HomeMy WebLinkAboutPrimis, Inc. - 2000 07 25
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Orlando Office
PRIMIS, Inc.
600 Courtland St.
Suite 260
Orlando, FL 32804
Ph: 407. 644 . 9922
Fx: 407.644.5009
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PR'M'S
The direct source for property information
November 6, 2000
City of Winter Springs, Florida
1126 East State Road 434
Winter Springs, Florida 32708
Attention: Charles Carrington, AICP, Community Development Director
Gentlemen:
At your request, we have appraised a 27.3::l: acre parcel of undeveloped land
which is located off the north side of State Road 434, just west of the Central
Winds Park entrance road. The subject property is further described and
identified by both legal and narrative descriptions within the text of the
following appraisal report.
The purpose of this appraisal was to estimate the "as is" market value of the fee
simple interest in the subject property as of the effective date of this appraisal,
August 2, 2000.
Market value, fee simple interest, and other appraisal terms are defined within
the text of the following appraisal report.
As a result of our investigation into those matters which affect market value,
and by virtue of our experience and training, we have formed the opinion that
the market value of the fee simple interest in the subject property, in the "as is"
condition, effective August 2, 2000, was:
Three Million Four Hundred Eighty-Five Thousand Dollars
($3,485,000).
Assuming an aggressive and coordinated marketing effort, we have estimated an
exposure period of nine to 12 months for the subject.
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November 6,2000
The appraisal analyses, opinions and conclusions were developed and this appraisal report has
been prepared in conformance with (and use of this report is subject to) all regulations issued
by the appropriate regulatory entities, regarding the enactment of Title XI of the Financial
Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA), the Uniform Standards
of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the
Appraisal Foundation and the Code of Professional Ethics and Standards of Professional
Practice of the Appraisal Institute.
This letter of transmittal precedes the complete, self-contained appraisal report, further
describing the property and containing the reasoning and most pertinent data leading to the
final value estimate. Your attention is directed to the "General Assumptions", "General
Limiting Conditions", and "Certificate of Appraisal" which are considered usual for this type
of assignment and have been included within the text of this report.
Respectfully submitted,
PRIMIS, Inc.
Larry A. Church, MAl, SRA
State-Certified General Appraiser 0000599
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Robert J. Perkins, Senior Appraiser
State-Certified General Appraiser 0002457
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11141
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PRIMIS, Inc.
The direct source for property information
File No. 11141
TABLE OF CONTENTS
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INTRODUCTION
CERTIFICATE OF APPRAISAL .... ........................................... ........................... ........ ....... ....... 1
SUMMAR Y OF APPRAISAL............................................................................. .................. ...... 3
GENERAL ASSUMPTIONS............................................................................ ........................... 4
GENERAL LIMITING CONDITIONS........................................................... ............................. 6
SPECIAL LIMITING CONDITIONS .......................................................................................... 7
OVERVIEW OF APPRAISAL ASSIGNMENT............... .................. ................ .................... ..... 8
DEFINITIO N OF MARKET VALUE.......................................................................................... 10
D EFINITI 0 N OF FEE SIMPLE INTEREST............................................................................... 10
DEFINITIO N OF HIGHEST AND BEST USE................................. .............. ............................ 10
DATA PRESENTATION
SUBJECT PHOTOGRAPHS............................................................ ....................................... ..... 11
SUBJECT PROPERTY IDENTIFICATION............ .................................. .... ................ ....... ....... 13
REGIONAL MAP.................................................................................................................... ..... 15
REGIONAL DATA .............................. ........................................................................................ 16
AP ARTMENT MARKET OVER VIEW...................................................................................... 33
NEIG HBO RHOOD DATA........................................................................................................... 40
AERIAL MAP........ ....... ........................ ... ... .., .......... .... ... ................. ...... ... .... ..... ...................... .....48
TAX MAP LOCATION............................................... ................................. ................... .............49
SITE DATA............... .................................. .................... ............... ....... .............. ......... ................ 50
HIGHEST AND BEST USE
HIGHEST AND BEST USE ESTIMATE ....................................................................................55
MARKET ABILITY /EXPOSURE ANALYSIS ........................................................................... 58
V ALUA TION ANALYSIS
APPRAISAL PROCESS.. ...... ............................... ........................................ ................. ............... 60
SALES COMPARISON APPROACH............... ........ ....... .............. ............ ............... .......... ........ 61
LAND SALES MAP ................................................ ...... ........................... ... ...... ........... .......... ...... 63
LAND SALES 1 - 6... ................ .................................................................................. ................. 64
LAND SALES ANALYSIS CHART............................................................ ............... ................ 76
FINAL VALUE ESTIMATE.................................................... ............. ....................... ................ 81
ADDENDUM
APPRAISER'S QUALIFICATIONS
ENGAGEMENT LETTER
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PRIM IS , Inc.
The direct source for property information
File No. 11141
CERTIFICATE OF APPRAISAL
The undersigned appraisers hereby certify that they have no present or contemplated future
interest in the real estate that is the subject of this appraisal report; that they have no personal
interest or bias in with respect to the subject matter of this appraisal report or the parties
involved; that (Q the best of their knowledge and belief the statements of fact contained in this
appraisal report (upon which the analyses, opinions and conclusions expressed herein are
based) are true and correct; that this appraisal report sets forth all of the limiting or qualifying
conditions (imposed by the terms of the assignment or by the undersigned) affecting the
analyses, opinions and conclusions contained in this report; that no one other than the
undersigned prepared the personal unbiased, professional analyses, conclusions and opinions
concerning real estate that are set forth in this appraisal report unless and except as
acknowledged in this report; that the compensation for this appraisal assignment is not
contingent upon the reporting of a predetermined value or direction in value that favors the
cause of the client, the amount of the value estimate, the attainment of a stipulated result, or
the occurrence of a subsequent event; and that the value conclusion, as well as other opinions
expressed herein, are not'based on a requested minimum value, a specific value or approval of
a loan.
The appraisal analyses , opinions and conclusions were developed and this appraisal report has
been prepared in conformance with (and the use of this report is subject to) all regulations
issued by the appropriate regulatory entities, regarding the enactment of Title XI of the
Financial Institution Reform, Recovery and Enforcement Act of 1989 (FIRREA), the Uniform
Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board
of the Appraisal Foundation, and the Code of Professional Ethics and Standards of Professional
Practice of the Appraisal Institute which includes the provisions for peer review. We do not
authorize the out-of-context quoting from or partial reprinting of this appraisal report; and
neither all nor part of this appraisal report shall be disseminated to the general public by the
use of any public communications media without the prior written consent of the undersigned
appraisers.
The subject of this appraisal report is located off the north side of State Road 434, just west of
the Central Winds Park entrance road, within the city of Winter Springs, Seminole County,
Florida.
The undersigned MAl Appraiser certifies that he has personally inspected the subject property.
The undersigned Senior Appraiser certifies that he has personally inspected the subject and
every comparable sale included in this report.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
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As a result of our investigation into those matters which affect market value, and by virtue of
our experience and training, we have formed the opinion that the market value of the fee
simple interest in the subject property, in the "as is" condition, effective August 2, 2000, was
$3,485,000.
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Assuming an aggressive and coordinated marketing effort, we have estimated an exposure
period of nine to 12 months for the subject.
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Larry A. Church, MAl, SRA
State-Certified General Appraiser ??oo599
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Robert J. Perkins, Senior Appraiser
State-Certified General Appraiser 0002457
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PRIMIS, Inc.
The direct source for property information ~
File No. 11141
LOCATION
TYPE OF PROPERTY
ZONING
HIGHEST AND BEST USE
INTEREST IN
PROPERTY APPRAISED
DATE OF VALUATION
VALUE ESTIMATE OF
SUBJECT PROPERTY" AS IS"
EFFECTIVE AUGUST 2, 2000
ESTIMATED
EXPOSURE PERIOD
CONDITIONS
SUMMARY OF APPRAISAL
The subject property is located off the north side of
State Road 434, just west of the Central Winds
Park entrance road, in Winter Springs, Seminole
County, Florida.
The subject consists of 27.3:f: gross acres. The
subject property lies within an area designated as a
Town Center on the City's Comprehensive Plan
Future Land Use Map. This designation permits
multifamily development (up to 36 dwelling units
per acre) and/or various other commercial uses.
Town Center, Winter Springs (multifamily use is a
legally permissible use under this designation).
The highest and best use of the subject IS
development with a multifamily use.
Fee Simple
August 2,2000
$3,485,000
9 to 12 months (at the values estimated herein).
This appraisal is subject to the "General
Assumptions ", "General Limiting Conditions ",
"Special Limiting Conditions" and "Cenificate of
Appraisal" included in the text.
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The direct source for property information
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File No. 11141
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GENERAL ASSUMPTIONS
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1. The legal description used in this report is assumed to be correct.
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2. No survey of the property has been made by the appraiser and no responsibility is
assumed in connection with such matters. Sketches in this report are included only to
assist the reader in visualizing the property.
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3. No responsibility is assumed for matters of legal nature affecting title to the property nor
is an opinion of title rendered. The title is assumed to be good and merchantable.
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4. Information and data furnished by others is usually assumed to be true, correct and
reliable. When such information and data appears to be dubious and when it is critical to
the analysis, a reasonable effort has been made to verify all such information; however,
no responsibility for its accuracy is assumed by the appraiser.
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AU mortgages, liens, encumbrances, leases, and servitudes have been disregarded unless
so specified within the report. The property is analyzed as though under responsible
ownership and competent management.
It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
structures which would render it more or less valuable. No responsibility is assumed for
such conditions or for engineering which may be required to discover them.
7. It is assumed that there is full compliance with all applicable federal, state and local
environmental regulations and laws unless noncompliance is stated, defined and
considered in this report.
8. It is assumed that all applicable zoning and use regulations and restrictions have been
complied with, unless a nonconformity has been stated, defined and considered in this
report.
9. It is assumed that all required licenses, consents or other legislative or administrative
authority from any local, state, or national governmental or private entity or organization
have been or can be obtained or renewed for any use on which the value estimate
contained in this report is based.
10. It is assumed that the utilization of the land and improvements is within the boundaries or
property lines of the property described and that there is no encroachment or trespass
unless noted within this report.
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The direct source for property information
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GENERAL ASSUMPTIONS
(Cont'd)
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11. We are not expert in determining the presence or absence of hazardous substances,
defined as all hazardous or toxic materials, wastes, pollutants or contaminants (including,
but not limited to, asbestos, PCB, UFFI, or other raw materials or chemicals) used in
construction, or otherwise present on the property. We assume no responsibility for the
studies or analyses which would be required to determine the presence or absence of such
substances or for loss as a result of the presence of such substances.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
GENERAL LIMITING CONDITIONS
1. The appraiser will not be required to give testimony or appear in court because of having
made this analysis, with reference to the property in question, unless arrangements have
been previously made thereof.
2. Possession of the report, or copy thereof, does not carry with it the right of publication.
It may not be used for any purpose by any person other than the party to whom it is
addressed without the written consent of the appraiser, and in any event only with proper
written qualifications and only in its entirety.
3. The distribution of the total valuation in this report between land and improvements, if
any, applies only under the reported highest and best use of the property. The allocations
of value for land and improvements must not be used in conjunction with any other
appraisal and are invalid if so used.
4. No environmental impact studies were either requested or made in conjunction with this
analysis, and the appraiser hereby reserves the right to alter, amend, revise, or rescind
any of the value opinions based upon any subsequent environmental impact studies,
research and investigation.
5. Neither all nor any part of the contents of this report, or copy thereof, shall be conveyed
to the public through advertising, public relations, news, sales or any other media without
written consent and approval of the appraiser. Nor shall the appraiser, firm or
professional organization of which the appraiser is a member be identified without written
consent of the appraiser.
6. Neither our name nor report may be used in conjunction with any financing plans which
would be classified as a public offering under state or federal securities laws.
7. Acceptance of and/or use of this report constitutes acceptance of the foregoing General
Assumptions and General Limiting Conditions.
8. The Americans with Disabilities Act of 1990 sets strict and specific standards for
handicapped access to and within most commercial and industrial buildings.
Determination of compliance with these standards is beyond appraisal expertise and,
therefore, has not been attempted by the appraisers. For purposes of this appraisal, we
are assuming the building is in compliance; however, we recommend an architectural
inspection of the building to determine compliance or requirements for compliance. We
assume no responsibility for the cost of such determination and our appraisal is subject to
revision if the building is not in compliance.
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The direcl source for properly information
File No. 11141
SPECIAL LIMITING CONDITIONS
1. We were not provided with a survey of the subject property. The Seminole County
Property Appraiser's office shows a size of 26.07 acres. However, the subject property is
currently under a real estate purchase agreement reporting a size of 27.3 acres. We have
used the 27.3 acre size in our valuation of the subject. However, should a subsequent
survey show a different size, we reserve the right to adjust our value accordingly.
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The direct source for property information
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File No. 11141
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OVERVIEW OF APPRAISAL ASSIGNMENT
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Purpose of Appraisal
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The purpose of this appraisal was to estimate the "as is" market value of the fee simple interest
in the subject property.' The "as is" value is effective as of the date of our most thorough
physical inspection of the subject, August 2, 2000.
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Function of Appraisal
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The function of this appraisal is to aid in establishing a selling price for the subject property.
Competency of Appraisers
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The appraisers' specific qualifications are included within this report. These qualifications
serve as evidence of their competence for the completion of this appraisal assignment in
compliance with the competency provision contained within the Uniform Standards of
Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the
Appraisal Foundation. The appraisers' knowledge and experience, combined with their
professional qualifications, are commensurate with the complexity of this assignment based on
the following:
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. Professional Experience
. Education Background and Training
. Business, Professional, Academic Affiliations and Activities
The appraisers have previously provided consultation and value estimates for vacant
commercial, multifamily and single-family residential land throughout Central Florida.
Scope of Appraisal
The appraisal involved the systematic market research and analysis necessary to reach value
conclusions for the subject property, which we believe to have a highest and best use of
multifamily residential development. The initial step was to inspect the subject property, the
general market area, and the neighborhood. From this, we determined the highest and best use
based on physical characteristics of the land, surrounding land uses, legal constraints, and
residential and commercial development trends within the subject neighborhood.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
We have estimated the market value of the fee simple interest in the subject property in the "as
is" condition via the utilization of the Sales Comparison Approach.
Interest Appraised
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The interest in the property appraised is fee simple.
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File No. 11141
DEFINITION OF MARKET VALUE
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, 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: (a) buyer and seller are typically
motivated; (b) both parties are well informed or well advised, and each acting in what he
considers his own best interests; (c) a reasonable time is allowed for exposure in the open
market; (d) payment is made in terms of cash in U. S. dollars or in terms of financial
arrangements comparable thereto; and (e) 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.!
DEFINITION OF FEE SIMPLE INTEREST
Absolute ownership unencumbered by any other interest or estate; subject only to the
limitations of eminent domain, escheat, police power, and taxation.2
DEFINITION OF HIGHEST AND BEST USE
Highest and best use is defined as: (1) the reasonable and probable use that supports the
highest present value of vacant land or improved property, as defined, as of the date of the
appraisal; (2) the reasonably probable and legal use of land or sites as though vacant, found to
be physically possible, appropriately supported, financially feasible, and that results in the
highest present land value; and (3) the most protitable use.
Implied in these definitions is that the determination of highest and best use takes into account
the contribution of a specific use to the community and community development goals as well
as the benefits of that use to individual property owners. Hence, in certain situations the,t'
highest and best use of land may be for parks, greenbelts, preservation, conservation, wildlife,'
habitats, and the like.3
1 Uniform Standards of Professional Appraisal Practice, Page 1-7; Federal Reserve System;, 12 CFR PartS;'
208 and 225, Sec. 225.62; Office of the Comptroller of the Currency, 12 CFR Part 722, Sec. 722.2; Appr .
Institute, The Dictionary of Real Estate Appraisal, 1993.
2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 1993.
3 Ibid.
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The direct source for property information
File No. 11141
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Old State Road 434 Facing West (Subject On Right)
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Old State Road 434 Facing East
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PRIMIS, Inc.
The direct source for property information
File No. 11141
View Of The Central Winds Park Entrance Road Facing North (Subject Property On Left)
Subject Property From Old State Road 434 and Central Winds Park Entrance Road
Facing Northwest
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File No. 11141
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SUBJECT PROPERTY IDENTIFICATION
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Type and Location
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The subject consists of 27.3:t: acres of undeveloped land located off the north side of State
Road 434, just west of the Central Winds Park entrance road, in the city of Winter Springs,
Seminole County, Florida. The subject falls under the "Town Center" land use designation for
the City of Winter Springs, which permits neighborhood commercial use and/or residential use
up to 36 dwelling units per acre.
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Legal Description
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Lots 1 and 2, Block "D"of D.R. MITCHELL'S SURVEY of the Levy Grant, as recorded in
Plat Book 1, Page 5 of the Public Records of Seminole County, Florida.
Access
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Due to the realignment of State Road 434, the only access to the subject property is the spur
leading from the new alignment of State Road 434 to the old State Road 434 road bed. The
western edge of the subject property cannot access the new State Road 434 alignment.
However, as a result of a settlement in a litigation suit, the subject property has been granted
two access points from the new State Road 434 alignment, approximately 200 feet from the
east and west boundary lines of the subject property.
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Property History
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The subject property has been under the ownership of Edward H. Parker and Sue S. Parker,
Co-Trustees, under the unrecorded Revocable Trust Agreement entitled Edward H. Parker
Revocable Trust, since June 1996. Prior to this transfer, the subject was under the continuous
ownership of Edward H. Parker in excess of the past three years.
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The subject property is currently under a purchase agreement between the previously stated
owners and Arbor Lakes Development Corporation of Jacksonville, Florida. The agreed upon
price is $7,000 per dwelling unit approved for Purchaser's development upon the Property,
which shall not be less than 18 dwelling units per acre. Based on the subject property size of
27.3 acres, as stated in the Purchase Agreement, this calculates to a sale price of $3,439,800.
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The purchase agreement was entered into on April 4, 2000, and was contingent upon the
purchaser obtaining a change in the future land use designation and zoning to permit a
multifamily residential apartment project with a density of at least 18 units per net usable acre.
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This contingency has since been met with a change in future land use and zoning that allows a
multifamily residential apartment project with a density of up to 36 units per acre. Although
the subject's land use designation allows for development of up to 36 units per acre, the
developer must submit plans to the City of Winter Springs Development Review Committee
for approval. We are of the opinion that the purchaser, or any prudent developer, would not
seek approval for the development of a project containing any more than 18 dwelling units per
acre. (Our reasoning for this is stated in the Highest and Best Use section of this report.)
Therefore, even though the current land use designation and zoning allows for up to 36
dwelling units per acre, we believe that, if the purchase agreement results in an eventual sale,
that the price will be based on 18 dwelling units per acre, or $3,439,800.
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File No. 11141
REGIONAL DATA
The Orlando Metropolitan Statistical Area (MSA) includes the counties of Orange, Seminole,
Osceola, and Lake. The four-county area is commonly referred to as Central Florida, or
Metropolitan Orlando.
Each week, the Orlando MSA generates the following statistics:
. $321 Million In Retail Sales
. 1,463 New Adult Residents
. 463 New Jobs
. 744,270 Tourists
. 308 New Residential Building Permits
. 269 New Businesses
Historical Background
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Originally, the Orlando Metropolitan Area, like most of Central Florida, was predominantly an
agricultural community, with citrus fruits being the primary crop. The citrus industry endured
some severe freezes in the 1980s and early 1990s, but Florida still dominates the nation in citrus
production.
Although agriculture is still a factor in the Central Florida economy, new industries have moved
into the area. Industries such as tourism, electronics, manufacturing, and distribution have all
contributed to making Central Florida one of the fastest growing regions in the nation.
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The remainder of this section is divided into the four regional forces that influence value. The
forces are categorized as: environmental (physical), social, governmental, and economic. These
forces are often interrelated, with each force having an impact on the others. An overview of
these regional forces within the Orlando MSA follows.
ENVIRONMENTAL (PHYSICAL)
The Orlando MSA is situated in the approximate center of the state of Florida and covers 3,985
square miles. Orlando is by far the largest city and the focal point of the MSA. The city of
Orlando comprises the primary population center. Other notable municipalities include Winter
Park, Maitland, Altamonte Springs, Lake Mary, Oviedo and Kissimmee.
Topography - The area is characterized as gently rolling terrain, with numerous lakes and rivers.
Central Florida is well-known for its lakes, which provide excellent recreational opportunities
and waterfront homesites. The climate and topography of the Orlando MSA are conducive to the
growth-oriented trends which are projected for the region.
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File No. 11141
Transportation Overview - The Orlando area is- well served by all modes of transportation; a
well-designed network of major interstate highways, limited access toll roads, and state
highways traversing the entire Central Florida region. Rail-service, both custom and piggyback,
is available in several areas, most notably in industrial nodes. Deep and shallow water ports are
a short distance away, as the Atlantic Coast is 50 miles east of Orlando and the Gulf Coast is 75
miles to the west. Private, commercial, charter, and cargo air service are provided via Orlando
International Airport and several smaller airports, most notably the Orlando Executive Airport
and Orlando/Sanford Regional Airport.
Historically, land use patterns develop around transportation systems, with business enterprises
locating at crossroads or along heavily traversed roadways, and the manufacturing sector
locating near railways and convenient distribution points. Generally speaking, this has been the
case in the Orlando area. Most of the growth in the area has focused around the Interstate 4
corridor, with major projects occurring in the Orlando central business district, the southwest
portion of Orange County, and northward into Seminole County. In the long-term, this trend is
expected to continue, with development along the Interstate 4 corridor eventually stretching from
Da ytona Beach to Tampa.
Road Network _ Metropolitan Orlando has an extensive roadway system, providing good access
to all areas of the state. The major arterials in the area are Interstate 4 and Florida's Turnpike
(Florida Sunshine Parkway). Interstate 4 connects the Daytona Beach area on the East Coast
through the Orlando area to the Tampa/St. Petersburg area on the West Coast. Florida's Turnpike
is a limited access toll road, which traverses the state in a northwest-southeast direction. It
extends south from Wildwood through Orlando to Miami.
The first construction is still years away, but dUling the past several months, plans to widen
Interstate 4 have been discussed. The $1.8 billion project ultimately will expand Interstate 4 to
between six and eight general use lanes and two lanes for car pools and buses only. The work
entails more than a mammoth price tag. It is likely to destroy many homes and businesses.
Many property owners who don't lose their homes or shops will be left to cope with increased
noise coming from the reconstructed highway. The 43 mile segment of Interstate 4 to be
widened stretches from the Beeline Expressway to State Road 472 in Vol usia County.
The Interstate 4 reconstruction plan - approved in 1995 by the region's transportation planning
agency, Metroplan _ is Florida's long-term plan to improve Interstate 4. The emphasis is on
long-term. Officials say that without a new source of local money (and none appears imminent)
all the work won't be complete until about 2030. Segments of the job - Interstate 4 through
downtown, for example - could be completed sooner, possibly as early as 2005. The job was
originally pmt of a bigger package that included plans to build an electric rail line. The fate of
the rail line, however, has apparently been sealed as the city of Orlando has recently
acknowledged that local support was not sufficient to continue to pursue this option.
-
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The direct source for property information
.
""
File No. 11141
"
.....
Traffic flow has been a problem in portions of Central Florida, particularly in downtown Orlando
and certain sections of Interstate 4. As.in most expanding urban areas, recent transportation
system improvements have not kept pace with rapid population growth. Thus, many of the
major streets and highways are congested, a problem that is expected to get worse as growth
continues. In addition, there are insufficient federal, state, county, and city funds available for
the transportation system improvements which will be required to maintain the current levels of
traffic flow over the next several years.
---.
---
At least partially in response to the lack of available funding, private toll roads have become a
viable alternative. The Orlando-Orange County Expressway Authority (O-OCEA) is rapidly
building a beltway system that will eventually almost completely encircle Metropolitan Orlando.
The beltway project is well ahead of schedule, with the southern and eastern portions being
complete. Also refen'ed to as the Central Florida GreeneWay, northern and western legs are
planned for the beltway. The beltway has improved traffic flow in the region, but the system
serves primarily fringe areas and has not substantially alleviated traffic in the downtown area. In
the long run, the beltway will become increasingly important as Orlando expands outward. The
northeastern most leg of this beltway, currently under construction and dubbed the "missing
link", will connect the northeastern terminus of the beltway with Interstate 4, just north of the
subject neighborhood. Completion of the "Missing Link" is anticipated by 2002. Relatively
speaking, the traffic situation in Central Florida is favorable as compared to other major urban
areas; but as the area continues to expand at its current pace, traffic congestion is projected to get
far more difficult before being resolved.
--.
."
--..
...
--
-
Aviation - Orlando International Airport (OIA) is one of the fastest growing airports in the
country. One industry publication recently ranked OIA as the fastest growing major airport in
the world. According to various reports, it ranks around the 15th to 20th busiest airports in the
country based on passenger traffic, and is the third largest airport in the country based on land
size. Estimates indicate passenger traffic at alA was in the range of 29 Million for 1999.
According to the Greater Orlando Aviation Authority, passenger traffic has increased from
approximately 10 Million in 1985, to over 18 Million in 1990, to 27 Million in 1997.
~
The increase to 29 million for 1999 represents a 67% increase in the past 10 years, Passenger
projections are for almost 35 Million for 2003 and almost 38 Million for 2005, when the new
terminal opens. The total expansion project is budgeted for over $1 billion. With over 15,000
acres, Orlando International Airport is the third largest airport parcel in the county. With only
30% of this area developed, a significant amount of land is available for future expansions.
Other smaller airports that serve the region include Orlando Executive Airport, Orlando/Sanford
Regional Airport, Kissimmee Municipal Airport, and Leesburg Municipal Airport.
18
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PRIMIS, Inc.
The direct source for property information
File No. 11141
Public Ground Transportation - Lynx provides local public transportation and currently
operates an expansive bus system that serves Orlando, as well as other communities in Orange
and Seminole counties. The Orlando area is also served by the Greyhoundffrailways bus line,
with a terminal just west of the Orlando central business district.
!II
Lynx has several improvement projects that should increase the efficiency of public ground
transportation. The Lymmo bus route has recently come online in downtown Orlando and
essentially functions as a trolley service for the central business district.
jjj
Rail - Amtrak presently operates passenger trains in the Orlando area, with round-trip service
from Orlando to New York. Passenger trains typically stop at four stations in the MSA: Sanford.
'Ii Winter Park, Orlando, and Kissimmee. The Seaboard Coast Line Railroad operates freight rail
service between northern and southern Atlantic points and connects with all major U.S. rail lines.
There are two major freight stations in the Central Florida area, Orlando and Plymouth.
.
Ports - There are three major ports within two hours of the Orlando MSA. The Port of Sanford
is an inland port northeast of Orlando, while Port Canaveral and Tampa Harbor are deepwater
~ seaports located on either coast.
SOCIAL
11
Population - The Orlando MSA is the fourth largest MSA in the state and among the 25 largest
MSAs in the nation. Population statistics are as follows.
.
..
1980 699,904
1985 862,700
..
199() 1,072,748
1995 1,214,314
..
1997 1,473,271
t. 2000 1,500,000*
2005 1,760,000*
". Source: U.S. Census Bureau
* Estimated in Forecast 2000 CFB Journal
II
11
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PRIMIS, Ioe.
The direct source for property information
File No. 11141
...
Central Florida has seen significant population increases over the last few decades. From 1980
to 1990, the Orlando MSA reflected an average annual growth rate of over 4%. During this
study period, the MSA included Orange, Osceola, and Seminole counties. In 1990, Lake County
was added to the Orlando MSA. For the next decade, population growth in this four-county area
is expected to continue, with a projected average annual growth rate of 3.47% projected between
2000 and 2005.
iii
According to one industry publication, over the last 10 years Metropolitan Orlando has been the
second-fastest growing region in the nation and is predicted to be first in the next 10 years. This
claim is supported by a national ranking of growth areas by percentage change in population, as
shown on the following chart.
..
ii
National Ranking Of The Top 10 Annual Growth Areas
..
Orlando, FL
Las Vegas, NV
Phoenix, AZ
Salt Lake City, UT
Fort Worth, TX
Albuquerque, NM
San Diego, CA
Atlanta, GA
Denver, CO
Orange County, CA
Source: Valuation Network, Inc.
I
2
3
4
5
6
7
8
9
10
7
1
5
3
3
9
27
4
12
19
\II
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,
11
By the year 2005, Central Florida is projected to have a total population of over 1.76 million
11 people. Population projections for Florida and the four counties encompassing the Orlando MSA
are as follows.
11
Florida 15,527,384
Orange County 842,660
Seminole County 372,903
Lake County 200,005
Osceola County 166,901
TOTAL MSA 1,582,469
Source: BEBR - Florida Population Studies
16,761,774
928,562
415,798
222, 199
194,80 I
1,761,360
'1
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20
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The direct source for properly information
File No. 11141
For the entire region, a major catalyst behind the rapid growth of Central Florida over the past 20
years has been Disney in southwest Orange County, which opened in 1971 and has been
expanded over the years. Furthermore, high-tech industries (often military-oriented), such as
Lockheed Martin and the Kennedy Space Center, have significantly contributed to the Central
Florida growth.
Along with the increases in population, the characteristics of the population are important. While
the median age within the state is approaching 40 years, the median age within the Orlando
Metropolitan Area is currently estimated at 35.9 years. Over one-third of the Orlando MSA
population is between the ages of 24 and 44, making Orlando one of the youngest markets in the
state. This indicates that, rather than having an influx of mostly retirees to the area, in-migration
is dominated by young professionals with relatively high effective buying incomes. Relative to
other areas of the state,. Orlando has high buying power. Statewide, the median household
effective buying income is just under $33,000 annually, while the Orlando MSA estimate is
almost $36,000.
Employment _ The economic base of the Orlando MSA continues to diversify, with less
dependence on anyone component. By category, almost 50% of the workforce is in the service
industry, which covers a wide range of employment classifications. This reflects the large
impact of the tourist industry in Central Florida. The next largest category is wholesale and
retail trade, with just over 20% of the workforce, while the government sector is third, with
around 10% of the workforce. Disney is the largest employer in the region, with roughly 55,000
employees. The largest employers in the Orlando MSA are as follows.
Walt Disney World Company 55,000
Orange County Public Schools 19,608
U.S. Postal Service 11,600
Universal Studios Florida II ,500
Florida Hospital 11 , 180
Publix Supermarkets 9,911
Seminole County Public Schools 8,298
Winn-Dixie Stores, Inc. 6,625
Orange County Government 5,700
The Orlando area has seen relatively low unemployment rates over the past several years. The
Orlando MSA has consistently had an unemployment rate lower than the state average.
Historical unemployment rates are summarized as follows.
21
PRIMIS, Inc.
The direct source for property information
File No. 11141
1991
1992 7.5%
1993 6.2%
1994 6.3%
1995 6.1%
1996 5.8%
1997 3.1%
1998 2.6%
1999 2.7%
Source: Fishkind and Associales/Florida Depl of
Labor & Employment & Forecast 2000 CFB
Journal
Steady job growth is expected throughout the region, especially in the areas of high-tech,
business services, tourism, and health services. Statistics from the mid to late-1990s show that
non-farm employment in the Orlando MSA is growing by about 6% annually, making Orlando
the third fastest growing labor market in the country. Most reports indicate that several hundred
thousand new jobs are created in Central Florida every year.
Area residents exhibit potent buying power. The region's median household effective buying
income is higher than that of Florida and the nation. The following chart exemplifies this
statistic.
$29,982 18.4% 23.7%
Orange County $34,614 25.6% 19.6% 29.8%
Seminole County $43,172 20.9% 19.9% 41.5%
Lake County $24,257 30.2% 16.0% 14.3%
Osceola County $29,015 29.9% 20.5% 19.1%
MSA $33,998 25.6% 19.2% 29.3%
Florida $30,830 25.3% 17.8% 26.0%
United States $33,482 22.9% 18.0% 29.1%
22
PRIMIS, Inc.
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File No. 11141
GOVERNMENT
As provided in the State Constitution, Seminole and Osceola counties are divided into five
districts, each represented by a commissioner who must reside in that district and is elected at
large. Orange County has six single-member districts, with only the chairman elected at large.
The county commissioners are the chief administrators and fiscal officers of the county. They
have no authority over the other elected officers (tax collector, tax assessor or sheriff). County
commissioners are elected on a partisan basis, and the Chairman of the Board of County
Commissioners is also an elected official.
Taxation - Florida offers one of the most favorable tax structures in the country. The Florida
Constitution mandates a balanced state budget, forbidding state deficit financing for government
operation. Florida ranks as the sixth lowest state in revenue derived from corporate and personal
income taxes. There is no state income tax and real estate taxes are relatively low. Almost 60%
of Florida's tax revenue comes from sales tax collections; as a result, tourism plays an important
factor in the state's tax structure. Sales taxes paid by tourists are a major source of revenue to
the state's general fund and allow the state to maintain the second lowest level of direct taxation
on businesses in the southeast.
Services - City and county municipalities within the metropolitan area are responsible for
providing most types of services. Sewer, water, electric, police, fire, and most other relevant
services are adequately provided in the region. Wells and septic tanks are still being permitted if
soil conditions are adequate in certain areas where sewer and water are unavailable from nearby
municipalities.
Impact Fees - In order to raise additional revenue to fund public services, all four counties, as
well as most municipalities, have adopted impact fees. Depending on the type of development,
these fees typically fund public transportation, sewer, water, police, fire, libraries, and/or
schools. Impact fees have become a noticeable factor in the development costs of new projects,
but are fairly uniform throughout the region and are comparable to other major urban areas in
Florida and throughout the southeast.
Growtll Management - "Concurrency" has become an important issue for real estate developers
throughout Florida. Concurrency is a component of the 1985 growth management law which
mandated that cities and counties create a comprehensive plan regarding future development and
the funding of supporting services such as water, sewer and roads. Throughout the Central
Florida region, county and city governments enforce concurrency through future land use maps
and growth management plans.
23
PRIM IS , Inc.
The direct source for property information
File No. 11141
ECONOMIC
Orlando exhibits a relatively diverse economic base, ranging from industrial to tourist-related
industries. Although the area has long been known as a popular tourist destination, it is
beginning to be recognized for other reasons, as reflected in the relocation of businesses and
industries to the Orlando area. Most sectors of the Central Florida econqmy are expanding.
II
The consensus for the region's economy in 2000 is that it will grow a little more slowly than it
did in the late 1990s - but still at a pretty consistent pace, especially when compared with the rest
of the nation. That's the outlook for Central Florida from a wide variety of experts, from
economists and developers to lenders and business executives.
Central Florida's economic success is now intimately linked with that of the nation and the
world. When U.S. consumers' confidence dips or Brazil's currency tumbles, Metropolitan
Orlando and its neighboring counties reap the consequences.
Five factors that will figure prominently in the health of the region's economy in 2000 and
beyond:
. Global Economy
. Population and Job Growth
. Real Estate Development
. Business Expansion
. Consumer Confidence.
~
The Orlando area has about a $45 billion-a-year economy and construction will account for
about $5 billion of that- or more than 10%.
Even if the nation skates perilously close to a recession in 2000, Central Florida should be able to
maintain its economic position. History has shown that Florida and Orlando usually are
economically resilient to recessions when compared to the nation as a whole.
Office - Virtually all indicators point to an extremely healthy office market in Central Florida.
The space market is tight, with strong demand and existing buildings being well occupied. Rent
levels continue to increase and speculative construction has made its way back into the market.
Recent office market statistics are summarized as follows.
-
;;
24
PRIMIS, Inc.
The direct source for property information
File No. 11141
..-
Central Florida Office Market Summary
(Classes A, B & C Combined)
~;~" -;^"71-:r::'~t!'s~';;i;W='~ 'He - -'r~ H ~'\--,,::j';_ J'JP1i"t ~~.~J;' ",'- - ~ -~
;\!:.l'fy 1~:litH ,rJP:(l:. ~\J
~'" _ .>..tL,.~~..k-, ~ l/c.,..~.dL;~:' ~<:,;,~,,"La:k.,,-....., >.-~. ..-"- ~L.._"""~~~ , _..:.~= __...'..... ..,.~l. -- - .....~. " " ..~.... , ....,
Total Inventory 16,329,965 SF 18,949,610 SF
A vailable Space 1,207,234 SF 2,113,273 SF
Overall Vacancy Rate 8.45% 8.03%
Net Absorption 1,380,150 SF 1,521,252 SF
Continued corporate relocations, coupled with an influx of large users, have helped to position
Orlando as one of the nation' s favored office markets. Speculative construction is no longer a
leap of faith and is present in many of the area's submarkets; most notably are those of Maitland
and Lake Mary, two of the strongest submarkets in the MSA. Strong economic growth and the
resulting high demand for expansion space had caused a shortage of available Class "A" space
marketwide, which has been remedied with the addition of new office inventory.
The overall vacancy rate for the market in 1999 was 8.3%, down slightly from 8.45% at the end
of 1998. With the continued vigorous pre-leasing activity, it is expected that vacancy rates
should stay well-entrenched in the single digits throughout 2000.
-
Net absorption for 1999' was 1,521,252 square feet, as compared to 1,380,150 square feet for
1998.
Central Florida's three most prominent and successful office markets continue to prosper.
Downtown Orlando, Maitland Center, and Heathrow-Lake Mary have all surpassed the
industry's benchmark occupancy rate of 95% - and there does not appear to be an end in sight.
Maitland Center and Lake Mary/Heathrow were the most active suburban office markets in the
state last year and they appear likely to retain that title in 2000.
Industrial - The Central Florida industrial market has been quite active over the past several
years, showing record levels of new construction and absorption. Most market participants
question the impact of the new construction on rental rates and vacancy levels. It appears that
demand justifies most new construction and that rents and occupancy should remain relatively
stable. Older, functionally obsolete space is falling out of favor in the market. The south
Orlando area is well established as the dominant industrial sector in the Central Florida market.
;:-
25
~
PRIMIS, Inc.
The direct source for property information
File No. 11141
The industrial market should remain healthy well into the foreseeable future, as Central Florida
benefits from population growth, an expanding economic base, a good transportation system, and
a central location. In particular, the Orlando area should continue to expand its presence as a
major warehouse/distribution center for the state and the southeast.
Update
Orlando's industrial market continues to expand and attract high-caliber tenants. The local
economy is thriving and the business base is expanding. The Orlando area has recently been
lauded by Fortune, Business Week, and Entrepreneur magazines that have labeled it among the
fastest growing cities in the nation, as well as a leader in the field of high-tech and business
development.
Central Florida has become a high-tech destination, boasting names such as Cirent
Semiconductor, Lockheed-Martin, ECC International, Litton Laser, and Silicon Graphics.
The real estate market in Orlando has been just as stable. With decreasing vacancies, rising
rental rates, and continued positive absorption, the Orlando industrial market is well positioned
for a record year. The current overall vacancy rate of8.6% is down 10.1% from year-end, while
the overall inventory has increased by more then 1.2 million square feet.
Leasing activity was strong in 1999. The majority of the activity occurred within
warehouse/distribution buildings, which accounted for the vast majority of all leasing activity.
However, this stands to reason, as 75% of the market is comprised of warehouse/distribution
inventory. Orlando's absorption levels have also been healthy. The year-to-date total is 1.63
million square feet, which is already 110% of all absorption recorded during 1998. The strongest
submarket during 1999 was Orlando Central Park, which historically has been one of Orlando's
top industrial performers. Asking rental rates continue their climb, while the average rate for all
space types has risen $0.70 over year-end 1999 to $6.83 per square foot.
High Technology - A growing base of high technology companies, a technologically-oriented
university, a university-related research park, a well-educated labor pool, and a desirable quality
of life all combine to make Orlando one of the fastest growing high technology centers in the
nation. In fact, from the mid-1980s to the late-1990s, employment in Central Florida's high
technology industries increased by almost 150%, while the national growth rate for these
industries was less than 50%. Central Florida has been successful in attracting regional and
national centers of high tech companies, including software developers, data processors, and
research/design firms.
26
PRIMIS, Inc.
The direct source for property information
File No. 11141
Retail - According to various local reports, the Orlando retail market is just under 40 million
square feet of space. Overall, occupancy approximates 92%. In 1999, over 1.5 million square
feet of retail space came on line, which is the most in at least 10 years. Absorption has been
strong, at 1.5 to 2.0 million square feet annually over the past few years.
The retail market is relatively healthy as compared to other areas of the state, but overall trends
of consolidation and reorganization throughout the industry are a concern. Freestanding retail
stores, typically on a build-to-suit basis, and community shopping centers anchored by grocery
stores are unquestionably the most popular type of development. Power centers seem to be
losing favor with some market participants. In contrast to national trends, mall growth has been
extremely active in Central Florida. Two regional malls (Seminole Towne Center and West
Oaks Mall) were the two most recently developed, both within the past five years, and two more
(Oviedo Crossings and Waterford Lakes) have both recently been completed as well. The tourist
sector has seen retail development, most notably in the form of retail/entertainment centers.
Major projects include .The Pointe on International Drive, City Walk at Universal Studios, and
Downtown Disney at Lake Buena Vista. Additionally, themed restaurants continue to be
attracted to the Orlando tourist area.
-
;
In general, most indicators point to a healthy retail market in the Central Florida area. Overall,
occupancy is at its highest level in the 1990s, and rental rates in most sectors have been steadily
increasing. Retailers continue to be attracted to Central Florida because of strong population
growth, relatively high buying power, and a significant tourist population.
One of the fastest growing areas of the Orlando retail economy is the expansion of restaurants in
the Central Florida area. The following table demonstrates taxescoHected and number of
restaurant establishments for this industry within the Orlando MSA.
Year
,
1991
1992
1993
1994
1995
1996
1997
1998
J
!
!II
I
.' O.C'.l'axcs,
.j\.n~"P;J::QJ'~t~'.
$76,836,255
$85,811,840
$84,077, I 05
$83,309,1\2
$96,004,603
$104,150,251
$109,876,037
$117,032,411
$105,046,484
$1\8,622,962
$\19,338,697
$\19,705,041
$\29,780,6\3
$139,987,365
$148,241,214
$157,970,103
2,998
2,448
2,469
2,39\
2,388
2,570
2,598
2,680
4,343
3,558
3,597
3,515
3,497
3,734
3,801
3,886
27
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PRIM IS , Ine.
The direct source for property information
File No. 11141
..
Hotel - The Central FI~rida hotel market is drivel1 by Orlando's ranking as the number one
tourist destination in the world. Currently, Orlando attracts over 35 million visitors annually.
Furthermore, the hotel market continues to gain momentum on the strength of increasing
convention business. After recently being expanded, the Orange County Convention Center
contains over one million square feet and is one of the largest facilities in the nation. Over the
next few years, approximately two million delegates are expected annually, with an economic
impact of over $2 billion. Recent hotel market statistics are summarized below.
~
~
....
Central Florida 74.6% 71.7% -2.9% $82.12 $84.67 3.1%
North Orlando 68.9% 63.5 -5.4% $64.73 $67.41 4.1%
Downtown Orlando 65.2% 61.4 -3.8% $61.94 $6 I. 72 0.4%
lnt'l Drive 78.4% 75.3 -3.1% $75.75 $79.73 5.3%
Kissimmee/East 71.0% 66.7 -4.3% $52.65 $51.49 -2.2%
South Orlando 69.2% 69.5 -3.7% $68.26 $71.36 4.5%
Lake Buena Vista 78.0% 75.2 -2.8% $113.45 $116.35 0.9%
Source: Smith Travel Research
-
-
--
,-
-
Based on the number of hotel rooms, which is about 99,000, Central Florida and Las Vegas have
the two largest inventories in the nation. By the year 2002, the Orlando area is expected to have
roughly 122,000 hotel rooms and timeshare units.
-,
Update
Although 1999 brought a decline in occupancy for Central Florida's hotel rooms, the region
remains firmly entrenched as an industry leader in occupancy rates. Orlando's 71.1 % occupancy
rate is still significantly above the national occupancy of 63.3%. Room night demand increased
4% over 1998 and the ADR increased 3.1 %.
Central Florida's average room rate last year was $84.67. New York City posted the highest
average at $189.58. Seven other major cities, including San Francisco, Chicago and New
Orleans, recorded average rates of more than $110 a night.
-
.
The owners of the Florida Convention Center plan expansion, with a cost of $11 million for a
300 room hotel that would connect to the convention center. The 100,000 square foot Florida
Convention Center, the largest meeting facility along the Atlantic coast between Daytona Beach
and West Palm Beach, opened last March after more than $2 million in renovations.
Management does not expect to be big competition for Orlando. In addition, hotel renovation
and reconstruction has been rampant along the Space Coast, according to Brevard County's
Tourist Development Council.
.
28
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PRIMIS, Inc.
The direct source for property information
File No. 11141
Residential - The Central Florida housing market is quite diverse and is one of the most active
markets in the country. Various industry publications rank Orlando as one of the most affordable
housing markets in the nation. In ranking housing performance, indicators such as mortgage
lending, building permits, new-home sales, home prices, population growth, and employment
growth are analyzed. All of these indicators point to a healthy and expanding residential market
in Central Florida. New-home sales and existing home sales are both strong. Interest rates will
continue to be a factor in home purchases, with mortgage rates expected to remain at fairly low
levels.
.mI
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ft
The Single-Family Production Market through October 1999 was as follows:
~
.
"iii
III
..
-
Sanford/Lake Ma
Longwoodl Altamonte
Casselberry/W.S.I Oviedo
Apopka
Winter GardenlOcoee
Central/Winter Park/Maitland
S. Orlando
E. Orange/UCF
S. Orange
Dr. Phillips
Kissimmee
763
158
824
351
424
75
203
1,959
826
581
1,445
570
152
718
242
413
85
199
1,811
640
524
1,115
The Single-Family Custom Market through October 1999 was as follows:
~
-
=
$190,100
$188,500
$181,600
$147,800
$126,900
$147,500
$151,500
$137,800
$154,300
$237,600
$150,300
<.< ' ,: -'. :,~': :J::. , :!:.; ::: ,:,: i:- '; ,':. _ '~:'.:,;;:,:,,;": :\::n)~i .j;
.RMR St;~dy'Ar~~':c
Sanford/Lake Mary
Longwoodl Altamonte
Casselberry/W.S.I Oviedo
Apopka
Winter Garden/Ocoee
Central/Winter Park/Maitland
S. Orlando
E. Orange/UCF
S. Orange
Dr. Phillips
Kissimmee
29
137
12
109
22
57
19
II
17
10
242
152
120
19
95
13
55
19
6
16
10
216
182
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..
PRIMIS, Inc.
The direct source for property information
File No. 11141
..
c:..
Multifamily development was quite active in the mid-1990s, as population growth and the
transitional nature of a service-based economy led to high demand for multifamily units. These
trends continue and Orlando remains one of the top multifamily markets in the country. For the
last several years, overall occupancy has typically exceeded 90% and rents have shown steady
increases. New construction of multifamily projects has been active. However, market insiders
are beginning to see a trend toward fewer units being developed. Many say that the building
bonanza of the mid-1990s is beginning to outpace absorption and new projects are commencing,
but at a slower overall rate. This trend is likely to continue, until such time that demand again
outpaces supply by a considerable margin.
As of September 1999, the overall market occupancy was approximately 94.6%. The overall
market occupancy rate is up from March 1999, when the rate was 94.2%. The following chart
reflects recent occupancy rates for the Orlando MSA apartment market.
94.1%
94.9%
95.4%
94.2%
94.6%
The number of units under construction as of September 1999 in the various submarkets of the
Orlando MSA were as follows:
Sanford/Lake Mary
Longwood/ Altamonte
Casse Iberry/W. S./Oviedo
Apopka
Winter Garden
N. Orlando/Winter Park/Maitland
S. Orlando
E. Orange/UCF
S. Orange
Dr. PhilIips
Kissimmee
Metro Total
1,160
802
1,197
o
13
1,678
2,610
2,372
1,858
1,280
1,185
14,155
30
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PRIMIS, Inc.
The direct source for property information
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File No. 11141
--.
Tourism - Tourism has picked up in the past two years, putting an end to a steady decline over
the previous several years. Relatively low tourism levels in the early 1990s are largely
attributable to a general slowdown in the nation's economy. The number of visitors to the
Orlando area is approaching 30 million annually, and Central Florida remains the number one
tourist destination in the world. All of the major theme parks have recently added new
attractions, or are planning to do so in the near future.
..
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.
The most ambitious plans were developed by Disney and Universal Studios, and these major
expansion projects are essentially complete. Both companies have added hotel rooms,
retail/entertainment centers, and additional theme parks. Most notably, Disney added Animal
Kingdom, its fourth major theme park, and Universal Studios added Islands of Adventure, its
second theme park. Although not technically classified as tourist attractions, Disney has added
two other major projects recently. Celebration is a large planned community at the southeast
comer of Interstate 4 and U.S. Highway 192. It features a wide range of homes, an elementary
school, medical center, downtown area, and office center. Disney's Wide World of Sports is an
expansive sports complex catering to various amateur sports, while also being the spring training
home of the Atlanta Braves.
--
.
.
Projections call for 2% to 4% annual increases in tourism over the next several years. These
estimates could prove conservative, given the overall healthy state of the national economy and
lIi the ever expanding mentality of both Disney and Universal Studios.
Update
.
The new theme parks are expected to pull much of their support from that customer base, at least
until the market expands. Universal Studios Escape is gambling more than $2 billion on its
.. expansion, the centerpiece of which is a new theme park, Islands of Adventure, which opened to
rave reviews in the summer of 1999. Sea World recently started work on its second Central
Florida park set to open in late 2000. The Kennedy Space Center has spent millions on new
- attractions and has quadrupled its advertising budget in the past three years.
Based on number of visitors, Disney is the largest tourist attraction in the world and obviously
ranks first in Central Florida. Universal Studios is ranked second, followed by Sea World, which
is an Anheuser Busch theme park. A ranking of Central Florida tourist attractions follows.
31
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PRIMIS, Inc.
The direct source for property information
File No. 11141
Magic Kingdom - Disney
EPCOT Center - Disney
Animal Kingdom - Disney
MOM Studios - Disney
Universal Studios Florida
Sea World of Florida
Church Street Station Not Available
Source: 1999 Book of Lists, Orlando Business Journal
12.9 Million
10.7 Million
N/A
9.5 Million
8.0 Million
4.9 Million
1.6 Million
107 Acres
300 Acres
N/A
154 Acres
800 Acres
200 Acres
8 Acres
Obviously, the Central Florida economy rdies heavily on the tourism industry. Tourism will
continue to be one of the largest economic sectors in the region. With several large attractions
proposed and continued expansion of current attractions planned, the Orlando area should
maintain its position as the most popular tourist destination in the world. Although the economic
_~ base of Central Florida has diversified, tourism remains a dominant segment of the area
economy.
Conclusion
The favorable environmental, social, governmental, and economic factors which affect the real
estate market in the Orlando MSA have contributed to a healthy, vibrant economy and this
region is one of the fastest growing areas in the country. It has become more diverse, with a
better balance of commercial, industrial, agricultural, financial, and tourist-related industries.
However, tourism continues to be the leading economic force, with substantial growth projected
for the future. Overall, the long-term outlook for the Central Florida region is positive.
32
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PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
APARTMENT MARKET OVERVIEW
In discussing the apartment market, we have relied upon information obtained from local
newspapers and the Residential Market Reports for Apartments published by Charles Wayne
Consulting, Inc., which issues semiannual data on apartments throughout the Greater Orlando
Area. According to the latest survey, the apartment markets in all sub areas of Metropolitan
Orlando appear to be strong. There are currently 534 apartment complexes in the
Metropolitan Orlando Area, with 118,869 rentable units and 13,003 units currently under
construction (including units being renovated). That gave the Metropolitan Orlando Area a
total of 131,872 apartment units as of March 2000.
Occupancy Trends
The overall market occupancy rate in Greater Orlando was approximately 93.0%, as of March
2000. The overall market occupancy rate is down slightly from September 1999, when the
rate was 94.6%. The following is a chart showing the change in occupancy over the last few
years.
~""". -~,.-j;,"~mrc<t~~~m''''' "~~"'mr-0r--"~"-~"'''lC'~;O;-,--,,~~:, 41' .>~f?'-" '''<:1]
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3/92 381 84,345 74,064 87.8%
9/92 383 85,383 77 ,444 90.7%
3/93 387 84,744 78,030 92.1 %
9/93 388 86,152 79,725 92.5%
3/94 400 86,885 79,535 91.5%
9/94 406 88,445 81,073 91.7%
3/95 413 91,094 82,491 90.6%
9/95 424 92,749 85,927 92.6%
3/96 430 93,541 86,767 92.8%
9/96 437 95,557 89,919 94.1 %
3/97 444 96,643 91,491 94.7%
9/97 457 99,504 94,449 94.9%
3/98 469 101,365 96,358 95.1 %
9/98 481 105,490 100,652 95.4%
3/99 500 109,020 102,736 94.2%
9/99 521 113,548 107,445 94.6%
3/00 534 118,869 110,558 93.0%
Source: Residential Market Reports - Apartments March 2000
33
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
~tr"'..'" .........:. APARTMENmy.QeeUJlJ\.NCY.BYvySTlJ1)Y~:A::RE'~;'tY;7i;;'" '. '<1j,\~~t" -
..,..... :..i.. "
RMR STUDY AREA Mar-97 Sept-97 Mar-98 Sept-98 Mar-99 Sept-99 Mar-OO
A. Sanford/Lake Mary 93.8% 95.2% 95.7% 96.1 % 95.4% 95.6% 94.4%
B. Longwood/Altamonte Springs 94.6% 95.1% 94.9% 94.5% 93.2% 95.5% 94.4%
C. Casselberry/Winter Springs/Oviedo 94.9% 95.9% 96.1% 96.3% 92.9% 95.7% 92.6%
D. Apopka 95.8% 97.2% 96.4% 96.6% 93.4% 93.2% 96.1%
E. Winter GardenlOcoee/West Orange 94.8% 94.2% 92.2% 92.5% 95.6% 93.5% 94.2%
F. North Orlando/Winter Park/Maitland 92.5% 94.6% 95.3% 93.7% 93.5% 93.3% 92.1%
G. South Orlando 95.8% 94.6% 95.3% 96.0% 94.9% 95.3% 93.4 %
H. East Orange/UCF 94.6% 96.1% 94.6% 96.6% 94.2% 95.3% 93.4 %
I. South Orange 89.4 % 90.3% 93.8% 95.3% 93.5% 92.2% 88.4%
J. Dr. Phillips/Windermere 94.7% 92.3% 94.1% 93.2% 93.9% 92.9% 92.4%
K. Kissimmee 97.2% 96.9% 96.9% 96.4% 95.6% 93.9% 92.5%
Metro Total 94.7% 94.9% 95.1 % 95.4% 94.2% 94.6% 93.0%
The subject property is located within Study Area "C", which has an excellent occupancy
history as compared to the Metro Total.
Absorption Trends
Historical apartment absorption has exhibited significant variation over the past 15 to 20 years,
experiencing actual declines during the "conversion" years of the late 1970s and early 1980s. The
__ late 1980s exhibited strong periods of absorption, with an average of close to 7,000 units per year
from 1987 to 1990. The absorption rate for apartments in Metropolitan Orlando declined
significantly during the 1990 to 1992 period, as a result of the recession and the Gulf War,
reaching only 1,443 units in the 1990-1991 period and 3,042 in the 1991-1992 period. Annual
absorption during the past several years is shown in the following table.
-
APARTMENT ABSORPTION - GREATER ORLANDO AREA
Time Period Units Absorbed
March 1987 - 1988 7,381
March 1988 - 1989 6,684
March 1989 - 1990 6,845
March 1990 - 1991 1,443
March 1991 - 1992 3,042
March 1992 - 1993 3.966
March 1993 - 1994 1,505
March 1994 - 1995 2,956
March 1995 - 1996 4,276
March 1996 - 1997 4,724
March 1997 - 1998 4.867
March 1998 - 1999 6,378
March 1999 - 2000 7,822
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
Absorption Rates
Tbe following cbart sununarizes tbe absorption rates for recently completed apartment projects
within the subject neighborhood.
C. Casselberry/Winter Springs/oviedo
C. Casselberry/Winter Springs/oviedo
C. Casselberry/Winter Springs/oviedo
C. Casselberry/Winter Springs/Oviedo
C. Casselberry/Winter Springs/oviedo
Stonecastle
Loma Vista
Under Construction
Under Construction
Under Construction
Under Construction
Under Construction
Shadow Creek
Riverwind
Courtney Springs
Tbe following chart sununarizes tbe number and types of units under construction (excluding
tbose units being renovated) as of Marcb 2000, as indicated by ResidentilJl Market Reports for
Apartments.
NUMBER OF UNITS UNDER CONSTRUCTION AS OF MARCH 2000
..
A. Sanford/Lake Mary
B. Longwood/ Alt. Springs
C. Casselberry/Winter Springs/Oviedo
D. Apopka
E. Winter Garden
F. North Orlando/Winter Park/Maitland
G. South Orlando
H. East Orange/UCF
1. South Orange
J. Dr. Phillips/Windermere
K. Kissimmee/St. Cloud
Metro Total
2,085
628
1,382
o
507
1,271
1,719
1,772
1,676
772
1,191
13,003
...
As indicated, approximately 9.2% of all new constrUction is occurring in Area "CO, the
Winter Springs market.
....
New Development
--
The following projects are under constrUction within Trade Area "C" of the Residential
Market Reports Apartment Survey for March 2000.
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
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Market Rate Projects (Study Area C)
1. Stonecastle, a 220 unit project, is under construction on the east side of State Road 436,
south of Howell Branch Road, southwest of the subject property. This project will have a
variety of one-bedroom, two-bedroom, and three-bedroom units. Unit sizes will range
from 760 to 1,330 square feet. Premiums are as of yet undetermined. As of the writing of
the March Survey, rental rates are also undetermined. The projected rental rates are
expected to be comparable to other competing projects, which indicate a likely rental rate
in the range of $1. 00 per square foot.
2. Lorna Vista is a 380 unit project under construction and located along the west side of
State Road 426, north of Aloma Street in Oviedo. This complex is scheduled to have one,
two, three and four-bedroom units ranging from 814 to 1,454 square feet. Premiums are
as of yet undetermined. As of the writing of the March Survey, rental rates are also
undetermined. Rates are projected to be in the range (~f $1. 00 per square foot.
3. Shadow Creek is a 280 unit project under construction and located along the north side of
Red Bug Lake Road; west of Tuskawilla Road in Winter Springs. This complex is
scheduled to have one, two, and three-bedroom units ranging from 634 to 1,345 square
feet. Rental premiums include $150 per month for a unit with a direct access attached
garage, $130 per month for a detached garage, $25 per month for units with a view and a
$25 per month charge for an ent~rtainment center. As of the writing of the March Survey,
rental rates were undetermined. Rates are projected to be in the range of $1.00 per square
foot.
4. Riverwind is a 110 unit project under construction and located along the east side of
Alafaya Trail, north of McCullough Road and the University of Central Florida. All units
are planned with tour-bedrooms and 1,250 square feet. Water, sewer, electric, phone
service, satellite cable TV and continuous high-speed internet service will be included in
the rent. However, as of the writing of the March Survey, rental rates were undetermined.
Rental premiums have also not yet been determined. Rates are projected to be in the range
of $1. 00 per square foot.
-=
5. Courtney Springs is a 252 unit project with 180 units still under construction. This
complex is located along the south side of State Road 419, west of Tuskawilla Road and is
the closest competitor to the subject property. This complex has one, two, and three-
bedroom units ranging from 796 to 1,252 square feet. As of the March Survey, 71 units
were available and 44 units were unoccupied (a 38% occupancy). Rental rates start at $715
for a one-bedroom, $845 for a two-bedroom, and $990 for a three-bedroom unit. Rental
premiums include $10 or $25 per month for a view, $10 or $20 per month for first or
second floor units, $50 per month for a seven month lease and $20 per month for an eight
to eleven month lease.
36
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
6. Oviedo Grove is a 240 unit complex with 120 units still under construction. This complex
is located along the south side of State Road 426, north of the University of Central
Florida, and began construction in 1998. The first Certificate of Occupancy was received
September 30, 1999. This complex offers one-bedroom and one-bedroom with den units,
as well as two and three-bedroom units ranging from 680 to 1,271 square feet. Rental
rates are $640, $735, $820, and $995, respectively. Water and sewer are included.
Premiums are available for lakeview and interior units, as well as for shorter lease terms.
As of March 2000, of the 120 rentable units, 10 were unoccupied resulting in a 92%
occupancy.
Besides these six developing projects, there are a few other established complexes in the
general vicinity. A discussion of these complexes follows.
Mosswood is a 147 unit complex located along the west side of Moss Road, south of State
Road 434 and west of the subject property, which was developed in 1981. Relatively dated by
today's standards, this complex offers efficiencies and one and two-bedroom units ranging
from 288 square feet to 864 square feet. Rental rates for March 2000 were quoted at $425 for
'an efficiency, $515 for a one-bedroom, and $645 for the two-bedroom unit. Rental premiums
include $10 per month for washer/dryer and premiums for a shorter lease term. As of
March 2000, the complex reported a 98 % occupancy.
Alafaya Woods is a 296 unit complex located along the east side of Alafaya Trail, north of the
University of Central Florida, which was developed in 1988. This complex offers two and
three-bedroom units ranging from 1,047 to 1,100 square feet, with rental rates of $740 and
$905, respectively. This project caters to the University student and, as of March 2000,
reported an 85 % occupancy.
Willa Springs is a 368 unit complex located near the southwest corner of Tuskawilla and Red
Bug Lake Roads, developed in 1986. This complex offers one, two and three-bedroom units
ranging from 659 to 1,277 square feet, with rental rates ranging from $615 and $1,020,
respectively. A $10 premium is paid for an upstairs unit or one with a view. This project
reported a 95 % occupancy as of March 2000.
Rental Rate Trends
Rental rates have been increasing in recent years. The average rent increased 2.9% between
1995 and 1996. Continued moderate increases occurred in 1997 and 1998. In 1999, rent
increases were slightly higher, some exceeding 3.5%. This trend is likely to continue for some
time.
The source of this information is a CB Commercial survey prepared by Charles Wayne
Consulting, Inc. The rent in this study reflects "asking rents" for the various unit types for
each time period and does not reflect periodic concessions.
37
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
The following chart summarizes the HUD median income trend for the Orlando MSA:
~>",,~_""~_~"""e'~~tq~ ---;-;;~;;;;;-'-:"lT.,;~"~' ?;;c--;---~ - ~~
1~ 1.~lk':" ~.~.~_.J..'o....j ~~ lJj]JjlilrS:-'o.~H~l~rU~ "I;):.,.."
1988 $31,600
1989 $34,200
1990 $37,500
1991 $38,900
1992 $38,900
1993 $40,000
1994 $40,000
1995 $40,000
1996 $41,900
1997 $43,100
199H )44,:>00
1999 $46.200
Average Compound Increase 10 Years 3.51%
Average Compound Increase I Year 3.82%
Sales Activity Trends
Year to date 2000 (through July 31, 2000), sales information reflects a total of 13 sales
encompassing 2,678 units, for a sales volume of $89,608,400 indicating an average price of
$33,524 per unit. The highest per unit sale price for 2000 belonged to Savannah Grand
Apartments in Winter Park. This sale transpired in April 2000 for a price of $49,609 per unit.
In 1999, of all apartment complexes within the four county MSA with a minimum of 50 units,
there were 15 apartment sales involving 3,615 total units, for a total sales volume of
$182,448,800, or $50,428 per unit. The highest price paid on a per unit basis, according to
this survey, was Bristol Place at Metro West, with a reported sale price of $27,500,000 for
328 units, indicating an average price per unit of $83,841.
The year 1998 reflected a total of 47 sales encompassing 9,468 units, for a sales volume of
$376,800,271 indicating an average price of $39,797 per unit. The highest per unit sale price
for 1998 belonged to Sabal Club in Longwood. This sale transpired in July 1998 for a price of
$87,729 per unit.
38
P~IMIS, Inc.
The Direct Source For Property Information
File No. 11141
In 1997, we tracked 43 sales involving 9,633 units, for a sales volume of $345,338,800, at an
average record price of $35,850 per unit. In addition, a new record price per unit was set by
the $80,911 per unit December sale of the Barclay Place Apartments located within Heathrow.
Both 1997 and 1998 include all complexes. It should be understood that a number of sales in
1997, not a great many, but several included units less than 100.
Although 1996 was a robust year with 43 sales involving 9,454 units, the average per unit
price was only $32,615, indicating a 10% increase in 1997. One of the causes for the per unit
increase was the mix of units sold, as a greater proportion of new units sold in 1997. In 1996,
the units built after 1989 accounted for 1,020 of the units sold, and in 1997, units built after
1989 accounted for 1,918 of the units sold. The average unit price for units built after 1989
increased 5% from $59,314 in 1996 to $62,245 in 1997. Also, the average unit price for units
built between 1980 and 1989 increased 19% from $37,082 in 1996 to $44,086 in 1997, but the
average unit price for product built prior to 1980 remained flat between 1996 and 1997.
Financing Trends
The market rate apartment developers are finding that the credit crunch of the early to mid
1990s has disappeared and new sources, such as REITs, have emerged. Re-entering the
financing market are insurance companies and pension funds. Bank financing is readily
available for developers with sufficient equity. The result of this recent wave of public and
private sources of capital is a "mini-boom" of new construction of apartment complexes
throughout Orlando. Experts predict a steady flow of new inventory throughout Greater
Orlando over the next few years.
Conclusion
The Orlando area's apartment market is strong. Overall occupancy is expected to remain in
the mid 90s, with proposed new construction being absorbed into the market within a year or
so. The increased supply is not expected to adversely affect rental rates, as moderate increases
of 2% to 3% are expected to continue. Sales of existing apartments remain steady and are not
expected to be much higher in 2000, due to the lack of available product. However, investor
interest (REITs, pension funds, etc.) is strong, especially for newer upscale/luxury projects.
39
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
NEIGHBORHOOD DATA
A neighborhood is defined in terms of common characteristics. trends, and groupings of
similar or complementary land uses. The boundaries of the subject neighborhood are roughly
defined as Lake Jessup to the north, Almoa A venue to the south. Alafaya Trail to the east, and
State Road 419 to the west. These boundaries encompass a large portion of east Seminole
County, an area considered in transition. The transition is from very low-density residential
and largely rural agricultural land uses to a mainly residential area with several significant
employment centers.
The subject property is located off the north side of State Road 434 and accessed via the
Central Winds Park entrance road to the west of Tuskawilla Road. Relative to significant
landmarks, the subject property's location is three miles west of the Central Florida
GreeneWay, six miles northwest of the University of Central Florida, and 11 miles northeast
of the Orlando downtown business district.
Access - Transportation
Major roadways servicing the subject neighborhood are Tuskawilla Road, Aloma Avenue,
State Road 434 (Alafaya Trail), Red Bug Lake Road, and the eastern extension of the Central
Florida Greene W ay.
The Central Winds Park Entrance Road, is an unnamed roadway commonly referred to as
Central Winds Park Road. This is the roadway on which the subject property fronts. It is a
two lane road that currently provides access to Winter Springs High School, the Central Winds
Park and the subject property.
Tuskawilla Road originates at State Road 434 and terminates at State Road 426, five miles
south. Tuskawilla Road is undergoing construction to be widened to four lanes in its entirety
by Seminole County. The 3 1/2 year project is in its final stages. Construction has been
completed on the first segment, between Aloma A venue and Red Bug Lake Road. The second
segment, between Red Bug Lake Road and Lake Drive, was recently completed. The final
segment, between Lake Drive and State Road 434. is under construction and expected to be
completed and open during the first quarter of 2001.
Aloma Avenue (State Road 426) provides a linkage to employment and supporting services for
the subject neighborhood. Aloma Avenue is a two-lane road west of the Central Florida
GreeneWay and has been widened to four lanes east of the GreeneWay. State Road 426
intersects with the GreeneWay one mile east of Tuskawilla Road and provides direct access to
Winter Park, an entertainment and employment center for Orlando.
40
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
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State Road 434 (Alalaya Trail) is the most important north-south artery in the eastern portion
of the subject neighborhood. State Road 434 bends 900 at the northern edge of the city of
Oveido and travels in an east-west direction through the city of Winter Springs. Four lanes
were added to this two-lane road from just north of University Boulevard south to State
Road 50, a three mile stretch, which includes entrances to the University of Central Florida
and Central Florida Research Park. The $7,800,000 project was completed in the fall of 1991.
Also, a third lane was added to portions of the road north of the university, including the
intersection with McCulloch Road. The road serves as a commuter route for employees of the
Siemens-Westinghouse Corporation, and Lockheed Martin Information Systems Center.
-
The portion of State Road 434 between Tuskawilla Road and State Road 419 was also widened
from two to four lanes, and the most recent segment to be widened was from Tuskawilla Road
to the Central Florida Greene W ay . The next segment to be wi<;lened is that section from
Mitchell Hamm<?ck Road to University Boulevard.
..
.
Red Bug Lake Road is a four-lane, median divided road traveling in an east-west direction
between State Road 436 to the west and State Road 426 to the east, where it becomes Mitchell
Hammock Road, which extends to Lockwood Boulevard. Red Bug Lake Road has a full-
service interchange with the Central Florida GreeneWay, approximately three miles east of
Tuskawilla Road.
wi
.
The Central Florida Greene Way will eventually encompass the Orlando Metropolitan Area,
with a circumference of approximately 100 miles. The eastern extension of the GreeneWay,
from its intersection with Aloma A venue, runs northeasterly parallel and west of State
Road 426, east of Winter Springs and west of the city limits of the city of Oveido, across Lake
Jessup and terminating in the city of Sanford.
..
Employment
..
II!'
Central Florida Research Park, a cooperative venture between the University of Central
Florida and the Orange County Research and Development Authority, is considered one of the
top 10 research parks in the county. The 1,027 acre park is located on the south side of the
University of Central Florida and currently employs approximately 5,500 people in more than
82 companies. It is modeled after The Research Triangle in North Carolina, and its purpose is
to attract high technology industry to the university-related research park, through which a
symbiotic relationship can be developed.
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PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
,.:e
The University of Central Florida is a four-year state university with an enrollment of
approximately 31,000 students, making UCF the fastest growing of the nine state universities
in Florida. On-campus housing is available for only a small percentage of enrolled students
and, therefore, the remaining students must seek housing off-campus. This factor originally
tended to make the University of Central Florida a commuter school; however, the
development of numerous apartments along Alafaya Trail and University Boulevard has largely
changed that. The university is situated on 1,700 acres and employs approximately 3,400
people.
The Quadrangle is another major office/research development located on the north side of
University Boulevard and the west side of Alafaya Trail. It is a 465 acre, high technology,
corporate business center which is still in the process of being developed. The anchor tenant is
the Siemens-Westinghouse Steam Turbine Generator Division World Headquarters Complex, a
257,000 square foot facility situated on a 90 acre parcel. This project alone has 1,800
employees. Approximately 2.5 million square feet of office and specialty commercial space
are planned for The Quadrangle as a whole.
Lockheed Martin Corporation is the largest industrial firm in the Orlando area. The 700,000
square foot eastern plant, with its Information Systems Division, now employs approximately
1,500 workers. It is located on the south side of Lake Underhill Road, just west of State
Road 434.
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International Corporate Park is a 2,900 acre commercial/business park located four miles
west of Dallas Boulevard. Located on both sides of the Beeline Expressway, approximately
740 acres has been developed for industrial use, including roads, water, and sewer.
~---
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The Orlando International Airport is located just outside the subject neighborhood, west of
Alafaya Trail, representing the greatest impact for growth in southeast Orange County. This
airport is currently ranked 16th nationally and 22nd in the world for the number of passengers
carried. Present facilities include 99 gates, with parking facilities for over 19,000 vehicles.
The Orlando International Airport served 29,203,165 passengers in 1999, an increase of about
5.06% over 1998. Domestic travel increased 4.6% to 26,905,074, and international travel
increased 10.3% to 2,298,091.
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Other developments in the area include:
~
The Orlando Utilities Commission Stanton Energy Center, located at the
southern terminus of Alafaya Trail, is a coal burning power plant which
provides a major portion of Orange County's electrical power needs.
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
The Orange County Landfill is located west of the Orlando Utilities
Commission power plant, with access provided by Young Pine Road.
The Orange County Eastern Service Area Wastewater Treatment Facility IS
located west of Alafaya Trail and due north of the Orange County Landfill.
The Orange County Correctional Facility is located on the north side of the
Martin Andersen/Beeline Expressway, three miles west of the Dallas Boulevard
exit ramp.
Retail Development
The subject neighborhood is serviced by four retail centers, three of which are located at the
intersection of Red Bug Lake Road and Tuskawilla Road. The fourth is located at the
intersection of Aloma A venue and Howell Branch Road.
Recent Retail Development
. Oviedo Crossings is a 500 acre project which includes about 350 acres of
commercial uses and is located on the north side of Red Bug Lake Road, west of
State Road 426.
. The Marketplace at Oveido Crossings, a 1.2 million square foot regional mall,
which opened in 1998, includes 800,000 square feet, with Dillard's as an
anchor. Sears and Burdines will be opening soon. Regal Cinemas has a 24
screen cinema on an out parcel.
. Riverside Landings is an 83,400 square foot neighborhood shopping center
located at State Road 419 and Lockwood Road, anchored by a Publix and a
Blockbuster store.
. Kash N Karry anchors a neighborhood shopping center on State Road 434,
between Tuskawilla Road and the Central Florida GreeneWay.
. Walgreen's drug store, located at the northwest corner of State Road 434 and
State Road 419, is currently under construction.
=-
43
.~
.
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
~
...
Proposed Retail Developments
..
. James Door & Co. has proposed a Publix anchored neighborhood shopping
center on the north side of State Road 434, at Tuskawilla Road as part of the
Winter Springs Town Center.
.
.
Residential Developments
.
. Accerding to' the most recent Proposed Development Report, published by
Charles Wayne Consulting, five custom develepments have recently been
cempleted within the subject neighborhoed. Seville Chase is a 110-let custom
develepment situated on a 102 acre site located at the seutheast quadrant ef
Fisher Read and Panama Road, in Winter Springs. The minimum let size is
100' x 130', indicating a development density ef 1.38 units per acre.
Imprevements include two gated entries and perimeter wall. The tetal units
built and under construction since its inception in 1996 is 23.
j
..
~
. Wentworth is a 39.1-acre parcel located on the east side ef State Road 426,
seuth of Chapman Read. This site has recently been develeped with 59 single-
family lots with a minimum size of 90' x 105'. There are no en-site amenities.
.
.
. St. John's Landing is a 31 lot subdivision lecated en the nertheast corner ef
Tuskawilla Road and Orange Avenue. Ten homes have been built, and 21
vacant lots remain.
~
. Tuck's Knoll is a 15.9 acre parcel located on Dedd Read, seuth ef Red Bug
Lake Read. This site has been developed with 12 single-family lets with a
typical size ef 90' x 130'. There are no en-site amenities.
. Stonehurst is a 25.6 acre parcel located en Tuskawilla Read south ef Red Bug
Lake Road. This site is being develeped with a 48 let, single-family subdivisien
with a typical let size ef 100' x 150'.
. Parkstone is a significant single-family production heme subdivisien within the
subject neighberheed currently being develeped by Centex Hemes. Phase I
includes the develepment ef 142 single-family hemes en a 76.4 acre parcel.
This develepment is lecated en the nerth side ef State Read 434, between State
Read 419 and the subject preperty.
44
PRIM IS , Inc.
The Direct Source For Property Information
File No. 11141
Multifamily Development Within The Subject Submarket
The Courtney Springs Apartments are the newest apartments in the subject sub market , which
consists of the Casselberry/Winter Springs/Oveido area known as Submarket "C" in the
Residential Market Reports For Appraisers prepared by Charles Wayne Consulting. Courtney
Springs is located on the north side of State Road 434 just east of Tuskawilla Road. This
complex contains a total of 252 units and construction was just finished in the spring of 2000.
Shadow Creek is located on the north side of Red Bug Lake Road, just west of Tuskawilla
Road. This complex was just completed during the first quarter of 2000 and contains 280
apartment units.
45
PRIMIS, Inc '.
The Direct Source For Property Information
File No, 11141
The following is a summary of all apartment complexes in the subject submarket:
SUBMARKET "c' APARTMENTS
.,C1}f';:~ ,:j::Yea ~~,'
"';'I':,':'!{~ 'f'Buil eh'2'"
Seville on the Green 1986 170 $660 - $985
Golf Terrace 1986* 469 $545 - $929
Mosswood 1981 * 147 $425 - $645
Hidden Pines 1981 56 $529 - $639
Oxford Square 1986 283 $585 - $685
Sandpiper 1975* 196 $495 - $765
Cypress Springs 1973 268 $495 - $670
Regency Oaks I 1969* 239 $500 - $815
Spring Tree Village I Rollingwood II 1979* 104 $350 - $550
Savannah Trace 1985 160 $565 - $805
Willa Springs 1986* 368 $615 - $1,020
Reflections 1983 * 336 $540 - $740
Red Lion 1974 115 $395 - $545
Stratford Square 1973 204 $520 - $745
Sorrento 1971 285 $370 - $650
Signal Pointe 1970* 368 $520 - $795
Sedgefield 1972* 111 $430 - $730
San Jose 1972 121 $460 - $650
Birchwood Landing 1972* 184 $495 - $595
Semoran North 1969* 348 $525 - $705
Branchwood 1981 117 $429 - $645
Howell Branch Station 1968* 367 $490 - $955
Regency Oaks II 1968 104 $510 - $810
SUllshadow 1988 * 384 $5 15 - $630
Alafaya Woods 1988* 296 $740 - $905
Newport Colony 1990* 476 $590 - $940
Chatham Pines at Woodcreek 1990* 208 $595 - $990
The Harbor at Lake Howell 1990* 408 $675 - $962
Castle Woods 1992* 304 $507 - $675
Northgate Lakes 1997* 195 NUA $1,580
Summer Club 1998 294 $645 - $995
Barrington Place 1998 233 $705 - $990
Oviedo Grove 1998 240 $640 - $995
Courtney Springs 1999 252 $715 - $990
Riverwind 1999 110 NUA - NUA
Shadow Creek 1999 280 NUA - NUA
Lorna Vista 2000 380 NUA - NUA
Stonecastle 2000 220 NUA - NUA
. Subsequent renovations
Notes: NUA - No units available.
Some rents and occupancies have changed since the date of the survey, March 2000.
Source: Residential Market Reports. Charles Wayne Consulting, Inc.
46
$0.66 - $0.76
$0.60 - $0.86
$0.75 - $1.48
$0.74 - $0.92
$0.64 - $0.70
$0.57 - $0.88
$0.56 - $0.95
$0.39 - $0.85
$0.64 - $1.22
$0.83 - $1.10
$0.77 - $0.93
$0.69 - $1.17
$0.53 - $0.75
$0.53 - $0.66
$0.46 - $0.78
$0.63 - $1.00
$0.58 - $0.96
$0.48 - $0.53
$0.73 - $0.82
$0.52 - $0.67
$0.74-$1.51
$0.53 - $0.91
$0.59 - $0.71
$0.64 - $0.72
$0.71 - $0.82
$0.75 - $0.90
$0.84 - $1.03
$0.72 - $0.82
$0.56 - $0.63
NUA - $1.28
$0.78 - $1.04
$0.73 - $0.91
$0.78 - $0.94
$0.79 - $0.90
NUA - NUA
NUA - NUA
NUA - NUA
NUA - NUA
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81%
98%
95%
98%
95%
94%
97%
93%
93%
95%
92%
99%
99%
100%
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99%
98%
92%
99%
93%
80%
97%
94%
85%
89%
94%
92%
92%
100%
935
97%
92%
38%
NUA
NUA
NUA
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PRIM~~, Inc.
The Direct Source For Property Information
File No. 11141
Of the 38 complexes in the neighborhood, 13 have been built since 1990 and two of the older
complexes completed expansions in the 1990s. The oldest properties in the neighborhood are 32
years old. The area also offers a wide range of rents, from older affordable and subsidized
apartments, to higher end lakefront units. Occupancies are generally high and rents are
increasing. Because the neighborhood has ample vacant land, future competition from new
apartments is probable.
47
AERIAL MAP
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48
TAX MAP LOCATION
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
SITE DATA
The following description of the subject site is based on our inspections, aerial maps, tax
maps, data in Public Records, and other sources referenced.
Location
The subject property is located off the north side of State Road 434 and accessed via the
Central Winds Park entrance road, Winter Springs, Seminole County, Florida. The Central
Winds Park entrance road is a two-lane roadway that leads to Winter Springs High School,
Central Winds Park and the subject property. The Central Winds Park entrance road runs
along the eastern boundary of the subject property and terminates near the subject's southeast
comer.
Access
Due to the realignment of State Road 434, the only access to the subject property is the spur
leading from the new alignment of State Road 434 to the old State Road 434 road bed. The
western edge of the subject property cannot access the new State Road 434 alignment.
However, as a result of a settlement in a litigation suit, the subject property has been granted
two access points from the new State Road 434 alignment approximately 200 feet from the east
and west boundary lines of the subject property.
Area and Dimensions
Surrounding Uses
To the north and east is the Central Winds Park which contains a variety of playing fields,
playgrounds and recreation areas. A rails-to-trails project runs along the south boundary of the
park and the subject property. To the west is vacant land zoned A-I, which is under the
ownership of Seminole County, and to the south is the Central Winds Park entrance road. On
the opposite side of the Central Winds Park entrance road lies a triangular parcel which fronts
State Road 434.
We were not provided with a survey of the subject property. According to the information
contained in the Public Records, the subject property contains 26.070:t acres. However, the
real estate Purchase Agreement for the subject shows a size of 27.3 acres. We have relied on
the 27.3 acre size as set out in the Purchase Agreement. Should a subsequent survey reveal a
different size, we reserve the right to adjust our value estimate accordingly (see "Special
Limiting Conditions"). The subject property is irregular in shape and has frontage on the north
side of the Central Winds Park entrance road.
50
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
Topography and Drainage
The subject property is generally flat and is currently heavily treed and appears to be well
drained. It should be noted that, due to the dense nature of the subject's vegetation, we have
relied upon aerial maps, as some areas were difficult to access. We assume no responsibility
for hidden or unapparent conditions beyond the area of our expertise as appraisers (see Item 6
of "General Assumptions").
Soil and Subsoil
A visual inspection of the surface of the site indicated no unusual soil or subsoil conditions
which would result in reduced load bearing capacity, atypical drainage conditions, or other
conditions which would result in excessive site preparation costs. However, we assume no
responsibility for hidden or unapparent conditions beyond the area of our expertise as
appraisers (see Item 6 of "General Assumptions").
Flood Hazard Statement
According to Flood Insurance Rate Map, Community Panel No. 1202890135 E for Seminole
County, as prepared by the Federal Emergency Management Agency and dated April 17,
1995, the subject is located in Zone X, which is not a designated flood zone.
Utilities and Services
Water:
Sewer:
Electricity:
Telephone:
Police:
Fire:
Schools:
Not currently available
Not currently available
Florida Power Corporation
Sprint
City of Winter Springs
City of Winter Springs
Keith Elementary, Indian Trails Middle,
Winter Springs High
According to Kipp Lockcuff with the utilities department, the nearest water line is located'
along the eastern property line. The nearest sewer line is located near the southwest corner of
the Winter Springs High School property (700:1: linear feet).
Mr. Lockcuff stated that a lift station at an estimated cost of $75,000 would be needed in order
to provide sewer to the subject site. Furthermore, the cost of the sewer line is estimated at
$20.00 per linear foot, or $14,000, for a total of $89,000. To this amount we add an
additional $11,000 for soft costs, for a total cost of $100,000 to bring sewer to subject site.
51
PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
Assessment and Taxes
..
The subject is assessed by Seminole County as follows:
.
Tax I.D. # 26-20-30-5AR-ODOO-OO 10
Assessed Value $567,805
Taxable Value (Agricultural Exemption) $4,604
Millage Rate 18.6884
Subject Tax Burden w I 4 % Early Payment $82.60
Discount
.
.
Zoning and Future Land Use
The subject was recently rezoned and included under the Town Center District Code for the
City of Winter Springs. Furthermore, the city amended the comprehensive plan designating
the subject property's future land use as "Town Center."
-.
In February, 1998, the City of Winter Springs created a plan for the town center through a
design session involving the community and a team of design professionals. Traditional urban
design conventions have been applied to create a palette of squares, parks, and street types that
form the framework for the Town Center.
The goal in changing the subject's, as well as surrounding parcels', zoning and land use plan is
to create a Town Center, based upon traditional design standards for development that will
become the identifying focus of the city's downtown. The primary and fundamental purpose of
the Town Center is to create a place where people can reside in a mix of single and multiple
family dwellings, and also gather to shop, relax, recreate, be entertained, attend community
events, and enjoy the natural beauty of lands located in the Town Center. The Town Center
will be created through public and private investment and development.
J
The Town Center District Code allows for the development of a wide variety of commercial
and residential developments, which includes multifamily residential. Any proposed
developments are subject to review and approval by the Development Review Committee.
Furthermore, all development is subject to the Comprehensive Plan of the City of Winter
Springs.
The Comprehensive Plan states that high residential density shall be permitted in the Town
Center through the adoption of land development regulations, but such density shall not exceed
thirty-six (36) units per acre. Furthermore, the floor area ration shall not exceed three (3.0)
without structured parking and six (6.0) with structured parking and shall not exceed six (6)
stories in height.
52
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
Tn~ t;ity will create a minimum mix of land uses in the Town Center as follows:
a) Retail" 30% to 60%;
b) ConuncrcialOffice = 10% to 30%; and
c) Rcsidential = 30% to 60%.
Concurrency
The 1985 AmelKhuents to Chapter 165, Floridll Statues, require local governments to adopt
comprehensivc laud use plans that must include adopted levels of service for seven types of
public services alld facilities, including roads, mass transit, sanitary sewer, stonn waters,
potablc water. SlIlid waste, and parks and recreation. Chapter 163 also prohibits local
governments from issuing development pennits if lbe developments' impact would cause levels
of service to fall helow the adopted levels. In olber words, lbe availability of public facilities
must be concurrent with the impact of development.
The current rules of concurrency require local governments to adopt a concurrency
management system to ensure that adopted levels of service are maintained for the seven types
of public infrastructure, if applicable. The rule sets forth minimum requirements for lbe
concurrency m'"lllgement system. The administrative rules for concurrency have been a topic
"f discussion liver the past few years. The latest version of the rules provides that lbe point of
determining concurrency compliance is prior to the approval of a development permit or order
which contains a specific plan for development, including densities and intensities of
development. Ilowever, the rule only sets forth the minimum required. Local governments
may still rcquire concurrency reviews at other times, and with greater restrictions than those
mandated hy the state.
Obviously, the definition. of concurrency becomes critical. The Secretary of the Florida
Department of Community Affairs has stated lbat the following will satisfy lbe concurrency
reqUirement:
1) Adequate infrastructure is in place at the time a development permit is
ilumed, or a development permit is issued subject to the condition that the
adequate infrastructure will be in place when the impact of the
development necessitates mitigation;
-
2) Adequate infrastructure is under construction at the time the development
permit is issued;
3)
Adequate infrastructure is provided for in a binding construction contract
executed by or before the time the development permit is issued;
~
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53
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
4) Adequate infrastructure has been specifically listed in the local
government capital improvement plan and budget at the time the
development permit is issued, though the infrastructure has not yet been
contracted for construction.
The issue of concurrency would affect the subject property only to the extent that any future
expansion which may be contemplated would require a concurrency review. For purposes of
the appraisal, we are assuming that the property is in compliance with concurrency; however,
we assume no responsibility for the cost of such determination and our appraisal is subject to
revision if the property is not in compliance.
Hazardous Substances
No hazardous or toxic materials were observed and none came to our attention; however, we
are not experts in these matters and assume no responsibility in these regards. Please refer to
Item 11 of the "General Assumptions" of this appraisal for a full disclaimer.
Impact Fees
Impact fees will be charged at the time the subject is developed and are not included in our
analysis. The subject is undeveloped land, thus no impact fee credits are available.
Site Conclusion
Based upon our review of the subject site layout and access features, it is our opinion that the
subject is well suited for development with a multifamily use. The subject is located in a
rapidly growing area with good transportation linkages to employment centers throughout the
Orlando Metropolitan Area.
The subject neighborhood is in transition from rural/agricultural uses to residential uses with
supporting services. Commercial use properties and properties designated for commercial use
are located along State Road 434, in close proximity to the subject, which will provide needed
services for the residential development. Several new single-family subdivisions are active and
recent multifamily residential apartment complexes have been successfully developed in the
immediate subject neighborhood. Plans for the new Winter Springs Town Center should create
an increase in demand for commercial and residential properties in the subject neighborhood.
54
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
HIGHEST AND BEST USE ESTIMATE
Highest and best use may be defined as that reasonable and probable use which supports the
highest present land value as of the date of appraisal.
The estimate of highest and best use for a property is selected from a group of alternative
potential uses. The highest and best use is physically possible, legally permissible, financially
feasible and maximally productive.
The highest and best use analysis first determines the highest and best use of the subject as
though vacant. This analysis results in the conclusion of what would be the "ideal"
improvement to the subject land. The existing or proposed improvements are then compared
to this "ideal" improvement in order to conclude the highest and best use as improved or
proposed.
HIGHEST AND BEST USE - AS VACANT
Physically Possible
Physical characteristics such as location, size, shape, topography, etc., influence the physically
possible uses of the subject land. The subject is primarily rectangular in configuration and is
of an adequate size to support a variety of potential uses. The physical limitation placed upon
the subject is limited visibility from a major roadway. The subject will have two access points
from State Road 434 allowing adequate access; however, the subject lacks the exposure
necessary for a commercial use. In its favor, the subject is located adjacent to Central Winds
Park, which features a variety of playing fields, playgrounds, nature walks and bike paths.
Proximity to the park is considered an amenity for residential development. Therefore, we are
of the opinion that, physically, the subject site is best suited for residential (single-family or
multifamily) development.
Legally Permissible Uses
As previously mentioned, the subject property falls under the Town Center land use
designation on the City of Winter Springs Comprehensive Land Use Plan. This designation
permits residential development up to 36 dwelling units per acre and/or a variety of
commercial uses. However, as discussed above, we are of the opinion that a commercial use
is not likely on the subject property due to its lack of exposure from a major roadway.
Ii
55
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
Economically Feasible Uses
Strictly speaking, a use which produces any positive overall return, be it cash flow or internal
rate of return (IRR) , is financially feasible. Therefore, the financially feasible analysis
involves the study of the supply, demand, income potential and similar factors. Residential
development was previously considered the most likely physical and legal use of the property.
The subject property is physically and legally well suited for residential development of some
type. In determining the type of residential development which would provide the greatest
return to the subject land, we have reviewed development patterns and market demand in the
subject market.
Within the Apartment Market Overview section of this report, we discussed in detail the
current multifamily housing trends within the metropolitan area and the subject's submarket.
We conclude that, at this time, there is an existing demand for multifamily residential
development. We also conclude that the existing supply of this type of housing product is at a
level where development is economically feasible. Occupancy rates in the subject sub market
are high and we are of the opinion that the proximity of the subject to the Central Winds Park,
highly rated area schools, and good transportation linkages would favorably affect the
marketability of the subject site for multifamily use. The development of the Winter Springs
Town Center would also have a positive effect on the marketability of an apartment complex.
The 34 apartment complexes in the subject submarket that we surveyed show a range in density
from 6.3 dwelling units per acre to 20.9 dwelling units per acre with an average of 13.6
dwelling units per acre. Most of the complexes at the higher end of this range are complexes
that were constructed in the early 1970s. There were six complexes constructed during 1998
and 1999. Of these six complexes, the number of dwelling units ranged from 6.3 to 16.9 with
an average of 19.85. Land sales used in the Sales Comparison Approach of this report were
purchased for the development of apartment complexes with densities ranging from 12.91 units
per acre to 24.0 units per acre, with an average density of 17.78 units per acre.
Therefore, we conclude that, although the subject's land use designation allows for the
development of 36 dwelling units per acre, it is unlikely that a potential developer would
consider developing the site to the maximum number of units legally permissible. In order to
develop the site with 36 dwelling units per acre, a parking structure would be necessary. In
the subject market, this would not appear to be economically feasible. This is demonstrated by
the current Purchase Agreement for the subject property which states that the developer was
seeking approval to develop the site with 18 dwelling units per acre.
..
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56
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PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
Although 18 dwelling units is above the average number of dwelling units per acre for
properties in the subject submarket, it is within the range of the complexes surveyed and is
closely supported by the proposed developments in the subject area as indicated by the land
sales. Furthermore, we believe that, as part of the Winter Springs Town Center development,
an apartment complex with a number of dwelling units per acre near the higher end of the
range could be successful. Therefore, we estimate that an apartment complex with
approximately 18 dwelling units per acre would be economically feasible on the subject site.
Maximally Productive Use
The maximally productive use of the site is that use which results in the highest value to the
land. The maximally productive use of the subject site is that use which can take full
advantage of the subject's good physical and legal characteristics for residential development.
The specific characteristics of the subject site, Le., proximity to transportation linkages,
employment centers, schools, and recreational facilities, are well suited for both single-family
and multifamily residential uses; however, multifamily use provides a higher return to the
land. Therefore, multifamily use is considered to be the maximally productive use.
Conclusion - Highest and Best Use As Vacant
Therefore, as a result of the physical, legal, and economic factors relative to the subject site,
we believe the highest and best use would be for multifamily residential development, most
likely with the development of approximately 18 dwelling units per acre. More specifically,
we are of the opinion that the subject site is ready to be put into production in the near future.
The most probable purchaser of the subject property is a developer of apartment complexes.
57
PRIMIS, Ioe.
The Direct Source For Property Information
File No. 11141
MARKETABILITY IEXPOSURE ANALYSIS
As an additional consideration, we have estimated a reasonable exposure time for the subject
property. We have analyzed transactions involving properties similar to the subject and
discussed aspects of the market with various active participants, including brokers, developers,
and property owners.
. Who would purchase the subject property?
In the "as is" state, the subject property is marketable to a developer of
multifamily or single-family residential uses. As previously discussed, although
the subject is legally and physically suited for development with a commercial
use, the visibility of the site is not conductive to this type use. A multifamily
use provides the highest return to the land and is, in our opinion, the highest and
best use of the site.
. What are the property's marketing advantages?
The subject is located in the newly created Winter Springs Town Center
District, which has a positive effect on the subject's appeal and marketability.
Several new developments will be located in close proximity to the subject. The
subject is located adjacent to the Central Winds Park which offers numerous
recreational amenities. In addition, the subject is located in close proximity to,
and is served by, a well regarded school district. Occupancy rates in the subject
neighborhood are high and there are few new complexes with modern amenities,
which could create a market niche for the subject as developed.
· What are the property's marketing problems?
The subject has been granted two access points from State Road 434; however,
visibility is limited. Adequate signage could compensate for the limited
visibility. Additionally, the subject is not located on a public bus line. We
spoke with representatives of Lynx transportation system, who states that they
do not provide bus service to the Winter Springs area. Traditionally, apartment
sites have been located on or near established bus lines; however, as more and
more apartment residents are relying on private transportation, we believe that
the subject will not be adversely affected by this factor.
58
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PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
. What are the external influences on the subject's marketability?
The apartment market in the Orlando Metropolitan Area has seen significant
sales activity and new construction. However, it is our estimation that the
demand for multifamily housing units exceeds supply and that neW constrnction
of apartment complexes is not in a state of overbuilding.
.
What is the subject's competition?
We are aware of one 120 acre development site at the northeast corner of State
Road 434 and Tuskawilla Road. This is in the Town Center and has multifamily
potential.
What do market participants consider to be a reasonable exposure perlod1
The marketability of the subject property and similar properties haS been
discussed with active market participants. This analysis indicates a likely
exposure perind of less than 12 months for a competitively priced site, as
investors are actively seeking quality apartment sites.
'Ii
.
..
f'J
'"'"'
T'I
Conclusion
The subject's marketability as a multifamily site is considered to be average to good. Had the
subject property been placed on the market prior to the date of valuation, we are of the opinion
that the property would bave had to be exposed 12 months or less in order to culminate in a
sale at the value estimated herein.
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
APPRAISAL PROCES
There are three traditional approaches normally used by appraisers in the estimation of market
value. These three approaches analyze data from three market perspectives. In order to
estimate the "as is" market value of the subject property, we have utilized the Sales
Comparison Approach, the only applicable approach for valuing vacant land.
The Cost Approach is the sum of the land value and the cost new of the improvements less
accrued depreciation. The Cost Approach is based upon the premise that an informed, rational
investor/purchaser would pay no more for an existing property than it would cost to reproduce
or replace a substitute property with the same utility without undue delay. Since the subject is
vacant, the Cost Approach is not applicable.
The Income Capitalization Approach is based upon the premise that a prudent investor would
pay no more for the subject property than he would for another investment with similar risk
and return characteristics. Since the value of an investment can be considered equal to the
present worth of anticipated future benefits in the form of dollar income or amenities, this
approach estimates the present value of the net income that the property is capable of
producing. This amount is capitalized at a rate which should reflect risk to the investor and the
amount of income necessary to support debt service for the mortgage requirement. We have
not employed the Income Approach, as the subject is vacant land.
The Sales Comparison Approach is the process for comparing prices paid for properties
having a satisfactory degree of similarity to the subject property, adjusted for differences in
conditions of sale, market conditions, and physical characteristics. This approach is based
upon the principal of substitution, which implies that a prudent purchaser would not pay more
to buy a property than it would cost to buy a comparative substitute property in a similar
location. We have utilized the Sales Comparison Approach in order to estimate the market
value of the subject property in its "as is" condition, essentially vacant land._
60
-
.
PRIMIS, Inc.
'The Direct Source For Property Information
File No. 11141
SALES COMPARISON ApPROACH
61
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
SALES COMPARISON APPROACH
The Sales Comparison (Market) Approach involves direct comparison of the property being
appraised with similar properties that have sold in the recent past. It is based upon the
principal of substitution, which implies that a prudent investor will not pay more to buy a
property than it would cost to buy an equally desirable substitute property.
Our survey of comparable properties indicated that multifamily parcels, such as the subject,
within the Orlando area market are typically developed into multifamily use (most likely
apartments) by an investor or group of investors who will operate the apartment complex
during their projected holding period.
In our search for comparable land sales, we concentrated our search on developments In
markets considered to be reasonably similar to the subject market area.
Land Value Estimate
In estimating the "as is" market value of the subject property, we have researched multifamily
land sales throughout the Orlando area, with the most comparable sales analyzed. Detailed
information regarding each sale is included in the sale write-ups on the following pages,
followed by a summary table and an explanation of the adjustments.
We have concluded the subject's land value on a per unit basis, as is typical in this market.
.
.
.
..
.
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62
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63
Page 1
-
!!"'"
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
17136
11151
LAND SALE 1
LOCATION
This property is located on the west side of Aloma
Avenue (State Road 426), approximately 1/4 mile north of
Dean Road, in Oviedo, Seminole County, Florida. The
site abuts the northeast side of Barrington Place
apartments.
LEGAL
DESCRIPTION
Lengthy legal description retained in appraisers' files
TAX I.D.
31-21- 31-300-00 1 E-OOOO
GRANTOR
Charles W. Clayton, Jr., et al
GRANTEE
Seminole Co Lorna Vista Partners, Ltd.
SALE DATE
March 24, 1999
SALE PRICE
$2,070,000
FINANCING
Cash to Seller
VERIFICATION
With
David Stimmel, Grantee
Cole W. Clayton, Grantor
RECORDED
O.R. Book 3616, Page 1331, Seminole County, Florida
DESCRIPTION
Site
This site is irregular in configuration, with 1,000:t feet of
frontage along the west side of Aloma A venue and 8oo:t
of frontage along the east side of the Central Florida
GreeneWay. The site contains an overall 26.78:t acres,
with approximately 7.13 acres encompassing a pond
located in the west central portion of the site. The usable
acreage is, therefore, estimated to be 19.65:t acres. The
site is approximately level and at road grade with both
64
PRIMIS, Ine.
The Direct Source For Property Information
File No. 11141
17136
11151
LAND SALE 1
(Cont'd)
DESCRIPTION
Site (Cont'd)
frontage roads. All utilities were reported to be available
and no prepaid impact fees were included as part of this
transaction. Access is to come from the frontage along
Aloma Avenue.
PROPOSED USE
Development of a 300 unit three-level apartment complex
called Aloma Vista.
ZONING
PUD, Seminole County
COMMENTS
As of November 2, 1999, site work had commenced. This
parcel was part of a larger parcel that, as a result of this
sale, was subdivided. No brokers were reported to be
involved in the transaction. The sale did, however,
include $400,000 (50%) which was escrowed by the
sellers for traffic flow improvements along Aloma
Avenue. Therefore, the total consideration was reported
to be $2,470,000.
Project amenities will include a 'pool, tennis courts, and
clubhouse. The indicated density is 15.27 units per acre.
['": It;I~i[Vi'4ir--~---~~.!I! l~~-:).;"f, _~-~----,~~ :-~- ~ -")1, '.~i77~;~
III
2/2
3/2
4/3
814
1079
1203
1454
128
132
88
32
34%
35%
23%
8%
ANALYSIS
Based on the reported price, including the $400,000 of
road improvements, this transaction indicates a price per
proposed unit of $8,233 and a price per acre of $125,700.
65
PRIMIS, Inc.
The Direct Source For Property Information
'of
File No. 11141
17187
11151
LOCATION
LEGAL
DESCRIPTION
TAX LD.
GRANTOR
GRANTEE
SALE DATE
SALE PRICE
FINANCING
VERIFICATION
With
By
RECORDED
DESCRIPTION
Site
LAND SALE 2
This property is located at the southeast corner of Rinehart
Road and Timacuan Boulevard, in the Timacuan PUD, in
Lake Mary, Seminole County, Florida.
Lengthy legal description retained in appraisers' files
05-20- 30- 300-007B-0000
Daryl M. Carter, Trustee
Bentley Park Associates
February 11, 1999
$2,654,000
Cash to Seller
James Pugh, Epoch Properties
Public Records of Seminole County, Florida
O.R. Book 3590, Page 1721, Seminole County, Florida
This site is irregular in configuration, with frontage along
the north and south sides of Timacuan Boulevard. The
site contains an overall 24:1: acres and is considered 100%
usable. The site is approximately level and at road grade
with the frontage road. All utilities were reported to be
available and no prepaid impact fees were included as part
of this transaction.
66
PRIMIS, Inc.
The Direct Source For Property Information
-
File No. 11141
iiijj
17187
11151
...
LAND SALE 2
(Cont'd)
PROPOSED USE
Partial development of a 310 unit three-level
apartment complex called Bentley Park.
ZONING
PUD, Lake Mary
COMMENTS
[n1"' ..~-;- '--r.'-- - - -Ttf:~'- "v-"- --- j ~{.: ri '" . - 0,.--. -.. - '--l
\J~_hl('.t~:!t: .1 ;l~!'I)hl: ,;,.1,. uS., ! ;J' t 1 . l \. f ~ I
III 648-1,092 134 Unknown 43%
2/2 1,160-1,430 136 Unknown 44%
3/2 1,408-1,444 40 Unknown 13%
Project amenities will include some garage
parking, a swimming pool, clubhouse, exercise
facilities, and a business center. The indicated
density is 12.91 units per acre.
ANALYSIS
Based on the reported price, this transaction
indicates a price per proposed unit of $8,561 and a
price per acre of $110,583.
67
17137
11151
LOCATION
LEGAL
DESCRIPTION
TAX LD.
GRANTOR
GRANTEE
SALE DATE
SALE PRICE
FINANCING
VERIFICATION
With
RECORDED
DESCRIPTION
Site
PRIMIS, Inc.
The Direct Source For Property II'!formation
File No. 11141
LAND SALE 3
This property is located at the southwest corner of State
Road 434 and Vistawilla Drive, approximately 1/4 mile
west of the Central Florida Greene Way, in Winter
Springs, Seminole County, Florida.
Lengthy legal description retained in appraisers' files
31-20-31-5BB-0000-019A
Robert A. Yeager
Courtney Springs, LP
January 29, 1999
$1,690,000
Cash to Seller
Sharon Tridwell, Grantee
O.R. Book 3582, Page 1447, Seminole County, Florida
This site is irregular in configuration, with 80lli: feet of
frontage along the south side of State Road 434. The site
contains an overall 13.6:t acres and is considered 100%
usable. The site is approximately level and at road grade
with the frontage road. All utilities were reported to be
available and no prepaid impact fees were included as part
of this transaction. Access is to come from the frontage
along State Road 434.
68
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
17137
11151
LAND SALE 3
(Cont'd)
PROPOSED USE
Development of a 252 unit, three level apartment complex
called Courtney Springs.
ZONING
PUD, City of Winter Springs
COMMENTS
The site wraps around an FDOT retention pond along
State Road 434. The project has easements and some
right to use this off-site pond for retention purposes. As
of November 2, 1999, the project was approximately 75%
complete.
rr-"t-'>;~---;:--;ff~-~-!-~.-;-;:-V - --.-~---;- -:;--:0,-::;;- -- ~:;--- - -~--~ -;;~~---1
i[ 'lhti~ 'r'All. ' ':If',< '(,:i' , ',\h, ' ~ ,.'11' '~ .1' 'f ,;"1
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1/1 796 SF 80 $715 32%
2/2 I ,060 SF 132 $845 52%
3/2 I ,252 SF 40 $990 16%
View premiums are projected to be between $20 and $40
per month. Project amenities will include some garage
parking, a swimming pool, a 3,557:t square foot
clubhouse, exercise facilities, and a business center. The
indicated density is 18.53 units per acre.
ANALYSIS
Based on the reported price, this transaction indicates a
price per proposed unit of $6,706 and a price per acre of
$124,265.
69
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
-"
17188
11151
LAND SALE 4
LOCATION
This property is located at the southwest corner of Upsala
Road and 5th Street, approximately 1/4 mile south of State
Road 46A, in Seminole County, Florida.
LEGAL
DESCRIPTION
Lengthy legal description retained in appraisers' files
TAX I.D.
28-19-30-506-0000-0210
GRANTOR
Lois M. Paulucci
GRANTEE
Westlake Apartments, Ltd.
SALE DATE
July 29, 1998
SALE PRICE
(
$2,175,000
FINANCING
Cash to Seller
VERIFICATION
With
Public Records of Seminole County, Florida
RECORDED
O.R. Book 3470, Page 0691, Seminole County, Florida
DESCRIPTION
Site
This site is irregular in configuration, with 500:t feet of
frontage along the west side of Upsala Road. The site
contains an overall 18.96:t acres and is considered 100%
usable. The site is approximately level and at road grade
with the frontage road. All utilities were reported to be
available. Access is to come from the frontage along
Upsala Road.
70
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-
PRJMJS, Jne.
The Direct Source For Property Information
File No. 11141
..
..
17188
11151
...
LAND SALE 4
(Cont'd)
..
PROPOSED USE
Development of a 379 unit, three-level apartment complex
called Westlake Apartments.
...
ZONING
PD, Seminole County
...
COMMENTS
The indicated density is 19.99 units per acre.
ANALYSIS
Based on the reported price, this transaction indicates a
price per proposed unit of $5,739 and a price per acre of
$114,715.
71
17138
11151
LOCATION
LEGAL
DESCRIPTION
TAX I.D.
GRANTOR
GRANTEE
SALE DATE
SALE PRICE
FINANCING
VERIFICATION
With
RECORDED
DESCRIPTION
Site
PROPOSED USE
PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
LAND SALE 5
This property is located along the east side of Alafaya
Trail, south of State Rod 50, in Orange County, Florida.
Lengthy legal description retained in appraisers' files
22-22-31-0000-00-0037
Residential Communities of Florida, Ltd.
United Dominion Realty Trust, Inc.
May 28, 1998
$2,336,000
Cash to Seller
Allison Jones (of Grantee)
O.R. Book 5491, Page 2762, Orange County, Florida
This site is irregular in configuration and contains an
overall 18.26i: acres. The site is considered to be 100%
usable. The site is approximately level and at road grade
with the frontage road. All utilities were reported to be
available and no prepaid impact fees were included as part
of this transaction.
Development of a 292 unit, three-level apartment complex
called Ashton at Waterford Lakes.
72
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17138
11151
,..
~
ZONING
"'"""P'
COMMENTS
,.-.-
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-
ANALYSIS
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PRIMIS, Inc.
The Direct Source For Property Information
File No. 11141
LAND SALE 5
(Cont'd)
PD, Orange County
The unit mix is as follows:
r-r-:;- ~----;;;--::;:~~ ~r - - - - .;-;--;..~ - - - ~ ,cc, - - ~ 1
l Vfilj, It"I!;' " ~j!A. (,:1,' , \ '~ i ' ~ "I I / !)l , l
Jl I
I
111 721 SF 86 $715 29%
212 986 SF 154 $850 53%
312 1,219 SF 52 $1,050 18%
Project amenities will include lakefront (man-made),
tennis, pool, clubhouse, volleyball and picnic area. The
indicated density is 15.99 units per acre.
Based on the reported price, this transaction indicates a
price per proposed unit of $8,000 and a price per acre of
$127,930.
73
.-,-",~...,','.'';:'.~-; .
-
PRIMIS, Inc. ,_
The Direct Source For Property Information
File No. 11141
17139
11151
LAND SALE 6
(Cont'd)
ZONING
PD, Altamonte Springs
COMMENTS
The unit mix is as follows:
~~-:V;-""n'T-.~ ---;;- l~' "'- __ -co CC,- _~"I ,.. ) . - . ~--'--"--'l
If : (f,fti 1 r;'lI~_ I .:ill: ;;1:) i .'11>.. .! "'-'1\' ,
~l ' ,
1/1 712 SF 17% Unknown
III 747 SF 10% Unknown
2/1 901 SF 7% Unknown
2/2 1,062 SF 17% Unknown
2/2 1,110 SF 23% Unknown
3/2 1,263 SF 13% Unknown
4/2 1,371 SF 13% Unknown
Project amenities will include tennis, pool, playground,
and clubhouse with business center. The indicated density
is 24.0 units per acre.
ANAL YSIS
Based on the reported price, this transaction indicates a
price per proposed unit of $6,667 and a price per acre of
$160,000.
75
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.~ ,'.. -' ~ -
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.~ ' ~'ih~-"_.' .............,--,.,<
. Subject Property Land Sale 1 Land Sale 2 Land Sale 3
Location State Road 434 in W IS Alorna Ave., approximately SElC of Rinehard Rd & SW IC State Road 434 &
/ Seminole County 1/4 mile noI1h of Dean Rd. in TimaaJan Blvd., in Lake Vislawilla Dr., approx. 1A
Oveido, Seminole County Mary, Seminole County mi. W of CF GreeneWay,
Winter SoriIll!S
Date of Sale N/A March 24, 1999 Februarv II, 1999 January 29, 1999
. Sale Price N/A $2,470,000 $2,654,000 $1,690,000
Site Size (Acres) 27.3 19.65 24.0 13.60
Front Feet N/A 1,000 Unknown 800
Phvs. Features N/A Pond in W. central portion Part of larger PUD Pond in W central oortion :
Prooosed Use Aoartment Complex Apartment Comolex Apartment Complex Apartment Comolex
1# Prooosed Units 491 300 310 252
Density (Units/Acre) 18 15.27 UIA 12.91 utA 18.53 UIA
Price/SF N/A $2.89 $2.54 $2.85
PricelUnit N/A $8,233 $8,561 $6,705
Parcel Number 26-20-30-5AR-ODOO-00I0 31-21-31-300-0010-??oo 05-20-30- 300-OO7B-OOOO 31-20-31-5BB-OOOO-019A
Buyer Name See Report Sem. Co. Lorna Vista Bentley Park Courtney Springs. LP
Partners, Ltd.
Zoning Town Center PUD PUD PUD
Financing N/A Cash to Seller Cash to Seller Cash to Seller
Utilities Water* All All All
Conditions of Sale N/A Arm's Length Arm's Len2th Arm's Leni!th
Official Records N/A 3616-1331 3590-1721 3582-1447
Comments Subject Property Divided by former SAL RR.; north.end of
fronts Exprwy. & SR 426 TuscawiIla PUD
Proposed Unit Mix:
One-Bedroom 128 134 80
Two-Bedroom 132 136 132
Three-Bedroom 88 40 40
Four-Bedroom 32 0 N/A
,>;J .J(,-:."Ji> ',/7-"6< . ",;1;"."
.
Economic Adj.
Prooenv Rights Conv. 0.00% 0.00% 0.00%
Financing 0.00% 0.00% 0.00%
Conditions of Sale 0.00% 0.00% 0.00%
Market Conditions 0.00% 0.00% 0.00%
Adiusted PricelUnit $8,233 $8,561 $6,705
. .... :::.;;'i........ ....... . : X""'" ., ,.ii;';, n,,; . >:'. /.;:,.... . ,....'., i.....'-':.
Physical Adi.
Location Somewhat Suoerior Suoerior Inferior
Size Similar Similar Suoerior
Net Adiustments Downward Downward Nil
Conclusion: 491 units @ $7,300 I unit = $3,58
Notes: * Sewer must be broul!ht to the site. Please refer to reoort for discussion on cost.
J
PRIMIS, -Tnc.
The direct source for property information
File No. 11141
l'
.
Adjustments
-
~
An explanation of the adjustments made to each comparable sale follows. The economic
adjustments considered were for real property rights conveyed, financing, conditions of sale and
market conditions (time). The physical location of the comparable sales, as well as other
physical characteristics were then considered and adjustments were applied for these elements,
following the adjustments for economic considerations.
Real Property Rights Conveyed - All of the transactions involved the sale of the
fee simple estate; therefore, no adjustments were necessary for real property rights
conveyed.
Financing - When a property is sold with other than typical market financing,
such as a purchase money mortgage and an atypical interest rate and/or terms, the
sale price will often reflect the influence of financing. All of the sales contained
herein, involved direct payment of cash to the seller, or cash equivalent mortgage
terms, so no adjustments were applied for financing.
Conditions of Sale - All of the land sales involved typically motivated buyers and
sellers. No other adjustments for conditions of sale were made.
Market Conditions - We have made no adjustments to the comparable land sales
to account for the passage of time, or changes in market conditions. We estimate
the market has been stable over the period of time during which the sales
transpired.
Once the economic adjustments have been considered, the next category of adjustments was for
location and other physical features. Typically, we would adjust the comparable sales to the
subject by way of a quantitative analysis. This analysis would require the performance of a
paired sales analysis. However, whenever the elements being considered for adjustment cannot
be isolated for comparison, a paired sales analysis is not performed. Instead, in these instances, a
subjective analysis will be employed. Since we were unable to isolate the physical
characteristics of the subject property relative to the comparable sales, we were not able to
perform a paired sales analysis and have instead opted for the qualitative adjustments.
It should be clearly understood that superior qualitative adjustments indicate that, if percentage
adjustments were to be applied, a downward adjustment to the comparable sale would be
required relative to the subject site, with the reverse being true for inferior adjustments.
77
PRIMIS, Inc.
The direct'source for property information
File No. 11141
Location - A good location for a multifamily site offers some visibility to the
public, access to supporting commercial development, and proximity to
employment centers or, in the case of apartment projects in the Winter Springs
area, proximity to the GreeneWay, nearby mall and employment centers.
Proximity to physical amenities such as lakefront or other characteristics, where
premiums can be charged, is oftentimes the most desirable aspects of location.
Since the elements of location could not be isolated for comparison purposes, we
have opted to employ a qualitative analysis in comparing the land sales used in
this analysis to the subject site.
Land Sale 1, located near the intersection of Aloma A venue and Dean Road, is
visible from not only the abutting road frontage, but the GreeneWay, as well, and
is superior in this respect to the subject. Proximity to commercial corridors and
employment centers is equally as desirable as the subject site. With respect to
physical features, this sale has a pond located in the west central portion.
This amenity is considered to be equal to the subject's location adjacent to Central
Winds Park. For these reasons, we have deemed this sale somewhat superior to
the subject site in terms of location.
Land Sale 2 was deemed overall superior. With respect to visibility, the frontage
along Rinehart Road; at the entrance to the Timacuan Planned Development is
advantageous. With respect to access to commercial and employment centers,
this sale was deemed overall superior to the subject due to proximity to the
Heathrow and Primera employment centers. Extraordinary features were present
as well (golf frontage); this characteristic was considered superior, as well.
Therefore, this sale was considered more desirable than Land Sale 1 and was,
therefore, also considered overall superior to the subject site.
Land Sale 3, with its proximity to the nearby beltway and lack of an on-site
amenity such as a pond or golf course, was considered similar to the subject site.
However, this property is located outside the Winter Springs Town Center
District, making it inferior to the subject. Relative to the subject and two previous
sales, this sale was deemed inferior.
Land Sale 4, located along the west side of Upsala Road, south of State
Road 46A, was deemed the least desirable, in terms of location, of the six land
sales used in this analysis. Considering the lack of nearby development, frontage
along a relatively rural portion of this roadway, no on-site amenities, this
conclusion was deemed reasonable.
78
,~~""~~:~,,.,,~,~
PRIMIS, Inc.
The direct source for property information
File No. 11141
Land Sale 5, located along the east side of Alafaya Trail, south of State Road 50,
is influenced not only by the development trends in east Orange County, but the
expansion of the nearby University of Central Florida. For this reason, we have
considered this sale similar in location to that of Land Sale 1 and concluded that
Land Sale 5 is overall superior to the subject site.
Land Sale 6, arguably the most desirable of all the sales used in this analysis, in
terms of location, given its proximity to the Maitland Business Center, Winter
Park, downtown and arterial roadways, was considered overall superior to the
subject site, relative to location.
Size - The subject property consist of 27.3::!: acres. The comparables range from
13.6:1: acres to 24.0:l: acres. Sales of this size are considered most common for
apartment uses. Typically, smaller parcels command premiums over larger
parcels, all other factors being similar. Considering the absorption period
typically associated with larger parcels and the resulting risk involved, this
conclusion is reasonable. In addition, there is also a smaller market available for
larger parcels, with fewer users. Therefore, smaller sites will tend to sell for more
on a per unit basis given the likely increase in interest associated with smaller
parcels.
Land Sale 3, with 13.6::!: acres, is less than half the size of the subject property.
We have concluded this sale to be superior to the subject property with respect to
its overall size.
Physical Characteristics - In the case of the comparable sales, features such as
excessive fill dirt required at the time of development or infrastructure already in
place would warrant further consideration. However, this has not been the case
with any of the comparables. In addition, characteristics such as lake or golf
frontage have already been considered in the locational adjustments of the
comparable sales and, therefore, no further consideration is necessary.
Utilities - As previously discussed, approximately $100,000 will be required to
extend sewer service to the subject property. We have opted to subtract the cost
to extend sewer to the subject propelty from our value estimate prior to
concluding on a final market value estimate as a means of adjustment for this
characteristic.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
Land Value Conclusion:
The sales reflect unit! values ranging from $5,739 to $8,561 per dwelling unit, with an average of
$7,318 per dwelling unit.
Based on the preceding information, we have estimated that a reasonable market value estimate
for the subject property would be approximately $7,300 per unit. Multiplying the 491 dwelling
units, results in a market value estimate of approximately $3,584,300.
Next we subtracted the cost associated with bringing sewer to the site. Within the Site Data
section of this report, it was estimated that extending sewer to the subject site would cost
approximately $100,000.
Subtracting the cost of extending sewer to the site from our previous value estimate of
$3,589,300 indicates a Market Value estimate for the subject property, effective August 2, 2000,
of $3,484,300, rounded to, $3,485,000.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
FINAL VALUE ESTIMATE
The purpose of this appraisal was to estimate the market value of the subject property in the "as
is" condition, as of the effective date of this appraisal, August 2, 2000. The subject property is
located to the west of the Central Winds Park entrance road, north of State Road 434, in Winter
Springs, Seminole County, Florida. We have utilized the Sales Comparison Approach in order
to estimate the market value of the subject property in the "as is" condition.
The Sales Comparison (Market) Approach involves direct comparison of the property being
appraised with similar properties that have sold in the recent past. It is based upon the principal
of substitution, which implies that a prudent investor will not pay more to buy a property than it
would cost to buy an equally desirable substitute property. We were able to analyze several sales
of multifamily land which were considered reasonably similar to the subject. Based upon this
analysis, we were able to formulate an opinion as to the market value of the subject land in its
"as is" condition.
Therefore, as a result of our investigation into those matters which affect market value, and by
virtue of our experience and training, we have formed the opinion that the market value of the
fee simple interest in the subject property, in the "as is" condition, effective August 2, 2000, was:
Three Million Four Hundred Eighty-Five Thousand Dollars
($3,485,000).
Exposure Period
As an additional consideration, it is also necessary to estimate a reasonable exposure period for
the subject property. Based upon our analysis of the factors of supply and demand within this
market segment, we estimate an exposure period for the subject property in the "as is" condition
of approximately one year.
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PRIMIS, Inc.
The direct source for property information
File No. 11141
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ADDENDA
PRIMIS, Inc.
The direct source for property information
File No. 11141
ApPRAISER'S QUALIFICATIONS
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PRIMIS, Inc.
The direct source for property information
File No. 11141
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QUALIFICATIONS OF LARRY A. CHURCH
Business Address
PRIMIS, Inc.
American Pioneer Building
600 Courtland Street, Suite 260
Orlando, Florida 32804
Telephone: (407) 644-9922, Extension 202
Education
B.S. Degree in Business Administration, Real Estate and Urban Land Studies, University of Florida - 1967
Completed Real Estate Appraisal Courses under direction of American institute of Real Estate Appraisers:
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Course I
Course II
Course IV
Course VI
- Basic Principles (by examination)
- Urban Case Studies
- Condemnation
- Investment Analysis
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Completed under the direction of the Society of Real Estate Appraisers:
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Course 101
Course 30 I
- Introduction to Appraising
- Special Applications of Appraisal Analysis
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Completed under the direction of the Appraisal Institute:
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Course 510
Course 5248
Course 520
( lllllllllllhcred)
(Unnumbered)
- Advanced Capitalization
- Standards of Professional Practice
- Highest and Best Use and Market Analysis
New lIRAR
- The Appraiser's Complete Review Seminar
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Attended numerous seminars and educational programs on real estate and appraisal subjects sponsored by
the American Institute of Real Estate Appraisers, Society of Real Estate Appraisers and others. Currently
certified with the Appraisal Institute.
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Experience
Appraiser with Pardue, Heid, Church, Smith & Waller, Inc. since 1967
...
Single-family Residences and Residential Subdivisions
Commercial Buildings and Sites
Mobile Home Parks and Subdivisions
Shopping Centers
Campgrounds and R V Parks
Motels and Motel Sites
Hotels and Hotel Sites
Apartment Complexes
Service Stations and Service Station Sites
Multi-Use PUDs
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The direct source for property information
File No. 11141
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QUALIFICATIONS OF LARRY A. CHURCH
(Cont'd)
Professional Designations and Activities
Member (MAl)
State-Certified General Real Estate Appraiser
Member of the Orlando Area Association of Realtors
Registered Real Estate Broker in the State of Florida
Partial List of Clients
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Advance Mortgage Corporation
AmeriFirst Development Corporation
American Mobile Home Corporation
Aspen Enterprises, Inc.
Atico Mortgage Corporation
Bank of Winter Park
Barnett Bank N.A.
BP Oil Corporation
Carnegie Mellon University
Chase Manhattan Bank, N.A.
Chevron U.S.A.
Citibank. N.A.
City of Orlando
Clayton, Williams and Sherwood
CNA Insurance Company
Colonial Penn Communities, Inc.
Com Bank Mortgage
CenTrust Savings & Loan Association
DeAnza Group, Inc.
Dollar Bank
Exxon Company, U.S.A.
Federal Deposit Insurance Corporation
Firstate Financial
First Union National Bank
Florida Department of Administration
Florida National Bank
Florida Residential Communities
Ford Foundation
Federal Home Loan Bank Board
Gibraltar Savings
Gulfco Capital Management, Inc.
Independent Life Insurance Company
McConnell Wetenhall Shopping Centers, Inc.
Merrill Lynch Realty & Relocation
Mobil Oil Corporation
National Bank of St. Petersburg
National Bank of Cleveland
New York Life
NationsBank
Nationsbank, N.A.
Orange County Board of County Commissioners
Orlando, Financial Center
Orlando-Orange County Expressway Authority
Pannell, Kerr. Forster
Paulucci International
Peabody Southeast. Inc.
Penn Mutual Life
Resolution Trust Corporation
Royal Crown Bottlers
Shell Oil Company
Simplimatic Engineering
SouthTrust Bank, N.A.
Standard Oil Company
Sunbank Mortgage Company
SunBank, N.A.
Texaco, Inc.
Touche-Ross & Company
Trammel Crow Corporation
Unijax Corporation
Uniroyal, Inc.
Vista Federal Credit Union
Western and Southern Life Insurance Company
Western Electric
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PRIMIS, Ine.
The direct source for property information
QUALIFICATIONS OF ROBERT J. PERKINS
Baiaess Address
PRIMIS. Inc.
600 Courtland Street. Suite 260
()rlando. Florida 32804
Telephone (407) 644-9922, Ex1. 211
Education
Ottawa University, Ottawa, Kansas
Bachelor of Arts Degree in Business Administration
Completed the following courses sponsored by the Appraisal Institute
. Appraisal Principles, Chicago, Illinois - 1993
. Appraisal Procedures, Salt Lake City, Utah - 1993
. Basic Income Capitalization, West Springfield, Massachusetts - 1993
. General Applications, S1. Louis, Missouri - 1993
. Standards of Professional Practice, Parts A and B, Chicago, Illinois - 1993
. Advanced Income Capitalization, Orlando, Florida - 1994
. Highest & Best Use and Market Analysis, San Diego, California - 1994
. Advanced Sales Comparison & Cost Approaches, San Diego, California - 1997
. Report Writing & Valuation Analysis, Chicago, Illinois - 1997
. Advanced Applications, Chicago, Illinois - 1997
. Standards of Professional Practice, Part C, Chicago, Illinois - 1999
Experience
Appraiser with PRIM IS, Inc.
Commercial Appraiser
January 2000 to Present
Appraiser with The Rooney Group April 1984 to December 1999
Single-family Residences and Residential Subdivisions
Commercial Buildings and Sites
Shopping Centers .
Motels and Motel Sites
Hotels and Hotel Sites
Apartment Complexes
Service Stations and Service Station Sites
Professional Licenses & Affiliations
Certified General Real Estate Appraiser #0002457 - State of Florida
Certified General Real Estate Appraiser #486 - State of Wisconsin
Candidate of Appraisal Institute
File No. 11141
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PRIMIS, Ine.
The direct source for property information
File No. 11141
ENGAGMENT LETTER
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PRIMIS, Inc.
(,00 Courtland St.
Suite 260
Orlando. FL 32804
Ph 407. 644 . 9922
Fx 407. 644 . 5009
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Our Primis is simple.
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PA.M'S
The cftrccr,ollrn' {or prop('rty ;n(orflMtion
July 25, 2000
City of Winter Springs
1126 East State Road 434
Winter Springs, Florida 32708-2799
Attention: Charles Carrington
Community Development Director
Re: 26 + \- Acres on Central Winds Park Entrance Road
Gentlemen:
Thank you for the opportunity to submit our proposal to perform the appraisal on
this property. The purpose of the appraisal will be to estimate the market value of
the fee simple interest.
Our fee for preparing a complete summary appraisal report will be $2,250.00.
Delivery will be within fifteen business days after receiving the authorization, and
information to commence.
Our appraisal report will be prepared in conformance with the Uniform Standards
of Professional Appraisal Practice, as promulgated by the Appraisal Foundation,
as well as the Appraisal Institute.
The appraisal fee includes three original copies of the appraisal report. A
reasonable amount of incidental consultations in connection with the assignment is
included in the fee. Should exceptional consultations, meetings or expert testimony
be required, our hourly billing rates are $175 per hour for an MAl/Principal, $125
per hour for a Senior Appraiser/ Associate, and $75 per hour for research staff.
Your signature below authorizes our firm to prepare the narrative appraisal, as
outlined, for a total fee of $2,250.00 Please sign and return a copy of this letter
to engage our services.
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July 25, 2000
We look forward to working with you on this project. Please phone (407-644-9922, ext. 202) day
or night if you need anything regarding this proposal.
Respectfully submitted,
Larry A. Church, MAl, SRA
Commercial Appraisal Manager
State-Certified General Appraiser ??oo599
I hereby authorize PRIMIS, Inc. to perform the appraisal of the property herein described, under
the terms and conditions outlined in this letter.
City of Winter Springs
By: jduttfM 1JtI2.--.P
Date: .-::JLJ '- '1 2. \- , .c.- C.