Reso 2015-2405 - Laserfiche WebLink

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SALES COMPARISON APPROACH The Sales Comparison Approach is the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised,identifying appropriate units of comparison,and making qualitative comparisons with or quantitative adjustments to the sales price (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. Source: The Dictionary of Real Estate Appraisal, 5th Edition(Chicago: Appraisal Institute), 2010. The subject property contains a total area of 44,743 square feet or 1.0272 acres. The sales search included non-ocean front parcels within the immediate neighborhood. Three land sales and a current contract were found over the past few years. A complete description of each sale is included in the following table. A location map will follow. The land sales were all purchased with the same intent of multi-family and/or mixed use development. None of the sales included development approvals at the time of purchase. The primary determinant of market value for vacant land on Sunny Isles Beach is either predicated upon FAR or density. According to a representative with the Building and Zoning Department, Claudia Hasbun, all proposed projects,within the B-1 zoning code, are entitled to purchase bonuses up to 1.00,thereby, increasing the total FAR to 3.00, prior to the purchase of TDR's. In comparison to project costs the purchase price for bonuses are nominal.To qualify for TDR's all required bonuses must be purchased. The sales included varying zoning codes and FAR requirements. As such, the price per square foot of land area will be utilized. Land Sale 1 currently includes the Epicure market and café. The property will be re-developed with a large mixed use project. The sale represented a land transaction for future development. The property is considerably larger than the subject in size, but the transaction is dated. Land Sale 2 is the current contract on a similarly zoned parcel of land located about eight blocks north of the subject, along Collins Avenue. The property is smaller in size. The contract was signed in December 2014 and is scheduled to close in January 2015. Land Sale 3 is the recent sale of the McDonald's fast food restaurant to the immediate north. The site is identical in size and zoning. The buyer included similar partners within the same ownership group as the subject property. The property is encumbered by a long term lease that could potentially extend until March 2032. The current extension period ends in March 2017. The contract rent was reported to be fixed at annual rent of$65,000,NNN. The purchase price appeared to be predicated upon future development rights and was similar, on a per square foot basis, to Land Sale 2. From an investment standpoint the Overall Rate of Return is less than 1%. This low rate is reflective of a below market rent with no scheduled increases. Also the lease has a potential short remaining life. 18