Complete Self-Contained Current Valuation On · Christopher J. Kohler State-Certified General Appraiser 2417 John N. Miller ... valuation for tax purposes and the intended user of

Complete Self-Contained Current Valuation On: March 16, 2008 One West First Street Fort Myers, FL 33901 Land.5991 Prepared For: The Client & Intended User(s): Mr. Albert AzoguiI Fort Myers Development, LLC 2150 West First Street, Unit 2B Fort Myers, FL 33901 Report Date: March 17, 2008 Prepared By:

610 South Albany Avenue Tampa, FL 33606 813.254.2885 813.254.0193

INTRODUCTION Certification

One West Fort Myers, FL

Page Beshears & Associates Commercial Property Analysts

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Professional Staff

David W. Beshears, MAI State-Certified General Appraiser 1681

Barry A. Diskin, Ph.D., MAI State-Certified General Appraiser 270

Christopher J. Kohler State-Certified General Appraiser 2417

John N. Miller State-Certified General Appraiser 2889

John D. Cordova State-Certified General Appraiser 2879

Michael E. Green State-Certified General Appraiser 2330

Randall J. Planthaber State-Certified General Appraiser 2993

Valerie Nash Gregory State-Certified General Appraiser 2750

Kevin Nogues State-Registered Trainee Appraiser 21884

Stephen Palinkas State-Registered Trainee Appraiser 19560

Lara Leigh Beckwith State-Registered Trainee Appraiser 19984

Rachel Fulmer State-Registered Trainee Appraiser 21986

• Commercial Property Valuation • Auto Service Valuation Group • Estate Valuation • Cost Segregation Analysis • Valuation For Financial Reporting

610 South Albany Ave. Tampa, Florida 33606 813.254.2885 813.254.0193 fax [email protected] www.Beshears.net

March 17, 2008 Mr. Albert AzoguiI Fort Myers Development, LLC 2150 West First Street, Unit 2B Fort Myers, FL 33901 RE: One West

First Street Fort Myers, FL 33901

Mr. AzoguiI: As requested, we have completed a detailed investigation, analysis, and appraisal of the above-mentioned property. The property is described in the accompanying summary report as defined in the Uniform Standards of Professional Appraisal Practice (USPAP). The appraisal report conforms to the appraisal requirements of the Standards of Professional Appraisal Practice, as required by law and by the standards of the Appraisal Institute. The report also conforms to Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"), [Pub. L. No. 101-73, 103 Stat. 183 (1989)], 12 USC. 3310, 3331-3351, and Section 5(b) of the Bank Holding Company Act, 12 USC. 1844(b); Part 225, Subpart G: Appraisals; Paragraph 225.62(f). This Complete Self-Contained includes documentation and exhibits in support of the value conclusions. We have maintained all materials collected during the analysis and investigation in our files. These records are available for your review at a mutually agreeable time. On November 12, 2007, we conducted the necessary investigations and analysis incident to performing an appraisal and producing a self-contained report on the above reference property for IStar Financial. The subject consists of two adjacent parcels containing 5.32-acres of land that are located on the north side of West First Street, on the east and west side of Altamont Avenue, also fronting the Caloosahatchee River. The site was formerly improved with a 178 unit hotel that was razed for the development of One West, a 420-unit luxury condominium project. The subject is zoned PUD, Urban Core and is fully entitled and permitted for the development of a 420-unit luxury condominium project. We were asked by our client IStar Financial to give the market value of the Fee Simple interest of the land as of March 16, 2008 . In the appraisal dated November 12, 2007, we reported the as is market value of the fee simple interest in the 5.32 acre subject site proposed for a 420-unit luxury condominium project was $35,700,000. This is a current valuation for tax purposes and the intended user of this report is Fort Myers Development, LLC. We have conducted an analysis and search of current market conditions and we have inspected the property as of March 16, 2008. Based on our investigations and analysis the estimated as is market value of the fee simple interest in the 5.32 acre subject site proposed for a 420-unit luxury condominium project is $35,700,000. Extraordinary Assumptions ⎯ We have not made any extraordinary assumptions in valuing the subject property. Hypothetical Conditions ⎯ We have not any hypothetical conditions associated with the value of the subject. We appreciate the opportunity to work with you on this assignment. If questions remain, please contact me at your convenience. Cordially,

D a v i d W. B e s h e a r s , M A I State-Certified General Appraiser - 0001681

Services Provided

INTRODUCTION Certification



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This is to certify that, upon request for valuation by Mr. Albert AzoguiI, Fort Myers Development, LLC, 2150 West First Street, Unit 2B, Fort Myers, FL 33901, we have personally inspected, collected and analyzed various data, and appraised the market value of the Fee Simple Interest of the One West, located at First Street, Fort Myers, FL 33901. The property is more fully described in the accompanying report.

We certify that, to the best of our knowledge and belief:

The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial and unbiased professional analyses, opinions, and conclusions.

We have no present or prospective interest in the property that is the subject of this report, and have no personal

interest or bias with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our

compensation for completing this assignment is not contingent upon the development or reporting of a pre-determined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the

Uniform Standards of Professional Appraisal Practice.

John D. Cordova and Kevin A. Nogues have personally inspected the property that is the subject of this report. David W. Beshears, MAI has not personally inspected the subject property.

No one has provided significant professional assistance other than the persons signing this report.

The Appraisal Institute provides a mandatory continuing education program for designated members. As of the

date of this report, David W. Beshears, MAI has completed the requirements of the continuing education program of the Appraisal Institute.

Unless otherwise stated in this report, we have no knowledge of any hidden or unapparent conditions of the

subject site, (including wetlands or unstable soil), or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the subject site more or less valuable. We have assumed that there are no such conditions and make no guarantees or warranties, express or implied, regarding the condition of the property. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of site engineering or environmental hazards, this report must not be considered as an engineering or environmental assessment of the property. Unless otherwise stated in the report we have assumed the subject site is 100% usable.

Extra Ordinary Assumptions ⎯ We have not made any extraordinary assumptions in valuing the subject property.

Kevin A. Nogues State-Registered Trainee Real Estate Appraiser 21884

S u p e r v i s e d B y : J o h n D . C o r d o v a State-Certified General Appraiser 0002879

S u p e r v i s e d B y : D a v i d W . B e s h e a r s , M A I State-Certified General Appraiser 0001681

INTRODUCTION Table of Contents



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Letter of Transmittal Certification A. HIGHLIGHTS ................................................................................................................................... 7 A.1 Executive Summary Valuation Appraisal Reporting Information B. PROPERTY DESCRIPTION.......................................................................................................... 16 B.1 Site Description B.2 Real Estate Taxes C. MARKET DATA............................................................................................................................. 25 C.1 Regional Overview C2 Local Overview D. HIGHEST AND BEST USE ........................................................................................................... 45 D.1 As Vacant E. LAND VALUATION ....................................................................................................................... 48 F. COST APPROACH...................................................................................................... Not Included G. MARKET APPROACH ................................................................................................ Not Included H. INCOME APPROACH ................................................................................................. Not Included H.1 Income Analysis H.2 Expense Analysis H.3 Valuation Approach I. RECONCILIATION ........................................................................................................................ 62 I.1 Final Value Conclusion I.2 Limiting Conditions J. SUPPORTING DOCUMENTS Qualifications Glossary Letter of Engagement Property Tax Card(s) Property Tax Bill(s) Legal Description

HIGHLIGHTS A.1 Executive Summary



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SECTION A: HIGHLIGHTS



Page 8 Beshears & Associates Commercial Property Analysts

Subject Plat Map:

Subject Aerial:

Regional Map:




SUMMARY TABLE Property Address: One West

First Street Fort Myers, FL 33901

Property Type: Land Site Area: 281,135 Square Feet

6.45 Acres Zoning: PUD - Urban Core Future Land Use: Urban Core Parcel Number(s): 23-44-24-P2-00007.0000 &

23-44-24-P2-0000.0020

PROPERTY DESCRIPTION

Real Estate Tax Assessment: $ 11,699,860

As Vacant: We believe the highest and best use redevelopment with a development with a multi-family residential project consistent with the approved PUD.

HIGHEST AND BEST USE

As Improved: Not Applicable for this analysis

Total Per Land Unit

Land Valuation Value As Is $35,700,000 $85,000

Final Value Fee Simple

VALUE CONCLUSION**

As Is $35,700,000 $85,000

** Contingent on the Extraordinary Assumptions and Hypothetical Conditions located in the Letter of Transmittal (Page 2 & 3) of this report.




APPRAISAL INFORMATION

PURPOSE OF APPRAISAL

The purpose of this Complete Self-Contained is to estimate the market value of the Fee Simple Interest of the subject property, as of the appraisal date of March 16, 2008 , for underwriting a loan.

INTENDED USER The intended user of this report is Fort Myers Development, LLC, The BSR Group, Tel Aviv Stock Exchange, and The Israeli Securities Authority.

INTENDED USE The intended use of this report is to assist the client, and only the client, Fort Myers Development, LLC, The BSR Group, Tel Aviv Stock Exchange, and The Israeli Securities Authority, in their respective tax analysis based on the Fee Simple Interest of the subject property. Note the intended users of this report can publish the appraisal for the public.

APPRAISAL DATE - “AS IS”

Current Valuation on March 16, 2008

APPRAISAL DATE - “AS COMPLETE”

N/A

APPRAISAL DATE - “AS STABILIZED”

N/A

REPORT DATE

March 17, 2008

INSPECTION DATE

The subject was last inspected on March 16, 2008.

INTEREST VALUED INTEREST VALUED Fee Simple Interest

FEE SIMPLE

ESTATE Absolute ownership unencumbered by any other interest or estate, subject only to limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."1

LEASED FEE INTEREST

An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leasee are specified by contract terms contained within the lease.2

MARKET VALUE Market value is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current economic definition agreed upon by agencies that regulate federal financial institutions in the United States of America is:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they

consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of

financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold

unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Substitution of another currency for United States dollars in the fourth condition is appropriate in other countries or in reports addressed to clients from other countries.3

1American Institute, The Dictionary of Real Estate Appraisal, Fourth Edition, (Chicago, IL, 2002), page 113. 2Appraisal Institute, The Dictionary of Real Estate Appraisal, Fourth Edition, (Chicago, IL, 2002), page 161.




SCOPE OF APPRAISAL DEFINED In the 2006 edition of USPAP, scope of work is defined as:

The type and extent of research and analyses in an assignment. The Scope of Work Rule has been added to clarify the role of the scope in appraisal assignments. The following excerpts address the Scope of Work Rule.

For each appraisal, appraisal review, and appraisal consulting assignment, an appraiser must: 1. Identify the problem to be solved:

An appraiser must properly identify the problem to be solved in order to determine the appropriate scope of work. The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results.

Problem identification: An appraiser must gather and analyze information about those assignment elements that are necessary to properly identify the appraisal, appraisal review, or appraisal consulting assignment to be solved. The identification of the problem to be solved requires the appraiser to identify the following assignments elements:

• client and any other intended users; • intended use of the appraiser’s opinions and conclusions; • type and definition of value; • effective date of the appraiser’s opinions and conclusions; • subject of the assignment and its relevant characteristics; and • assignment conditions.

2. Determine and perform the scope of work necessary to develop credible

assignment results:

• The scope of work must include the research and analyses that are necessary to develop credible assignment results.

• An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use.

3. Disclose the scope of work in the report:

The report must contain sufficient information to allow intended users to understand the scope of work performed.

SCOPE OF APPRAISAL REPORT TYPE Complete Self-Contained

PROPERTY

IDENTIFICATION The subject was identified by the legal description and the assessor’s parcel number.

INSPECTION A complete inspection of the improvements and site were made, and photographs were taken.

MARKET AREA AND ANALYSIS

A complete analysis of market conditions was made.

HIGHEST AND BEST USE ANALYSIS

A complete analysis of highest and best use, as vacant, was made.

VALUATION ANALYSES COST APPROACH A complete cost approach was not applied as we are only appraising the land and

not proposed improvements. SALES COMPARISON

APPROACH A complete sales comparison approach was applied.

INCOME APPROACH A complete income approach was not applied as we are only appraising the land.

3Appraisal Standards Board – The Appraisal Foundation, USPAP 2006 Edition, page 194.




APPRAISAL DEFINITIONS OPINION OF VALUE

PROCEDURE In reaching the opinion of market value for the subject, we searched the Fort Myers market area for sales of comparable vacant parcels of land suitable for condominium development that are considered to be similar to the subject property. Utilizing these comparable sales, we were able to determine the market value of the Fee Simple Interest “As Is” of the subject property. On November 12, 2007, we conducted the necessary investigations and analysis incident to performing an appraisal and producing a self-contained report on the above reference property for IStar Financial. The subject consists of two adjacent parcels containing 5.32-acres of land that are located on the north side of West First Street, on the east and west side of Altamont Avenue, also fronting the Caloosahatchee River. The site was formerly improved with a 178 unit hotel that was razed for the development of One West, a 420-unit luxury condominium project. The subject is zoned PUD, Urban Core and is fully entitled and permitted for the development of a 420-unit luxury condominium project. We were asked by our client IStar Financial to give the market value of the Fee Simple interest of the land as of March 16, 2008 . In the appraisal dated November 12, 2007, we reported the as is market value of the fee simple interest in the 5.32 acre subject site proposed for a 420-unit luxury condominium project was $35,700,000. This is a current valuation for tax purposes and the intended user of this report is Fort Myers Development, LLC. We have conducted an analysis and search of current market conditions and we have inspected the property as of March 16, 2008. Based on our investigations and analysis the estimated as is market value of the fee simple interest in the 5.32 acre subject site proposed for a 420-unit luxury condominium project is $35,700,000. When possible, buyers, sellers, and/or others involved in the sales were then contacted to determine further specific information regarding the property and transactions. The available market data were investigated, analyzed, and compared to the similar and dissimilar characteristics of the subject site.

CLIENT AND INTENDED USER

According to the 2006 edition of the Uniform Standards of Professional Appraisal Practice (USPAP), the terms client and intended users are defined as follows: Client – The party or parties who engage an appraiser (by employment or contract) in a specific assignment.

Intended User – The client and any other party as identified by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment.

INTENDED USE As defined by the 2006 edition of USPAP, the intended use of an appraisal is defined as:

The use or uses of an appraiser’s reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.




ASSUMPTIONS AND CONDITIONS EXTRAORDINARY

ASSUMPTION An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in the analysis. We have not made any extraordinary assumptions in valuing the subject property.

HYPOTHETICAL CONDITION

A hypothetical condition is that which is contrary to what exists but is supposed for the purpose of analysis. Comment: Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of the data used in an analysis. We have not any hypothetical conditions associated with the value of the subject.

EXPOSURE TIME The notion of exposure time may not be readily understood. The principal idea is to provide an estimate of the time that a property would have been offered in the marketplace prior to being sold. In the present case, the dates of value estimates are March 16, 2008 , respectively. The exposure time estimate is a measure of the number of days prior to March 16, 2008 that would be necessary to achieve a sale.

Exposure Time is defined as: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market. [USPAP 2006 Edition, page 90.]

For the case at hand, we considered the average number of days on the market; the data we encountered during the verification of comparable sales, if appropriate; and discussions with brokers, lenders, appraisers, and investors, when their cooperation was available. Typically a property would be exposed over a six month to one-year period from the start of the market process to the completion of the sale. This would involve a packaging of the property then the initial marketing in which the investors are contacted and the marketing packages are dispensed to the market in a due diligence, period once a letter of intent has been put in place by an interested party and then an inspection period and finally a closing. We believe that all this can be done with an exposure time of one year.

EXPOSURE TIME FOR SUBJECT PROPERTY

The average exposure period for an Land in the Fort Myers area that are similar to the subject property is six to twelve months, from the initial listing period to the transaction being finalized. We believe the subject could be sold during this time frame.




REPORT TYPE

REPORT TYPE Complete Self-Contained

REPORT TYPE DEFINED

Uniform Standards of Appraisal Practice, Standard Rule 2 states: In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading. This Standard addresses the content and level of information required in a report that communicates the results of a real property appraisal. It does not dictate the form, format, or style of real property appraisal reports. The form, format, and style of a report are functions of the needs of users and appraisers. The substantive content of a report determines its compliance. Uniform Standards of Appraisal Practice, Standard Rule 2-2 states: Each written real property appraisal report must be prepared under one of the following three options and prominently state which option is used: Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report. When the intended users include parties other than the client, either a Self-Contained Appraisal Report or a Summary Appraisal Report must be provided. When the intended users do not include parties other than the client, a Restricted Use Appraisal Report may be provided. The essential difference among these three options is in the content and level of information provided.

APPRAISAL The act or process of developing an opinion of value. [USPAP 2006 Edition]

SELF-CONTAINED APPRAISAL

A written appraisal report prepared under Standards Rule 2-2(a) or 8-2(a) of the Uniform Standards of Professional Appraisal Practice. [USPAP 2006 Edition] The Self-Contained Appraisal Report sets forth the data considered, the appraisal procedure followed, and the reasoning employed in the appraisal, addressing each item in the depth and detail required by its significance to the appraisal and providing sufficient information so that the client and the users of the report will understand the appraisal and not be misled or confused.

SUMMARY APPRAISAL

A written appraisal report prepared under Standards Rule 2-2(b) or 8-2(b) of the Uniform Standards of Professional Appraisal Practice. [USPAP 2006 Edition] A Summary Appraisal Report contains a summary of all information significant to the solution of the appraisal problem. The essential difference between a self-contained appraisal report and a summary appraisal report is the level of detail of presentation.

RESTRICTED APPRAISAL

A written appraisal report prepared under Standards Rule 2-2(c), 8-2(c), or 10-2(b) of the Uniform Standards of Professional Appraisal Practice. [USPAP 2006 Edition] A Restricted Use Appraisal Report is for client use only. The restricted use appraisal report should contain a brief statement of information significant to the solution of the appraisal problem. State is the distinguishing term related to the Restricted Appraisal Report.




APPRAISAL PROCESS The appraisal process is the orderly program, in which the data used in estimating the

value of the subject are acquired, classified, analyzed and presented. The first step in this process involves defining the appraisal problem, identifying the real estate, stating the effective date of the value estimated determining the property rights being appraised, and specifying the type of value being sought. Once the components of the first step have been accomplished, the appraiser begins the data collection process and, subsequently, an analysis of the factors that affect the market value (or other type of value) of the subject, including area and neighborhood analyses, site and improvement analyses, highest and best use analysis, and the application of the traditional and appropriate approaches used in estimating property value. Appraisers generally use or consider three approaches in estimating value: the Cost Approach, the Sales Comparison Approach (also known as the market approach), and the Income Approach. The Cost Approach to value deducts accrued depreciation from the cost new of the improvements. The result is added to the land value. The sum of the land value and the depreciated cost of the improvements indicate the value of the whole property via cost approach, and generally, the land value is obtained via the Sales Comparison approach. Reproduction/replacement cost new is estimated on the basis of current prices for the component parts of the building and depreciation analysis considers the disadvantages of deficiencies of the existing building as compared to a new building. The Sales Comparison approach is used to estimate either both the land as if vacant and the whole property as improved. The approach involves gathering data regarding sales of similar properties and analyzing the nature and condition of each sale. Subsequently, the analyst makes logical adjustments to the sale prices of the comparable properties for the various dissimilar characteristics between the subject and each of the properties used in the analysis. Typically, a common denominator is found. In land value, this usually involves either a price per square foot, price per acre, or price per unit. In improved properties, the common denominator involves such units as price per square foot, price per unit or gross rent multiplier. The Sales Comparison approach is based on upon the principle of substitution and is a good indicator of the property being appraised when sales of highly similar properties are available. The Income approach is predicated on the assumption that there is an identifiable relationship between the amount of income a property will earn and its value. A number of appraisal principles form the basis of this approach, with the principle of anticipation being particularly applicable. This principle affirms “value is created by the expectation of benefits to be derived in the future”. The income approach is an appraisal technique in which the anticipated annual net income of the subject is processed to arrive at an indication of value. Net income in the appraisal process is that income generated before payment of any debt service and the process of converting it to value is called capitalization. This involves dividing the net income by a rate, which weighs such considerations as risk, time, interest on the capital investment and recapture of the depreciating asset. The appropriateness of this rate is critical and there are a number of techniques by which it may be developed. A final step in the appraisal process is the reconciliation, or correlation, of the value indications. In the correlation, the appraiser considers the relative applicability of each of the three approaches used, examines the range between value indications, and places major emphasis on the one which appears to produce the most reliable and applicable solution to the specific appraisal problem. The purpose of the appraisal, the type of property, and the adequacy and reliability of the data are analyzed and these considerations influence the weight given to each of the approaches to value.



SECTION B: PROPERTY DESCRIPTION

90 Subject Photographs 1-100 290 Apt Improvement

Description

298 Landscape Frame 250 Gas Station

Improvement Description

299 Portrait Frame

PROPERTY DESCRIPTION B.1 Site Description



SUBJECT PLAT

Address First Street City Fort Myers State FL Zip Code 33901

LOCATION

County Lee

LEGAL DESCRIPTION

Too lengthy to be included herein. Included in Supporting Documents, Section J.

SALES HISTORY ANALYSIS

Owner of Record: Fort Myers Development, LLC

THREE-YEAR OWNERSHIP HISTORY

OF SUBJECT In researching the public records of Lee County, the subject site is identified as Parcel Number(s) 23-44-24-P2-00007.0000 and 23-44-24-P2-00006.0020. According to Lee County Public Records, the subject property was purchased from Riverwalk Hotel and Marina, Ltd. And FCF Development Company in May, 2005 for a total consideration of $15,000,000. This transaction was recorded in OR Book 4714 and Page 2502. The previous owners had owned and operated the property as a Holiday Inn Resort. The subject property had been under contract for approximately one year and eight months while Fort Myers Development approached the city to obtain approval for increased residential density on the site. Approval for development of the 420 units was granted in March, 2005. During this time, the real estate market and more specifically the properties along the riverfront were witnessing rapidly increasing values. This was in part due to the City of Fort Myers’ attempt to redevelop the downtown riverfront area. This further enticed developers to acquire riverfront parcels for high rise development. Over a 16 month period, more than 10 developments were approved by the city. Reportedly, land prices increased from approximately $20,000 to $30,000 per unit to over $100,000 per unit in 2005, which coincides with the peak of the market. Another important note is that there is presently a moratorium on residential development within the subject district, thus making the subject development an even more valuable and marketable tract, since it has all approvals and permits in place already. Again, since acquiring the property, the property owners have taken the project through the entire entitlement process and the project is presently permitted for construction. Based on information provided to us, the developer has incurred approximately $3,100,000 in pre-construction hard and soft costs necessary to bring the project forward to where it stands today. There were no other transactions regarding the subject property over the last three years.

We were provided with the following information sources X Survey by Johnson Engineering November 10, 2006

SURVEY/ SITE PLAN

Site Plan X Public Record: Lee County Property Appraiser and City

of Fort Myers




SUBJECT AERIAL

Unit of Comparison LAND SQ. FT. ACRES Parcel # 23-44-24-P2-00007.0000 184,429 4.23 Gross Parcel Square Feet 281,135 6.45 Wetlands/Environmentally Sensitive Land

0.00 0.00

Submerged Land 210,100 4.82 Land Area affected by Easements 0.00 0.00 Net Parcel Square Feet 281,135 6.45

Land Area Used For Valuation 281,135 5.31

SITE DESCRIPTION

The subject site is a generally rectangular parcel located along the north side of the West First Street on the east and west sides of Altamont Avenue, along the Caloosahatchee River, in Downtown Fort Myers. The parcel is was formerly improved with a Holiday Inn Hotel, which has been razed for the development of a 420-unit luxury high rise condo project. The subject site contains approximately 350 feet of frontage on the north side of West First Street and approximately 279 feet of frontage along the Caloosahatchee River. The overall site contains a total of approximately 281,135 land square feet, or 5.31 acres. A portion of the site which totals 210,100 square feet or 4.82 acres is submerged land under lease to the subject property owners. Access to the site is via West First Street and Altamont Avenue. Additionally, the subject is also accessed by boat from the Caloosahatchee River.

TOPOGRAPHY AND DRAINAGE

The site is level and at or near road grade. Drainage appears adequate and typical for the area with two retention ponds on site.

SOILS

A soil analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soil report, it is a specific assumption that the sites have adequate soils to support the highest and best use.

Water/Sewer Access Utilities Fire/Safety X Public Water X Paved Street X Electric X Municipal Police

Well X Curbs Natural Gas County Sheriff

UTILITY SERVICE

X Public Sewer X Sidewalks X Telephone X Municipal Fire

Septic Tank X Cable County Fire




Zoning Code PUD Zoning Code Definition Urban Core Jurisdiction City of Fort Myers

ZONING CODE

Primary Permitted Uses Permitted uses include residential, retail, lodging, and

office.

ZONING NOTES

The subject property is zoned T6 by ordinance 3263 by the City of Fort Myers. This district allows variances in height restrictions on a case by case basis, as all elements of a project including height, density, architectural, etc. are subject to approval by the city. Again, the subject is an approved PUD, permitted for three condo towers with a maximum number of floors of 32 for the first and third, and 30 for the second, a five-story liner building, and a total of 420 condo and loft units. The developer plans to begin construction of Phase I in the near future and anticipates completion of Phase I 24 months following commencement.

Impact Fee Estimate $N/A Concurrency Required to achieve rezoning approvals

Level of Service N/A

CONCURRENCY AND IMPACT FEES

Virtually all real estate markets in the state of Florida must now contend with strict growth control legislation. The 1985 Florida Growth Management Act limits new development to the capacity of existing or planned and funded infrastructure. The Florida Growth Management Act has at its heart the concurrency provision. The Concurrency Requirement has the principle purpose of assuring that adequate infrastructure including transportation, sewer and water, schools and fire protection is in place prior or concurrent with new developments. Generally, concurrency is defined as follows adequate infrastructure is in place or specifically planned at the time a development permit is issued or when impact of the development necessitates mitigation. Insufficient infrastructure capacity can restrict new development even if a proposed use meets all other zoning and land use codes. Many communities have begun charging impact fees on new development to pay for infrastructure required under the concurrency requirement.

Roadway level of service (LOS) is a qualitative assessment of the road user's perception of the quality of flow. Much like a student's report card, the letters “A” through “F” represents LOS, with "A" generally representing the most favorable driving conditions and "F" representing the least favorable. The LOS reflects the quality of flow as measured by a scale of driver satisfaction. The definitions and measures of LOS reflect a national consensus of driver quality of flow. The indicated level of Service designates the lowest quality operating conditions for the 100th highest volume hour in predominant traffic flow direction from the present through a 20-year planning horizon. The 100th highest hour approximates the typical peak hour during the peak season.

ENVIRONMENTAL & ENGINEERING

CONDITIONS

Unless otherwise stated in this report, we have no knowledge of any hidden or unapparent conditions of the subject site, (including wetlands or unstable soil), or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the subject site more or less valuable. We have assumed that there are no such conditions and make no guarantees or warranties, express or implied, regarding the condition of the property. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of site engineering or environmental hazards, this report must not be considered as an engineering or environmental assessment of the property. Unless otherwise stated in the report we have assumed the subject site is 100% usable.

EASEMENTS COVENANTS,

CONDITIONS AND RESTRICTIONS

There are no other known covenants, conditions and restrictions impacting the site which are considered to affect the marketability or highest and best use, other than zoning restrictions. We have assumed that typical utility and drainage easements are in place. Therefore, we have valued the subject as free of easements.




FEMA Map # 1251060010B FEMA Flood Zone Map Date November 15, 1984 FEMA Flood Zone A10I We have provided the Flood Zone Information as an informational service. All readers of this report should use this information with caution. Beshears & Associates does not warrant this information, nor is Beshears & Associates qualified to analyze this information to determine the Flood Zone for the subject property. In order to make decisions involving the Flood Status for the subject property, we highly recommend that a licensed surveyor certify the Flood Zone Status of the subject property.

ZONE DEFINITION C, X These codes identify areas that are outside the 500-year flood level.

B This code identifies an area above the 100-year flood level but within the 500-year flood level.

A This code identifies an area inundated by 100-year flooding, for which no BFEs have been determined.

AE This code identifies an area inundated by 100-year flooding, for which BFEs have been determined.

AH This code identifies an area inundated by 100-year flooding (usually an area of ponding) for which BFEs have been determined; flood depths range from 1 to 3 feet.

A0 This code identifies an area inundated by 100-year flooding (usually sheet flow on sloping terrain), for which average depths have been determined; flood depths range from 1 to 3 feet.

A0 (Alluvial Fan) This code identifies an area inundated by 100-year flooding (usually sheet flow on sloping terrain), for which average depths and velocities have been determined; flood depths range from 1 to 3 feet.

A99 This code identifies an area inundated by 100-year flooding, for which no BFEs have been determined. This is an area to be protected from the 100-year flood by a Federal flood protection system under construction.

D This code identifies an area of undetermined but possible flood hazards.

FLOOD ZONE STATUS & ELEVATION

V This code identifies an area inundated by 100-year flooding with velocity hazard (wave action); no BFEs have been determined.

VE This code identifies an area inundated by 100-year flooding with velocity hazard (wave action); BFEs have been determined.

PROPERTY DESCRIPTION B.2 Real Estate Taxes



Current Real Estate Taxes and Assessments — The subject property is assessed and taxed by Lee County for 2007 and identified as Parcel Numbers 23-44-24-P2-00007.0000 and 23-44-24-P2-00006.0020. For the 2007 taxes, the subject currently has a total just market value of $11,699,860. The total assessed value is $11,699,860, or 100.00% of the just market value. Applying the millage rate of 18.5942 indicates a tax liability of $208,848, or $0.90 per land square foot, when adjusted for a 4% early payment discount.

Folio/Tax Parcel #

Land Value Improvement Value

Extra Feature

Value

Combined Value

23-44-24-P2-00007.0000 $8,669,910 $691,270 $0 $9,361,18023-44-24-P2-00006.0020 $2,338,680 $0 $0 $2,338,680 Just (Market) Value $11,008,590 $691,270 $0 $11,699,860Just (Market) Value Per Land SF $50.48 Total Assessment Value $11,699,860Homestead Exemption N/ATaxable Value $11,699,860Assessment as a % of Just Market Value 100.00%Millage Rate 18.5942Gross Real Estate Taxes (Ad Valorem only) $217,550Net Real Estate Taxes (w/ 4% early payment discount)

$208,848

CURRENT TAXES AND

ASSESSMENTS

Net Real Estate Taxes Per Land SF $0.90



SUBJECT PHOTOGRAPHS One West

Subject Photo 1 Subject Photo 2





SECTION C: MARKET ENVIRONMENT

MARKET ENVIRONMENT C.1 Regional Overview


Beshears & Associates Commercial Property Analysts

24

REGIONAL ANALYSIS

The following information was obtained using the following sources: Florida Trend, April 2006 (Annual Economic Yearbook), eFlorida, Fishkind & Associates, Florida Chamber of Commerce and edponduk.com, Economy.com, Inc. and Netstate.com. Information pertaining to the entire State of Florida will be presented first followed by the Southwest Region statistics and finally Lee County.

FLORIDA

The State of Florida covers 65785 square miles, making it the 22nd largest state within the United States. Specifically, Florida’s land area contains 53,997 square miles, while Florida’s water area contains 11,761 square miles making Florida the 3rd wettest state behind Alaska and Michigan. Florida is bordered by Georgia and Alabama to the north, Alabama and the Gulf of Mexico to the west, and the Atlantic Ocean to the east and south. It is near the countries of the Caribbean, particularly the Bahamas and Cuba. At 345 feet (105 m) above mean sea level, Britton Hill is the highest point in Florida and the lowest highpoint of any U.S. state. Contrary to popular belief, however, Florida is not entirely "flat." Some places, such as Clearwater, feature vistas that rise 50 to 100 feet (15–30 m) above the water. Much of the interior of Florida, typically 25 miles (40 km) or more away from the coastline, features rolling hills with elevations ranging from 100 to 250 feet (30–76 m) in many locations. Lake County holds the highest point of peninsular Florida, Sugarloaf Mountain, at 312 feet (95 m).

HISTORY

Archaeological finds indicate that Florida had been inhabited for thousands of years before any European settlements. Of the many indigenous people, the largest known were the Ais, the Apalachee, the Calusa, the Timucua and the Tocobago tribes. Juan Ponce de León, a Spanish conquistador, named Florida in honor of his "discovery" of the land on April 2, 1513, during Pascua Florida, a Spanish term for the Easter season. From that date forward, the land became known as "La Florida." The area of Spanish Florida diminished with the establishment of English colonies to the north and French colonies to the west. Great Britain gained control of Florida diplomatically in 1763 through the Peace of Paris (the Castillo de San Marcos surrendered for the first time, having never been taken militarily). Britain tried to develop Florida through the importation of immigrants for labor, including some from Minorca and Greece, but this project ultimately failed. Spain regained Florida after Britain's defeat by the American colonies and the Treaty of Paris, in 1783. Finally, in 1819, by terms of the Adams-Onís Treaty, Spain ceded Florida to the United States in exchange for the American renunciation of any claims on Texas. On March 3, 1845, Florida became the 27th state of the United States of America. On January 10, 1861, before the formal outbreak of the Civil War, Florida seceded from the Union; ten days later, the state became a founding member of the Confederate States of America. The war ended in 1865. On June 25, 1868, Florida's congressional representation was restored. Until the mid-twentieth century, Florida was the least populous Southern state; however, the local climate, tempered by the growing availability of air conditioning, made the state a haven, and migration from the Rust Belt and the Northeast sharply increased the population. Economic prosperity combined with Florida's sudden elevation in profile led to the Florida land boom of the 1920s, which brought a brief period of intense land development before the Great Depression brought it all to a halt. Florida's economy would not fully recover until WWII. Today, Florida is the most populous state in the South besides Texas, and the fourth most populous in the United States.




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POPULATION

According to eFlorida, Florida has the fourth largest population in the United States, estimated at 17.8 million residents in 2005 a 2.3% increase from 2004.

Population of Florida & the United States 2000-2005

Year Florida % Change Unites States % Change Florida’s Population as a % of the U.S.

2005 17,789,864 2.3% 296,410,404 0.9% 6.0% 2004 17,385,430 2.3% 293,656,842 1.0% 5.9% 2003 16,993,369 1.9% 290,850,005 1.0% 5.8% 2002 16,677,860 2.0% 287,984,799 1.0% 5.8% 2001 16,350,565 1.9% 285,107,923 1.0% 5.7% 2000 16,048,887 6.2% 282,193,477 3.5% 5.7%

With an average 5-year population growth rate of 10.4%, Florida's population is projected to outpace the nation for the next two decades. By 2030, the projected population in Florida is expected to increase more than 40% from current levels.

Population Projections for Florida & the United States 2010-2030

Year Florida (thousands)

% Change From Previous 10 Year Period

United States (thousands)

% Change From Previous 10 Year Period

2030 28,686 10.7% 363,584 4.0% 2025 25,912 10.7% 349,439 4.1% 2020 23,407 10.4% 335,805 4.2% 2015 21,204 10.1% 322,366 4.3% 2010 19,252 9.9% 308,936 4.5%

Florida, the nation's fourth most populous state, is growing at a much faster rate than the nation. Since 2000, Florida has added over 1.7 million residents, an increase of nearly 11.0%. Over this same period, the total U.S. population only grew by 5.0%. According to U.S. Census Bureau projections, Florida will overtake New York as the nation's third most populous state as early as 2020.

LABOR FORCE & EMPLOYMENT

With an abundance of job opportunities, Florida continues to experience rapid labor force growth. From 2004 to 2005, Florida's labor force has increased at a rate more than double that of the nation as a whole.

Florida & the United States Labor Force Year Florida Annual Growth United States Annual Growth 2005 8,653,669 2.9% 149,298,833 1.3% 2004 8,407,060 2.5% 147,386,083 0.6% 2003 8,199,241 1.5% 146,503,167 1.1% 2002 8,077,257 1.0% 144,857,083 0.8% 2001 7,998,062 1.6% 143,768,917 0.8% 2000 7,869,690 2.1% 142,585,750 2.3%

Growth in Florida's total employment, non-agricultural employment and private employment continues to increase at rates higher than the nation's. Annual unemployment rates in Florida have consistently been below the U.S. average. Florida is a national leader in job creation. Florida is transitioning somewhat, from an agricultural and tourism based economy to more of a high-tech and business based economy. This trend is particularly noticeable in Central Florida where the development of high-tech, high-wage employment is abundant. Florida’s mild climate and favorable business environment continue to attract big business to the state. AeA, the nation’s largest trade association representing all segments of the high-tech industry, today




26

released its ninth annual Cyberstates report detailing national and state trends in high-tech employment, wages, exports, and other key economic factors. The report, Cyberstates 2006: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia and Puerto Rico. Florida was the second fastest growing state with high-tech industry employment jumping by 6,700, for a total of 265,500 in 2004, the most current state data available. The only state to add more tech jobs was Virginia. In addition to strong employment growth, Florida also experienced an increase in both technology exports and venture capital investments. Tech exports, which represent 33.0% of Florida's total exports, grew by $1.5 billion in 2005, the largest increase in the nation. Venture capital investments in Florida also grew by 23.0% in 2005. Statewide, employers created 176,500 jobs in 2005 making Florida the fastest growing job market in the country. Professional and business services account for more than a third (70,000) of the 172,300 new jobs statewide last year. The state is 41.0% more reliant on these jobs than the nation as a whole. On average, Florida jobs in this industry pay $34,500 a year. Additionally, more than 67.0% of those business and professional service jobs were concentrated in employment services, which include holiday workers and hurricane cleanup employment. The construction industry added 14,700 jobs as the housing and condo boom is continuing to feed economic growth throughout the state. Meanwhile, the leisure and hospitality industry added 21,000 new jobs.

Florida Employment Top Employers Industry Employers

Walt Disney World 53,500 Sector FL US Publix Supermarkets 49,105 Construction 6.1% 5.2% Adventist Health System 32,000 Manufacturing 5.3% 11.2% Wal-Mart Stores, Inc. 23,139 Durable 65.5% 61.8% Jacksonville Naval Air Station 17,048 Nondurable 34.5% 38.2% Pensacola Naval Air Station 15,630 Transport/Utilities 3.1% 3.7% Universal Orlando 14,500 Wholesale Trade 4.3% 4.3% Mayport Naval Station 13,914 Retail Trade 12.6% 11.5% Eglin Air Force Base 13,429 Information 2.4% 2.5% BellSouth Corporation 13,065 Financial Activities 6.7% 6.1% University of Florida 12,297 Prof. & Business Services 17.2% 12.3% American Express Company 12,000 Education & Health services 12.1% 12.8% Winn-Dixie Stores, Inc. 11,062 Leisure & Hospitality Services 11.1% 9.3% Orlando Regional Healthcare System 10,735 Other Services 4.3% 3.9% Jackson Memorial Hospital 10,000 Government 14.5% 16.6%

Unemployment rates in Florida have generally fared consistent with or better than, the national average. Over the past several years, Florida's unemployment pattern exemplifies the state's resilient and diversified economy.

Florida & the United States Unemployment Rates Year Florida % Change United States % Change 2005 3.8% -0.9% 5.1% -0.5% 2004 4.7% -0.6% 5.5% -0.5% 2003 5.3% -0.4% 6.0% 0.2% 2002 5.7% 1.0% 5.8% 1.0% 2001 4.7% 0.8% 4.7% 0.8% 2000 3.8% -0.2% 4.0% -0.3%




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ECONOMY

The gross state product of Florida in 2005 was $596 billion. Personal income was $30,098 per capita, ranking 26th in the nation. Florida's economy relies heavily on tourism. Approximately 60 million visitors visit the state every year. Warm weather and hundreds of miles of beach attract vacationers from around the world. The Walt Disney World Resort, a mega-resort consisting of four theme parks, more than twenty hotels, water parks, shopping centers, and other attractions, is an important tourist attraction located in Lake Buena Vista. Together, Walt Disney World, and other theme park resorts such as Universal Orlando Resort and Sea World, are important drivers of the Central Florida economy. Other major industries include citrus fruit and juice production, banking, and phosphate mining within the Bone Valley region. With the arrival of the space program at Kennedy Space Center in the 1960s, Florida has developed a sizeable aerospace industry. The state did not have a state minimum wage law until November 2, 2004, when voters passed a constitutional amendment establishing a state minimum wage and mandating that it be adjusted for inflation every six months. Historically, Florida's economy was based upon cattle farming and agriculture (especially sugarcane, citrus, tomatoes, and strawberries). In the early 1900, land speculators discovered Florida, and Plant and Henry Flagler developed railway systems, which led people to move in, drawn by the weather and local economies. From then on, tourism boomed, fueling a cycle of development and tourism that overwhelmed a great deal of farmland. In 2004 and 2005, key industries along the west coast—commercial fishing and water-based tourist activities (sports fishing and diving)—were threatened by outbreaks of red tide, a discoloration of seawater caused by an efflorescence of toxin-producing dinoflagellates. Florida is one of the nine states that do not impose a personal income tax. The state imposes a tax on "intangible personal property" (stocks, bonds, mutual funds, money market funds, etc.), but in April, 2006, the state legislature was considering a repeal of the tax. The state sales tax rate is 6%. Local governments may levy an additional local option sales tax of up to 1.5%. A locale's use-tax rate is the same as its sales-tax rate, including local options, if any. Use taxes are payable for purchases made out of state and brought into Florida within six months of the purchase date. Other taxes are mostly levied on businesses. They include the following taxes: corporate income, communication services, intangibles, unemployment, solid waste, documentary stamps, insurance premium, pollutants, and various fuel taxes

GOVERNMENT

The basic structure, duties, function, and operations of the government of the State of Florida are defined and established by the Florida Constitution, which establishes the basic law of the state and guarantees various rights and freedoms of the people. The state government consists of three separate branches: judicial, executive, and legislative. The legislature enacts bills, which, if signed by the governor, become Florida Statutes. The Florida Legislature is comprised of the Florida Senate, which has 40 members, and the Florida House of Representatives, which has 120 members. The current Governor of Florida is Republican Jeb Bush, brother of U.S. President George W. Bush and son of former U.S. President George H. W. Bush. The Florida Supreme Court consists of a Chief Justice and six Justices.




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EDUCATION

Florida's public primary and secondary schools are administered by the Florida Department of Education. Florida's public-school revenue per student and spending per $1,000 of personal income usually rank in the bottom 25.0% of U.S. states. Average teacher salaries rank near the middle of U.S. states. Florida is home to many well-respected institutions, such as University of Florida, the University of Miami, Florida State University, Stetson University, the University of Tampa, and Eckerd College. Overall, Florida has over 80 universities, colleges and community colleges.

TRANSPORTATION

Florida's interstates, state highways and U.S. Highways are maintained by the Florida Department of Transportation. Florida's interstate highway system contains 1,473 miles (2,371 km) of highway, and there are 9,934 miles (15,987 km) of non-interstate highway in the state, such as Florida state highways and U.S. Highways. Florida's primary interstate routes include:

• I-4, which bisects the state, connecting Tampa, Lakeland, Orlando, and Daytona Beach, having junctions with I-95 at Daytona Beach and I-75 at Tampa.

• I-10, which traverses the panhandle, connecting Jacksonville, Lake City, Tallahassee and Pensacola, having junctions with I-95 at Jacksonville and I-75 at Lake City.

• I-75, which enters the state near Lake City (45 miles west of Jacksonville) and continues southward through Gainesville, Ocala, Tampa's eastern suburbs, Bradenton, Sarasota, and Fort Myers to Naples, where it crosses the "Alligator Alley" as a toll road to Fort Lauderdale before turning southward and terminating in Hialeah having junctions with I-10 at Lake City and I-4 at Tampa.

• I-95, which enters the state near Jacksonville and continues along the Atlantic Coast through Daytona Beach, Melbourne/Titusville, Palm Bay, Vero Beach, Fort Pierce, Port Saint Lucie, Stuart, West Palm Beach, and Ft. Lauderdale before terminating in Miami, having junctions with I-10 at Jacksonville and I-4 at Daytona Beach.

Florida's secondary interstate routes include:

• I-110, a spur from I-10 into downtown Pensacola. • I-175, which connects I-275 to southern downtown St. Petersburg. • I-195, an extension of Miami's Airport Expressway (S.R. 112); a spur eastward from I-95 to

Miami Beach. • I-275, a sixty-mile (100 km)[12] westward loop from I-75 north of Ellenton, over the Sunshine

Skyway Bridge, through St. Petersburg, to Tampa International Airport and downtown Tampa, reconnecting with I-75 in Tampa's northern suburbs.

• I-295, a partial beltway around Jacksonville that will loop completely around the city by 2007. • I-375, which connects I-275 to northern downtown St. Petersburg. • I-395, an extension of Miami's Dolphin Expressway (S.R. 836); a spur eastward from I-95 to

Miami Beach. • I-595, which connects I-75, I-95, Fort Lauderdale-Hollywood International Airport and Port

Everglades.

Florida has several toll roads, totaling 515 miles (830 km) of the state highway system. Major toll roads




29

include: • I-75, as it passes through the Everglades between Naples and Fort Lauderdale has been

grandfathered as a toll road from its original construction as S.R. 84 • Florida's Turnpike, which begins at Interstate 75 south of Ocala and continues southeast through

Orlando, Port Saint Lucie, and south through the western suburbs of Fort Lauderdale and Miami to Homestead

Florida's major international airports, which process more than 20 million passengers annually are Fort Lauderdale-Hollywood International Airport, Miami International Airport, Orlando International Airport, and Tampa International Airport. Secondary airports, with annual passenger traffic exceeding 7 million annually include Jacksonville International Airport, Palm Beach International Airport (West Palm Beach), and Southwest Florida International Airport (Fort Myers). Other smaller, regional airports with commercial service include those at Daytona Beach, Fort Walton Beach, Gainesville, Key West, Melbourne, Naples, Panama City, Pensacola, Tallahassee. Orlando Sanford International Airport is primarily served by international charter airlines.

SPORTS

Professional sports play a vital role in Florida’s economy. Florida is home to three professional football teams including the Jacksonville Jaguars, the Tampa Bay Buccaneers and the Miami Dolphins; two professional basketball teams including the Orlando Magic and the Miami Heat; two professional hockey teams including the Tampa Bay Lighting and the Miami Panthers; two professional arena football teams including the Tampa Bay Storm and the Orlando Predators; and two major league baseball teams including the Tampa Bay Devil Rays and the Florida Marlins. Florida is proud to hold several championship titles including three Super Bowls (Miami Dolphins (2) and the Tampa Bay Buccaneers); one Stanley Cup title (Tampa Bay Lighting); one World Series title (Florida Marlins); seven ArenaBowl titles (Tampa Bay Storm (5) and the Orlando Predators (2); and one NBA Championship (Miami Heat). Additionally, Florida is home to 13 minor league baseball teams, 9 men’s soccer teams, 6 women’s soccer teams, 4 minor league hockey teams, 5 minor league basketball teams 18 spring training teams and 4 auto racing tracks.

CONCLUSION

The outlook for Florida is buoyed by a number of growth drivers including strong in-migration, tourism, financial and business services, defense and high tech. Florida’s tourism industry will benefit from the continued rebound in the national labor market. Defense contractors will remain a stable source of high-wage jobs in the Panhandle, Melbourne and Orlando. With a concentration in simulation, missile and electronics research Orlando’s contractors, for example, are well positioned to benefit from the push toward advanced tactical weapons as well as national and theatre missile defense systems. Venture capital inflows into the state have soared since the second half of 2003, almost entirely due to investments in the software industry. In addition, commercial and government connections with Latin America will be sturdy sources for growth in south Florida. Overall, the economic forecast for Florida is strong and is accepted to remain strong.




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SOUTHWEST REGION

The Southwest Region consists of Charlotte, Collier, and Lee Counties. Information presented herein was obtained from eFlorida.com, August 2006 and the April 2006 Annual Economic Yearbook published by Florida Trend magazine. Nestled on the glittering Gulf shores of Southwest Florida, Charlotte, Collier and Lee Counties beckon individuals and businesses searching for outstanding quality of life and a business community that exudes an innovative, entrepreneurial spirit. Some 600-plus technology businesses call this region home, anchored by a skilled workforce, advanced infrastructure and low business costs. Florida Gulf Coast University and the emerging Florida Gulf Coast Technology and Research Park, are drawing new businesses to the area, and providing existing businesses with the resources they need to innovate and grow. In addition, a $386 million expansion was completed at Southwest Florida International Airport, doubling the capacity of the airport and providing a gateway for domestic and international travelers. Southwest Florida is an exquisite jewel in Florida's landscape. A place where the sparkling blue waters of the Gulf of Mexico produce some of the best shelling in the world on the renowned resort islands of Sanibel and Captiva, and where the unparallel cosmopolitan lifestyle of Naples attracts residents from throughout the world. It is also home to charming towns like Punta Gorda and Fort Myers, ranked by Forbes magazine as two of the Best Places for Business and Careers. Now that Southwest Florida has surpassed the one-million mark in population, a new sound is being heard along side the breaking surf. It is the sound of excitement, innovation and technology, as the world discovers Southwest Florida is a place for business success in a lifestyle-rich setting. Within the overview we will review the Southwest Region’s Population, Labor Force, Employment/Unemployment, Personal Income/Per capita Income, Foreign Companies, the Cost of Living and Housing Prices. The following table is a summary of the region’s economic indicators.

Southwest Region : Economic Indicators Population, 2005 1,009,536 Labor Force, 2005 473,484 Total Employment, 2005 458,755 Unemployment Rate, 2005 3.10% Personal Income, 2004 (billions) $33.8 Per Capita Income, 2004 $34,917 Foreign -Affiliated Companies, 2005 30 Cost of Living Index, 2005 (U.S. Average = 100) 97.9 Median Home Price, 2005 $325,633

POPULATION




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In 2005, Florida’s Southwest Region was home to over 1 million people, an increase of nearly 40.6 thousand from 2004. This region’s growth rate continues to outpace that of the state and the nation, with domestic migration accounting for 90.0% of its net migration. With the addition of these new residents, the Southwest Region’s racial and ethnic mix continues to become increasingly diverse. The population of the Southwest Region is relatively older than that of the state as a whole. For the past ten years, the Southwest Region’s population has grown at a rate faster than that of the state and of the nation. Between 1995 and 2005, the Southwest Region’s population grew by an estimated 287,343 people, or about 40.0%, while that of the state and the nation grew by 22.4% and 11.3%, respectively. From 2004 to 2005, this region gained about 40.6 thousand people, at an annual growth rate of 4.2%, to bring its total population to an estimated 1,009,536 people.

1980 1990 2005 2015 2030 Florida 9,746,961 12,938,071 17,789,864 21,767,500 26,419,200

Southwest Region 349,697 598,187 1,009,536 1,382,700 1,830,700

% of Florida 3.59% 4.62% 5.67% 6.35% 6.92% % Change 71.06% 68.76% 36.96% 32.40%

Source: www.eflorida.com; September, 2006

MIGRATION

In 2005, net migration accounted for an increase of nearly 40,000 people into the Southwest Florida Region. Of this increase, domestic migration accounted for about 90.0% and international migration about 10.0%. Lee County received the largest number of net domestic immigrants, totaling nearly 27,900. This county alone accounted for about 78% of the Southwest Florida Region’s domestic migration. Collier County led the region in net international migration, with over 2,200 international immigrants, which accounted for 55.0% of the Southwest Florida Region’s share of Florida’s net international migration.

International & Domestic Migration, 2005

Region/County Total Net Migration

Net International

Migration

Net Domestic Migration

% of FL’s Net International

Migration

% of FL’s Net Domestic Migration

% of FL’s Total Net Migration

Florida 349,733 87,222 262,511 100.0% 100.0% 100.0% Southwest 39,974 4,014 35,960 11.4% 4.6% 13.7% Charlotte 1,276 157 1,119 0.4% 0.2% 0.4% Collier 9,171 2,207 6,964 2.6% 2.5% 2.7% Lee 29,527 1,650 27,877 8.4% 1.9% 10.6%

Source: U.S. Department of Commerce, Bureau of the Census

POPULATION BY AGE

The Southwest Region has a relatively older population than the rest of the state. In 2005, 32.0% of Florida’s population, and only 27.0% of the Southwest Region’s population, were 25 years old or younger. In this same time period, the elderly population (65 and over) accounted for 25.0% of Southwest Florida’s population and 17.0% of the population of the state as a whole.

LARBOR FORCE & UNEMPLOYMENT




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Of the region’s three counties, Lee County continued to have the largest labor force in 2005, accounting for more than 56% of the region’s total labor force. Within the region, Lee County also had the lowest unemployment rate, at 2.9% in 2005. The Southwest Region’s unemployment rate has remained lower than the state and national averages for the last ten years. In 2005, the Southwest Region’s unemployment rate of 3.1% was 0.7 percentage points below the state average, and 2.0 percentage points below the national average.

Labor Force & Unemployment, 2005

County/Region Labor Force Unemployment Rate Florida 8,653,669 3.8% Southwest Region 473,484 3.3% Charlotte 62,279 3.8% Collier 144,344 3.2% Lee 266,861 2.9%

Source: U.S. Department of Labor, Bureau of Labor Statistics

EMPLOYMENT The Southwest Region’s rate of employment growth has matched or outpaced that of the state as a whole for the past ten years. Between 1995 and 2005, the region’s employment grew at an average annual rate of 4.8%, while that of the state grew at an average annual rate of 2.3%. In 2005, the Southwest Region employed nearly 459,000 people, making up 5.5% of the state’s total employment. This is an increase of 7.4%, or more than 31,790 employed persons, from the previous year. Over the last ten years, the Southwest Region’s total employment has increased from 288,862 in 1995 to 458,755 in 2005, an increase of nearly 60.0%, or almost 170,000 employed people.

The Professional and Business Services and Trade, Transportation & Utilities industries accounted for the largest shares of the Tampa Bay Region’s 2004 employment (total employment numbers below vary from those used in previous graphs due to different methods of data collection in the BLS surveys used.)

Employment and Wages by Industry, 2004 Southwest Region

Industry Number of Establishments

Total Employment

Employment Share (%)

Average Annual Wage ($)

Natural Resources 254 11,205 3.1% $20,314 Construction 4,879 46,384 13.0% $37,153 Manufacturing 827 10,153 2.8% $35,844 Trade, Transportation & Utilities 6,077 74,470 20.9% $31,431 Information 340 6,443 1.8% $45,398 Financial Activities 3,818 20,428 5.7% $46,388 Professional & Business Services 5,614 41,430 11.6% $37,229 Education & Health Services 2,318 54,608 15.3% $39,199 Leisure & Hospitality 2,374 49,324 13.8% $19,957 Other Services 2,638 12,311 3.5% $26,436 Public Administration 271 16,528 4.6% $41,050 Unclassified 361 443 0.1% $31,605 Total 29,766 356,828 100.0% $33,823

Source: U.S. Department of Labor, BLS, Employment and Wages




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PERSONAL INCOME/PER CAPITA INCOME

In 2004, the total personal income of the Southwest Region exceeded $33.8 billion, which was about 6% of the total personal income of the state. Of the region’s three counties, Lee County accounted for the greatest share of personal income, totaling $17.0 billion, and accounting for over 50% of the region’s total personal income in 2004. After Lee, Collier County contributed the second largest amount of personal income of $12.7 billion. During this same period, Collier County led the region with the highest per capita income of $42,846.

Personal Income, 2004 Region/County Total ($ Billions) Per Capita (Dollars) Florida 547.1 $31,469 Southwest Region 33.8 $34,917 Charlotte 4.1 $26,003 Collier 12.7 $42,846 Lee 17.0 $33,073

Source: U.S. Department of Commerce, Bureau of Economic Analysis The Southwest Region’s total personal income growth has outpaced that of the state and of the nation for the last ten years. Between 1994 and 2004, the Southwest Region’s total personal income increased by 100%. During that same period, the state's total personal income increased by 77.0% and the nation's by 66.0%. The Southeast and Southwest are the only Florida regions whose per capita income has remained above both the state and the national averages for the past ten years. While the Southwest Region’s 2004 per capita income of $34,917 was 6.0% higher than the national average, and about 11.0% higher than the state average, its 10 year growth rate of 44% was actually 5.0% less than that of the nation, and about 1.0% less than that of the state.

Source: U.S. Department of Commerce, Bureau of Economic Analysis

EXPORTS & FOREGIN-AFFLIATED COMPANIES

The Southwest Florida Region’s exports of goods to overseas markets are estimated to exceed $20 million annually. As of 2005, there were 30 foreign-affiliated firms in the Southwest Region, which employed over 1,100 people. The majority of foreign-affiliated firms in the Southwest Region are located in Lee County.

Foreign-Affiliated Companies in the Southwest Region 2006 County Number of Companies Total Employment Average Employment Charlotte 1 20 20 Collier 7 48 7 Lee 22 1,066 48 Total 30 1,134 38

Source: Worldcity, Inc., Enterprise Florida, Inc.




34

COST OF LIVING

The Southwest Region’s cost of living index represents the averages of the cost of living indices of the Punta Gorda-Charlotte County and Fort Myers-Cape Coral metropolitan areas. According to the ACCRA cost of living index, the overall cost of living in the Southwest Region is less than the national average. The Southwest Region has relatively lower cost of living indices than the national averages for grocery items, housing, utilities, and miscellaneous goods and services.

Cost of Living in the Tampa Bay Region-2005 Punta Gorda-Charlotte Ft. Myers-Cape Coral Southwest Region Composite Index 91.8 104.0 97.9 Grocery Items 97.0 97.7 97.3 Housing 82.6 110.2 96.4 Utilities 85.9 102.9 94.4 Transportation 95.4 108.7 102.00 Healthcare 102.2 104.5 103.4 Misc. Goods & Services 97.0 100.2 98.6

Source: ACCRA Cost of Living Index, September, 2006

HOUSING COST The Southwest Region’s median home price is the average median home price of the Fort Meyers-Cape Coral, Naples and Punta Gorda metropolitan areas. The median home price in the Southwest Region grew by 33.5% from 2004-2005. In 2005, the Southwest Region’s median home price of $325,633 was about 39.0% higher than the state average and about 56.0% higher than the national average.

Median Home Prices, 2005 Area Price United States $208,700 Florida $235,100 Southwest Region $325,633 Ft. Myers-Cape Coral MSA $278,200 Naples MSA $482,400 Punta Gorda MSA $216,300

CONCLUSION

Overall, the Southwest Region’s economic indicators are strong resulting in positive growth for the region. These trends are expected to continue throughout the foreseeable future.




35

LEE COUNTY

According to the U.S. Census Bureau, the county has a total area of 652,000 total land acres of which 590 miles is shoreline with 50 miles of white sand beaches. Lee County is bordered by Charlotte to the north, Hendry and Collier Counties to the east, Collier County to the south and the Gulf of Mexico to the west.

HISTORY

Lee County, named in honor of Confederate General Robert E. Lee, was founded in 1887, and originally occupied most of southwest Florida. The partition was motivated by the difficulty of transacting county business in Key West, which could be reached only by boat. The site of the county seat, Ft. Myers, dates from the Seminole War, after which time a settlement grew up around the fort. The name honors the army’s chief quartermaster of Florida, Col. Abraham C. Myers, himself later a Confederate general.

POPULATION

Cape Coral is the largest city in Lee County, followed by Ft. Myers and Bonita Springs. Lee County’s population comprises 53.96% of the Southwest Region (as of 2005). Lee County’s population has experienced steady growth as can been seen from the chart below. Between 1980 and 1990, the population of Lee County increased 63.25%. During 1990 and 2005, the population of Lee County increased 62.55%. Population projections for Lee County are projected to continue to grow at (or close to) the rate of previous growth.

1980 1990 2005 2015 2030 Southwest Region 349,697 598,187 1,009,536 1,382,700 1,830,700

Lee County 205,266 335,113 544,758 741,700 979,000 % of Region 58.69% 56.02% 53.96% 53.64% 53.47% % Change 63.25% 62.55% 36.15% 31.99%

Source: www.eflorida.com; September, 2006

EMPLOYMENT

As of 2005, Lee County’s labor force was 266,861 persons strong. Lee County has reported unemployment at 2.9%, or 7,808 persons. Major industries include Trade, Transportation & Utilities; Education & Health Services; Construction and Leisure & Hospitality. The major employers of Lee County’s private sector include Lee Memorial Health System at 6,473 employees, followed by Southwest FL Regional Medical Center at 1,500 employees, Bonita Bay Group with 1,300 employees and WCI Communities with 1,002 employees.

Lee County – Major Private Sector Employers Employer Number of Employees Lee Memorial Health System 6,473 Southwest FL Regional Medical Center 1,500 Bonita Bay Group 1,300 WCI Communities 1,002 Chico’s FAS, Inc. 750 Pall Aeropower Corporation 420 LYNX Services 405 Source Interlink Companies 331 Heinz North America 282 Gartner 280




36

TOURISM

Lee County, like much of southwest Florida, have long been known as a popular vacation area. Its warm winter climate enables the area to offer golf, tennis, boating, fishing, diving, swimming and many more year-round activities. The area has numerous beach and barrier island locations for boating, sunbathing, and fishing, and also offers numerous public and private golf courses. The area's natural environment is a major attraction as the county offers many nature centers and wildlife sanctuaries. Tourism is a year-round industry in Southwest Florida, and new attractions are continually arising to capitalize on this principle. Major airlines are adding flights to accommodate the 2 million plus tourists who travel to the area annually. The abundance of parks, beaches and wildlife refuges are supplemented by the many sports teams in Lee and Collier Counties. In addition to the semi-pro and professional teams who already call this area home, there is an increasing number of sports tournaments that are choosing Southwest Florida as their venue. In-line hockey, archery, bowling, baseball and boating are all helping to fill approximately 4,000 to 5,000 hotel rooms per month. Additionally, special events such as the Annual American Sandsculpting Championship Festival attract approximately 50,000 visitors to Ft. Myers Beach every year. There are also 156 golf courses for tourists and residents. Because of the tremendous enthusiasm for golf in Southwest Florida, Naples hosts LPGA and Senior PGA golf tournaments each year. Southwest Florida’s climate and beautiful beaches attract a large following of European vacationers during the summer months, boosting the off-season tourist business.

EDUCATION

Lee County contains a total of 61 public schools. Specifically, 35 are elementary schools with 1,872 teachers and 36,864 students. There are 26 secondary schools with 1,811 teachers and 38,715 students. Post secondary education serving Lee County include Barry University, International College, Florida Gulf Coast University, Nova Southeastern University, Southwest Florida College, Edison Community College, Lee County High-Tech Centers (North & Central) and Edu Tech.

GOVERNMENT

Lee County government consists of a five-member Board of County Commissioners providing services to the more than 575,000 residents of Lee County and its cities. Five incorporated cities fall within the county boundaries and include Bonita Springs, Cape Coral, Ft. Myers, Ft. Myers Beach and Sanibel. These municipalities contain some of their own governmental structures as well as depending on the county for support.




37

TRANSPORTATION

Interstate 75 is the county's only fully-controlled-access freeway, and has nine interchanges within Lee County, linking the area to Naples, Fort Lauderdale and Miami to the south and east; and Sarasota and Tampa to the north. The Southwest Florida Expressway Authority is a proposed body including transportation officials from Lee and Collier Counties, to raise toll revenue to widen the freeway beyond the 6-lane expansion currently underway. Conceptual plans include express/local lanes, and/or HOT Lanes. U.S. Highway 41 runs the length of Lee County, and is the county's main north-south arterial highway. It is a major commercial corridor, running as an elevated highway through the center of downtown Fort Myers, continuing south as a multi-lane divided surface highway through the communities of South Fort Myers, San Carlos Park, Estero, and Bonita Springs. From north-to-south, the highway's name starts as "North Tamiami Trail", changes to "Cleveland Avenue" through the incorporated limits of the City of Fort Myers, then changes to "South Tamiami Trail until the border with Collier County. Florida State Road 80 's western terminus is in downtown Fort Myers. The multi-lane highway runs east-northeast along the southern banks of the Caloosahatchee River as "Palm Beach Boulevard" within the county, traversing the state of Florida to connect the area with LaBelle, Clewiston, and West Palm Beach. Florida State Road 82 's western terminus is in downtown Fort Myers. The highway is called "Dr. Martin Luther King Jr. Boulevard" within the incorporated limits of the City of Fort Myers, becoming "Immokalee Road" as it passes through Lehigh Acres and connects the area to Immokalee. Florida State Road 884 is Lee County's main east-west arterial highway. Its western terminus is in the incorporated limits of the City of Cape Coral. Within Cape Coral, the highway is named "Veterans' Memorial Parkway", and is a multi-lane controlled access highway. The road crosses the Caloosahatchee River as an elevated highway across a toll bridge, interchanging with U.S. Highway 41, then becomes a multi-lane divided surface highway through Lehigh Acres. Passenger counts at the Southwest Florida International Airport were up in the beginning of 2003, but have started to decline slightly. In 2002, a total of 5.186 million passengers passed through, which was consistent with the year before at 5.278 million passengers. The airport is currently undergoing a $356 million expansion which is scheduled to open in 2005. This will double the current number of parking spaces and will accommodate an additional 4 million passengers annually. The new terminal will feature up to 65 gates and will replace the existing terminal. The Southwest Florida International Airport is crucial to the economy in Southwest Florida. It currently employs over 1,400 people and has a $2 billion impact on the local economy annually. The expansion taking place will increase the number of jobs to over 8,000 and raise the impact figure by an estimated $648.5 million over the next 5 years. The Port Authorities are assisting in these economic efforts by employing local firms wherever possible for the airport's expansion project, which helps fuel the local construction industry. Page Field, also located in South Fort Myers, just south of the incorporated limits of the City of Fort Myers, is the county's general aviation airport. Prior to the opening of Southwest Florida Regional Airport in 1983 (now Southwest Florida International Airport), Page Field was the county's commercial airport.




38

CLIMATE

One of the chief reasons for the strong rate of growth has been the high quality of life. Principle to this is the moderate climate. The climate of the Lee County is subtropical with the average temperature at 82 degrees; 91 degrees in the summer; 74 degrees in the winter. The average humidity is 76.0%. Temperatures in the costal regions of Florida are moderated by the effects of land and sea breezes, are usually slightly warmer in the winter, and cooler in the summer than most inland locations.

CONCLUSION

Overall, Lee County’s job growth is strong, unemployment is low and population growth is steady. Additionally, the cost of living in Lee County is proximate to the state and lower than the nation’s average. The long term outlook for the county is positive and is expended to remain so for the foreseeable future.

MARKET ENVIRONMENT C.2 Local Market Overview



LOCAL MARKET MAP

MARKET BOUNDARIES

The subject neighborhood is located in downtown Fort Myers, in an area referred to as the “River District”. The neighborhood boundaries are considered to be Colonial Avenue to the south, the Caloosahatchee River to the west and north, and I75 to the east.

MAJOR ROADWAYS

Access to and from the subject’s market area is excellent, with the transportation system serving the subject’s market area being very efficient and a major reason for the areas heavy residential and commercial nature. The following roadways serve the subject area and are summarized below:

Interstate I-75 is a major limited access freeway that serves the entire State of Florida and point northward. With Regards to the subject, it is located approximately 5 miles east and has interchanges with SR 80 and SR 82. First Street is the main east/west arterial in the neighborhood and this street generally follows the riverfront. U.S. Highway 41 (Cleveland Avenue) is a primary north/south commercial corridor in Ft. Myers. U.S. Highway 41 is a four to six lane divided thoroughfare, with a wide variety of traffic oriented commercial development including fast food restaurants, branch banks, convenience stores, shopping centers, office buildings, etc. The land along the U.S. Highway 41 corridor is approximately 99% built out, and becomes less built out towards the southern sections of Ft. Myers and Lee County. Development is very dense at the signalized intersections. Colonial Boulevard (S.R. 884) is a four to six laned divided east/west arterial. East of Immokalee Road, S.R. 884 is known as Lee Boulevard where it continues in an easterly direction through Lehigh Acres. West of I-75, Colonial Boulevard is a heavily traveled six laned east/west thoroughfare




terminating at McGregor Boulevard, proximate to the Caloosahatchee River. West of I-75, Colonial Boulevard is a substantially built up commercial corridor. Memorial Highway is a well traveled arterial in the subject’s market area as it connects to the Veterans Expressway, thus providing access to various employment centers in Hillsborough County. Memorial Highway began a major re-alignment in August 2005 that will improve the traffic flow through the Westshore area. Scheduled completion is Spring 2010.

DEVELOPMENT TRENDS

Ft. Myers is one of the most rapidly growing cities on Florida’s West Coast. Ft. Myers is the commercial, cultural and governmental center of Lee County. The city of Ft. Myers has made a substantial economic commitment to the downtown area. Tax incentives have been given to local merchants, which has caused a resurgence of commercial activity within downtown, including new restaurants, clubs, boutiques, and entertainment venues.

All of the commercial buildings were in need of redevelopment or repair, and Riverfront lots had become an eyesore due to their lack of maintenance. In November 2001, the firm of Duany Plater-Zyberk and Company, led by prominent Architect and Planner, Andres Duany, conducted a development plan in Fort Myers to develop the future vision of downtown. The plan has two primary elements, general controls and specific interventions. The specific interventions are the pilot projects that illustrate how new construction can occur, but they are not mandatory requirements. The general controls are the heart and soul of the plan. The regulating plan and map provided alternative land use in general zoning requirements for downtown, while the smart code provides a detailed zoning regulating mechanism. The plan incorporates Duany’s new (urbanism) design theories where pedestrian areas, retail, and restaurant space all are twined to encourage both living and working in one area. After the success of the first project downtown, several other projects were launched. These projects are within the “River District” and include One West (subject), First Street Village, High Pointe, Legacy Harbor, The Vue, Riverwalk at Sunset, Cypress Club, Prima Luce, Riviera, Saint Tropez, Beau Rivage, Altamar, and Oasis. Because of the rapid pace of development within the River District, the city imposed a moratorium on residential units in the area, with the previously mentioned developments approved prior to the implementation of the moratorium. We interviewed representatives of most of the condo projects along the River Front within the Riverfront District. First Street Village is located across the street from the subject opened its first phase at the end of October, 2007. The first phase includes the much anticipated Publix anchored shopping center and will also contain Starbucks, First Watch Restaurant, Ice Cream Shop, Wine Bar, Nail Salon, et cetera. First Street Village will be a 3-phase development containing approximately 350 residential condominiums, 40,000 sq. ft. of office condominiums, and over 100,000 sq. ft. of retail. First Street Village residents will enjoy a 20,000 sq. ft. lifestyle center including 2-story fitness center, bowling lanes, running track, theatre room, music mixing room, et cetera. High Pointe, located just north of the subject, is a luxury high rise condo which completed tower one at the beginning of 2007 and anticipating completion of tower two by the end of this year. Tower One of High Pointe containing 105 units was completely sold out during the pre-sale period, of which only four contracts fell through. Phase two just started closing on units and have not seen any fallout to date. Units within this project range in size from 1760 to 2258 square feet and prices range from $600,000.00 to $1.5 million, indicating a price per square foot from $340.00 to $665.00 a square foot. Riverwalk at Sunset is a 52-unit luxury town home/villa project located on First Street near the subject. This project, which will feature 52 units ranging a size from 1497 to 3518 square feet, has prices ranging from $699,000.00 to $2.34 million, indicating a price per square foot range of $467.00 to $665.00 per square feet. Discussions with a representative of this project indicated that the project is on hold, and he would not indicate how many units they have pre-sold to date. The Oasis is a condo project located east of the subject on the eastern portion of the River District. The Oasis consists of two towers, both of which will be completed in spring of 2008 and contain 1,079 total units at




completion. The unit size ranged from 850 to 1,850 square feet. However, the developer is tweaking future phases to incorporate larger floor plans, which are in demand within the market place. The sales prices within this project range from $470,000 to $1.3 million which indicates a price per square foot range of $360 to $700. Representatives of the Oasis indicated that 429 units in phase one were pre-sold with 20% hard deposits and to date they have not had any contracts fall out. However, the buildings will not be completed until spring of 2008. The Cypress Club is a luxury condominium located east of the subject and just east of the Edison Bridge. This project contain 292 units ranges in size from 918 to 2,847 square feet with prices ranging from $461,500 to $5.5 million indicating a price per square foot range from $420.00 to $1,931.00. Our attempts to contact representatives of this project were unsuccessful. Saint Tropez is located east of the subject in the eastern portion of the “River District”. Upon completion, this project when completed will contain 150 units ranging in size from 900 to 1,721 square foot with prices ranging from $400,000 to $700,000 indicating the price per sq. ft. range of $335.00 to $475.00 a square foot. Conversations with the representative of this project indicated that all 150 units were closed. Riviera, which is the sister condo project to Saint Tropez, is just completing development of their 170 units unlike the other projects sampled. This project indicates that they had about 20% to 25% fallout of pre-sales. The price point within this development was the same as Saint Tropez ranging from $400,000 to $700,000. Other projects that our continuing through the development process, but have yet to launch construction, include Prima Luce and The Vue. Again, we were unable to confirm the status of these projects. Overall, our conversations with all of the sales representatives within these projects indicated that there has been any recent sales activity that has taken place. However, foot traffic within the respective sale centers has appeared to be picking up compared with the past 12 month’s activity. Many of the projects have 100% of their units pre-sold and are awaiting completion of their respective towers to begin closing on the units. To date, the ones that have been closing units have experienced 20% to 25% fallout ratios, which is better than the previous 12 to 18 months. With regards to the subject project, the developer indicated that the first phase of the project will take approximately 24 months to complete. During this time, the condo and the residential markets should rebound, not necessarily to the levels that we were seeing in 2004 to 2005, but a more typical, stable- to- strong market.

DEMOGRAPHICS

Local Market Snapshot1 Mile 3 Mile 5 Mile MSA Florida Source

POPULATION2007 Population 3,735 58,319 146,386 306,845 17,633,938 STDB Online 11/072012 Population 4,272 70,070 180,646 359,623 19,219,041 STDB Online 11/07Annual Change 107 2,350 6,852 10,556 317,021 STDB Online 11/07% Change 2.7% 3.7% 4.3% 17.2% 9.0% STDB Online 11/07Median Age 49.0 40.2 41.7 43 39.4 STDB Online 11/07HOUSEHOLD2007 Households 1,943 24,525 61,455 126,532 6,822,409 STDB Online 11/072012 Households 2,319 29,894 76,622 149,260 7,283,818 STDB Online 11/07% Change 3.6% 4.0% 4.5% 18.0% 6.8% STDB Online 11/07Owner Occupied Housing Units 25.3% 49.1% 55.0% 52.6% 59.3% STDB Online 11/07Rental Occupied Housing Units 59.7% 36.6% 30.3% 17.3% 25.0% STDB Online 11/07Vacant Housing Units 15.0% 14.3% 14.7% 30.1% 15.7% STDB Online 11/07INCOMEAverage Household Income $109,697 $66,440 $67,716 $72,017 $58,040 STDB Online 11/07Median Household Income $75,493 $49,321 $47,121 $53,543 $42,642 STDB Online 11/07Per Capita Income $53,156 $28,135 $28,142 $30,083 $22,813 STDB Online 11/07




CONCLUSION Overall, the subject’s market area is well located proximate to excellent transportation linkages and significant amount of office space in the Fort Myers CBD. The moratorium on residential development within the River District, along with the subject’s significant water frontage, provides excellent premium characteristics that end users demand. We project a positive outlook for the subject project.



SECTION D: HIGHEST AND BEST USE

HIGHEST AND BEST USE D.1 As Vacant



Methodology — The Highest and Best Use concept is reflective of a basic assumption about real estate and market behavior, that the price a buyer will pay for a property is based on his or her judgment about the most profitable use of the site or property. Therefore, vacant and improved properties tend to be put to their highest analysis considers the site as improved and, therefore, factors in the present improvements to the investment decision. To determine the highest and best use of the subject site, as if vacant and improved, the use must meet four criteria. The highest and best use must be 1) legally permissible, 2) physically possible, 3) financially feasible, and 4) maximally productive. These criteria should usually be considered sequentially; a use may be financially feasible, but this is irrelevant if it is physically impossible or legally prohibited. The first determination reveals the fact that land value is derived for potential land use. Land has limited value and must serve the present or anticipated use for it; the value depends on the nature of the land’s anticipated use. According to the concept of surplus productivity, the highest and best use of a site is that use among all reasonable alternate uses that yield the highest present land values after payments are made for labor, capital and coordination. Legally Permissible — As indicated, the subject property is zoned PUD-Urban Core. Permitted uses include residential, retail, lodging, and office. The subject parcel has a future land use designation of Urban Core. As previously discussed, the subject is an approved PUD with all entitlements, approvals, and permits for the development of a 420 unit luxury high rise condominium project. Physically Possible — Physically possible uses are limited by size, design, topography, flood possibilities, and physical capacities. The subject site is a generally rectangular parcel located along the north side of the West First Street on the east and west sides of Altamont Avenue, along the Caloosahatchee River, in Downtown Fort Myers. The parcel is was formerly improved with a Holiday Inn Hotel, which has been razed for the development of a 420-unit luxury high rise condo project. The subject site contains approximately 350 feet of frontage on the north side of West First Street and approximately 279 feet of frontage along the Caloosahatchee River. The overall site contains a total of approximately 281,135 land square feet, or 5.31 acres. The site is located in Flood Zones A10I. Based upon our inspection of the subject site, it would appear that all legally permissible uses would be physical possible. Financially Feasible — In order for a potential use to be considered a highest and best use, there must be sufficient income to provide an adequate return to both land and improvements. The subject property is well located in the downtown area of Fort Myers with good visibility and access to all major road linkages. Again, the subject property has all necessary approvals, entitlements, and permits in place for the development of a 420 unit luxury high rise condo project that takes advantage of its excellent riverfront characteristics. As we mentioned in the local market overview, the immediate area has several projects in various stages of development, many of which are located along the riverfront. In the case of the subject, the site is located within the Fort Myers CBD, offers approximately 275 feet of water frontage along the Caloosahatchee River (which feeds into the Gulf of Mexico), and provides open water access. The subject’s market area has the demographics in terms of income to support an upscale condominium development with a marina. The condominium market has slowed over the last twelve to eighteen months. We believe this is a temporary slow down in response to the slowdown in the single family market. The Florida real estate market as a whole has reached historic highs over the past three to five years and in our opinion is undergoing a natural correction period. However, the job and population growth into the state of Florida and the anticipated number of baby boomers scheduled to hit retirement age in the coming years all point to a bright future for the state of Florida. Therefore, we believe that the most financially feasible use of the subject property is to develop the site with a multi-family residential project along with a marina and boat slips to take advantage of the good access to the waters of the Caloosahatchee River and the Gulf of Mexico. Maximally Productive — We believe the most maximally productive use for the subject property, as vacant, is for development with a multi-family residential project. Conclusion — We believe the highest and best use redevelopment with a development with a multi-family residential project consistent with the approved PUD.

HIGHEST AND BEST USE D.1 As Vacant



SECTION E: LAND VALUATION

LAND VALUATION E.1 Discussion and Adjustments



Methodology — In order to value the subject site as vacant, we have used the Direct Sales Comparison Approach. The Direct Sales Comparison approach is based on the principle of substitution; in other words, the value of a property should be no higher than the cost to acquire another property offering similar physical or locational attributes. This procedure involves identifying similar properties that have recently sold or are offered for sale, then making adjustments for various dissimilarities having a discernible effect on value. Adjustments are made for such factors as financing terms, changes in market conditions, location and physical characteristics. Thorough our market search of waterfront parcels suitable for multi-family development. We found very few sales transactions over the last 24 months, due primarily to the following two reasons. First, there is a moratorium placed on the Riverfront District for residential development that will last a minimum of five years. At the end of five years, the situation will be readdressed and reportedly a moratorium is likely to be extended out further. Secondly, the residential market boomed from 2000 to 2005, peaking in the third quarter of 2005. At that time all sales transactions virtually ceased with regards to development tracts such as the subject. Currently, the market appears to be in a correction period, but when the market will turn around is difficult to predict. Conversation with market participants indicates that sales traffic has recently picked up substantially from what was witnessed over the last 12 to 18 months, which is a positive sign of renewed market interest. We have identified the following land sales and current listings that we believe are the most comparable to the subject site. The sales are a combination of older 2005 transactions at the peak of market and current listings of comparable properties, all of which offer potential for multi-family development and have riverfront characteristics similar to the subject. In addition, we have also provided a secondary set of comparables located throughout West Central Florida that would also be considered similar to the subject property with regards density, development potential, and location along natural bodies of water. During the verification process, we have attempted to contact buyers, sellers, and/or others involved in the transactions to determine specific information regarding the properties and their respective transactions. In addition, real estate professionals active in the market were consulted as to their knowledge of potentially competitive properties and overall market conditions. Below is a map of the sales comparables used in this analysis and listed on the following page.




Subject Comparable #1 Comparable #2 Comparable #3 Comparable #4 Comparable #5LOCATIONAddress N/S of W. First Street on E & W

Sides of Altamont Avenue2044 West First Street 2681 West First Street 2515 West First Street 3367-3375 E. Riverside Drive 3331 E. Riverside Drive

City/Market Area Fort Myers Fort Myers Fort Myers Fort Myers Fort Myers Fort MyersTRANSACTION DATA

Sale Date Listing Listing Aug-05 Aug-06 Apr-05Sale Amount $24,000,000 $7,250,000 $8,400,000 $1,900,000 $4,255,000 Grantor Marc C. Sullivan, Trustee Paul Steinberg John Lautemann Wilmark Corp. Riverside Village, Inc.

Grantee N/A N/A FM Riverwalk LP Sandpiper Properties Venture Tommy Milz

County Lee Lee Lee Lee Lee LeeOR Book/Page N/A N/A 4865-3469 4680-1195 4680-1195

PROPERTY DATATax ID# 23-44-24-P2-00007.0000 & 23-44-

24-P2-0000.002014-44-24-P3-00001.0000, et

al13-44-24-P2-0020B.0060 13-44-24-P4-00404.0100 07-44-25-P3-00111.0030, et al 07-44-25-P3-00111.0090

Land Area (Acres) 5.32 4.60 0.95 1.95 1.13 2.88 Land Area (SF) 233,982 200,376 41,382 84,768 49,223 125,453# Residenital Units 420 374 62 52 18 46 Units per Acre 78.95 81.30 65.26 26.72 15.93 15.97Zoning/Municipality PUD PUD Urban Center/Urban

Core, CityT6, City A3,City A3,City

Future Land Use Urban Core Urban Core Urban Core Urban Core Urban UrbanUNITS OF COMPARISON AveragePrice Per Unit $97,412 $64,171 $116,935 $161,538 $105,556 $92,500 Price Per Land SF $93.84 $119.77 $175.20 $99.09 $38.60 $33.92ADJUSTMENTSProperty Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee SimpleFinancing Terms Cash Equivalent Cash Equivalent Cash Equivalent Cash Equivalent Cash EquivalentConditions of Sale Arms Length Arms Length Arms Length Arms Length Arms LengthExpenditures After Sale 0.00% 0.00% 0.00% 0.00% 0.00%Market Conditions -10.00% -10.00% -30.00% -30.00% -30.00%

ADJUSTED SALE PRICES Average Price Per Unit $79,414 $57,754 $105,242 $113,077 $73,889 $64,750

PHYSICAL ADJ.Location Similar ↑ Inferior ↑ Inferior ↑ Inferior ↑ InferiorSize Similar Similar Similar Similar SimilarDensity Similar ↓ Superior ↓ Superior ↓ Superior ↓ SuperiorWaterfront Access Similar Similar Similar Similar SimilarSite Improvements ↑ Inferior ↑ Inferior ↑ Inferior ↑ Inferior ↑ InferiorZoning/Permits/Entitlements ↑ Inferior ↑ Inferior ↑ Inferior ↑ Inferior ↑ InferiorADJ. PRICE PER UNIT/ AVG $90,662 $72,193 $126,290 $118,731 $88,667 $77,700

COMPARABLE LAND SALES

Source: Beshears and Associates Research




Data Set — We have utilized three land sales and two listings that we believe are comparable to the subject site. Unit of Comparison — We have analyzed the comparable land sales on a price per residential unit of comparison, which is the most common unit of comparison in the market for properties similar to the subject property. Property Rights Conveyed — An adjustment must be made for difference in the bundle of rights being transferred as part of a sale transaction. All of the comparable sales conveyed the fee simple rights, and therefore, no adjustment is required. Financing Terns — An adjustment must be made for favorable non-third party financing of the comparable improved sales. All the comparable sales sold for cash or with a cash equivalent instrument and, therefore no adjustment is required. Conditions of Sale — An adjustment must be made for any relationships between parties or motivations related to a sale transaction that affected the sale being considered arms length. All of the comparable sales are considered arms length transactions, and therefore, no adjustment is required. Expenditures after the Sale — An adjustment must be made for any expenditure immediately after the closing of a sale transaction. All of the comparable sales reported no such expenditures, and therefore, no adjustment is required. Market Conditions — The adjustment for market conditions presumes that price is not stagnant, but changes over time in response to economic conditions and the interchange between supply and demand forces. If the change in market conditions between the comparable’s transaction date and the appraisal date can be shown to have an effect upon value, the comparable would require an appropriate adjustment. As support for our market time adjustment, we have tried to mimic the thought process of potential residential developers/investors. Given current market evidence and current residential stock due substantially to speculative investment, the market is estimated to fall back into equilibrium within the next 24 to 36 months. Based on discussions with active market participants, typical investors purchasing residential property today ‘build-up’ extra profit into their purchase price, as they will likely have to hold the property for 24 to 36 months before substantial absorption (pre-sales) would commence and/or they could begin development. As such, we will calculate a present value factor to benchmark a typical market discount. This has been applied by utilizing two holding periods, one of 24 months and another of 36 months as well as a 12% discount rate, which is appropriate based on discussions with market participants. This results in the following reversionary value conclusions.

The foregoing indicates that a 21.21% to 30.11% downward adjustment for comparable condominium land sales is reasonably supported. This would only be appropriate if applied to sales of property whose price was negotiated prior to the market having perceived a decreased demand for end units. Once the market recognized the shortfall, it would have begun reflecting this buying behavior. We believe that investors were typically weary in early 2006, and started to show signs of backing out of the market throughout the remainder of 2006. As such, moving into late 2006 investors/developers buying strategies began to change and that they inherently started to mimic the actions of our PV adjustment above, by either not bidding on property or offering a lower purchase price. In comparing properties negotiated prior to 2006, we would need to apply a minimum of 25% to 30% downward adjustment, the magnitude of which would be based on our verifications. Specifically, Comparables 3, 4 and 5 were negotiated in 2005, thus downward adjustments were warranted. Further, we have utilized a downward adjustment of 10% to the listings in our analysis to account for the reality that typically properties do not end up selling for their list price Physical Characteristic Adjustments — We have utilized the following comparables and made certain adjustments to each.




Land Comparable One is located on the north side of West First Street along the Caloosatchee River with a physical street address of 2044 West First Street. The comparable is listed for sale at a price of $36 million. The site is currently improved with a fully operational 131 slip Marina and a leased restaurant. The property is PUD approved for the development of 374 residential multi-family units along with the Marina. 320 of the units would be constructed in twin, 25-story waterfront towers and the remaining 54 units in a 5-story liner building across the street from the Marina. Conversations with the broker indicated that they have placed a $12 million price tag on the Marina and restaurant with the remaining money being attributed towards the 374 approved units. Less the $12 million, the effective purchased price for the condo portion of the property unit is $24 million or approximately $64,171.00 per unit. Adjustments — We have considered the location of the comparable similar to the subject as it is located just east of the subject. Further it has a similar density to the subject, it is already PUD approved, and provides similar waterfront access to the subject. However, we have considered the comparable inferior to the subject due to extra site work required to be at a similar point in the development process as the subject. A upward adjustment has been made.

Land Comparable Two is located on the north side of First Street in Fort Myers along the Caloosatchee River with a physical street address of 2681 First Street. The comparable is currently listed for $7,250,000.00 or $116,935.00 per unit. This site contains 2.28 total acres, of which 0.95 acres is uplands and the remaining is submerged land. It has the potential for 62 residential units with boat slips and subject to city approval. Given the current moratorium on residential development, the property would have to wait until the moratorium was lifted or attempt to gain approval for another type of use including hotel development. Hotel development is a likely scenario. Adjustments — We have considered the location of the comparable inferior to the subject as it is located east of the subject on the eastern border of the “River District”, in an area deemed inferior to the subject. Therefore, an upward adjustment was warranted for location. Further the comparable has a significantly lower density than the subject, thus warranting a downward adjustment. Typically, sites that can be developed with lower density projects sell for more per unit. Lastly, we have deemed this comparable inferior based on its lack of site improvement compared to the subject along with the aforementioned lack of zoning and entitlements. As discussed, the lack of zoning could effect either the timing of the current planned improvements or the type of improvements, each of which would negatively impact price.




Land Comparable Three Comparable three represents the sale of the Riverwalk apartments located along the north side of First Street along the Caloosahatchee River with a physical street address of 2515 First Street in Fort Myers The site was purchased for a total consideration of $8,400,000.00 or $161,538.00 per unit, for the development of Riverwalk at Sunset, a 52-unit luxury town home, villa, and tower condominium project. Adjustments — We have deemed this comparable inferior location as it is east of the subject, in an area deemed inferior to the subject and adjusted upward for. Further, its density of 26.72 units per acres significantly less than the subject thus, requiring adjustments to be made. Moreover, the site was purchased without approvals and permits for the development of the 52-unit Riverwalk at Sunset and was purchased improved with an older apartment facility which needed to be razed. Therefore, upward adjustments are warranted.

Land Comparable Four is located on the north side of East Riverside Drive, along the Caloosahatchee River with a physical street address of 3367 East Riverside Drive in Fort Myers. The site contains 1.13 acres and was improved with two single-family residences at the time of sale. The site was purchased for the development of residential condo at a permitted density of 16 units per acre, or 18 units.

Adjustments — The site was considered inferior and adjustment upward for location as it is also located on the eastern end of downtown, thus warranting an upward adjustment. Further, the site was significantly smaller than the subject and its density of 15.93 units per acre is significantly less than the subject, warranting upward adjustments for size and downward adjustments for density. Moreover, the existing structures need to be razed subsequent to the purchase, requiring additional site costs and an upward adjustment. Lastly, the lack of entitlements is an inferior characteristic and also requires an upward adjustment.




Land Comparable Five is located on the north side of East Riverside Drive along the Caloosahatchee River, with the physical address of 3331 East Riverside Drive at Fort Myers. This comparable was purchased with an existing 31-unit apartment style ALF, single-storey residence, and commercial style CBS structure. The purchase price was $4,255,000 and the permitted density is 16 units per acre, or 46 units.

Adjustments — This comparable is deemed inferior to the subject in terms of location, thus warranting an upward adjustment. The site was inferior to the subject in terms of site improvements. Since it was purchased without entitlements or permits, upward adjustments were warranted. Lastly, the comparable’s density is significantly less than the subject, thus warranting a downward adjustment for a number of units.

Secondary Comparables The following transactions occurred within West Central Florida. The sales represent properties that will be considered similar to the subject as they are high-density condo or multi-family sites with a waterfront orientation. We have listed the transactions in a chart below.

Location Market Sale Date # Units Purchase Price Price Per Unit 7616 Courtney Campbell Cswy

Tampa/Hillsborough 03/2007 252 $20,000,000 $79,365

SE/C US Hwy 41 & Riviera Dunes

Palmetto/Manatee 01/2006 86 $6,200,000 $72,093

NE/Q Rocky Point Drive


1375 Pasadena Ave.

Pasadena/Pinellas 08/2005 185 $31,500,000 $170,270

SW/Q Gandy Boulevard & Westshore


880 N. Osceola Ave.

Clearwater/Pinellas 04/2005 133 $17,500,000 $131,579

As can be seen, the secondary comparables our located from Manatee County north to Hillsborough County and occurred between April 2005 and March 2007. All these projects contain waterfront characteristics and are luxury, high density condominium projects. Comparable One is located on Courtney Campbell Crossway in the Rocky Point area of Tampa with frontage along Tampa Bay. This property was purchased for the development of two 14-story condo towers, 20,000 sq ft of office space, and a 553 space parking garage. The plan also includes amenities and possible shops for resident use along with 33 boat slips. However, at the time of the purchase, the site lacked a submerged land lease providing boat access and therefore is considered inferior to the subject.




Comparable Two was located in Manatee County in the city of Palmetto, within the Riviera Dunes DRI. The site was purchased entitled for 86 residential units. It is located between the Laguna at Riviera Dunes and Bel Mare at Riviera Dunes, which are similar condo projects being developed by Opus and Corvus, respectively. Comparable Three is also located in the Rocky Point area of Tampa along the Courtney Campbell Causeway. The site was formally improved with a Days Inn limited service hotel which has been raised. The property was planned for Oasis Rocky Point, a 108-unit ultra luxury condo that was slated to begin construction at late 2005. Increasing construction costs, coupled with the developer’s lack of experience at this type of development. Numerous soft costs had been incurred by the property owner including full architectural drawings, renderings, marketing, site engineering, et cetera. The new owner, however, will likely rework much of the project with an emphasis on controlling all ultimate development costs. Overall, this property is similar to the subject in that it was purchased fully entitled, even though the new owner is reworking the project. Note, this property is on an irregularly shaped parcel with limited water access, as it is situated on a backwater canal that runs off of old Tampa Bay. Comparable Four is located in South Pasadena, Pinellas County. This transaction represents the assemblage of two adjacent parcels that were purchased for development of high rise condominiums containing 185 units with the ability to support 70 wet slips on submerged lands that are owned in Fee Simple. Note, this site was purchased un-entitled and therefore deemed inferior to the subject. Comparable Five is located in the southwest quadrant of Gandy Boulevard and Westshore Boulevard in South Tampa. The site was purchased entitled with eminent approval for 99 wet slips. Overall, this property is considered similar to the subject. Finally, Comparable Six is located at 880 North Osceola Avenue in Clearwater, Pinellas County. This rectangular shaped parcel, containing 4.79 gross acres, is improved with the Clearwater Bay Marina. The site was acquired for redevelopment with the total of 133 residential condominium units housed in multiple 200-foot tall towers. An additional 44 units were reportedly approved for the site. These units are considered vested density and as condition of the sale, will be transferred to the portion of the site retained by the seller. The seller must reportedly develop this portion of the site in the future in a consistent nature to the adjacent bay project. All of the improvements will be removed from the site and the wet slips will be renovated. Overall, this site which is located in downtown Clearwater, is considered similar to the subject. Value Conclusion per Unit — Before the adjustments, the primary land sales range from $64,171 per unit to $161,538 per unit with a mean of $97,412 per unit. After making the adjustments to the primary comparables, the land sales range from $72,193 per unit to $115,766 per unit with a mean of $87,823 per unit. After placing equal emphasis on each of the comparables, and applying the secondary comparables as additional support, we believe the subject site per unit, has a value in the middle of the range as of the appraisal date of:

420- Units $85,000 per unit = $35,700,000

Final Value Conclusion $35,700,000




SECTION I: RECONCILIATION

950 Gas Station Income Section

10 Apt Reconciliation

RECONCILIATION I.1 Value Conclusion



Methodology — The approaches to value are based on different assumptions, conditions, and principles. The result of each approach differs from the others according to its emphasis. Such a result is usual but must be reconciled into the market value that is reflective of the strengths and weaknesses of each approach. In the process of reconciliation, each of the indicated values must be weighed in light of its dependability as a reflection of the probable actions of users and investors in the market. The final estimate of value may coincide with one of the indicated values from the approaches or it may reflect a weighting of the relative merits of each approach and a final estimate at some adjusted amount. Each of the three approaches, if applicable, generally forms the final estimate of the property’s value. Occasionally, however, the property has unique or unusual features that necessitate a reconciliation of differing indicated values into one estimate of value. This reconciliation procedure brings together the facts and fits them into a cause-and-effect relationship, which culminates in a final estimate of defined value. The conclusion by the Sales Comparison Approach is:

VALUE CONCLUSION** Total Per Land Unit Land Valuation Value As Is $35,700,000 $85,000 Final Value Fee Simple As Is 35,700,000 $85,000

** Contingent on the Extraordinary Assumptions and Hypothetical Conditions located in the Letter of Transmittal (Page 2 & 3) of this report.

RECONCILIATION I.2 Limiting Conditions



1. This appraisal represents the best opinion of the evaluators as to market value of the property as of the

appraisal date. The term "market value" is defined in the appraisal report. 2. The appraisers have no present or prospective interest in the property that is the subject of this report, and

have no interest or bias with respect to the parties involved. 3. No furniture, furnishings, or equipment, unless specifically indicated herein, have been included in our

value conclusion. Only the real estate has been considered. 4. Our analyses, opinions, and conclusions were developed, and this report has been prepared in conformity

with the requirements of the Code of Professional Ethics and the Standards of Professional Practice of the American Institute of Real Estate Appraisers.

5. The statements of fact contained in this report are true and correct; the reported analyses, opinions, and

conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and conclusions.

6. No survey of the property was made or caused to be made by the appraisers. It is assumed the legal

description closely delineates the property and was checked with tax records for accuracy. Drawings in this report are to assist the reader in visualizing the property and are only an approximation of grounds or building plan.

7. No engineering survey was made or caused to be made by the appraisers, and any estimates of fill or

other site work are based on visual observation and accuracy is not guaranteed. 8. No test borings or typing and analysis of sub-soils were made or caused to be made by the appraisers.

Soil of the parcel under appraisal appears firm and solid, typical of the area, and subsidence in the area is unknown or uncommon. The appraisers, however, cannot warrant against such condition or occurrence.

9. Our compensation is not contingent on an action or event resulting from the analyses, opinions, or

conclusions in, or the use of, this report. This appraisal assignment was not based on a requested minimum valuation, a specific valuation or the approval of a loan.

10. Sub-surface rights (minerals, oil, or water) were not considered in this report. 11. Any tracts that, according to the survey, map or plat, indicate riparian and/or littoral rights, are assumed to

go with the property unless easements or deeds are found by the appraisers to the contrary. 12. Information as to the type and variety of trees, shrubs, and other vegetation mentioned in the report are

believed correct from observation and personal knowledge, but no responsibility is assumed for Complete accuracy.

13. It is assumed that there are no structural defects hidden by floor or wall coverings or any other hidden or

unapparent conditions of the property; that all mechanical equipment and appliances are in good working condition; and that all electrical components and the roofing are in good condition. If the client has any questions regarding these items, it is the client's responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise needed to make such inspections. The appraiser assumes no responsibility for these items.




14. The appraisers have carefully inspected any improvements described in the report and any reference as to

termites, dry rot, wet rot, or other infestation was reported as a matter of information by the appraisers, and existence or amount of damage noted, if any, is not guaranteed and the appraisers expressly disclaim any responsibility relating thereto. Inspection by a reputable pest control company is recommended for any existing improvements.

15. All value estimates have been made contingent on zoning regulations and land use plans in effect as of the

date of appraisal and based on information provided by governmental authorities and employees. 16. This appraisal report covers only the premises herein and no figures provided, analysis thereof, or any unit

values derived there from are to be construed as applicable to any other property, however similar they may be.

17. Distribution of the total valuation in this report between land and improvements applies only under the

existing program of utilization. Separate valuations of land and improvements must not be used in any other manner, or in conjunction with any other appraisal and are invalid if so used.

18. Information, estimates, and opinions furnished to the appraiser, and contained in the report, were obtained

from sources considered reliable and believed to be true and correct. However, no responsibility for accuracy of such items furnished the appraiser can be assumed by the appraisers.

19. A diligent effort was made to verify each comparable sale noted in the report. However, as many

principals reside out of the area, or are entities for which no agent could be contacted within the time allowed for completion of this report, certain details of the sales may not have been verified.

20. No responsibility is assumed for matters legal in nature, nor is any opinion rendered herein as to title,

which is assumed to be good and merchantable. The property is assumed free and clear of all liens or encumbrances, unless specifically enumerated herein, and under responsible ownership and management as of the appraisal date.

21. Consideration for preparation of this appraisal report is payment in full by the employer of all charges due

the appraisers in connection therewith. Any responsibility by the appraisers for any part of this report is conditioned upon full and timely payment.

22. The appraisers, by reason of this report, are not required to give testimony in court with reference to the

property herein, nor obligated to appear before any governmental body, board, or agent, unless arrangements have been previously made therefore.

23. Neither all nor any portion of the contents of this appraisal shall be conveyed to the public through

advertising, public relations, news, sales, or other media without the written consent and approval of the appraisers, particularly as to valuation conclusions, identity of the appraisers or firm with which they are connected, or any reference to the Appraisal Institute or the MAI designations. Furthermore, neither all nor any portion of the contents of this appraisal shall be used in connection with any offer, sale or purchase of a security (as that term is defined in Section 2(1) of the Securities Act of 1933) without prior express written consent of the appraiser.

24. Possession of this report or copy thereof does not convey any right of reproduction or publication, nor may

it be used by any but the client, the mortgagee, or its successors or assigns, mortgage insurers, or any state or federal department or agency without the prior written consent of both the client and the appraisers, and, in any event, only in its entirety.




25. Before any loans or commitments are made predicated on value conclusions reported in this appraisal, the mortgagee should verify facts and valuation conclusions contained in this report with the appraiser.

26. This appraisal is based on Completion of projected public or private off-site improvements, as stated in the

report. 27. This appraisal is subject to satisfactory completion of the proposed improvements described in the report.

Construction shall be in substantial conformity with plans and specifications as more fully described in the report. These plans and specifications are assumed to show the intent of the owner or builder, but no responsibility is assumed for their correctness.

28. Cost estimates for construction or reproduction of improvements were prepared from data obtained from

Marshall and Swift and are assumed accurate. 29. Unless specifically stated in the report, the appraisers did not determine the flood plain status of the

property appraised. If such data is available, it is recommended it be obtained prior to any development that might be contemplated.

30. Estimates of expenses, particularly as to assessment by the county property appraiser and subsequent

taxes, are based on study of historical or typical data. Such estimates are based on assumptions and projections, which, as with any prediction, are affected by external forces, many unforeseeable. While all estimates are based on our best knowledge and belief, no responsibility can be assumed that such projections will come true.

31. Liability for this appraisal assignment is limited only to the extent of the fee collected. 32. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly

authorized representatives. 33. We have made a personal inspection of the property that is the subject of this report. 34. No one provided significant professional assistance other than person (s) signing this report. 35. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. We have not made a

specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a Compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in Compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible non-Compliance with the requirements of ADA in estimating the value of the property.

36. Unless otherwise stated in this report, we have no knowledge of any hidden or unapparent conditions of the

subject site, (including wetlands or unstable soil), or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the subject site more or less valuable. We have assumed that there are no such conditions and make no guarantees or warranties, express or implied, regarding the condition of the property. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of site engineering or environmental hazards, this report must not be considered as an engineering or environmental assessment of the property. Unless otherwise stated in the report we have assumed the subject site is 100% usable.




38. Extra Ordinary Assumptions ⎯ We have not made any extraordinary assumptions in valuing the subject property.



SECTION J: SUPPORTING DOCUMENTS

1190 Definitions Engagement Letter

1100 DWB Resume Zoning

1110 Randall Resume Prizm Study

1120 Barry Diskin Resume

1130 Mike Nelson Resume

1140 John Miller Resume

1100 DWB Resume

1190 Definitions



Absorbed Space — Net change in leased spaced between two dates. Absorption — The rate at which land or buildings will be sold or leased in the marketplace during a predetermined period of time, usually a month or a year. Also called “Market Absorption”. Accrued Depreciation — "The difference between an improvement's reproduction or replacement cost and its market value as of the date of the appraisal."4 Appreciation — An increase in the value of property caused by an improvement or the elimination of negative factors. Base Rent — A set amount used as a minimum rent in a lease which also employs a percentage or other allocation for additional rent. Base Year — The year upon which a direct expense escalation of rent is based. Building Classifications — Class “A’ - Building has excellent location and access to attract the highest quality tenant. Building is well managed. Structure is of high quality finish, usually new or competitive with new buildings. Class “B” - Building with good location, management, construction and tenancy. Can complete at low end of Class A. Class “C” - Generally an older building with growing functional and/or economic obsolescence. CBD — Central Business District Concurrency ⎯ Virtually all real estate markets in the state of Florida, must now contend with strict growth control legislation. The 1985 Florida Growth Management Act limits new development to the capacity of existing or planned and funded infrastructure. The Florida Growth Management Act has at its heart the concurrency provision. The Concurrency Requirement has the principle purpose of assuring that adequate infrastructure including transportation, sewer and water, schools and fire protection is in place prior or concurrent with new developments. Generally, concurrency is defined as follows — Adequate infrastructure is in place or specifically planned at the time a development permit is issued or when impact of the development necessitates mitigation. Insufficient infrastructure capacity can restrict new development even if a proposed use meets all other zoning and land use codes. Consumer Price Index (CPI) — A federal government index that measures the change in the cost of a variety of goods and services. Used in loans, purchase agreements and leases as a measure by which to adjust future payments to Reflect inflation. Also called “Cost of Living Index”. Contiguous Space — A block or blocks of adjoining office space. Deed — Generally, a conveying instrument given by the seller to pass fee title to property upon sale. Deed in Lieu of Foreclosure — A deed given by an owner/borrower to a lender to prevent the lender form bringing foreclosure proceedings. Demising Walls — The boundaries that separate a tenant’s space from another tenant’s space and from a public corridor. Depreciation — A loss in value from any cause. Deterioration or physical depreciation is evidenced by wear-and-tear, decay, dry rot, cracks, encrustations, or structural defects. Other types of deprecation are caused by obsolescence, either functional or external. Deterioration is defined as — "Impairment of condition; a cause of depreciation that Reflects the loss of value due to wear-and-tear, disintegration, use in service, any action of the elements."5 4American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 4. 5American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page



Deterioration — “Impairment of conditions; a cause of depreciation that Reflects the loss of value due to wear and tear, denigration, use and service, any actions of the elements”.6 Easement — A right to use the property of another created by grant, reservation, agreement, prescription or necessary implication. It is either for the benefit of land “appurtenant” such as the right to cross A to get to B, or “in gross”, such as a public utility easement. Expense Stop — Provision in a lease establishing the maximum level of operating expenses to be paid by the landlord. Expenses beyond this level are to be reimbursed by the tenant. May be applied to specific expenses only (e.g., property taxes or insurance). External Obsolescence — “An incurable defect caused by negative influences outside the property itself”.7 “External obsolescence is caused by changes outside the property and is defined as — "An incurable defect caused by negative influences outside the property itself."8 Fee Simple Estate — "Absolute ownership unencumbered by any other interest or estate, subject only to limitations of the four powers of government."9 Floor/Area Ratio (FAR) — The ratio of the bulk area of a building to the land on which it is situated. Calculated by dividing the total square foot age in the building by the square foot age of land area. Foreclosure — A proceeding, in or out of court, designed to extinguish all rights, title, and interest of the owner(s) of property in order to sell the property to satisfy a lien against it. Functional Obsolescence — “An element of accrued depreciation; a curable defect caused by a flaw in the structure, material or design”.10 Evidenced by conditions within the property itself. “An impairment of the functional capacity or efficiency of a property or building according to market taste and standards”.11 Grantee — One to whom a grant of property or property rights is made; generally, the buyer. Grantor — One who grants property or property rights; generally, the seller. Gross Building Area — The total floor area of a building excluding unenclosed areas, measured from the exterior of the walls. Gross Lease — A lease that provides that the landlord shall pay all expenses of the leased property, such as taxes, insurance, maintenance, utilities, etc.

91. 6American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 1 7American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 114. 8American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 114. 9American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 120. 10American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 81. 11American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 81.



Highest and Best Use — "The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability."12 HVAC — Heating, ventilating, and air conditioning equipment used in a building. Impervious Surface — A natural or manmade surface (e.g., road, parking lot, roof top, etc.) that forces rainfall to run off rather than infiltrate the ground. Impact Fees — Fees charged by local governments to offset the impact of new development on existing infrastructure and to help pay for new infrastructure. Generally, impact fees are charged for transportation, sewer and water, schools and fire protection. Ingress and Egress — A right to enter upon and pass through the land (public or private) of another. Leased Fee Estate — An ownership interest held by a landlord with the right of use and occupancy conveyed by a lease to others; the right of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.13 Leasehold Estate — Held by a lessee; conveys the right of use and occupancy for a stated term under certain conditions.14 Market Value — "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated;

2. Both parties are well informed or well advised, and each acting in what they consider their own best interest;

3. A reasonable time is allowed for exposure in the open market;

4. Payment is made in terms of cash in US dollars or in terms of financial arrangements

comparable thereto; and

5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions shaped by anyone associated with the sale."15

Month-to-Month Tenancy — A tenancy whereby there is no written lease and rent is paid monthly. Some obligations of the parties (e.g., as to notice of moving or eviction) may exist by statute. Mortgagee — The party that lends the money and receives the mortgage.

12American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 140. 13Appraisal Institute, The Appraisal of Real Estate, Tenth Edition, (Chicago, IL, 1992), p. 6-7 14Appraisal Institute, The Appraisal of Real Estate, Tenth Edition, (Chicago, IL, 1992), p. 6-7 15Title XI, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ("FIRREA"), [Pub. L. No. 101-73, 103 Stat. 183 (1989)], 12 USC. 3310, 3331-3351, and Section 5(b) of the Bank Holding Company Act, 12 USC. 1844(b); Part 225, Subpart G: Appraisals; Paragraph 225.62(f).



Mortgagor — The party that borrows the money and gives the mortgage on the property. MSA — Metropolitan Statistical Area Net Lease — A lease in which the tenant pays, in addition to rent, certain costs associated with a leased property, including property taxes, insurance premiums, repairs, utilities and maintenance. There are also “net-net” (double net) and “net-net-net (triple net) leases, depending upon the degree to which the tenant is responsible for operating costs. Obsolescence — May be divided into two parts, functional and external. Functional obsolescence is defined as — "An impairment of the functional capacity or efficiency of a property or building according to market tastes and standards."16 Pass Throughs — Building and operating expenses that are paid by the tenant under the terms of the lease. Percentage Lease — A lease, generally on a retail business property, in which the rental is calculated as a percentage of sales. There is usually a minimum or “base” rental in the event of poor sales. Plat (Plat Map) — A map dividing a parcel of land into lots, as in a subdivision. Prelease — A signed lease for space in a multi-tenant office building which has not yet received a Certificate of Occupancy. Rentable Area — The rentable area of a floor shall be computed by measuring to the inside finished surface of the dominant portion of the permanent outer buildings walls, excluding any major vertical penetrations of the floor. Value Estimate — An estimate of value that is likely to have applied as of a specific historic date. A value estimate is most frequently sought in connection with appraisals for estate tax, condemnation, inheritance tax and similar purposes. Set-Back Ordinance — Part of a zoning ordinance that regulates the distance from the lot line to the point where improvements may be constructed. Setback Required — The distance from a lot line or other Reference point, within which no structure may be located. Tenant Improvements — Improvements to land or buildings to meet the needs of tenants. May be new improvements or remodeling, and may be paid for by the landlord, the tenant or shared. Tenant’s Rentable Square Foot. — Usable square foot. plus a percentage (the core factor) of the common areas on the floor, including hallways, bathrooms and telephone closets. Usable Area — The usable area of a floor shall be computed by measuring to the finished surface of the office side of corridor and other permanent walls, to the center of partitions that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls. Zoning Ordinance — The set of laws and regulations, generally at the city or county level, that control the use of land and construction of improvements in a given area or zone.

16American Institute of Real Estate Appraisers, The Dictionary of Real Estate Appraisal, Second Edition, (Chicago, IL, 1989), page 81.

Qualifications Of David W. Beshears, MAI

January 2006

EXPERIENCE 5/94 - Present Beshears & Associates, Inc. Tampa, Florida Beshears & Associates is a commercial appraisal and consulting firm, which specializes

in providing valuation services for underwriting and litigation support. With offices in Tampa and Tallahassee, our firm works throughout the state of Florida. Beshears & Associates strives to exceed our client’s expectations with well presented, accurate analysis, and prompt service. Past assignments include office buildings, shopping centers, apartments and heavy manufacturing facilities. Clients include TriNet REIT, KeyCorp, Midland Loan Services, Bank of America, MetLife, Westinghouse, Melitta Coffee, Barnett Bank, SouthTrust Bank, Mellon Mortgage and First Union National Bank.

1/91 - 5/94 Urban Economics, Inc. Tampa, Florida Urban Economics is a commercial appraisal firm with an emphasis in eminent domain

litigation. While there, I appraised office, retail, industrial, land, apartments, hotels and hospitals. Clients included First Union National Bank, NationsBank, Citicorp, Standard Chartered Bank, HomeFed Bank, Aetna Investments, USF&G, PW Funding and INVESCO.

11/87 - 1/91 Cushman & Wakefield Financial Services Group Tampa, Florida The Financial Services Group concentrates on debt and equity financing and exclusive

sale assignments. I exclusively represented and sold properties for Goldome Bank, British American Bank, The Resolution Trust Corporation, The Federal Deposit Insurance Corporation, Prudential Insurance, John Hancock Insurance, and Stone & Webster. Completed transactions totaled over $50 million and included office, industrial, apartments, retail, hotel and land. In addition, I managed two comprehensive consulting assignments for Stone & Webster and Talquin Development Group. Both assignments involved creating a development and disposition plan for large, mixed-use office parks.

99 9/86 - 11/87 Gladstone Associates Washington, D.C. I performed valuation assignments on the commercial real estate portfolios of MONY,

John Hancock Insurance, Paine Webber, and Aldrich, Eastman & Waltch. Valuation assignments were located throughout the United States and included apartments, industrial, office, vacant land, retail and mixed-use projects. I also conducted financial feasibility studies for large, mixed-use developments, comparative analysis studies of major retail markets and acquisition and land use studies.

AFFILIATIONS MAI, Member Appraisal Institute #10332 Florida State Certified General Appraiser #0001681 Florida Real Estate Broker #0469693 EDUCATION The Florida State University Bachelor of Science, College of Business Dual Majors in Real Estate and Marketing

Qualifications Of

John D. Cordova November 2006

Beshears & Associates, Inc. Tampa, Florida 05/04 - Present Beshears & Associates is a commercial appraisal and consulting firm, which specializes in providing valuation services for underwriting and litigation support. With offices in Tampa and Tallahassee, our firm works throughout the state of Florida. Beshears & Associates strives to exceed our client’s expectations with well presented, accurate analysis, and prompt service. Past assignments include office buildings, shopping centers, apartments and heavy manufacturing facilities. Clients include TriNet REIT, KeyCorp, Midland Loan Services, Bank of America, MetLife, Westinghouse, Melitta Coffee, Barnett Bank, SouthTrust Bank, Mellon Mortgage and First Union National Bank. Gillis and Associates, Inc Tampa, Florida 01/01-05/04 Gillis and Associates is an appraisal firm offering both eminent domain and commercial real estate appraisal services. The primary service offered was in the eminent domain arena. Work performed ranged from litigation cases involving road widening, gas pipeline and power line takings, etc. Work performed also included the appraisal of office, retail, industrial, land, single-family residential and multi-family residential units. Clients included Crown Bank and Gold Banks.

Tampa Bay Buccaneers Tampa, Florida08/94-01/01

EXPERIENCE

The Tampa Bay Buccaneers are a professional football team in the National Football League. Duties performed for the organization involved from customer service through 1997. In late 1997, my duties switched to a finance manager in the ticket operations department.

AFFILIATIONS State Certified General Appraiser – License #RZ2879

University of Florida 1992 Bachelor of Science, College of Business Majors in Finance University of Florida 1994

EDUCATION

Masters of Exercise and Sports Science Specialize in Sports Administration

APPRAISAL INSTITUTE COURSES

Course 110 – Appraisal Principles 2001 Course 120 – Appraisal Procedures 2001 Course 310 – Basic Income Capitalization 2003 Course 410 – Standards of Professional Appraisal Practice [USPAP], Part A 2002 Course 420 – Standards of Professional Appraisal Practice [USPAP], Part B 2002 Course 510 – Advanced Income Capitalization 2004 Course 520 – Highest and Best Use and Market Analysis 2004 Course 530 – Advanced Sales Comparison and Cost Approach 2006

Qualifications Of

Kevin A. Nogues May 2007

EXPERIENCE 03/07 - Present Beshears & Associates, Inc. Tampa, Florida Beshears & Associates is a commercial appraisal and consulting firm, which specializes

in providing valuation services for underwriting and litigation support. With offices in Tampa and Tallahassee, our firm works throughout the state of Florida. Beshears & Associates strives to exceed our client’s expectations with well presented, accurate analysis, and prompt service. Past assignments include office buildings, single family and multi-family subdivisions, shopping centers, apartments and heavy manufacturing facilities. Clients include TriNet REIT, KeyCorp, Midland Loan Services, Bank of America, MetLife, Westinghouse, Melitta Coffee, Regions Bank, CIBC, LaSalle Bank, Freemont Loan Services, IXIS, Largo Capital, Fifth Third Bank, Morgan Stanley, Mellon Mortgage and Bank Atlantic.

04/99 – 11/06 Tropical Realty Appraisal Services, Inc. Tampa, Florida Tropical Realty Appraisal Services provides appraisal and consulting assignments

for commercial and residential properties. While there, I appraised land, single family and multi-family subdivisions, office, retail, industrial, apartments, condominiums, and mini storage facilities. Clients included Wachovia, Bank of America, Colonial Bank, Mercantile Bank, Bay Cities Bank, First Citrus Bank, Wells Fargo, Key Bank, SouthTrust, etc.

AFFILIATIONS Florida State Registered Trainee Real Estate Appraiser #21884 EDUCATION Saint Leo University Associate of Arts, Business Administration Completed Coursework Towards Bachelors of Science, College of Business CONTINUING EDUCATION

Appraisal Board Course I Appraisal Board Course II Appraisal Board Course III Appraisal Institute – Basic Income Capitalization Appraisal Institute – Advanced Cost & Sales Comparison Approaches Appraisal Institute – National Uniform Standards of Professional Appraisal Practice

Beshears & Associates R e a l E s t a t e S e r v i c e s 813-254-2885 813-254-0193 Fax

INVOICEClient Copy

JOB IDENTIFICATION DATE: March 17, 2008 CLIENT JOB NUMBER: JOB NUMBER: Land.5991 JOB NAME: One West

First Street Fort Myers

INVOICE TO: Mr. Albert AzoguiI

Fort Myers Development, LLC 2150 West First Street, Unit 2B Fort Myers, FL 33901

AMOUNT DUE Appraisal Report $5,000Less Retainer 0Net Amount Due $5,000 TERMS: Payment due on receipt of report. A 10% late

penalty will be added every 30 days thereafter. CORPORATE NAME: Beshears & Associates Incorporated TAXPAYER STATUS: Sub Chapter S Corporation FEDERAL IDENTIFICATION NUMBER: 59-3253568 MAILING ADDRESS: 610 S. Albany Ave

Tampa, Florida 33606

LEE COUNTY PROPERTY APPRAISER

PROPERTY DATA FOR PARCEL 23-44-24-P2-00006.0020 TAX YEAR 2007 FINAL

[ Next Lower Parcel Number | Next Higher Parcel Number | Display Building Permits on this Parcel | Display Tax Bills on this Parcel | Tax Estimator ]

OWNERSHIP, LEGAL, SALES AND DISTRICT DATA ARE FROM THE CURRENT DATABASE. LAND, BUILDING, VALUE AND EXEMPTION DATA ARE FROM THE 2007 FINAL ROLL.

Parcel data is available for the following tax years: [ 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 (Final) ]

PROPERTY DETAILS

OWNER OF RECORD [ VIEWER ] TAX MAP [ PRINT ] IMAGE OF STRUCTURE

FORT MYERS DEVELOPMENT LLC 2150 W 1ST ST STE 2B FORT MYERS FL 33901

Photo Date: February of 2002

SITE ADDRESS

1901 ALTAMONT AVE FORT MYERS FL 33901

LEGAL DESCRIPTION

PARL IN NW 1/4 OF NE 1/4 SEC 23 TWP 44 R 24 OC DESC IN OR 1060 P 1379

[ PICTOMETRY ]

TAXING DISTRICT DOR CODE

091 - CITY FORT MYERS/DOWNTOWN REDEVELOPMENT AGENCY 10 - VACANT COMMERCIAL

PROPERTY VALUES (TAX ROLL 2007)

[ HISTORY CHART ]EXEMPTIONS ATTRIBUTES

JUST 2,338,680 HOMESTEAD 0 LAND UNITS OF MEASURE SF

ASSESSED 2,338,680 AGRICULTURAL 0 TOTAL NUMBER OF LAND UNITS 41,875.00

Page 1 of 3Lee County Property Appraiser - Online Parcel Inquiry

11/21/2007http://www.leepa.org/Scripts/PropertyQuery.asp?FolioID=10171931

ASSESSED SOH 2,338,680 WIDOW 0 FRONTAGE 0TAXABLE 2,338,680 WIDOWER 0 DEPTH 0BUILDING 0 DISABILITY 0 BEDROOMS LAND 2,338,680 WHOLLY 0 BATHROOMS BUILDING FEATURES 0 SOH DIFFERENCE 0 TOTAL BUILDING SQFT

LAND FEATURES 35,550 1ST YEAR BUILDING ON TAX ROLL 0

HISTORIC DISTRICT No

SALES/TRANSACTIONS

SALE PRICE DATE OR

NUMBERTRANSACTION DETAILS VACANT /

IMPROVEDTYPE DESCRIPTION

15,000,000 5/2/2005 4714/2502 02 Qualified (Multiple STRAP # / 06-09I) There are 1 additional parcel(s) with this document (may have been split after the transaction date)... 23-44-24-P2-00007.0000

V


V

329,100 12/1/1993 2465/1879 01 Disqualified (Doc Stamp .70 / SP less th $100 / Other Disq)

V

450,000 5/1/1992 2303/89 06 Qualified (Fair Market Value / Arms Length / One STRAP #)

V

PARCEL NUMBERING HISTORYCREATION DATE - UNAVAILABLE

PRIOR STRAP RENUMBER REASON RENUMBER DATE

23-44-24-0C-00887.0020 Reserved for Renumber ONLY Unspecified

SOLID WASTE (GARBAGE) ROLL DATASOLID WASTE DISTRICT ROLL TYPE CATEGORY UNIT/AREA TAX AMOUNT

009 - City of Fort Myers - 0 0.00

COLLECTION DAYSGARBAGE RECYCLING HORTICULTURE

ELEVATION INFORMATION

STORM SURGE CATEGORYFLOOD INSURANCE (FIRM FAQ)

RATE CODE COMMUNITY PANEL VERSION DATE

T S A10-EL10 125106 0010 B 111584

[ Show ]



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This site is best viewed with Microsoft Internet Explorer 5.5+ or Netscape Navigator 6.0+. Page was last modified on Tuesday, November 20, 2007 3:00:36 PM.

APPRAISAL DETAILS

TRIM (proposed tax) Notices are available for the following tax years: [ 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 ]



LEE COUNTY PROPERTY APPRAISER

PROPERTY DATA FOR PARCEL 23-44-24-P2-00007.0000 TAX YEAR 2007 FINAL

[ Next Lower Parcel Number | Next Higher Parcel Number | Display Building Permits on this Parcel | Display Tangible Accounts on this Parcel | Display Tax Bills on this Parcel | Tax Estimator ]

OWNERSHIP, LEGAL, SALES AND DISTRICT DATA ARE FROM THE CURRENT DATABASE. LAND, BUILDING, VALUE AND EXEMPTION DATA ARE FROM THE 2007 FINAL ROLL.

Parcel data is available for the following tax years: [ 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 (Final) ]

PROPERTY DETAILS

OWNER OF RECORD [ VIEWER ] TAX MAP [ PRINT ] IMAGE OF STRUCTURE

FORT MYERS DEVELOPMENT LLC 2150 W 1ST ST STE 2B FORT MYERS FL 33901

Photo Date: August of 2005

SITE ADDRESS

2220 W FIRST ST FORT MYERS FL 33901

LEGAL DESCRIPTION

PARL IN NE 1/4 SEC 23 TWP 44 R 24 OC DESC IN OR 1221 P 510 LESS R/W DESC IN INST#2007-129408

[ PICTOMETRY ]

TAXING DISTRICT DOR CODE

091 - CITY FORT MYERS/DOWNTOWN REDEVELOPMENT AGENCY 39 - HOTELS, MOTELS

PROPERTY VALUES (TAX ROLL 2007)

[ HISTORY CHART ]EXEMPTIONS ATTRIBUTES

JUST 9,361,180 HOMESTEAD 0 LAND UNITS OF MEASURE **

Mixed Use



ASSESSED 9,361,180 AGRICULTURAL 0 TOTAL NUMBER OF LAND UNITS

See Details

ASSESSED SOH 9,361,180 WIDOW 0 FRONTAGE 0TAXABLE 9,361,180 WIDOWER 0 DEPTH 0BUILDING 691,270 DISABILITY 0 BEDROOMS 18LAND 8,669,910 WHOLLY 0 BATHROOMS 80BUILDING FEATURES 69,560 SOH DIFFERENCE 0 TOTAL BUILDING SQFT 105,969

LAND FEATURES 155,340 1ST YEAR BUILDING ON TAX ROLL 1970

HISTORIC DISTRICT No

** Multiple land lines - see Appraisal Detail

SALES/TRANSACTIONS

SALE PRICE DATE OR

NUMBERTRANSACTION DETAILS VACANT /

IMPROVEDTYPE DESCRIPTION


I


I

2,284,900 2/1/1994 2475/2866 06 Qualified (Fair Market Value / Arms Length / One STRAP #)

I

100 3/1/1992 2282/2472 03 Disqualified (Interest Sales / Court Docs / Government)

I

PARCEL NUMBERING HISTORYCREATION DATE - UNAVAILABLE

PRIOR STRAP RENUMBER REASON RENUMBER DATE

23-44-24-0C-00888.0000 Reserved for Renumber ONLY Unspecified

SOLID WASTE (GARBAGE) ROLL DATASOLID WASTE DISTRICT ROLL TYPE CATEGORY UNIT/AREA TAX AMOUNT

009 - City of Fort Myers C - Commercial Category D 91,929 9,947.25

COLLECTION DAYSGARBAGE RECYCLING HORTICULTURE

ELEVATION INFORMATION

STORM SURGE CATEGORYFLOOD INSURANCE (FIRM FAQ)

RATE CODE COMMUNITY PANEL VERSION DATE



[ Next Lower Parcel Number | Next Higher Parcel Number ]

[ New Query | New Browse | Parcel Queries Page | Lee PA Home ]

This site is best viewed with Microsoft Internet Explorer 5.5+ or Netscape Navigator 6.0+. Page was last modified on Tuesday, November 20, 2007 3:00:36 PM.

T S A10-EL10 125106 0010 B 111584

[ Show ] APPRAISAL DETAILS

TRIM (proposed tax) Notices are available for the following tax years: [ 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 ]



Additional Options:

Tax Detail Payments Made All Unpaid Taxes Tax History Link to Property Appraiser's Tax Estimator

Real Property Information

Account Tax Year Status23-44-24-P2-00006.0020 2007 OPENOriginal Account Book/Page23-44-24-P2-00006.0020 4714/2502OwnerFORT MYERS DEVELOPMENT LLC Physical Address Mailing Address1901 ALTAMONT AVE FORT MYERS FL 33901

2150 W 1ST ST STE 2B FORT MYERS FL 33901 USA

Legal DescriptionPARL IN NW 1/4 OF NE 1/4 SEC 23 TWP 44 R 24 OC DESC IN OR 1060 P 1379Outstanding Balance as of 11/21/2007 $41,746.45

District 091

Market Assessed Value $2,338,680.00 Agricultural Exemption $0.00 Assessed SOH Value $2,338,680.00 Homestead Exemption $0.00 Other Exemption $0.00 Wholly Exemption $0.00 Taxable Value $2,338,680.00 Senior Exemption $0.00 Historical Exemption $0.00 Economic Exemption $0.00

Tax Amount $43,485.89

Ad Valorem Taxes

Taxing Authority Millage Rate Taxes LeviedLEE COUNTY CAPITAL IMP 0.5000 $1,169.34 LEE COUNTY GENERAL REVENUE 3.6506 $8,537.59 LEE COUNTY LIBRARY FUND 0.3792 $886.83 SCHOOL DISTRICT- BY LOCAL BOARD 2.5990 $6,078.23 SCHOOL DISTRICT- BY STATE LAW 4.3610 $10,198.98 CITY OF FORT MYERS 6.2560 $14,630.78 SFL WATER MGMT-DISTRICT/OKEECHOBEE LEVY 0.5346 $1,250.26 SFL WATER MGMT-EVERGLADE CONST 0.0894 $209.08 WEST COAST INLAND WATERWAY 0.0394 $92.14 LEE COUNTY HYACINTH CONTROL 0.0214 $50.05 LEE COUNTY MOSQUITO CONTROL 0.1636 $382.61

Nov 2007 Dec 2007 Jan 2008 Feb 2008 Mar 2008$41,746.45 $42,181.31 $42,616.17 $43,051.03 $43,485.89

See also:

Page 1 of 1Lee County Tax Collector - Print Results

11/21/2007http://www.leetc.com/search_detail.asp

Additional Options:

Tax Detail Payments Made All Unpaid Taxes Tax History Link to Property Appraiser's Tax Estimator

Real Property Information

Account Tax Year Status23-44-24-P2-00007.0000 2007 OPENOriginal Account Book/Page23-44-24-P2-00007.0000 4714/2502OwnerFORT MYERS DEVELOPMENT LLC Physical Address Mailing Address2220 W FIRST ST FORT MYERS FL 33901

2150 W 1ST ST STE 2B FORT MYERS FL 33901 USA

Legal DescriptionPARL IN NE 1/4 SEC 23 TWP 44 R 24 OC DESC IN OR 1221 P 510 LESS R/W DESC IN INST#2007-129408Outstanding Balance as of 11/21/2007 $176,650.47

See also:

Page 1 of 1Lee County Tax Collector - Print Results

11/21/2007http://www.leetc.com/search_detail.asp