13-Plex Hollywood Beach 325 HARDING ST HOLLYWOOD BEACH. PeterDacko OFFER MEMORANDUM $2,675,000. Media Realty & Advisors

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1 13-Plex Hollywood Beach 325 HARDING ST HOLLYWOOD BEACH OFFER MEMORANDUM $2,675,000 PeterDacko Media Realty & Advisors

2 MISSION STATEMENT Media Realty was created in 2004 with the vision that real estate is the one common denominator that binds the neighborhoods to its residential and business communities alike. Media Realty is a full service real estate company with a business platform which includes brokerage services, property management, tenant placement services, and other ancillary services such as valuations, highest and best use analysis and tax abatement. Through our commitment of creating and maintaining long term relationships Media Realty is dedicated to reshaping our neighborhoods with best business practices and community involvement. Media Realty will enable our clients to maximize their net returns by providing the best information which allows our clients to make the most educated decision in a timely manner. Media Realty offers a unique value proposition no matter which side of the transaction you are on.

3 TABLE OF CONTENTS Forward Hollywood Beach Section 1 Subject Property Section 2 Rent Comparable Section 3 Sale Comparable Section 4 Income & Expense 3

4 INTRODUCTION TO BROWARD COUNTY Broward County is well known for its brilliant sunshine in the winter, and ocean breezes in the summer, but it is also a vibrant, diverse destination for many growing businesses, corporations and others who seek the unique South Florida lifestyle. Currently, the County consists of thirty-one (31) unique municipalities, from the bustling urban center of the City of Fort Lauderdale, to the tranquil rural lifestyle found in the Town of Southwest Ranches. The diversity of lifestyles and tremendous population growth has positioned Broward County to become the second most populated county in the State of Florida. Broward County is an urbanized county located in southeast Florida. It is bounded by Palm Beach County to the north, Miami-Dade County to the south, Hendry and Collier Counties to the west, and the Atlantic Ocean on the east. The County population has increased steadily from 5,135 in 1920 to more than 1.7 million in This dramatic increase has made Broward County the 15th largest County (in terms of population) in the United States and the second largest in the State of Florida, just behind Miami-Dade One of the challenges residents of Broward County will face with is build-out. Broward County is the first County in the State to face the issue of build-out. Build-out occurs when available vacant or undeveloped land no longer exists. New development cannot occur without the demolishing, reconstructing, or subdividing of existing properties. As build-out becomes a reality, redevelopment within Broward County will be the future focus of how the County manages and directs growth, while protecting existing residential neighborhoods. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 4

5 INTRODUCTION TO HOLLYWOOD FL The City of Hollywood is a mature and built-out community, where rapid population growth in the 1950s and 1960s has given way to a population that is stable in size but undergoing significant changes in its composition. The October 1997 issue of Money Magazine noted that Hollywood's demographics best represent what the United States will look like in the year Hollywood's racial diversity, cultural variety, and blend of the old and young are where the country is headed. Twenty-seven percent of Hollywood's residents are 55 or older; thirteen percent are 45 to 54; and thirty-one percent are 25 to 44. Hispanics make up seventeen percent; African Americans thirteen percent; Whites sixty-eight percent; andasian Americans two percent of the population. A coastal city of over 130,000 residents located in Broward County, Hollywood is nestled between Fort Lauderdale and Miami. Fort Lauderdale-Hollywood International Airport abuts the city, while Port Everglades, the second busiest cruise port in the world, is partially within its municipal boundaries. Interstate 95, the Florida Turnpike, Tri-County Commuter Rail, and two major railroads cut through the city in a north-south direction. Miami International Airport and the Port of Miami are less than twenty-five miles away, providing further opportunities for Hollywood residents and companies to have access to the global marketplace. The region is served by a substantial post-secondary educational infrastructure, including Florida Atlantic University, Florida International University, the University of Miami, a number of smaller private universities and colleges, and a community college system. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 5

6 COMMENTS ON LOCATION The subject neighborhood is located in the area known as East Hollywood. It is geographically defined by the Intracoastal Waterway to the east, Dixie Highway to the west, Sheridan Street to the north and Pembroke Road to the south. This area includes the residential neighborhood of the Lakes, West Lake and the ill-defined residential areas between Federal and Dixie Highways. The main north-south access in Sub-Area 2 is US 1, which provides linkage from areas outside the City to Young Circle, a city wide and regional destination point. Sub-Area 2 contains three neighborhoods, Hollywood Lakes, Dixie Highway Corridor (North and South) and Downtown Hollywood. The Hollywood Lakes neighborhood was planned as a part of Joseph Wesley Young s original 1925 city vision. The neighborhood was designed to be an upscale residential community with access to the beach and central business district. The Dixie Highway Corridor-North neighborhood has developed as a result of its location to the Florida East Coast Railroad. Businesses have been located along the railroad tracks since the establishment of the City. Downtown Hollywood is an important part of Sub- Area 2 as well as the City as a whole. Downtown was first established in 1921 as a business district and main street. The recent revitalization of Downtown has renewed residents appreciation of the street side dining, sidewalk strolling, window shopping and other amenities Downtown has to offer. The residential neighborhoods are mix of single-family, multi-family and motels. The single-family areas east of Federal Highway have expressed an interest in preserving the existing housing stock. These areas are somewhat buffered from commercial activities due to the transitional multifamily uses. However the areas west of Federal Highway are still permeable to the adverse impacts from cut-through traffic and crime. The primary commercial corridors and nodes within Sub-Area 2 are Downtown Hollywood and Federal Highway. Redevelopment in this area has been the subject of several planning activities including the development of a Community Redevelopment Agency for the Downtown, parking studies and the recent Downtown Hollywood, ULI report which recommends several strategies for redevelopment of the Downtown. Since its adoption, the City has actively pursued implementation by, for example, encouraging new residential uses downtown and conducting a study to redesign Young Circle Park. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 6

7 HOLLYWOOD BEACH REDEVELOPMENT This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. Page 7

8 BEACH IMPROVEMENTS PARKING GARAGE AND COMMUNITY CENTER The two story community center adjacent to the garage will house public restroom facilities at grade level and a small paddleball proshop. The second floor of the community center will have a continuous balcony facing east and south. It will have a 1,735 S.F. multipurpose community center room/banquet hall with support services such as a kitchen, office and restrooms. The architectural style of this project is Nautical Deco. Extensive landscaping will be utilized on both Connecticut and Garfield Streets as a buffer zone for the garage, and there will be a shaded pedestrian walkway along these streets as well. Finish paving and landscape materials will be congruous with those utilized in the adjacent Charnow Park renovation project. The paddleball courts will remain in their present location, and receive new fencing and access gates. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. Page 8

9 BEACH IMPROVEMENTS CHARNOW PARK RENOVATION The park will be completely renovated and improved providing many new amenities. This urban pocket park along the beach will provide the backdrop for an extensive array of activities. A large entertainment plaza with an interactive water fountain, surrounded by tiered shaded seating 4 Picnic Pavilions and a large entertainment pavilion (open on all sides) Two new play areas will include state-ofthe-art playground equipment for both very young toddlers and older children Extensive native landscaping and hardscape material coordinated with the Broadwalk Renovation project and Garfield Street Parking Garage and Community Center will unify this entire site This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. Page 9

10 BEACH IMPROVEMENTS; THE BROADWALK Beach CRA funds projected at $14,150,400 will provide a complete makeover of the oceanfront Broadwalk. Improvements include: Multicolored concrete decorative pavers in the pedestrian area Tabby concrete bike path Crushed shell jogging path 18" high decorative wall with LED lighting Historically significant Tri-globe and Acorn lighting fixtures with decorative concrete pads Palm Tree clusters Re-location of showers and the addition of ADA accessible shower New public restrooms Beach CRA funds projected at $7,200,000 will provide improvements to street ends along the Hollywood Beach Broadwalk. Project details below: * 40 Blocks, Thomas to Jefferson Street * Create gateways, landscaped plazas and vista points * Incoporate water features, sculptures and / or central focal points * Pave sidewalks and streets with decorative pavers This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. Page 10

11 UNDERGROUND UTILITIES & SEWER UPGRADES Beach CRA funds estimated at $22,526,400 will be used for the conversion of underground utilities. Project details are below: * 52 blocks, Thomas to Magnolia Street * FPL, Bellsouth and Comcast lines * Underground service* from right-ofway to private property * Estimated project completion date is June 2010 Beach CRA funds in the amount of $15,600,000 are being used to replace water and sewer lines along surf road and the east-west streets. This is the first of a multiphase capital improvements project implemented by the City of Hollywood's Design and Construction Management Department. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. Page 11

12 SUBJECT PROPERTY 12

13 BCPA This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 13

14 BCPA This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 14

15 SKETCH This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 15

16 ZONING & DEVELOPMENT REGULATIONS 325 Harding Street Hollywood Beach 16

17 AERIAL VIEW BEACH RESORT RESIDENTIAL DISTRICT Zoning BRT-25-R This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 17

18 DEVELOPMENT REGULATIONS BTR-25 Beach Community Redevelopment Districts. a. Beach Resort Residential District BRT-25-R. All properties within BRT-25-R shall meet all applicable codes and regulations as well as Specific Site Requirements, General Site Requirements, Landscape Standards and District Design Standards. See Appendix 1, for illustration of height and setback requirements. 1. Uses: a. Main permitted uses: Residential; Hotels and motels; and Bed & Breakfast. b. Special exception: Places of public assembly, including places of worship, meeting halls and fraternal lodges; and Schools, public or private, including adult educational facilities. 2. Maximum density: a. Residential: 25 units per acre b. Hotel/motel: 50 rooms per acre 3. Building height: a. North of Tyler Street - 50 feet b. South of Harrison Street - 65 feet 4. Building setbacks: a. Building base setbacks: Cross Streets** Ancillary Retail State Road A1A Surf Road Interior 20 feet 10 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots 5 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots 10 feet 10 feet 5 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots 5 feet For lots less than or equal to 40 feet wide and 80 feet deep (single lots), only one side setback is required 18

19 DEVELOPMENT REGULATIONS BTR-25 **Cross Street setbacks may be a minimum of ten feet for up to 40% of the site frontage. b. Building tower setbacks*** Cross Streets State Road A1A Surf Road 25 feet 10 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots 20 feet 10 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots 15 feet 10 feet for lots less than or equal to 120 feet wide and 80 feet deep and not to include thru lots Off-street parking standards: a. Notwithstanding the provisions of Article 7 of the Zoning and Land Development Regulations, the following parking standards shall apply: Residential Hotel/Motel Minimum 1 space/unit Minimum 1 space/room Maximum 1.5 spaces/unit Maximum 1 space/room The following minimums shall apply for lots less than or equal to 40 feet by 80 feet: 0-4 rooms: 0 spaces/room 19

20 DEVELOPMENT REGULATIONS BTR-25 District (Multiple Family MF) Maximum Density, units per acre* Single Family Duplex Town house Apt. Bldg. Hotel Commercial (5) BRT-25 (Beach Resort MF) 25 for Apt. Bldg. 50 for Hotel, except if Comprehensive Plan land Use designation is Commercial ** Yes Yes Yes Yes Yes Special Exception for eating and drinking uses if east of AIA, otherwise they are a Permitted Use; pawn, thrift, consignment shops, psychic help uses, tattoo shops and office are prohibited; all other commercial uses are permitted. Minimum Unit Size (Sq. Ft.) District Mi n. Lo t Ar ea (sq. ft.) * Min. Lot Width* (ft.) Max. Height (ft.) Land- scape, open space** Single Family (SF) (Dup) Duplex Townhouse. Apt. Hotel (5)BRT North of Tyler to Sherman Street - 50 feet. South of Harrison St ft. and North of Balboa Street ft. 40% Min 750 Avg 15% of units ; 85% of units

21 PHOTO ADDENDUM 325 Harding St Hollywood Beach 21

22 PHOTO ADDENDUM

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28 PHOTO ADDENDUM UNIT 2 ND FLOOR

29 RENT SURVEY

30 RENT SURVEY HOLLYWOOD BEACH VACATION RENTALS Day T Coral House 2300 N Surf Rd One Bedroom In Season Off Season $114 info@thehollywoodbeachcoralhouse.com Week Manta Ray Inn One Bedroom In Season $169-$189 $1025-$ S. Surf Road Off Season $230-$250 $1400-$ Two Bedroom In Season $345 $1,995 Off Season $275 $1,622 DeSoto Oceanview Inn Efficiency $ DeSoto Street Studio $149 (954) One Bedroom $189 Sheldon Hotel One Bedroom In Season $150-$ N SURF ROAD Off Season $124-$ Sea Downs Efficency In Season $150-$165 $975-$ N Surf Rd Off Season $99-$115 $581-$ One Bedroom In Season $165-$175 $1092-$1190 Off Season $116-$126 $700-$815 Two Bedroom In Season $1554-$1645 Off Season $1043-$1085 Atlantic Sands One Bedroom In Season $210 $1, Hayes Street Off Season $115 $

31 RENT SURVEY HOLLYWOOD BEACH VACATION RENTALS Hollywood Beach Seagull Efficency In Season $ Oklahoma ST Off Season $ The St. Maurice Beach Inn Standard In Season $ Michigan St. Off Season $ stmauriceinn.com/ Efficency In Season $180 Off Season $100 One Bedroom In Season $300 Off Season $219 Silver Spray Motel Standard In Season $ N Ocean Dr Off Season $ Studio In Season $229 Off Season $120 Hollywood Beach Swan Standard In Season $ N Ocean Dr Off Season $ Suite In Season $338 Off Season $197 Hollywood Beach Sea Turtle Standard In Season $ Roosevelt Off Season $ Sun Beach Inn Standard In Season $ Oklahoma ST Off Season $94 31

32 RENT SURVEY STUDIO & 1 BEDROOM APT SEASONALLY Address Room Type In Season Out of Season Weekly 2710 N OCEAN DR Efficencies $500 Dream Inn Hotel Rooms $ NEBRASKA ST One Bedroom $877 $1,245 Hollywood by the Sea HAYES St Eff $1,050 $395 Atlantic Sands 322 NEVADA ST Eff Nevada Street Apartments One Bedroom South Surf Road Eff $1,162 $952 Marine Villas One Bedroom $1,365 $1, McKinley Street Eff $775 $490 Dolphin Motel Large Eff $875 $560 One Bedrom $1,000 $ Buchanan Street Eff $720 $490 Angle Fish Inn Large Eff $800 $560 One Bedrom $900 $700 Large One Bedroom $1,050 $ Desoto Street Eff $1,393 $903 The Desoto Oceanspray Inn Large Eff $1,603 $1,043 One Bedrom $1,883 $1,183 32

33 RENT SURVEY HOLLYWOOD BEACH ANNUAL RENTALS Address CITY List Price Sale Price CD MOVE Days on Year Bed Bath IN$ Market Built PETS POOL 324 Indiana St HOLLYWD $1, Y N 101 N OCEAN DRIVE # 509HOLLYWD $1,350 $1,350 11/23/ N Y 3220 N Surf Road # 3 HOLLYWD $1,000 $1,000 4/20/ N N 2118 N Ocean Dr # 1 HOLLYWD $1,250 $1,250 6/7/ N N $1,250 $1, INDIANA ST HOLLYWD $1, Y N 326 WILSON ST # 104 HOLLYWD $2, N N 1900 N OCEAN DR # 7 HOLLYWD $1,300 $1,300 12/1/ N N 2501 OCEAN DR HOLLYWD $2,300 $2, N Y 3220 N SURF RD # 2 HOLLYWD $1,600 $1,600 4/15/ N N $1,515 $1, N OCEAN # 3 HOLLYWD $2,200 $2, Y N 1418 N Ocean Dr # 2 HOLLYWD $2,500 $2,500 7/12/ Y N $1,643 $1,613 33

34 COMPARABLE SALES

35 DIRECT SALES COMPARISON A comparable sale is property that is similar to the subject property in most respects. It is located in a nearby location. It has recently sold for a fair market value. The selection of comparable sales is in most appraisals is the single most determining factor in establishing the value. The responsibility is to fully research the local real estate market and determine which comparable sales represent the best value characteristics of the subject property. The market or direct sales comparison approach to an estimate of value is a process of comparing market data, that is, prices paid for similar properties, prices asked by owners, and offers made by prospective buyers or the tenants willing to buy or lease. Typically a comparison grid is used and adjustments are made to each comparable sales used for major differences between the comparable and the subject property for such items as location, construction quality and significant amentias, etc. In the market approach, the attempts are made to both gauge and reflect the anticipated reaction by a typical purchaser to the subject property. This analysis has been prepared solely for informational purposes to assist the owner(s) in determining whether to proceed with the sale of the property. No representation as to the accuracy or appropriateness of the information is made. Although we believe the information to be reliable, we will not be liable for misstatements of facts, errors, omissions, or prior sale of the property. Owners must verify the information when determining their best choice of action. 35

36 COMPARABLE GRID CHART 2017 HOLLYWOOD BEACH PRIMARY EMPHASIS Address Original List Price Current Price Sale Price Closing Date Days on Market #Units Unit Breakdown & Rent Analysis Adjusted Area SF 325 Harding St $2,675, (0/1); (2/1) ; (1/1) $ $205, % 326 Fillmore St $1,439,000 $1,439, (1/2) ;4 (0/1) $ $239, % 309 Oklahoma St $2,000,000 $2,000, (0/1); (1/1) $ $222, % 311 Nebraska St $2,995,000 $2,525, /1); 3 (1/1) $ $252, % 315 Roosevelt St $2,950,000 $2,750, (1/1) $ $343, Cleveland St $3,750,000 $2,900, (0/1) 2 Twnhses $ $322, POLK ST $3,170,000 $2,990,000 6 (2/1) 3 (1/1) 2(0/1) $ $498, % 324 Van Buren St Unit#20 $4,490,000 $3,500, (0/1) 2 (2/1) 2 (2/2) $ $175, % 1907 N SURF RD Legal 9 Units $5,900,000 $3,695, (0/1) $1500/Wk Direct H $ $284, % 2115 N Ocean Dr $3,700,000 $3,700, (0/1) 3 (1/2) $ $176, % 1500 N Ocean Dr Condo $4,500,000 $4,500, (0/1) 3 (1/1) 4574 $ $264, N Ocean Dr $17,500,000 $15,000, (0/1) $ $277, Nebraska Street $2,250,000 $2,090,000 11/18/ (1/1) 7 (0/1) $ $209, % 315 Arthur St $3,850,000 5/3/ (1/1) (0/1) $ $256, Nevada St $3,650,000 $3,500,000 3/8/ (1/1) 6 (0/1) $ $233, % 328 Minnesota St $1,200,000 $1,200,000 $1,085,000 7/12/ (1/1) $379/Wk $ $135, Buchanan St $1,499,999 $1,499,999 $1,230,000 5/3/ (1/2) 3 (1/1) (0/1) $ $246, Georgia St # 1-4 $810,000 3/31/ $ $202, Grant St $958,800 8/4/ $ $479, Polk St $820,000 3/1/ $ $410,000 Lot Size Year Built Price per SqFT Price per Unit $ $275,226 $ $294,705 GRM CAP 24

37 COMPARABLE GRID CHART HOLLYWOOD BEACH LEAST EMPHASIS Address CITY H 2 O List Price Sale Price CD Days on Year No Units Adj SF Market Built Unit Breakdown Zoning $/Unit $/SF 325 Harding St HOLLYWD N $2,675, (0/1); (2/1); (1/1) BRT-25 $205, N OCEAN DR H2O HOLLYWD Y 1,850, COM $264,286 $ N Ocean Dr HOLLYWD N 2,500, Studio, 5 Hotel rms BRT-25 $208,333 $ POLK ST HOLLYWD N 3,500, (2/1) $1450; 3(1/1) $1250; 2 Studio $950 BRT-25 $583,333 $1, N SURF RD HOLLYWD Y 3,950, Studios $1500 COM $303,846 $1, Grant St HOLLYWD N 1,100,000 Pending (2/1) Ronavated $550,000 $ Walnut St HOLLYWD N 825, (1/1) $1200 (1/2) $1200 $412,500 $ Van Buren St HOLLYWD Y 4,490, Studios; 2 (2/1); 2 (2/2) BRT-25 $224,500 $ N Ocean Dr HOLLYWD 650, $162,500 $ Oklahoma ST HOLLYWD N 2,500, $416,667 $ MCKINLEY ST H2O HOLLYWD Y 12,300, Redevelopment Neptune Timeshare 0 $424,138 $ N SURF RD H2O HOLLYWD Y 15,900, COM $757,143 $2, NEVADA ST HOLLYWD N 3,650,000 3,500,000 3/7/ (1/1); 6 (Studios) 0 $233,333 $ Misouri ST HOLLYWD N 879, ,000 5/16/ (1/1) $266,667 $ ARTHUR ST HOLLYWD N 4,150,000 3,850,000 5/2/ (1/1); 1 Studio MOTEL $256,667 $ COOLIDGE ST HOLLYWD N 795,000 9/16/ (2/1) $2400(1/1)$ Eff$1100 $198,750 $ NEW YORK ST HOLLYWD N 1,115,000 10/20/ SRF (3/2) SFR (1/1) $557,500 $ N OCEAN DR HOLLYWD Y 1,300,000 7/30/ $650,000 $ BUCHANAN ST HOLLYWD N 1,300,000 8/26/ $433,333 $ Listed $355,010 $ Sold $370,893 $

38 COMPARABLE GRID CHART 2015 HOLLYWOOD BEACH SECONDARY EMPHASIS Active Closed Sales Address CITY List Price Sale Price CD Days on Lot Cap Year #U Breakdown & Rent Survey H2O Adj SF Price/Unit Price/SF GRM Market Size Rate Built 325 Harding St n $205,769 $ % Fillmore St HOLLYWD 1,439, Eff 4 (1/1) $1850 N 2, $239,833 $ % N OCEAN DR HOLLYWD 1,750, Commercial Y $875,000 $ % POLK ST HOLLYWD 3,200,000 6 (2/1) $ (1/1) $1250 (0/1) $950 N $533,333 $ Cleveland St HOLLYWD 3,750, (0/1); (2/2) (4/2) 2 Twnhse N $416,667 $ Van Buren St # 20HOLLYWD 3,800, (0/1) 2 (1/1); 2 (2/1) Y $190,000 $ % N SURF RD 3,950, (0/1) $1500/WK Y $303,846 $1, % WALNUT ST HOLLYWD 849, ,000 3/27/ (1/1) $1200; 2 (0/1) $950 Superior N $169,000 $ % TYLER ST 1,300,000 1,250,000 10/24/ N $312,500 $ WALNUT ST 1,800,000 1,600,000 5/25/ (1/1) Superior N ,437 $266,667 $ WALNUT ST 1,850,000 8/25/2015 N ,584 $ DE SOTO 1,250,000 5/15/ N ,534 $62,500 $ S OCEAN DR 3,200,000 3,000,000 5/4/ N ,270 $157,895 $ % NEBRASKA ST 2,250,000 2,100,000 11/13/ (1/1) $4000/M; 7 (0/1) N $210,000 $ % NEVADA ST HOLLYWD 3,650,000 3,500,000 3/7/ (1/1); 6 (0/1) N $233,333 $ % ARTHUR ST HOLLYWD 4,150,000 3,850,000 5/2/ N $256,667 $ N OCEAN DR 9,400,000 9,000,000 4/9/ (1/1) $1500/W, 18 (0/1) N $173,077 $ % 1960 Listed $316,753 $ % 254 Sold $204,626 $ % 24

39 INCOME & EXPENSES

40 CASH FLOW ANALYSIS POTENTIAL GROSS INCOME (PGI) less VACANCIES Equals EFFECTIVE GROSS INCOME (EGI) less OPERATING EXPENSES equals NET OPERATING INCOME (NOI) less DEBT SERVICE equals CASH ON CASH RETURN

41 UNDERSTANDING CAP RATES Capitalization Rate = Net Operating Income (NOI) Value Example: A property has a NOI of $100,000 and a Cap Rate of 10%. Thus a value of $1,000,000 As the Cap increases to 11% the price decreases to $909,000 $100,000 10% $100,000 11% = $1,000,000 = $909,091 Conversely as the Cap Rate decreases to 9% the overall value has increased to $1,100,000 Sub-Market: For each $1,000 of NOI, our market responds with between $11,000 to $12,000 of value $100,000 9% = $1,111,111 Buyer: Cap Rate goes up Seller: Cap Rate goes down

42 INCOME AND EXPENSE Summary Price: Down Payment: Number of Units: Price per Unit Current GRM: Current CAP: Annual Rent per Square Foot: Approximate Age: Approximate Lot Size: Approximate Net RSF: Cost per Net RSF: $2,675,000 Purchase Money Mortgage 25.00% $668,750 Terms: 13 $205, Monthly Payment: 6.06% $ , ,994 $ SQ FT Proposed Financing 4.50% interest 25 yr. amortization $2,006,250 $11, Scheduled Gross Income: Less Vacancy Rate Reserve: Gross Operating Income: Less Expenses: Net Operating Income: Less Loan Payments: Pre Tax Cash Flow: Plus Principal Reduction: Total Return Before Taxes: Annualized Operating Data Current Rents $336,800 $58, % $277, ,936 $ 162,024 $ 135,300 26, % * $ 11,573 38, % * Scheduled Income Annualized Expenses IN SEASON 16 Weeks 95% Occupancy Off Season 32 Weeks 80% Occupancy Taxes: $ 51,338 UNIT BDRMS/ Weekly Monthly Total Seasonal Weekly Monthly Total Off Insurance: 12,000 NUM BATHS Rent Rent/Unit Income Rent/Unit Income Season Income Maintenance: 4, /1 Large 1,200 $3,420 $13,680 $700 $1,680 $53,760 Water & Trash 6, /1 Small 1,000 $7,600 $30,400 $600 $3,840 $122,880 Landscaping 1, /1 1,500 $1,425 $5,700 $1,000 $800 $25,600 Licenses /1 1,100 $1,045 $4,180 $850 $680 $21,760 Labor 13,600 $53,960 $224,000 Management 13,898 NOTE Occupancy is estimated at Electric 6,000 95% for 16 Weeks In Season Cable & WiFi 6,600 70% for 32 Week Off Season Total Scheduled Rent: $13,490 $7,000 Monthly Scheduled Gross Income: $13,490 $7,000 Total Expenses: $ 115,936 In Season Off Season Per Net Sq.Ft.: $29.03 Scheduled Gross Income per Season: $53,960 $224,000 Per Unit: $8,