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Market Rent Study for

Bayside Marketplace, Parking


and Proposed Skyrise Tower
401 and 501 Biscayne Boulevard
Miami, Miami-Dade County, FL 33132









Prepared For: Mr. Henrique Torre
Director - Public Facilities Division
City of Miami
444 SW 2nd Avenue, 3rd Floor
Miami, FL 33130

Prepared By: Joseph J. Blake and Associates, Inc.
4000 Ponce de Leon Boulevard, Suite 410
Miami, FL 33146

Joseph J. Bl ake and Associ at es, I nc.
Real Estate Valuation and Consulting
4000 Ponce De Leon Boulevard, Suite 410 | Miami, Florida 33146 | Phone: 305-448-1663 | Fax: 305-448-7077 | www.josephjblake.com
Corporate Headquarters: 425 Broad Hollow Road, Suite 429 | Melville, New York 11747 | (516) 827-0222
Regional Offices: Atlanta | Boston | Chicago | Dallas | Los Angeles | Miami | New York City | San Francisco | Washington D.C.
Blake & Sanyu Alliance: Tokyo | Osaka | Nagoya | Sendai
April 29, 2014
Mr. Henrique Torre
Director - Public Facilities Division
City of Miami
444 SW 2nd Avenue, 3rd Floor
Miami, FL 33130

Re: Market Rent Study for
Bayside Marketplace, Parking and Proposed Skyrise Tower
401 and 501 Biscayne Boulevard
Miami, Florida 33132

Dear Mr. Torre:
As requested, we have prepared a market rent study of the property referenced above.
The purpose of this report is to provide opinions of the market and percentage rent for the
subject, assuming its continued use as festival retail center, Bayside Marketplace and associated
parking, as of the date of inspection, March 25, 2014. We have also provided our opinion of the
market rent and percentage rent for the subject, as proposed, which includes additional retail
space, additional parking spaces and the proposed Skyrise Tower, as of the date of inspection,
March 25, 2014. It is noted that the study is to result in specific conclusions regarding the market
rent. The opinions of market rent are in terms of cash or of financing terms equivalent to cash.
The property is currently developed with the Bayside Marketplace, a festival retail center with
associated parking. The allowable FLR, based on the original approvals for the development, were
267,000 SF for the retail component and 420,000 SF for the parking structures, approximately
1,200 parking spaces, 687,000 of FLR.
The property owner is considering additional development for the site that will include additional
parking of 216,660 SF above the existing parking garages, additional retail of 17,255 along the
ground floor of the parking garages and a new Skyrise Tower that will contain approximately
277,177 SF of which 4,470 SF will be set aside for the City of Miamis marina and fire department
offices. The increased approvals, which are based on a gross buildable square footage, have also
taken into consideration the actual square footage that was built on the site, after the original
approvals for the property in 1985.
April 29, 2014
Mr. Henrique Torre
Page 2 of 3


Buildable Component (FLR) Original Approvals (FAR) Increased Approvals (FLR)
Commercial (Retail and Office) 267,000 561,432
Parking SF 420,000 636,660
Less: City of Miami Space - (4,470)
Net Buildable FLR 687,000 1,193,622
Parking Spaces (Above and Below Grade) 1,242 1,944
Less: City of Miami Parking Spaces (42) (42)
Net Parking Spaces 1,200 1,902

The site that will be developed with the Skyrise Tower will require the relocation of some of the
City of Miamis offices and the parking that is associated with the Miamimarina, approximately
4,470 SF of office space and 42 parking spaces. This office space and the 42 parking spaces are
not included in the revenue generating components for the property.
Therefore, the revised approved developable square footage for the site is 1,193,622 SF, an FLR of
1.63, based on the size of the site. Within the City of Miamis zoning code, FLR is considered the
total gross building area, including parking and common areas. The proposed FLR of a property is
based on the site plan approvals for the property.
The subject consists of two contiguous parcels of land that contain a total of approximately
733,929 SF or approximately 16.85 acres of land. The tracts are irregular in shape and are level
and at street grade. The property is zoned "T6-8 O," Urban Core Transect District Open, under the
jurisdiction of the City of Miami, under the Miami 21 zoning code.
The site is owned by the City of Miami and leased to the owner of Bayside Marketplace, Bayside
Center Ltd. Partnership, a subsidiary of General Growth Properties. The center was completed in
1987. There are two separate leases in place for the retail and parking components both of which
originated in 1987 and were for terms of 45 years with two, 15-year options.
As of the date of value, the subject is being utilized as a festival retail center with associated
parking, subject to the development restrictions imposed by the original development approvals for
the Bayside Marketplace. For the purposes of this report, the subject will be analyzed based on the
original development approvals and under a second scenario with the additional proposed
development, based on the new proposed components and increased FLR.
This letter must remain attached to the report, which contains 70 pages plus related exhibits, in
order for the value opinion set forth to be considered valid. The ensuing report, in a self-contained
report, has been prepared in conformity with and is subject to the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards
of Professional Appraisal Practice of the Appraisal Foundation (USPAP). The report is subject to the
attached Assumptions and Limiting Conditions and Definition of Market Value.
We performed a market rental rate study for the subject in May of 2013. We have not provided
any other services regarding the subject within the prior three years, as appraisers or in any other
capacity.
April 29, 2014
Mr. Henrique Torre
Page 3 of 3


After an inspection of the subject, and analysis of pertinent physical and economic factors that
impact value, we are of the opinion that the market rent for the site underlying the Bayside
Marketplace and parking structures, assuming its continued use as a festival retail center, as of the
date of inspection, March 25, 2014, is:
$3,200,000/Year
THREE MILLION TWO HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.
We are of the opinion that the market rent for the site underlying the Bayside Marketplace, parking
structures and proposed Skyrise Tower, based on the proposed development plans, as of the date
of inspection, March 25, 2014, is:
$4,600,000/Year
FOUR MILLION SIX HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.
We invite your attention to the ensuing report, which details the documentation and analysis in
support of our conclusion. If you have any questions or require further information about the
ensuing report, please feel free to contact the undersigned. We thank you for retaining the
services of our firm for your valuation and related needs.

Respectfully submitted,

Joseph J. Blake and Associates, Inc.
DRAFT
Tracy Gaskins-Courtney
Assistant Director
State-Certified General Real Estate Appraiser
No. RZ2076



DRAFT
Ted Allen, MAI
Managing Partner
State-Certified General Real Estate Appraiser
No. RZ426

14-108-02 Bayside Marketplace Land
TABLE OF CONTENTS

___________________Joseph J. Blake and Associates, Inc.__________________
Real Estate Valuation and Consulting
Title Page
Transmittal Letter
Table of Contents
Executive Summary ......................................................................................................... 1
Photographs of the Subject .............................................................................................. 4
Certification of the Report ................................................................................................ 7
Assumptions and Limiting Conditions ................................................................................ 9
Identification of Report Format ......................................................................................... 11
Purpose of the Report ..................................................................................................... 11
Intended User and Use of the Report ................................................................................ 11
Pertinent Dates of Inspection, Report Value and Report ..................................................... 11
Definition of Market Value ................................................................................................ 11
Scope of the Report ........................................................................................................ 11
Identification of the Property ............................................................................................ 13
Current Use of the Subject ............................................................................................... 13
History of the Subject ...................................................................................................... 14
Area Analysis .................................................................................................................. 16
Neighborhood Analysis .................................................................................................... 23
Market Analysis ............................................................................................................... 28
Description of the Site ..................................................................................................... 49
Zoning and Taxes ............................................................................................................ 51
Highest and Best Use ...................................................................................................... 52
The Sales Comparison Approach ....................................................................................... 56
Reconciliation and Final Value .......................................................................................... 70

ADDENDA
Miami Dade County Property Record Cards
2013 Tax Bills
Zoning Information
Flood Zone
Legal Descriptions
Bayside Marketplace Lease (Retail)
Garage Parcel Lease
2013 Bayside Operating Statement
Site Plans
Engagement Contract
Qualifications of the Appraisers
14-108-02 Bayside Marketplace Land
EXECUTIVE SUMMARY

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
1
PROPERTY APPRAISED: Bayside Marketplace Land
PROPERTY ADDRESS: 401 and 501 Biscayne Boulevard
Miami, Miami-Dade County, FL 33132
FOLIO #: 01-0100-000-0525
01-0100-000-0522
01-0100-000-0523
PROPERTY LOCATION: East side of Biscayne Boulevard, at NE 4th Street, Miami,
Miami-Dade County, FL 33132
PURPOSE OF THE REPORT: The purpose of this report is to provide opinions of the
market and percentage rent for the subject, assuming its
continued use as festival retail center, Bayside Marketplace
and associated parking, as of the date of inspection, March
25, 2014. We have also provided our opinion of the market
rent and percentage rent for subject, as proposed, which
includes additional retail space, additional parking spaces
and the proposed Skyrise Tower, as of the date of
inspection, March 25, 2014. The opinions of market rent are
in terms of cash or of financing terms equivalent to cash.
PERTINENT DATES
Date of Inspection: March 25, 2014
Effective Date of Report: March 25, 2014
Effective Date of Report: March 25, 2014

HIGHEST AND BEST USE

As Improved: The existing use, a festival retail center and associated
parking with the proposed Skyrise Tower, subject to the
most recent approvals by the City of Miami.

As If Vacant: Construction of a festival retail development associated
parking and proposed Skyrise Tower up to the maximum
allowable FLR, per the most recent approvals by the City of
Miami.
14-108-02 Bayside Marketplace Land
EXECUTIVE SUMMARY

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
2
IMPROVEMENT DATA: The property is currently developed with the Bayside
Marketplace, a festival retail center with associated parking,
1,200 spaces within two, five-story parking garages. The
allowable FLR, based on the original approvals for the
development, is 267,000 SF for the retail component. The
actual square footage of the parking structures is
approximately 420,000 SF for a total of 687,000 SF of FLR.
The property owner is considered additional development
for the site that will include additional parking of 216,660 SF
above the existing parking garages, additional retail of
17,255 along the ground floor of the parking garages and a
new Skyrise Tower that will contain approximately 277,177
SF of net rentable area.
Therefore, the revised approved developable square footage
for the site is 1,193,622 SF, an FLR of 1.63, based on the
size of the site.
PARKING: Based on the original approvals for the site, there were
1,200 parking spaces to be built between two multi-story
parking structures, approximately 420,000 SF (350 SF per
space). Documents provided by the client indicate that there
are an additional 131 parking spaces on a surface lot that
are divided between Bayside parkers (89 parking spaces)
and the City of Miamis Miamimarina (42 spaces). The
developer of Skyrise Tower is required to relocate these 131
parking spaces to the existing parking structures. The
Skyrise Tower will be situated on this surface parking area.
The Skyrise developer will add 596 parking spaces for the
replacement and required parking for the Skyrise Tower
commercial space and 148 parking spaces below the Skyrise
Tower, for a total of 1,944 total parking spaces on the site,
upon completion of the additions to the property. Of the
total, 42 spaces will be assigned to the Miamimarina and are
not included in the revenue generating components of the
project, as proposed.
SITE DESCRIPTION: The subject consists of a two, contiguous parcels of land
that contain a total of approximately 733,929 SF or
approximately 16.85 acres of land. The tracts are irregular
in shape and are level and at street grade. The property is
zoned "T6-8 O," Urban Core Transect District Open, under
the jurisdiction of the City of Miami, under the Miami 21
zoning code. The site is owned by the City of Miami and
leased to the owner of Bayside Marketplace, Bayside Center,
Ltd, a subsidiary of General Growth Properties.
14-108-02 Bayside Marketplace Land
EXECUTIVE SUMMARY

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
3
CURRENT USE: As of the date of value, the subject is being utilized as a
festival retail center with associated parking, subject to the
development restrictions imposed by the original
development approvals for the Bayside Marketplace. For the
purposes of this report, the subject will be analyzed based
first on the original development and second with the
additional proposed development, based on the new
proposed components and FLR.
ZONING: "T6-8 O," Urban Core Transect District Open
Conclusions:
Market Rent As Is
$3,200,000/Year
THREE MILLION TWO HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural breakpoint and
an additional 15.00% percentage rent on gross parking revenues over a natural breakpoint.
Market Rent As Proposed
$4,600,000/Year
FOUR MILLION SIX HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural breakpoint and
an additional 15.00% percentage rent on gross parking revenues over a natural breakpoint.
14-108-02 Bayside Marketplace Land
PHOTOGRAPHS OF THE SUBJECT

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
4

Aerial Photo of Bayside Marketplace

Land Underlying the Retail Component

Land Underlying the Parking Garage Component
14-108-02 Bayside Marketplace Land
PHOTOGRAPHS OF THE SUBJECT

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
5

Hard Rock Cafe Surface Parking Area on East Side of Site

Surface Parking Area (Future Skyrise Site) View of Bayside from East Side of Site

Bayside Exterior Entrance to Parking Garages
14-108-02 Bayside Marketplace Land
PHOTOGRAPHS OF THE SUBJECT

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
6

Interior of Parking Garages Adjacent Property (American Airlines Arena)

Exterior of Shop Space Exterior Walkways

Exterior Seating Areas and Bay Walk Main Entrance
14-108-02 Bayside Marketplace Land
CERTIFICATION OF REPORT

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
7
We, the undersigned, certify that, to the best of our knowledge and belief:
Tracy Gaskins-Courtney and Ted Allen, MAI, have made a personal inspection of the
property that is the subject of this report.
As of the date of this report, Ted Allen, MAI has completed the continuing education
program for Designated Members of the Appraisal Institute.
As of the date of this report, Ted Allen, MAI, has completed the continuing education
requirements for designated members of the Appraisal Institute.
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.
Our compensation for completing this assignment is not contingent upon the development
or reporting of a predetermined value or direction in value that favors the cause of the
client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this report.
The report is not based on a requested minimum valuation, a specific valuation, or the
approval of a loan. In addition, our engagement was not contingent upon the report
producing a specific value and neither engagement, nor employment, nor compensation, is
based upon approval of any related loan application.
Our analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice.
The reported analyses, opinions and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute.
No one provided significant real property assistance to the persons signing this certificate.
The use of this report is subject to the requirements of the State of Florida relating to
review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission.
The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
14-108-02 Bayside Marketplace Land
CERTIFICATION OF REPORT

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
8
We have not performed any services regarding the subject within the prior three years, as
appraisers or in any other capacity.

After an inspection of the subject, and analysis of pertinent physical and economic factors that
impact value, we are of the opinion that the market rent for the site underlying the Bayside
Marketplace and parking structures, assuming its continued use as a festival retail center, as of the
date of inspection, March 25, 2014, is:
$3,200,000/Year
THREE MILLION TWO HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.
We are of the opinion that the market rent for the site underlying the Bayside Marketplace, parking
structures and proposed Skyrise Tower, based on the proposed development plans, as of the date
of inspection, March 25, 2014, is:
$4,600,000/Year
FOUR MILLION SIX HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.
We invite your attention to the ensuing report, which details the documentation and analysis in
support of our conclusion. If you have any questions or require further information about the
ensuing report, please feel free to contact the undersigned. We thank you for retaining the
services of our firm for your valuation and related needs.

Respectfully submitted,

Joseph J. Blake and Associates, Inc.
DRAFT
Tracy Gaskins-Courtney
Assistant Director
State-Certified General Real Estate Appraiser
No. RZ2076



DRAFT
Ted Allen, MAI
Managing Partner
State-Certified General Real Estate Appraiser
No. RZ426

14-108-02 Bayside Marketplace Land
ASSUMPTIONS AND LIMITING CONDITIONS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
9
General Assumptions and General Limiting Conditions
This Report is subject to underlying assumptions and limiting conditions qualifying the information
contained in the Report as follows:
The valuation estimate applies only to the property specifically identified and described in the
ensuing Report.
Information and data contained in the Report, although obtained from public record and other
reliable sources and, where possible, carefully checked by us, is accepted as satisfactory evidence
upon which rests the final expression of property value.
We have made no legal survey, nor have we commissioned one to be prepared, and therefore,
reference to a sketch, plat, diagram or previous survey appearing in the report is only for the
purpose of assisting the reader to visualize the property.
It is assumed that all information known to the client and relative to the valuation has been
accurately furnished and that there are no undisclosed leases, agreements, liens or other
encumbrances affecting the use of the property.
Ownership and management are assumed to be competent and in responsible hands.
No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing
or pending.
We, by reason of this report, shall not be required to give testimony as expert witness in any legal
hearing or before any Court of Law unless justly and fairly compensated for such services.
By reason of the Purpose of the Report and the Intended User and Use of the Report herein set
forth, the value reported is only applicable to the Property Rights Appraised, and the Report should
not be used for any other purpose.
Disclosure of the contents of this Report is governed by the By-Laws and Regulations of the
Appraisal Institute.
Neither all nor any part of the contents of this Report (especially any conclusions as to value, our
identity, or the firm with which we are connected, or any reference to the Appraisal Institute or to
the MAI Designation) shall be reproduced for dissemination to the public through advertising
media, public relations media, news media, sales media or any other public means of
communication without our prior consent and written approval.
We have not been furnished with soil or subsoil tests. In the absence of soil boring tests, it is
assumed that there are no unusual subsoil conditions or, if any do exist, they can be or have been
corrected at a reasonable cost through the use of modern construction techniques.
This report is based on the conditions of local and national economies, purchasing power of
money, and financing rates prevailing at the effective date of value.
We are not engineers, and any references to physical property characteristics in terms of quality,
condition, cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their
economic impact on the property. No liability is assumed for any engineering-related issues.
14-108-02 Bayside Marketplace Land
ASSUMPTIONS AND LIMITING CONDITIONS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
10
Unless otherwise stated in this report, we did not observe the existence of hazardous materials,
which may or may not be present on the property. The presence of substances such as asbestos,
urea-formaldehyde foam insulation, or other potentially hazardous materials, may affect the value
of the property. The market rent opinion is predicated on the assumption that there is no such
material on or in the property that would cause a loss in value. No responsibility is assumed for
any such conditions, or for the expertise or engineering knowledge required to discover them. The
client is urged to retain an expert in this field, if desired.
Toxic and hazardous substances, if present within a facility, can introduce an actual or potential
liability that may adversely affect marketability and value. Such effects may be in the form of
immediate clean-up expense or future liability of clean-up costs (stigma). In the development of
our opinion of value, no consideration was given to such liabilities or their impact on value. The
client releases Joseph J. Blake and Associates, Inc., from any and all liability related in any way to
environmental matters.
Possession of this report or a copy thereof does not imply right of publication, nor use for any
purpose by any other than the client to whom it is addressed, without our written consent.
Cash flow projections are forecasts of estimated future operating characteristics and are based on
the information and assumptions contained within the report. The achievement of the financial
projections will be affected by fluctuating economic conditions and is dependent upon other future
occurrences that cannot be assured. Actual results may well vary from the projections contained
herein. We do not warrant that these forecasts will occur. Projections may be affected by
circumstances beyond our current realm of knowledge or control.
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 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 for 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 we have no direct evidence relating to
this issue, we did not consider possible non-compliance with the requirements of the ADA in
estimating the value of the property.
Extraordinary Assumptions
This report is not based on any extraordinary assumptions.
Hypothetical Conditions
This report is not based on any hypothetical conditions.
14-108-02 Bayside Marketplace Land
INTRODUCTION

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
11
IDENTIFICATION OF REPORT FORMAT
This report is presented within a complete, self-contained format.
PURPOSE OF THE REPORT
The purpose of this report is to provide opinions of the market and percentage rent for the
subject, assuming its continued use as festival retail center, Bayside Marketplace and associated
parking, as of the date of inspection, March 25, 2014. We have also provided our opinion of the
market rent and percentage rent for the subject, as proposed, which includes additional retail
space, additional parking spaces and the proposed Skyrise Tower, as of the date of inspection,
March 25, 2014. It is noted that the study is to result in specific conclusions regarding the market
rent. The opinions of market rent are in terms of cash or of financing terms equivalent to cash. It
is noted that the study is to result in specific conclusions regarding the market rent. The opinions
of market rent are in terms of cash or of financing terms equivalent to cash.
INTENDED USER AND USE OF THE REPORT
The intended user of this report is the client, the City of Miami. The intended use of the report is
to assist the client in leasing decisions regarding the property. This report is not intended to be
relied upon by anyone other than its intended user or for any purpose other than that which is
stated here.
PERTINENT DATES OF INSPECTION, MARKET RENT AND REPORT
This report, with its analyses, conclusions and final expressions of market value, is specifically
applicable to the following pertinent dates:
Date of Inspection: March 25, 2014
Effective Date of Market Rent: March 25, 2014
Effective Date of Report: April 29, 2014

DEFINITION OF MARKET RENT
Market rent is defined as the rental income that a property would most likely command in the
open market; indicated by the current rents paid and asked for comparable space as of the date of
the appraisal
1


SCOPE OF THE REPORT
The scope of the assignment is relative to the intended use of the report. The following outlines
the extent of property inspection, market data collection, verification and analysis performed for
this assignment.

1
Appraisal Institute, The Dictionary of Real Estate Appraisal, 5
th
Edition (Chicago, Illinois; Appraisal Institute, 2010)
14-108-02 Bayside Marketplace Land
INTRODUCTION

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
12
Inspection
Tracy Gaskins-Courtney and Ted Allen, MAI, have made a personal inspection of the property that
is the subject of this report. The inspection was visual in nature, to assess the economic condition
of the property, in order to effectively compare it to other properties in the market. We are not
engineers, and we did not assess the property from the standpoint of its environmental integrity,
or to determine whether any latent defects were present.
Subject Physical and Economic Characteristics
Information regarding the subject was obtained from representatives of the City of Miami and a
representative of the subjects tenant. Site and building measurements were obtained from site
plans provided to the consultants. Interviews with both the owner and the tenant were conducted
for other relevant physical and economic data. The subjects year built and lease information was
obtained from public records and City of Miami officials. Information pertaining to the modifications
and additions proposed for the property were provided by the client and the proposed developer of
the Skyrise Tower.
Type of Analysis Applied
The client has requested a market study be performed on the property such that market rents for
the facility are determined assuming its continued use as a waterfront restaurant. As such, the
Cost, the Sales Comparison and Income Capitalization Approaches to value were not performed as
a market value for the subject was not requested. We have included a Sales Comparison Approach
for the valuation of the site in order to determine an appropriate rental rate for the ground lease.
It is noted that the study is to result in specific conclusions regarding the market rent under the
previously described scenario.
Extent of Data Research
General economic data and market data were reviewed. Comparable sales were compiled from
published sources, including CoStar Comps and Loopnet. Market data compiled for this report
include a variety of land sales. These data are a result of research specific to the subject's area
and pertinent to the subject. The data were verified by buyers, sellers, brokers, managers,
government officials or other sources regarded as knowledgeable and reliable.
Information specific to the subjectsuch as site dimensions, subject history and legal description
was provided by the City of Miami and public records and is assumed to be correct. The
information appeared reliable, based on an inspection of the property on March 25, 2014. Other
information, such as zoning and tax records, was obtained from governmental sources. Specific
estimates concerning land value, etc., reflect our judgment based on interpretation of the market
data. The reasoning behind such estimates is illustrated throughout the relevant approach to
value.
14-108-02 Bayside Marketplace Land
INTRODUCTION

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
13
IDENTIFICATION OF THE PROPERTY
The property is currently developed with the Bayside Marketplace, a festival retail center with
associated parking, within two, five-story parking garages. The allowable FLR, based on the
original approvals for the development, is 267,000 SF for the retail component. The actual square
footage of the parking structures is approximately 420,000 SF for a total of 687,000 of FLR.
The property owner is considered additional development for the site that will include additional
parking of 216,660 SF, additional retail of 17,255 along the ground floor of the parking garages
and a new Skyrise Tower that will contain approximately 277,177 SF.
Therefore, the revised approved developable square footage for the site is 1,193,622 SF, an FLR of
1.63, based on the size of the site.
Buildable Component (FLR) Original Approvals (FAR) Increased Approvals (FLR)
Commercial (Retail and Office) 267,000 561,432
Parking SF 420,000 636,660
Less: City of Miami Space - (4,470)
Net Buildable FLR 687,000 1,193,622
Parking Spaces (Above and Below Grade) 1,242 1,944
Less: City of Miami Parking Spaces (42) (42)
Net Parking Spaces 1,200 1,902

The subject consists of two contiguous parcels of land that contain a total of approximately
733,929 SF or approximately 16.85 acres of land. The tracts are irregular in shape and are level
and at street grade. The property is zoned "T6-8 O," Urban Core Transect District Open, under the
jurisdiction of the City of Miami, under the Miami 21 zoning code.
The property is commonly known as:
Bayside Marketplace Land
401 and 501 Biscayne Boulevard
Miami, FL 33132
The property is also identified by the Miami-Dade County Tax Assessor's Office as tax parcel
numbers 01-0100-000-0523 (Parking Garage Land), 01-0100-000-0525 (Marketplace Land).
The legal description of the property is found in the Addenda. The legal description was provided
by representatives of the owner and is assumed to be correct. We have not commissioned a
survey, nor have we had one verified by legal counsel. Therefore, we suggest legal counsel verify
this legal description before it is used for any other purpose.
CURRENT USE OF THE SUBJECT
As of the date of value, the subject is being utilized as a festival retail center with associated
parking, subject to the development restrictions imposed by the original development approvals for
the Bayside Marketplace. For the purposes of this report, the subject will be analyzed first based
on the original development and second with the additional proposed development, based on the
new proposed components and FLR.
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HISTORY OF THE SUBJECT
Bayside Marketplace was part of the Festival Marketplace concept developed by the Rouse
Companies during the 1980s in the major urban markets across the country.Festival marketplaces
were a leading downtown revitalization strategy in American cities during the 1970s and 1980s.
The guiding principles are a mix of local tenants instead of chain stores, design of shop stalls and
common areas to energize the space, and uncomplicated architectural ornament in order to
highlight the goods.
In the second half of the 20th century, Rouse and his company became major developers of
suburban strip shopping centers and pioneered large shopping malls. In many cities, these were
seen as escalating the failure of retail businesses and causing further deterioration of older,
downtown core areas.
In the late 1970s, Rouse and his company responded to critics of their suburban development by
studying inner cities for similar development potential despite the widely held belief of investors
and developers that downtown areas were both dirty and dangerous and not desirable destinations
for their residents. In response, inspired by projects such as Ghirardelli Square in San Francisco,
the Rouse Company worked with architects, urban planners, and city governments to develop the
festival marketplace concept as a way to reverse the negative trends and to attract both suburban
residents and out-of-town visitors to the downtown areas.
A typical festival marketplace would include local involvement in the creation of a safe and trendy
attraction intended to serve as a major catalyst for other redevelopment. Generally, a festival
marketplace offers major restaurants, specialty retail shops, and an international food court. Often,
there is an exciting nightlife with music, dancing and live entertainment. The more successful
projects seemed to benefit from waterfront locations and secure parking.
The City of Miami has historically been protective of its waterfront property and owns the majority
of the sizeable tracts of land that border Biscayne Bay, along the downtown waterfront and in
Coconut Grove to the south. In order to protect against unrestrained development, strict
development regulations in terms of height and density have been implemented through zoning
designations and design criteria. The City of Miami retained the land underlying the Bayside
Marketplace and leased the property to the original developer, the Rouse Companies, in 1985 prior
to the commencement of the construction.
The original lease was for a term of 45 years with two 15-year options commencing after the
construction of the project was complete and the occupancy of the property had reached at least
80%. The lease calls for the greater of the minimum base rent or 35% of net rental income
available for distribution. With the base rent increasing periodically.
Rental Years Minimum Base Rate
1-2 $325,000.00
3-6 $650,000.00
7-35 $1,000,000.00
36-45 Average of the last 3 years
Within the lease, the City of Miami established design and density parameters for the property.
The tenant is responsible for all operating expenses and property taxes.
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There is a separate lease for the parking areas that serve Bayside. This lease is also for a term of
45 years with two 15-year options. This lease calls for a base rental payment of $10,000 per
annum with additional rent of $80,000 when the parking is generating sufficient revenue to pay
that additional rent and then 50% of net income, after distributions.
The performance of the Bayside Marketplace has fluctuated over the years with sales in the first
year exceeding expectations and then falling sharply in the 1990s. The center struggled through
the 1990s and was adversely affected by the drop in tourism associated with 9/11. Many of the
visitors to the center are international visitors to Miami.
On November 12, 2004, the Rouse Company was sold to Chicago-based General Growth Properties
Inc., another shopping mall developer and Baysides ownership changed to General Growth
Properties. General Growth Properties filed for bankruptcy in 2009 and put Bayside on the market.
GGP has managed to emerge from bankruptcy and has posted a profit for 2011. Baysides sales
and occupancy have been on the upswing recently but many of the leases currently in place were
negotiated during the economic downturn.
Most recently, Bayside is in the process of renegotiating their ground lease with the City of Miami
for the underlying site. A developer is interested in subleasing a portion of the site, approximately
80,797 SF or 1.85 acres for the development of a Skyrise Tower, a retail-office-entertainment
structure that will be the focal point of the City of Miamis bayfront. The tower will occupy a strip
of land situated to the east of the Bayside Marketplace, currently utilized for surface parking. The
proposed square footage of the structure is 277,177 SF. Based on the Miami 21 zoning code,
street level retail bays will be added to the parking garages as part of the modifications. This is
necessary to improve the appearance of the parking garages at street level and comply with the
current zoning code.
Based on the original approvals for the site, there were 1,200 parking spaces to be built between
two multi-story parking structures, approximately 420,000 SF (350 SF per space). Documents
provided by the client indicate that there are an additional 131 parking spaces on a surface lot that
are divided between Bayside parkers (89 parking spaces) and the City of Miamis Miamimarina (42
spaces). The developer of Skyrise Tower is required to relocate these 131 parking spaces to the
existing parking structures. The Skyrise Tower will be situated on this surface parking area.
The Skyrise developer will add 596 parking spaces for the replacement and required parking for
the Skyrise Tower commercial space and 148 parking spaces below the Skyrise Tower, for a total
of 1,944 total parking spaces on the site, upon completion of the additions to the property. Of the
total, 42 spaces will be assigned to the Miamimarina and are not included in the revenue
generating components of the project.
We are not aware of any other real property transactions pertaining to the subject in the three
years prior to the date of value, other than that which is reported here.
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INTRODUCTION
The Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area (MSA) encompasses
Broward, Miami-Dade, Monroe and Palm Beach counties. The subject is located in Miami-Dade
County, Florida. Miami-Dade County is located in the southeast portion of Florida's east coast and
is the southernmost county situated on Florida's mainland. Miami is the county seat of Miami-Dade
County, which includes many other incorporated areas such as Miami Beach, Key Biscayne, Coral
Gables, South Miami, Pinecrest, Aventura, Hialeah and Homestead.
The major portion of the county is on the west side of Biscayne Bay, the entryway of all docking
facilities in the city. The Atlantic Ocean is the eastern boundary of the county. The county is
accessible via four causeways in the city proper. Miami-Dade County is Florida's largest county,
with an estimated population of 2,547,708 persons living in a 1,946 square-mile area.
Miami-Dade County boasts an excellent geographic location, allowing it to serve as a gateway to
the Caribbean and Latin America. A tourist destination in itself, it is also within a day's drive to
some of Florida's major tourist destination cities, as shown in the following table:
City Miles From Miami
Fort Lauderdale 25
West Palm Beach 74
Key West 160
Orlando 232
Daytona Beach 259
Clearwater 286
Tampa 309
Source: Rand McNally Florida Mileage Chart

Development and growth in Miami-Dade County are often attributed to the climate, which draws
the northern United States tourist trade during the winter months. Miami-Dade County remains to
be recognized as a center for international business, especially with Latin America, the Caribbean,
and increasingly with Europe and Asia.
Tourism, construction and trade are the area's economic mainstays, with international commerce
and finance becoming rapidly growing segments of the economy. Area development can be
characterized as light industrial/commercial in the western and northern sections of the city; the
southern and southwestern sections consist of residential and light industrial/commercial activity.
The growth in business relations between Latin America and Miami-Dade County has been
accompanied by ongoing growth in tourism from Latin America. Latin American tourists who enjoy
shopping in the United States represent a major demand segment in Miami-Dade County's lodging
and retail markets.
POPULATION
Miami-Dade County officials project that the local economy's outlook is one of growth. Annual
population increases are projected to continue. This growth may be attributed to Miami-Dade
County's continuing emergence as an international business center, which has the effect of
broadening the area's economic base and reducing the impact of cyclical variations on the nation's
economy.
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Miami-Fort Lauderdale-West Palm Beach MSA Population Trends
County 2013
2009-2013
Average Annual Growth
Broward 1,833,666 1.42%
Miami-Dade 2,598,976 1.34%
Monroe 75,022 0.81%
Palm Beach 1,389,931 1.58%
Florida 19,661,546 1.21%
Source: Florida Trend Economic Yearbook April 2013

The largest age group represented in Miami-Dade County is the population aged 40 to 64, followed
by persons ranging in age from 20 to 39 years old. Younger children aged 0 to 14 years are the
third largest age group within this area. Retirees aged 65 and over represent a small group that
comprises only 14.7% of the local population. Miami-Dade County has a younger overall
population than the state of Florida as a whole. The following chart displays the regional
population by age.
County 014 1519 2039 4064 65+ Total
Broward 17.9% 6.1% 26.3% 35.0% 14.8% 1,833,666
Miami-Dade 17.5% 6.3% 27.7% 33.9% 14.7% 2,598,976
Monroe 12.7% 4.1% 23.5% 41.0% 19.0% 75,022
Palm Beach 16.5% 5.8% 23.0% 32.6% 22.2% 1,389,931
Florida 17.2% 6.0% 25.1% 33.3% 18.3% 19,661,546
Source: Florida Trend Economic Yearbook April 2013

PERSONAL AND HOUSEHOLD INCOME
With regard to per capita income, the Miami-Fort Lauderdale-West Palm Beach MSA exhibits
income levels that compare favorably with national averages. Historical and current per capita
personal income for the counties within the Miami-Fort Lauderdale-West Palm Beach MSA is
summarized on the following chart:
Per Capita Personal Income
Miami-Fort Lauderdale-West Palm Beach MSA
County 2012 2013
Broward $45,540 $44,786
Miami-Dade $41,106 $39,617
Monroe $65,651 $63,313
Palm Beach $59,096 $55,980
Florida $41,903 $41,418
Source: Florida Trend Economic Yearbook April 2013

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ECONOMIC BASE/EMPLOYMENT
The following table outlines total employment and employment by county for the Miami-Fort
Lauderdale-West Palm Beach metropolitan statistical area:
County Labor Force Employed Jobless Jobless Rate
Broward 1,025,039 971,664 53,375 5.2%
Miami-Dade 1,276,537 1,186,585 89,952 7.0%
Monroe 48,691 46,882 1,809 3.7%
Palm Beach 636,413 595,815 40,598 6.4%
Region 3,046,680 2,800,846 185,734 5.6%
Florida 9,395,000 8,796,000 599,000 6.4%
Source: Florida Department of Economic Opportunity, November 2013

According to the Florida Department of Economic Opportunity, the total civilian labor force in
Miami-Dade County as of November 2013 was 1,276,537, of which 1,186,585 were employed and
89,952 were unemployed. The unemployment rate was 7.0%. The following chart outlines the
labor force, employment and unemployment information for Miami-Dade County and Florida.
Area
Civilian Labor
Force
Number
Employed
Number
Unemployed
Unemployment
Rate
Miami-Dade 1,276,537 1,186,585 89,952 7.0%
Florida 9,395,000 8,796,000 599,000 6.4%
Source: Florida Department of Economic Opportunity, November 2013

The major industries in MiamiDade County with more than 40,000 total employees are indicated
below. The largest major industry sector was Health Care and Social Assistance, followed by Retail
Trade, and then Accommodation and Food Services.
Major Industries in Miami-Dade County
Industry Establishments Employees
Health Care and Social Assistance 8,722 140,920
Retail Trade 11,754 121,018
Accommodation and Food Services 5,096 93,054
Education Services 871 72,866
Public Administration 242 65,813
Wholesale Trade 9,254 61,358
Professional, Scientific & Technical Svc. 12,921 58,100
Transportation and Warehousing 3,001 55,781
Admin., Support, Waste Mgmt., Remediation 4,371 55,502
Source: Florida Research and Economic Database

Miami-Dade County is a recognized banking and finance center, with over 120 financial institutions
featuring a growing community of international banks serving Latin America. This international
activity has emerged due to the more than 150 multi-national firms that have established their
offices in Miami-Dade in order to direct their Latin American, Caribbean and in some cases,
worldwide operations.
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The following chart outlines the average wage information for Miami-Dade County and Florida. The
average hourly wage estimate for Miami-Dade County in 2013 is $19.03. This would be equivalent
to $761 per week or $39,619 per year, assuming a 40-hour week worked the year around.
Area Average Weekly Wage
Miami-Dade County $761
Florida $796
Source: Florida Trend Economic Yearbook April 2013
EDUCATION
Miami-Dade County is served by more than 900 public and private secondary and elementary
schools. Seven colleges and universities are located in the county.
Miami-Dade College currently offers more than 175 programs and 1,500 courses, with enrollment
of over 160,000 students. The University of Miami in Coral Gables has more than 15,000 degree-
seeking students and offers 150 undergraduate and 192 graduate degree programs. Florida
International University, with two campuses, 36,000 students and more than 800 full-time faculty,
received the nations fifth largest philanthropic gift in the history of public higher educationthe
Wolfsonian Museum on Miami Beach, with 70,000 artifacts worth an estimated $75 million. It was
donated to the college in 1997 and features a wide array of objects ranging from high art to pop
culture. Four-year degree programs are also available at Barry University, St. Thomas University,
Florida Memorial College and Miami Christian College.
HOUSING
According to the 2010 U.S. Census, the total number of occupied households throughout Miami-
Dade County was 989,435. This represents 827,556 households and a total of 2.88 persons per
household for the 2006-2010 timeframe. The percentage of housing that is multi-family is also a
reflection of the density of Miami-Dade Countys population and the countys development.
The concurrency provision in the 1985 Growth Management Act requires that all water, sewer,
roads, schools, parks and storm water facilities necessary to support existing improvements be in
place before new construction is permitted. Thus, if a location is deficient in one or more
categories, the affected infrastructure component must be expanded to support any new
construction. A developer may choose to provide the various facilities and/or services necessary to
support their project. However, in some cases the expense associated with offsite improvements
may render a project economically unfeasible.
TRANSPORTATION
Due to its strategic location and design, Miami International Airport (MIA) has exceeded JFK as the
number one airport in the country in terms of handling international cargo. The airport
administration has embarked on a $5.4 billion capital improvement plan that includes an extensive
ground transportation component.
An FAA study indicated that MIA continues to grow faster than nearly any other airport in the
nation, as traffic between the United States and Latin America outpaces that of nearly every other
region. To meet this demand, the airport continues a massive expansion of its facilities, including
adding a fourth runway.
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Also, $1.3 billion are earmarked for a four-story transit hub and new roads east of the airport.
Once the 25-acre hub is complete, passengers will shuttle between the terminal and the hub,
called the Miami Intermodal Center, aboard automated trains. It will be a central destination and
departure point for Amtrak, Tri-Rail, Metrorail, Greyhound, county buses and rental cars. It is to
connect to the Port of Miami, so that cruise passengers arriving by plane will be able to hop onto a
train that will take them to the port.
The Port of Miami is a leader in the maritime industry and home to nearly a dozen of the worlds
most distinguished cruise lines. The port offers more cargo sailings to more destinations in the
Western hemisphere than any other port, and offers access to virtually every port in the world.
Metrorail is a 21-mile rapid transit system on an elevated railway providing access to Downtown
Miami from portions of both south and north Miami-Dade County. It connects with Metromover, a
30-station, five-mile system, that loops through the center of Downtown Miami's CBD. Metrobus
provides the feeder system to Metrorail and bus service to all other parts of Miami-Dade County.
A network of 5,640 miles of roadway serves Miami-Dade County, of which I-95, I-75, Floridas
Turnpike, and the Palmetto Expressway (SR-826) are the most utilized north/south highways,
while SR-112, SR-826 and SR-836 are the most utilized east/west expressways. US-1 and SR-A1A
are also components of this network. Other primary thoroughfares include I-395 (east/west), I-195
(east/west), SR-9, SR-94, SR-874, US-27, US-41 and US-441.
TOURISM/RECREATION
Known mainly for its trendy nightclubs and oceanfront resorts, Miami-Dade County is also a
recognized center for the fine arts and the performing arts, offering an array of enriching cultural
activities. These include the Miami Art Museum, Museum of Contemporary Art, Miami Art Central,
Wolfsonian-FIU, and the Lowe Art Museum, which are filled with collections and exhibitions from
all parts of the world. Broadway plays, the Repertory Theater, the Philharmonic, the Opera Guild,
and a large number of historical attractions and exhibits are also favorites.
Every year, numerous art festivals make their homes in Miami, including the world-renowned
Coconut Grove Arts Festival and Art Basel.
The Miami Beach Symphony Orchestra and the Greater Miami Opera Association both offer top-
notch performances throughout the year. In addition, the Coconut Grove Playhouse, the Actors
Playhouse and the Gusman Center features a variety of plays and dance pieces from local, regional
and national troupes.
MEDICAL
According to the Greater Miami Chamber of Commerce, Miami-Dade County boasts two major
medical networks: the Jackson Health System and Baptist Health South Florida. Jackson Health
System, the largest group of medical services in the Southeastern United States, is assembled in a
medical complex just west of Downtown Miami. At its hub is the University of Miami School of
Medicine/Jackson Memorial Medical Center, ranked in the top 10 of more than 8,000 hospitals in
the nation and situated in the city limits of Miami. In Miami-Dade County alone, there are more
than 29,000 health care professionals and 28 hospitals. The extensive network of community
hospitals includes: Mount Sinai Medical Center, Columbia Cedars Medical Center, Hialeah Hospital,
Baptist Hospital, Jackson Memorial Hospital, Mercy Hospital and Miami Children's Hospital.
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UTILITIES
The following utility companies serve Miami-Dade County:
Telephone: AT&T
Electric: Florida Power and Light
Gas: Florida Gas Transmission Company
Water and Sewer: Miami-Dade Water & Sewer Department

COMMUNICATIONS
Superior communication facilities are available in the area. Telephone service is consistently fast
and efficient on local, out-of-town and international calls. Multilingual telephone operators are
available for assistance on foreign calls, an important factor for businesses with Latin American
operations in Miami-Dade County rather than in South America. There are 12 television stations,
three cable systems, 28 radio stations, four daily newspapers, seven weekly newspapers, three
monthly magazines and an assortment of other periodicals servicing Miami-Dade County.
CONCLUSION
An analysis of South Florida and more specifically, Miami-Dade County, demonstrates that the area
has historically been on a path of growth. Previous population growth is primarily due to in-
migration, which exhibits a trend toward an increasing number of working-aged families moving to
the area. Most of the growth within the area is occurring towards the southwestern portion of the
region.
The recent recession appears to have significantly affected the values of the Countys office,
industrial, commercial and residential properties, with increased vacancies appearing in office
complexes, industrial neighborhoods, and shopping centers that historically have been fully
occupied, and homes declining in value or falling into foreclosure.
These trends however, are not unique to Miami-Dade County or the South Florida area. They are
common throughout the State of Florida. Despite the effects of the recent recession, many of the
factors that lead to Miami-Dade Countys historical success remain in place. Therefore, it can be
surmised that once the effects of the recent recession subside, the county will likely continue to
grow.
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LOCATION
The subject is located on the east side of Biscayne Boulevard (US-1) at NE 4
th
Street, north of
Miamis Bayfront Park and south of the American Airlines Arena. Miamimarina, the city marina, is
located along the subject, to the east, in Biscayne Bay and the causeway to the Port of Miami, is
directly north. Bayside Marketplace and Bayfront Park are the primary tourist attractions that
highlight Miamis downtown neighborhood. There is a bay front walkway that commences at
Chopin Plaza near the Intercontinental Hotel and travels north to the American Airlines Arena,
through the Bayside Marketplace. The subjects neighborhood is considered the Miami Central
Business District (CBD) of Miami, and can be defined by variations in dominant land use, in rent
and occupancy levels, in the credit worthiness of occupants, and in the ages of buildings.
Over the past decade the Miami CBD has seen tremendous growth. Miami's downtown employee
population has grown 27% in ten years. More recently, the downtown area has experienced
revitalized community interest and growth. Much of the growth has been from large scale
residential and mixed-use projects aimed at drawing residents back into Miamis CBD and the
Brickell Avenue corridor. The area has become popular as an evening and weekend destination
with the addition of retail, restaurants and night clubs within some of the developments.
The boundaries for the downtown district are limited to a relatively well-defined area as are most
central business districts. The eastern boundary is Biscayne Bay. Development in the downtown
area runs almost the entire length of Biscayne Bay, varying from offices and hotels to outdoor
malls and parks. The western boundary for the downtown district is I-95. Primary land use beyond
I-95 is less intense with a mixture of low- to mid-rise residential and commercial buildings. The
southern boundary for the neighborhood is the Miami River. The northern boundary for the
neighborhood is Interstate-395.
ACCESSIBILITY
Metrorail, Miami's 22-mile elevated rapid transit system with 22 stations, transports over 22,000
people per day. Metromover, located adjacent to the east of the subject, has three different loops:
Downtown, Omni and Brickell. There are nine stations covering a 1.9-mile loop in the downtown
area, with links to Metrorail to provide easy access to downtown businesses, shopping and cultural
facilities. The Metrorail and Metromover schedules are integrated into the 60 Metrobus routes
covering all of Miami-Dade County.
Transportation to and from the downtown area is provided via many different routes. I-95 runs
north and south on the western border of the CBD. Flagler Street bisects the district running
east/west. SR-836, the primary east/west expressway, provides access to the CBD from the
western portions of Miami-Dade County and the Miami International Airport. Biscayne Boulevard
(US-1) runs north/south through the downtown area along the eastern portion of the CBD.
DEVELOPMENT
Miamis CBD has recently experienced a historic residential construction boom and is being
transformed into more of a mixed use neighborhood featuring shopping, working, living and
entertainment venues. A major investment in infrastructure is also underway to facilitate the new
development. Recent upgrades to the area include $12 million in renovations to Flagler Street, the
expansion of the Port of Miami and the Brickell Village revitalization.
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The newly-completed residential projects within the neighborhood will be a large factor in the
CBDs transformation from a banking and legal center to a 24-hour city. There have been several
projects serving as catalysts for the growing downtown district. The two major projects that were
developed in the early 1980s include Bayfront Park and the Bayside Marketplace. These projects
were intended to revitalize the CBD, specifically the waterfront.
Miami Bayfront Park is located between the Bayside Marketplace project on the north and Miami
Center on the south, is a 28-acre park that has been redesigned by world-renowned sculptor
Isasmu Naguchi. The layout includes a natural amphitheater, an outdoor cafe, a rock garden, a
monumental fountain, a light tower and a bay walk.
Downtown Miami also benefits from Flagler's Gusman Cultural Center with its array of programs
from ballet to jazz, the James L. Knight Convention Center, and the Cultural Center for Fine Arts.
The financial and business backbone of the CBD is enhanced by dozens of foreign banks, several
national law firms and several national accounting firms.
According to realtor.com, condominiums/townhomes in the subjects zip code (33132) are listed
between $60,000 and $8,830,000. Rentals within the subjects zip code have monthly rental rates
ranging from $1,250 to $20,000.
Ring Study Map

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The following are the demographics for the 1-, 2- and 3-mile radius surrounding the subject:
Demographics
2013 2018
Radius 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile
Population 30,275 110,783 209,123 33,378 119,690 223,546
Households 15,945 51,791 91,798 17,728 56,481 98,677
Families 5,560 22,337 43,860 6,091 23,955 46,550
Average Household Size 1.75 2.06 2.04 1.75 2.03 2.20
Owner Occupied Housing Units 3,464 11,142 10,439 3,943 11,795 24,299
Renter Occupied Housing Units 12,481 37,666 41,352 13,786 44,686 74,378
Median Age 34.6 36.4 37.4 35.1 36.7 37.8
Population by Age
0 - 4 4.8% 4.4% 4.6% 4.7% 4.3% 4.6%
5 - 9 3.5% 3.5% 4.0% 3.4% 3.8% 4.2%
10 - 14 2.3% 3.8% 4.3% 2.7% 3.7% 4.2%
15 - 19 2.6% 7.7% 7.4% 2.5% 7.7% 7.2%
20 - 24 8.6% 22.5% 19.9% 9.0% 21.8% 19.4%
25 - 34 29.2% 16.7% 16.0% 27.5% 15.9% 15.3%
35 - 44 19.2% 13.0% 13.5% 17.9% 12.3% 12.6%
45 - 54 12.4% 10.0% 10.5% 12.3% 10.5% 11.1%
55 - 64 9.0% 6.8% 7.3% 9.8% 7.9% 8.5%
65 - 74 5.1% 4.2% 4.7% 6.4% 4.5% 5.1%
75 - 84 2.3% 1.8% 2.0% 2.8% 1.9% 2.1%
85+ 0.8% 0.0% 0.0% 0.9% 0.0% 0.0%
Households by Income
<$15,000 26.70% 12.90% 14.60% 24.80% 9.30% 10.70%
$15,000 - $24,999 10.10% 11.80% 13.10% 7.00% 11.00% 12.40%
$25,000 - $34,999 11.20% 12.30% 13.40% 10.00% 12.30% 13.40%
$35,000 - $49,999 13.50% 12.50% 12.50% 13.00% 12.60% 12.60%
$50,000 - $74,999 13.30% 6.70% 6.00% 13.20% 8.50% 8.00%
$75,000 - $99,999 8.00% 8.10% 7.00% 9.70% 11.10% 9.60%
$100,000 - $149,999 10.40% 2.90% 2.70% 13.90% 3.70% 3.40%
$150,000 - $199,999 3.00% 3.60% 3.20% 3.90% 4.10% 3.60%
$200,000+ 3.90% 3.60% 3.20% 4.40% 4.10% 3.60%
Median Household Income $36,712 $55,331 $52,565 $43,315 $65,508 $61,784
Average Household Income $60,701 $26,446 $23,387 $71,742 $31,452 $27,566
Per Capita Income $32,590 $26,446 $23,387 $38,605 $31,452 $27,566
Population Area State National
Households 1.97% 0.99% 0.71%
Families 2.14% 0.98% 0.74%
Owner HHs 1.84% 0.87% 0.63%
Median Household Income 2.62% 1.32% 0.94%
3.36% 3.47% 3.03%

Source: US Bureau of the Census, 2000 Census of Population and Housing, and ESRI forecasts for 2010 and 2015
14-108-02 Bayside Marketplace Land
NEIGHBORHOOD ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
27
LIFE CYCLE
A neighborhoods life cycle usually consists of four stages. The growth stage, a period during
which the neighborhood gains public favor and acceptance; stability, a period of equilibrium
without marked gains or losses; decline, a period of diminishing demand; revitalization, a period of
renewal, modernization, and increasing demand.
2

The subjects area is approximately 95% built-out with a variety of retail, office and cultural
buildings. There is limited land available for future development. The subjects neighborhood is
considered to be in the revitalization stage of its development with a number of large-scale
projects underway for existing property and any remaining vacant land. Miamis CBD appears to be
rebounding from the economic recession and there are over 20 new residential projects planned or
under construction for the area that will add over 2,500 units within the next three years. There is
substantial investment in the area from abroad. Projections from this sector are difficult to gauge.
Levels of investment from various parts of the world seem to rise and fall based on the economic
conditions in that particular area rather than in the United States.
CONCLUSION
In conclusion, we researched all the germane influences that could possibly affect the value of
properties in the area. This research showed that the neighborhood is being well maintained and
does not illustrate factors that could be classified as negative or undesirable. The subject is located
in the heart of the major employment centers in Miami-Dade County. Overall, several factors have
combined for the success of this area. Accessibility, location, and demographics have been a
positive influence. It is our opinion that the neighborhood should experience continued
revitalization due to the solid foundation that is currently in place.

2
Appraisal Institute, The Appraisal of Real Estate, 14
th
Ed. (Chicago, Illinois: Appraisal Institute, 2013)
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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
28
MIAMI-DADE COUNTY RETAIL MARKET
According to the Reis Observer, fourth quarter 2013; Miami-Dades low development profile may
be raised if developers proposing several huge projects have their way. Development here has not
been easy, even when market conditions lean favorably toward it. For one thing, an inviolable
boundary protecting the wetlands in the western reaches of the South Florida counties (now under
challenge by the way) has prevailed against development of all types. And land is expensive and
relatively scare otherwise.
In downtown Miami, the huge planned Miami Worldcenter mixed-use development has attracted
commitments from Macys (195,000 SF) and Bloomingdales (120,000 SF) to anchor a 475,000 SF
retail mall component, the Miami Herald reported in December. Late 2016 openings are
anticipated. Miami Worldcenter Associates is master developer. A total of 505,000 SF of retail are
under development for completion in June of 2015 at the Related Groups three tower $1.05 billion
Brickell City Center mixed-use development in the CBD. North Miamis $3 billion Biscayne Landing
master planned development from Boca Developers has 850,000 SF of retail in the pipeline.
Developer Turnberry Associates is proposing a violation of the sacrosanct urban development
boundary (UDB) with plans for a huge upscale mall-entertainment complex to the west. In
addition, an early 2014 ground breaking is anticipated for the $1 billion, 120-acre Downtown Doral
mixed-use projected planned by developers Codina Partner and Lennar. Build-out plans include
180,000 SF of retail.
Development otherwise has been sparse. Including 102,000 SF in the expansion of Dadeland Mall,
only 170,000 SF of retail will comprise the 2013 completion total (all had delivered per the date of
this report). In addition to Brickell CityCenter, a 416,000 SF IKEA free standing project is underway
in western suburban Sweetwater. Also a February ground breaking is planned for 475,000 SF of
retail at the River Landing mixed-use development in Miami. Indeed, the standard community and
neighborhood center sector sees little activity, only 13,600 SF of such space was completed all told
in 2013. Only a single project, the 60,500 SF Grove Village Shopping Center, scheduled for delivery
in March in Miami, was underway per the report date. Only one power center, with an unspecified
construction schedule, is found in the planned proposed pipeline.
Not surprisingly, both the community-neighborhood and power center markets are tight. Reis put
respective third quarter vacancies at 7.1% and 4.6%, down 10 and 20 basis points year over year.
Vacancies, in both, run well below rates reported for their respective national markets (10.5% and
5.6%). The low-key community neighborhood center market saw 30,000 SF of net absorption year
to date through the third quarter, a rough doubling of its negligible portion of new supply. Rent
growth in both markets has been positive but anemic. At $24.47/SF and $20.86/SF, asking and
effective averages for community-neighborhood center space were up 0.4% each for the quarter
and were up 0.8% and 0.7% year over year. A small sum of negative net absorption in October
was accompanied by increases of 0.1% for both rates (and no change in vacancy). The third
quarter mean asking price for non-anchor power center space was $33.76/SF, also up 0.4% for
the period, up 1.1% year over year.
With the bulk of the action taking place in large mixed-use developments, the community-
neighborhood sector should maintain its low profile. Construction is expected to increase but
should remain modest in scale. Tight conditions should persist in this sector while rent growth
gradually improves. Gains of 2.0% currently are anticipated for 2014.
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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
29
Transaction Analysis
The $161.5 million in 27 retail property sales completed during the third quarter brought the year
to date total to $670.3 million for 85 transactions, a sum barely shy of the dollar total recorded for
all of 2012. Average selling prices for the latest quarter and year to date were high at $290/SF and
$294/SF. The mean cap rate for third quarter deals was low at 5.0%. The 12-month rolling mean
cap rate per quarter-end was 6.3%, down from 6.9% a year earlier. In the latest quarters largest
sale, MS Shopping Center, LLC paid Fraga CR, LLC $26.9 million or ($260/SF) in August for
103,566 SF Cutler Bay Towne Center on S. Dixie Highway in Miami.
The following chart shows the current metro rental rate details for neighborhood shopping centers.

Non-anchor rental rate growth for neighborhood shopping centers is as follows:

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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
30
The following chart shows the current metro rental rate details for community shopping centers.

Non-anchor rental rate growth for community shopping centers is as follows:

The vacancy rate trends for neighborhood shopping centers are as follows:

The vacancy rate trends for community shopping centers are as follows:

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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
31
The following chart summarizes the amount of new construction, the amount of absorption and
the vacancy rate from the period of 2008 to the present and projections until the year 2007.

Submarket Analysis Miami/Miami Beach Retail
The subject is situated in the Miami CBD within the Miami/Miami Beach retail submarket which is
defined by the Atlantic Ocean to the east, Douglas Road to the west, the Aventura city limits to the
north and Coral Way to the south.

The subjects Miami/Miami Beach submarket contains approximately 5.78 million SF of
neighborhood and community retail space considered the subjects market set. The subject is a
large, festival retail center which contains a mix of specialty retail space, restaurant space and
entertainment space.
According to the REIS report for the fourth quarter of 2013, the subjects overall Miami/Miami
Beach submarket indicated an average asking rental rate of $28.16/SF and an overall vacancy rate
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
32
of 8.7%. The asking rental rate is relatively high compared to the county overall and the vacancy
rate is similar. Expenses for this type of space are averaging approximately $7.38/SF which is in
line with the subjects quoted figures. The average lease term for this type of space is
approximately 3.9 years.

The size of the submarket has grown incrementally since 2008, likely due to the market downturn
that impacted South Florida commercial and residential markets. Only three retail centers have
been completed since then.

Rental rates have remained virtually unchanged over that period of time, with effective rates at
$24.26/SF as of the most recent survey.
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_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
33

New construction is expected to increase substantially over the next three year with nearly 4.276
million SF under construction or proposed for the subjects submarket.

The new and proposed projects for the subjects submarket are outline in the following table:
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_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
34

CONCLUSION
Overall, the subject is located in a market that is considered to be strong, and benefits from the
high average incomes in the area, as well as continued positive growth to the surrounding
community. The available information suggests that that the positive forces that have led to the
subjects success are still present, and should lead to the subjects continued success for the
foreseeable future.
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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
35
According to information provided by the Bayside leasing personnel, Bayside Marketplace indicated
that the quoted rates for the available and rolling space at the property range from $40.00/SF to
$50.00/SF on a gross basis. Expense pass through were running approximately $13.50/SF. For
the older leases, expenses are passed through to the tenant. For newer leases, some of which
were signed during the economic downturn, the lease structure is gross with no pass through of
expenses.
According to the draft financial statements for the property for 2013, gross revenues from the
retail component of Bayside Marketplace were approximately $25,400,000 or approximately
$112.00/SF. We have assumed that this figure includes the base rents, expense pass throughs and
any percentage rents that the tenants may be paying.
Occupancy was approximately 84.3% based on the most recent rent roll submitted by the property
manager. This occupancy is consistent with historical figures and similar to that observed during
the property inspection.
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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
36
GROUND LEASE COMPARABLES
The subject is a commercially zoned parcel of approximately 733,929 SF with a waterfront
location, adjacent to a marina, and within walking distance of hotel and condominium units, office
buildings, restaurants, luxury residences, and open park space. The site has approvals in place for
approximately 267,000 SF of festival retail space with supporting parking structures. The
neighborhood is considered to be one of the more popular in Miami, and is very popular with locals
and tourists alike.
We searched for ground lease comparables within the subjects immediate neighborhood,
specifically. Due to the lack of directly comparable properties we have extended our search to
include other parts of Miami-Dade County and sites featuring other types of development.
Comparable 1
Lease: Chase Bank
Location: Pembroke Pines, FL
Size: 77,667 SF or 1.783 acres
Lease Commencement: December 2012
Rent: $280,000 or $3.61/SF
Term: 20 years
Options: 4, 5-years
Increases 10% every 5 years
Sale Price: $5,600,000
Sale Date: 3/29/2013
Estimated Capitalization Rate: 5.00%
Comparable 2
Lease: CVS
Location: Miami, FL
Size: 95,396 SF or 2.19 acres
Lease Commencement: January 2007
Rent: $725,000 or $7.60/SF
Term: 30 years
Options: 4, 5-year
Increases 10% every 5 years
Sale Price: $12,120,000
Sale Date: 12/20/2012
Estimated Capitalization Rate: 5.98%

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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
37
Comparable 3
Lease: BB & T Bank.
Location: Fort Lauderdale, FL
Size: 38,768 SF or 0.89 acre
Lease Commencement: January 2008
Rent: $280,000 or $7.22/SF
Term: 20 years
Options: N/A
Increases N/A
Sale Price: $4,488,000
Sale Date: 12/7/2010
Estimated Capitalization Rate: 6.24%
Comparable 4
Lease: JP Morgan Chase Bank
Location: Miami, FL
Size: 38,333 SF or 0.88 acres
Lease Commencement: September 2010
Rent: $235,000 or $6.13/SF
Term: 20 years
Options: 4, 5-years
Increases 17% in Year 6, 12% in Year 11 and 12% in Year 16
Sale Price: $3,615,000
Sale Date: $9/17/2010
Estimated Capitalization Rate: 6.50%
Comparable 5
Lease: Bank United
Location: North Miami
Size: 30,928 SF or 0.71 acres
Lease Commencement: June 2012
Rent: $260,000 or $8.41/SF
Term: 15 years
Options: 4, 5 years
Increases 10% every 5 years
Sale Price: $4,650,000
Sale Date: 12/31/2012
Estimated Capitalization Rate: 5.59%

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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
38
Comparable 6
Lease: Harbor Beach Marriot Resort and Spa
Location: Fort Lauderdale Beach
Size: 714,820 SF or 16.41 acres
Lease Commencement: January 2007
Rent: $2,076,360 or $2.90/SF
Term: 99 years
Options: N/A
Increases: 10% every 5 years
Sale Price: $48,625,000
Sale Date: 11/30/2011
Estimated Capitalization Rate: 4.27%
Comparable 7
Lease: Sweet Tomatoes
Location: West Palm Beach, FL
Size: 48,352 SF or 1.11 acres
Lease Commencement: August 2004
Rent: $140,000 or $2.90/SF
Term: 20 years
Options: 1, 5-years
Increases CPI every 5 years
Sale Price: $1,935,000
Sale Date: 6/21/2012
Estimated Capitalization Rate: 7.23%
We have also included information from a national market survey of sites that are under ground
lease with particular property types. The subject would fall under the retail category which
indicated average land lease rates of 7.05%. This represents a slight increase over prior periods.

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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
39
Based on the comparables, we have concluded that an appropriate overall rate for the subject
should be at the lower end of the range, due to the quality and condition of the development and
the strength of the subjects market and the long-term nature of the subjects lease with the City
of Miami. Therefore, we have concluded to an overall rate toward the lower end of the range
indicated by the comparables.
We have concluded to an overall rate for the subject of 6.00% which is within the range indicated
by the comparables and supported by ground lease comparables researched for large commercially
developed sites, nationwide.
Percentage Rents
We have researched other municipal owned properties (land) that are leased to the developer or
owner of the improved property. We are attempting to determine the appropriate percentages to
apply to the subjects various development components, as percentage rent that will be paid to the
City of Miami Beach for the rights to the underlying site.
Case Study 1
Grove Key Marina and Scottys Landing (Restaurant and Marina)
The site is owned by the City of Miami and is leased to a lessee (Grove Key Marina) and a sub-
lessee (Scotty's Landing Bar). In early 2012, the City of Miami published a request for proposals
(RFP) for bids on a new, 40-year lease on the property. A substantial tenant improvement is
required in the RFP as the city seeks a state-of-the-art marina and bar. The winning bidder must
make required minimum renovations including renovating the hangars, pavement, and bar kitchen,
and repairing the dock and seawall. In exchange, the lease would be 40 years with a 10-year
renewal option.
Per the RFP, the successful proposer must pay a minimum base rent and percentage rent. Some of
the City's proposed lease details were as follows:
Minimum Annual Rent: $500,000 and:
Percentage Rent:
Marina Operations Minimum 15% of gross revenue
Bar/Restaurant Sales Minimum 10% of gross revenue
Marine Fueling Facility Minimum 10% of gross revenue

The RFP call for substantially higher minimum annual rent and a higher percentage of sales from
the revenue generating components on the site.
A complete redevelopment of this property is being proposed which would likely result in further
negotiations regarding the lease.
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MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
40
Case Study 2
Biscayne Landing (Mixed Use Project Retail/Office/Residential)
The site is owned by the City of North Miami and is leased to a lessee (Oleta Partners, LLC). The
lease was negotiated in 2012 and is based on a proposed build out of the 183.8-acre site with
approximately 900,000 SF of retail, hotel, residential and recreational space. The ground lease is
for 99 years, NNN, with increases in the base rental rate of 15% every ten years. The lease calls
for development deadlines for the construction of the project, a public park and community center
and future rights to developable land with participation in the revenues from this property. Some
of the lease details are as follows:
Base Rent: $1,500,000
Percentage Rent:
Residential Revenues 1.75% of gross revenue
Retail Revenues 1.75% of gross revenue
Hotel Revenues 2.25% of gross revenue
Sales (Condo or ALF Units) 3.25% or gross revenues

Case Study 3
Village of Merrick Park (Mixed Use Retail/Office/Residential)
This is a mixed use project on an 18 acre site located in the City of Coral Gables. Coral Gables
has a 99-year ground lease in place with the developer of the property with a base rent of
$300,000 with increases of $50,000 every 10 years. The city receives 10% of the propertys net
cash flow as percentage rent and has received approximately $90,000 to $100,000 in additional
rent from this percentage rent clause. The city is also entitled to any proceeds from any sale or
refinance in the amount of 10% of the net proceeds.
The residential component was subleased to a residential developer at the onset of the project.
The city is entitled to only the revenues from the retail and office components.
Case Study 4
Biltmore Hotel (Hotel)
There is a 99-year ground lease in place between the City of Coral Gables and the current hotel
operator that calls for annual rental payments of 3.5% of net hotel revenues.
In hindsight, there are numerous articles pertaining to the City of Coral Gables dissatisfaction with
the structure of this lease, based on net revenues, rather than gross revenues. Due to the
property owners renovations and upgrades to the hotel over the past years, net revenues have
been negligible and the rental payments to the City of Coral Gables almost non-existent.
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
41
Case Study 5
Jungle Island (Entertainment)
This property is a tourist attraction that is situated on a waterfront site on Watson Island, off of
downtown Miamis mainland. The site is approximately 18.61 acres and is developed with a
$50,000,000 attraction and convention venue. The development was built in 2003 with the City of
Miami providing the underlying site, via a ground lease for 60 years, with options. The lease calls
for base yearly payments of $400,000 and 2.5% of gross revenues from the attraction and other
revenue generating sources within the attraction.
Presently, Jungle Island is negotiating for 13.0 more acres adjacent to the Jungle Island property
to develop with a retail and hotel component. They are offering fixed rental payments during the
construction period with 5% of gross revenues after the completion of the construction. After the
completion of the construction, the base rent for the entire property will increase to $750,000 and
the existing 60 year lease will roll into a 99 year lease. This new lease is in the negotiation stage.
Case Study 6 - Subject
Bayside Marketplace (Retail and Parking Garage)
This property is a 16.85-acre site that is developed with an open-air festival retail center with
approximately 1,200 parking spaces in two, five-story parking structures. The site features a
waterfront location in Miamis CBD. The City of Miami owns the underlying land and leased the site
to Bayside Center Partnership in 1985.
There is a 45-year ground lease, with two, 15-year options, between the City of Miami and Bayside
Center Partnership that calls for a base annual rent of the greater of $1,000,000 or 35% of net
income. There is a separate lease on the parking structure that calls for a similar lease term with a
$10,000 base rent and additional rent of $80,000 after the structure reached stabilized occupancy
and then 50% of net income after those benchmarks.
Case Study 7
The Palace at Coral Gables (Residential)
The Palace at Coral Gables is a 240-unit senior housing community located just south of Miracle
Mile in Coral Gables. This 0.75 acre site is leased from the City of Coral Gables for a base rent of
$237,500 annually with percentage rents of 2.0% of property revenues. The city is entitled to 10%
of any net proceeds from any sale or refinance of the property.
We have concluded that, in general, percentage rents are based on the gross retail revenues
generated by a property rather than the net operating income. In the case of the subject, the
developer is paying a higher percentage rent but of the lesser income figure. The calculation of
the gross retail rent is generally a less subjective figure as the number represents the total
collections of rent by the property owner, and does not considered operating expenses or any
other type of obligations.
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_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
42
We have concluded that it would be a more market oriented situation for the tenant to pay a
percentage of gross retail revenues of between 3% and 10%, going forward. In order to
determine a market oriented rent for the property, we have utilized the subjects historical gross
retail revenues as a starting point.
With regards to the subjects rental rate, it is noted that there are a number of City of Miami
waterfront developments in Miami-Dade County that are leased with the propertys rental rate
stipulated on a base amount, base amount plus percentage rent, percentage rent or the greater of
percentage rent or base rent. Detailed below is information regarding several comparables within
the market:
Comparable Base Rent % Rent
Confidential $320,000 and 10% of gross receipts
Bayshore Montys $277,586 and 15% of gross receipts
Miami Yacht Club $49,080 and 9.0% of gross revenue in excess of $380,000
Miami Outboard Club $35,004 and 10.0% of Gross revenue in excess of
$120,000 for restaurant
Coconut Grove Sail Club $30,000 or 7.5% of gross revenues
Grove Harbour Marina $550,000 or 15% of gross revenue for marina
10% of gross revenue for boatyard
10% of gross revenue for restaurants
5% of gross revenue for service/fuel
Rickenbacker $360,000 and 15.00% of gross revenues for wet slips
12.00% of gross revenues for dry slips
Increasing by 1% after 4.5 years

The Rusty Pelican lease, along the Rickenbacker Causeway, stipulates that it will pay base rent of
$360,000/year plus a variable percentage rate, starting at 2.5% and rising to a maximum of 8% of
gross revenues over sales of $12,000,000.
The New Spanish Concepts lease states that they will pay a minimum annual rent of $57,375 plus
11% over a $2,200,000 breakpoint.
We were also able to obtain several new confidential leases of recently opened restaurants within
the City of Miami, in comparable locations. These leases, of spaces over 7,000 SF, are $40/SF and
$45/SF plus real estate taxes and insurance. Based on the expenses for the properties, roughly
$10/SF, the rental rates on a net basis would be from $30/SF to $35/SF.
The current agreement with the City of Miami calls for a base rent of the greater of $1,000,000 or
35% of net operating income. According to Baysides 2012 financial statement, the rental payment
for the retail component was $1,000,000, basically the base rent with no percentage rent.
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_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
43
Conclusion
Subject Revenues (Bayside Marketplace)
The subjects historical revenues that have been provided by the City of Miami and verified by the
Bayside, LLC financial statements are shown below:
FYE Subject 2009 Subject 2010 Subject 2011 Subject 2012
Retail Revenues: $20,494,908 $17,622,546 $23,697,604 $24,600,776
Retail Revenues/SF: $84.69 $72.82 $97.92 $112.71
Retail Rental Payment: $1,000,000 $1,010,000 $1,000,000 $1,000,000

The subjects retail revenues/SF is calculated based on the actual square footage developed on the
site, thus far, 218,258 SF. This figure was taken from the General Growth Properties financial
statement as the net rentable area of the center.
As shown above, the retail and parking garage revenues for the subject property are on the
upswing from the economic downturn experienced in 2007 and 2008. We have projected that the
retail center will continue to generate revenues of approximately $100.00/SF and have applied this
figure to the total allowable square footage for the site of 267,000 SF for total projected revenues,
going forward of approximately $26,700,000 (RD).
Based on the comparable figures included in this analysis, we have determined that a base rent of
approximately 6.00% of gross revenues over the natural breakpoint would be a market oriented
rent, going forward. This estimate is based on on-going retail revenues of approximately $100.00
per square foot for the propertys allowable square footage of 267,000 SF and includes base rent,
expense recoveries and overage or percentage rents from the tenants. Garage revenues have
been excluded from these calculations.
It is unclear why Bayside has not historically paid a portion of the net income generated by the
center, over the current base rent.
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_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
44
Skyrise and Liner Retail
Under the second scenario, with the addition of the Skyrise Tower (195,920 NRA SF) and
approximately 17,255 NRA SF of liner retail space around the ground floor of the parking
structures, approximately 213,175 SF of additional net rentable commercial space will be added as
revenue generating components to the property.

Original and New
Revenue Component (SF/Spaces)
Commercial (Bayside) 267,000
Liner Retail 17,255
Skyrise 195,920
NRA 480,175
First, we have arrived at an appropriate market rental rate for the tower and the liner retail space.
Most emphasis has been placed on the rental rates that are being quoted at Bayside and the
surrounding retail and commercial properties in the area.
The following chart summarizes current offerings of retail space in the buildings located on along
Biscayne Boulevard, in the vicinity of the subject.
Address:
275 NW 18
th

Street,
Miami,
FL 33132
1900 North
Bayshore
Drive,
Miami,
FL 33132
1750 N
Bayshore
Drive, Miami,
FL 33132
1040
Biscayne
Blvd., Miami,
FL 33132
900
Biscayne
Blvd.
Miami,
FL 33132
900
Biscayne
Blvd.,
Miami,
FL 33132
SF: 16,268 SF 5,304 SF 7,060 SF 11,270 SF 6,000 SF 9,360 SF
Rental Rate: $45-$55/SF $28-$32 $45 $48/SF $40/SF $50-$35/SF
Rental Type: NNN NNN NNN NNN NNN NNN

Comparable 1 is located on the ground floor of a mixed-use property facing Biscayne Boulevard.
This second generation space can be configured into smaller spaces ranging in size from 1,570
SF to 7,029 SF.
Comparable 2 is first generation space located in the ground floor of Quantum on the Bay, a 698-
unit tower, with 12,000 SF of ground floor retail space.
Comparable 3 is ground floor space in a condominium building, facing Biscayne Boulevard. This
space can be broken into smaller spaces, ranging in size from 1,532 SF to 1,985 SF.
Comparable 4 is located on the ground floor of a high-rise condominium building. This space can
be broken into two smaller spaces.
Comparable 5 is located at 900 Biscayne Boulevard, and was formerly occupied by Hoops Sports
Bar. This space, which sits across the street from American Airlines Arena, contains 6,000 SF.
Comparable 6 is also located at 900 Biscayne Boulevard but can be broken into spaces ranging in
size from 1,050 SF to 5,000 SF. This space ranges in price from $35/SF to $50/SF.
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
45
Based on the information presented, we conclude that the rental rates for the liner retail space
along the ground floor of the parking garage will be similar to the rates currently quoted in the
Biscayne Boulevard retail corridor, approximately $35.00/SF to $45.00/SF, triple net. Expenses for
retail properties generally range from $7.00/SF to $8.00/SF, according to the Reis Report for the
4
th
quarter of 2013. We have projected revenues for the 17,255 SF of liner retail space based on a
gross market rate of $53.00/SF ($45.00/SF rent plus $8.00/SF expenses) for total revenues of
$914,515.
For the Skyrise Tower, we have assumed a somewhat lower figure, based on the lack of direct
access and visibility of the commercial space, within the structure. We have assumed a rental rate
of $35.00/SF and expenses of $8.00/SF for the space for gross rents of $43.00/SF for the 195,920
SF. Projected total revenues would be $43.00/SF ($35.00/SF rent plus $8.00/SF expenses) x
195,920 SF for total revenues of $8,424,560.
The percentage rent comparables offer a wide array of rental scenarios, with some tenants paying
a percentage of gross revenue, others paying a percentage of net revenue. Some other tenants
pay a base rent, plus percentage rent, or a base rent plus percentage rent over a breakpoint.
Some other tenants pay varying percentage rents based on the type of use, typically with a higher
percentage for higher margin activities. For parcels where the lessee is required to incur significant
construction costs, the rents tend to be lower than for properties where the improvements already
are in existence, or little or no improvements are required.
One of the most recent lease comparable properties is Jungle Island, which is renegotiating with
the City of Miami for future development rights. They would like to develop and operate new retail
space and hotel rooms on the land that is currently leased from the City of Miami. The developer is
offering to pay 5% of gross revenue after the completion of construction. This is the developers
offer, and would represent the minimum percentage rent that would be expected in the market.
The upper end of the comparables would be the Rusty Pelican lease which stipulates rents going
up to 8% of gross revenue, for sales above $12,000,000/year. Based on these comparables, we
conclude to a rental rate in the range of 5% to 8% of gross revenues for the proposed
components at the subject property.
The proposed components, the additional parking, the liner retail and the Skyrise Tower, will
require a significant investment by the developer who will actually be a subtenant of the original
lessor, Bayside Marketplace. The existing development on the site currently represents an
underutilization of the parcel under the current zoning code. The City of Miami has approved the
proposal to increase the developable SF allowed on the site. Based on the substantial expenditures
required for the increased development on the property as well as the risk associated with a
development, like the Skyrise Tower, we have conclude that the appropriate rental rate for the
underlying land would be toward the lower end of the previously established range.
We have concluded that it would be market oriented for the tenant to pay a percentage of gross
revenues of between 5.0% and 7.0%. We conclude to a base rental rate of approximately 6.00%
of gross revenues, which includes base rent, expense recoveries and overage or percentage rents
from all tenants, once the project is completed and reaches stabilized occupancy.
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
46
PARKING GARAGE MARKET STUDY
The Bayside Parking garages are two, five-story parking structures with approximately 1,200
spaces, situated at the front of the property, fronting on Biscayne Boulevard. The parking is
available to the public with no restrictions. The parking is intended for visitors to Miamis Bayfront
Park, the Bayside Marketplace, the Miamimarina, the American Airlines Arena and other water
front venues and activities. In the parking calculation, we have utilized the 1,200 parking spaces
that were originally approved for the site for the as is scenario and 1,902 spaces in the additional
development scenario which represent parking spaces for the additional square footage associated
with the Skyrise Tower, replacement parking spaces from the surface lot that will be developed
with the Skyrise Tower and some underground parking proposed for the Skyrise site.
There are 42 parking spaces associated with the City of Miamis marina operations that must also
be relocated to the parking garage by the Skyrise developer but these spaces will not be a revenue
generating component of the site for the lessor, Bayside Marketplace, LLC.
There is currently a management contract in place between Bayside Marketplace and the operator
of the parking garage, Standard Parking. Details pertaining to the management contract rates and
terms were not available. We have assumed a competent operator of the parking garage.
The current ground lease between the City of Miami and Bayside calls for a base rental rate of
$10,000 per year with additional rent of $80,000 per year and percentage rent of 50% of net
operating income. For FYE 2012, Bayside paid the City of Miami the $90,000 base rent payment
and percentage rent of $693,764 which would be approximately 50% of net operating income,
therefore we have assumed that the net operating income of the parking facility was $1,387,528
($693,764/50%) or approximately 26% of the gross parking revenues. Gross parking revenue for
the property was provided in the Bayside Marketplace, LLC financial statements. Figures for 2013
are not yet available but the trend at the property appears to be positive.
We have compared the revenues generated by the subject parking garage to those generated by
the City of Miami parking authoritys properties, most of which are located within a five mile radius
of the subject.
We researched the income that is generated by other parking garages in the subjects immediate
submarket. The City of Miami operates a total of nearly 36,000 parking spaces, both garages and
surface lots. There are 11,300 on street parking spaces and 24,400 off-street spaces. There are a
total of 86 surface lots and 14 parking garages. These parking garages serve the needs of area
businesses, as well as the office buildings, hotels and residences in the area that lease spaces on a
short-term and long-term basis. The parking charges at the City of Miami garages set the standard
for the area private parking garages, as private operators compete with the city to attract patrons.
According to the parking authoritys financial statements, the average revenue per space for the
City of Miami owned and operated parking garages was $1,191.18 or $3.26 per day.
Operating expenses do not include property taxes, as the City of Miami is exempt from paying real
estate taxes for municipal garages. In the case of the subject, Baysides owner is responsible for
the property taxes associated with the parking garage.
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
47
We have focused on the average revenue per space generated by the Citys municipal parking
spaces, as well as the net income to total revenues ratios which ranged from 13.31% to 26.71%
of total revenues. The City of Miamis revenue per space ranged from $820.93 to $1,246.26 which
is somewhat lower than the subjects historical figures. The Citys surface parking lots represent
the majority of the parking spaces and charge rates that are somewhat lower than the garage
rates.
The subject caters mainly to short-term parkers which generally generates higher levels of income
on a per space basis due to the higher turnover ratio. As such, we have also included information
from Miami Beach parking facilities which are typically geared to more short-term users, shoppers
and beach goers.
Miami Beach Parking Garages
7
th
Street 12
th
Street 13
th
Street 16
th
Street 17
th
Street
Total Entries 360,627 89,612 165,318 409,139 1,098,582
Average Daily Entries 988.0 245.5 452.9 1,120.9 3,009.8
Spaces in Garage 646 134 286 803 1,460
Utilization Ratio 1.53 1.83 1.58 1.40 2.06
Annual Revenue $2,124,660 $558,768 $1,147,828 $3,076,654 $3,791,220
Revenue/Entry $5.89 $6.24 $6.94 $7.52 $3.45
Revenue/Space $3,289 $4,170 $4,013 $3,831 $2,597
Revenue/Space/Day $9.01 $11.42 $10.99 $10.50 $7.12
Operating Expenses $794,567 $228,626 $302,359 $600,778 $1,271,057
Profit $1,330,093 $330,141 $845,470 $2,475,876 $2,520,164
Profit/Space $2,059 $2,464 $2,956 $3,083 $1,726
Profit/Entry $3.69 $3.68 $5.11 $6.05 $2.29
Expenses/Space $1,230 $1,706 $1,057 $748 $871
Expenses/Entry $2.20 $2.55 $1.83 $1.47 $1.16
Expenses % 37.4% 40.9% 26.3% 19.5% 33.5%

The subjects historical figures are as follows:
Bayside Parking Garage (1,200 spaces)
Year 2009 2010 2011 2012
Parking Garage Revenues*: $4,018,039 $3,268,470 $4,491,808 $5,359,383
Parking Garage Revenue/Space: $3,348 $2,723 $3,743 $4,466
Revenue/Space/Day $9.17 $7.46 $10.25 $12.24
Base Rental Rate (Ground Lease) $90,000 $90,000 $90,000 $90,000
Percentage Rent (50% of NOI) $201,976 $78,390 $240,307 $693,764
Total Garage Rent Payment*: $291,976 $168,390 $330,307 $783,764
Implied NOI $403,952 $156,780 $480,614 $1,387,528
Implied NOI/EGI Ratio 10.05% 4.80% 10.70% 25.89%
* From Bayside Marketplace, LLC financial statements
14-108-02 Bayside Marketplace Land
MARKET ANALYSIS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
48
The subjects revenues appear to be more in line with the Miami Beach parking garages in terms of
the revenues per space because the garage caters mainly to the hourly parkers that are visiting
Bayside or at a special event at the American Airlines Arena rather than daily or monthly parkers.
Based on the subjects historical revenue figures, the comparable properties in the market and the
market trends, which appear to be upward, we have projected annual revenue per space for the
subjects existing 1,200 spaces, going forward, of approximately $4,500. This revenue per space
figure takes into consideration the historical occupancy of the parking garage. Based on the 1,200
existing parking spaces, garage revenues are projected to be approximately $5,400,000 going
forward. Although the current lease agreement calls for a base rent of approximately $90,000
with additional percentage rent of 50% of net operating income, we have concluded to a base
market rental rate for the underlying site of 15.00% of gross parking revenues, a base rate of
approximately $810,000 with percentage rent of 15.00% of additional revenues, over the base
rate.
Under the second scenario, there are a total of 1,902 spaces that will generate revenue for the
property between the garages and the underground parking on the Skyrise site.
Based on the annual revenue per space of $4,500, projected garage revenues would be
$8,559,000. In addition to base rent, we conclude to a percentage rent of 15% of all garage
revenues over the base rate with a natural break point.
14-108-02 Bayside Marketplace Land
DESCRIPTION OF THE SITE

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
49
Address: 401 and 501 Biscayne Boulevard, Miami, FL 33132
Location: East side of Biscayne Boulevard, at NE 4
th
Street, Miami-
Dade County, FL
Size: 733,929 SF or 16.85 acres

Zoning: The parcel is zoned T6-8 O, Urban Core Transect Open,
under the jurisdiction of Miami-Dade County, FL.
Shape: Irregular
Frontage: The subject has direct frontage on Biscayne Boulevard.
Access/Visibility: The subject has good visibility from Biscayne Boulevard.
Access is provided to the site from Biscayne Boulevard.
Parking: There are 1,200 parking spaces on the site that are divided
between the two parking garages. There are also 87 surface
spaces on the east side of the site.
Street Improvements: There are paved roads throughout the property.
Adjacent Properties:
North: American Airline Arena
South: Miami Bayfront Park
West: Residential
East: Biscayne Bay

Topography: Level and at street grade
Flood Zone: The site lies within Zone AE and VE an area inundated by
1% annual chance flooding, for which BFEs have been
determined and an area inundated by 1% annual chance
flooding with velocity hazard (wave action); BFEs have been
determined. This information was obtained from the National
Flood Insurance Rate Map Number 12086C0319L dated
September 11, 2009.
Other Hazards: None known
Soil Conditions and Drainage: We know of no environmental or engineering study made to
determine the subsoil conditions. Upon inspection of the
subject and surrounding improvements, conditions appear
adequate to support the subject structure. From an
inspection of the property, drainage also appears to be
adequate.
14-108-02 Bayside Marketplace Land
DESCRIPTION OF THE SITE

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
50
Utilities and Services: Public utilities are available to the site and services are
provided as follows: electricity is provided by Florida Power
and Light, water and sewer as well as police and fire
protection is provided by the City of Miami.
Easements and Encroachments: No title search or review of title for the subject was
performed by us. In the performance of this report, we did
not find nor were made aware of any easements or
encroachments (other than standard utility easements) that
would have an adverse effect on the subject. We suggest
that legal opinion be obtained to ensure no adverse
easements or encroachments exist.
Environmental Hazards: The existence of hazardous materials, which may or may not
be present on the property, was not observed by us. We
have no knowledge of the existence of such materials on or
in the property. We, therefore, suggest that a professional
in the field be employed to detect any environmental
problems which might exist, as we are not qualified in this
area of expertise.
Conclusion: Based on the surrounding sites and the existing
improvements, the site appears to be well suited for use as
a festival retail and entertainment center.

14-108-02 Bayside Marketplace Land
ZONING AND TAXES

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
51
ZONING
The subject is located within the City of Miami and is zoned T6-8 O Urban Core Transect Zone
under the jurisdiction of the City of Miamis new Miami 21 Zoning Code, which took effect on May
20, 2010.

Some of the main restrictions outlined within the T6-8 O zoning code include:
Lot Area - 5,000 SF Min.
Lot Width- 50 Ft. Min.
Lot Coverage- 80% Max
Density- 150 DU/Acre
FLR- 5.00
Front Setback- 10 Ft. Min.
Side Setback- 0 Ft. Min.
Rear Setback- 0 Ft. Min.
Principal Building- 2 Min. 48 Max
The improvements appear to be a legally conforming use. A copy of the zoning description from
the Miami 21 zoning code can be found in the Addenda section of this report.
It should be noted that the maximum FLR that could be developed on the site under the zoning
designation would be approximately 3.67 million square feet on the 733,929 SF site. The original
approvals for Bayside, prior to the implementation of the Miami 21 zoning code, limit development
to 267,000 SF for the retail component and 420,000 SF for the parking garage for a total of
687,000 SF. This is an FLR of 0.94 versus the allowable of 5.00 under the T6-8 O zoning.
TAXES
The owner of the improvements Bayside, LLC pays the property taxes on the improvements and
the land.

Subject
14-108-02 Bayside Marketplace Land
HIGHEST AND BEST USE

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
52
Highest and best use, as defined in The Dictionary of Real Estate Appraisal, fifth edition, published
by the Appraisal Institute, is: The reasonably probable and legal use of vacant land or an
improved property, which is physically possible, appropriately supported, financially feasible, and
that results in the highest value.
3

In determining the highest and best use of the property, careful consideration was given to the
economic, legal, and social factors that motivate investors to develop, own, buy and sell, manage,
and lease real estate.
In estimating the highest and best use of a vacant parcel of land, there are essentially four stages
of analysis:
Physically Possible Use: What uses of the site in question are physically possible?
Legally Permissible Use: What uses are permitted by zoning and deed restrictions on the site in
question?
Financially Feasible Use: Which possible and permissible uses will produce a gross return to the
owner of the site?
Maximally Productive: Among the feasible uses, which will produce the highest gross return or
highest present worth of the site in question?
Highest and best use of land or a site as though vacant may be defined as: Among all reasonable,
alternative uses, the use that yields the highest present land value, after payments are made for
labor, capital, and coordination. The use of a property based on the assumption that the parcel of
land is vacant or can be made vacant by demolishing any improvements.
4

The highest and best use of property, as improved, pertains to: The use that should be made of a
property as it exists. An existing improvement should be renovated or retained as is so long as it
continues to contribute to the total market value of the property, or until the return from a new
improvement would more than offset the cost of demolishing the existing building and constructing
a new one.
5

The following tests must be met in estimating the highest and best use of a vacant parcel: the
potential use must be physically possible and legally permissible, there must be a profitable
demand for such a use, and it must return to the land the highest net return for the longest period
of time. These tests have been applied to the subject site and are discussed as follows:
Physically Possible
The subject site is an irregularly-shaped parcel which contains approximately 733,929 SF or
approximately 16.85 acres. The site is located within the City of Miami on a waterfront parcel in
Miamis CBD. There is access to the site from Biscayne Boulevard.

3
Appraisal Institute, The Dictionary of Real Estate Appraisal, 5
th
Ed. (Chicago: Appraisal Institute, 2010)
4
Appraisal Institute, The Dictionary of Real Estate Appraisal, 5
th
Ed. (Chicago: Appraisal Institute, 2010)
5
Appraisal Institute, The Dictionary of Real Estate Appraisal, 5
th
Ed. (Chicago: Appraisal Institute, 2010)
14-108-02 Bayside Marketplace Land
HIGHEST AND BEST USE

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
53
The configuration of the parcel does not appear to impose any development restrictions, nor does
it limit the type of use. In terms of subsoil conditions, no environmental or engineering study has
been commissioned or made by us; however, in researching the surrounding improvements, the
site appears to be well suited for any type of development. Physically, the subject appears well
suited for nearly any type of use.
Researching the surrounding improvements, which consist of large scale residential and
commercial development, similar developments would in all likelihood be physically possible for the
site. Considering the above information, the physical attributes of the site would most likely not
hinder any type of development. The subjects waterfront location and proximity to the
Miamimarina would make the site highly desirable to a residential developer.
Legally Permissible
The subject site is zoned T6-8 Open, Urban Core Transect Open, under the jurisdiction of Miami,
Miami-Dade County, FL. The purpose of the T6-8 Open designation is intended to apply to areas
within Miamis Urban Core and is intended to encourage large scale commercial and residential
development up to a maximum height of 8 stores and a maximum FLR of 5.0. Bonuses are
granted for developments that provide public benefits, up to 12 stories and an additional FLR of
25%, 6.25. This is a new zoning designation for the subject since the implementation of the Miami
21 zoning code.
The subject site is owned by the City of Miami and is part of the City of Miamis protected water
frontage. The subject was subdivided from Bayfront Park as a means to upgrade downtown
Miamis water frontage and make repairs and renovations to the park and bay front walkway and
Miamimarina. The original approvals for the property allowed for the development of a 242,000-SF
festival retail center and associated parking garage by the Rouse Companies, a developer
specializing in urban waterfront redevelopment projects. In exchange for the development site, the
City of Miami signed a long-term lease with the developer and also dictated the allowable density
of the property and approved the style and design of the center. A 25,000 SF existing restaurant
was included in the original development plan for a total of 267,000 SF on the site.
As such, the legally permissible use of the site is dictated by the original approvals for the
propertys development which were granted in 1985.
We are of the opinion that a festival retail development and parking of such intensity that would
fully maximize the allowable density as per the City of Miamis approvals would be the highest and
best use of the site as it pertains to the legally permissible uses.
Financially Feasible
Analysis for financially feasible uses for the site, as if vacant, involves consideration of several
criteria. Unlike the physically possible and legally permissible aspects of the highest and best use
analysis, many external economic factors serve to prove or disprove financial feasibility. The cost
of acquisition, sources of capital, forecast of potential revenue/expenses, reversionary price
forecast, property tax implications and measures of risk and yield are all determinant to this
analysis. The above financial measures serve to eliminate the uses that would not provide a
reasonable return to the land based on investors expectations.
14-108-02 Bayside Marketplace Land
HIGHEST AND BEST USE

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
54
The cost of land and its development limits the highest and best use of the site, generally to only
those uses which are financially feasible. The cost of the land acquisition and development are
considered to be in a reasonable range to justify commercial development.
The subjects area is currently in the revitalization stage of the life cycle, with numerous tracts of
land (both improved and vacant) available for sale and development. The majority of the vacant or
undeveloped sites within Miamis CBD have been purchased or planned for high density
development of some type. Upon our inspection there were a number of older buildings in the
neighborhood that have been demolished or are being demolished to make way for new
development. The majority of the new development is high rise residential towers. Most zoning in
the area allows density up to 500 units per acre, building heights unlimited and floor area ratios of
up to 24.
Most parcels of land in the subjects general neighborhood, especially those parcels that are
relatively small, have been assembled and purchased for the construction of high rise commercial
or residential properties.
The majority of the current developments are in the pre-sale and construction phase and there are
a number that have been announced but not yet commenced. With the steady increase in the
number of residential units in the surrounding area, the need for supporting retail as well as green
space and recreational areas will continue to increase, as well.
We believe that the most financially feasible use of the site is for some type of waterfront retail
development of that conforms with the existing approvals by the City of Miami.
Maximally Productive
Those uses as aforementioned that meet the physically possible, legally permissible, and financially
feasible tenets of the highest and best use explanation have been considered. The final criteria for
full compliance with the highest and best use of the site as if vacant, is that of maximally
productive use. A festival retail development is the use among all alternative uses that would
satisfy the maximally productive definition of the highest and best use criteria.
Highest and Best Use, As If Vacant
Therefore, the highest and best use of the site, as if vacant, is for the development of a festival
retail property that maximizes the density allowed under the site plan approval.
Highest and Best Use, As Improved
The highest and best use of the subject, as improved, must also be determined by analyzing
occupancy levels of various surrounding improvements, as well as the general needs within the
area. We conclude that the highest and best use of the site, as improved, is to maintain the
existing improvements and go forward with the additional proposed improvements up to the
increased FLR approved by the City of Miami for the site.
Conclusion
Therefore, we conclude that the highest and best use of the subject appears to be the existing
use.
14-108-02 Bayside Marketplace Land
VALUATION PROCESS

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
55
LAND VALUATION
The land, as if vacant, is valued by direct sales comparison, in which sales of comparable sites
located within the subject area are analyzed in context with the subject site. Adjustments are
made to compensate for differences between the submitted sales data and the subject for such
factors as location, size, shape, topography, utility, and marketability, etc. The price per buildable
square foot and price per allowable unit are employed as the units of comparison.
The technique involved in the value estimate of the land uses the principle of substitution as the
basis for analysis, and the methodology includes an analysis of what buyers in the area have been
paying for properties. The value of the property, therefore, is derived from sales and listings of
comparable properties in the area. It is necessary to evaluate such factors as the time of sale,
location, physical characteristics, and other items when making adjustments.
In an effort to locate comparable land sales, a search throughout the subjects area was
conducted. The presented sales are deemed by us to be valid indicators of land values in the
subjects area. Information pertaining to these sales has been verified by the buyer, seller, broker
or other sources considered reliable and having knowledge of the particular transaction. We have
utilized a price/FLR analysis.
We have attempted to include sales of similarly zoned and developed parcels that are located in
the subjects area. Due to the lack of comparable transactions, we have extended our search to
outside of the City of Miami, into Coral Gables and points north. Due to the lack of similarly
developed parcels, we have included similarly zoned property that may be planned for a different
use, such as residential or office, versus retail and parking.
In researching previous Miami Beach land sales transactions, information was compiled from
published sources, including CoStar Comps, Loopnet and Miami-Dade County public records.
Unless indicated in the individual property notes, all sales were verified by buyers, sellers, brokers,
government officials or other sources regarded as knowledgeable and reliable.

14-108-02 Bayside Marketplace Land
THE SALES COMPARISON APPROACH

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
56
14-108-02 Bayside Marketplace Land
THE SALES COMPARISON APPROACH

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
57
LAND SALE 1
Location:

3250 NE 188th Street
Aventura, Miami-Dade County, FL 33180
Sales Data
Date of Sale: January 10, 2013
Sale Price: $27,000,000
Recording Data: 28440-2240
Financing: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arm's length
Grantor: Happiness, Inc.
Grantee: PMG Aventura, LLC
Verified By: Knowledgeable Third Party

Site Data
Parcel Size: 308,510 SF or 7.08 acres
Topography: Level and at street grade
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: RMF-3B
Proposed Use: 190-unit condominium
Number of Units: 190
Density/Acre: 26.84
FLR: 2.45

Units of Comparison
Price/SF: $87.52
Price/Unit: $142,105
Price/FLR: $35.66

Comments
This parcel is located at the terminus of NE 188th Street along Biscayne Bay in the city of
Aventura. The land has been approved to be developed with an 11-story condominium building
known as Echo Aventura. This building is expected to contain 190 units and 499,382 SF of net
sellable area. Assuming parking of approximately 2 spaces per unit, we have estimated gross
building area for the property, including common areas of 757,228 SF, an FLR of 2.45.
14-108-02 Bayside Marketplace Land
THE SALES COMPARISON APPROACH

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
58
LAND SALE 2
Location:

659-737 West Avenue
Miami Beach, Miami-Dade County, FL 33139
Sales Data
Date of Sale: December 31, 2012
Sale Price: $8,000,000
Recording Data: 28428-0056
Financing: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arm's length
Grantor: West Alton Corporation
Grantee: KGM Equities, LLC
Verified By: Knowledgeable Third Party

Site Data
Parcel Size: 49,000 SF or 1.12 acres
Topography: Level and at street grade
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: RM-2
Proposed Use: Hold for Development
Number of Units: N/A
Density/Acre: N/A
FLR: 2.00

Units of Comparison
Price/SF: $163.27
Price/Unit: N/A
Price/FLR: $81.63

Comments
This parcel is located along the east side of West Avenue and was being utilized as a parking lot.
The site was purchased by the adjacent property owner. Based on the allowable FLR of 2.0, a total
building area allowed equates to 98,000 SF.
14-108-02 Bayside Marketplace Land
THE SALES COMPARISON APPROACH

_____________________Joseph J. Blake and Associates, Inc.___________________
Real Estate Valuation and Consulting
59
LAND SALE 3
Location: 600-616 Washington Avenue
Miami Beach, Miami-Dade County, FL 33139
Folio #: 02-4203-009-1710; 1720

Sales Data
Date of Sale: November 15, 2012
Sale Price: $5,100,000
Recording Data: 28363-3931
Financing Terms: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arm's length
Grantor: Jacobson 6
th
Street, LLC
Grantee: LBL Development, LLC
Verified By: Knowledgeable Third Party (See Comments)

Site Data
Parcel Size: 20,473 SF or 0.47 acres
Topography: Level and at Street Grade
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: RM-2, Multifamily, Medium Intensity
Proposed Use: Residential Development
Density/Acre: N/A
FLR: 2.00

Units of Comparison
Price/SF: $249.11
Price/Unit: N/A
Price/FLR: $124.55

Comments
This sale was confirmed via public records. According to the original listing on Loopnet, the
property was marketed for the construction of a residential development. Parking must be included
within the maximum allowable FLR for new construction.
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60
LAND SALE 4
Location: Commercial Site (the Roads)
1833-1859 SW 3
rd
Avenue
East side of SW 3
rd
Avenue, south of SW 18
th
Street
Miami, Miami-Dade County, FL 33135
Sales Data
Date of Sale: November 13, 2012
Sale Price: $4,500,000
Recording Data: 28366-4990
Financing Terms: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arm's length
Grantor: Starlight Export Finance, Inc.
Grantee: Le Venir Investments
Verified By: Broker

Site Data
Parcel Size: 37,462 SF or 0.86 acres
Topography: Level and at street grade
Frontage: SW 3
rd
Avenue
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: T6-8 O, Urban Core Transect Zone
Proposed Use: Apartment
FLR: 5.00

Units of Comparison
Price/SF: $120.12
Price/Unit: $41,667
Price/FLR: $24.00

Comments
This site was marketed as a potential apartment, condo or hotel site, with potential for
approximately 108 units in a five-story structure. The potential FLR based on the zoning would be
187,500 SF which yields a price per FLR of $24.00/SF. This square footage would have to include
parking for the property.
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LAND SALE 5
Location: 3860 3880 SW 40
th
Street
3040 SW 38
th
Street
Miami, Miami-Dade County, FL 33146
Folio #: 01-4117-003-2100, 2180, 2190, 2200, 2210, 2220, 2230, 2240

Sales Data
Date of Sale: July 5, 2012
Sale Price: $10,303,982
Recording Data: 28188-2217, 2221 & 2224
Financing Terms: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Assemblage
Grantor: 4001 Corp., Gables Lincoln-Mercury, Inc. and Ponce & Bird, LLC
Grantee: Ponce & Bird Miami Development, LLC
Verified By: Broker

Site Data
Parcel Size: 94,371 SF or 2.1665 acres
Topography: Level and at street grade
Frontage: Bird Road
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: T6-12-O (formerly C-2), City of Miami, General Commercial
FLR: 4.85

Units of Comparison
Price/SF: $109.19
Price/Unit: $37,333
Price/FLR $22.51

Comments
The site is located on the south side of SW 40
th
Street (Bird Road), between SW 39
th
Avenue and
SW 38
th
Court. The combined site will be developed with approximately 276 apartment units plus
one, eight-floor parking structure containing 423 parking stalls, plus amenities, containing 247,700
SF of NRA. Including an additional 25% for common areas and approximately 350 SF per parking
space, the total allowable SF would be 457,675 SF, an FLR of 4.85.
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LAND SALE 6
Location: Office Building Site at 4311 Ponce De Leon Blvd.
East side of Ponce De Leon Boulevard, north of San Lorenzo Avenue
Coral Gables, Miami-Dade County, FL 33146
Sales Data
Date of Sale: February 29, 2012
Sale Price: $2,400,000
Recording Data: 288014-4214
Financing Terms: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arms length
Grantor: 64 Development Corp (Oxford Development)
Grantee: 4311 Ponce De Leon, LLC
Verified By: Broker

Site Data
Parcel Size: 15,028 SF or 0.34 acres
Topography: Level and at street grade
Frontage: Ponce
Required Site Work: Typical Clear and Grade
Utilities: All Available
Zoning: C, Commercial, City of Coral Gables
Proposed Use: Mixed Use
FLR: 7.23

Units of Comparison
Price/SF: $159.70
Price/Unit: N/A
Price/FLR: $22.09
Comments
This site had been proposed for an eight-story mixed-use office-retail property with 53,000 SF of
GBA. The FLR limitations in the City of Coral Gables do not include parking. With the addition of
approximately 350 SF per parking space, the allowable building area has been estimated to be
108,650 SF, an FLR of $22.09.
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Land Sale 7
Location:


4701 North Meridian Avenue
Miami Beach, Miami-Dade County, FL 33140
Sales Data
Date of Sale: February 8, 2012
Sale Price: $20,000,000
Recording Data: 27993-3934
Financing: Cash to Seller
Property Rights Sold: Fee Simple Estate
Condition of Sale: Arm's length
Grantor: Mount Sinai Medical Center of Florida, Inc.
Grantee: 4701 North Meridian, LLC
Verified By: Broker

Site Data
Parcel Size: 308,579 SF or 7.08 acres
Topography: Level and at street grade
Required Site Work: Renovation of existing improvements
Utilities: All Available
Zoning: RM-1 and RS-4
Proposed Use: 126-unit residential development
Number of Units: 126
Density/Acre: 17.80
FLR: 2.16

Units of Comparison
Price/SF: $64.81
Price/Unit: $158,730
Price/FLR: $30.00

Comments
At the time of purchase, the site was developed with the former Miami Heart Institute building.
The improved portion of the parcel was zoned "HD," Hospital District. Since purchasing this site,
the grantees have had the zoning changed on the HD portion of the site to "RM-1," Residential
Multi-family Low Intensity, as well as having the land use changed to Multi-family. They have also
received approvals from the city of Miami Beach to redevelop the property to a multi-family
residential building retaining the existing nonconforming height, setbacks, floor area, and off-street
parking. The new development will contain approximately 111 units within the existing building,
eight newly constructed villas within the north parcel, and seven newly constructed villas in the
south parcel.
The site has been approved to be developed with a total net sellable area of 405,000 SF (See
documents in the Addenda). With approximately 350 SF per parking space for the 455 parking
spaces on the site, the total allowable square footage is estimated to be 666,798, an FLR of 2.16.
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LAND SALES SUMMARY
Sale Date Acres Price Zoning FLR Price/SF Price/FLR
1 01/13 7.08 $27,000,000 RMF-3B 2.45 $87.52 $35.66
2 12/12 1.12 $8,000,000 RM-2 2.00 $163.27 $81.63
3 11/12 0.47 $5,100,000 RM-2 2.00 $249.11 $124.55
4 11/12 0.86 $4,500,000 T6-8 O 5.00 $120.12 $24.00
5 07/12 2.17 $10,303,982 T6-12 O 4.85 $109.19 $22.51
6 02/12 0.34 $2,400,000 C 7.23 $159.70 $22.09
7 02/12 7.08 $20,000,000 RM-1; RS-4 2.16 $64.81 $30.00

LAND SALES ANALYSIS
In order to derive an estimated value of the site, an analysis of the land comparables and
adjustments to them is utilized. The performance of this analysis and adjustment process reflects
the influence that the following factors have on the purchase price:
Property Rights Conveyed
Conditions of Sale
Financing Terms
Market Conditions
Location
Site Work
Size
Density and Zoning

Property Rights Conveyed
The sales researched and used in this report were all transferred on the basis of a fee simple
estate. The subject's site is valued in this report on the basis of a fee simple estate. Therefore, no
adjustments are made to any of the sales for this factor.
Conditions of Sale
All the sales noted in this section were reported to be arm's length transactions, sold after
appropriate marketing endeavors, and all parties were knowledgeable about the marketplace. No
adjustments are needed for conditions of sale.
Financing Terms
The comparable sales were noted as being sold for cash or on a cash equivalent basis. Therefore,
no adjustments are made to any of the sales for financing terms.
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Market Conditions
The sales presented took place over a 25-month period prior to the date of value. Miami Dade
County appears to be recovering substantially from the economic downturn experienced in 2007
through 2009. Land prices appear to be rising throughout the county, rental rates for both
residential and retail components are increasing and transactions are taking place among all
sectors of the real estate market. We have made upward adjustments for market conditions for
the sales that transpired in 2012. The lack of recent transaction more likely stems from the lack of
supply of available land rather than the lack of demand for sites.
Location
The adjustment for location realizes that properties in areas of active growth and development, as
well as those easily accessible and highly visible usually sell for more per unit than properties in
areas that do not offer these attributes. The subject features a premier location on downtown
Miamis bay front adjacent to Miami Bayfront Park and the Miamimarina. If there were no
development restrictions in place for the City of Miamis bay front property, this would be a
premier development site. The subjects location is considered superior to all of the comparables
included in this analysis.
Upward locational adjustments are made to Comparable Sales 1 through 7.
Site Work
Further adjustments are made to those sales that required site work that was unusual or atypical,
including extending unavailable utilities to the site. All of the sales were considered to be in
developable condition at the time of the transaction. No adjustments are made to the comparable
sales for site work.
Size
In terms of size adjustments, it is typically found that the smaller the parcel, the higher the price
per SF with all factors held constant. Thus, a smaller parcel generally warrants a downward
adjustment on a price per SF basis when compared to a larger parcel and vice versa. The subject
parcel is 733,929 SF or approximately 16.85 acres. The subject is substantially larger than the
comparables included in this analysis. There have not been any transactions of large parcels like
the subject in Miamis downtown or surrounding neighborhood over the past few years. Due to the
subjects unique location, we have determined that including transactions involving larger sites,
outside of the area, would not be appropriate in the valuation of the subject. In terms of the price
per SF, more emphasis has been placed on Sales 1 and 7 which are somewhat similar to the
subject in terms of size.
The comparables have varying sizes as illustrated in the following table:
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Sale Acres Adjustment
1 7.08 None
2 1.12 Downward
3 0.47 Downward
4 0.86 Downward
5 2.17 Downward
6 0.34 Downward
7 7.08 None
Density and Zoning
A zoning adjustment takes into account the intensity of use or degree of density a property is
permitted. The greater either of these parameters, the more the property is worth, with all other
factors held constant. In terms of density and zoning, it is generally ascertained that the more
square footage permitted per SF, the higher the price per SF with all other factors held constant.
In the selection of the comparable sales, we have attempted to include sales that were similar to
the subject in terms of FLR (potential and actual). We have not included sales in the subjects
immediate area (CBD, Brickell and Omni neighborhoods) that were smaller parcels with much
higher allowable densities.
We have made adjustments to the sales to reflect their sale price based on the gross square
footage planned for the site. In the case where only the net rentable or net saleable square
footage was known we have estimated the square footage associated with parking and common
areas to arrive at a gross buildable area for a site. We are analyzing the subject based on the total
potential developable square footage, in terms of gross square feet, including parking and
common areas so we have attempted to extrapolate similar indicators for each of the land sales.
The subject site has a zoning designation of T6-8 O, Urban Core Transect District Open under
the jurisdiction of the City of Miami, under the Miami 21 zoning code. This zoning would typically
allow an FLR of 5.00 or developable square feet on the subject site of approximately. The actual
development approvals imposed by the City of Miami prior to the development of the Bayside
Marketplace supersede the subjects current zoning which took affect with the approval of the
Miami 21 zoning code in October of 2009. Therefore, in terms of the subjects zoning and density,
we have utilized the approved developable square footage of 687,000 SF or an FLR of 0.94 for the
subject as is. For the proposed development scenario, the subjects approved FLR would be
approximately 1,193,622 SF or an FLR for the site of 1.63. This proposed density is more in line
with the comparable sales.
Due to the large discrepancies in the allowable densities between the subject and the comparable
land sales, we have not considered the price per square foot basis.
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Price/FLR
Adjustment As Is
Price/FLR
Adjustment As Proposed
Sale Zoning FLR 0.94 1.63
1 RMF-3B 2.45 Upward Upward
2 RM-2 2.00 Upward Upward
3 RM-2 2.00 Upward Upward
4 T6-8 O 5.00 Upward Upward
5 T6-12 O 4.85 Upward Upward
6 C 7.23 Upward Upward
7 RM-1; RS-4 2.16 Upward Upward
The aforementioned analysis and adjustments to the preceding land sales are presented in the
following grid:
Land Sales Adjustment Grid Price Per FLR As Is
"As Is" FLR 0.94
Land Sale 1 2 3 4 5 6 7
Sales Price/SF $35.66 $81.63 $124.55 $24.00 $22.51 $22.09 $30.00
Property Rights Conveyed 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Conditions of Sale 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Financing Terms 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Market Conditions 0.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Adjusted Price/SF $35.66 $85.71 $130.78 $25.20 $23.64 $23.19 $31.50
Location 10.00% 10.00% 10.00% 15.00% 15.00% 15.00% 5.00%
Site Work 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Size 0.00% -10.00% -15.00% -15.00% -10.00% -15.00% 0.00%
Density/Zoning 5.00% 5.00% 5.00% 10.00% 10.00% 15.00% 5.00%
Overall Net Adjustment 15.00% 5.00% 0.00% 10.00% 15.00% 15.00% 10.00%
Adjusted Price/SF $41.01 $90.00 $130.78 $27.72 $27.18 $26.67 $34.65

The adjusted prices per FLR range from $27.18/FLR to $130.78/FLR with an average of
$54.00/FLR. The subjects allowable FLR of 0.94 is at the lower end of the range indicated by the
sales which would typically lead to a price per FLR at the higher end of the range.
We have placed primary emphasis on the two larger transactions, Land Sale 1 and Land Sale 7
which involved parcels intended for larger scale residential or mixed use development. These sales
indicated Price/FLR, after adjustments of $41.01/SF and $34.65/SF. Additionally, we have placed
emphasis on the two sales that have the lower FLR ratios, Sales 2 and 3.
We are of the opinion that an appropriate Price/FLR value for the subject should be between
$70.00/FLR and $80.00/FLR. We have concluded to $75.00/FLR based on the subjects water front
location and low allowable density.
The land value of the subject is calculated as follows:
SAY: $51,500,000 (RD)
Original FLR X Price per FLR = Value Conclusion
687,000 SF X $75.00 = $51,525,000
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Land Sales Adjustment Grid Price Per FLR As Proposed
"As Proposed" FLR 1.54
Land Sale 1 2 3 4 5 6 7
Sales Price/FAR $35.66 $81.63 $124.55 $24.00 $22.51 $22.09 $30.00
Property Rights Conveyed 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Conditions of Sale 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Financing Terms 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Market Conditions 0.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Adjusted Price/FAR $35.66 $85.71 $130.78 $25.20 $23.64 $23.19 $31.50
Location 10.00% 10.00% 10.00% 15.00% 15.00% 15.00% 5.00%
Site Work 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Size 0.00% -10.00% -15.00% -15.00% -10.00% -15.00% 0.00%
Density/Zoning 2.50% 2.50% 2.50% 5.00% 5.00% 7.50% 2.50%
Overall Net Adjustment 12.50% 2.50% -2.50% 5.00% 10.00% 7.50% 7.50%
Adjusted Price/FAR $40.12 $87.85 $127.51 $26.46 $26.00 $24.93 $33.86

The adjusted prices per FLR range from $24.93/FLR to $127.51/FLR with an average of $52.39/SF.
The subjects allowable FLR of 1.54 is at the lower end of the range indicated by the sales which
would typically lead to a price per FLR at the higher end of the range.
We have placed some emphasis on the two larger transactions, Land Sale 1 and Land Sale 7 which
involved parcels intended for large scale residential or mixed use development. These sales
indicated Price/FLR, after adjustments of $40.12/SF and $33.86/SF. Additionally, we have placed
emphasis on the two sales that have the lower FLR ratios, Sales 2 and 3.
We are of the opinion that an appropriate Price/FLR value for the subject should be between
$60.00/FLR and $70.00/FLR based on the proposed increased density under the new development
approvals. We have concluded to $65.00/FLR based on the subjects water front location and low
allowable density.
The land value of the subject is calculated as follows:
SAY: $77,600,000 (RD)
New Allowable FLR X Price per FLR = Value Conclusion
1,193,622 SF X $65.00 = $77,585,430
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CONCLUSION
One accepted method was utilized in order to determine the indicated values for the subject under
the as is and as proposed development scenarios. The indicated land values for the subject are
as follows:
As Is 687,000 SF of allowable development
$51,500,000
As Proposed 1,130,984 SF of allowable development
$77,600,000
We have utilized the estimated land values for the subject under the two scenarios to support the
market rent determination for the site under the two development plans. Previously, in the market
analysis section of the report, we concluded that an appropriate land overall rate for a property
similar to the subject would be between 5.00% and 7.00% and have concluded to 6.00%. Based
on this overall rate, market rental rates can be estimated based on the land values.
We have calculated a market rental rate for the subject, based on the current developed square
footage, as follows:
SAY: $3,100,000 (RD)
We have calculated a market rental rate for the subject, based on the proposed developed square
footage, as follows:
SAY: $4,700,000 (RD)

Estimated Land Value X Overall Rate = Market Rental Rate
$51,500,000 X 6.00% = $3,090,000
Estimated Land Value X Overall Rate = Market Rental Rate
$77,600,000 X 6.00% = $4,656,000
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FINAL RECONCILIATION

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Real Estate Valuation and Consulting
70
After an inspection of the subject, and analysis of pertinent physical and economic factors that
impact value, we are of the opinion that the market rent for the site underlying the Bayside
Marketplace and parking structures, assuming its continued use as a festival retail center, as of the
date of inspection, March 25, 2014, is:
$3,200,000/Year
THREE MILLION TWO HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.
We are of the opinion that the market rent for the site underlying the Bayside Marketplace, parking
structures and proposed Skyrise Tower, based on the proposed development plans, as of the date
of inspection, March 25, 2014, is:
$4,600,000/Year
FOUR MILLION SIX HUNDRED THOUSAND DOLLARS
Plus, an additional 6.00% percentage rent on gross retail revenues over a natural
breakpoint and an additional 15.00% percentage rent on gross parking revenues over
a natural breakpoint.

ADDENDA




QUALIFICATIONS OF TRACY COURTNEY


CORPORATE POSITION
Ms. Courtney is an Assistant Director employed by the firm of Joseph J. Blake and Associates,
Incorporated, in the Southeast Regional Office at 4000 Ponce de Leon Boulevard, Suite 410,
Miami, Florida.
Responsibilities include preparation of full narrative appraisal and market study reports for a wide
variety of property types and purposes, including but not limited to business parks, office
buildings, industrial buildings, shopping centers, multi-family projects, hotels and land.
FORMAL EDUCATION
The University of Michigan - Ann Arbor, Michigan
Bachelor of Arts, Economics Major

REAL ESTATE AND APPRAISAL EDUCATION
Real Estate Appraisal I A.I.B.
Construction Lending - Nova University

Appraisal Institute:
#1A-1 - Real Estate Appraisal Principles & Practices
#1A-2 - Basic Valuation Principles
#1B-A - Capitalization Theory and Techniques, Part A
#1B-B - Capitalization Theory and Techniques, Part B
#SPP - Standards of Professional Practice, Part A
#SPP-B - Standards of Professional Practice, Part B
#2-1 - Case Studies in Real Estate Valuation

RELATED WORK EXPERIENCE
Florida National Bank - Real Estate Loan Officer
Chase Manhattan Bank - Real Estate Analyst

PROFESSIONAL AFFILIATIONS
State-Certified General Real Estate Appraiser - State of Florida, #RZ0002076

QUALIFICATIONS OF TRACY COURTNEY




QUALIFICATIONS OF TED ALLEN, MAI


CORPORATE POSITION
Mr. Allen currently holds the position of Managing Partner in the Southeast Regional Office of
Joseph J. Blake and Associates, Incorporated, at 4000 Ponce de Leon Boulevard, Suite 410, Miami,
Florida. He has been associated with the firm since 1979.
FORMAL EDUCATION
University of Texas - Austin, Texas
Bachelor of Business Administration

PROFESSIONAL AFFILIATIONS

The Appraisal Institute MAI #6949, Certified through December 31, 2016
State-Certified General Real Estate Appraiser - State of Florida, #RZ 0000426
State-Certified General Real Property Appraiser - State of Georgia, #CG001855

CLIENTS

Clients served by Mr. Allen include banks, savings and loans, institutional investors, pension funds,
private individuals, development companies, real estate syndicators, and various other entities. A
specific client list or references will be furnished upon request.
APPRAISAL ASSIGNMENTS
Mr. Allen has been involved in real estate appraising since the completion of his formal education.
Real estate appraisal assignments have been performed in Florida and the Southeast United
States. The scope of these real estate assignments has included raw land, subdivisions, multi-
family projects, retail properties, office properties, historical properties, industrial properties,
lodging facilities, restaurants, and special purpose properties. Additionally, he has performed
marketability, consultation and feasibility reports. Specific project experience will be furnished
upon request.

QUALIFICATIONS OF TED ALLEN, MAI