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Overview of the Subject Property: <br />The subject property is a 183 unit manufactured home community known as <br />Midway Estates. The property is located on the east side of US Hwy 1. The address <br />is 1950 S US Hwy 1, Vero Beach, Florida. The community is located on 27.4 <br />acres. The community was originally developed circa 1960 and includes a <br />clubhouse and other common area improvements. <br />Summary of evidence presented by the property appraiser: <br />The Just Value assessment presented at the beginning of the hearing was <br />$5,927,523 or $32,391 per site. <br />The property appraiser (PA) presented 3 comparable sales of manufactured home <br />parks that sold in the range of $70,383 to $160,584 per site. The comparable sales <br />were presented in a sales chart. No adjustment grid or analysis was presented and <br />no conclusion was stated from the comparable sales presented other than the range <br />of the sale price per site and the subject's assessment at $32,391 per site. It was <br />noted that comparable sale 2, which sold August 2021 for $12,880,000 or $70,383 <br />per site, was the sale of the subject property. The PA noted that the current <br />assessed value for the subject property is approximately 50% of the recent sale. No <br />other discussion or analysis was provided regarding the comparable sales. <br />In the income approach, the PA used $900 per site per month for the rental rate. <br />This resulted in a potential gross income of $1,976,400. Vacancy and collection <br />loss of 10% was deducted from the PGI and indicated an effective gross income <br />(EGI) of $1,778,760. The PA noted that, per the park manager, the rental rate in <br />the park ranged from $964 to $1,014 per month. The rental rate included utilities <br />except electric. <br />Expenses were estimated at 10% of effective gross income for management and <br />40% of effective gross income for all other expenses, for a total of $889,380. This <br />resulted in a net operating income of $889,380. The PA used a capitalization rate <br />of 6.0% and 8.0%. Capitalizing the net operating income at 6% resulted in a <br />preliminary value of $14,800,000 (r). The PA made no deduction for the Cost of <br />Sale (COS) in the income approach. If deducting a COS of 15% it would result in a <br />just value indication of $12,599,550. <br />Capitalizing the net operating income at 8% resulted in a preliminary value of <br />$11,100,000 (r). The PA made no deduction for the Cost of Sale (COS) in the <br />2 <br />2023-069 -55- Page 3 of 6 <br />