APPRAISAL REPORT
HISTORIC CITIZEN BANK BUILDING 1367 North Miami AvenueMiami, Miami-Dade County, Florida 33132 CBRE, Inc. File No. 17-397MI-0518-1
Jason Walker Executive Director OMNI / MIDTOWN CRA
1401 North Miami Avenue, 2nd Floor Miami, Florida 33136
www.cbre.com/valuation
VALUATION & ADVISORY SERVICES
777 Brickell Avenue, Suite 910 Miami, FL 33131 T (305) 381-6472 www.cbre.com March 28, 2017 Jason Walker Executive Director
OMNI / MIDTOWN CRA
1401 North Miami Avenue, 2nd Floor Miami, Florida 33136
RE: Appraisal of Historic Citizen Bank Building 1367 North Miami Avenue
Miami, Miami-Dade County, Florida 33132 CBRE, Inc. File No. 17-397MI-0518-1 Dear Mr. Walker:
At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report.
The subject is a 14,820-square foot, 1 & 2-story, vacant bank building located at 1367 North Miami Avenue in Miami, Florida. The improvements were constructed in 1924 and are situated on a 0.24-acre, high density mixed-use zoned site within the Media & Entertainment District and within the OMNI CRA in downtown Miami. The subject is more fully described, legally and physically, within the enclosed report.
Based on the analysis contained in the following report, the market value of the subject is concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
As Is Fee Simple Estate March 22, 2017 $4,500,000
Compiled by CBRE
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter.
The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal
March 28, 2017 Page 2
The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof).
It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us.
Respectfully submitted,
CBRE - VALUATION & ADVISORY SERVICES
Stuart J. Lieberman, MAI James E. Agner, MAI, AI-GRS, SGA, MRICS Vice President
Cert Gen RZ1074 Senior Managing Director – Florida/Caribbean Cert Gen RZ382
www.cbre.com/stuart.lieberman www.cbre.com/james.agner
Phone: (305) 381-6472 Phone: (305) 381-6480
Fax: (305) 381-6441 Fax: (305) 381-6441
Email: [email protected] Email: [email protected]
Certification
Certification
We certify to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan.
7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida.
8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
10. As of the date of this report, Stuart J. Lieberman, MAI and James E. Agner, MAI have completed the continuing education program for Designated Members of the Appraisal Institute.
11. Stuart J. Lieberman, MAI has and James E. Agner, MAI has not made a personal inspection of the property that is the subject of this report.
12. No one provided significant real property appraisal assistance to the persons signing this report.
13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest.
14. Stuart J. Lieberman, MAI and James E. Agner, MAI have not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.
Subject Photographs
Aerial View
Subject Photographs
Photo 1 – Front View From N. Miami Ave. Photo 2 – Side View From NE 14th Street
Photo 7 – 2nd Floor View of Vacant Bank Photo 8 – 2nd Floor View of Vacant Bank
Photo 9 – View South Along N. Miami Ave. Photo 10 – View East Along NE 14th Street
Executive Summary
Executive Summary
Property Name Location
Highest and Best Use
As If Vacant As Improved
Property Rights Appraised Date of Report
Date of Inspection Estimated Exposure Time Estimated Marketing Time
Land Area 0.24 AC 10,637 SF
Zoning Improvements
Property Type Office
Number of Buildings Number of Stories Gross Building Area Net Rentable Area
Year Built 1924 Condition Buyer Profile (Mixed Use) Investor-Local Poor 1 & 2 14,820 SF
Historic Citizen Bank Building
March 22, 2017 Fee Simple Estate
Renovate & repurpose to restaurant/bar and entertainment use, or redevelop with mixed-use residential/tower and/or renovate with residential & hotel tower overbuild
Mixed-use residential/retail, restaurant, bar/lounge/entertainment and/or hotel
1367 North Miami Avenue, Miami, Miami-Dade County, Florida 33132 March 28, 2017 2 14,820 SF 6 to 9 Months 6 to 9 Months
T6-24 O, Urban Core Transect Zone
VALUATION Total Per SF
Land Value As If Vacant $4,250,000 $399.56
Market Value As Is On March 22, 2017
Cost Approach $4,525,000 $305.33
Sales Comparison Approach $4,500,000 $303.64
Income Capitalization Approach Not Applicable
---Insurable Value $2,075,000 $140.01
CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Value
As Is Fee Simple Estate $4,500,000
Compiled by CBRE
Date of Value
STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) Strengths/ Opportunities
The subject building facade is historically relevant and may be eligible for Certificate of Transfer of Development Rights (TDRs).
The subject is located along a highly visible, gateway corner of NE 14th Street and N. Miami
Avenue within the Media & Entertainment District (MED).
The MED district is within close proximity and walkable distance to the Adrienne Arsht Performing Arts Center, Museum Park, Bayside Marketplace, American Airlines Arena, PortMiami, Biscayne Bay and the downtown Miami central business district (CBD).
The downtown Miami CBD is transitioning into a 24/7 work/live urban center.
Long term outlook and population growth for the downtown Miami CBD is very positive, including Port Miami growth from the Panama Canal expansion and new residential & hotel towers recently delivered, under construction and proposed.
New project cancellations, developer partnership dissolutions and self-regulating market conditions is off-setting some of the overbuild and “bubble” conditions.
Weaknesses/ Threats
Substantial capital resources and expertise are necessary to physically restore and maintain the subject property as a viable investment.
EXTRAORDINARY ASSUMPTIONS
An extraordinary assumption is defined as “an assumption directly related to a specific assignment, as of the effective date of the assignment results, which if found to be false, could alter the appraiser’s opinions or conclusions.” 1
The subject property may be recognized as a Locally Designated Historic Resource and could be eligible for a Certificate of Transfer of Development Rights (TDRs). However, if TDRs are ever secured and transferred off-site, then any contributory value of TDRs cannot be attributed to the subject property interest and our market value conclusions would be impacted.
We requested, but did not receive any notice of the 40-year recertification nor any mechanical, electrical, plumbing, structural, roof or environmental assessments. Our value estimates and conclusions assume mechanical & structural integrity sufficient for renovations & repurpose, and no environmental concerns.
The use of these extraordinary assumptions may have affected the assignment results.
HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis.” 2
None noted
1 The Appraisal Foundation, USPAP, 2016-2017 ed., 3.
Table of Contents
Table of Contents
Certification ... i
Subject Photographs ... ii
Executive Summary ... v
Table of Contents ... vii
Introduction ... 1 Area Analysis ... 4 Neighborhood Analysis ... 7 Site Analysis ... 25 Improvements Analysis ... 28 Zoning ... 30
Tax and Assessment Data ... 33
Market Analysis ... 35
Highest and Best Use ... 40
Appraisal Methodology ... 42
Land Value ... 43
Cost Approach ... 48
Insurable Value ... 52
Sales Comparison Approach ... 54
Reconciliation of Value ... 59
Assumptions and Limiting Conditions ... 60 ADDENDA
A Land Sale Data Sheets
B Improved Sale Data Sheets
C Legal Description
D Précis METRO Report - Economy.com, Inc.
E Client Contract Information
Introduction
OWNERSHIP AND PROPERTY HISTORY
Title to the property is currently vested in the name of Big Time Equipment, Inc., who acquired title to the property in January 1998, as improved for $215,000, as recorded in Official Record Book 17965, at Page 2470 of the Miami-Dade County Public Records. This prior sale transaction of the subject appears to have been arm’s length and reasonable based upon market conditions at time of sale and interviews with the current owner, Eugene Rodriquez. The current owner utilizes the property as a film set and for storage.
Based upon discussions with the owner and subscription data sources, the subject was listed “for sale” in October 2016 at a list price of $7,000,000, and went into contract at $5,500,000 to a developer who was considering a concept residential tower over build on top of the existing bank building. The property fell out of contract and as of the effective date of this appraisal, is reported to be “in-contract” with the Omni CRA at a purchase price of $5,500,000. However, we requested a copy of the purchase contract and none was provided for our review. It would also appear the $5,500,000 contract price is above our market value estimate as will be further presented and explained in this report.
INTENDED USE OF REPORT
This appraisal is to be used by the client for internal decision making and acquisition negotiations, and no other use is permitted.
INTENDED USER OF REPORT
This appraisal is to be used by the directors of the Omni CRA, and no other user may rely on our report unless as specifically indicated in the report.
Intended Users - the intended user is the person (or entity) who the appraiser intends will use the results of the appraisal. The client may provide the appraiser with information about other potential users of the appraisal, but the appraiser ultimately determines who the appropriate users are given the appraisal problem to be solved. Identifying the intended users is necessary so that the appraiser can report the opinions and conclusions developed in the appraisal in a manner that is clear and understandable to the intended users. Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. 3 PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to estimate the market value of the subject property.
Introduction
DEFINITION OF VALUE
The current economic definition of market value agreed upon by agencies that regulate federal financial institutions in the U.S. (and used herein) is as follows:
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider their own best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 4 INTEREST APPRAISED
The value estimated represents fee simple estate and defined as follows:
Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. 5
SCOPE OF WORK
This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in which research is conducted, data is gathered and analysis is applied. CBRE, Inc. completed the following steps for this assignment:
Extent to Which the Property is Identified
The property is identified through the following sources: postal address
assessor’s records legal description
4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,
Extent to Which the Property is Inspected
The extent of the inspection included the following: building interiors, exterior areas and surrounding environs.
Type and Extent of the Data Researched
CBRE reviewed the following: applicable tax data zoning requirements flood zone status demographics
income and expense data comparable sale & listing data
Type and Extent of Analysis Applied
CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section.
Data Resources Utilized in the Analysis
DATA SOURCES
Item: Source(s):
Site Data
Size Legal description, survey and Miami-Dade County Property Appraiser's website
Improved Data
Building Area "As built" survey, owners marketing materials and Miami-Dade County Property Appraiser's website
No. Bldgs. Survey and observations
Parking Spaces None
Year Built/Developed Public records Economic Data
Deferred Maintenance: Visual observations
Building Costs: Not applicable
Income Data: Market data
Expense Data: Market data
Other
Active Listing Market and subscription data
Compiled by CBRE
Area Analysis
Area Analysis
Moody’s Economy.com provides the following Miami-Miami Beach-Kendall, FL metro area economic summary as of November 2016. The full Moody’s Economy.com report is presented in the Addenda.
MIAMI-MIAMI BEACH-KENDALL, FL - ECONOMIC INDICATORS
Indicators 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Gross Metro Product (C$B) 104.1 104.4 106.3 108.4 111.1 113.8 115.9 121.3 127.0 132.2 136.5 141.0 % Change -0.5 0.2 1.8 2.0 2.5 2.4 1.9 4.6 4.8 4.1 3.2 3.3 Total Employment (Ths) 985.1 1,007.3 1,031.3 1,056.7 1,089.4 1,123.4 1,140.3 1,162.1 1,185.1 1,207.9 1,221.3 1,226.4
% Change -0.3 2.2 2.4 2.5 3.1 3.1 1.5 1.9 2.0 1.9 1.1 0.4 Unemployment Rate (%) 11.1 9.4 8.4 7.6 6.9 6.1 5.3 4.6 3.9 3.4 3.4 3.8
Personal Income Growth (%) 8.9 4.6 3.2 -0.4 6.8 6.2 4.9 6.0 7.4 7.0 5.7 5.2
Median Household Income ($ Ths) 42.0 41.7 42.0 42.4 42.9 43.8 45.3 47.0 49.2 51.3 53.0 54.5
Population (Ths) 2,508.2 2,580.1 2,611.2 2,641.9 2,668.9 2,693.1 2,728.7 2,767.0 2,806.8 2,847.1 2,887.5 2,926.6
% Change 1.8 2.9 1.2 1.2 1.0 0.9 1.3 1.4 1.4 1.4 1.4 1.4
Net Migration (000) 30.6 58.8 17.9 17.4 16.2 11.1 24.7 27.6 29.1 29.7 29.9 28.8
Single-Family Permits 941.0 962.0 1,819.0 2,266.0 2,077.0 2,800.0 3,267.6 5,298.0 6,867.8 7,585.0 7,138.9 6,917.3
Multifamily Permits 2,262.0 1,656.0 3,250.0 8,050.0 5,654.0 9,817.0 4,973.5 6,472.5 7,575.4 6,650.1 5,804.8 6,232.1
Fhfa House Price (1995Q1=100) 195.7 183.0 185.9 207.7 233.6 257.4 282.1 296.0 298.0 289.5 282.1 279.7
Source: Moody's Economy.com
RECENT PERFORMANCE
Miami-Miami Beach-Kendall is not faring as well as the rest of Florida and the nation, but economic growth in the metro division has picked up since the first quarter. Miami-Miami Beach-Kendall's unemployment rate is no longer falling, but this has more to do with a turn up in the
supply of labor are driving up pay; average hourly earnings are rocketing higher. The more than 6% annualized gain since April is the biggest jump for any six-month period since the decade began. More jobs and income are helping housing. According to the Miami Association of Realtors, the median sale price for a single-family home is $300,000, the highest level since the Great Recession.
INTERNATIONAL APPEAL
MIA's economy will grow faster than the nation's because the metro division attracts some of the most talented and productive workers from across the Western Hemisphere. MIA is the only metro area or metro division in the U.S. where more than half of the population was born in a foreign country, and more than 90% of these newcomers were born in Latin America, which includes Cuba. Over the last two generations, these migrants have transformed Miami-Miami Beach-Kendall from a sleepy retiree destination to the cultural, financial and media capital of Spanish-speaking America. This growth should carry on, but hostility to trade and immigration among the American electorate and the incoming administration in Washington DC represents a new threat to MIA's economy.
CRUISE CONTROL
After a lackluster 2016, job growth in leisure/hospitality will accelerate next year. In particular, cruise lines are helping to fuel this growth. In the last fiscal year, the city's port welcomed 5 million passengers, a world record. The current fiscal year will be even busier than the last, as two new cruise ships will begin service from PortMiami this quarter. The port is also prepping for growth beyond this quarter-the facility recently won a $33 million state grant that will be used to build a cruise terminal capable of processing more than 5,000 cruise passengers at once. Growth in the cruise industry is also good for jobs in professional services in Miami-Miami Beach-Kendall, which is the headquarters of Carnival Corp. and Royal Caribbean Cruises Ltd., the world's two largest cruise lines.
FIU
Florida International University has emerged as a key driver for Miami-Miami Beach-Kendall, but it will contribute little to growth over the next five years. With an annual operating budget of more than $1 billion, the state's second largest student body, and more than 5,000 full- and part-time employees, the school is a stable source of income for many households. However, compared with other large institutions, the economic impact of FIU is muted because 41% of its enrollees are part-time students who did not migrate to Miami-Miami Beach-Kendall; despite FIU's name, its student body mostly consists of local residents.
In 2005, the administration capped enrollment in favor of improving the quality of the academic programs. In addition, student growth will be hampered because of America's shrinking
Area Analysis
residents who are 18 to 24 years old will decline by 1.3% over the next five years. The projection is even worse for Hispanics, who account for nearly two-thirds of FIU's enrollment-the population of college-aged Hispanics will fall by 3.3% by 2021.
CONCLUSION
In the near term, Miami-Miami Beach-Kendall will strengthen thanks in part to its large port, which will create jobs in trade, manufacturing and tourism. Over the forecast horizon, Miami-Miami Beach-Kendall's international character, combined with its high-skilled, bilingual workforce, will help it best the U.S. in household income growth.
Neighborhood Analysis
LOCATION
The subject property is located at a gateway corner of the Media & Entertainment District within the Omni CRA at the southeast intersection of North Miami Avenue & NE 14th Street in the City of
Miami, Florida. This is a redeveloping neighborhood/submarket situated at the north end of the downtown Miami central business district (CBD) and boxed in by the emerging & edgy Wynwood Arts District to the north; the high-rise residential Edgewater community and Adrienne Arsht Center for the Performing Arts to the east; the massive developing WorldCenter mixed-use project to the south; and, Interstate 95 to the west.
The subject location is also located just west east of Biscayne Boulevard and in close proximity to the major transportation arteries including Interstate 195, Interstate 395, Interstate 95, as well as, the Metrorail and Metromover elevated train systems.
BOUNDARIES
The neighborhood boundaries are detailed as follows:
North: Interstate 195 (State Road 112)
South: Miami River
East: Biscayne Bay West: Interstate I-95
Neighborhood Analysis
LAND USE
The subject property is also located in the central business district of the Miami Downtown Development Authority (DDA). The general boundaries for the Central Business DDA span from Interstate 95 and the Miami River on the west, east to Biscayne Bay, and from S.W./S.E. 15th Road
north to N.E. 24th Street.
According to current studies, the Miami DDA area comprises the following statistics: o DDA Area: 1.7 square miles
o 2016 Population: 88,540
o 2016 Daytime Population: 234,976 o 2021 Projected Population: 106,429 o 27,023 Residential Units Built Since 2003 o 18.7 Million Sq. Ft. of Office Space o 7,969 Hotel Rooms
In 2010, the Miami Downtown Development Authority's (Miami DDA) board of directors voted unanimously to approve the 2025 Downtown Miami Master Plan, a 15-year roadmap for enhancing the livability and quality of life in Downtown Miami. The plan is to serve as a benchmark for encouraging investment by both the public and private sectors, with the goal of transforming Miami's urban core into the "Epicenter of the Americas."
The approved Master Plan combines new land use and planning guidelines, as well as outlines a number of proposed projects, some of which are already underway. The final plan is the culmination of existing studies, as well as a series of Miami DDA Board workshops, public forums, and stakeholder meetings designed to gain a better understanding of existing conditions and gather the best and most sustainable ideas for revitalizing Downtown Miami.
The Master Plan outlines five core goals for Downtown Miami (bounded at the South end by SE 15th Rd. and on the North by NE 22nd St.; on the West by I-95 and on the East by Biscayne Bay):
Enhance Downtown Miami's standing as the business and cultural epicenter of the Americas
Leverage the City's beautiful and iconic tropical waterfront Elevate Downtown's grand boulevards to prominence
Create great streets and community spaces throughout the district
In order to achieve the aforementioned goals and objectives, there economic incentives to entrepreneurs interested in local business opportunities, including the following:
Tenant Improvement Grant - Funded by Miami Downtown Development Authority and the Miami-Dade Empowerment Trust, this program reimburses a new tenant business up to $23.00 per square foot for fixed interior improvements. The program is only available for existing buildings over 25 years old, excludes certain types of businesses, and requires a minimum 5-year lease. The program is available only in the Central Business District and targets the Flagler Street Corridor. Tenant and landlord apply together and applications require renderings and business plan.
CRA Building Rehabilitation Program - Funded by Miami’s South East Overtown/Park West and Omni Community Redevelopment Agencies, this program assists properties and businesses with exterior improvements up to $65,000.00 with a matching grant.
New Markets Tax Credits - The New Markets Tax Credit (NMTCs) program is nationally recognized for steering low interest, private capital into distressed census tracts to capitalize hard to fund commercial and residential projects. In an effort to bring this focus on the City of Miami, the Economic Development Department created a Community Development Entity (CDE) for purposes of applying and allocating New Markets Tax Credits.
Empowerment Zone - Miami DDA and our partners offer a range of financial incentives that encourage targeted investments in targeted areas.
Enterprise Zone - As custodians for downtown, Miami DDA will help you navigate and understand the market potential of the various sub-districts as well as to identify investment/acquisition opportunities.
State & Local Incentives - The Beacon Council is responsible for facilitating the application process for financial incentives companies may qualify for in the Miami-Dade County area. As Miami-Dade County’s official economic development partnership, The Beacon Council has helped to secure millions of dollars for hundreds of companies over the years.
Several major projects recently completed, under construction and proposed within the Miami DDA district is highlighted as follows:
Perez Art Museum Miami (PAMM) located at 1075 Biscayne Boulevard anchors the 29-acre Museum Park (formerly Bicentennial Park) overlooking Biscayne Bay and includes gardens and sculpture installations. The programmable space is comprising 200,000-SF, of which 120,000-SF is interior and 80,000-SF is exterior. Construction commenced in January 2011 and was completed & opened by the fall 2013 with a total construction, endowment & transition budget of $220 million.
Neighborhood Analysis
Museum Park is also the site of the Patricia & Phillip Frost Museum of Science. This 250,000 square-foot complex will be among the world’s most innovative and sustainable science museums. According to Grimshaw – which received the AIA National Honor Award for its design of the Horno: Museo del Acero in Monterrey, Mexico – the Museum is intended to act as a demonstration of ecological and sustainability principles. The building harnesses energy from water, sun, wind and even museum visitors to power exhibits and conserve resources.
The Museum is structured around a lushly landscaped indoor and outdoor “living core” of terrestrial and aquatic spaces, featuring a 600,000-gallon aquarium facility, a full dome 3-D planetarium, interactive exhibits, innovative technology and two additional wings of exhibition space, learning center and cafes.
Brickell Citi Centre is the $1.05 billion mixed-use development underway on 9.1-acres straddling S. Miami Avenue at S.W. 7th Street and S.W. 8th Street. The project developer,
Swire Properties plans 520,000-SF of luxury retail, 800 residential condominium units, 243 hotel rooms, 93 serviced apartments and an 110,000-SF office tower in the first phase. The first phase is nearing completion with various stages opening during 2016.
The former Capital at Brickell located at 1420 S. Miami Avenue was a proposed vertical, “big box” retail center consisting of 520,000-SF of high end retail with a parking garage on 2.3 acres. However, the developer went into bankruptcy in the wake of the “great recession” and a partnership of China City Construction International Co. and American Da Tang Group acquired the site in December 2014 for $74.74 million for plus $12.0 for pilings & other considerations. The new ownership group is seeking EB-5 Regional Center status and proposing 3.2 million square feet in a mix of condos, retail, and hotel & office towers.
Miami WorldCenter is underway and spans over 27-acres between NE 7th Street, north to NE 11th Street; and, NE 2nd Avenue, west to North Miami Avenue. The Miami World Center includes a dynamic mix of retail, residential, office, and institutional uses. The total project was master planned in 2008 for a total of 11 to 12 million square feet, but more recently the master developer submitted plans to the City of Miami and received zoning & master development agreement approvals for the first phase of the mixed-use project in October 2014 with site demolition completed.
The firm Elkus-Manfredi Architects designed the first phase, which includes the following:
Tower 1 – Luma at Miami Worldcenter, a 429-unit luxury rental apartment building that will be developed by ZOM at the southwest corner of NE 2nd Avenue and NE 7th Street,
and set a top of a parking garage podium and retail wrap along the NE 7th Street
frontage. There is a second residential tower proposed for the west end of the parking podium fronting NE 1st Avenue that is approved for another 386 apartments for a second
phase with shared parking garage and shared amenity deck.
Neighborhood Analysis
Tower 2 – also known as Paramount celebrated the first ground breaking in March 2016 for a 485-unit residential condominium tower in 58-stories. Unit floor plans range from 1,180 to 2,350 square feet, with list prices averaging $1.2 million or $676-PSF. The developer, Dan Kodsi reports approximately 45 percent pre-sales as of the ground breaking.
Retail – “High Street” destination retail in collaboration with The Forbes Company and Taubman, Miami World Center will develop 450,000-SF to 1,000,000SF of pedestrian-oriented shopping streetscape in anchoring the 27-acre development. The promenade will run north and south from northeast 10th street to northeast 7th street and between northeast 1st and 2nd avenues, creating a retail focal point surrounded by residential towers, a hotel and exposition center, and numerous dining and entertainment options. Forbes and Taubman will manage the leasing and marketing.
Future phases include a mixed-use tower in partnership with Newgard Development with 897 apartments, 344 hotel rooms, 38,850-square feet of office space, 21,200 square feet of retail; and the Marriott Marquis Hotel and convention space in partnership with MDM Group described as follows:
Convention Center & Hotel - Marriott Marquis World Convention Center Hotel will feature approximately 1,800 rooms and 600,000 square feet of meeting, exhibition, and convention space. This hotel tower will have resort amenities, including pool deck with Biscayne Bay views and an 80,000-square-foot outdoor event deck.
EDGEWATER
Often called an emerging neighborhood, Edgewater, and particularly East Edgewater, is enjoying resurgence in concert with the downtown Miami central business district. The Edgewater
Wynwood, Overtown/Park West and the Design District. However, the Biscayne Bay frontage in Edgewater is driving high density, luxury residential condominium and more affordable loft and rental apartment towers. We also note the recent renovation of the Margaret Pace Park as a neighborhood & community amenity.
Edgewater is also known for a mix of historic houses representing a traditional south Florida Mediterranean-style design from Miami’s golden age of architecture remain. However, high density, waterfront condominium towers like Paramount Bay, Platinum, Onyx, Blue, 1800 Biscayne Plaza, Bay House, 1800 Club, and Quantum on the Bay, Bay Parc Plaza, The Crimson, Biscayne Beach, and Opera Tower are replacing the historic charm with young professional and international residents and investors.
OMNI CRA/MEDIA AND ENTERTAINMENT DISTRICT (MED)
The subject property is located within the Omni CRA (Community Redevelopment Agency), which is generally delineated as being bounded by Interstate 395 to the south, NW 1st Place to the west,
NE 20th Street to the north and Biscayne Bay to the east. The Omni CRA includes portions of the Edgewater neighborhood and the Media and Entertainment District (MED), which is anchored by the Adrienne Arsht Center for the Performing Arts and the former 1.07 million square foot Omni mall.
Recent accomplishments and projects underway within the Omni CRA are summarized as follows: Creation of Margaret Pace Park
Rehab and Renovation of Historic Miami Women’s Club
Funds Performing Arts Center Super Block Streetscape and debt service Promote new construction of workplace housing in Downtown
$5 million North Bayshore Drive road improvement project
Creation of dozens of new jobs along Biscayne corridor with support of new businesses $1 million 40-year recertification of Trinity Cathedral
Facilitated funding of $50 million for new Port of Miami Tunnel which will create hundreds of jobs within the CRA boundaries. (ongoing)
Creation of New Museum Park infrastructure Annual funding of Arsht Performing Arts Center
Reconstruction and improvements on the 14th Street Road Project Complete rehabilitation of the Firehouse #2 - new Omni CRA offices
Grants Programs for infrastructure improvements to City Hall Restaurant and Braman KIA Motors
Proposed purchase of the Miami Entertainment Complex (MEC), which is fully operational ND now called the VIACOM INTERNATIONAL STUDIOS, after its Operating Film and Television production firm.
According to the Arsht Center website & fact sheet, Adrienne Arsht Center for the Performing
Arts of Miami-Dade County is Miami-Dade County’s largest-ever public/private-sector
partnership, comprised of an $150 million private capital campaign conducted by the Performing Arts Center Foundation and public funding drawn primarily from the county’s Convention
Neighborhood Analysis
Development Tax revenues, as well as the City of Miami Omni Redevelopment District Community Redevelopment Agency. The total project expense is $472 million.
The Arsht Center was designed by world-renowned architect Cesar Pelli of Pelli Clarke Pelli Architects. The design team includes theater planning and design consultant Joshua Dachs of Fisher Dachs Associates Inc. and acoustician consultancy ARTEC Inc., both of whom have been working on the project since its inception.
Situated at the cultural crossroads of the Americas and in the heart of one of the world’s fastest-growing urban centers, the Adrienne Arsht Center for the Performing Arts of Miami-Dade County is one of the largest performing arts centers anywhere. Strategically located in downtown Miami, the Arsht Center occupies 570,000 square feet along historic Biscayne Boulevard between N.E. 13th and 14th Streets.
Principal Components:
Ziff Ballet Opera House: 2,400 seats.
John S. and James L. Knight Concert Hall: 2,200 seats.
Carnival Studio Theater: A flexible black-box space designed for up to 300 seats.
Parker and Vann Thomson Plaza for the Arts: An outdoor social and performance space linking the two main houses across Biscayne Boulevard.
Carnival Tower: An architectural icon from one of Miami’s oldest Art Deco buildings. Peacock Education Center: A 3,500-square-foot workshop and classroom space.
Magnificent public art installations by five outstanding artists commissioned by Miami-Dade Art in Public Places.
Programming and Education:
Adrienne Arsht Center Presents: A diverse group of more than 300 performances are selected and presented by the Arsht each year, organized into series. These series include Broadway in Miami, Jazz Roots, the Masterworks Season, Miami Made Festival, and the Summer Season, among others.
The Arsht’s internationally acclaimed resident companies: Florida Grand Opera, Miami City Ballet, New World Symphony and America’s Orchestral Academy present many of their Miami performances at the Arsht Center.
The Arsht also offers many free community-based performances and programs designed to make the performing arts as accessible to as wide an audience as possible. These include a monthly outdoor family event, a free gospel concert series, an annual volunteer service day and more.
Since its inception, the Arsht has supported South Florida artists and the creation of new work through commissions, access to artistic advice from Arsht staff and other arts professionals, and public presentations. The Arsht also collaborates with local arts presenters to support culturally and artistically diverse entertainment.
Education programs, many of which are planned with Dade Public Schools, Miami-Dade County Department of Cultural Affairs, the resident companies and community-based organizations, offer unique opportunities for young people and adults to learn about and enjoy the performing arts both in the Arsht and out in their communities. Examples include AileyCamp, which debuted in 2009, and the Learning Through the Arts program, which
provides live music, theater and dance components via the public school system’s Passport to Culture initiative.
The Omni International Mall is owned by the Genting Group Resorts World Miami who acquired both the Omni Mall shortly after buying the Miami Herald site for $236 million in 2011 and later demolished the newspaper’s old building. The Malaysian based gaming & resort corporation initially announced plans for a casino resort, but the Florida Legislature has resisted all efforts to expand gambling outside of pari-mutuels and tribal properties.
More recently in March 2017, Resorts World Miami filed plans for a mixed-use project to lease nearly an acre including air rights at the Adrienne Arsht Center Metromover Station and the Omni Bus Terminal for 90 years and is offering to spend $22 million in upgrades to the public transit station such as new stairs, a pedestrian bridge, elevators, escalators and flooring, the developer would build a mixed-use project.
Genting’s plans call for a 36-story tower, which would top the terminal station, would include 20 floors of residential units averaging 918 square feet and a 300-room hotel with rooms averaging 350 square feet, the Next Miami reported. The tower would front a “grand public plaza” and the Boulevard Shops, which are being renovated, would also be part of the project.
The contract from Resorts World Miami came in response to a solicitation for proposals from the county in 2015.
In addition, the Genting Group filed an application with the FAA to allow two towers of 649 feet each at the former Miami Herald site, but no plans are pending with the city besides a 50-slip mega-yacht marina.
Residential Projects – Existing Developments
There were a total of twenty (20) residential developments that were constructed between 2004 and 2013, indicating a total of 4,280 residential condominium units. The following chart
Neighborhood Analysis
illustrates the developments that have been completed at the Omni/Edgewater or Media, Arts and Entertainment District:
Name of Development Year Built Numbe of Units
1800 Biscayne Plaza 2005 195 1800 Club 2008 468 23 Biscayne Bay 2013 96 Bay Lofts 2004 54 Blue 2005 330 Cite 2004 436 City 24 2007 119 Cynergi 2007 100 Gallery Art 2008 176 Moonbay 2007 61 New Wave 2006 78 Onyx 2007 118 Operat Tower 2007 635 Paramount Bay 2011 350 Parc Lofts 2005 72 Platinum 2006 119 Quantum 2008 698 Star Lofts 2007 47 Uptown Lofts 2005 66 Yorker 2005 62 Total 4,280
Compiled by: CBRE, Inc.
RESIDENTIAL DEVELOPMENTS
Residential Projects – Under Construction/Planned/Proposed
The following are the proposed and/or approved developments at the Omni/Edgewater or Media, Arts and Entertainment District:
Aria on the Bay - the project will be comprised of a 51-story tower with a total of 648 residential condominium units and 3 commercial spaces. The unit mix will consist of the one-, two-, three- and five-bedroom variety with units ranging from 757 SF to 4,803 SF. In addition, the property will have an office space with 2,737 SF, a commercial unit with 1,199 SF and a restaurant space containing 9,862 SF with a total commercial space of 13,798 SF. It is being developed by the Melo Group with a completion date in 2017.
Bay House - the project will be comprised of a 38-story residential tower with a total of 165 residential condominium units. The unit mix will consist of the two-, three- and five-bedroom variety with units ranging in size from 1,277 SF to 3,549 SF. It is being developed by the Melo Group.
Biscayne Beach – the project will be comprised of an 51-story high-rise development with 399 residential condominium units. The unit mix will consist of the one-, two-, three- and four-bedroom unit variety with the units ranging in size from 885 SF to 2,103 SF. It is being developed by Eastview Development and GTIS Partners with a completion date in 2016.
The Crimson Residences at Biscayne Bay – the project will be comprised of an 18-story high-rise development with 90 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety with units ranging in size from 827 SF to 1,453 SF. It is designed by IDEA Architects and will be developed by mckafka Development Group.
Icon Bay – the project will be comprised of 7- and 42-story high-rise buildings with a total of 299 residential condominium units. The unit mix will consist of the one-, two-, three, and four-bedroom unit variety ranging in size from 1,138 SF to 2,416 SF. It is being developed by the Related Group.
Ion East Condo – the project was intended to be a 36-story high-rise mixed-use development with 328 residential condominium units. The unit mix was proposed for one-, two- and three-bedroom unit variety with units ranging in size from 720 SF to 1,803 SF. In addition, the project includes office and retail space. The developer was Sakor Development, but this project has since been cancelled.
One Paraiso Condo - the project will be comprised of a 51-story tower with a total of 272 residential condominium units and ground floor commercial space. The unit mix will consist of the one-, two-, three-, four-, five- and six-bedroom variety with units ranging in size from 1,124 SF to 4,889 SF. In addition, the property will have a ground floor commercial space containing 3,000 SF and storage space containing 2,000 SF. It will be developed by the Related Group with a completion date in 2017.
Paraiso Bay Towers I & II (previously known as the Element) – the project will be comprised of two, 55-story high-rise buildings with a total of 690 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 1,000 SF to 2,500 SF. It will be developed by the Related Group with a completion date in 2017.
Paraiso Bayviews – the project will be comprised of a 44-story high-rise building with 388 residential and 8 commercial condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 889 SF to 1,807 SF. It will be developed by the Related Group with a completion date in 2017.
Satori Hotel Residences – the project will be comprised of a 35-story high-rise building with 207 residential condominium units. The unit mix will consist of the one-, two- and three-bedroom unit variety ranging in size from 628 SF to 1,410 SF. It will be developed by the Exclusive Trust Realty.
26 Edgewater Condo – the project will be comprised of a 10-story high-rise building with 86 residential condominium units and 10,436 SF of ground floor commercial space. The unit mix will consist of the one- and two-bedroom unit variety ranging in size from 560 SF
Neighborhood Analysis
And, Media & Entertainment District Projects under construction as of February 2017, courtesy of Miami Downtown Authority and Integra Realty Resources (IRR), presented as follows:
In addition, the Melo Group and local celebrities Gloria & Emilio Estafan are active within the MED submarket with the following projects under construction and planned:
Melody, located at 245 NE 14 Street is was recently completed as a residential rental apartment tower with ground floor retail. The project features 36-stories with 497-units, 8,500-SF of retail and parking garage with 746-spaces.
14 Plaza/Art Plaza is an under construction residential tower with ground floor retail located at 47-67 NE 14th Street. The 1.02-acre site was assembled in 2014 for a total reported
purchase price of $16.0 million or $306-PSF of land. The tower will comprise 650-rental units after a request to upzone the site was denied.
Gloria and Emilio Estefan are preparing to build a mixed-use project two blocks west of the Arsht Center, where public records reflect the acquisition of 51,140-SF at 1400 NE 1st Avenue in two separate transactions in 2000 and 2011, for a total purchase price of about $2 million. Preliminary renderings by Lesley Abravane show a parking garage podium with a mixed-use tower. Emilio Estefan reported to the Herald that the project will include a hotel, banquet halls, rooftop pool and a Bongos Restaurant. Construction will begin after the building is approved and could take several years to achieve approvals and develop.
BRICKELL FINANCIAL DISTRICT
The Brickell Avenue financial district commences on the south side of the Miami River to the Rickenbacker Causeway on the south, while Biscayne Boulevard and the downtown Miami central business (CBD) is the submarket to the north of the Miami River. There is a heavy concentration of Class “A,” high-rise office & residential towers, and mixed-use retail, office, hotel & residential towers throughout the district, fronting Brickell Avenue and Biscayne Bay to the north of SE 15th
Street.
Properties south of SE 15th Road fronting on the east side of Brickell Avenue include primarily high-rise condominium apartment towers, with low-rise condominium apartment buildings, townhouses and spotted single family residences on the west side of Brickell Avenue. Properties on the east side of Brickell Avenue and north of SE 15th Road include both high-rise office and apartment/condominium towers.
The area west of Brickell Avenue includes a mix of retail stores, offices, single family homes, duplexes and low to mid rise multifamily apartments, motels, automobile service facilities, storage
buildings, marine related sales and service businesses. A large number of the properties in Brickell West neighborhood are older in age ranging back to the 1920’s. The older ages of the building improvements and intermixed uses have created a somewhat transitional area which is currently experiencing a wave of redevelopment, which includes demolition and redevelopment, as well as renovation of existing structures into small-scale commercial/residential uses. The mixed-use Mary Brickell Village development is located 1 block west of Brickell Avenue and includes a wide array of restaurants, shops and new condominium apartment buildings all in a newly constructed lifestyle center layout. It has been very well received since its opening in 2005. Brickell Key (or Claughton Island) is located at the end of S.W. /S.E. 8th Street, just east of Brickell Avenue and reflects a mixed development of Class "A" office space and luxury condominium and rental apartment buildings, as well as the Mandarin Hotel five-star development.
FLAGLER STREET
Flagler Street is a 12.4-mile main east–west thoroughfare in Miami. Flagler Street is the latitudinal baseline that divides all the streets on the Miami-Dade County grid plan as north or south streets. (The east-west division is along Miami Avenue) Flagler Street is named after industrialist Henry Flagler and serves as a major commercial east–west highway through central Miami-Dade County, with a mixture of residential neighborhoods (featuring apartment complexes) and strip malls, the commercial presence increasing as SR 968 approaches downtown Miami.
It is also a historic street and the core of the center of the downtown Miami central business district. As such, the City of Miami and Downtown Development Authority (DDA) are commencing a $13 million restoration and street scape project featuring wider sidewalks, oak shade trees, new lighting and storm water drains to accommodate cafe tables and pedestrians. The Miami City
Commission recently approved the last of the funding for the project, $920,000 for an upgraded drainage system and removal of old abandoned pipes that have been beneath Flagler Street pavement for decades.
The street project timing is simultaneous with New York entrepreneur and
developer Moishe Mana who has amassed $200 million +/- worth of properties on or abutting
Neighborhood Analysis
Flagler with the vision of turning the street into a restaurant, cultural and retail destination, while preserving its historic low scale.
ACCESS
Regional Access to the overall subject area is provided via Interstate 95 (I-95), the Dolphin Expressway (State Road No. 836) leading into State Road No. 395, the Julia Tuttle Causeway (State Road No. 195) and Biscayne Boulevard. Interstate 95 (I-95) serves to connect the subject area with areas of northern/southern Miami-Dade County, as well as to provide access to the primary easterly/westerly expressway systems. The Dolphin Expressway (State Road No. 836) is an easterly/westerly thoroughfare providing access from areas of western Miami-Dade County, as well as the Palmetto Expressway (State Road No. 826) to the overall subject area. State Road Numbers 195 and 395 (Julia Tuttle Causeway) facilitate travel between areas of western Miami-Dade County and Miami Beach to the west and east, respectively, while Biscayne Boulevard reflects a well-traveled artery providing northerly/southerly access from S.E. 3rd Avenue to the south, to the Broward County line to the north.
Local access in the subject area is provided by Biscayne Boulevard, Brickell Avenue, and South Miami Avenue in a north/south direction, with Flagler Street, and S.W. 8th Street providing primary access in an easterly/westerly direction. Additional access to and within the Central Business District is provided by a mass transit system known as Metrorail and Metromover. Both have a station within walking distance from the subject property. The Metrorail is an elevated track train system, which extends north and west to the City of Hialeah and south to the Dadeland area of Unincorporated Miami-Dade County. The Government Center station serves the core of the Central Business District, with the downtown Metromover emanating from the Government Center Station. The Metromover is a remote controlled elevated track vehicle system, which provides local transportation in the Central Business District. The Metromover track, which has nine stations in the Central Business District, extends southerly to SE/SW 4th Street, easterly to Biscayne Boulevard, northerly to NE/NW 5th Street and westerly to NW 2nd Avenue. An extension of the Downtown Metromover extends southerly to the Brickell Avenue area and northerly to the Omni area.
The subject property is within closest proximity to the Omni Loop with a Metromover station located at the Adrienne Arsht Performing Arts Center located at 1300 Biscayne Boulevard or 10 blocks south of NE 23rd Street.
ALL ABOARD FLORIDA
All Aboard Florida’s Miami station will serve as its primary, multimodal hub and a true “live-work-play-commute” urban environment.
From downtown Miami, the new express passenger rail service will transport travelers to Fort Lauderdale, West Palm Beach and Central Florida.
The station and surrounding transit-oriented development will encompass nearly three million square feet and span two sites:
Neighborhood Analysis
A nine-acre transportation hub in downtown Miami just east of Miami-Dade County Hall – to include mixed-use development with residential, office, commercial, and a retail concourse
A two-acre multi-use complex in Historic Overtown at the corner of NW 2nd Avenue and NW 6th Street – to include mixed-use development with retail, commercial and parking to support and enhance the transportation hub
Terminal to feature a mix of premiere and unique dining options, shopping, and entertainment:
Approximately 2 million square feet dedicated to office/commercial development Approximately 1 million square feet dedicated to residential space
Adequate parking space allocated to support the development
Station to serve as a transportation gateway, iconic destination, and a landmark terminal and symbol of 21st-century Miami
The Miami River is a restricted deep water access waterway that navigates down river to the Biscayne Bay, the Port of Miami and the Atlantic Ocean. Small pleasure boat and cargo freighters navigate the Miami River via draw bridges at Brickell Avenue, Miami Avenue, the FEC railway tracks, S.W. 2nd Avenue and S.W. 1st Street. The Interstate 95 off-ramps are fixed bridges.
Overall, regional and local access to and throughout the neighborhood is considered to be very good.
DEMOGRAPHICS
Selected neighborhood demographics in 1-, 3-, and 5-mile radii from the subject are shown in the following table:
SELECTED NEIGHBORHOOD DEMOGRAPHICS 1367 N. Miami Avenue Miami, FL Population 2021 Total Population 39,827 279,593 549,634 2016 Total Population 35,529 258,754 515,355 2010 Total Population 30,134 230,134 475,162 2000 Total Population 20,988 201,044 439,672 Annual Growth 2016 - 2021 2.31% 1.56% 1.30% Annual Growth 2010 - 2016 2.78% 1.97% 1.36% Annual Growth 2000 - 2010 3.68% 1.36% 0.78% Households 2021 Total Households 19,278 118,657 229,544 2016 Total Households 16,982 108,912 214,669 2010 Total Households 13,745 94,210 196,031 2000 Total Households 8,111 74,875 172,188 Annual Growth 2016 - 2021 2.57% 1.73% 1.35% Annual Growth 2010 - 2016 3.59% 2.45% 1.53% Annual Growth 2000 - 2010 5.42% 2.32% 1.31% Income
2016 Median Household Income $36,428 $33,262 $34,570
2016 Average Household Income $59,725 $57,828 $58,774
2016 Per Capita Income $30,367 $25,071 $25,010
2016 Pop 25+ College Graduates 8,532 53,686 106,433
Age 25+ Percent College Graduates - 2016 32.7% 28.4% 28.3%
Source: ESRI
1 Mile 3 Miles 5 Miles
GROWTH PATTERNS
The subject neighborhood has recently undergone a substantial amount of revitalization and development/redevelopment, as reflected by the various properties that have recently been completed, currently under construction and/or are in the planning stages of development within the CBD and Brickell District. The majority of the projects that are under construction in the subject area typically reflect Class A, upper-end projects.
CONCLUSION
The subject submarket area was previously a 9-to-5 downtown office district that was recently transformed into a modern & dynamic, 24-hour city center with numerous deliveries of new residential condominium and office towers in the past several years.
Overall, it is our opinion that the subject neighborhood will continue to be transformed and grow into a world-class city-center as public and private developments under construction and planned are completed and the neighborhood will continue to remain a desirable area with potential for appreciation over the long term.
Site Analysis
Site Analysis
The following chart summarizes the salient characteristics of the subject site.
SITE SUMMARY Physical Description
Gross Site Area 0.24 Acres 10,637 Sq. Ft.
Net Site Area 0.24 Acres 10,637 Sq. Ft.
Primary Road Frontage N. Miami Ave 106 Feet
Secondary Road Frontage NE 14th Street 100 Feet
Average Depth 100 Feet
Excess Land Area None n/a
Surplus Land Area None n/a
Shape Topography Zoning District
Flood Map Panel No. & Date 120650 0312 L 11-Sep-09
Flood Zone X
Adjacent Land Uses
Comparative Analysis Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Adequacy Water Yes Sewer Yes
Natural Gas Yes
Electricity Yes
Telephone Yes
Mass Transit Yes
Other Yes No Unknown
Detrimental Easements X
Encroachments X
Deed Restrictions X
Reciprocal Parking Rights X
Source: Various sources compiled by CBRE
Assumed adequate Urban
Provider
City of Miami
Assumed adequate
Metromover station & Metrobus City of Miami
Contract service FPL
AT&T land lines
Rating
Good Good Good Rectangular
Improved to road grade
T6-24 O, Urban Core Transect Zone
Obsolete commercial and under construction multi-family residential
Site Analysis
INFRASTRUCTURE
The OMNI CRA funded $6.0 million and completed the reconstruction of NE 14th Street streetscape enhancements between NE 2nd Avenue and NW 1st Avenue including wider sidewalks, decorative pavement, new curb & gutter and a 12” water main upgrade.
ENVIRONMENTAL ISSUES
CBRE, Inc. is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.
We strongly recommend the client engage a qualified environmental engineer to perform a Phase I environmental assessment of the subject property.
ADJACENT PROPERTIES
The adjacent land uses are summarized as follows:
North: 14 Plaza, an under construction residential/retail tower South: Retail and commercial store fronts
East: Strip retail/bar & nightclub property West: N. Miami Avenue frontage
The adjacent properties are a mix of vintage retail, obsolete commercial and new mixed use development.
CONCLUSION
The site is a strategic corner location within the Omni CRA and Media & Entertainment District. This subject site and surrounding parcels are all zoned for high density, mixed-use development that has been attracting the interest of multi-family residential developers.
FLOOD PLAIN MAP
Improvements Analysis
Improvements Analysis
The following chart shows a summary of the improvements.
IMPROVEMENTS SUMMARY
Office
1924
Comparative Rating
Improvement Summary Description Good Avg. Fair Poor
Foundation Reinforced concrete X
Frame Concrete block, masonry, steel & wood X
Exterior Walls Painted stucco X
Interior Walls Plaster over wood strips X
Roof Tar & gravel 0ver flat deck
Ceiling Exposed wood beam, plaster and drywall X
HVAC System Non-functioning X
Exterior Lighting Non-functioning X
Interior Lighting Non-functioning X
Flooring Concrete X
Plumbing Non-functioning X
Elevators/Stairwells Side stairwell entry to 2nd floor X
Life Safety and Fire Protection
None X
Amenities None X
Furnishings None N/A
Parking None X
Landscaping Urban streetscape X
Source: Various sources compiled by CBRE
Unknown condition Site Coverage 0.72 : 1 1.39 Parking Spaces: Zero Parking Ratio (per 1,000 SF NRA )
None Floor Area Ratio (FAR)
Land-to-Building Ratio 85.6% 2 14,820 SF 14,820 SF 1 & 2 Number of Buildings Number of Stories Gross Building Area Year Built
Area Breakdown
Building 2 - One Story
(Mixed Use)
3,086 SF Property Type
Net Rentable Area
Building 1 - 2nd Floor
Building 1 - 1st Floor 9,338 SF
2,396 SF
OVERALL CONDITION
The existing improvements are essentially in shell condition with poor interior condition and good facade condition given the age & character of the property history.
HISTORIC PRESERVATION
The subject was originally built in 1924 for Citizens Bank and currently utilized by the owner as a film set and equipment storage. According to the City of Miami Historic & Environmental Preservation (HEP) Board Authority and the Miami 21 City Code, Chapter 23, the Transferable Development Rights (TDRs) is a vehicle that enables a historic property owner to transfer its
unused development capacity to another property owner who then is allowed to add “bonus” height or intensity to its property. Owners of a locally or nationally designated historic property that is located either in a T-4 O or higher transect zone, or is a multi-family residence located in a T4-R transect zone, may permanently sell any additional potential capacity (unused development rights) to a property located in a T-6 transect zone. The purpose of the TDR for designated historic properties is to encourage the preservation of historic buildings instead of demolition or renovations that would diminish the integrity of the property’s historic value. By creating a monetary value for the unused capacity, that would otherwise be lost when the owner maintains the historic building, the City of Miami hopes to save pieces of its history.
The subject property could be eligible for a Certificate of Transfer of Development Rights (TDRs), subject to an approved maintenance plan and authorization for the transfer of unused development rights from the City of Miami, and subject to all conditions, recommendations and repairs noted by city staff and a recordation of a restrictive covenants, which may include a stabilization and maintenance plan.
ECONOMIC AGE AND LIFE
CBRE, Inc.’s estimate of the subject improvements effective age and remaining economic life is depicted in the following chart:
ECONOMIC AGE AND LIFE
Actual Age 93 Years
Effective Age 93 Years
MVS Expected Life 100 Years
Remaining Economic Life 7 Years
Accrued Physical Incurable Depreciation 93.0%
Compiled by CBRE
The remaining economic life is based upon our on-site observations and a comparative analysis of typical life expectancies within the submarket, as well as published by Marshall and Swift, LLC, in the Marshall Valuation Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic life, a capital improvement program could extend the life expectancy.
CONCLUSION
Overall, there are no known factors that adversely impact the marketability of the improvements as a potential historic restoration project for an owner/user.
Zoning
Zoning
The following chart summarizes the subject’s zoning requirements. MIAMI 21 ZONING
Zone T6-24 O, Urban Core Transect Zone
Subcategory O, Open
Description The urban core zone consists of the highest density and greatest variety of uses, including civic buildings of regional importance. A network of small blocks has thoroughfares with wide sidewalks, with steady tree planting and buildings set close to the frontage with frequent doors & windows.
Uses Permitted;
Allowed by Right Single family residence, community residence, two-family residence, multi-family housing, dormitory, home office, live-work, bed & breakfast, inn, hotel, office, entertainment establishment, food service establishment, general commercial, place of assembly, recreational establishment, recreational facility, religious facility, learning center, pre-school, and research facility.
Allowed by Warrant Auto-related commercial establishment, marine related commercial establishment, open air retail, community facility, community support facility, infrastructure & utilities, marina, public parking, transit facilities, childcare, college or university, elementary school, middle or high school, and special training or vocational.
Allowed by Exception Alcohol beverage service establishment and regional activity complex.
Category Zoning Requirement
Lot Area 5,000-SF minimum / 100,000-SF maximum Lot Width 50 feet minimum
Lot Coverage 80% maximum (see code for specific Transect Zone regulation)
Floor Lot Ratio a. 7 with 30% additional Public Benefit or b. 16 with 40% additional Public Benefit Frontage at Front Setback 70% minimum
Open Space Requirement 10% lot area minimum Density 150 dwelling units per acre
Article 4. Diagram 9 Residential Density Increase - Comprehensive Neighborhood Plan; Omni - 500 units/acre
Southeast Overtown - 300 units/acre Park West - 500 units/acre CBD - 1,000 units/acre River Quadrant - 500 units/acre Little Havana - 200 units/acre Brickell - 500 units/acre
Commercial Maximum area of 55,000-SF per establishment, except for public storage facilities. Setbacks;
Principal Front Setback 10 feet minimum Secondary Front Setback 10 feet minimum Side Setback (Residential) -0- feet minimum Rear Setback -0- feet minimum Private Frontages;
Common Lawn Prohibited Porch & Fence Prohibited Terrace or LC Prohibited
Forecourt Permitted
Stoop Permitted
Shop front Permitted (T6-24 L & T6-24 O)
Gallery Permitted
Arcade Permitted
Building Height (Stories);
Principal Building 2 story minimum / 24 story maximum, plus Public Benefit Benefit Height (abutting T6, T5 & T4 only) 32 stories (refer to Article 5 for specific Transect Zone regulation) Off-Street Parking;
Residential 1.5 spaces / dwelling unit + 1 space for every 10 units for visitor parking Lodging 1 space / every 2 lodging units + 1 space for every 15 units for visitor parking Office 1 space / 800-SF of office use
Commercial 3 spaces / every 1,000-SF of commercial uses Civic 1 space / every 5 seats
Civil Support 1 space / every 1,000-SF of civil support use Educational 2 space / every 1,000-SF
Childcare 1 space for the owner/operator and 1 space for each employeee plus 1 drop-off space for every 10 clients cared for.
Parking Reductions See Article 4, Table 5 in Miami 21 based on Transit Corridor, bike rack, Metromover Station, off-site provision and/or shared parking provisions.
Parking ratio may be reduced within ½ mile radius of TOD or within 1/4 mile radius of a Transit Corridor by 30% by process of Waiver, except when T6 is within 500-feet of T3.