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SALES COMPARISON APPROACH (Continued) <br />Analysis (Continued) <br />Financing: <br />The sales each included cash or cash equivalent purchases of real estate. An adjustment for this <br />factor will also not be applied. <br />Market Conditions (Time): <br />There has been limited development along the ocean front in recent years. Only three projects are <br />in the approval pipeline and/or under construction. Despite increases in condominium unit pricing <br />overall returns, and residual values to the land, have not varied due to corresponding increases in <br />construction costs, interest rates, cost of obtaining capital and other pre -development costs related <br />to obtaining said approvals, bonuses and TDR's. Thus, based on the limited market data, or sales <br />activity on Sunny Isles Beach, an adjustment for the passage of time will not be applied. <br />In addition, after comparing the assemblage adjusted price to the subject sale the resulting price per <br />acre is similar to the other sales. <br />Zoning: <br />The sales and subject property are similarly zoned W-R. <br />Site Size: <br />According to market evidence a larger property will typically sell for less on a per acre basis than <br />a smaller property. This is observed when Land Sales 1 and 2 are compared to Land Sales 3 and 4. <br />Land Sale 3 is the most similar to the subject in site size. When these two groups of sales are <br />compared a difference in pricing from 7% to 15% is measured. For the purpose of this appraisal a <br />size adjustment at the midpoint or 10% will be applied to Land Sales 1 and 2. <br />Location: <br />The sales and the subject property include similar ocean front locations within the City of Sunny <br />Isles Beach. An adjustment for this factor will not be applied. <br />The table on the following page illustrates the adjustments applied to each of the sales. <br />38 <br />576 <br />