08/16/2023 VAB - Laserfiche WebLink

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VALUATION Analvsis of Subiect Prover The purpose of this investigation and analysis was to estimate the Market Value of the Fee Simple Estate of Inlet Palms Townhomes, considering two valuation scenarios. I have estimated the Prospective Market Value of the Subject Property "Upon Completion of the Proposed Improvements" as of the date of assumed completion of construction projected as August 31, 2022. The entire site is being developed for phased, multi -family development of 90 units housed in ten, two and three-story buildings to be known as Urban Village on 51h Avenue. Five (5) of the buildings have been completed and all 27 units within the existing buildings have been sold. The units in the subject building -Phase 3 or Building I - will average 1,268 square feet in size and have an average asking price of $462,296. This translates to $365 per square foot. Sixteen (16) of the 24 units (67%) are under contract for a total of $5,987,500. The project is projected to be 100% pre -sold prior to completion of the proposed improvements. However, it is our projection that subsequent to completion an additional two months are required for the final sellout and to close on all of the units. According to the timeline provided by the developer, construction is anticipated to be completed around August 31, 2022. This analysis requires discounting over the anticipated closing period, with consideration for selling and carrying expenses, and developer's profit, As such, we have discounted related cash flows to the assumed date of completion on or about August 31, 2018. This analysis is made on a trended basis with respect to projected unit selling prices and sales expenses. I have valued the Subject Property As Is on the appraisal date February 23, 2022, represented by Phase 3's pro rata land value, site improvements and partial construction of Building 1. To arrive at this value, I deducted the costs to complete construction, as provided by the developer, from the Prospective Market Value ofthe Subject Property "Upon Completion of the Proposed Improvements." In the completion of this appraisal, data was collected from a variety of sources. The developer provided historic unit sales data on the Subject. Information on comparable improved sales was derived from conversations with sales agents at competing properties, review of sales records, and a search of Broward County Public Records. All sales utilized in our analysis were verified with a party to the transaction or with a broker or agent with direct knowledge of the property or transaction involved. However, the authenticity and reliability of representations made to us by others are not warranted. It is noted that the analysis of the data and conclusions derived therefrom are based on overall patterns and trends indicated, rather than on specific representations. -71-