that the property or properties have been engineered in
such a manner that it/they will withstand any known elements such as wind storm, flooding, or similar natural occurrences;
and that the improvements as currently constituted conform to all applicable local, state, and federal building codes and
ordinances. Herring Realty Advisors 's professionals are not engineers and are not competent to judge matters of an
engineering nature, nor has Herring Realty Advisors retained independent structural, mechanical, electrical, or civil engineers
in connection with the report. As such, Herring Realty Advisors makes no representations relative to the condition of the
improvements. Unless otherwise noted in the report, no problems were brought to the attention of Herring Realty Advisors
professionals by ownership or management. Unless otherwise noted, Herring Realty Advisors 's professionals inspected less
than 100% of the entire interior and exterior portions of the improvements. If questions regarding engineering studies are
critical to the decision process of the reader, the advice of competent engineering consultants should be obtained and relied
upon. If engineers and consultants retained should report negative factors of a material nature or if such are later discussed
relative to the condition of the improvements, such information could have a substantial negative impact on the conclusions
reported. Accordingly, if negative findings are reported by engineering consultants Herring Realty Advisors. reserves the right
to amend the report conclusions.
17. Unless otherwise specifically noted, this report is not being prepared for use in conjunction with litigation. Accordingly, no
rights to expert testimony, pretrial or other conferences, disposition, or related services are included in this appraisal. If as a
result of this undertaking, Herring Realty Advisors or any its officers, professionals, and/or consultants are requested or
required to provide any of the foregoing services, such shall be subject to the availability Herring Realty Advisors professionals
or consultants at the time and shall further be subject to the party or parties requesting or requiring such services paying the
then applicable professional fees and expenses.
18. Neither all nor any of the contents of the report shall be conveyed to the public through advertising, public relations, news,
sales or other media without written consent and approval of Herring Realty Advisors, particularly as to the valuation
conclusions, the identity of the professionals or firm, or any reference to the Appraisal Institute, the SRA designation, or
certification by the State of Florida. Exempt from restrictions relative to the transmittal of this report to third parties is
duplication for internal use of the client-addressee and/or transmission to attorneys, accountants, or advisors of the client-
addressee. Also exempt from this restriction is transmission of the report to any court, governmental authority, or regulatory
agency having jurisdiction over the party/parties for whom the report was prepared, providing that the report and/or its
contents shall not be published, in whole or in part in any public document without the express written consent of Herring
Realty Advisors or its principals, which consent Herring Realty Advisors reserves the right to deny. The report should not be
advertised to the public or otherwise used to induce a third party to purchase the property. Any third party not covered by
the exemptions herein who may possess this report is advised that he should rely on his own independently secured advice
for any decision in conjunction with the property. Herring Realty Advisors its professionals and/or principals, shall have no
accountability or responsibility to any such third party.
19. Unless specifically set forth in the body of the report, nothing contained therein shall be construed to represent any direct or
indirect recommendation to buy, sell, or hold the property(ies) at the value(s), or development scenario as stated. Such
decisions involve substantial investment strategy and must be specifically addressed in consultation form.
9
20. The distribution of the total valuation in this report between land and improvements applies only under the existing program
of utilization. The separate valuations for land and building must not be used in conjunction with any other report and are
invalid if so used.
21. The forecasts, projections, and/or operating estimates contained herein are based on current market conditions, anticipated
(though recognizably short term) supply and demand factors, and a continued stable economy, unless otherwise stated. Any
forecasts are therefore subject to changes in future conditions.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992 Herring Realty Advisors has 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 or more of the requirements of the Act.
If so, this fact could have a negative effect upon the value of the property. Since Herring Realty Advisors has no direct evidence
relating to this issue, we did not consider possible non-compliance with the requirements of ADA in estimating the value of the
property.
10
INTRODUCTION
Purpose of the Appraisal
The purpose of this appraisal is to opine the market value of the fee simple interest of the subject.
Intended Use/Client and Intended User(s)
The intended use of this report is for for purposes of negotiation. It is our understanding that the
intended user and client of the report is Brian Martinez, the only intended user of this report. Use of
this report by Third-Parties and other unintended users is not permitted.
This report must be used in its entirety. Reliance on any portion of the report independent of others
may lead the reader to erroneous conclusions regarding the property values. Dissemination of any or all
of the report is strictly prohibited for any marketing efforts, print or any electronic means. The
definition of Market Value relied upon is included before the Addenda.
Competency of the Appraisers
The appraisers' specific qualifications are included within this report. These qualifications serve as
evidence of their competence for the completion of this appraisal assignment in compliance with the
competency provision in USPAP.
The appraisers' knowledge and experience, combined with their professional qualifications, are
commensurate with the complexity of this assignment. The appraisers have previously provided
consultation and value estimates for properties similar to the subject in Florida.
Interest Appraised
Fee Simple Interest is absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the governmental powers of taxation, eminent domain, police power,
and escheat.
Effective Date of Value
10/07/2024
Date of Report
11/3/2024
Scope of Work
Scope of work is the most critical decision an appraiser will make in performing an assignment.
Solving an appraisal problem involves three steps:
1. Identifying the problem
2. Determining the solution (or scope of work)
11
3. Applying the solution
None of the three steps can be omitted, and each must be performed in order. To analyze the
problem, the appraiser identifies seven key assignment elements: (1) client, (2) intended users in
addition to the client, (3) intended use, (4) objective of the appraisal, or type of value and its definition,
(5) effective date, (6) property characteristics that are relevant to the assignment such as the interest to
be valued and physical and legal characteristics), and (7) assignment conditions such as hypothetical
conditions, extraordinary assumptions, and other requirements. These elements provide the framework
for the assignment and allow the appraiser to identify the problem to be solved.
The second step is to determine the scope of work to solve the problem. Scope of work
encompasses all aspects of the valuation process, including which approaches to value will be used; how
much data is to be gathered, from what sources, from which geographic area, and over what time
period; the extent of the data verification process; and the extent of property inspection, if any. The
scope of work decision is appropriate when it allows the appraiser to arrive at credible assignment
results and is consistent with the expectations of similar clients and the work that would be performed
by the appraiser’s peers in a similar situation.
Source: Appraisal of Real Estate
Source: Stephanie Coleman, Scope of Work (Chicago: Appraisal Institute)
12
Site Visit
Seth Shore has inspected the subject property. The appraiser is not a professional surveyor, inspector,
or engineer. Herring Realty Advisors did not employ any professional surveyors, inspectors, general
contractors, or engineers in completing this report. Unless otherwise noted, there were no known issues
presented about the subject property. If there are concerns about boundaries, environmental issues, or
significant physical issues, then the appropriate professionals should be consulted.
Data Research
We collected factual information about the subject property and the surrounding market. Our
research included CoStar, CoreLogic, Loopnet, MLS, Site to Do Business, LandID, and the Orange County’s
public records including the County Clerk and Property Appraiser’s Office. We generally researched three
years from the date of our valuation including reviewing any relevant current listings. We confirmed
that information with various sources such as buyers, sellers and brokers.
Methodology
The cost approach is applicable and completed for 1701 Adair St. The subject is zoned residential and
there were some comparable sales of properties built for competing uses. The improvements were in good
shape and custom built, so the cost approach best describes the exact subject property for 1701 Adair St.
For 1755 Adair St there are no competing sales of city parks lands as municipalities usually have to buy and
sell at market value for other purposes. There is no direct marketability of the land at 1755 Adair St since it
would be for purely recreational purposes and the zoning would not change.
The sales comparison approach is applied to both addresses. There were sufficient comparable sales of
each property type to determine the value from market actions. The sales comparison approach best
emulates the actions of buyers and sellers based on direct evidence from the market. This approach is
applicable and completed.
The income approach is not applicable nor completed as the subject is not typical of rental properties
in the market. Most assembly-type properties are owner-occupied and there is not enough data to derive
market rents or cap rates.
After careful consideration of the approaches and the available data, the cost and sales comparison
approaches demand equal weight for 1701 Adair St. For 1755 Adair St, the sales comparison approach is
the only approach and is the final indicator of value.
Due to USPAP protocols and accepted appraisal practices, while the properties might be inter-related
to the buyer, they have different highest and best uses, and as such, are valued separately.
The most likely buyer for the subject properties would be a municipality or a community-oriented
group such as a school, charity, or social/religious organization. Marketing and exposure time would be at
least a year.
13
Ownership and Subject Property History
According to the Orange County Property Appraiser’s Office, the current owner of record is City of
Ocoee.
1755 Adair St has no recorded sales history. 1701 Adair St last sold in 2003 to the City of Ocoee,
the current owner. The subject is not publicly listed for sale. It is being offered privately by the sellers.
There are no contracts as of the effective date. The city has an interest in keeping this property with a
recreational/community focus.
14
SITE DESCRIPTION
The subject consists of two parcels.
1701 Adair St is 3.43 acres and is zoned for residential development, but it is owned by the City of
Ocoee and the future land use is recreational in nature. This parcel is generally flat except for some water
control ditches. There is paving and direct access off of Adair St. The property is rectangular with 265.2
feet of road frontage. The front (west) portion of the parcel has some paving and a building. The rear (east)
portion of the parcel is leased with an industrial-style building on it. There is a cutout for a separate parcel
to account for the building’s existence.
1755 Adair St is a flag lot with access off of Adair St via Bob Sorenson Ln, which is a private road. The
site is zoned for city parks and hosts two baseball fields. There is a secondary access onto Owltree Way to
the south. The fields have been graded and flattened.
More information on the properties follows.
15
Aerial Map
Survey Map
16
17
Access
Access to the subject is legal and physical, with access along Adair St.
Zoning
The property is zoned R-1/R-2, FLU is Recreational by Ocoee. The property has a Recreational land use.
Zoning Map
Flood Information
18
The subject site is generally at road grade. There is no known FEMA influence on the site. No survey
or environmental study has been provided.
Flood Maps
19
Utilities
Water service is provided by Ocoee. Sewer service is provided by Ocoee. Police and fire services are
provided by Ocoee. Electricity service is provided by Duke Energy.
20
Site Photos
Street View North
Street View South
21
Street View Across
Private Street
22
Private Street
Private Street
23
Ball Fields
Ball Fields
24
Ball Fields
Ball Fields
25
Ball Fields
Ball Fields
26
Ball Fields
Interior View
27
Interior View
Interior View
28
Interior View
Parking
29
Parking
30
IMPROVEMENTS DESCRIPTION
The subject has multiple improvements.
On 1701 Adair St there is a community center built in 1987 and a warehouse built in 2020. The
community center was originally a church and features two wings with gathering areas, common
bathrooms, offices, and a kitchen. The warehouse is standard corrugated metal and steel construction
with a concrete floor. There are multiple rollup doors and several bathroom buildouts. On 1755 Adair St
there are two baseball fields with fences, lights, and minimal seating. Sketches and photographs of the
buildings follow.
31
32
Improvements Photos
Industrial Building
Industrial Building
33
Industrial Building
Industrial Building
34
Industrial Building
Industrial Building
35
Industrial Building
Industrial Building
36
Community Center
Community Center
37
Community Center
Community Center
38
Community Center
Community Center
39
Community Center
Community Center
40
Community Center
Community Center
41
Community Center
Community Center
42
Community Center
43
Taxes and Assessments
The current just market assessment for the property is $2,610,812 . The two main parcels are not
currently taxed as the City of Ocoee owns all of the land. However, a third parcel was created for tax
purposes.
Property Taxes In ad valorem taxation, assessed value refers to the value of a property according to
the tax rolls. Assessed value may not conform to the definition of market value, but it is usually
calculated in relation to a market value basis. Some municipalities estimate both an assessed value and
a market value. Non-ad valorem assessments typically apply to properties receiving certain municipal
services or are in special taxing districts financed by community development bonds. The subject is
assessed by the County Property Appraiser and is identified by the tax parcel identification numbers
with the tax bills below.
The law in the State of Florida is that the local assessor should reflect 100% of fee simple market
value, assuming market leases in place (where applicable). However, in actual practice assessments
often vary anywhere from 80% to 90% of market value for most property types. Part of the reason for
this gap is that the assessor’s office allows a discount to reflect transaction costs that the seller would
experience in selling the property. Another reason for the difference is to reduce the frequency of
appeals. These factors are considered in the stabilized assessment for the subject going forward.
In Florida, assessments are levied based on the physical status of a property as it existed as of
January 1st of each calendar year. Tax bills are issued in November, with full payment due by March 31st
of the following calendar year. A discount is made available to property owners in the state of Florida for
early payment of real estate taxes (4.0% in November, 3.0% in December, 2.0% in January, and 1.0% in
February). This analysis assumes that competent management would act to realize the full discount and,
as such, the stabilized real estate tax projection reflects the full 4.0% discount.
44
NEIGHBORHOOD DESCRIPTION
The property has frontage on Adair St with optional access to Owl Tree Way. It is within the city limits
of Ocoee. It is within a residential area. Toll Rd 429 and a Publix-anchored shopping center is about a mile
to the northwest. Downtown Ocoee is about 1.5 miles to the southwest. The Colonial Rd/SR 50 corridor is
about 3 miles to the south. Surrounding land uses include residential and recreational properties.
Orange County
45
Area Maps
46
47
Population Trends
According to the Orlando Economic Partnership and US Census Bureau data, the Orlando MSA is the
fastest growing MSA among the thirty largest MSAs in the United States, with populations increasing in
each district of the MSA – each county and Orlando itself.
Local Economy
48
As a result of the above indicators, the local economy is generally strong. Population in the MSA
overall is also increasing, as seen in the below chart from the Census Bureau.
Personal income is also increasing in the MSA, according to the US Bureau of Economic Analysis.
According to the US Bureau of Labor Statistics, unemployment has recovered to near record
lows after a spike from COVID-19.
49
While there are some headwinds in the economy like elevated inflation, elevated interest rates,
and fears of a minor recession, as of the effective date, the data shows that the MSA, and especially the
subject’s area, would be attractive to business developers.
Since this is a residential area and part of the subject is currently zoned for residential use, the
residential statistics for Orange County are also included below. As seen in the statistics below, the
overall trend in value is upwards but the market has cooled and prices have flattened.
50
Residential Statistics
51
52
Local Statistics
53
54
HIGHEST AND BEST USE
According to the Dictionary of Real Estate Appraisal, highest and best use is defined as: The reasonably
probable and legal use of vacant land or an improved property that is physically possible, appropriately
supported, financially feasible and that results in the highest value. The four criteria the highest and best
use must meet are physically possible, legally permissible, financially feasible and maximally productive.
Alternatively, the probable use of land or improved property, specific with respect to the user and timing
of the use, that is adequately supported and results in the highest present value.
Source: The Appraisal of Real Estate 15th Edition
When a site is improved, we must recognize that the highest and best use may differ from the existing
use; however, the existing use will continue, unless and until, land value (at its highest and best use)
exceeds the total value of the property in its present use. The definition of highest and best use recognizes
the contribution of a specific use to the community or to individual property owners.
The determination of highest and best use results from the appraiser's judgment and analytical skill;
i.e., determination of highest and best use is an opinion, not a fact to be found. In appraisal practice, the
concept of highest and best use is the premise upon which value is based. In the context of investment
value, "most profitable use" is another alternative term but the degree of risk must be considered.
The highest and best use concept requires an analysis of the subject as if it were vacant and also as
improved to determine if the land is more valuable as vacant than the property as improved. There are
four criteria that must be met. The highest and best use must be 1) physically possible; 2) legally
permissible; 3) financially feasible; and, 4) maximally productive. These criteria are generally considered
sequentially and the analysis may indicate more than one use.
55
Source: Stephanie Coleman, Scope of Work (Chicago: Appraisal Institute)
Physically Possible
The subject site sizes vary. The sites are large enough for multiple types of development, have legal
and physical access, they are level, and they have access to utilities. There are very few limitations of
development purely from physical aspects.
Legally Permissible
As discussed earlier, the zoning differs between the properties. Both are currently owned by the City
of Ocoee and the city would approve any buyer and any use. The city has intentions of keeping the
properties community-minded. 1755 Adair St has a future land use of City Parks. 1701 Adair St would need
to be changed to Recreational according to the city. With the future land uses, the Comprehensive Plan
that requires a certain amount of space committed to community and recreational uses, and the city’s
intentions, the subject parcels would need to provide recreational or community uses even under private
ownership.
Financially Feasible:
Guides to the financial feasibility of potential uses are both current and historical vacancy rates and
rental rates, construction activity, and absorption rates of space in the market area. The demand drivers in
this market are the major employers in this region, increasing population, and strong financial positioning
of the area. Increasing home prices have potential home buyers renting or looking at smaller homes in the
area. However, in this case, profitability is not a direct factor in the development of the sites. Since they
are owned by the city, they could be developed for community needs or if in the hands of a private buyer,
they could provide recreational or educational services.
Maximally Productive Use:
The fourth and last step in the highest and best use of the subject site is to conclude which of the
legally permissible, physically possible and financially feasible uses would produce the highest present land
value. With the zoning restrictions in place there would be limited possibilities, but similar sites in the area
provide recreational or educational services.
Highest and Best Use Conclusion- As Vacant
56
Based on all the analysis above, the highest and best use of the subject property as recreational,
community, and/or educational services.
Highest and Best Use – As Improved
1701 Adair St has a community center that used to be a church with offices and meeting areas, along
with an industrial building with bathrooms that could be used for many purposes. There is also parking.
These two buildings conform with the highest and best use of the property, have been maintained, and
contribute to value. There is no surplus land and no demand for redevelopment. There is no immediate
demand for renovation.
1755 Adair St has two baseball fields on it which would conform with the City Parks designation. The
fields are usable and in working order.
Thus, the highest and best use as improved would be continued use.
57
VALUATION
Cost Approach – 1701 Adair St
This cost approach is only for 1701 Adair St. The industrial building is physically on 1701 Adair St
but is the subject of a lease and tied to 1755 Adair St on public records. When sold, the building would
become part of 1701 Adair St so that fee simple ownership is possible.
Like the sales comparison and income capitalization approaches, the cost approach to value is
based on market comparisons. In the cost approach, the appraiser analyzes the cost of the subject
improvements by comparison to the cost to develop similar or exact improvements as evidenced by the
cost of construction of substitute properties with the same utility as the subject property. The estimate
of cost is adjusted for market-extracted losses in value caused by the age, condition, and utility of the
subject improvements or for location problems. Next, add the land value to the total. The sum of the
value of the land and the improvements is adjusted for the property rights conveyed based on market
comparisons.
The principle of substitution, the underlying rationale of this approach, holds that no prudent
person will pay more for a property than the price of a site and the cost of constructing, without undue
delay, an equally desirable and useful property.
In the cost approach, the following steps are typically employed:
1. Estimate the value of the site as though vacant and available to be developed to its highest and
best use.
2. Determine which cost basis is most applicable to the assignment: reproduction cost or
replacement cost.
3. Estimate the direct (hard) and indirect (soft) costs of the improvements as of the effective
appraisal date.
4. Estimate the appropriate entrepreneurial incentive from analysis of the market.
5. Add the estimated direct costs, indirect costs, and entrepreneurial incentive to arrive at the
total cost of the improvements.
6. Estimate the amount of depreciation in the structure and, if necessary, allocate it among the
three major categories: physical deterioration, functional obsolescence, or external
obsolescence
7. Deduct estimated depreciation from the total cost of the improvements to derive an estimate of
their depreciated cost.
8. Estimate the contributory value of any site improvements not already considered.
9. Add site value to the total depreciated cost of all the improvements to develop the market value
of the property.
10. Adjust the value conclusion if any personal property (e.g., furniture, fixtures, and equipment) or
intangible assets are included in the appraisal assignment. If necessary, this value, which reflects
the value of the fee simple interest, may be adjusted for the property interest being appraised
to arrive at the indicated value of the specified interest in the property.
58
Comparable Sale Discussion
There are limited comparable sales for the subject. However, there are sufficient sales for completing
a credible report.
Sale 1 is a recent sale of residential land within the City of Ocoee.
Sale 2 is a recent sale of residential land sold nearby.
Sale 3 is residential land that was bought for the purposes of developing an academy and thus the
intended purpose of the purchase most aligns with the subject’s highest and best use.
All sales were at market conditions with typical financing and in arm’s length transactions. None of
the sales were set for total commercial redevelopment.
Information and photos of the comparable sales follow.
59
Land Sale Write-ups
Land Sale No. 1
Property Identification
Record ID 80
Property Type Residential, Residential
Property Name Development LAnd
Address 38 E Silver Star Rd, Ocoee, Orange County, Florida 34761
Tax ID 18-22-28-0000-00-065, 18-22-28-0000-00-064,18-22-28-4100-
00-020,18-22-28-4100-00-030
Latitude, Longitude N28.575210, W-81.543010
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor Margaret Colella Revocable Trust
Grantee Empire Developers LLC
Sale Date May 27, 2024
Deed Book/Page 20240309081
Property Rights Fee Simple
Marketing Time 546
Conditions of Sale Arm's Length
Financing Cash
Sale History Last transferred into a trust in 2021-22
60
Land Sale No. 1 (Cont.)
Sale Price $850,000
Cash Equivalent $850,000
Adjusted Price $850,000
Land Data
Zoning R-1AA
Topography Mostly Flat
Utilities On Site
Shape Irregular
Landscaping Wooded
Flood Info X
Land Size Information
Gross Land Size 6.930 Acres or 301,871 SF
Indicators
Sale Price/Gross Acre $122,655
Sale Price/Gross SF $2.82
Remarks
These four properties transferred from the same seller to the same buyer on one deed. They are
four contiguous lots within the Ocoee city limits. The buyer was a developer.
According to the MLS, "BEGIN DEVELOPING PARCES DIRECTLY ADJACENT TO FLOURISHING
DOWNTOWN OCOEE! Four contiguous parcels totaling 6.52 acres available on, primarily, Silver
Star Road, with adjoining areas along Rewis Street as well. Zoned R1-AA (low-density residential)
and ready to develop MULTIPLE single-family homes. Property does not lie within Ocoee's
overlay district (despite proximity). Nearly 300 feet of frontage on busy, Silver Star Road (15.5k
vehicles per day, on average)."
61
Land Sale No. 2
Property Identification
Record ID 81
Property Type Agricultural, Residential
Property Name Development Land
Address 6324 Lakeville Rd, Orlando, Orange County, Florida 32818
Tax ID 35-21-28-0000-00-081
Latitude, Longitude N28.625180, W-81.481140
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor Randall and Elizabeth Randall
Grantee Uruk Investment & General Trading LLC
Sale Date August 18, 2023
Deed Book/Page 20230487138
Property Rights Fee Simple
Marketing Time 578
Conditions of Sale Arm's Length
Financing Cash
Sale History Last sold in 1999
Sale Price $300,000
Cash Equivalent $300,000
Adjusted Price $300,000
Land Data
Zoning A-1
62
Land Sale No. 2 (Cont.)
Topography Flat
Utilities Available
Shape Rectangular
Landscaping Wooded
Flood Info X
Land Size Information
Gross Land Size 2.640 Acres or 114,998 SF
Indicators
Sale Price/Gross Acre $113,636
Sale Price/Gross SF $2.61
Remarks
This property is a single residential lot surrounded by residential sites. The property is raw and
wooded.
According to the MLS, "Great opportunity to own this nearly 2.5-acre wooded parcel and build,
subdivide, or change to your preferred use; A-1 zoning currently. Wooded, high and dry, fronting
Lakeville Road & so convenient to 429, FL Turnpike, 408, downtown Orlando, and more."
63
Land Sale No. 3
Property Identification
Record ID 79
Property Type Residential
Property Name Development Land
Address 6115 Clarcona Ocoee Rd, Orlando, Orange County, Orange
County, Florida 32810
Tax ID 36-21-28-0000-00-097, 36-21-28-0000-00-040
Latitude, Longitude N28.612126, W-81.465030
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor Roger and Emily Kopas
Grantee Saints Academy, Inc
Sale Date October 14, 2022
Deed Book/Page 20220724132
Property Rights Fee Simple
Marketing Time 362
64
Land Sale No. 3 (Cont.)
Conditions of Sale Arm's Length
Financing Cash
Sale History Last sold in 2014
Sale Price $790,000
Cash Equivalent $790,000
Adjusted Price $790,000
Land Data
Zoning A-1, Agricultural
Topography Mostly Flat
Utilities On Site
Shape L Shaped
Landscaping Partially Cleared
Fencing None
Flood Info X
Land Size Information
Gross Land Size 5.320 Acres or 231,739 SF
Indicators
Sale Price/Gross Acre $148,496
Sale Price/Gross SF $3.41
Remarks
This sale consisted of two properties from the same owner to the same buyer with one deed.
The properties had older houses on them. The properties are surrounded by residential
properties. The land was purchased to develop a school. The zoning as of purchase was
agricultural which allows residential and some community-centric uses.
According to the MLS: "Price Improvements! Great potential on this 5+ Acres located on
exploding West Orlando near Ocoee and Winter Garden. This land has great potential for
developer to rezone for mix-use/residential subdivision/commercial. The parcel has an amazing
660+/- road frontage on Clarcona Ocoee that is major thoroughfare between Orlando and
Winter Garden. There are new plazas and brand new subdivisions that are being built and
planned within a quarter mile of this property. Major highways are close proximity to this land
as well; HWY 429, HWY 408, and the turnpike."
65
Land Sales Adjustment Grid
Land Sales Summary and Adjustment Grid
Subject Comp 1 Comp 2 Comp 3
Location:1701 & 1755 Adair St 38 E Silver Star Rd 6324 Lakeville Rd 6115 Clarcona Ocoee Rd
O.R. Book/Page:20240309081 20230487138 20220724132
Seller:Margaret Colella
Revocable Trust
Randall and
Elizabeth Randall
Roger and Emily Kopas
Buyer:Empire Developers
LLC
Uruk Investment &
General Trading LLC
Saints Academy, Inc
Date of Sale:May, 2024 August, 2023 October, 2022
Sale Price:$850,000 $300,000 $790,000
Adjusted Sale Price:$850,000 $300,000 $790,000
No of Units:Site Size (SF):149,411 301,871 114,998 231,739
Site Size (Acres):3.43 6.93 2.64 5.32
Unadjusted Price/Gross Acre:$122,655 $113,637 $148,496Unadjusted Price/Sq. Ft:
Adjustments
Rights Transferred:Fee simple Fee simple Fee simple
Financial Considerations:Market Market Market
Conditions of Sale:Arm's Length Arm's Length Arm's Length
Market Conditions - Time:Stable Stable Stable
Time Adj. Cash Equiv. Price/Gross Acre: $122,655 $113,637 $148,496
Location:Average Similar Similar Similar
Site Size (Gross Acres):3.43 6.93 2.64 5.32
Zoning:R-1/R-2, FLU is
Recreational
R-1AA A-1 A-1
Utilities:All Available Similar Similar Similar
Net Adjustments:0%0%0%
Adjusted Price/Gross Acre:$122,655 $113,637 $148,496
66
Land Comparables Map
67
Land Sales Analysis
The preceding sales were confirmed to offer the best indication of value of the subject site via the
Sales Comparison Approach. A number of sales were examined, and in the final analysis they were
narrowed to the three most comparable transactions.
Adjustments for time and price trends were considered, but with the market stable overall and the
oldest sale slightly higher per acre than the newest sale, there is no demand for an adjustment. All of
the transactions are relatively timely, taking place from October, 2022 to May, 2024.
There were no adjustments demanded for the subject’s physical characteristics as they are all similar
in location, size, utility, and zoning.
Sale 1 and Sale 3 demand all of the weight. The subject site is between Sale 1 and Sale 3’s price per
acre with both weighted equally, resulting in a value opinion of $135,000 per acre.
When applied to the subject this results in:
3.43 Acres of Land Area x $135,000/Acre = $463,000.
Land Value Opinion Rd. $463,000
68
Replacement Cost New
Cost New Estimate
The next step in the cost approach is to estimate the replacement cost new[1] (RCN) for the
subject property. The RCN is comprised of three parts. Each of these three parts will be estimated for
this section of the appraisal with each being drawn from the market.
1. Direct Costs,
2. Indirect Costs, and
3. Entrepreneurial Incentive
Direct and Indirect Costs
Cost new estimates were gathered from Marshall Valuation Service (MVS). There is a limited
level of market construction and very limited survey data available. The detailed cost information is
retained in my work file with the summary of the it is detailed in the table below for the subject
property.
Entrepreneurial Incentive
Historical cost data from prior appraisal reports and surveys completed in this market are the
basis for this third part of the cost matrix. Historically, the market requires a minimum 20% incentive to
induce the construction of a property on the market. Actual returns, or entrepreneurial profit, will differ
from the 20%. This is the reason this report reflects 20% for EI.
[1] A replacement cost estimate envisions constructing a structure of comparable utility, employing the
design and materials that are currently used in the market. The current cost of a similar new item having
the nearest equivalent utility as the item being appraised. The cost of replacing an asset with an equally
satisfactory substitute asset normally derived from the current acquisition cost of a similar asset, new or
used, or of an equivalent productive capacity or service potential. Replacement cost assumes the use of
modern materials, techniques, and designs.
The results of the analysis is shown below, resulting in an approach total of $2,407,000.
69
70
Sales Comparison Approach
The following steps describe the applied process of the Sales Comparison Approach:
The market in which the subject property competes is investigated; comparable sales, contracts
for sale, and current offerings are reviewed.
The most pertinent data is further analyzed, and the quality of the transaction is determined.
The most meaningful unit of value for the subject property is determined.
Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject
property.
The value indication of each comparable sale is analyzed, and the data is reconciled for a final
indication of value via the Sales Comparison Approach.
Adjustment Process
I have researched and analyzed comparable sales in this approach, detailed on the following analysis
grid. The comparable sales are analyzed and compared with the subject property. I have considered
adjustments in the areas of:
*Property Rights Sold
*Financing
*Conditions of Sale
*Economic Trends (market conditions)
*Location
*Physical Characteristics
The degree of price variance caused by these elements was estimated using paired data sets where
possible. Other adjustments were based on interviews with other local appraisers, developers, and
brokers, the appraiser's experience with similar types of properties, and knowledge of the area. Following
this summary discussion is a sales comparison grid displaying the subject property, the comparable sales,
and the adjustments applied.
Comparative analysis is the process that employs either quantitative analysis or qualitative
comparison analysis to derive a value indication. The two techniques may be used either separately or in
combination. Direct comparison, trend analysis, or statistical and graphical analyses are the basis of the
quantitative adjustments. Quantification helps analyze market evidence and identify how various factors
affect property value.
Qualitative analysis considers value differences in elements of the properties not gathered from direct
market comparison (matched paired analysis). My judgment weighs the qualitative adjustments in the
analysis of quantitative data from the market. Qualitative analysis acknowledges the inefficiencies of real
estate markets and the difficulty of precisely measuring the differences between properties that have sold
and the subject of the appraisal. Qualitative adjustments contribute to the process by limiting the range of
values and identifying a bracket in which the final value estimate should fall. Preparing an organized grid
71
work that includes both quantitative and qualitative adjustments can ensure that all elements of
comparison are considered.
All comparable sales in this report sold at what is market value with typical financing terms, which
resulted in cash to the seller at the time of the closing. As a result, no adjustments for price or concessions
were required.
There were two parcels that need analysis in the sales comparison method – the parcel with the
community center and industrial building, and the parcel with the ball fields.
1701 Adair St.
This parcel includes the community center, which used to be a church, and the industrial building. The
industrial building is being used as a baseball training center, but could be used for many different things -
a sanctuary, a meeting hall, a concert/event venue, or a meeting space. It is common for churches and
community centers to host community and family events, so the space would be put to good use and is
similar to other properties on the market. Based on form and function, the best comparables for this
parcel are churches and community centers, which often serve both functions.
While the subject has an industrial-style building on it, it would not be comparable to most of the
industrial-style properties on the market because industrial land is so valuable compared to residential
land and most of those industrial comparables come with the ability to do industrial activities which is a
major driver of their value. In this case, those uses would not apply.
Sale 1 is the most recent transaction. This property is a mixture of buildings like the subject and the
most similar in overall appeal and finishes. The main sanctuary has been gutted so it is a mostly empty
building like the industrial building and the rest of the properties are finished offices and churches like the
subject.
Sale 2 is a church with multiple buildings that is in a residential area. The buildings were in typical,
usable shape at sale. However, the site has some surplus land that the other sales and subject do not.
Sale 3 is the closest sale. It is just over in Winter Garden. It is an older church that has been renovated
and there are multiple buildings on site. It was purchased as an investment property and the owners are
letting the current tenants stay on for now so it is continuing as a church. This property is smaller with a
higher FAR than the other sales.
The adjustment for Sale 3’s FAR is based on qualitative analysis and brings it in line with Sale 1.
The adjustment for Sale 2’s surplus land is based on the amount of land that does not support the
highest and best use to the south.
Sale 1 demands all of the weight, which results in a market value of $162 per SF of rentable area for
the subject.
All market evidence points towards a market value for the house of $2,337,000 based on the tightly
adjusted range with all comparable sales demanding weight.
72
Improved Sales Write-ups IMPROVED SALES SUMMARY TABLE
No. Location Sale Date Price Building
Size (SF)
Price/
SF
1. 2275 Fortune Rd 08/07/202
4
$4,700,00
0
28,924 $162.49
2. 1400 N Nowell St 10/30/202
3
$2,000,00
0
17,249 $115.95
3. 820 S Park Ave 12/21/202
2
$1,400,00
0
7,715 $181.46
Page 73
Improved Sale No. 1
Page 74
Improved Sale No. 1 (Cont.)
Improved Sale No. 1 (Cont.)
Page 75
Property Identification
Record ID 55
Property Type Commercial, Religious
Property Name Church/Community Center
Address 2275 Fortune Rd, Kissimmee, Osceola County, Florida 34744
Tax ID 182530000000520000
Latitude, Longitude N28.305190, W-81.351640
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor IGLESIA BAUTISTA CENTRAL DE KISSIMMEE INC
Grantee IGLESIA EL CALVARIO ASSEMBLY OF GOD OF ORLANDO FLORIDA
INC
Sale Date August 07, 2024
Deed Book/Page 6649-0593
Property Rights Fee Simple
Conditions of Sale Fee Simple
Financing Conventional
Sale History Multiple Quitclaims to support sale
Sale Price $4,700,000
Cash Equivalent $4,700,000
Adjusted Price $4,700,000
Land Data
Land Size 4.610 Acres or 200,812 SF
Topography Mostly Flat
Utilities On Site
Shape Irregular
Flood Info X
Indicators
Sale Price/ SF $162.49
Floor Area Ratio 0.14
Land to Building Ratio 6.94:1
Remarks
This property was listed as an assembly building. There are multiple improvements on site
totalling 28,924 SF. This property has multiple church/assembly buildings, a medical office, a
school, and some modular buildings. The main sanctuary has been gutted and is ready for
development or storage.
According to the MLS, " This property located in Kissimmee, Florida offers an excellent
Page 76
opportunity where you can grow and meet the needs of the community as a Place of Worship,
School or/and Community Outreach Center. The property features 200,812 sq ft on 4.61 acres
fully fenced with 4 buildings, 2 large storage/maintenance units and 9 portables with access to a
playground and an outside basketball court. Main Building has a spacious area in process of
remodeling with the plans of a gymnasium/sanctuary which will have pullout bleachers for
Sunday Service, Conferences, Games and Concerts. Building 2 you will find a Cafeteria/Gym and
Kitchen lots of space for future use as classrooms or offices. Building 3 is currently a Medical
Clinic for the community's needs. When ready site plans have been approved to build a two-
story structure with infrastructure in place for a potential sanctuary, school or income producing
property with an abundance of parking space and endless possibilities for growth and
development. Overall property location is on a busy roadway in great location waiting for a
buyer with a vision to expand providing multiply needs for a growing community."
Page 77
Improved Sale No. 2
Page 78
Improved Sale No. 2 (Cont.)
Page 79
Improved Sale No. 2 (Cont.)
Page 80
Improved Sale No. 2 (Cont.)
Property Identification
Record ID 41
Property Type Commercial, Church
Property Name Church
Address 1400 N Nowell St, Orlando, Orange County, Orange County,
Florida 32808
Tax ID 24-22-28-6264-08-010
Latitude, Longitude N28.558960, W-81.463980
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor Grace Alive Church Inc
Grantee Iglesia El Taller Del Alfarero Inc
Sale Date October 30, 2023
Deed Book/Page 20230637609
Property Rights Fee Simple
Marketing Time 77
Conditions of Sale Arm's Length
Financing Conventional
Sale History None in prior year
Sale Price $2,000,000
Cash Equivalent $2,000,000
Adjusted Price $2,000,000
Land Data
Land Size 4.160 Acres or 181,210 SF
Zoning R-1A, Residential
Topography Flat
Utilities On Site
Shape Rectangular
Landscaping Mostly Clear
Flood Info X
General Physical Data
Building Name Church
Building Type Single Tenant
SF 17,249
Year Built 1957
Indicators
Sale Price/ SF $115.95
Page 81
Floor Area Ratio 0.10
Land to Building Ratio 10.51:1
Remarks
This is a church with a traditional sanctuary in a residential area. It is just north of W Colonial Dr
just east of Orlando. The building is in average shape for its age and it was bought by another
religious organization after typical market exposure. The property was updated in 2016.
According to CoStar: "Grace Alive Church, Inc. sold this 20,286 square foot speciality building to
Iglesia El Taller Del Alfarero, Inc. for $2,000,000, or $98.59 per square foot. The property was on
the market for 3 months, with an initial asking price of $2,000,000. All information in the
comparable has been verified by the listing broker."
Page 82
Improved Sale No. 3
Page 83
Improved Sale No. 3 (Cont.)
Property Identification
Record ID 56
Property Type Commercial, Religious
Property Name Church/Assembly
Address 820 S Park Ave, Winter Garden, Orange County, Winter Garden,
Florida 34787
Tax ID 22-22-27-1084-01-190
Latitude, Longitude N28.555030, W-81.592450
MSA Orlando-Kissimmee-Sanford
Market Type Medium
Sale Data
Grantor New Chief Cornerstone Ministries Inc
Grantee Secured Insurance Services Inc
Sale Date December 21, 2022
Deed Book/Page 20230020110
Property Rights Fee Simple
Marketing Time 158
Conditions of Sale Fee Simple
Financing Private
Sale History Last sold in 2009
Sale Price $1,400,000
Cash Equivalent $1,400,000
Adjusted Price $1,400,000
Page 84
Improved Sale No. 3 (Cont.)
Land Data
Land Size 0.840 Acres or 36,590 SF
Zoning R-2
Topography Mostly Flat
Utilities On Site
Shape Rectangular
Landscaping Mostly Cleared
Flood Info X
Indicators
Sale Price/ SF $181.46
Floor Area Ratio 0.21
Land to Building Ratio 4.74:1
Remarks
This property is currently being used as a church. The property features two buildings on site
that have been updated and maintained.
According to the MLS, "This is a highly sought-after opportunity to secure 5 lots currently zoned
residential/commercial (mixed use) just minutes away from the City’s Historic Downtown
Walkable District. With zoning for mixed-use, you could take full advantage of this prime
location and embark on a new development project or transform the existing use into your
dream project. Renovation aspirations? Perfect...you could add your own style and flair to this
gorgeous place of worship set up which is equipped with one building that seats 250 members,
second building that seats 70 members, fellowship/banquet room, kitchen, 3 offices and gift
shop. Convenience is absolutely guaranteed with such a central location. Imagine the
development ROI! The property is walkable to Winter Garden’s Interactive Fountain &
Splashpad, Walker’s Field, and bustling restaurants, shopping, the hotel, and theater."
Page 85
Improved Sales Adjustment Grid
Improved Sales Summary and Adjustment Grid
Subject Comp 1 Comp 2 Comp 3
Property Name:Recreation Property Church/Community
Center
Church Church/Assembly
Location:1701 & 1755 Adair St 2275 Fortune Rd 1400 N Nowell St 820 S Park Ave
O.R. Book/Page:6649-0593 20230637609 20230020110
Seller:IGLESIA BAUTISTA
CENTRAL DE
Grace Alive
Church Inc
New Chief
Cornerstone
Buyer:IGLESIA EL CALVARIO
ASSEMBLY OF GOD OF
Iglesia El Taller
Del Alfarero Inc
Secured
Insurance
Date of Sale:August, 2024 October, 2023 December, 2022
Sale Price:$4,700,000 $2,000,000 $1,400,000
Adjusted Sale Price:$4,700,000 $2,000,000 $1,400,000
Building Size:28,924 17,249 7,715
Unadjusted Price/SF:$162 $116 $181
Adjustments
Rights Transferred:Fee simple Fee simple Fee simple
Financial Considerations:Market Market Market
Conditions of Sale: Arm's Length Arm's Length Arm's Length
Market Conditions - Time:Stable Stable Stable
Time Adjusted
Cash Equiv. Price/SF:$162 $116 $181
Location:Average Similar Similar Similar
Building Size (SF):14,426 28,924 17,249 7,715
-10%
Year Built/Condition:1987/2020 1983 1957 1955
Good
Acreage 3.43 4.61 4.15 0.84
33%
Floor Area Ratio:0.11 0.14 0.1 0.21
Net Adjustments:0%33%-10%
Adjusted Price/SF:$162 $154 $163
Page 86
Improved Comparables Map
Page 87
1755 Adair St
There are very limited comparable sales for 1755 Adair St, so all of the available information is
analyzed. The limitations of information on comparable sales is acknowledged. There are hardly any
known sales of city parks for continuous use, but there were several ballfield comps found in a regional
search of the southeast. In addition, there was a recent purchase of land for construction of a large
baseball complex. This information is analyzed in this section. While limited, the information was
consistent enough to provide a credible report. The subject as a baseball field would have a very limited
market, especially with the City Parks zoning. Most developers would want to do something different with
this parcel, as there is minimal income from city park style baseball fields on their own.
There were two comparable baseball field sales found. These sales were found in a regional search
of the southeast.
First is a sale in Mint Hill, NC. Mint Hill is a suburb just outside of Charlotte, NC, making the
location similar. A local church sold their baseball fields to a baseball academy. The community focus and
involvement of a baseball academy make this sale particularly relevant. As seen in the image below, this
property has two full ballfields and two junior ballfields, along with a smaller practice area. While this
property is 20 acres, some of the site is wooded and not developed or used. This site has parking and is set
back off the road like the subject. There are no substantial buildings on site. This property would be similar
to the subject, so its $337,500 per full ballfield would be similar to the subject.
Page 88
Page 89
Page 90
In 2022, there was a sale of a baseball complex in Ruther Glen, VA, a suburb of Richmond, VA. This
property had four full baseball fields and four junior fields. According to the public records and marketing
materials, there was a 40,000 SF building on site that was used for recreational purposes. According to the
tax card, the building was about 42% of the total value, which in a $3,000,000 sale would put it at
$1,260,000. At ~$31/sf for the depreciated cost of the building itself, that makes sense for a 20 year old
building. The subject cost new was about $71/sf and that figure depreciated based on age would be about
$30/sf. These cost figures are accepted and the building as backed out at $1,260,000, leaving $1,740,000
contribution from the eight ballfields, or $217,500 per ballfield. This location is more rural than the subject
and the North Carolina property analyzed, and there are more ballfields included, so this figure would be
on the low end for the subject.
Page 91
Page 92
The above-described sales can be summarized thusly:
Page 93
Sale 1 is the best sale and captures the marketability and value of the subject the best despite a
regional search. The subject would be similar in value per ballfield at $337,500 a field. When applied to
the subject, this results in a market value of $675,000. That equates to $74k per improved acre for the
subject. Again, the limited comparable sales are acknowledged, but these are the limited recent sales. It
is appropriate to conduct a regional search as an investor looking for similar properties would look
regionally for a place to set up a baseball academy. Most local comparable sales are all sales to
developers, but in this case, the future land use is City Parks and there is not much space for further
development of this parcel, nor is there much income directly from the ball fields themselves.
One test of reasonableness is comparison to a recent sale in the area. While much larger, there
was a recent purchase of land for development of a baseball complex nearby. Chevron Land and
Development Co sold 95 acres of land to a developer for development of a baseball complex with over a
dozen fields, hotels, meeting centers, and training centers aimed at travel baseball teams. This sale was
for $4.2 million, or ~$44k per acre. This is one indication of an investor’s purchase price of land for
baseball themed development. The subject’s improved value of $74k per acre is significantly higher than
the other purchase between two market participants and shows that the improvements would
contribute to value.
All attempts were made to find more data and more local data, but in this situation, the subject
would not be available to general commercial development, and thus the market activity is extremely
limited.
$337,500 x 2 Ballfields = $675,000.
Page 94
Summary and Reconciliation
The cost approach is applicable and completed for 1701 Adair St. The subject is zoned residential and
there were some comparable sales of properties built for competing uses. The improvements were in good
shape and custom built, so the cost approach best describes the exact subject property for 1701 Adair St.
For 1755 Adair St there are no competing sales of city parks lands as municipalities usually have to buy and
sell at market value for other purposes. There is no direct marketability of the land at 1755 Adair St since it
would be for purely recreational purposes and the zoning would not change.
The sales comparison approach is applied to both addresses. There were sufficient comparable sales of
each property type to determine the value from market actions. The sales comparison approach best
emulates the actions of buyers and sellers based on direct evidence from the market. This approach is
applicable and completed.
The income approach is not applicable nor completed as the subject is not typical of rental properties
in the market. Most assembly-type properties are owner-occupied and there is not enough data to derive
market rents or cap rates.
After careful consideration of the approaches and the available data, the cost and sales comparison
approaches demand equal weight for 1701 Adair St. For 1755 Adair St, the sales comparison approach is
the only approach and is the final indicator of value.
Due to USPAP protocols and accepted appraisal practices, while the properties might be inter-related
to the buyer, they have different highest and best uses, and as such, are valued separately.
The most likely buyer for the subject properties would be a municipality or a community-oriented
group such as a school, charity, or social/religious organization. Marketing and exposure time would be at
least a year.
Page 95
Definitions
Appraisal
(noun) The act or process of developing an opinion of value; an opinion of value. (adjective) of or
pertaining to appraising and related functions such as appraisal practice or appraisal services.
Comment: an appraisal must be numerically expressed as a specific amount, as a range of numbers,
or as a relationship (e.g., not more than, not less than) to a previous value opinion or numerical
benchmark (e.g., assessed value, collateral value).
Assignment
A valuation service that is provided by an appraiser as a consequence of an agreement with the
client.
Assignment Conditions
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations,
jurisdictional exceptions, and other conditions that affect the scope of work.
Comment: Laws include constitutions, legislative and court-made law, administrative rules, and
ordinances. Regulations include rules or orders, having legal force, issued by an administrative agency.
Client
The party or parties who engage, by employment or contract, an appraiser and a specific
assignment.
Comment: client may be an individual, group or entity, and may engage and communicate with the
appraiser directly or through an agent.
Exposure Time
The estimated length of time that the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date of the
appraisal.
Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a
competitive and open market.
Page 96
Extraordinary Assumption
An assignment-specific assumption as of the effective date regarding uncertain information used in
an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.
Comment: uncertain information might include physical, legal, or economic characteristics of the
subject property; or conditions external to the property, such as market conditions or trends; or the
integrity of data used in an analysis.
Hypothetical Condition
A condition, directly related to a specific assignment, which is contrary to what is known by the
appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.
Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic
characteristics of the subject property; or about conditions external to the property, such as market
conditions or trends; or about the integrity of data used in an analysis.
Intended Use
The use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as identified
by the appraiser based on communication with the client at the time of the assignment.
Intended User
The client and any other party as identified, by name or type, as users of the appraisal or appraisal
review report by the appraiser, based on communication with the client at the time of the assignment.
Jurisdictional Exception
An assignment condition established by applicable law or regulation, which precludes an appraiser
from complying with a part of USPAP1. The Appraisal Foundation’s Appraisal Standards Board
announced that the current edition of USPAP will be extended by another year and will now be effective
until Dec. 31, 2023.
Marketing Time
The reasonable marketing time is an opinion of the amount of time it might take to sell a real or
personal property interest at the concluded market value or at a benchmark price during the period
immediately after the effective date of an appraisal.
1USPAP 2020-2021
ADDENDA
Page 97
Herring Realty Advisors
Addenda
Aerial Map
ADDENDA
Page 98
Herring Realty Advisors
Traffic Map
ADDENDA
Page 99
Herring Realty Advisors
Zoning Map
ADDENDA
Page 100
Herring Realty Advisors
ADDENDA
Page 101
Herring Realty Advisors
Statistics
ADDENDA
Page 102
Herring Realty Advisors
Flood Map
ADDENDA
Page 103
Herring Realty Advisors
ADDENDA
Page 104
Herring Realty Advisors
ADDENDA
Page 105
Herring Realty Advisors
ADDENDA
Page 106
Herring Realty Advisors
ADDENDA
Page 107
Herring Realty Advisors
ADDENDA
Page 108
Herring Realty Advisors
ADDENDA
Page 109
Herring Realty Advisors
Property Appraiser’s Record
ADDENDA
Page 110
Herring Realty Advisors
ADDENDA
Page 111
Herring Realty Advisors
ADDENDA
Page 112
Herring Realty Advisors
ADDENDA
Page 113
Herring Realty Advisors
Property Appraiser’s Record
ADDENDA
Page 114
Herring Realty Advisors
ADDENDA
Page 115
Herring Realty Advisors
ADDENDA
Page 116
Herring Realty Advisors
ADDENDA
Page 117
Herring Realty Advisors
Property Appraiser’s Record
ADDENDA
Page 118
Herring Realty Advisors
ADDENDA
Page 119
Herring Realty Advisors
ADDENDA
Page 120
Herring Realty Advisors