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HIGHEST AND BEST USE The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Source: (The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute 2022). A fundamental concept of highest and best use is the idea that highest and best use is viewed from two perspectives: 1) The use of the real estate based on the presumption that the parcel of land is vacant or can be made vacant by demolishing any improvements (i.e., as vacant or as if vacant). 2) The use that should be made of the real estate as it exists (i.e., as currently improved or as if improved as proposed). There are four tests that a property must meet in order to indicate Highest and Best Use. The use must be physically and legally possible, financially feasible, and must be the most productive use among the possible alternative uses. Source: The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, 2020. Physically Possible The site must possess the size, shape area, soil and other physical characteristics to support the improvements that will develop the site to its Highest and Best Use, as if vacant. The site elevation is at about street grade, has the necessary utilities available on the site or at the boundary lines with no subsoil problems assumed. The surrounding properties include high rise condominium projects and similar low-rise motel and/or condominiums. The subject property is well suited for a high rise, residential, condominium project in accordance with the current zoning code and LDR. Legally Permissible The use must conform to the zoning regulations, private restrictions, building codes, environmental regulations and any other legal requirements. The subject property is zoned W-R by the City of Sunny Isles Beach, Florida. The zoning code and LDR permit a base FAR and density of 2.5 times the gross lot area and 50 residential units per acre. The base density for a hotel or an apartment -hotel is 100 units per acre. The maximum building height, which must be approved by the FAA, is currently 749 feet. The Sunny Isles Beach LDR permits a property owner/developer to increase the FAR and density of a potential project utilizing the bonus system and purchasing TDR's from a bank of City owned properties. The following table illustrates the various levels of development for the subject property, as right, with bonuses and with TDR's. 29 567