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SITE VALUATION 53 <br /> Estimate of Land Value <br /> Sales Comparison Approach <br /> The valuation of vacant land is generally accomplished by searching for recent sales of <br /> similar sites. The motivations behind the purchase are examined, reducing the sale <br /> prices into value indicators, comparing each sale with the subject property and finally <br /> reconciling the comparisons into a final value estimate. The reconciliation uses a <br /> common unit of comparison. According to brokers, developers and market participants, <br /> the proper value indicator of a site suitable for commercial development within this area <br /> is the sale price per square foot of site area. <br /> The current owner of the subject property obtained approvals from the City for the <br /> development of a 17-story, 136,250-square foot office tower with ground floor retail and <br /> a structured parking garage. However, the approvals, which were granted in October <br /> 2013, are scheduled to expire later this year as permits have yet to be pulled by the <br /> developer. As mentioned, the City is contemplating a purchase of the subject site for the <br /> potential development of an office building and parking garage to be utilized in <br /> conjunction with the adjacent Sunny Isles Beach Government Center which houses City <br /> Hall and other municipal services. <br /> The South Florida economic recovery is well underway but speculative office building <br /> sites have yet to trade with any frequency, especially in coastal areas such as the <br /> subject where multi-family residential development is the priority. As such, recent land <br /> sales within the subject submarket, especially those purchased for speculative office <br /> development, are extremely limited. Therefore, the comparable sales search <br /> concentrated on any recent transactions of competitive sites zoned for commercial <br /> development along the Collins Avenue corridor. A Comparable Land Sales Summary <br /> Table and location map are presented on the following pages. Detailed profiles of the <br /> comparables are presented in the addenda to this report. <br /> Clobus, McLemore & Duke, Inc. <br />