HomeMy WebLinkAboutLand America -2002 06 02
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600 Courtland Street, Suite 260
Orlando, Florida 32804
UJ?dated Appraisal Report Of
A 27.3 Acre Parcel Of Undeveloped Land
Located Off The North Side Of State Road 434
Just West Of The Central Winds Park Entrance Road
In Winter Springs, Seminole County, Florida
Prepared for
City Of Winter Springs
1126 East State Road 434
Winter Springs, Florida 32708-2799
Attention: Chuck Pula, Parks and Recreation Director
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A ~~I?~~~R~~~TYSoLUTIONS
June 6, 2002
City Of Winter Springs
1126 East State Road 434
Winter Springs, Florida 32708-2799
Attention:
Chuck Pula, Parks and Recreation Director
Re:
Appraisal of 27 acres of land located off the north side of S.R. 434,
just west of the Central Winds Park entrance road, in Winter Springs,
Seminole County, Florida
Gentlemen:
Pursuant to your request, we have conducted the investigations and analyses necessary to appraise
the above referenced property. Per mutual agreement, this is an update of a complete, self-
contained appraisal report (Job No. 11141, effective August 2,2000), prepared by PRIMIS, Inc.
(predecessor to LandAmerica), and addressed to Charles C. Carrington, AICP, Community
Development Director at the City of Winter Springs.
As an update, the original appraisal is hereby incorporated into this report and is subject to the
same conditions, "General Assumptions" and "General Limiting Conditions" as set forth in
the original appraisal. The property is further described and identified by both legal and
narrative descriptions within the text of the original appraisal report.
The purpose of this appraisal update is to estimate the market value of the fee simple interest in
the subject site, at its highest and best use, as of a current date, May 29, 2002. The function of
this appraisal is for submission to other governmental agencies as part of an application for a land
and water conservation grant fund. The intended user of this appraisal report is the City of
Winter Springs in pursuit of the grant. The appraisers are not responsible for unauthorized use
of this report.
Market value, fee simple interest and other appraisal terms are defined within the original report.
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) 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 the Standards of Professional
Practice of the Appraisal Institute.
LandAmerica Financial Group, Inc. 600 Courtland Street, Suite 260 Orlando, FL 32804 Telephone 407 -628-1164 Facsimile 407 -644-1951
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Page II
June 6, 2002
City of Winter Springs
Attention: Chuck Pula
As a result of our investigations into those matters which affect market value, and by virtue of our
experience and training, it is our opinion that the market value of the fee simple interest in the
subject property, as of May 29, 2002, was
Three Million Eight Hundred Thousand Dollars
($3,800,000).
Assuming a competent, aggressive and coordinated marketing effort, we have estimated an
exposure period of nine to 12 months for the subject property at the value estimated herein.
We assume the subject property has adequate access to support development of the site at its
highest and best use. In the event that adequate access is not available, or incurs atypical costs
or efforts to secure same, we reserve the right to revise our appraisal report and value estimate
accordingly.
As an update, the original appraisal is hereby incorporated into this report and this report is
subject to the same conditions, "General Assumptions" and "General Limiting Conditions" as
set forth in the original appraisal.
Respectfully submitted,
Land America, Commercial Real Property Solutions
Larry A. Church, MAl, SRA
StJ1~ kPpraiser ??oo599
Michael D. Dabby, Senior Appraiser
State-Certified General Appraiser 0001590
LAC:MDD:c1s
00016
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LandAmerica
Commercial Real Property Solutions
File No. 00016
TABLE OF CONTENTS
CERTIFICATE OF VALUE ....................................... 1
SUMMARY OF APPRAISAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3
INTRODUCTION .............................'................. 4
METROPOLITAN MAP. .......................................... 5
REGIONAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6
NEIGHBORHOOD LOCATION MAP. ................................. 29
NEIGHBORHOOD UPDATE ....................................... 30
RMR STUDY AREAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
TAX MAP LOCATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
AERIAL PHOTOGRAPH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
FLOOD PLAIN MAP ............................................ 37
PROPERTY DATA UPDATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
HIGHEST AND BEST USE UPDATE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
APPRAISAL PROCESS .......................................... 42
COMPARABLE LAND SALES MAP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
V ALUA TION ANALYSIS UPDATE .................................. 44
LAND SALES SUMMARY AND ANALYSIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
ADDENDA
Appraisers' Qualifications
Subject Photographs
Permitted Uses
Land Sales
General Assumptions and General Limiting Conditions
Appraiser's Qualifications
Parson's Letter
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LandAmerica
Commercial Real Property Solutions
File No. 00016
CERTIFICATE OF VALUE
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 with respect to the subject matter of this appraisal report or the parties involved;
that to 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, 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 Appraisal Institute conducts a voluntary program of continuing education for its designated
members. MAIs and SRAs who meet the minimum standards of this program are awarded
periodic educational certification. As of the date of this report, Larry A. Church, MAl, SRA,
has completed the requirements under the continuing education program ofthe Appraisal Institute.
The subject of this appraisal report is situated off the north side of State Road 434, just west of
the Central Winds Park entrance road, in Winter Springs, Seminole County, Florida.
The undersigned appraisers, Larry A. Church, MAl, SRA, and Michael D. Dabby, Senior
Appraiser, certify that they have each personally inspected the subject property. Michael D.
Dabby, Senior Appraiser, certifies that he has personally inspected every comparable sale included
in this report.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
As a result of our investigation into those matters which affect market value, and by virtue of our
experience and training, it is our opinion that the market value of the fee simple interest in the
subject property, as of May 29, 2002, was $3,800,000.
Assuming a competent, aggressive and coordinated marketing effort, we have estimated an
exposure period of nine to 12 months for the subject property at the value estimated herein.
We assume the subject property has adequate access to support development of the site at its
highest and best use. In the event that adequate access is not available, or incurs atypical costs
or efforts to secure same, we reserve the right to revise our appraisal report and value estimate
accordingly.
As an update, the original appraisal is hereby incorporated into this report and this report is
subject to the same conditions, "General Assumptions" and "General Limiting Conditions" as
set forth in the original appraisal.
LandAmerica Commercial Real Property Solutions
Larry A. Church, MAl, SRA
State-Certified General Appraiser 0000599
Michael D. Dabby, Se ior Appraiser
State-Certified Genera Appraiser 0001590
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LandAmerica
Commercial Real Property Solutions
File No. 00016
LOCATION
TYPE OF PROPERTY
IMPROVEMENTS
HIGHEST AND BEST USE
INTEREST IN
PROPERTY APPRAISED
DATE OF VALUATION
SUMMARY OF APPRAISAL
The subject property is situated 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 property is an undeveloped parcel of
vacant land.
The site is unimproved.
The highest and best use of the subject property is
for residential multifamily (apartment) development,
most likely with a density of approximately 17 to 18
units per acre. This is equivalent to 471 to 499
units, or an average of say 485 units.
Fee Simple Interest
May 29, 2002
ESTIMATED MARKET VALUE
$3,800,000
ESTIMATED
MARKETING PERIOD
CONDITIONS
9 to 12 months
As an update, the original appraisal is hereby
incorporated into this report and this report is
subject to the same conditions, "General
Assumptions" and "General Limiting Conditions"
as set forth in the original appraisal.
We assume the subject property has adequate
access to support development of the site at its
highest and best use. In the event that adequate
access is not available, or incurs atypical costs or
efforts to secure same, we reserve the right to revise
our appraisal report and value estimate
accordingly.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
INTRODUCTION
Purpose, Function and Intended Users of Appraisal
The purpose of this appraisal update is to estimate the market value of the fee simple interest in
the subject site, at its highest and best use, as of a current date, May 29, 2002. The function of
this appraisal is for submission to other governmental agencies as part of an application for a land
and water conservation grant fund. The intended user of this appraisal report is the City of
Winter Springs in pursuit of the grant. The appraisers are not responsible for unauthorized use
of this report.
Property Rights Appraised
This report is an appraisal of the fee simple interest in the subject property.
Scope of the Appraisal
This update of our original appraisal involved the typical systematic market research and analyses
necessary to estimate an updated current market value conclusion for the subject. As such, we
have researched and reported only the most pertinent changes to the subject property and the
market.
As an update, the original appraisal is hereby incorporated into this report and this report is
subject to the same conditions, "General Assumptions" and "General Limiting Conditions" as
set forth in the original appraisal.
Competency of Appraisers
The appraisers' specific qualifications are included within the Addenda to 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:
· Professional experience
· Educational background and training
· Business, professional, academic affiliations and activities
The appraisers have previously provided consultation and value estimates for numerous types of
vacant land, residential, commercial and industrial developments, as well as wetland and easement
valuations, partial interests and condemnation interests.
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METROPOLITAN MAP
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LandAmerica
Commercial Real Property Solutions
File No. 00016
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.
Historical Background
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.
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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LandAmerica
Commercial Real Property Solutions
File No. 00016
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 Daytona
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.
With the first construction in its initial stages, plans to widen Interstate 4 are underway. 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. Those 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 Volusia 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 part 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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LandAmerica
Commercial Real Property Solutions
File No. 00016
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 referred 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. 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 Airports Council International, it ranks as the 13th busiest airports in
the country and the 21 st busiest in the world based on passenger traffic. According to the Greater
Orlando Aviation Authority, passenger traffic has increased from approximately 10 million in
1985, to over 18 million in 1990, to approximately 30.8 million in 2000. This represents a 67%
increase in the past 10 years.
However, as a result of the events of September 11, 200 1, the 200 1 year-end numbers declined
8% to over 28,000,000. Because of the declines in air travel and tourism, as well as the slowing
economy, International visitors declined 17 % and domestic travelers fell 8 % for the year. Prior
to September 2001, passenger projections were for almost 35 million for 2003 and almost 38
million for 2005, once the new terminal opens. The total expansion project is budgeted for over
$1 billion. These plans are still underway and it is expected the numbers will reach earlier
projections. 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.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Of special note, the Orlando/Sanford Airport has seen significant growth and reported an
approximate 20 % increase in traffic from 2000 to 200 1 despite the recession and the decline in
air travel. Their growth is related to the addition of new terminals and air service providers. The
majority of their traffic is international with the largest percentage from the United Kingdom.
Travel figures for 2001 totaled over 1.3 million.
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 Greyhound/Trailways bus line, with
a terminal just west of the Orlando Central Business District.
Lynx has several improvement projects that should increase the efficiency of public ground
transportation. The Lymmo bus route online in downtown Orlando essentially functions as a
trolley service for the central business district.
Rail- Amtrak presently operates passenger trains in the Orlando area, with round-trip service
from Orlando to New York. Passenger trains typically stop at five stations in the MSA: Deland,
Sanford, Winter Park, Orlando, and Kissimmee. The CSX 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
Population - The Orlando MSA is the fourth largest MSA in the state and among the 28 largest
MSAs in the nation and the 16th fastest growing metropolitan area in the nation. Population
statistics are as follows.
Population - Orlando MSA
1980 699,904
1985 862,700
1990 1,072,748
1995 1,214,314
1997 1,473,271
2000 1,559,419
2005 1,760,000*
Source: U.S. Census Bureau I Claritas, Inc.
* Estimated in Forecast 2000 CFB Journal
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LandAmerica
Commercial Real Property Solutions
File No. 00016
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.
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.
National Ranking Of The Top 10 Annual Growth Areas
1998-2003 Ranking 1993-1998 Ranking
Orlando, FL 1 7
Las Ve~as, NV 2 1
Phoenix, AZ 3 5
Salt Lake City, UT 4 3
Fort Worth, TX 5 3
AlbuQuerQue, NM 6 9
San Die~o, CA 7 27
Atlanta, GA 8 4
Denver, CO 9 12
Orange County, CA 10 19
Source: Valuation Network, Inc.
By the year 2005, Central Florida is projected to have a total population of over 1.76 million
people. Population projections for Florida and the four counties encompassing the Orlando MSA
are as follows:
POI: ulation Growth
2000 2005 Projected
Florida 15,982,378 16,761,774
Orange County 896,344 928,562
Seminole County 365,196 415,798
Lake County 210,528 222,199
Osceola County 172,493 194,801
Total MSA 1,644,561 1,761,360
Source: BEBR - Florida Population Series
For the entire region, a major catalyst behind the rapid growth of Central Florida over the past
20 years has been Disney World 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.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
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 36.4 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 are 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 W orId Company 55,000
Oran~e County Public Schools 19,608
U.S. Postal Service 11 ,600
Universal Studios Florida 11 ,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.
However, amid the sluggish economy, Florida's job market is beginning to feel the pinch.
Florida's unemployment rate for December 200 1 reached 6 % and has since fallen to 5.3 for the
months of January and February 2002. The Orlando MSA reported 5.1 % for December 2001 and
has since fallen to 5.3% as well. Historical unemployment rates are summarized as follows:
Historical Unemployment Rates - Orlando MSA
1992 7.5%
1993 6.1%
1994 5.6%
1995 4.5%
1996 3.8%
1997 3.4%
1998 3.0%
1999 2.7%
2000 2.6%
Source: US Bureau of Labor & Statistics
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Recent job growth throughout the region has come 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.
Median
Household EBI $20,000-$34,999 $35,000-$49,999 $50,000 & Over
Orlando (Citv) $29,982 27.3% 18.4% 23.7%
OranJ!:e 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%
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 come 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.
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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.
Growth 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.
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 economy are expanding.
Central Florida's economic success is now intimately linked with that of the nation and the world.
For example, when D.S.consumers' confidence dips, Brazil's currency tumbles, or when acts of
terrorism affect travel and tourism, Metropolitan Orlando and its neighboring counties reap the
consequences.
Factors that will figure prominently in the health of the region's economy in 2002 and beyond
include:
Global Economy
Ensuing War on Terrorism
Population and Job Growth
Real Estate Development
Business Expansion
Consumer Confidence
The Orlando area has about a $45 billion-a-year economy; construction will account for about $5
billion of that, or more than 10 % .
Even if the nation deals with a continued recession, 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.
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Commercial Real Property Solutions
File No. 00016
Office
With the uncertain and weakening economy followed by corporate downsizing and the events of
September 11 th, the Orlando MSA office market has been substantially impacted and is now
experiencing higher vacancies not seen since the early 1990s. Vacancies at year-end 2001 reached
14.6% overall. Sublease spaces continued to climb with 1,283,550 square feet of available space.
Despite all this, Metro Orlando was able to pull out an annual absorption figure of
1,383,643 square feet. This was due in part of the expansion of corporate tenants such as Siemens
Westinghouse Power Corp, Sprint and Florida Power among others. Although the annual
absorption did not reach 2000's record number, it is consistent with prior year numbers.
Construction has slowed dramatically. Most speculative projects were on hold as of year-end
200 1 until developers receive a commitment from a major tenant. In 200 1, 24 new office
buildings were delivered for a total of 2,334,642 square feet with 47% of the space leased.
Recent office market statistics are summarized as follows.
Orlando Office Market
Category Fourth Quarter 2001
Net Rentable Area 28,317,912 SF
Under Construction 744,012 SF
Overall Vacancy Rate 14.6%
Average Asking Lease Rate $19.87 psf
Net Absorption 160,619 SF
Source: CB Richard Ellis' Office Market Index Brief - 4h Qtr. 2001
The overall vacancy rate for the market in 2000 was 9.7%, up slightly from 8.3% at the end of
1999. Net absorption for 2000 was 1.989 million square feet, as compared to 1.521 million
square feet for 1999.
In 2000 and 2001, continued corporate relocations, coupled with an influx of large users, helped
to position Orlando as one of the nation's favored office markets. Speculative construction was
no longer considered a leap of faith and was 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 previously caused
a shortage of available Class "A" space marketwide, which was soon remedied with the addition
of new office inventory. Now, in light of the stagnant economy and slowing job growth, there
is an imbalance of supply and demand in office space, especially in Lake Mary and southwest
Orlando, where speculative building is greatest.
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Despite landlord concessions, rental rates remained slightly higher than one year ago. Tenants
will have greater leverage on longer-term leases especially where speculative building has created
an imbalance in supply and demand.
Central Florida's three office markets currently reporting the lowest vacancy rates are Downtown
Orlando, Maitland Center, and East Orlando/UCF. While there is still strong uncertainty as to
when and how the market will recoup, Central Florida's diversified economy should allow for
rapid recovery. Barring any unforeseen extension of the economic downturn, it is expected that
Orlando office market will begin to see signs of recovery by the second half of 2002.
Construction may return in 2003 as vacancies and subleases decline to a more balanced level.
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 justified most
new construction and the rents and occupancy have remained relatively stable. Meanwhile, older,
functionally obsolete space was falling out of favor in the market.
Several "big box" users, such as Toys R Us, relocated to larger business districts in 2001.
Fortunately, these larger spaces are divisible for the most part and will allow an opportunity for
smaller tenants.
With the slowing economy, speculative construction slowed down in 2001 and virtually
disappeared by the end of 200 1. This decrease in construction helped to reduce the threat of an
imbalance in supply and demand.
Vacancy rates rose to a high of9% by year-end 2001. The Airport/Southeast market reported the
highest vacancy rate at 14.2 % followed by the Osceola County submarket at 11.9%.
Recent industrial market statistics are summarized as follows.
Orlando Industrial Market
Category Fourth Quarter 2001
Net Rentable Area 85,911,180 SF
Under Construction 1,131,403 SF
Overall Vacancy Rate 9.0%
A verage Asking Lease Rate $3.85 psf
Net Absorption (178,937) SF
<;:.\IIrpp' C'R Ri~h:lrcl FlIi~' Mnrvot TnrJ or Rripf 4'h ntr_ 2(){) 1
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Orlando's absorption levels have also been healthy with a total absorption for the year 2000 of
2.75 million square feet. The majority of new space was built south of downtown Orlando, in
the airport and southwest submarkets. In 2001, the third quarter's unprecedented net absorption
of 1,370,113 square feet returned back in line by fourth quarter. The third quarter increase was
due primarily to several large build-to-suit bulk distribution facilities for Daimler Chrysler,
Schenck and Burris Foods.
Opportunities exist for tenants looking to expand in 2002. Developers with land and entitlements
will be offering incentives, as will landlords with a glut of second generation and surplus space.
The U.S. Commerce Department recently designated seven Seminole County business parks as
foreign trade zones, which will create long-term opportunities in this area. The Southwest and
Southeast Orlando, traditionally dominant submarkets, will provide opportunities with a large
amount of sublease space and available first and second-generation space. Osceola, Lake and Polk
offer good opportunity and have recently captured some major national corporations. These
outlying counties are benefitting from their proximity to Interstate 4 and Florida's Turnpike, along
with good prices and infrastructure.
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. Optimism is still prevailing in this market and is expected to continue through
the foreseeable future.
Retail
The Orlando retail market includes over 48 million square feet. Overall, vacancy rates have
remained below 10 % since 1997 with rates remaining below 5 % for the first three quarters of
200 1. The events of September 11 th were expected to increase the vacancy rate to 6 % or 7 % .
However, thus far we have yet to experience any market-specific downturn. Vacancy rates at
year-end 2001 reflected a rate of 4.1 % overall. Retail in general reflected the softening of sales
as seen nationwide but there were no significant store closings within the market.
Recent retail market statistics are summarized as follows:
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Urlando Retail Market
Average Asking
Vacancy Rate Under Lease Rate
Center Type Base SF Construction $ NNN/SF
Neighborhood 13,019,271 5.4% 350,838 $12 - $35
Community 17,268,436 5.2% 322,000 $13 - $30
Power Centers 599,456 3.0% 0 $13 - $30
Regional Centers 4,128,590 2.2% 0 $18 - $22
Specialty Centers 1,007,729 12.7% 0 $45 - $65
Super Regional 9,439,359 0.3% 1,200,000 $25 - $40
Other 2,805,307 12.0% 302,000 $10 - $35
Market Total 48,268,148 4.1 % 2,174,838 $10 - $65
~nllrrp' rR Dirhllrrl J<'1Ii,,' D. " II. .J... '"Any Q";nl' _ 4'h ntr ?{)j'1
Asking lease rates have been steadily increasing and currently range between $10.00 and $65.00
depending on the center type. At the end of fourth quarter 2001, there was nearly 2.2 million
square feet of retail under construction. Projects continued as planned as demand still exists.
The Central Florida retail market overall has remained relatively healthy, but overall trends in
consolidation and reorganization throughout the industry are also common. Freestanding retail
stores, typically built on a build-to-suit basis, and community shopping centers anchored by
grocery stores unquestionably have been the most popular type of development. Power centers
seem to be losing favor with some market participants. Several "big box" users have come and
gone and some owners are struggling to fmd new tenants for these large spaces. At the same
time, big box discount stores such as Wal-Mart and Target continue to do well in the slowing
economy, with one Super Wal-Mart and two Super Targets opening in third quarter 2001.
Additionally, a new wholesale retailer, BJ's Wholesale Club, entered the market in 2001 and
opening two sites in Orlando, one in Sanford, and one in Melbourne.
In contrast to national trends, mall growth has been extremely active in Central Florida. Three
regional malls opened within the last seven years: the 1.2 million square foot Seminole Towne
Center in 1995; the 1.1 million square foot West Oaks Mall in 1996; and the 830,000 square foot
Oviedo Marketplace in 1998. The 1.6 million square foot Florida Mall, located closest to
Orlando's tourist area, has seen recent expansion with the opening of a Saks Fifth A venue in
1996. It is currently expanding to 2 million square feet with the addition of Nordstrom and Lord
& Taylor department stores in 2002.
Additionally, construction has begun on two new regional malls. The 1.2 million square foot
Millenia Mall, co-developed by The Forbes Co. and Taubman Co., is expected to open in October
2002 in Southwest Orlando. Aside from the new upscale department stores at the Florida Mall,
the Millenia Mall will be Central Florida's most ambitious foray into truly upscale retailing.
Anchor tenants will include Bloomingdale's, Macy's, Neiman Marcus, and Tiffany's. With the
uncertainty of today's retail environment, it is difficult to predict the success of these new
ventures.
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Secondly, the 1.1 million square foot Festival Bay, a themed retail/entertainment complex being
built in Orlando's International Drive tourist area, is set to open in late 2002. This project
expands upon an area which has seen the most recent growth with the addition of Bass Pro
Outdoor World, a 21-screen theatre, and a Vans store and associated skateboard park.
Two other notable, recent large-scale retail developments include the Town Center at Waterford
Lakes and the Winter Park Village. Town Center is a newly developed community center
associated with substantial residential development east of Orlando. The Winter Park Village is
a re-developed mall site that has become an upscale community retail center centrally located in
Winter Park.
The 1990s brought several new developments in the tourist sector, primarily in the form of
retail/entertainment centers. Major projects included The Pointe on International Drive, City
Walk at Universal Studios, and Downtown Disney, an expansion of the Lake Buena Vista Village
Marketplace in the Walt Disney World Resort.
The Central Florida retail market remains strong with capital moving in and out of the market.
Central Florida's shopping center sales hit record levels by the third quarter of 2001 as
investments totaled over $192 million. The price per square foot tipped the scales at a record
setting $112.65. As fears of a slowing economy are driving some commercial property owners
to sell, the strong economic reputation of the Central Florida economy continues to draw the
attention of high -dollar investors. With its continued population growth, developers are beginning
to take notice of the area's growing affluence.
Orlando's retail market has generally had to depend on the performance of tourism to support the
disproportionately high ratio of retail businesses to the local population. Despite the current
supply, opportunities still exist in the rapidly developing areas of Lake and Polk County, north
Seminole County and southeast Orlando. In addition, Downtown Orlando and Winter Park are
emerging as specialty urban retail markets designed to cater to the local customer.
Long term, the forecast appears optimistic. Although development will probably slow by the end
of 2002, many out parcel and big-box retailers are expected to actively seek out new sites for
future development. With its expanding population and diversifying economy, the area will
remain attractive to retail developers as the state's most desired location.
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Hotel
The slowing economy, overbuilding in some markets, the World Trade Center attack, the
continuing war on terrorism, and prolonged reductions in international and leisure travel have
combined to make for what may be the most challenging operating and business environment,
especially within the lodging industry. These events are expected to cause the nation's hotels to
achieve their lowest levels of occupancy since the 1991 Gulf War.
And as can be expected, some markets are faring better than others. Those markets dependent
on airlines and resorts are suffering the most. Those that possess either positive or improving
underlying supply and demand conditions are expected to produce above-average gains in
occupancy rates over the near term.
But despite these decreases in demand, it appears that the worst may be over. Occupancy levels,
ADRs, and revenues are showing signs of improvement, or in some cases are flattening. Still,
they remain well below year-ago levels and vary greatly between hotel segments. In general,
upscale hotels have been the most affected as they are typically located in large urban cities that
are centers of business, gateways for international travel, sites of large convention centers, and
areas highly dependent on air travel.
The Central Florida hotel market is driven by Orlando's position as a successful leisure and
convention destination with one of the largest hotel inventories in the nation. In 2000, Orlando
attracted approximately 38.6 million visitors annually. Of these , approximately 8.94 million were
domestic business travelers. While international passenger traffic declined 17 % in 200 1, total
passenger traffic at the Orlando International Airport was down only 8.34% over the prior year.
Despite the recent declines, travel is expected to rebound by mid-to-Iate-year 2002. And given
recent signs of positive improvement in the U. S. economy, hoteliers are predicting slow but
continued recovery of Orlando's lodging industry in 2002.
For a historical reference, hotel occupancies in the Orlando market reached 80.1 % in 1996 and
then declined through 1999 to 71. 7 %, with a slight uptick in 2000 and a substantial decline in
2001 to 64%. However, room night demand increased in 1997, 1999 and 2000, setting a record
of 26.7 million room nights demanded. Nevertheless, this growth in demand declined to 24.6
million room nights in 2001. The following table illustrates the historical performance of
Orlando's hotel market.
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HOTEL/MOTEL INVENTORY AND OCCUPANCY
Orlando Metropolitan Statistical Area
Rooms Increase in Rooms % Increase Annual Occupancy
1985 53,200 ---- ---- ----
1986 57,835 4,635 + 8.7% 70.2%
1987 60,405 2,570 + 4.4% 73.6%
1988 61,479 1,074 + 1.8% 75.6%
1989 67,723 6,244 + 10.2% 81.7%
1990 73,539 5,816 + 8.6% 78.9%
1991 75,104 1,565 + 2.1% 73.8%
1992 79,174 4,070 +5.4% 76.2%
1993* 81,978 2,804 + 3.54% 75.0%
1994 82,812 834 + 1.0% 71.6%
1995 85,075 2,263 +5.4% 75.5%
1996 86,509 1,434 + 1.7% 80.2%
1997 87,724 1,215 +1.4% 79.0%
1998** 91,996 3,674 + 4.2% 74.6%
1999** 99,154 7,356 + 8.1% 71.7%
2000** 102,821 3,667 + 3.7% 72.6%
2001** 106,083 3,262 + 3.2% 64.0%
Source: East Central Florida Regional Planning Council Hotel/Motel Inventory as of July each year.
* Including Lake County from this year on
** Source: Smith Travel Research
A submarket breakdown is summarized in the next table.
YEAR-END HOTEL OCCUPANCY
Occupancy Average Daily Rate
Area 2001 2000 2001 2000
Orlando North 59.2% 63.5% $ 65.85 $ 67.07
Orlando Central 56.5% 62.7% $ 72.24 $ 69.00
International Drive 65.2% 73.9% $ 90.22 $ 89.08
Kissimmee East 58.8% 66.7% $ 49.96 $ 52.11
Kissimmee West 58.1 % 69.1 % $ 60.71 $ 62.78
Orlando South 58.4% 65.3% $ 67.74 $ 68.53
Lake Buena Vista 71.2% 80.8% $117.97 $123.33
Metro Orlando 64.0% 72.6% $ 88.14 $ 89.93
Source: Orlando/Orange County Convention & Visitors Bureau
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Metro Orlando's current inventory totals 107,839 rooms and there is a substantial number of
lodging facilities that have been planned or proposed within Central Florida. The rooms proposed
as of February 18, 2002, for the period through 2005, account for about 10% of the existing
inventory within the tri-county area. However, it should be noted that, historically, less than 50 %
of the rooms that are planned or proposed are actually completed during the year indicated, and
some may never get developed. With a 30% completion rate, this would indicate a realistic
increase in the room count of approximately 3,271 rooms, or roughly 3.0% of the existing room
inventory.
Prior to September 11th, inventory increases totaled approximately 26% between 1995 and 2000.
Approximately 3,400 rooms were added in 2001. Recently opened, the Gaylord Palms Hotel,
formerly known as the Opryland Florida, is located in Kissimmee. This 1,406 room hotel opened
in January 2002 and contains 400,000 square feet of meeting space on a total site of 68 acres.
Occupancy is expected to reach 60% in 2002, largely comprised of convention and group
business.
Several other hotels under construction or planned include a third Loews property at Universal;
the 1,000 room Royal Pacific Resort is expected to open in summer 2002. Orlando Grand Lakes
Resort, located along John Young Parkway, will feature a 584 room Ritz Carlton Hotel and a
1,000 room JW Marriott Hotel. Both are expected to open in July 2003.
The 1,200 acre Champions Gate master-planned resort development adjacent to Celebration,
including a 730 room Omni Hotel, was delayed due to slower economic trends. It is expected to
feature 80,000 square feet of meeting space and is now expected to open in early 2004.
The Reunion Resort and Club, another master-planned resort, has plans for up to 3,000 hotel
rooms, in addition to 5,000 resort homes and 3 golf courses, to be completed in 2003. Hyatt
Hotels and Hilton Hotels Corporation have plans for hotels in the vicinity of the Orlando/Orange
County Convention Center. Construction was delayed on the Hilton as a result of unfavorable
market conditions. Development of Disney's 5,760-room economy-style Pop Century Hotel was
indefinitely postponed following September 11th.
Approximately 1,500 limited-service hotel rooms, ranging from a 100 room Comfort Inn to a
350 unit Residence Inn, are anticipated to open through the end of 2004.
While the preceding discussion may seem to indicate that the quantity of new developments
proposed for the Central Florida market could lead to an overbuilt situation, we rely upon
historical perspective to gain insight into the future. The number of proposed rooms is actually
lower than levels of activity in the recent past. In our opinion, the factors of supply and demand
for lodging facilities are fairly well balanced in the area. These market parameters have remained
in check, more so than in the past, in large part due to more stringent lending practices. Only
those proposed projects, which are well designed and have very good chances of economic
feasibility, will receive funding today. The factors of supply and demand should continue to
remain at or near stabilization into the foreseeable future.
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Commercial Real Property Solutions
File No. 00016
Tourism
Without a doubt, the unprecedented events of September 11 th and the resulting decline in air travel
and international tourism adversely affected the Central Florida tourism industry in 2001. Travel
to the region had already begun to decline due to the slowing economy both in the United States
and within several key foreign countries whose citizens typically provide a large percentage of our
international tourist base.
In response to the lower levels of visitation, theme parks and lodging facilities began regional
marketing campaigns to attract visitors within driving distance of Orlando in hopes of combating
the decline in air travel. In addition, Disney World is promoting a year-long celebration of the
looth anniversary of Walt Disney's birth that includes special events and attractions anticipated
to generate increased media awareness for the parks to boost demand.
Currently, the Orange County Convention Center contains over one million square feet and is
currently ranked third in the United States in terms of prime exhibit space, behind McCormick
Place in Chicago and the Las Vegas Convention Center. Plans are to add an additional one
million square feet of exhibit space by late 2003. Group demand is anticipated to increase
approximately 30% over historic levels. By that time, the national economy is likely to have
shown signs of recovery.
Despite this, the number of visitors to the Orlando area typically surpasses 40 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. Disney and Universal Studios announced the
most ambitious plans, and these major expansion projects are essentially complete. Both
companies added hotel rooms, retail/entertainment centers, and additional theme parks in the last
two to five years. Most notably, Disney added Animal Kingdom, its fourth major theme park,
and Universal Studios added Islands of Adventure, its second theme park.
Based on the 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:
2001 Estimated
Annual Attendance Land Size Year Opened
Name
\.1a~ic Kin~dom - Disney 14,784,000 107 Acres 1971
~PCOT Center - Disnev 9,010,000 300 Acres 1982
\.1GM Studios - Disney 8,366,000 154 Acres 1989
\nimal Kin~dom - Disney 7,771,000 500 Acres 1998
]niversal Studios Florida 7,290,000 800 Acres 1990
slands of Adventure 5,520,000 N/A 1999
ea World of Florida 5,100,000 200 Acres 1973
ource: Amusement Business, Orlando Business Journal
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Reportedly, visitation to the theme parks was down an estimate 20% to 30% for 2001; however,
as of April 2002, visitation appeared to be returning to normal levels as Walt Disney World
reported several days in which gates were closed due to the large number of visitors.
As can be expected, a substantial decline in business within the area attractions has far-reaching
consequences within the Central Florida market, a market that relies heavily upon the tourism
industry. A large percentage of this market is dependent on the success of the region as a tourist
destination and tourism will continue to be one of the largest economic sectors in the region.
With the returning health of the airline industry, and an improving national economy, the Orlando
area will maintain its position as the most popular tourist destination in the world. Most
participants within the theme park and lodging industries expect a return to normal levels by the
end of 2002.
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.
For reference, the Single-Family Production Market through December 2000 was as follows:
Single-Family Production Market Throu2h December 2000
RMR Study Area Total Construction Closings Average Sale
Projects Starts Price
Sanford/Lake Mary 36 976 970 $209,100
LoDltWood/ Altamonte . 8 92 131 $210,400
Casselberry !Winter Springs/Oviedo 40 722 854 $195,100
Apopka 32 588 640 $152,200
Winter GardenlOcoee 23 467 467 $144,500
Central/Winter Park/Maitland 8 109 100 $130,900
South Orlando 5 141 201 $159,600
East OrangelUCF 89 1,751 1,948 $154,500
South Orange 38 943 963 $171,600
Dr. Phillips 57 815 757 $254,000
Kissimmee 73 1,827 1,751 $168,500
Metro Total 409 8,431 8,782 $177,700
23
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LandAmerica
Commercial Real Property Solutions
File No. 00016
The Single-Family Production Market through December 2001 was as follows:
Sinsde-Family Production Market Throu2h December 2001
RMR Study Area Total Construction Closings Average Sale
Projects Starts Price
Sanford/Lake Mary 36 742 805 $218,600
Longwood/ Altamonte 7 110 80 $257,400
Casselberry /W inter Springs/Oviedo 34 606 672 $212,600
Apopka 30 504 491 $166,200
Winter Garden/Ocoee 22 579 571 $140,300
Central/Winter Park/Maitland 7 123 122 $184,800
South Orlando 4 120 137 $157,400
East Orange/UCF 86 2,509 2,1116 $181,800
South Orange 42 1,176 1,124 $179,100
Dr. Phillips 72 1,145 867 $268,200
Kissimmee 77 2,009 1,943 $180,900
Metro Total 417 9,623 8,928 $192 100
For reference, the Single-Family Custom Market through December 2000 was as follows:
Sinsde-Family Custom Market Throu2h December 2000
RMR Study Area Total Construction Closings
Projects Starts
Sanford/Lake Mary 21 146 147
Longwood/ Altamonte 9 33 27
Casselberry /Winter Springs/Oviedo 27 89 113
Apopka 9 18 24
Winter GardenlOcoee 12 45 65
Central/Winter Park/Maitland 9 56 16
South Orlando 7 16 15
East OrangelUCF 6 17 17
South Orange 3 16 11
Dr. Phillips 50 270 292
Kissimmee 36 162 203
Metro Total 187 868 930
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LandAmerica
Commercial Real Property Solutions
File No. 00016
The Single-Family Custom Market through December 2001 was as follows:
Sin2le-Family Custom Market Throu2h December 2001
RMR Study Area Total Construction Closings
Projects Starts
Sanford/Lake Mary 19 149 139
.Lon~w()()d/ Altamonte 9 18 23
Casselberry !Winter Springs/Oviedo 26 88 24
Apopka 7 35 24
Winter Garden/Ocoee 8 33 40
Central/Winter Park/Maitland 10 39 26
South Orlando 8 19 19
.East Orange/UCF 6 18 15
South Oran~e 4 9 14
Dr. Phillips 49 231 252
Kissimmee 29 193 193
Metro Total 175 832 840
Multifamily for Sale through December 2000:
Multifamily For Sale Throu2h December 2000
RMR Study Area Total Construction Closings Average Sale
Projects Starts Price
Sanford/Lake Mary 1 53 12 $95,300
Longwood/ Altamonte 2 72 63 $121,100
Casselberrv!Winter Springs/Oviedo 0 0 9 $99,500
Apopka 2 24 3 $146,200
Winter GardenlOcoee 0 0 0 0
Central!Winter Park/Maitland 5 69 20 $107,300
South Orlando 2 114 197 $96,900
East Oran~e/UCF 1 0 0 0
South Oranl!e 4 228 369 $106,600
Dr. Phillips 3 36 76 $203,800
Kissimmee 16 479 286 $126,200
Metro Total 36 1,075 1,035 $118 100
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Multifamily for Sale through December 2001:
Multifamily For Sale Throu2h December 2001
RMR Study Area Total Construction Closings Average Sale
Projects Starts Price
Sanford/Lake Mary 1 66 56 $ 98,700
Longwood/ Altamonte 3 110 88 $110,200
CasselberrylWinter Springs/Oviedo 2 78 0 N/A
Apopka 2 28 28 $165,400
Winter GardenlOcoee 0 0 0 N/A
Central/Winter Park/Maitland 5 38 15 $372,200
South Orlando 1 0 106 $122,100
East OrangelUCF 1 66 15 $126,800
South Orange 5 28 120 $114,100
Dr. Phillips 2 46 29 $257,100
Kissimmee 15 460 403 $134,100
Metro Total 37 920 860 $134 200
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. The building bonanza of the late
1990s outpaced 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 March 2002, the overall market occupancy was approximately 89.3 %. The overall market
occupancy rate has slightly dropped from September of 2001, when the rate was 92.8%. The
following chart reflects recent data for the Orlando MSA apartment market.
Date # of Complexes Total # Units Units Occupied % Occupancy
9/96 437 95,557 89,919 94.1%
9/97 457 99,504 94,449 94.9%
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%
9/00 551 125,361 116,646 93.0%
3/01 563 131,767 121,705 92.4%
9/01 573 136,370 126,544 92.8%
3/02 589 141,136 126,061 89.3%
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LandAmerica
Commercial Real Property Solutions
File No. 00016
The number of units under construction and occupancy rates in the various submarkets of the
Orlando MSA were as follows:
RMR Study Area Mar. 2000 Sept. 2000 March 2001 Sept. 2001 March 2002
Sanford/Lake Mary 2,085 2,010 1,610 1,626 676
Longwood/ Altamonte 628 374 33 51 33
Casselberry /Winter Springs/Oviedo 1,382 1,240 781 96 349
Apopka 0 0 0 0 0
Winter Garden 507 317 216 10 319
North Orlando/Winter Park/Maitland 1,271 1,165 809 949 637
South Orlando 1,719 495 577 915 758
East Orange/UCF 1,772 1,533 826 10 433
South Orange 1,676 988 326 976 601
Dr. Phillips/Windermere 772 1,437 1,637 546 729
Kissimmee 919 942 914 1,091 729
Lake/Northeast Polk 272 796 473 241 300
Metro Total 13,003 11,297 8,202 6,511 5,564
The apartment occupancy rates in the various submarkets of the Orlando MSA were as follows:
RMR Study Area Mar. 2000 Sept. 2000 March 2001 Sept. 2001 March 2002
Sanford/Lake Mary 98.4% 89.3% 88.5% 88.9% 83.3%
Longwood/ Altamonte Springs 94.4% 92.3% 91.8% 93.3% 91.5%
Casselberry/Winter Springs/Oviedo 92.6% 93.7% 92.8% 92.2% 90.4%
Apopka 96.1% 92.8% 94.6% 95.1% 92.5%
Winter Garden/Ocoee/West Orange 94.2% 94.1% 96.5% 95.2% 92.0%
North Orlando/Winter Park/Maitland 92.1% 91.9% 91.3% 92.9% 90.6%
South Orlando 93.4 % 93.4 % 94.5% 94.6% 90.7%
East Orange/UCF 93.4 % 94.5% 94.0% 95.2% 92.5%
South Orange 88.4% 92.2% 88.1% 90.0% 86.4%
Dr. Phillips/Windermere 92.4% 92.4% 90.9% 89.5% 86.6%
Kissimmee/St.. Cloud 92.8% 94.1% 93.2% 91.7% 84.0%
Lake/Northeast Polk 90.0% 87.9% 78.7% 88.5% 82.4%
Metro Total 93.0% 93.0% 92.4% 92.8% 89.3%
27
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LandAmerica
Commercial Real Property Solutions
File No. 00016
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 in recent years
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. Given recent world
events and the nation's struggle with a slowing economy, growth has slowed when compared to
prior years. The resumption of air travel and tourism may be the biggest factors in 2002 and will
no doubt spur a real estate recovery. Property markets will likely rebound over the next two
years while adjusting to a new business world and travel industry. Overall, the long-term outlook
for the Central Florida region is positive.
28
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NEIGHBORHOOD LOCATION MAP
~ . LIT
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LandAmerica
Commercial Real Property Solutions
File No. 00016
NEIGHBORHOOD UPDATE
The subject neighborhood has remained essentially the same with some moderate changes, mostly
pertaining to roads and development.
The widening of Tuskawilla Road in its entirely from State Road 434 to State Road 426 (Aloma
Av~nue) has been completed. The widening of State Road 434 from east of Tuskawilla Road to
the GreeneWay has been completed. The extension/continuation of the GreeneWay from U.S.
Highway 17/92 in Sanford, westerly toward Interstate 4 has been completed to Rhinehart Road,
with the final leg to be completed in late 2002. Widening of Aloma Avenue from east of the
GreeneWay to north of Red Bug Lake Road has commenced.
Within the immediate subject neighborhood, ground has broken for the project at the northwest
corner of State Road 434 and Tuskawilla Road, named Winter Springs Town Center. This three
phase, mixed use project will include 250,000 square foot of retail and office space on 15 acres
(multiple stories) at buildout. The first phase of retail development, including a Publix grocery
store, is currently under construction.
Tuskawilla Office Park, a 15,000 square foot project along the west side of Tuskawilla Road is
being planned. This project is adjacent to the planned Avery Park subdivision. We are also
aware of a contract to purchase land along State Road 434, opposite the entry road to Central
Winds Park to develop apartment units.
There have been no other changes of significance to or within the subject neighborhood, other
than continued single-family development, since the date of the original appraisal.
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RESIDENTIAL MARKET REPORTS
RMR STUDY AREAS
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SEMINOLE COUNTY
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BEELINE EXPWY.
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ORANGE COUN ORANGE COUNTY
0' SC E o i.- ;"CO'U N f Y -..- -.. - -.. - -..--..- -..--.. --..- -..- -.. - (>,~rC-E'O '['A- c'au t:rTY
Kissimmee
St Cloud
CHARLES WAYNE CONSULTING, INC.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
The following is a summary of all apartment complexes in the RMR Market Area "C".
SUBMARKET "c' APARTMENTS
Name Year No. Units I Rental Range Rent/SF Occupancy
Built March 2002 Ranee March 2002
Seville on the Green 1986 170 $700 - $1,025 $0.70 - $0.81 95%
Golf Terrace 1986* 552 $570 - $929 $0.61 - $0.87 90%
Mosswood 1981* 147 $445 - $665 $0.77 - $1.55 93%
Hidden Pines 1981 56 $569 - $667 $0.77 - $0.99 93%
Oxford Square 1986 283 $665 - $795 $0.75 - $0.80 95%
Sandoioer 1975* 196 $485 - $845 $0.63 - $0.87 98%
Cyoress Sorin$!;s 1973 272 $505 - $689 $0.57 - $0.97 91 %
Rel!ency Oaks I 1969* 239 $489 - $959 $0.46 - $0.83 92%
SorinJ!; Tree Villal!e/Rollin$!;wood II 1979* 104 $369 - $560 $0.65 - $1.28 100%
Savannah Trace 1985 160 $600 - $860 $0.88 - $1.17 95%
Willa Sorinl!s 1986* 368 $659 - $1,085 $0.83 - $1.00 87%
Reflections 1983* 336 $559 - $769 $0.72 - $1.22 89%
Red Lion 1974 120 $420 - $605 $0.57 - $0.79 98%
Stratford Sauare 1973 204 $575 - $825 $0.59 - $0.73 99%
Sorrento 1971 285 $395 - $680 $0.48 - $0.83 99%
Si$!;llal Pointe 1970* 365 $539 - $829 $0.65 - $1.04 92%
Sedl!efie1d 1972* 111 $475 - $780 $0.62 - $1.06 96%
San Jose 1972 121 $500 - $695 $0.53 - $0.58 100%
Birchwood Landinl! 1972* 184 $525 - $645 $0.77 - $0.88 90%
Semoran North 1969* 347 $575 - $770 $0.57 - $0.74 94%
Branchwood 1981 117 $469 - $679 $0.79 - $1.63 100%
Howell Branch Station 1968* 367 $475 - $1,020 $0.56 - $0.88 74%
ReJ!;ency Oaks II 1968 104 $569 - $834 $0.64 - $0.79 93%
Sunshadow 1988* 384 $599 - $715 $0.72 - $0.84 87%
Alafava Woods 1988* 296 $820 - $930 $0.78 - $0.85 92%
Newoort Colony 1990* 476 $635 - $978 $0.78 - $0.97 89%
Chatham Pines at W oodcreek 1990* 208 $620 - $1,025 $0.89 - $1.07 92%
The Harbor at Lake Howell 1990* 408 $720 - $1,020 $0.77 - $0.87 91%
Castle Woods 1992* 304 $562 - $745 $0.62 - $0.70 92%
North$!;ate Lakes 1997* 195 NUA $1,780 NUA - $1.38 100%
Summer Club 1998 294 $685 - $1,060 $0.83 - $1.10 94%
Barrinl!ton Place 1998 233 $730 - $1,020 $0.75 - $0.94 94%
Oviedo Grove 1998 240 $705 - $1,040 $0.82 - $1.04 92%
Courtney Sorinl!s 1999 252 $739 - $1,049 $0.80 - $0.93 86%
Riverwind 1999 110 $1,840 $1.47 95%
Shadow Creek 1999 280 $780 - $1,210 $0.87 - $1.23 83%
Lorna Vista 2000 380 $543 - $834 $0.57 - $0.67 97%
Stonecastle 2000 220 $765 - $1,230 $0.85 - $1.03 95%
Elmhurst Villal!e 2000 313 $775 - $1,130 $0.87 - $0.97 61 %
Tivoli 2000* 240 $725 - $1,568 $0.86 - $0.99 79%
Grandeville at River Place 2002 0 NUA NUA NUA
Fountain Place 2002 0 NUA NUA NUA
Subsequent renovations
Source: Residential Market Reports, Charles Wayne Consulting, Inc.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
APARTMENT MARKET UPDATE
Overall occupancy rates in the Orlando area have dropped from 94.6% in September 1999 to
89.3% in March 2002. Within the designated Area "C" market (per the Charles Wayne
Consulting, Inc., Residential Market Reports) during the same period occupancy rates have
dropped from 95.7% to 91.5 %. This indicates that Area C enjoys higher than average occupancy
rates and is generally slightly more stable.
During the same period, the number of units rentable, occupied and absorption were as follows:
Units Rentable Units Occupied Units Added Units Absorbed *
March 1999 109,020 102,736
March 2000 118,869 110,558 9,849 7,822
March 2001 131,767 121,705 12,898 11,147
March 2002 141,135 126,061 9,368 4,356
* since orevious oeriod
This drop in occupancy rates was the result of several factors among which are:
1. Unusually high apartment construction in 2000 and early 2001 as compared to absorption;
2. a reduction in interest rates the last quarter of2001, thereby motivating renters to purchase
homes;
3. a slow down in the economy which reduced the rate of population growth, reducing the
growth rate of demand for apartments, and which also
4. negatively affected the local economy for tourism (lower income who tend to rent).
We observe that during this period, apartment absorption in the Orlando area has always been
positive, ranging from approximately 4,300 to 11,100 apartment units, annually.
The newer stabilized apartment complexes in the market area of the subject property are bolded
in the preceding table, which includes all apartments in Area C. The following table summarizes
these projects for March 2002:
Number Units Units Occupied Occupancy Rate Absorption *
21 294 276 94% 6
32 233 218 94% -8
33 240 221 92% -9
34 252 216 86% 22
36 280 232 83% -12
37 380 368 97% 171
38 220 205 93% 177
Total 1,899 1,736 91.4% 347
* From March 200 1 throUl:!:h March 2002
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LandAmerica
Commercial Real Property Solutions
File No. 00016
The data indicates that the occupancy rate is similar to that as all of Area C and absorption is
positive. The average size of these apartment complexes is 271 units, indicating the
current/recent absorption rate will consume 1.28 apartment complexes per year (assuming no
vacancies) .
Alternatively, the data also signifies that at this recent/current rate of absorption (347 units per
year, or approximately 29 per month, a stabilized occupancy of 94 % (1,785 occupied units) for
all these apartment complexes has probably been achieved as of the date of this appraisal.
Including Elmhurst Village, which is still in the lease-up phase, the occupancy rate is 87.1 %, the
average apartment complex has 276 units, and annual absorption is 538 units, or 45 per month).
At this absorption rate, overall 94 % occupancy should be achieved in the early summer of 2002.
At this absorption rate, the market will absorb almost two average size complexes per year.
Rental rates at these complexes have generally increased at more than the rate of inflation, with
little or no rental incentives.
No new units are under construction, although we are aware of a pending contract of land along
the south side of State Road 434 in the vicinity of the subject property, which is likely to add
approximately 150 apartment units. (The asking price was $8,000 per unit for a density of 16
units per acre.)
In consideration of all these factors, as well as the projected improvements in the economy, we
consider apartment development to be supportable by current rental rates.
Considering the apparent health of the apartment market in the immediate and expanded
neighborhood, and the relative pricing of land for single-family housing, we do not consider it
necessary to include data pertaining to the single-family market. However, we do note that the
market for new single-family housing in the area is quite healthy, reflecting the desirability of the
neighborhood for schools and access to employment centers.
34
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AERIAL PHOTOGRAPH
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Seminole County
Unincorporated Areas
120289
1
PORTA TION
TRANS
x RM119
ZONE X
ZONE)
ZONE X
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Unincorporated Areas
120289
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LandAtnerica
Commercial Real Property Solutions
File No. 00016
PROPERTY DATA UPDATE
Legal Description
According to the most recent deeds of conveyance of the subject property, the legal description
of the subject property is:
Lots 1 and 2, Block D, Of Mitchell's Survey of Levy Grant of Lake Jessup, according to
the map or plat thereof as recorded in Plat Book 1, Page 5 of the Public Records of
Seminole County, Florida and the West 112 of vacated street lying south of Orange A venue
and North of railroad Right-of-Way, lying East of Lot 1, Block D.
We observe this legal description includes the West ~ of vacated street lying south of Orange
Avenue and North of railroad Right-of-Way, lying East of Lot 1, which was not previously
included and likely accounts for a change in size from 27.3 to 27.7 acres per the Seminole County
Property Appraiser's records.
Access
Discussions with Kip Lockcuff, city of Winter Springs, Utilities and Public Works director, there
may be some issues as to access of the subject property. These issues pertain to crossing the old
railroad right-of-way between the south line of the subject property and the north line of Old State
Road 434. This strip of land is to be part of the Seminole County rails-to-trails project.
However, since the city owns the adjacent property (Central Winds Park), such access could be
readily provided, if not already available.
We assume the subject property has adequate access to support development of the site at its
highest and best use. In the event that adequate access is not available, or incurs atypical costs
or efforts to secure same, we reserve the right to revise our appraisal report and value estimate
accordingly.
Area and Dimensions
We have not been provided with a survey of the subject property. The Seminole County Property
Appraiser's records indicate that the subject site contains 27.7 acres. In the absence of a recent
survey, we have relied on this land area estimate. In the event that a recent survey is provided,
we reserve the right to revise our appraisal report and value estimate accordingly.
Flood Hazard Statement
The Flood Insurance Rate Map which depicts the subject property is Community Panel
No. 1211C0135E, effective April 17 , 1995. This map depicts the subject property as unshaded
Zone X, which is defined as "areas determined to be outside the 500-year flood plain, which is
considered to be outside the flood zone.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Property History
The subject property is owned by the city of Winter Springs which acquired title to the site in
February 2002 for $3,815,000. We observe that there was a previous contract on the property.
However, we were unable to determine the reasons why this previous contract failed to close and
how and why the city of Winter Springs came to purchase the property at a higher price. The
following table provides a history of ownership and transfers of the subject property over the past
ten (10) years:
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Deed Date Grantor Grantee Deed Type BooklPage Price** Interest
6/7 /1996 Edward H. Parker Edward H. Parker and Warranty Deed 3109/1547* $100 All
Sue S. Parker, Co-Trustees
5/24/2001 Richard H. Parker, Sr. and Richard H. Parker, Sr. and Deed to Trust 4149/945* $100 All
Betena L. Parker Betena L. Parker, Trustees
2/28/2002 Richard H. Parker, Sr. City of Winter Springs Warranty Deed 4353/1328 $3,815,000 2/3 of undivided
1/3
2/28/2002 Sue S. Parker and Thomas A. City of Winter Springs Trustee's Deed 4353/1330 $0 undivided 1/3
Woodruff, Co-Trustees
2/28/2002 Richard H. Parker, Sr. and City of Winter Springs Trustee's Deed 4353/1332 $0 13 of undivided
Betena L. Parker, Trustees 1/3
2/28/2002 Gloria Jeanne Parker and City of Winter Springs Trustee's Deed 4353/1334 $0 74.855% of
Patricia J. Parker, Co-Trustees undivided 1/3
2/28/2002 Gloria Jeanne Parker and City of Winter Springs Trustee's Deed 4353/1336 $0 25.145% of
Patricia J. Parker, Co-Trustees undivided 1/3
* Legal description on deed does not include adjacent abandoned right-of-way
**Perdocumentarvsuunos
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Utilities
According to the city of Winter Springs, Utilities and Public Works director, Kip Lockcuff, water
lines abut the subject property but sewer lines are approximately 500 feet to the southeast.
Extension of the sewer lines to the subject site and a lift-station will be required in order to
develop the subject property. Mr. Lockcuff stated that these costs would be a developer
responsibility. An e-mail from Mr. Lockcuffstated this would cost approximately $75,000 for
a lift station and $15 to $20 per lineal foot for the extension. Verbally, Mr. Lockcuff stated the
cost to be $75,000 to $80,000 for a lift station and $20 to $22 per lineal foot for the line
extension. We calculate the range of cost to be from $82,500 to $91,000, plus engineering and
other soft costs. We conclude on a total cost of, say $95,000 for these atypical off-site costs.
Assessments & Taxes
The following table outlines the recent property tax assessments for the subject tax parcel:
Tax Year . Agricultural Value Market Value Millage Rate Gross Taxes.
2002 $4,931 $603,306 Not yet determined
2001 $4,640 $567,805 18.6145 $83.36
2000 $4,640 $567,805 18.4642 $85.67
1999 $4,640 $567,805 18.6884 $86.71
· Taxes for all years were based on agricultural value. There were no non-ad valorem taxes.
There are no delinquent taxes due.
The increase in value for 2002 is a result of the inclusion of the adjacent abandoned right-of-way.
Current market value is based on $0.50 per sQuare foot.
Zoning, Future Land Use and Concurrency
Earnest McDonald, Comprehensive Planning Coordinator for the city of Winter Springs, advised
us that, in its year 2002 EAR (Evaluation and Appraisal Report), the city amended its
Comprehensive Plan to formally create a Town Center Land Use Designation. Mr. McDonald
also advised us that capacity for concurrency related criteria, is reserved for total buildout of the
Town Center. Furthermore, such criteria are operating far below capacity. According to
Mr. McDonald, traffic, which appears to generally be the stumbling block for concurrency, is not
likely to be of concern.
Mr. McDonald further advised us that properties within the Town Center must meet architectural
requirements and there are no setback requirements for multifamily development within the Town
Center.
41
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LandAmerica
Commercial Real Property Solutions
File No. 00016
HIGHEST AND BEST USE UPDATE
There have been no substantial physical or legal changes to the subject property, other than
perhaps the inclusion of adjacent right-of-way, increasing the site of the site to approximately 27.7
acres. The site is located in a area of continued residential and commercial development.
However, the subject is not an interception location to capitalize on potential retail or commercial
uses. There is no discernable demand for office space in the area, as such uses are available at
alternative locations which better meet the needs of the community.
Although there have been some recent excesses in the apartment market, the lack of significant
recent apartment construction in the region indicates that the occupancy rates have probably
bottomed and are about to rise once again. Rental rates during this brief downturn have continued
to rise moderately but incentives were necessary to induce leases. The incentives also seem to
have been eliminated.
In conclusion, we reiterate from our previous report, the highest and best use of the subject
property is for residential multifamily (apartment) development, most likely with a density of
approximately 17 to 18 units per acre. This is equivalent to 471 to 499 units, or an average of
say 485 units.
APPRAISAL PROCESS
We have employed the Sales Comparison Approach as the only applicable approach for estimating
the value of vacant land. The Cost Approach and Income Approach are not applicable, since the
site has no improvements and the highest and best use as vacant does not generate any income.
42
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COMPARABLE LAND SALES MAP
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Pagel
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LandAmerica
Commercial Real Property Solutions
File No. 00016
VALUATION ANALYSIS UPDATE
Land Valuation
In estimating the market value of the vacant subject property, we searched for more recent sales
. of land purchased for apartment development in similar suburban locations within the Orlando
area. Considering the subject's location, we concentrated on Seminole County and East Orange
County .
We have found three such sales in east Orange County in 2001 and 2002. In order to provide
greater depth of understanding, we also included a land sale in Seminole County that occurred in
2000 . We are aware of several land sales for apartment development in the vicinity of University
of Central Florida (UCF). We have not included these since their primary market is for student
housing, which is not consistent with the market in which the subject property operates.
A verification of each of the sales is included herein. We have evaluated each of the comparable
sales on a per (apartment) unit basis, as such sites are typically purchased on the basis of potential
apartment units that can be developed.
The sales range in price from $6,953 to $9,800 per unit and occurred between June 2000 and
February 2002.
Adjustments
No adjustments are necessary for Real Property Rights Conveyed, Financing, Conditions of Sale
or Market Conditions. However, we recognize variations in location and size are necessary to
reflect variations among the comparable sales and the subject property. The accompanying table
summarizes the adjustments and value indications from the following discussion of elements of
comparison. Again, in the absence of paired sales analysis, we have chosen to evaluate and adjust
the comparables on the basis of qualitative analysis. The individual and net adjustments indicated
on the table indicate the direction of the adjustment (+ for upward, - for downward and -0- for
no adjustment).
Location
The subject property is located within Winter Springs, a moderately upscale suburb in the Orlando
area. It is well isolated from industrial uses and has good access.
Land Sale 1 is located east of the Seminole Towne Center in the Sanford area of Seminole
County. This general area is characterized has a retail commercial and industrial economic base.
As a result, the Sanford area has lower apartment rental rates with limited potential for increases.
As a result, we consider this location to be inferior to the subject requiring a moderate upward
adjustment.
44
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Land Sales 2 and 4 are located adjacent to one-another, directly across from Waterford Lakes
Town Center in burgeoning east Orange County. Although not as upscale as Winter Springs, this
location enjoys high residential demand as a result of its proximity to major transportation,
employment, education and shopping facilities in the immediate vicinity. We consider this
location to be superior to the subject, requiring a moderate downward adjustment.
Land Sale 3 is located several miles south of Sales 2 and 4, along Alafaya Trail in the
Stoneybrook area. Although part of the high growth Alafaya Trail corridor, this area has not been
tested or proven as an apartment market. Access to the area is available only from one direction
and only via Alafaya Trail. As a result of these factors, we consider this location to be
moderately inferior to the subject, thereby requiring a moderate upward adjustment.
Land Sale 5 is located along the extension of Curry Ford Road, southwest of its intersection with
Alafaya Trail. We consider this location to be most similar to the subject, requiring no
adjustment.
Size
We estimate the highest and best use of the subject to be for 17 to 18 units per acre, which is
equivalent to approximately 471 to 499 units. The comparables range in size from 292 to 384
units. Typically, the price per unit is inversely proportional to the number of units (more units
sell for a lower price per unit) as a result of more market participants for a smaller number of
units, as well as comparative overall absorption periods. As a result, all sales must be adjusted
slightly downward to reflect the larger (inferior) size of the subject.
Final Value Estimate and Conclusion
In summary, we consider Land Sales 1 and 3 to require upward adjustments from $6,953 and
$7,000, respectively, and Land Sales 2,4 and 5 to require downward adjustments from $9,200,
$8,800 and $8,353, respectively. We are aware ofa pending contract of land along the south side
of State Road 434 in the vicinity of the subject property. We have not been provided with any
indication of the contract price; however, we have been advised that the asking price was $8,000
per unit.
We conclude on a value of $8,000 per unit. Multiplying $8,000 per unit by an estimated yield
of 485 units, results in a value of $3,880,000.
We have previously noted that an extension of sewer lines and installation of a lift station will be
required in order to develop the site. This atypical cost, which must be borne by the developer
is estimated to be approximately $95,000. Deducting $95,000 from the above estimate of
$3,880,000, results in a value indication of $3,785,000.
This compares with the recent sale price of $3,815,000 for the subject property. With generally
equal weight assigned to the comparable sales and the subject property, we conclude on a value
of $3,800,000.
45
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Therefore, as a result of our investigation into those matters which affect market value, and by
virtue of our experience and training, it is our opinion that the market value of the fee simple
interest in the subject property, as of May 29, 2002, was:
Three Million Eight Hundred Thousand Dollars
($3,800,000).
Exposure Period
As an additional consideration, it is also necessary to estimate a reasonable marketing exposure
period for the subject property. Based on our analysis of the factors of supply and demand within
this market segment, assuming a competent, aggressive and coordinated marketing effort, we
estimate an exposure period of approximately nine months to one year at the value estimated
herein.
46
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Location Off N/S SR 434, N/S State Road 46 NE/C Alafaya Tr. W IS Alafaya Tr, N/S A1afaya Tr, E/S Curry Ford
W of Central Sanford, @ Waterford Lakes S of Stoneybrook E of Waterford Rd. SW of
Winds Park, Seminole County Parkway, Orange Boulevard, Lakes Parkway, A1afaya Tr.,
Winter Springs, (Stratford Point) Co. (Cypress Lakes Orange County Orange County Orange County
Seminole Co at Waterford) (Victoria Place) (Woodland Lakes)
Price $3,815,000 $2,670,000 $2,907,200 $2,156,000 $3,203,200 $2,439,000
Date February 2002 July 2000 June 2000 January 2001 August 2001 February 2002
Net Size (acres) 27.7 19.8 18.62 19.0 22.04 17 (estimated)
Proposed Units 485 384 316 308 364 292
Density 17 - 18, say 17.5 19.4 16.97 16.21 16.52 17.18
.j:'-
-......J Price/Unit $6,953 $9,200 $7,000 $8,800 $8,353
Location
+
+
o
Size
Net Adjustment
+
+
* Note: Real Property Rights Conveyed, Financing, Conditions of Sale and Market Conditions are all similar and therefore require no adjustment.
Conclusion: Comparable sales indicated 485 unit at $8,000 per unit = $3,880,000, less $95,000 for sewer lift station and line extension =
$3,785,000. This compares with recent sale price of subject property of $3,815,000.
Final Conclusion: $3,800,000.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
ADDENDA
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LandAmerica
Commercial Real Property Solutions
File No. 00016
,;
ApPRAISERS' QUALIFICATIONS
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LandAmerica
Commercial Real Property Solutions
File No. 00016
QUALIFICATIONS OF LARRY A. CHURCH
Business Address
LandAmerica OneStop (formerly Primis, Inc.)
American Pioneer Building
600 Courtland Street, Suite 260
Orlando, Florida 32804
Telephone: (407) 628-1164, 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:
Course I
Course II
Course IV
Course VI
- Basic Principles (by examination)
- Urban Case Studies
- Condemnation
- Investment Analysis
Completed under the direction of the Society of Real Estate Appraisers:
Course 101
Course 301
- Introduction to Appraising
- Special Applications of Appraisal Analysis
Completed under the direction of the Appraisal Institute:
Course 510
Course 5248
Course 520
(Unnumbered)
(Unnumbered)
- Advanced Capitalization
- Standards of Professional Practice
- Highest and Best Use and Market Analysis
- New URAR
- The Appraiser's Complete Review Seminar
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.
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 RV Parks
Motels and Motel Sites
Hotels and Hotel Sites
Apartment Complexes
Service Stations and Service Station Sites
Multi-Use PUDs
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LandAmerica
Commercial Real Property Solutions
File No. 00016
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
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.
ComBank 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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, ,-:~~.
LandAmerica
Commercial Real Property Solutions
File No. 00016
QUALIFICATIONS OF MICHAEL D. DABBY
Business Address
LandAmerica OneStop (formerly PRIMIS, Inc.)
American Pioneer Building
600 Courtland Street, Suite 260
Orlando, Florida 32804
Telephone: (407) 628-1164, Ext. 220
Education
(BSBA) University of Florida, Gainesville, Florida
Major in Real Estate and Urban Land Studies; with Honors
University of South California, Los Angeles, California
Major in Architecture and Urban Planning
1974-1976
1971-1973
Appraisal Cou,rses and Seminars Sponsored by the AIREA or Appraisal Institute:
. Real Estate Appraisal Principles lA - 1 Sept. 1988
. Basic Valuation Procedures lA - 2 Sept. 1988
. Capitalization Theory & Techniques IB - A Sept. 1988 Part Al
. Capitalization Theory & Techniques IB - B March 1989 Part B
. Case Studies in Real Estate Valuation 2 - 1 March 1989
August 1992
Oct. 1999 (Part A)
Oct. 1991 (Part B)
July 1992
November 1992
.
Standards of Professional Practice SPP A
Standards of Professional Practice SPPB
Litigation Valuation
Easement Valuation Seminar
4
.
.
.
. Highest and Best Use and Market Analysis
· Report Writing and Valuation Analysis
· Rates and Ratios Used In The
Income Capitalization and Cost Approach
· Standards of Professional Practice
· Standards of Professional Practice
· Standards of Professional Practice,
520
540
March 1994 (audited)
February 1995
2132
410
420
May 1998
Nov. 1998 (Part A)
Nov. 1998 (Part B)
Dec. 2001 (Part C)
Professional Seminars
Current Appraisal Issues in Florida
South Florida Water Management District, May 2001
Reviewing Appraisals in Florida
Bells Appraisal, October 2000
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LandAmerica
Commercial Real Property Solutions
File No. 00016
QUALIFICATIONS OF MICHAEL D. DABBY
(Cont'd)
Professional Seminars (Cont'd)
Appraisal Standards and Ethics
National Association of Realtors, July 1994
Key Issues in Wetlands Regulation in Florida
National Business Institute, Inc., March 1992
Eminent Domain and Land Valuation Litigation
American Law Institute - American Bar Association, January 1992
Professional Experience
Senior Commercial Appraiser, Specialist in Land and Eminent Domain
LandAmerica OneStop (formerly PRIMIS, Inc.), Orlando, Florida 2000 - Present
Senior Commercial Appraiser, Specialist in Land and Eminent Domain
PRIMIS, Inc., Orlando Florida 1999 - 2000
Senior Commercial Appraiser, Specialist in Land and Eminent Domain
Pardue, Heid, Church, Smith & Waller, Inc. 1987 - 1999
Land Acquisition Specialist and Research Analyst 1980 - 1987
First Southern Realty Group, Inc., Orlando, Florida
Staff Research Analyst
Econometrics Corporation, Winter Park, Florida 1979 - 1980
Licenses, Memberships and Affiliations
Candidate for MAl Designation of the Appraisal Institute - M922463
Florida Real Estate Broker-Salesman 0194663
State-Certified General Appraiser 0001590
Member, Greater Orlando Area Association of Realtors
Member, Florida Association of Realtors
Member, National Association of Realtors
Other
Qualified as an Expert Witness
Maitland Board of Zoning Adjustment
Park Lake Grove Condominium Association, Treasurer
1990-1993
1990-1998
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LandAmerica
Commercial Real Property Solutions
File No. 00016
SUBJECT PHOTOGRAPHS
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LandAmerica
Commercial Real Property Solutions
File No. 00016
View North Along East Property Line Of Subject Property
From Vicinity Of Southeast Comer Of Site (Subject On Left)
View West Along South Property Line Of Subject Property
From Vicinity Of Southeast Comer Of Site (Subject On Right)
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LandAmerica
Commercial Real Property Solutions
File No. 00016
Interior View Of Subject Property From Vicinity Of Southeast Corner Of Site
View South Toward State Road 434 From Vicinity Of Southeast Corner Of Site
(Subject Not Visible)
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LandAmerica
Commercial Real Property Solutions
File No. 00016
View East Along South Property Line Of Subject Property
From Vicinity Of Southwest Comer Of Site (Subject On Left)
View West From Vicinity Of Southwest Comer Of Site (Subject Not Visible)
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LandAmerica
Commercial Real Property Solutions
File No. 00016
View North Along West Property Line Of Subject Property
From Vicinity Of Southwest Corner Of Site (Subject On Right)
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LandAmerica
Commercial Real Property Solutions
File No. 00016
PERMITTED USES
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llding volume: The space displaced by the
~ r walls and roof of a building; a product of
lding width, depth, and height. It is the intent
;1 division to regulate building volume in
e to shape public spaces that are human-
led, well-ordered, and which maximize the
,rl real estate amenity.
1 ding width: The distance from one side of a
lding frontage to the other. In conditions where
IlgS are attached, building width is the
;' tion between buildings which shall be ex-
ssed via a change in architectural expression,
. a vertical element running from ground to
f,. change in fenestration or style, color or
ture, or a break in facade plane or roof line.
t' changes m~~ be subtle or significant, but it
ntent to aVOid' homogenous blocks of exces-
l long buildings.
;Innade or arcade: A covered, open-air walk-
I standard sidewalk level attached to or
~gral with the building frontage; structure
r,ad is supported architecturally by columns
1 es along the sidewalk.
Jwelling area: The total internal useable space
aIfloors of a structure, not including porches,
c.ies, terraces, stoops, patios, or garages.
<'rant porch: A roofed area, attached at the
I floor level or first floor level, and to the
1 f a building, open except for railings, and
,port columns.
.den wall: A freestanding wall along the
~y line dividing private areas from streets,
!ys, and or adjacent lots.
Iht: The vertical distance from the lowest
'It on the tallest side of the structure to the top
Iaparapet, cornice or eave.
,a,. building: A building built in front of a
king garage, cinema, supermarket etc., to con-
llrge expanses of blank wall area and to face
eet space with a facade that has doors and
. ows opening onto the sidewalk (see diagrams
Ition 20-324). Parking garages and their
may be built at different times.
,at: A single building plot; the smallest legal
'rent of land which may be bought and sold.
p'O 1
ZONING
~ 20-323
Lot frontage: The property line adjacent to the
frontage street.
Marquee: A permanently roofed architectural
projection the sides of which are vertical and are
intended for the display of signs; which provides
protection against the weather for the pedestrian;
and which is supported entirely from an exterior
wall of a building.
Primary Space or Street: The space or street
that a building fronts. At squares and street
intersections the space or street highest in the
hierarchy is the primary street.
Stoop: A small platform and/or entrance stair-
way at a house door, commonly covered by a
secondary roof or awning.
Storefront: Building frontage for the ground
floor usually associated with retail uses.
Structured parking: Layers of parking stacked
vertically.
(Ord. No. 707, ~ HExh. A), 6-12-00)
Sec. 20-323. Permitted uses.
[(a) Uses permitted. The following uses shall
be permitted in the Thwn Center District;]
Administrative public buildings
Adult congregate living facility
Advertising agencies
Alcoholic beverage sales (package)
Alcoholic beverage on-premesis consumption
Alterations and tailoring
Amusement enterprises, private commercial
Antique and gift shop
Appliances, sales and service
Artists' studios
Automotive accessories sales
Bakery, wholesale and retail
Bathroom accessories
Bed and breakfast inn
Bicycles, sales and service
Bookstores, stationery, newsstands
Bookkeepers
Butcher shop, retail only
Carpets, rugs and linoleum
Churches (with or without educational and
recreational buildings and facilities)
Cleaners
Coin dealers
1342.3
( ....
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~ 20-323
WlNTER SPRINGS CODE
I
Computers, hardware, and software sales and
service
Confectionery and ice cream stores
Convention center
Corner store or neighborhood convenience store
without gas pumps
, Dance and music studios
Day nurseries, kindergartens and day care
Drug and sundry stores
Employment agencies
Financial institutions, banks, savings and loan
Florist and gift shops
Furniture, retail, new and used
Government service facilities
Grocers, retail and wholesale
. Gun shop
Hardware stores
Health food
Hobby and craft shops
Home occupations
Hospitals and nursing homes
Hotel
Hypnotists
Inn
Insurance
Interior decorating and draperies
Jewelry stores
Libraries
Loan companies
Locksmiths
Luggage shops
Manufacturing and assembly of scientific and
optical precision instruments
Markets and stores, small (Not exceeding 20,000
square feet)
Medical clinics and laboratories
Municipal Buildings
Nurseries, plants, trees, etc., Retail and whole-
sale
Nursing Homes
Offices
Outdoor signs sales offices
Paint store
Parking garages
Parks and public recreation areas and facilities
Pet shops and grooming
Photographic studios
Physical fitness and health clubs
Post office
Private clubs and lodges
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Stipp, No.1
1342.4
Public restrooms
Public utilities and. service structures'
Quick printers .:~~,
Radio and TV broadcasting studios, eicl'
towers ' .
Radio and TV sales and service
Rental stores . ,._,
. : . '-~,
Retirement homes, including independerit
ing through assisted living . . ,,':;.;JJ'
Residential, single family (attached', :&i~i
tached) '<-;f,
Residential, multifamily ,':d
Restaurants;",.,"
Schools, service and vocational schools (~~:
cosmetology, medical and dental ass" 1
training)
Shoe repair shops
Sidewalk cafes
Snack shops
Sporting goods, retail
Tailoring shops
Taxidermists
Telephone business office and exch~~
Theaters, not drive-ins . "'/.
Title companies
Tobacco shops
Town Center marketing and salescen. '
Toy stores .,
Trail heads
Travel agencies
Wearing apparel stores '.
... .,~,~
Any other similar retail store or btiSin
terprise not listed, that in theJ~d
of the development reviewco~tiit
not specifically limited to otl:!.er'
districts within the city and'iV
with those included above, 8#
that will be in harmony with tp
the Winter Springs TownCen,
Plan.
(b) Uses permitted by special except~
-':1.;,
1'~.
Automobile repair shops (routinese'
Bowling alleys
Bus terminal
Car wash ' ",:
Corner store or neighborhood convero,EiDce
with gas pumps . .
Equestrian facilities
Gas stations
Launderettes and laundromats
printers, commercial
Schools, private and parochial
Skating rinks
Stadiums and arenas
Swimming pools; sales service and supplies
Veterinary clinics (no overnight boarding)
(Ord. No. 707, ~ l(Exh. A), 6-12-00)
Sec. 20-324. General provisions.
The following general provisions apply to all
street types.
(1) Corner radii and clear zones: Corner curb
radii shall be between nine (9) feet and
fifteen (15) feet. Fairly tight turning radii
shorten pedestrian crossings and inhibit
reckless drivers from turning corners at
high speeds. To allow for emergency vehi-
cles (e.g. fire trucks) to turn corners, a
twenty-five-foot radius clear zone shall be
established free of all vertical obstruc-
tions including but not limited to tele-
phone poles, sign poles, fire hydrants,
electrical boxes, or newspaper boxes.
. ._. _.. _.. _. I
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25' ~o....loN L:""~~
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(2) Alleys: Alleys are required in the town
center to minimize curb cuts and to pro-
vide access to parking and service areas
behind buildings. Alley requirements may
be waived by the DRC for access to de-
tached single family residential lots greater
than fifty-five (55) feet in width in situa-
tions in which proper streetfront orienta-
tion, pedestrian circulation, and parking
can still be accomplished. Alley locations
and dimensions are not fixed but shall be
designed to accommodate the alley's pur-
SuPp. No. 1
ZONING
~ 20-324
pose. Additional curb cuts shall be added
only with the permission of the develop-
ment review committee. Alleys may be
incorporated into parking lots as drive
aisles and fire lanes.
(3) Exceptions from build-to lines: Exceptions
from build-to lines may be granted by the
development review committee for avoid-
ing trees with calipers greater than eight
(8) inches.
On corner sites (within fifty (50) feet of
the corner) with build-to lines set back
from the property line, building frontage
may be positioned forward of the build-to
line up to the property line, provided it
does not encroach upon the clear zone.
(4) Side and rear setbacks: No side or rear
setbacks are required in the Town Center.
(5) First floor height for residential: Residen-
tial uses on the first story shall have
finished floor height raised a minimum of
two (2) feet above sidewalk grade.
(6) Diversity of building widths: No more
than three (3) residential buildings twenty
(20) feet or less in width are permitted
within any two hundred (200) feet offront-
age.
(7) Accessory structures: Accessory structures
are permitted and may contain parking,
accessory dwelling units, home occupa-
tion uses, storage space, and trash recep-
tacles. Home occupation uses are re-
stricted to owner plus one (1) employee,
shall not include noxious or disruptive
functions, and may not disrupt parking
for neighboring residents.
Accessory structures shall not be greater
than six hundred twenty-five (625) square
feet in footprint and shall not exceed two
(2) stories in height.
(8) Drive-throughs: Drive-through service win-
dows are permitted in the rear in mid-
1342.5
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LandAmerica
Commercial Real Property Solutions
File No. 00016
LAND SALES
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18673
00016
LAND SALE 1
(Stratford Point)
LOCATION
This property is located along the north side of State
Road 46, east of County Road 15 and west of North White
Cedar Road, in Sanford, Seminole County, Florida.
LEGAL
DESCRIPTION
Lots 88 and 95, Florida Land Colonization Company
Limited, W. Beardall's Map of St. Joseph's, according to
the Plat thereof as recorded in Plat Book 1, Page 114,
Public Records of Seminole County, Florida.
Less Rights-of-Way for State Road 46 and less and except
the Lift Station Parcel as recorded in Official Record
Book 3887, Page 345, of the Public Records of Seminole
County. Lying in Section 28, Township 19 South, Range
30 East.
Lengthy legal retained in appraisers' file.
TAX I.D.
(S-T-R), 16-19-30-5AC-00OQ-0880
GRANTOR
Melissa Ann, Inc. (as to an undivided 51 % interest), Trust
Company of Colorado as custodian for i) Ronald L.
Weindruch (as to an undivided 20% interest); ii) Jerome
Rhattigan as to an undivided 17% interest; Hi) Thomas S.
Bainbridge (as to an undivided 9% interest) and Jerome
Rhattigan, individually as to an undivided 3 % interest
GRANTEE
Stratford Point Limited Partnership
SALE DATE
July 31, 2000
SALE PRICE
$2,670,000
FINANCING
Cash to Seller, financed by a $2,800,000 acquisition loan
funded by Key Bank National Association
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18673
00016
LAND SALE 1
(Stratford Point)
VERIFICATION
With
Kurt Kehoe, representative of Picerne Development
Corporation, partner in partnership
By
Michael D. Dabby
RECORDED
O.R. Book 3895, Page 1800, Seminole County, Florida
DESCRIPTION
Site
The site consists of approximately 19.8 acres, all of which
is usable. The site is essentially rectangular in shape, except
for a small portion of the northeast corner measuring 40 feet
by 55 feet. The site has almost 646 feet of frontage along
the north side of State Road 46 and extends north a distance
of almost 1,340 to Narcissus Avenue (an unpaved road
which is not necessary to improve), along which it has
almost 606 feet of frontage. The site was balanced and
needed no excess fill. Utilities are to the site and did not
require a lift station. Storm water drainage is entirely on-
site.
Improvements
There were no improvements to the site at the time of sale.
PROPOSED USE
The site was subsequently improved with a 384 unit
apartment complex with 2, 3 and 4-bedroom units, named
Stratford Point.
ZONING
PD, city of Sanford
COMMENTS
The northeast corner of the site was improved with a lift
station by the city of Sanford for the benefit of the subject
property and surrounding lands.
ANALYSIS
This sale reflects a price of $134,848, per acre, or $6,953
per unit.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18356
00016
LAND SALE 2
(Cypress Lakes At Waterford)
LOCATION
This property is located at the northeast corner of Alafaya
Trail and Waterford Lakes Parkway, in an unincorporated
section of Orange County, Florida.
LEGAL
DESCRIPTION
Lengthy; retained in appraiser's files.
TAX I.D.
(S.T.R) 22-22-31-0000-00-082
GRANTOR
Residential Communities of Florida, Inc.
GRANTEE
Cypress Waterford Associates, Ltd.
SALE DATE
June 8, 2000
SALE PRICE
$2,907,200
VERIFICATION
With
Christian M. Swann, President of Seller
By
William F. Bennett, November 28, 2001
RECORDED
O.R. Book 6025, Page 4120, Orange County, Florida\
DESCRIPTION
This site is rectangular in shape, containing a total of
18.62 acres, all of which is usable. It has approximately
972 feet of frontage on the east side of Alafaya Trail and
823 feet of frontage along the north side of Waterford Lakes
Parkway. The site is slightly elevated to the south and all
utilities available. The site uses on-site storm-water
retention.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18356
00016
LAND SALE 2
(Cypress Lakes At Waterford)
(Cont'd)
PROPOSED USE
The property was purchased for the construction of a
316 unit apartment complex.
ZONING
PD, Planned Development, Orange County, Florida.
ANALYSIS
This sale indicates a unit price of $9,200 per unit, or
$156,133 per acre and a density of 16.97 units per acre.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18357
00016
LAND SALE 3
LOCATION
This property is located along the west side of Alafaya Trail
just south of Stoney brook Boulevard in an unincorporated
section of Orange County, Florida.
LEGAL
DESCRIPTION
Lengthy legal description retained in appraiser's files.
TAX LD.
(S.T.R.) 02-23-31-0000-00-006
GRANTOR
Stoneybrook Joint Venture
GRANTEE
Alafaya Trail Rentals, Inc.
SALE DATE
January 5, 2001
SALE PRICE
$2,156,000
VERIFICATION
With
Veronica Petree, Representative of Buyer
By
William F. Bennett, November 6, 2001
RECORDED
O.R. Book 6171, Page 1007, Orange County, Florida
DESCRIPTION
This site is highly irregular in shape, containing a total of
22.389 gross acres and 19.00 net acres. The site has
1,494.68 feet of frontage along the west side of Alafaya
Trail and an estimated average depth of approximately
778.11 feet. The site is level and at road grade with all
utilities available.
PROPOSED USE
This property was purchased for the purposes of
constructing a 308 unit apartment complex.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18357
00016
LAND SALE 3
(Cont'd)
ZONING
PD, Planned Development, Orange County, Florida.
COMMENTS
According to the verifying source, this property will be
developed with on-site retention. This property is located in
a growing residential area, but much of this area remains
undeveloped. This property was already designated
Medium Density by Orange County at the time of the sale.
ANALYSIS
This sale reflects a unit price of $7,000 per square foot, or
$113,474 per acre and a density of 16.21 units per acre.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18674
00016
LAND SALE 4
(Victoria Place)
LOCATION
This property is located along the north side of Waterford
Lakes Parkway, immediately east of and adjacent to
Cypress Lakes at Waterford Apartments, in an
unincorporated area of east Orange County, Florida.
LEGAL
DESCRIPTION
A portion of Southeast 1/4 of Section 22, Townshsip 22
South, Range 31 East, Orange County Florida.
Lengthy legal description retained in appraisers' file.
TAXI.D.
(S-T-R), 22-22-31-0000-00-037 changed to 22-22-31-9056-
00-010
GRANTOR
Waterford Commercial Land Joint
GRANTEE
Victoria Place Apartments, LLC
SALE DATE
August 1, 2001
SALE PRICE
$2,980,700, plus credits amounting to $222,500 for a total
price of $3,203,200
FINANCING
Cash to Seller, financed by a $24,628,136 acquisition and
development loan funded by First Union National Bank
VERIFICATION
With
Tom Settle, representative of PAC Land Development
Corporation, partner in partnership
By
Michael D. Dabby
RECORDED
O.R. Book 6332, Page 6296, Orange County, Florida
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18674
00016
LAND SALE 4
(V ictoria Place)
DESCRIPTION
Site
The site consists of approximately 22.042 acres, all of
which is usable. The site is irregular in shape with
approximately 905 feet of frontage on a curved portion of
Water ford Lakes Parkway. The site was balanced and
needed no excess fill. Utilities are to the site and did not
require a lift station. Storm water drainage is partially off-
site.
Improvements
There were no improvements to the site at the time of sale.
PROPOSED USE
The site was subsequently improved with a 364 unit
apartment complex with 1, 2 and 3-bedroom units, named
Victoria Place.
ZONING
PD, Orange County
COMMENTS
The contract for the site reflected a price of $8,800 per
unit, but was subsequently adjusted to accommodate extra
costs of off-site landscaping and spoil to be taken off-site.
ANALYSIS
The original price of $3,203,200 reflects a price of
$145,336 per acre, or $8,800 per unit.
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18675
00016
LAND SALE 5
(Woodland Lakes)
LOCATION
This property is located along the east side of Curry Ford
Road extension, southwest of Alafaya Trail in the
Woodland Lakes PD, in an unincorporated area of east
Orange County, Florida.
LEGAL
DESCRIPTION
Lengthy legal description retained in appraisers' file.
TAX I.D.
(S-T-R), A portion of 33-22-31-0000-00-002, changed to
33-22-31-0000-00-002
GRANTOR
Lockheed Martin Corporation
GRANTEE
Woodland Apartments, LLC
SALE DATE
February 15, 2002
SALE PRICE
$2,364,000, plus $75,000 for lift station,; total of
$2,439,000
FINANCING
Cash to Seller
VERIFICATION
With
Bill Tew, listing agent
By
Michael D. Dabby
RECORDED
O.R. Book 6462, Page 4566, Orange County, Florida
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LandAmerica
Commercial Real Property Solutions
File No. 00016
18675
00016
LAND SALE 5
(Woodland Lakes)
DESCRIPTION
Site
The site consists of approximately 22 acres, of which
approximately 17 acres are net usable. The site is highly
irregular in shape due to the surrounding wetlands. The
site has approximately 1,900 feet of frontage along the
extension of Curry Ford Road. The site wraps around a
storm water pond for Curry Ford Road, but does not have
the benefit of use of the pond. Utilities were extended to
the site by the seller and a lift-station was required to be
installed by the buyer. Storm water drainage is on-site.
Improvements
There were no improvements to the site at the time of sale.
PROPOSED USE
The site is proposed to be improved with a 292 unit
apartment complex to be named Woodland Lakes.
Construction has not begun as of late May 2002.
ZONING
PD, Orange County
COMMENTS
The site was purchased prior to final permitting, but no
discount was allowed for early purchased.
ANALYSIS
This sale (including the cost of the lift-station) reflects a
price of $143,471 per acre, or $8,353 per unit.