Real Estate Navarre Florida

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					               91.59-ACRE VACANT PARCEL
(Proposed Shores of Santa Rosa Community Development District)
             SOUTH SIDE OF U.S. HIGHWAY 98
                     NAVARRE, FLORIDA
PART ONE: INTRODUCTION




          ii
                    A SELF-CONTAINED
                    APPRAISAL REPORT

                          TITLE PAGE




                            PROPERTY

                   91.59-Acre Vacant Parcel
  (The Shores of Santa Rosa Community Development District)


                            LOCATION

                   South Side of U.S. Highway 98
                          Navarre, Florida



DATE OF VALUE                                    DATE OF REPORT

 March 23, 2009                                        March 25, 2009



                         PREPARED FOR

                     JMC Capital Partners, LLC
                  3131 North 70th Street, Suite 1054
                      Scottsdale, Arizona 85251




           Fruitticher Lowery Appraisal Group, Inc.
               3000 Langley Avenue, Suite 402
                   Pensacola, Florida 32504



                                  iii
                                                  March 25, 2009


JMC Capital Partners, LLC
3131 North 70th Street, Suite 1054
Scottsdale, Arizona 85251

Attn: Mr. Christopher P. Neary,
      Director of Commercial Lending



                                          Letter of Transmittal
                                          RE: A Self-Contained Appraisal Report of the
                                          91.59-Acres of vacant land located along the south
                                          right-of-way of U.S. Highway 98 referred to as the
                                          Shores of Santa Rosa Community Development
                                          District in Navarre, Florida.

Dear Mr. Neary:

       At your request, an inspection has been made of the above referenced property for the
purpose of estimating the current market value of the fee simple interest. In compliance with
the "Uniform Standards of Professional Appraisal Practice", this letter of transmittal is
followed by an appraisal reported in a self-contained format in which all applicable
approaches to value are used and with the value conclusion reflecting all known information
about the subject property, current and projected market conditions and other available data.
This report contains to the fullest extent possible and practical, explanations of the data,
reasoning and analysis used to develop the opinion of value. It also includes thorough
descriptions of the subject property, the property’s locale, the market for the property type
and our opinion of highest and best use.

       Market value will be defined in the appraisal report, but basically assumes a willing
buyer and seller, both knowledgeable of the subject real estate market and with the valuation
at the property's highest and best use. Along with this value estimate, current economic
conditions indicate both the marketing period and exposure period to be within about one
year.


                                             iv
Mr. Christopher P. Neary
March 25, 2009
Page Two


       The subject property contains approximately 91.59-acres of vacant land located along
the south right-of-way of U.S. Highway 98 and extending south to the Santa Rosa Sound. The
property contains approximately 855 feet of frontage along U.S. Highway 98 and
approximately 833 feet of frontage along the Santa Rosa Sound. The property is zoned
“PUD”, Planned Unit Development with a master plan reflecting a total of 825 residential
dwelling units and 49,000 square feet of commercial space. The property contains
approximately 23.79 acres of jurisdictional wetlands, but reportedly mitigation has been
completed and wetland crossings have been approved.

       This attached appraisal is based upon extraordinary assumptions. An extraordinary
assumption is an assumption that presumes 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 data
used in an analysis.

        The extraordinary assumptions of this analysis include the assumption that the subject
property can be physically and legally developed with the 825 residential units and 49,000
square feet of commercial space as reportedly approved through the “PUD” zoning and the
community development district. It is assumed that the development of the property will
begin and economic conditions will support the beginning of the development prior to the
expiration of the permits and development order. The value is also based upon the
assumption that the information provided by others used in the attached was truthful. The
sales confirmations were based upon interviews with buyers and sellers within the market and
the information provided by those interviewed is assumed to be correct. Also, the information
provided by the buyer/seller of the subject property and by the employees of Santa Rosa
County is assumed to be correct. Should any of these assumptions be found to be incorrect,
the value reported within this appraisal assignment could be altered.

       Subject to the above and the limiting conditions and certification as set forth herein, it
is our opinion that the current market value of the fee simple estate as of the last date of
inspection, March 23, 2009, was:

                               TWENTY MILLION DOLLARS
                                      $20,000,000


       I hereby certify we have no interest, present or contemplated, in the appraised property.
This appraisal has been prepared utilizing all of the requirements set forth as Standards for Real
Estate Appraisals as established for federally related transactions and the State of Florida. The
                                                v
Mr. Christopher P. Neary
March 25, 2009
Page Two

appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP). The
fee for this appraisal was not based on a minimum value nor was the assignment undertaken
based on a pre-determined value or guaranteed loan amount.

       I appreciate the opportunity of doing this work for you and your client. After your
review, should you have questions, please call.


                                                 Respectfully submitted,
                                                                              Digitally signed by Rodger K. Lowery,
                                                 Rodger K.                    MAI
                                                                              DN: CN = Rodger K. Lowery, MAI, C
                                                                              = US, O = Fruitticher-Lowery
                                                 Lowery, MAI                  Appraisal Group, Inc.
                                                                              Date: 2009.03.26 13:59:26 -05'00'

                                                 Rodger K. Lowery, MAI
                                                 State-Certified General Real Estate Appraiser #RZ1922




                                            vi
                                                TABLE OF CONTENTS


PART ONE: INTRODUCTION................................................................................................. II
   TITLE PAGE ............................................................................................................................. III
   LETTER OF TRANSMITTAL ........................................................................................................... IV
   TABLE OF CONTENTS .......................................................................................................... VII
   SUMMARY OF SALIENT FACTS AND CONCLUSIONS ..................................................... 2
   SCOPE OF WORK ..................................................................................................................... 5
   PROPERTY RIGHTS APPRAISED .......................................................................................... 6
   PURPOSE OF APPRAISAL....................................................................................................... 6
   USE OF APPRAISAL................................................................................................................. 6
   DATE OF VALUE AND OF PROPERTY INSPECTIONS....................................................... 6
   MARKET VALUE DEFINITION AND IMPLICATIONS ....................................................... 7
   IDENTIFICATION OF THE PROPERTY................................................................................. 8
   HISTORY OF THE PROPERTY................................................................................................ 9
PART TWO: DESCRIPTIONS, ANALYSIS AND VALUE CONCLUSIONS ................... 10
   GENERAL AREA DATA ........................................................................................................ 12
   NEIGHBORHOOD ANALYSIS.............................................................................................. 22
   TAXES AND ASSESSMENT ANALYSIS ............................................................................. 27
   LAND USE PLANNING, ZONING, CONCURRENCY......................................................... 28
   PUBLIC AND PRIVATE RESTRICTIONS ............................................................................ 29
   ENVIRONMENTAL CONCERNS.......................................................................................... 29
   PHOTOGRAPHS ..................................................................................................................... 32
   SITE DESCRIPTION ................................................................................................................ 35
   HIGHEST AND BEST USE ..................................................................................................... 38
   EXPOSURE TIME ................................................................................................................... 44
   MARKETING TIME ................................................................................................................ 45
   THE VALUATION PROCESS ................................................................................................ 46
   SALES COMPARISON APPROACH ..................................................................................... 47
PART THREE: CERTIFICATIONS AND ADDENDA......................................................... 82
   CERTIFICATION .................................................................................................................... 83
   ASSUMPTIONS AND LIMITING CONDITIONS ................................................................. 84
   POLICY STATEMENT OF THE APPRAISAL INSTITUTE ................................................. 86
   QUALIFICATIONS AS AN APPRAISER .................................................................................. 87
   ADDENDUM ........................................................................................................................... 90




                                                                     vii
SUBJECT PHOTOGRAPH




        1
          SUMMARY OF SALIENT FACTS AND CONCLUSIONS


CLIENT:                 JMC Capital Partners, LLC

INTENDED USER:          JMC Capital Partners, LLC, Rosemary Sound, LLC and
                        Navarre Beach Holdings, LLC

USE OF APPRAISAL:       This appraisal is being prepared for use by our client,
                        JMC Capital Partners, LLC for their internal financing
                        decisions.

OWNERSHIP:              The property is currently owned by Rosemary Sound,
                        LLC and Navarre Beach Holdings, LLC. JFK Holdings,
                        LLC reportedly purchased 91% interest in the two
                        ownership entities in 2008 and is the managing partner
                        for both.

PROPERTY LOCATION:      The property is located along the south right-of-way of
                        just west of Smuggler’s Cove Subdivision in the Navarre
                        area of South Santa Rosa County, Florida.

SITE DESCRIPTION:       The subject property contains approximately 91.59-acres
                        of land with approximately 23.79 acres of jurisdictional
                        wetlands. The parcel contains approximately 855 linear
                        feet of frontage along U.S. Highway 98 and
                        approximately 833 feet of frontage along the shoreline of
                        the Santa Rosa Sound. Mitigation has reportedly been
                        completed for the crossing and development of a small
                        portion of the wetlands.

IMPROVEMENTS:           The site is currently vacant and wooded.

ZONING:                 “PUD”, Planned Unit Development planned for the
                        development of up to 825 residential units with a marina
                        and a mixture of commercial uses.

ENVIRONMENTAL:          As stated, the subject contains approximately 23.79-acres
                        of wetlands. A portion of the wetlands have been
                        mitigated for a crossing allowing access to the remaining
                        uplands.

HIGHEST AND BEST USE:          The highest and best use of the site “as-vacant” is
                        the proposed mixed-use planned unit development with
                                  2
marina.




          3
SUMMARY OF SALIENT FACTS AND CONCLUSIONS (Cont’d)


DATE OF VALUE:           The current market value date is the date of the last
                         inspection, which was March 23, 2009.

ASSESSED VALUE:                       $4,037,233

PROPERTY TAX:                  $60,398.22    Due by March 31st, 2009 for 2008

                               $86,566.67    Delinquent for 2007

FINAL “AS-IS”VALUE OPINION:    $20,000,000




                                  4
                                    SCOPE OF WORK

       In an effort to meet your requirements as well as conforming to the Uniform Standards
of Professional Appraisal Practice (USPAP), a visual inspection was made of the subject
land. Notes were taken of the property for the description write-ups found within this report.
       In addition to the physical inspection, research was conducted on a regional and
neighborhood basis in an effort to identify trends and factors, which have an effect on area
property values. Once these trends and factors were identified, a highest and best use analysis
was conducted.
       Upon determination of the land’s highest and best use, similar land sales were researched
for use in the sales comparison approach to value. The land sales were extracted from the public
records information, confirmed with one of the parties to the sale, and then written up in detail in
the sales comparison approach to value. Adjustments were made for various differences and the
sales indicated a range of value indications. Appropriate weight was given to each sale for a final
value opinion.
       As this is the appraisal of vacant land, the income and cost approaches were eliminated
from consideration. With no buildings of value being considered, the income and cost
approaches would not be applicable and no reasonable appraiser would utilize them in the
appraisal of vacant land. As no reasonable appraiser would utilize these two approaches, their
elimination has no negative effect on the value opinion.
       The client and intended user of this appraisal is JMC Capital Partners, LLC. The
intended use is by the client and intended user for internal financing decisions. The type of
opinion being appraised is that of the Fee Simple Estate with the effective date, the last date
of inspection, being March 23, 2009.




                                                 5
                              PROPERTY RIGHTS APPRAISED

        The property rights appraised are those of a fee simple estate. “Fee simple estate” has
been defined as:


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



                                     PURPOSE OF APPRAISAL

        The purpose of this appraisal is to arrive at a supportable estimate of the market value
of the subject property. The objective of this report is to present the data and reasoning used
to form this opinion of value.



                                         USE OF APPRAISAL

        This appraisal is being prepared for use by our client, JMC Capital Partners, LLC for
internal financing decisions.



              DATE OF VALUE AND OF PROPERTY INSPECTIONS

        The property was last inspected on March 23, 2009, which is also the current date of
value. This report was signed on March 25, 2009.




1
  Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th Edition. (Chicago, Illinois: Appraisal Institute,
2002), pg. 113.

                                                         6
                 MARKET VALUE DEFINITION AND IMPLICATIONS

           The definition of market value as currently stated in the most recent editions of The
Appraisal of Real Estate is as follows:


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

           A.        buyer and seller are typically motivated;

           B.        both parties are well informed or well advised and each acting in what they
                     considers their own best interest;

           C.        a reasonable time is allowed for exposure in the open market;

           D.        payment is made in terms of cash in U.S. dollars or in terms of financial
                     arrangements comparable thereto;

           E.        the price represents the normal consideration for the property sold unaffected
                     by special or creative financing or sales concessions granted by anyone
                     associated with the sale.”2




2
    Appraisal Institute, The Appraisal of Real Estate, 12th Edition. (Chicago, Illinois: Appraisal Institute, 2001), pg. 23.

                                                               7
               IDENTIFICATION OF THE PROPERTY

PROPERTY LOCATION:          The property is located along the south right-of-
                            way of U.S. Highway 98, just west of Smuggler’s
                            Cove subdivision in the Navarre area of South
                            Santa Rosa County, Florida.

CURRENT OWNER OF RECORD:    The property is currently under the ownership of
                            Rosemary Sound, LLC and Navarre Beach
                            Holdings, LLC who are selling the property to your
                            client JFK Holdings, LLC.

TYPE OF OWNERSHIP:          Fee Simple

PHYSICAL:                   The subject property contains 91.59-acres, with
                            approximately 23.79 acres of jurisdictional
                            wetlands. The property contains approximately
                            855 feet of frontage along the south right-of-way
                            of U.S. Highway 98 and approximately 833 feet
                            of frontage along the Santa Rosa Sound. The
                            property is zoned “PUD”, Planned Unit
                            Development with a plan for 825 residential units
                            with approximately 49,000 square feet of
                            commercial use.

LEGAL DESCRIPTION:




                              8
                           HISTORY OF THE PROPERTY

       Navarre Beach Holdings, LLC owns approximately ten acres of the subject being the
original commercial portion of the property along U.S. Highway 98. Navarre Beach Holdings
had purchased this portion of the property from Soundview Properties on February 10, 2005
for a recorded price of $500,000. Approximately 80-acres of the property was purchased by
Rosemary Sound, LLC from Soundview Properties on August 4th and 12th, 2004 for a
reported price of $2,997,200. The remaining portions of the property were reportedly
purchased by Rosemary Sound, LLC from Mitchell Homes on October 4, 2006 for $49,200.
On December 19th, 2005, a petition to establish a community development district was
submitted and it appears that it was approved as the Shores of Santa Rosa Community
Development District allowing for the issuance of bonds for the construction of infrastructure
and amenities with these bonds paid back through a special assessment.
       The property has since been rezoned to “PUD”, Planned Unit Development allowing
for the development of 825 residential units and approximately 49,000 square feet of
commercial space with a marina accessed from the Santa Rosa Sound.
       The property has been under contract by JFK Holdings, LLC for several months.
According to the unsigned documents provided to me for this appraisal, JFK Holdings will
purchase 91% of the interest in Rosemary Sound, LLC and Navarre Beach Holdings, LLC for
a purchase price of $8,000,000. This appears to be very favorable to the buyer and is
reportedly based upon the sellers desire to get out of the development of the property. I have
no knowledge of any other transactions within the past three years. It is noted that I was not
provided with a title policy and assume that clear title will be transferred on the property. The
prior sales information was provided through Metro Market Trends and is assumed to be
correct.




                                               9
PART TWO: DESCRIPTIONS, ANALYSIS AND VALUE CONCLUSIONS




                          10
GENERAL AREA LOCATION MAP




            11
                                  GENERAL AREA DATA

        There are four basic interrelated forces that influence the value of a property:
Social/population trends, economic changes and adjustments, governmental controls and regulations
and physical or environmental changes. These forces are considered in every phase of the evaluation
and valuation process but are best discussed in the General Area Data and Neighborhood Data
sections of the report. The subject's general area is considered to be the Pensacola Metropolitan
Statistical Area, which includes the City of Pensacola and the nearby communities of Cantonment,
Pace, Milton, and Gulf Breeze, and Navarre located in Escambia and Santa Rosa Counties. The
interrelated forces influencing this general area, as listed above, follow:


SOCIAL/POPULATION
        Among the more important factors that should be considered in a market study are the area
population trends and the factors that affect the expected future population. The information
obtained for the subject’s market area of the Pensacola Metropolitan Statistical Area (PMSA), which
consists of Escambia and Santa Rosa counties, was obtained from the United States Census Bureau.
        The Pensacola MSA has a year 2008 population estimate of 466,136, based on projections
by ESRI and quoted by the STDB (Site to do Business), which is up from the 2000 Census count of
412,153. This average increase per year of 1.6% is expected to continue into the future with current
estimates for the year 2013 being 504,782. The average household size is 2.48 people per residence
and there are a total of 177,554 households with a median income for 2008 that was estimated to be
$47,417.
        Some of the motivation behind the area population growth is the increasing size of the area
military bases. The United States Government has been downsizing and closing military bases all
over the world as well as within this country. Rather than being downsized, the Pensacola area bases
have been realizing net gains as departments and personnel from closed bases are being relocated to
this area. In May of 2008, the NAS Pensacola website stated there were more than 16,000 military
personnel and 7,400 civilians working in the Escambia and Santa Rosa County areas.




                                                   12
GENERAL AREA DATA (Cont'd.)


       An additional explanation behind the Pensacola area growth is the location in the "Sunbelt"
along the Gulf Coast of Florida. The sugar white beaches and clear waters of the Gulf of Mexico
attract thousands of visitors every year. Realizing the area benefits (year-round sunshine, warm
temperatures, no snow), many of these visitors choose to make Pensacola their permanent home.
       Tourism in Northwest Florida took a heavy hit in September of 2004 when Hurricane Ivan
hit the Gulf Coast, and then again in 2005 when Hurricane Dennis hit. Even though the resulting
loss of hotel rooms and condominium units was devastating, they have since been replaced or
refurbished for the most part, and based on bed-tax figures for 2007, business has rebounded
sharply. Bed tax figures that had reported increases up through the 2004-2005 season, dropped by
11.9% during the 2005-2006 season following the storms. The following seasons each reported
increases between 4%-6% as hotel and condominium units were being added back into the rental
pool, and by the end of 2007 the annual report from the Florida Department of Revenue revealed
that bed-tax collections were up 4.6% over the previous year and had exceeded their best pre-storm
figure by 3.5%. The most recent figures for the 2008 fiscal year indicate Escambia and Santa Rosa
County bed taxes increased 5% over the 2007 numbers.




                   Source: Haas Center for Business Research and Economic Development



                                                  13
GENERAL AREA DATA (Cont'd.)


        Considering the previously mentioned population growth estimates, the population increase
for the Pensacola MSA over the next five years is expected to be 38,646 people. This represents an
increase of 16,215 households broken down as follows: 64.1% owner occupied, 24% Renter
occupied, and 12% Vacant. This vacancy rate may be somewhat misleading as many of the
coastal homes and condos are vacation homes that are only seasonally occupied.
        The condominium market is currently made up largely of absentee owners. Looking at a
list of owners from a typical development such as the Emerald Isle Condominium shows owners
from Indiana, Louisiana, Florida, Virginia, Georgia, Washington, Tennessee, Arkansas, Alabama
and Mississippi, to name a few. As the condominium market is made up of such a large segment
of the United States population, local single family housing occupancy statistics would have
little impact on condominium prices. The real estate market, however, has been sluggish both on
a local and national level recently, which has impacted second home-condominiums purchases
and consequently prices have decreased since their peaks that were realized between 2005 and
2006.


ECONOMIC CHANGE AND ADJUSTMENTS


        In addition to considering the area's population and expected increases, a commercial study
should also consider area economics. Even if the population continues to increase, the new
population must be able to afford the area goods and services; therefore, it becomes necessary to
look at the economic conditions and the projected economic future.
        According to the Florida Research and Economic Database, area unemployment rates are
indicated to be 4.5% in Escambia County and 4.2% in Santa Rosa County while the national average
is 5.2% (as of March 2008). The annual income per capita reported for Escambia County was
$28,371 (2005), which is similar to Santa Rosa County at $27,897 (2005).




                                                14
GENERAL AREA DATA (Cont'd.)


        The services sector is the primary employer in the Pensacola MSA at 40.1% in Escambia
County and 34.5% in Santa Rosa County, as reported by Woods and Poole Economics, 2007. The
retail trade is the secondary source of employment with 15.4% of the workforce in Escambia County
and 20.2% in Santa Rosa. Area tourism is a component of both the services sector and the retail
trade. In addition to the top two area job sources, the largest area private businesses are considered
to be very stable. Some of the top area major employers in the Pensacola MSA include Baptist
Health Care (3,500), Sacred Heart Health Systems (4,100), University of West Florida (2,400),
Lakeview Center (1,500), Gulf Power Company (1,400), Solutia Inc. (1,300), West Florida Regional
Medical Center (1,300), Navy Federal Credit Union (1,200), Pensacola Christian College (1,078),
West Corporation (800), Medical Center Clinic (725), International Paper (600), Santa Rosa Medical
Center (573), Wayne Dalton Corp. (500), and Pensacola News Journal (520).
        As previously mentioned, due to the presence of the three area military bases, a large portion
of the Pensacola work force is employed by the U.S. Navy, including civilian personnel. Woods and
Poole Economics , 2007, reported that in Escambia County, 9.4% of the total workforce was
employed by the military, and 4% of the workforce in Santa Rosa County. Navy personnel who live
off base, in addition to their regular salary, are given monthly housing allowances.
        The cost of living in the area is also one of the lowest in the country. National studies, which
rate American cities for their desirability, commonly rate Pensacola’s MSA near the top of the pack
due to the low cost of living and high quality of life.
        In conclusion, the Pensacola MSA is considered to have a strong economic base, which is
expanding. Tourism is a large factor in the economic success of the area and in spite of recent
hurricane related setbacks, recovery efforts have proven successful with growth being shown beyond
pre-storm figures. As the government deems Pensacola to be an ideal training ground for Naval and
Air Force personnel, the area military bases are considered to have a solid future.




                                                   15
GENERAL AREA DATA (Cont'd.)


GOVERNMENTAL CONTROLS AND REGULATIONS


       A general area analysis of a growing area would not be complete without considering the
area's government and its outlook on future expansion. If the local government is anti-growth, laws
can be enacted which would stifle development and population growth. On the other hand, if the
government is pro-growth, taxes, zoning, agencies and personnel can be used by the government to
promote new businesses' development creating a larger economic base and additional population
growth, which would support the existing and planned development of income producing properties.
The Pensacola MSA governing bodies are considered to be pro-growth organizations.
       The Escambia County government is a five man Board of Commissioners elected every four
years by their district. They appoint a County Administrator who oversees the county budget and
operations.
       Pensacola has a City Council - Manager government with 10 council members elected to
two-year terms. They, in turn, appoint a City Manager. The Mayor, who moderates the council
meetings and serves in an ambassadorial role, is also elected by the Council. The city and county
currently have zoning ordinances in effect covering the southern region of the county. The county
also has a state required Future Land Use Plan which is designed to ensure organized growth over its
20 year life. This plan is reviewed every five years to ensure that it is keeping up with area needs.
The plan can also be petitioned for changes. The major topics handled in the plan include:
Consistency, environmental and threatened and endangered species, land use approval on site plans,
concurrency and permitting.
       General revenues are raised through an ad valorem tax system. The Escambia County
Appraisers Office assesses the property at "just value" which is percentage of market value typically
ranging from about 40% to 80% of market value depending upon the date the property was last
assessed. The current millage rates are as follows: Escambia County is 16.467 mills, the City of




                                                 16
GENERAL AREA DATA (Cont'd.)


Pensacola is 20.38 mills, and Pensacola Downtown area is 22.38 mills. Santa Rosa County is
13.2633 mills, the City of Gulf Breeze is 14.8153 mills and Milton is 16.0133 mills as per each
county’s taxing authority. The area property taxes are among the lowest in the state, which makes it
more affordable for new business development.          The City of Pensacola has established a
Community Redevelopment Administration (CRA), which is responsible for improving the look of
the city. The CRA receives a portion of the taxes collected in the downtown district and utilizes
these funds for infrastructure improvements (streets, sewer lines, water lines, parks, etc.). By
upgrading the look of the city, the appeal also increases attracting additional business development
and tourist dollars increasing the economic and population base.
       The county and city governments also work closely with private businesses in efforts to
attract additional business to the area. The government's development of such structures as the Civic
Center, the Saenger Theater, and the new Creative Arts Center aid in drawing convention business to
the area. Over the past several years, convention traffic has increased at a rate of about 30% per year
bringing new visitors to the area who aid in strengthening the area's economic base. The economic
base is also strengthened by the government's development of industrial parks in which the land is
sold to "clean air" industries at very low rates in return for the creation of additional area jobs
expanding the economic and population base.
       In conclusion, the local governmental agencies are considered to aid in the development of
the Pensacola MSA. Zoning, along with the Future Land Use Plan, is used to insure organized,
homogeneous growth, which adds to the area's appeal. The low taxes and affordable real estate are
also enticing factors for future prospective businesses. The government's willingness to aid in the
development of the economic base also creates a stronger population base.




                                                  17
GENERAL AREA DATA (Cont'd.)

LOCATION AND PHYSICAL FACTORS

        The location and physical factors of the area are considered to be important, as they are a
major impetus in the relocation of Navy personnel, as well as the growth of new businesses and the
civilian population. Available land, good weather, water and recreational aspects are all factors
considered by a potential future resident of the area. If these factors are congenial, they will aid in
the growth and stability of the area.
        Escambia County has a land area of approximately 661 square miles and an additional water
area of 100 square miles. The altitude ranges from sea level to 120 feet above sea level. The eastern
boundary of the county is the Escambia River and Escambia Bay. The western boundary is the
Perdido River and Perdido Bay. Neither river is a navigable waterway to the extent of contributing
to the economy. Santa Rosa County adjoins Escambia County to the east and has a similar size and
physical characteristics. Escambia and Santa Rosa Counties are located in the extreme northwestern
portion of the state, being in what is called the "Panhandle" of Florida. Geographically, this MSA is
located approximately 230 miles east of New Orleans, Louisiana; 250 miles south of Birmingham,
Alabama; 350 miles southwest of Atlanta, Georgia; and 375 miles east of Jacksonville, Florida.
        The City of Pensacola covers approximately 23 square miles of land in the southeastern part
of Escambia County and the smaller cities of Gulf Breeze, Milton and Pace are bedroom
communities for Pensacola. The annual mean temperature is 69 degrees with an average rainfall of
62 to 87 inches. The sun shines approximately 343 days of the year making Pensacola part of the
"Sun Belt" of the United States. The "Sun Belt" states, especially Florida, have been growing in
population faster than other areas of the United States in recent years.
        One of the probable reasons for continuous growth of the Pensacola MSA is its accessibility.
Pensacola is served by four major highways, which provide access to the north, east and west. U.S.
90 (which runs from the East Coast of Florida to Texas), Interstate 10 (which runs from the Atlantic
Ocean to the Pacific Ocean), U.S. 98 (which runs from the East Coast of Florida




                                                   18
GENERAL AREA DATA (Cont'd.)


to Mississippi) and U.S. 29 (which runs from Pensacola to Washington, D.C.). The Interstate spur I-
110, which is currently under improvement expanding from three lanes to six, connects with
Interstate 10 just west of Davis Highway and runs to downtown Pensacola's Business District,
connecting with U.S. Highway 98.
        Pensacola's Municipal Airport, with the recent completion of a $30 million modernization,
provides air transportation to all parts of the country. The Escambia County Transit System operates
bus lines throughout the metropolitan area and Greyhound Bus Lines provides inter-city bus
transportation.
        The natural deep water harbor of Pensacola Bay, along with the large expanse of protected
waters and the Gulf of Mexico, create an ideal training area for the U.S. Navy. These waterways also
add to the area's economy through the Pensacola's Municipal Port Facilities handling cargo
shipments to and from all parts of the world. Rail service also aids in the support of the port facilities
with spurs running to the docks. While the southern and eastern most areas of Pensacola are nearly
fully developed and are blocked from additional growth by the bays and Gulf of Mexico, there is
plenty of developable land in the general area. The western and northern land areas of Escambia
County and the Pace and Gulf Breeze areas of Santa Rosa County are the locations of current
development and have proven to be popular among the new residents coming to the area. There is
plenty of available land remaining for future growth for years to come.
        Overall, the area's physical characteristics are considered a real asset for the general area of
Pensacola. There is plenty of available land for additional business and residential development. The
beaches and waterways create ideal recreational facilities for newcomers. The moderate
temperatures and year-round sunshine also entice a large number of new businesses to the area,
which aid in creating a larger population. South Florida has had problems in past years with
dwindling drinking water supplies; however, the Pensacola area has an abundance of drinking water
adding to its future development potential.




                                                   19
GENERAL AREA DATA (Cont'd.)


GENERAL AREA DATA CONCLUSION


         The Pensacola MSA's general area is considered to have a steady future. The increasing
population is creating a demand for housing and rental properties, which is expected to continue
over the next five years. With the expanding Navy and Air Force bases and tourist industry aided by
governmental support of private industry expansion, past growth trends are expected to continue.
Further, the tourist populations are increasing and the latest information indicates the 2008 tourist
population increased 5% over the 2007 numbers. These residential and tourist population increases
will create more demand for commercial support properties and with the subject property being
found at the major intersection in Navarre, it is posed to take good advantage of the area’s future
needs.




                                                 20
NEIGHBORHOOD LOCATION MAP




            21
                                 NEIGHBORHOOD ANALYSIS

        A neighborhood is defined in The Dictionary of Real Estate Appraisal, Fourth Edition
2002 as: "A group of complimentary land uses; a congruous grouping of inhabitants,
buildings, or business enterprises.”3 Neighborhood boundaries are defined because properties
within neighborhoods tend to be similar in characteristics with regard to land use,
desirability, and are affected by similar physical, economic, governmental and social forces.
        Using the map on the preceding page, the subject neighborhood is defined as the
Navarre area of Santa Rosa County. This community is bordered to the south by Santa Rosa
Sound, to the north by East Bay, to the west by the Avalon Bridge/Hwy 281 and to the east
by the Santa Rosa County/Okaloosa County line. The main east/west arterial is Navarre
Parkway/Highway 98, which connects the Navarre area to Gulf Breeze and Pensacola
heading west and Fort Walton Beach heading east. The main north/south arterials are
Highway 87, which connects Navarre to I-10 approximately 19 miles to the north, and the
Avalon Bridge/Highway 281 which also connects East Gulf Breeze to I-10 approximately 12
miles to the north. The Navarre central business district is centered around the Highway 98
and Highway 87 intersection making the subject parcel one of the most desirable commercial
properties in Navarre. The Gulf Breeze central business district is approximately 16 miles
west of the subject property. Fort Walton Beach is approximately 10 miles east.
        In order to better identify the make up of this community, I obtained a market profile
report offering statistical information within a five-mile radius. In 2008 there were reportedly
23,527 residents living in this area (2.7 residents per household) and over the past seven
years the population has been increasing at an annual rate of 6.17%.
        The annual growth rate over the next five years is expected to be slightly more than
4% or about 1,058 new residents per year. With an average household size of 2.7 people,
there will be a need for about 392 new homes per year for the next five years. The median
age is 39.8 indicating a largely young, work force age population.




3
  The Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago, Illinois: Appraisal Institute,
2002), pg. 193.
                                                        22
NEIGHBORHOOD DATA (Cont’d.)


       About 6% of the population is employed by the armed forces and the remaining
employed population is a part of the civilian labor force. Total employment is divided as
being 63.4% white collar, 16.7% service industry, and 19.8% blue collar. The indicated
unemployment rate is 5%, which is in line with the unemployment rates being realized by
Florida as a whole. The median household income for the area is $57,774, which is slightly
above the U.S. average of $53,154.
       The subject neighborhood has experienced rapid residential and commercial growth
within the past decade, slowing within the past few years as housing sales became sluggish.
In the western portion of the neighborhood is the Holley by the Sea development, which
offers a large range of homes and home sites along with amenities including a common
beach, common swimming, and tennis club. The Hidden Creek Golf and Country Club, one
of the regions finer golf courses, is also located within the Holley by the Sea project. Holley
by the Sea is by far the largest single development in the area but there are numerous single
family residential subdivisions found to the east and west of the subject property, with
Commercial developments found primarily along Highway 98.
       The residential market in the area of East Gulf Breeze and Navarre has been sluggish
since 2006 as seen in the following chart. Prices have been lowered, and properties are
experiencing longer marketing times. Due to the decline of recent home, condominium and
attached housing sales, many developers and owners of large tracts of land are either selling their
properties or holding them until supplies are absorbed and prices increase to a point that
development is financially feasible again.




                                                23
NEIGHBORHOOD DATA (Cont’d.)


                Multiple Listing Service Pensacola - Residential Market Data Since 2005

                                                                                    Average
                                                  Type Housing
        Date           Area                                          Units Sold    Sold Price   % Change
                       Gulf Breeze
        2005                                        Attached             45        $226,959
                       and Navarre
                       Gulf Breeze
        2006                                        Attached             46        $217,284        -4%
                       and Navarre

        2007           Gulf Breeze                  Attached             29        $233,553        +7%
                       and Navarre
                       Gulf Breeze
        2008                                        Attached             25        $226,606        -3%
                       and Navarre
                       Gulf Breeze
 Active Listings MLS                                Attached         71 Listings   $373,816        N/A
                       and Navarre


        Date           Area                       Type Housing       Units Sold           Price Range
                       Gulf Breeze
        2005                                        Detached            946        $311,770
                       and Navarre
                       Gulf Breeze
        2006                                        Detached            724        $287,619        -8%
                       and Navarre
                       Gulf Breeze
        2007                                        Detached            692        $269,533        -6%
                       and Navarre
                       Gulf Breeze
        2008                                        Detached            641        $262,894        -2%
                       and Navarre
                       Gulf Breeze
       Active                                       Detached        664 Listings   $389,874        N/A
                       and Navarre


        Date           Area                       Type Housing       Units Sold           Price Range
                       Gulf Breeze
        2005                                           Condos            40        $327,410
                       and Navarre
                       Gulf Breeze
        2006                                           Condos            28        $233,125        -29%
                       and Navarre
                       Gulf Breeze
        2007                                           Condos            30        $215,911        -7%
                       and Navarre
                       Gulf Breeze
        2008                                           Condos            25        $302,780       +40%
                       and Navarre
                       Gulf Breeze
       Active                                          Condos       108 Listings   $401,780        N/A
                       and Navarre




                                                  24
NEIGHBORHOOD DATA (Cont’d.)

       The overall “Attached Housing” and “Condominium” markets in the Gulf Breeze and
Navarre area are oversupplied. Using the sales from 2008 as a model for absorption, the
existing supply of attached single family units will last just under three years and detached
single family homes will last just over one year. There is enough supply of condos to last just
over four years.
       The single family market has a little brighter outlook than does the attached market
and condo market. Currently there are a total of 664 homes for sale in the Navarre/Gulf
Breeze area (per Pensacola MLS) with an average price of $389,874 and a median price of
$257,000. The 2008 sales totaled 641 indicating there is just over a 12 month supply of
homes available for sale. The homes that sold had an indicated average days on the market of
162 or just over 5 months. Economists state that once the inventories drop to below a 9
month supply, new construction is necessary. With this in mind, new single family
construction appears to be ready for new homes in the spring/summer of 2009.
       As stated, the “Town Center” of Navarre is found at the intersection of Highway 98
and Highway 87 and extends about ½ mile east and west. It includes several strip shopping
centers, the largest of which are the Publix Grocery Center to the west of Highway 87 and the
Winn Dixie Grocery Center to the east of Highway 87. The commercial vacancy rate in the
area had been less than 5% prior to 2007, but is now increasing, as several retail businesses
have closed and space is sitting vacant.
       There are several fast-food restaurants along Highway 98 in the Navarre Town Center
area, (McDonalds, Taco Bell, Kentucky Fried Chicken, Waffle House), and several dine-in
restaurants (Rick’s Crab Shack, Cancun Mexican Grill.), along with free-standing retail
shops, offices and gas stations. A new outpatient medical facility and several doctor’s offices
are also located along this corridor.




                                              25
NEIGHBORHOOD DATA (Cont’d.)


       In the long term, the neighborhood is expected to maintain past growth trends and the
Navarre Beaches are expected to continue to draw tourists to the area. The rapid growth that
was expected before 2006 may have slowed, but when the current supply of homes and
condominiums is absorbed, development is expected to resume once again. One factor that
will help area absorption rates are the 6,000 new personnel expected at the Eglin Air Force
Base by the year 2010. These new personnel will largely live off base and the surrounding
communities of Navarre, Freeport, Niceville, Fort Walton and Crestview are set to take
advantage of this population growth, as most currently have oversupplies of housing in
anticipation of the growth. With the population growth there will be additional demand for
commercial support facilities and demand for new commercial properties will once again
start to take place.




                                            26
                       TAXES AND ASSESSMENT ANALYSIS

         The subject property is currently assessed by the Santa Rosa County Property Appraiser’s
Office under four parcel numbers. The parcel number, assessment, taxes and whether the taxes
are current is outlined in the following chart.


Parcel Number                          Assessment           Taxes          Current/Owed
28-2S-27-0000-00600-0000               $1,911,127           $28,591.03    $69,088.37
28-2S-27-0000-01700-0000               $1,647,667           $24,649.59    $61,458.72
28-2S-27-0000-01801-0000               $102,326             $1,530.83     $3,651.11
21-2S-27-0000-02402-0000               $376,113             $5,626.77     $12,766.69
Totals                                 $4,037,233           $60,398.22    $146,964.89


         As noted above, the taxes for the 2007 and 2008 tax years have not been paid and are
currently due.
         The assessed value and associated taxes are considered to be very reasonable and would
have no negative effect on the property value or marketability. It should be noted, however, that
a sale of the property or completion of a proposed development would trigger a re-assessment of
the property and the assessed values and taxes would be expected to increase.




                                                  27
             LAND USE PLANNING, ZONING, CONCURRENCY




       On April 27, 2006, the Santa Rosa County Board of County Commissioners approved a
request for rezoning/large scale future land use amendment changing the portion of the property
previously zoned “R-1” Single Family Residential to “PUD”, Planned Unit Development and
changing the future land use map from Single Family Residential to Medium Density Residential.
This includes approximately 67.19-acres of the Rosemary Sound Overlay District. The Shores of
Santa Rosa Community Development District encompasses the entire 91.59-acres of the subject
property and will include the development of the infrastructure and amenities for 825 residential
units and approximately 49,000 square feet of commercial space. A development order was issued in
2006 and was extended July 11, 2008 through July 13, 2009.




                                               28
                      PUBLIC AND PRIVATE RESTRICTIONS

          Public restrictions as to "use" are discussed within the preceding zoning section. As
previously discussed, the property will be developed through a community development district with
restriction to use included within the covenants and restrictions for the development. I have not been
provided with these documents and assume these to be no more restrictive than the typical mixed-
use development in the subject’s area. I was not provided with a title search for the property and
assume there to be no plat, deed or other private restrictions on the property. Should other deed
restrictions be present, the value of the property could be adversely affected.



                            ENVIRONMENTAL CONCERNS

          As stated, the subject property contains approximately 23.79-acres of jurisdictional
wetlands of which less than one acre will be impacted. The current owners have purchased
other wetlands for mitigation purposes and a wetlands disturbance permit was issued in May
2006. The remaining wetlands will be conserved in their natural state. As the remaining land
is vacant, there is no logical reason for other environmental concerns. No evidence of surface
soil stain was noted on the property and it is assumed that no environmental contamination
exists.
          The above is a very important assumption and limiting condition to the appraisal.
From the inspections, we observed no evidence of hazardous substances “obvious to the
untrained person” and received no communication “through a reasonably reliable person”
indicating possible contamination.




                                                  29
SURVEY




  30
PROPOSED SITE PLAN




        31
             PHOTOGRAPHS




            View of Subject Property




View of Missy Road down the center of the Subject



                       32
      PHOTOGRAPHS




View of U.S. Highway 98 Facing East




View of U.S. Highway 98 Facing West



                33
PHOTOGRAPHS




    Aerial




     34
                                 SITE DESCRIPTION

       For better visualization of this narration, please refer to the preceding survey, master
plan drawing, photographs and aerial.


AREA:                        The subject property contains 91.59 acres, with approximately
                             67.8 acres of uplands and approximately 23.79 acres of
                             jurisdictional wetland areas. The property contains
                             approximately 855 feet of frontage along the south right-of-way
                             of U.S. Highway 98 and approximately 833 feet of frontage
                             along Santa Rosa Sound.

SHAPE:                       The property is rectangular in shape and the utility for the
                             upland areas is considered to be good.

DIMENSIONS:                  According to the survey provided the dimensions for the
                             property are as follows: 854.76’ (along Highway 98) x 2,254.61’
                             x 308.07’ x 1,832.53’ x 832.55’ (along Santa Rosa Sound) x
                             475.95’ x 132.06’ x 3,496.47’.

INGRESS/EGRESS:              As shown on the site survey, the property is accessed from U.S.
                             Highway 98, a main arterial with a median crossing in front of
                             the property. Ingress and egress for the property are considered
                             to be good.

TOPOGRAPHY:                  The site is primarily level with no irregular topographical
                             features noted other than the wetland areas.

FLOOD DATA:                  According to FEMA Flood Insurance Rate Map # 120274 0353,
                             dated January 19, 2000, the subject site is located in flood zone
                             “X”, areas determined to be outside the 500-year floodplain,
                             flood zone “AE”, (El. 9 and 10) base flood elevations
                             determined and flood zone “VE”, (El. 10, 11 and 12), coastal
                             flood with velocity hazard (wave action), base flood elevations
                             determined. The flood zones are not depicted on the survey on
                             the previous page, but is included on the more detailed pages of
                             the survey included within the addendum of this report.

DRAINAGE:                    The site appeared to be well drained with no standing water
                             noted. The appraiser did not walk the entire property and
                             wetlands are noted as covering approximately 23.79 acres.



                                              35
SITE DESCRIPTION (Cont’d)



DRAINAGE: (Cont’d.)   According to Department of Environmental Protection permit
                      #57-0229107-001-DF, a portion of the wetlands will be crossed
                      and filled to access the uplands in the southern half of the
                      property. This permit expires May 31, 2011.

SOIL COMPOSITION:     The soil within this region is sandy in composition and is
                      conducive to residential and commercial development as
                      evidenced by other similar projects found on nearby properties
                      with similar soil types.

UTILITIES ON SITE:    All public and private utilities are available. Water and sewer
                      will be provided by the South Santa Rosa Utilities and the
                      Midway Water Company. Electricity is provided by Gulf Power
                      Company with AT&T provided phone service and Medicom
                      providing cable service. The impact fees for the utilities will
                      average approximately $5,510 per dwelling unit and the road
                      impact fees will average approximately $1,280 per unit. The
                      impact fees for the planned development assuming 825 dwelling
                      units will total approximately $5,601,750.

SITE IMPROVEMENTS:    The site is currently vacant and ready to be developed to its
                      highest and best use.

EASEMENTS:            There were no easements or encroachments noted on the survey.
                      The survey provided was relied upon by the appraiser to be
                      correct. The appraiser is not a land surveyor and assumes the
                      survey provided is accurate.

RESTRICTIONS:         The only known restrictions are on the use or crossing of the
                      wetlands and the uses permitted in the development order for the
                      planned unit development as well as the covenants and
                      restrictions for the proposed development. While there may be
                      other restriction that would have been noted through a title
                      search of the property, I was not provided with a title search and
                      assume that no other restrictions apply to the property.




                                       36
SITE DESCRIPTION (Cont’d)


CONCLUSION OF
CONFORMITY:           The property is located along the south right-of-way of U.S.
                      Highway 98, just west of Smuggler’s Cove subdivision in the
                      Navarre area of South Santa Rosa County. U.S. Highway 98 is a
                      major arterial connecting Navarre to Pensacola to the west and
                      Fort Walton Beach to the east. The property to the north is
                      currently vacant as is the parcel directly to the west of the subject.
                      The Smuggler’s Cove development is located adjacent east of the
                      subject. The Santa Rosa Sound borders the south property line.
                      Highway 98 (Navarre Parkway) is improved with a variety of
                      commercial and residential uses. The subject proposed
                      improvements appear to conform to current zoning and mix well
                      with other area buildings.




                                        37
                                       HIGHEST AND BEST USE

         A brief definition of the term "highest and best use" would be:
         "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 productivity."4

         Implied within this definition is recognition of the contribution of that specific use to
community environment or to community development goals in addition to wealth
maximization. Also implied is that the determination of highest and best use results from the
appraiser's judgment and analytical skills, i.e., that the use determined represents an opinion,
not a fact.
         The Highest and Best Use section of this report is the pivotal point in the appraisal
process. All previous data is used to test the four criteria of: (1) legally permitted, (2)
physically possible, (3) economically feasible, and (4) maximally productive.


LAND AS THOUGH VACANT


         Legally Permissible - All legally permissible uses should be analyzed when
considering a site's highest and best use. The subject is zoned “PUD”, Planned Unit
Development allowing for the development of up to 825 residential units and 49,000 square
feet of commercial uses. The property has been incorporated in to a community development
district known as the Shores of Santa Rosa that allows for the district to issue bonds for the
development of the infrastructure and amenities for the planned unit development. Each
property owner within the district will be assessed annually for the repayment of the bonds.
The planned use is assumed to be a legally permissible use of the land given the current
zoning.

4
 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago, Illinois: Appraisal Institute, 2002), pg.
135.

                                                           38
39
HIGHEST AND BEST USE (Cont’d)


       Physically Possible - Of the legally permissible adaptations of the site, those physically
possible uses require consideration and analysis. The size and location of the parcel are
important aspects of value. The property includes a total land area of 91.59-acres, of which
approximately 23.79-acres are jurisdictional wetlands with the remainder being uplands. The
property contains approximately 855 feet of frontage along U.S. Highway 98 and approximately
833 feet of frontage along the shoreline of Santa Rosa Sound. A DEP permit has been issued
allowing for a small portion of the wetlands to be filled for a crossing allowing access to the
majority of the uplands. I have been provided with a master plan drawing indicating the total
density of 825 residential units and 49,000 square feet of commercial use. However, while the
property is zoned “PUD”, Planned Unit Development and the master plan has been submitted, I
do not have on file any records indicating that all setbacks within the PUD meet with the zoning
requirements. It is specifically assumed that the planned development with 825 residential units
is physically possible based upon the master plan submitted.
       Financial Feasibility - Of the legally permissible and physically possible adaptations
of the site, only those uses which are financially feasible should be considered. As described,
the subject site is located along a main arterial, which is surrounded by commercial, single-
family and multi-family uses. The site is large enough for single-family or multi-family uses.
However, given the site is vacant, development of the site as a mixed-use planned unit
development with a mixture of commercial, single-family and multi-family residential uses,
would allow a higher return to a developer for the costs incurred versus subdividing the
parcel into single family lots. Further, considering the site has been approved as a community
development district known as the Shores of Santa Rosa allowing for the issuance of bonds
for the development of the infrastructure and allowing for a special assessment on the
developed property for the repayment of the bonds, the planned development of a mixture of
825 residential units with approximately 49,000 square feet of commercial uses and a marina
would be a financially feasible use once the housing market stabilizes.




                                               40
HIGHEST AND BEST USE (Cont’d)


       As discussed within this report and as reported on the national news, the housing and
financial markets have been in a crisis for nearly a year now. The credit markets have
tightened and the over supply of existing housing has created downward pressure on
residential prices. Housing prices in the Pensacola MSA area have declined by as much as
30% to 40% in areas and sales have been slow. The Federal Reserve has dropped key interest
rates over the past year to assist in stabilizing the market and have recently taken over the
largest secondary mortgage market in Fannie Mae and Freddie Mac. The homebuilders have
been reducing prices and now are down to minimal profit on existing homes. Sales are
beginning to occur and it is my opinion that the housing market should stabilize within the
next year and a normal appreciation for homes and real estate should begin in 2010.
Considering all of this, the only feasible option for the subject property would be to hold the
property for future development in 2010 or soon thereafter. This should allow for the
absorption of the oversupply of homes within the subject’s market and create a demand for
the subject’s planned development.
       Maximally Productive - The financially feasible use, which results in the greatest
return to the land, is the one that is considered to be the highest and best use of the land. The
surrounding neighborhood has been developed with a variety of commercial and residential
properties along U.S. Highway 98, including retail stores, banks, restaurants and offices with
residential neighborhoods radiating away from the main thoroughfares. The greater density
offered by a residential development would tend to generate a greater return for the land. The
subject property is planned for a mixed-use development containing a total 825 residential
units and 49,000 square feet of commercial space.
       The property is located along the banks of the Santa Rosa Sound and includes a
proposed marina. A Community Development District known as the Shores of Santa Rosa
has been established allowing for the issuance of bonds for the development of the
infrastructure and amenities and allowing for special assessment on the developed property
for the repayment of the bonds. However, given the current housing market and the crisis
within the financial markets, beginning to develop the property within the next year would be

                                               41
very risky. It could




                       42
HIGHEST AND BEST USE (Cont’d)


be that the development would succeed, but allowing additional time for the market to
stabilize and allow for the absorption of the current housing market inventory would be
advisable. The highest and best use of the property is the development of the proposed master
plan, but in the future when the market demands reduce the risk of the project. It is my
opinion that this should occur within the next two years.


AS IMPROVED


       The subject land is currently vacant and available to be developed to its highest and
best use as vacant.




                                              43
                                            EXPOSURE TIME


         A brief definition of the term “exposure time” would be:


         “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 estimate
         based upon an analysis of past events assuming a competitive and open
         market.”5

         Based on the sales found within this report and conversations with local market
participants, the subject’s exposure time is estimated to be from one to two years. This
exposure time assumes the sale to have been handled by a knowledgeable real estate broker
familiar with the subject real estate market.




5
 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago, Illinois: Appraisal Institute, 2002),
pg. 105.

                                                          44
                                          MARKETING TIME


         A brief definition of the term “marketing time” would be:


         “The time it takes an interest in real property to sell on the market subsequent
         to the date of an appraisal.”6

         Based on the sales found within this report, current listings and conversations with
local market participants, the subject’s marketing time is estimated to be from one to two
years. This marketing time assumes the sale to be handled by a knowledgeable real estate
broker familiar with the subject real estate market. It also assumes aggressive real estate sales
tactics and readily available contacts active in the subject real estate market. The subject’s
marketing time is considered to be reflective of the exposure time as little change is expected
in the market.




6
 Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago, Illinois: Appraisal Institute, 2002),
pg. 175.
                                                          45
                             THE VALUATION PROCESS


       There are three (3) commonly accepted approaches to value: The Cost Approach,
Income Approach, and Sales Comparison Approach. All three utilize market-derived
information and are “market driven” approaches, as will be shown in the analysis.
       The Cost Approach is a summation of land value and improvement value. The land is
valued as though vacant and available for its highest and best use. The improvement is valued
by first estimating the reproduction costs new from which all forms of depreciation are
deducted. Depreciation can be both from deterioration and obsolescence. Obsolescence is
further categorized as functional or external. The analysis of obsolescence, based on the
highest and best use analysis, accounts for deductions necessary if the improvement is not
adequate for the site.
       The steps for the Income approach are to first estimate an economic rent for the
subject. This analysis is made even if the property is owner occupied. From the gross
potential income there is first deducted allowance for vacancy and collection loss with further
deductions then made for the expenses applicable to the type of property being valued. This
net operating income is then capitalized into an indication of value through the use of an
appropriate capitalization rate.
       The Sales Comparison Approach is an estimation of the property value by comparison
with recent sales of similar or competitive properties extracted from the subject’s market.
The “market”, rather than being the immediate proximity to the subject, is considered that
area, local, regional or even national, that would be considered by a prospective buyer of the
subject property.
       These approaches do not make value. They are merely tools in the hands of the
appraiser who must carefully weigh each value indication, give appropriate weight to the
approach and reconcile into a final value conclusion.
       Given that for the purpose of this report this property is being considered vacant, no
reasonable appraiser would apply the cost or income approach to value.



                                              46
                        SALES COMPARISON APPROACH


       The sales comparison approach involves direct comparisons to the subject property of
similar properties that have sold in the marketplace. The approach consists of searching the
market for sales, qualifying the sales prices and terms with one of the participants in the sale,
comparing the sales to the subject property for differences, adjusting the sales for those
differences and formulating an opinion of value from the adjusted value indications. The
improved sales, which are utilized, will be compared on a cost per unit basis depending on
the “typical” unit used by market participants.
       The market derived adjustments follow a specific, logical order so as not to skew the
results. The adjustments listed in order include: Property rights, financing, condition of sale,
date of sale or market conditions, location and various physical adjustments, which can be
considered together. While an adjustment for each may not be required, they are considered,
resulting in a comparable unit of measure.
       The units of comparison may be physical, such as dollars per square foot of area, or
they may be economic, such as gross rent multipliers. These units of comparison yield a
pattern, which is reconciled and converted to a value indication for the subject via the sales
comparison approach.




                                               47
LAND VALUATION




      48
                          COMPARABLE LAND SALE #1

File                  Residential Land (Acreage)
R.E. Zone             9
Location              This property is located along the south side of U.S. Highway 98, just
                      west of Joybrook Lane in the Navarre area of South Santa Rosa County,
                      Florida.
Date                  June 13, 2008
Reference             O.R. Book 2863, Page 314, Santa Rosa County, Florida
Grantor               Soundhaven Development Group, LLC
Grantee               Soundhaven, LLC
Legal                 Lengthy legal being a portion of Sections 23 and 26, Township 2S, Range
                      27 West, Santa Rosa County, Florida (Property I.D. being 23-2S-27-0000-
                      02900-0000, 21-2S-27-0000-00109-0000 and 26-2S-27-0000-01400-
                      0000).
Sales Price           $3,150,877
Rights Transferred    Fee Simple
Financing             Purchased the mortgage in the amount of $3,150,877 from Beach
                      Community Bank
Condition of Sale     Arms Length Transaction
Dimensions            This property offers 268 feet of frontage along the Santa Rosa Sound and
                      approximately 266 feet of frontage along U.S. Highway 98. 266.5’ x
                      2,202.45’ x 268.29’ x 2,193.46’
Zoning                3.35-Acres HCD – Highway Commercial District
                      10.14-Acres R-2, Medium Density Residential
Utilities Available   All public and private utilities were available.
Size (Square Foot)    587,722 SF                      Price/Square Foot $5.36/SF
Size (Acre)           13.49 Acres                     Price/Acre          $233,571/Acre
Size (Front Foot)     268 FF                          Price/Front Foot    $11,757/FF
Density               101 Units                       Price/Unit          $31,197/Unit
Confirmation          Rodger Lowery, MAI confirmed this information with John Kelly in
                      March 2009.
Comments              This is a rectangular shaped parcel with good utility that offers
                      approximately 268 feet of frontage along the Santa Rosa Sound. The
                      property had preliminary approval and wetland mitigation completed for a
                      92-unit project. The buyer revised the site plan and increased the density
                      to 101-units being a mixture of townhouse and condos. The property was
                      previously purchased by the seller in December 2004 from Kane
                      Investments for $3,400,000. Kane Investments purchased the property in
                      February 2004 for $1,650,000. Soundhaven, LLC is owned by JFK
                      Holdings, LLC which essentially purchased the mortgage and foreclosed
                      on the property from Soundhaven Development Group.

                                              49
50
                          COMPARABLE LAND SALE #2

File                  Residential Land (Acreage) 15
R.E. Zone             9
Location              This property is located on the north side of Highway 98 across from
                      Joybrook Road in the Navarre area of the Gulf Breeze Peninsula in Santa
                      Rosa County, Florida.
Date                  February 11, 2008
Reference             O.R. Book 2805 Page 887
Grantor               Navarre Villas, LLC
Grantee               Titan Ventures Management Corporation
Legal                 Lengthy legal being a portion of Section 24, Township 2S, Range 27
                      West, Santa Rosa County, Florida (Property I.D. a portion of #24-2S-27-
                      0000-00101-0000).
Sales Price           $7,000,000
Rights Transferred    Fee Simple
Financing             Cash
Condition of Sale     Arms Length Transaction
Dimensions            This property offers 1,231 feet of frontage along Highway 98 and has an
                      average depth of 635 feet.
Zoning                HCD – Highway Commercial District
Utilities Available   All public and private utilities were available.
Size (Square Foot)    781,902 SF                     Price/Square Foot     $8.95/SF
Size (Acre)           17.95 Acres                    Price/Acre            $389,972/Acre
Size (Front Foot)     1,231 FF                       Price/Front Foot      $5,686/FF
Confirmation          Lee Benton confirmed this information with Rodger Lowery, grantor
                      (850-982-9032), on 3/4/08.
Comments              This is a rectangular shaped parcel with good utility that offers 1,231 feet
                      of frontage along the north side of Highway 98. At the time of sale, the
                      land was level and cleared with no wetlands. No development plans were
                      known. The grantor purchased the property in June of 2005 for $4,900,000
                      (O.R. 2468/1722) indicating a monthly appreciation of 1.3% and an
                      annual appreciation of 15.6%.


                                                51
52
                              COMPARABLE LAND SALE #3
File                     Residential Land
R.E. Zone                15
Location                 East side of Indian Trail Drive, Destin, Florida.
Date                     January 26, 2007

Reference                O.R. Book 2762, Page 3939

Grantor                  Okaloosa Walton College Foundation, Inc.
Grantee                  Titan Development, LLC.
Legal                    Lengthy legal retained in appraisers’ files; also identified as Okaloosa
                         County Parcel Number 00-2S-22-0000-0003-0010.
Sales Price              $8,100,000
Rights Transferred       Fee Simple
Financing                This sale will be financed with a conventional loan with terms considered
                         to be similar to a cash sale.
Condition of Sale        Arms Length Transaction
Dimensions               Numerous dimensions, with a total of 1,786 feet of frontage along
                         Choctawhatchee Bay and Indian Bayou
Zoning                   It was reported that the future land use designation is “BE”, Bay Estates
Utilities Available      Electricity and Telephone are available.
Size (Square Foot)       554,083 SF                    Price/Square Foot $14.61/SF
Size (Gross Acres)       12.72 Acres                   Price/Gross Acre      $636,792/Gross Acre
Size (Net Acres)         11.22 Acres                   Price/Net Acre        $721,925/Net Acre
Size (DU)                14 D.U.s                      Price/DU              $578,571/DU
Confirmation             Lisa Compton confirmed this information during the course of appraising
                         the property and with public records in January 2008.
Comments         This site includes a 1.5 acre pond and is encumbered by the Mattie & Coleman Kelly &
Family mausoleum, which must be maintained in perpetuity according to the deed issued to the current
owners. The buyers plan to enhance the mausoleum with a reflecting pond, manicured landscape, park
and parking area for the Kelly family to visit. At the time of sale this site was improved with a 6,669
square foot single family residence, a 1,350 square foot utility building and a 244 square foot mausoleum,
which were constructed in 1963. With the exception of the mausoleum, these improvements have reached
the end of their economic lives and contribute no value to the site. The buyers plan to develop the site to a
14-lot residential subdivision to be known as the Estates at Indian Point. Five of the planned lots will
include frontage on the bay, and 9 will have frontage along the bayou.



                                                     53
54
                            COMPARABLE LAND SALE #4

File                   Residential Land
R.E. Zone              15
Location               The property is located at the north end of Old Ferry Road, found north of
                       Highway 98 in South Walton County, Florida.
Date                   Four transactions between 3/10/06 and 5/2/06.

Reference              OR Book/Pages 2711/2233, 2716/179, 2716/193, and 2717/2084
Grantor                Joyce & Askew Knight, Alie Forester, Thomas & Pamela Russell, and
                       Beatrice F. Reynolds, Trustee

Grantee                Aquarian Development V, LLC

Legal                  Lengthy legal being a portion of Section 36, Township 2 South, Range 19
                       West, Walton County, Florida.

Sales Price            Four transactions totaling $6,975,000

Rights Transferred     Fee Simple
Financing              This sale was financed with a conventional loan with terms considered to
                       be similar to a cash sale.
Condition of Sale      Arms Length Transaction
Dimensions             Numerous dimensions with 1,700 feet of water frontage along Peach
                       Creek.
Zoning                 Neighborhood Planning Area/Infill
Utilities Available    All public and private utilities were available.
Size (Square Foot)      609,840 SF                     Price/Square Foot $11.44/SF
Size (Acre)             14 Acres                       Price/Acre              $498,214/Acre
Size (DU)               27 D.U.s                       Price/Acre              $258,333/DU
Confirmation            Lisa Compton confirmed this information with Onno Horn, a
                        representative of the buyer (850.622.1850) and Walton County Public
                        Records on 4/2/07 and 12/4/07.
Comments        This property has an irregular shape with 1,700 feet of frontage along Peach
Creek, which has a depth of 5’ in the vicinity of this property. This site is located on Old Ferry
Road, a clay road. Ingress and egress are considered to be good. This site contains a total of 6.54
acres of jurisdictional wetlands. The buyers of the property plan to develop the site with a 27 lot
subdivision with typical lot sizes of 60’ x 130’, but would not disclose their anticipated prices.


                                                 55
56
                            COMPARABLE LAND SALE #5

File                   Land
R.E. Zone              20
Location               This property is located on the south side of Highway 20 and the west side
                       of Highway 331 in Freeport, Florida

Date                   April 4, 2006
Reference              O.R. Book 2714 Page 1955
Grantor                Freeport Venture Partners, et.al.
Grantee                Lagrange Landing Development, Inc.
Legal                  Lengthy legal in Section 15, Township 1 South, Range 19 West, Walton
                       County, Florida (Tax I.D. #15-1S-19 – 2300-0036-0000 & 23-1S-19-
                       2300-0001-0032)
Sales Price            $17,000,000
Rights Transferred     Fee Simple
Financing              This was indicated to be a cash sale.
Condition of Sale      Arms Length Transaction
Dimensions             Numerous
Zoning                 “C-1” General Commercial
H&B Use:               Residential Development.
Utilities Available    All public and private utilities are available.
Size (Acre)            104 Acres                       Price/Acre        $163,462/Acre
Size (DU)              260 D.U.                        Price/DU          $65,385/DU
Confirmation            Tom Fruitticher, MAI confirmed this information with Jonathan Roberts,
                        Broker for the buyer (850-699-2846) in March of 2008.
Comments        This is an irregular shaped property that offers access frontage along the south
side of Highway 20 and along the west side of Highway 331 within the City limits of Freeport,
Florida. The land also includes frontage along Lagrange Creek; however, most of the creek
frontage is surrounded by wetlands and can not be seen. There are two upland strips that provide
access to the creek. While the land is zoned for a commercial use, it has very little high traffic
road frontage and the buyers purchased the property to develop a two phase residential
community that will include a total of 260 home sites. As of the writing of this report, the first
phase of this development was complete and 34 of the residential lots have closed. Since the
2006 closings of the residential lots, 5 have been re-listed for sale at prices that are 20% to 28%
lower than the original purchase price, indicating the market has declined since the highs seen in
2006.




                                                 57
Sale 3 Site & Aerial




         58
                               COMPARABLE LAND SALE #6

File                  Residential
R.E. Zone             Walton County, Florida
Location              Located along the east end of East Hodge Road with extensive frontage along
                      Choctawhatchee Bay and Churchill Bayou in Walton County, Florida.
Date                  September 21, 2005
Reference             O.R. Book 2692, Page 3712, Walton County, Florida
Grantor               Main Pass, LLC
Grantee               Sembera Holdings, LLC
Legal                 Lengthy legal description on file with the appraiser.

Sales Price           $25,109,600
Rights Transferred    Fee Simple
Financing             Conventional financing with Colonial Bank in the amount of $20,000,000.
Condition of Sale     Arms-Length Transaction
Dimensions            Numerous

Zoning                “NPA/Infill”, Neighborhood Planning/Infill
Utilities Available   All public and private utilities were available.
Size (Square Foot)    1,810,354 SF                      Price/Square Foot     $13.87/SF
Size (Acre)           41.56 Acres                       Price/Acre            $604,177/Acre
Units                 102 Units                         Price/Unit            $246,173/DU
Confirmation          Confirmed through an appraisal of the property in March 2008.
Comments              This sale represents the purchase of a slightly irregular shaped parcel located
                      along the east end of East Hodge Road with extensive frontage along
                      Choctawhatchee Bay and Churchill Bayou. The property contains approximately
                      4.52-acres of wetlands that have been placed in to a conservation easement to
                      offset wetland impacts for an access road. The owners obtained a final
                      development order and plan to list the lots with prices ranging from $550,000 to
                      $750,000 for interior lots and $750,000 to $2,000,000 for the water front lots.




                                                  59
60
                          COMPARABLE LAND SALE #7

File                  Waterfront Land
R.E. Zone             Bon Secour
Location              Located along County Road 4 (Bon Secour Avenue), just west of the
                      planned Bon Secour Village property in Gulf Shores, Alabama
Date                  September 12, 2006
Reference             Recording reference #100845
Grantor               Coastal Resort Properties, L.P and United Properties Group, LLC
Grantee               Gulf Shores Waterway Development, LLC
Legal                 Lengthy legal description being a portion of Section 7, Township 9 South,
                      Range 4 East in Baldwin County, Alabama.
Sales Price           $25,000,000 ($18,750,000 for 75% ownership with the Seller retaining
                      25% ownership.)
Rights Transferred    Fee Simple.
Financing             This sale was cash sale to seller.
Condition of Sale     Arms Length Transactions
Dimensions            2,000.14’ x 1,058.46’ x 335.67’ x 60’ x 400.08’ x 11.24’ x 2,162’
                      (Intracoastal Waterway) 1,112.28’
Zoning                “BTB-3”, Tourist Business, High Density allowing up to 30 dwelling units
                      per acre with a maximum height of 20 floors above five levels of parking.
Utilities Available   All public and private utilities were available.
Size (Square Foot)    2,222,721 SF                   Price/Square Foot   $11.25/SF
Size (Acre)           51.03 Acres                    Price/Acre          $489,940/Ac
Size (Front Foot)     2,162 FF                       Price/Front Foot    $11,563/FF
Size (D.U.)           1,531 DU                       Price/D.U.          $16,329/DU

Confirmation          Roger Lowery, MAI confirmed this information with Paul Kirkland, a
                      representative for Jim Mattei, the seller.
Comments              This site was purchased for the development of the Waterdance project.
                      This project is currently being approved as a “PUD”, Planned Unit
                      Development. The property contains approximately 20 acres of wetlands,
                      which adversely affect the development. The property adjoins the east end
                      of the Oyster Bay Dredge Disposal Area.



                                                61
62
                            COMPARABLE LAND SALE #8

File                   Waterfront Land
R.E. Zone              Bon Secour
Location               Located along County Road 6, just south of Henderson Lane in Gulf
                       Shores, Alabama.
Date                   July 25, 2006
Reference              Recording reference #991205 as well as contract and appraisal of the
                       property.
Grantor                Celestial Enterprises, Inc. (Larry and Amy Thompson-Green and James
                       and Sandra Ivy)
Grantee                Jay Anthony, LLC
Legal                  Lengthy legal description on file with the appraiser. Property is located in
                       Section 1, Township 9 South, Range 3 East in Baldwin County, Alabama.
Sales Price            $4,800,000
Rights Transferred     Fee Simple.
Financing              This sale was financed with a conventional loan in the amount of
                       $3,840,000 with First Cherokee State Bank with terms considered to be
                       similar to a cash sale.
Condition of Sale      Arms Length Transactions
Dimensions             298.29’ x 1,665.32’ x 331’ on the water x 1,550.54’
Zoning                 The property was zoned “R-1”, Single-Family Residential at the time of
                       the contract with preliminary approval for “BTL/PUD”, Tourist
                       Lodging/Planned Unit Development at closing.
Utilities Available    All public and private utilities were available.
Size (Square Feet)     490,050 SF                      Price/Square Foot       $9.79/SF
Size (Acre)            11.25 Acres                     Price/Acre              $426,667/Acre
Size (Front Foot)      331 FF                          Price/Front Foot        $14,502/FF
Size (D.U.)            122 DU                          Price/D.U.              $39,344/DU

Confirmation           Confirmed during the course of appraising the property in July 2006.
Comments         This site was purchased for condominium development containing 122 units. The parcel
contained approximately 5.9-acres of jurisdictional wetlands, however the proposed development will not
adversely affect these areas.




                                                  63
64
                           COMPARABLE LAND SALE #9

File                  Waterfront Land
R.E. Zone             Bon Secour, Alabama
Location              Located along Estella Davis Lane with access to County Road 6 on Plash
                      Island in Gulf Shores, Alabama.
Date                  July 28, 2005
Reference             Recording Reference #912538 through 912540, Baldwin County,
                      Alabama
Grantor               Charter Landing, Inc., Mark B. Reed and Head Companies, LLC
Grantee               Plash Island One, LLC
Legal                 Lengthy legal description on file with the appraiser.
Sales Price           $16,000,000
Rights Transferred    Fee Simple
Financing             Conventional financing in the amount of $9,600,000 with Bank of
                      Pensacola and $3,200,000 with First Commercial Bank indicating a total
                      loan-to-price of 80%.
Condition of Sale     Arms Length Transaction
Dimensions            Irregular with 347’ along Bon Secour River with extensive frontage along
                      an interior canal.
Zoning                “BTL/PUD”, Tourist Lodging/Planned Unit Development allowing for
                      300 residential condominium units
Utilities Available   All public and private utilities were available.
Size (Square Foot)    1,011,028 SF                   Price/Square Foot        $15.83/SF
Size (Acre)           23.21 Acres                    Price/Acre               $689,358/Acre
Size (Front Foot)     347 FF                         Price/Front Foot         $46,110/FF
Size (D.U.)            300 DU                       Price/D.U.              $53,333/DU
Confirmation           Confirmed by Rodger Lowery, MAI with Andy Yarborough, member of
                       development group on July 17, 2006.
Comments       This is the assemblage of seven parcels located just west of the bridge on to Plash
Island with frontage along the Bon Secour River. The purchaser had obtained preliminary
approval by the City of Gulf Shores for the development of the Five Waters Condominiums
consisting of 300 residential condominiums and 144 boat slips. This parcel included a long canal
that extended westward through the southern portion of the property. This water frontage is not
included in the above analysis.

                                               65
66
                       COMPARABLE ACTIVE LISTING #1

File                  Waterfront Land
R.E. Zone             Gulf Shores, Alabama
Location              Floyd Plash Lane in Gulf Shores, Alabama.
Reference             Baldwin County MLS #117274
Broker                Ken Montgomery, Charter Landing, Inc.
List Price            $12,000,000
Rights Transferred    Fee Simple
Size                  18 Acres with approximately 3,000 feet of frontage along Bon Secour
                      River
Zoning                Platted for 400 residential condominiums and 177 boat slips

Utilities Available   All public and private utilities were available.
Size (Acre)           18 Acres                       Price/Acre          $666,667/Acre
Size (D.U.)           400 DU                         Price/D.U.          $30,000/DU

Comments       This is a planned unit development with a total of 400 residential condominiums
               and 177 boat slips to be located along the Bon Secour River on Plash Island. The
               proposed development has approval with environmental and wetlands surveys
               completed. This property had been listed for $21,995,000 or $54,988 per unit. The
               listing price was reduced in late 2008.




                                                67
                       COMPARABLE ACTIVE LISTING #2

File                  Waterfront Land
R.E. Zone             Gulf Shores, Alabama
Location              Located along the north side of Fort Morgan Road, approximately ten
                      miles west of Highway 59 in Gulf Shores, Alabama.
Reference             Baldwin County MLS #145392
Broker                Jay Jennings of Pendulum Properties, LLC
List Price            $18,000,000
Rights Transferred    Fee Simple
Size                  24 Acres with approximately 2,000 feet of frontage along Mobile Bay and
                      Collins Bayou with similar frontage along Fort Morgan Road
Zoning                Zoned “BTL-FM” allowing for 360 units with a mixed-use allowing for
                      72 boat slips. Current zoning allows for 15 dwelling units per acre with 10
                      habitable floors, above one commercial floor above three levels of
                      parking.

Utilities Available   All public and private utilities were available.
Size (Acre)           24 Acres                       Price/Acre           $750,000/Acre
Size (D.U.)           360 DU                         Price/D.U.           $50,000/DU

Comments       This is a parcel of land located along Fort Morgan Road approximately ten miles
               west of Highway 59. The list of permits in hand include ADEM & Corps of
               Engineer permit through 2010, site plan submittal and architectural drawings.




                                                68
                       COMPARABLE ACTIVE LISTING #3

File                  Waterfront Land
R.E. Zone             Navarre, Florida
Location              Located along the south side of U.S. Highway 98, west of Joybrook Lane
                      and adjacent west of the Sound Haven development in Navarre, Florida.
Reference             Pensacola MLS #366427
Broker                Patricia Williamson, Exit Realty NFI
Seller                The Estate of W.F. Price
List Price            $2,500,000
Rights Transferred    Fee Simple
Size                  10.3 Acres with approximately 200-0feet of frontage along the Santa Rosa
                      Sound
Zoning                R-2, Medium Density Residential up to 10 dwelling units per acre

Utilities Available   All public and private utilities were available.
Size (Acre)           10.3 Acres                      Price/Acre          $242,719/Acre
Size (D.U.)           103 DU                          Price/D.U.          $24,272/DU

Comments       This is a vacant parcel of land containing approximately 4-acres of wetlands with
the remainder being uplands. No plans or development study has been completed for this
property. The property was recently listed for sale (3/9/2009).




                                                 69
70
                      COMPARABLE ACTIVE LISTING #4

File                  Waterfront Land
R.E. Zone             Navarre, Florida
Location              Located South of U.S. Highway 98 at the end of Joybrook Road in
                      Navarre, Florida
Reference             Pensacola MLS #350732
Broker                Patricia Williamson, Exit Realty, NFI
Seller                Edith H. Robison Irrevocable Trust
List Price            $3,800,000
Rights Transferred    Fee Simple
Size                  12.50 Acres with approximately 320-feet of frontage along the Santa Rosa
                      Sound
Zoning                R-2, Medium Density Residential

Utilities Available   All public and private utilities were available.
Size (Acre)           12.5 Acres                     Price/Acre          $245,632/Acre
Density               125 Units                      Price/Unit          $30,400/Unit
Comments       This property has not frontage along Highway 98 but is accessed via Joybrook
Road. The owners had a wetlands delineation performed that indicated approximately 5-acres of
wetlands with the remaining 7.5-acres being uplands. No development studies or plans are
included in the listing price




                                                71
72
                                       LAND VALUE ANALYSIS


  Comp        Location         Price        Date              Size      Units       $/Acre        $/DU
                                                             (Ac.)
 Sale #1     Navarre, Fl.    $3,150,877   6/13,2008        13.49 Ac.    101 DU    $233,571/Ac   $31,197/DU
                                                                                            .
 Sale #2     Navarre, Fl.     7,000,000   2/11/2008        17.95 Ac.    180 DU    389,972/Ac.    38,889/DU
 Sale #3      Destin, Fl.     8,100,000   1/26/2007        12.72 Ac.     14 DU    636,792/Ac.   578,571/DU
 Sale #4       Walton         6,975,000   3-5/2006            14 Ac.     27 DU    498,214/Ac.   258,333/DU
             County, Fl.
 Sale #5     Freeport, Fl.   17,000,000    4/4/2006          104 Ac.    260 DU     163,462/Ac    65,385/DU
 Sale #6       Walton        25,109,600   9/21/2005        41.56 Ac.    102 DU     604,177/Ac   246,173/DU
             County, Fl.
 Sale #7         Gulf        25,000,000   9/12/2006        51.03 Ac.   1,531 DU   489,940/Ac.    16,329/DU
             Shores, Al.
 Sale #8         Gulf         4,800,000   7/25/2006        11.25 Ac.    122 DU     426,667/Ac    39,344/DU
             Shores, Al.
 Sale #9         Gulf        16,000,000   7/28/2005        23.21 Ac.    300 DU    689,358/Ac.    53,333/DU
             Shores, Al.
Listing #1       Gulf        12,000,000    Current           18 Ac.     400 DU     666,667/Ac    30,000/DU
             Shores, Al.
Listing #2       Gulf        18,000,000    Current           24 Ac.     360 DU    750,000/Ac.    50,000/DU
             Shores, Al.
Listing #3   Navarre, Fl.     2,500,000    Current          10.3 Ac.    103 DU    242,719/Ac.    24,272/DU
Listing #4   Navarre, Fl.     3,800,000    Current          12.5 Ac.    125 DU    245,632/Ac.    30,400/DU




Review
       The subject property contains approximately 91.59-acres of land containing
approximately 855 feet of frontage along the south right-of-way of U.S. Highway 98 and
approximately 833 feet of frontage along the Santa Rosa Sound. The property is zoned
“PUD”, Planned Unit Development for the Rosemary Sound development consisting of 825
residential units and 49,000 square feet of commercial space. The property has approximately
23.79-acres of jurisdictional wetlands and includes a DEP permit to fill a small portion of the
wetlands for road crossings to allow access to the southern uplands. The property is
incorporated in to a community development district known as the Shores of Santa Rosa
Community Development District allowing for the issuance of bonds for the construction of
the infrastructure and
                                                      73
74
LAND VALUE ANALYSIS (Cont’d.)


amenities and creating a special assessment district to collect assessments for the repayment
of the bonds.
       Given the inclusion of the approved community development district as well as the
existing development order and the DEP permit for the crossing of the wetlands, this is a very
unique opportunity for a property that is essentially ready to be developed. Due to the
uniqueness of the property and the entitlements, locating comparable land sales within the
past year was limited. This is further complicated by the recent financial crisis gripping the
nation’s economy whereby development land purchases have been limited. Of the nine land
sales located within the region, two occurred in 2008 and one in 2007 with four occurring in
2006 and two in 2005. I have also included four listings with two located in Navarre, Florida
and two located in Gulf Shores, Alabama.            The nine sales reflect a price range from
$3,150,877 to $25,109,600 or $163,462 to $689,358 per acre. The listings reflect a price
range from $2,500,000 to $18,000,000 or $242,719 to $750,000 per acre. The price per
dwelling unit for the nine sales reflects a much wider range from $16,329 to $578,571 per
unit with the listings reflecting a range from $24,272 to $50,000 per unit. Considering this,
the price per acre will be used in the following analysis. The adjustments that were
considered for the land sales and listings are as follows.
       PROPERTY RIGHTS SOLD – The property rights being considered are those of the
fee simple interest. The property rights transferred in the comparable sales were also those of
the fee simple interest. As the interests sold are similar to the interest being appraised, no
property rights adjustments are considered to be necessary.
       FINANCING - The comparable properties also sold for cash or terms considered
similar to a cash sale requiring no financing adjustments.
       CONDITIONS OF SALE - All of the sales were arms-length transactions requiring no
conditions of sale adjustments.
       MARKET CONDITIONS ADJUSTMENT – The sale dates are between July 2005
and February 2008. The market for development land hit a peak in the subject’s area in late



                                               75
LAND VALUE ANALYSIS (Cont’d.)


2005/early 2006 with the majority of waterfront development land having decreased in value
since early 2006. In the following chart I have outlined the sales activity for residential
detached, residential attached and condominiums in the Navarre area since 2005. This chart
indicates the price decreases over the past few years.
                          NAVARRE SALES ACTIVITY COMPARISON
 Property       Year        # of Sales  Average     Medium     % Change           % Change
   Type                                Sales Price Sales Price Avg. Price         Med. Price
 Residential    2009         168 **     $216,580    $209,200    -8% - 2008         +1% - 2008
  Detached                                                      -8% - 2007         -3% - 2007
                                                               -19% - 2006        -14% - 2006
                                                               -23% - 2005        -20% - 2005
                2008           281      $235,499    $207,000      0% - 2007        -4% - 2007
                                                               -12% - 2006        -15% - 2006
                                                               -17% - 2005        -20% - 2005
                2007           312      $235,708    $215,000   -12% - 2006        -12% - 2006
                                                                 -17% 2005          -17% 2005
                2006           292      $266,815    $243,812    -6% - 2005         -6% - 2005
                2005           381      $282,628    $260,000             ---               ---
               Current         235      $354,293    $239,900             ---               ---
               Listings

 Residential    2009           0           0               0                 0              0
  Attached
                2008           13       $303,023        $169,900    -7% - 2007    -48% - 2007
                                                                    +9% - 2006    -23% - 2006
                                                                    -6% - 2005    -48% - 2005
                2007           13       $326,769        $329,000   +18% - 2006    +50% - 2006
                                                                    +1% - 2005      +1% 2005
                2006           19       $277,383        $220,000   -14% - 2005    -32% - 2005
                2005           13       $322,915        $325,000            ---            ---
               Current         46       $438,346        $298,817            ---            ---
               Listings

Condominiums   2009 ***         2       $118,450        $105,950            ---            ---
                 2008          16       $365,131        $372,500    -4% - 2007     -8% - 2007
                                                                   -34% - 2006    -23% - 2006
                                                                   -34% - 2005    -38% - 2005
                2007           6        $380,983        $402,500   -31% - 2006    -17% - 2006
                                                                   -31% - 2005    -33% - 2005
                2006            6       $552,667        $486,500      0 – 2005    -19% - 2005
                2005           12       $551,708        $597,500            ---            ---
               Current         84       $469,490        $454,500            ---            ---
               Listings



                                                   76
LAND VALUE ANALYSIS (Cont’d.)


       As noted in the previous chart, the 2009 detached residential sales reflect an average
price decrease from 2008 of 8% and 8% down from 2007 but reflect a decrease of 19% since
2006 prices and 23% since 2005 prices. With no residential attached sales having occurred in
2009, the 2008 prices reflect a decrease of 7% over the 2007 prices, a 9% increase over the
2006 prices and a 6% decrease over the 2005 prices. Similar to the residential attached sales,
there is limited data for condominium sales in 2009. However, the 2008 sales reflect a 4%
decrease over the 2007 prices and a 34% decrease over the 2006 and 2005 prices.
       Considering the data provided, I have reconciled a downward market conditions
adjustment of 8% for sales occurring in 2008 and 2007, a downward market conditions
adjustment of 20% for sales occurring in 2006 and a downward market conditions adjustment
of 25% for sales occurring in 2005. Also, the four listings are adjusted downward 10% to
reflect a possible sales price compared to the current listing price.
       Applying these adjustments indicates adjusted prices of $214,885/acre for sale one,
$358,774/acre for sale two, $585,849/acre for sale three, $398,571/acre for sale four,
$130,770/acre for sale five, $453,133/acre for sale six, $391,952/acre for sale seven,
$341,334/acre for sale eight and $517,019/acre for sale nine. The four listings reflect adjusted
prices of $600,000/acre for listing one, $675,000/acre for listing two, $218,447/acre for
listing three and $221,069/acre for listing four.
       LOCATION ADJUSTMENT – The subject property is located in a good location in
close proximity to a growing metro area and has extensive water frontage along deep water.
The location compares as similar to sale one and listings three and four and superior to sales
two and five, but inferior to the other comparables. In comparison with the subject and using
a direct sales analysis between sales five and six, I have applied a downward location
adjustment of 40% to sale six with an upward location adjustment of 50% to sale five. Using
this same analysis, an upward adjustment of 15% is applied to sale two due to its lack of




                                                77
LAND VALUE ANALYSIS (Cont’d.)




waterfront with a downward location adjustment of 40% to sale three and a downward
adjustment of 20% to sale four. Applying these adjustments indicates a location adjusted
price of $412,590/acre for sale two, $351,509/acre for sale three, $318,857/acre for sale four,
$196,155/acre for sale five and $271,880/acre for sale six. The remaining sales and listings
one and two require downward location adjustments of 10% for their slightly superior
locations in the Gulf Shores market. These adjustments are reflected in the following
adjustment chart and indicate an adjusted price of $352,757/acre for sale seven,
$307,201/acre for sale eight, $456,317/acre for sale nine, $540,000/acre for listing one and
$607,500/acre for listing two.
       PHYSICAL CHARACTERISTIC ADJUSTMENTS – All of the sales offer similar
physical characteristics to the subject property, with the exception of size.
       SIZE ADJUSTMENT – The thirteen comparable sales and listings range from 10.3
acres up to 104 acres bracketing the subject’s 91.59 acres. Typically as the size of a property
decreases, the price per unit or acre increases. This is evident in the comparables. Using a
direct comparison between the adjusted sales three and four ranging from 12.72 to 14 acres
with sale five indicating 104 acres, a downward adjustment of approximately 35% is applied
to sales three and four to compare to the size of sale five and the subject. A similar downward
adjustment of 35% is applied to sales one, two and eight and listings one, three and four. In
comparing sales six and seven being 41.56-acres and 51.03-acres to sale five, a downward
adjustment of 25% is applied to sales six and seven. With sale nine and listing two having a
size between the other sales, a downward adjustment of 30% is applied to these two
comparables.
       Applying the size adjustments indicates a size adjusted price of $139,675/acre for sale
one, $268,184/acre for sale two, $228,481/acre for sale three, $207,257/acre for sale four,
$196,155/acre for sale five, $203,916/acre for sale six, $264,568/acre for sale seven,
$199,681/acre for sale eight, $325,722/acre for sale nine, $351,000/acre for listing one,
$425,250/acre for listing two, $150,930/acre for listing three and $263,250/acre for listing

                                               78
four.




        79
LAND VALUE ANALYSIS (Cont’d.)


       With no other adjustments required, the above indicated adjustments are summarized
in the following adjustment grid:


                                     Adjustment Chart
  Comp       Price/Acre    Mkt.      Adj. $/Ac        Location    Adj.      Size    Adj. $/Ac.
                           Cond.                                  $/Ac.
                            Adj.
 Sale #1      $ 233,571     -8%       $214,885          -0-      $214,885   -35%       $139,675
 Sale #2        389,972     -8%        358,774         +15%       412,590   -35%        268,184
 Sale #3        636,792     -8%        585,849         -40%       351,509   -35%        228,481
 Sale #4        498,214    -20%        398,571         -20%       318,857   -35%        207,257
 Sale #5        163,462    -20%        130,770         +50%       196,155    -0-        196,155
 Sale #6        604,177    -25%        453,133         -40%       271,880   -25%        203,916
 Sale #7        489,940    -20%        391,952         -10%       352,757   -25%        264,568
 Sale #8        426,667    -20%        341,334         -10%       307,201   -35%        199,681
 Sale #9        689,358    -25%        517,019         -10%       465,317   -30%        325,722
Listing #1      666,667    -10%        600,000         -10%       540,000   -35%        351,000
Listing #2      750,000    -10%        675,000         -10%       607,500   -30%        425,250
Listing #3      242,719    -10%        218,447          -0-       232,200   -35%        150,930
Listing #4      245,632    -10%        221,069          -0-       405,000   -35%        263,250




VALUE RECONCILIATION


       After adjustments, the comparable sales indicate an adjusted range from $139,675 to
$325,722 per acre, averaging $225,960/acre. Excluding the high and low end of the range, the
sales reflect an adjusted range from $196,155 to $268,184 per acre with an average of
$224,035/acre. The four listings reflect a range from $150,930 to $425,250 per acre
averaging $297,608 per acre.
       In reconciling the subject’s value via the comparable sales, I have analyzed the gross
and net adjustments for each sale. Sales one, two and five reflect the lowest percentage of net
adjustments with sales one reflecting an adjusted value of $139,675/acre and net adjustments
of 43% (43% gross adjustments), sale two reflecting an adjusted price of $268,184/acre with

                                                 80
LAND VALUE ANALYSIS (Cont’d.)




net adjustments of 28% (58% gross adjustments) and sale five reflecting an adjusted price of
$196,155/acre with net adjustment of 30% (gross adjustments of 70%). The remaining sales
reflect net and gross adjustment range from 60% to 90%. With the exception being sale one,
which involved a pre-foreclosure condition, given the adjustment percentage to the
comparable sales I place most weight on sales two and five and listings four and five
reflecting a combined average of $219,630/acre in reconciling the subject’s current market
value at $220,000 per acre. Applying this to the subject’s 91.59-acres indicates a current as-is
market value of $20,149,800. Subtracting the property taxes currently due for the 2007 tax
year in the amount of $86,567 indicates a value of $20,063,233, rounded to $20,000,000.


                               LAND VALUE OPINION
                                        $20,000,000




                                              81
PART THREE: CERTIFICATIONS AND ADDENDA




                  82
                                                                  CERTIFICATION

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

1. The statements of fact contained in this report are true and correct.

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

3. We have no present or prospective interest in the property that is the subject of this report and we have no
     personal interest or bias with respect to the parties involved.

4. Our compensation is not contingent upon the reporting of a predetermined value or direction in value that
     favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the
     occurrence of a subsequent event.

5. This appraisal was not based on a requested minimum valuation, a specific valuation, or the approval of a
     loan.

6. Our analyses, opinions, and conclusions were developed, and this report has been prepared in conformity
     with the Uniform Standards of Professional Appraisal Practice.

7. We have made a personal inspection of the property that is the subject of this report.

8. No one provided significant professional assistance to the persons signing this report.

9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in
     conformity with the requirements of the Code of Professional Ethics and the Standards of Professional
     Appraisal Practice of the Appraisal Institute.

10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
     authorized representatives.

11. As of the date of this report we have completed the requirements of the continuing education program of
     the Appraisal Institute.

12. The subject of this appraisal report is identified as the Shores of Santa Rosa Community Development
     District encompassing approximately 91.59-acres of land located along the south right-of-way of U.S.
     Highway 98 in Navarre, Florida. The estimated “as-is” value of the real estate, as of March 23, 2009, was
     $20,000,000.
                          Digitally signed by Rodger K. Lowery,
 Rodger K.                MAI
                          DN: CN = Rodger K. Lowery, MAI, C =
                          US, O = Fruitticher-Lowery Appraisal
 Lowery, MAI              Group, Inc.
____________________________
                          Date: 2009.03.26 13:59:47 -05'00'


Rodger K. Lowery, MAI
State-Certified General Real Estate Appraiser #RZ1922




                                                                        83
                 ASSUMPTIONS AND LIMITING CONDITIONS

1. No responsibility is assumed for legal or title considerations. Title to the property is assumed to
    be good and marketable unless otherwise stated in this report.
2. The property is appraised free and clear of any or all liens and encumbrances unless otherwise
    stated in this report.
3. Responsible ownership and competent property management are assumed unless otherwise stated
    in this report.
4. The information furnished by others is believed to be reliable. However, no warranty is given for
    its accuracy.
5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are
    included only to assist the reader in visualizing the property.
6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or
    structures that render it more or less valuable. No responsibility is assumed for such conditions or
    for arranging for engineering studies that may be required to discover them.
7. It is assumed that there is full compliance with all applicable federal, state, and local
    environmental regulations and laws unless otherwise stated in this report.
8. It is assumed that all applicable zoning and use regulations and restrictions have been complied
    with, unless a nonconformity has been stated, defined, and considered in this appraisal report.
9. It is assumed that all required licenses, certificates of occupancy or other legislative or
    administrative authority from any local, state, or national governmental or private entity or
    organization have been or can be obtained or renewed for any use on which the value estimates
    contained in this report are based.
10. Any sketch in this report may show approximate dimensions and is included to assist the reader
    in visualizing the property. Maps and exhibits found in this report are provided for reader
    reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise
    stated in this report. No survey has been made for the purpose of this report.
11. It is assumed that the utilization of the land and improvements is within the boundaries or
    property lines of the property described and that there is no encroachment or trespass unless
    otherwise stated in this report.
12. The appraisers are not qualified to detect hazardous waste and/or toxic materials. Any comment
    by the appraisers that might suggest the possibility of the presence of such substances should not
    be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such
    determination would require investigation by a qualified expert in the field of environmental
    assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or
    other potentially hazardous materials may affect the value of the property. The appraisers’ value
    estimate is predicated on the assumption that there is no such material on or in the property that
    would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for
    any environmental conditions, or for any expertise or engineering knowledge required to discover
    them. The appraisers’ descriptions and resulting comments are the result of the routine
    observations made during the appraisal process.




                                                  84
ASSUMPTIONS AND LIMITING CONDITIONS (Cont’d.)


13. Unless otherwise stated in this report, the subject property is appraised without a specific
    compliance survey having been conducted to determine if the property is or is not in conformance
    with the requirements of the Americans with Disabilities Act. The presence of architectural and
    communications barriers that are structural in nature that would restrict access by disabled
    individuals may adversely affect the property’s value, marketability, or utility.
14. Any proposed improvements are assumed to be completed in a good workmanlike manner in
    accordance with the submitted plans and specifications.
15. The distribution, if any, of the total valuation in this report between land and improvements
    applies only under the stated program of utilization. The separate allocations of land and
    buildings must not be used in conjunction with any other appraisal and are invalid if so used.
16. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may
    not be used for any purpose by any person other than the party to whom it is addressed without
    the written consent of the appraisers, and in any event only with proper written qualification and
    only in its entirety.
17. Neither all nor any part of the contents of this report (especially any conclusions as to value, the
    identity of the appraisers, or the firm with which the appraisers are connected) shall be
    disseminated to the public through advertising, public relations, news sales, or other media
    without prior written consent and approval of the appraisers.




                                                   85
       POLICY STATEMENT OF THE APPRAISAL INSTITUTE


1.   It is improper to base a conclusion or opinion of value upon the premise that the
     racial, ethnic or religious homogeneity of the inhabitants of an area or of a property is
     necessary for maximum value.

2.   Racial, religious, and ethnic factors are deemed unreliable predictors of value trends
     or price variance.

3.   It is improper to base a conclusion or opinion of value or a conclusion with respect to
     neighborhood trends upon stereotyped or biased presumptions relating to the effective
     age or remaining life of the property being appraised or the life expectancy of the
     neighborhood in which it is located.




                                            86
                        QUALIFICATIONS AS AN APPRAISER
                                 RODGER K. LOWERY, MAI

EDUCATION

Bachelor of Science Degree - 1991
Florida State University
Tallahassee, Florida

Core Courses - Real Estate Major

Real Estate Feasibility Analysis, Real Estate Market Analysis, Real Estate Finance, Real Estate
Appraisal, Legal Environment of Real Estate, Commercial Bank Administration, Urban
Planning and Growth Management, Comprehensive Planning

Appraisal Institute Courses:

110: Appraisal Principles - 1994
120: Appraisal Procedures - 1994
310: Basic Income Capitalization - 1993
410/420: Standards of Professional Practice – 1992
430: Standards of Professional Practice Part C - 1999
510: Advanced Income Capitalization – 1993
520: Highest and Best Use and Market Analysis - 2000
530: Advanced Sales Comparison and Cost Approaches - 1998
540: Report Writing and Valuation Analysis - 1994
550: Advanced Applications - 1994

Appraisal Institute Seminars

                 Reassigning, Readdressing and Reappraising – 2005, Florida Core Law Update –
                 2008, National USPAP Update Course – 2008, Supervisor/Trainee Roles and
                 Relationships – 2008, Data Confirmation and Verification Methods – 2001, Scope
                 of Work and Business Practices and Ethics – 2005, Effective Report Writing –
                 2003, Intro. To GIS Appl. For Real Estate – 2006, Analyzing Operating Expenses
                 - 2006

APPRAISAL EXPERIENCE

5/97 – Present          Residential and Commercial Real Estate Appraiser, Fruitticher-Lowery
                        Appraisal Group (Owner/Appraiser).           Performing commercial and
                        residential real estate appraisals, reviews and consultations. Specializing
                        in the Northwest Florida and South Alabama markets.


                                                87
APPRAISAL EXPERIENCE (Cont'd.)


6/95 - 4/97          Residential and Commercial Real Estate Appraiser, RKL Appraisal
                     Services, Inc. (President). Performing commercial and residential real
                     estate appraisals, reviews and consultations.    Specializing in the
                     Northwest Florida and South Alabama markets.

6/95 - 9/96          Commercial Real Estate Appraiser, Laureate Realty Services, Inc.
                     (Formerly Camp and Company), Mobile, Alabama. Income analysis and
                     appraisal of neighborhood, community and regional shopping centers,
                     malls, multi-tenant office buildings, apartments and hotels. Properties
                     located in the southeast region, primarily Florida, Alabama, Mississippi
                     and Louisiana.

9/92 - 5/95          Residential and Commercial Real Estate Appraiser, M. Eugene Presley
                     and Associates.        Commercial and residential fee appraiser.
                     Responsibilities include the valuation of commercial properties, vacant
                     commercial land, large acreage tracts, and environmentally sensitive
                     properties. Numerous eminent domain appraisals, specifically including
                     the Burgess Road and Airport Boulevard DOT projects. Eminent domain
                     appraisals performed for the property owners.

12/91 - 9/92         Commercial Real Estate Appraiser, Marshall Appraisals, Inc. Associate
                     appraiser. Responsibilities include the valuation of office buildings,
                     banks, hotels, and other large commercial properties throughout Florida.

4/91 - 12/91         Research Assistant, State of Florida, Office of the Auditor General,
                     Division of Real Estate. Responsibilities include the review of State of
                     Florida county appraisal files audited by the Department of Revenue, as
                     well as the review and confirmation of data within privately contracted
                     appraisals performed for the Department of Natural Resources.


Expert Witness Experience

       First Circuit Court, Santa Rosa County
       Escambia County Circuit Court
       Santa Rosa County Commission
       Okaloosa County Commission




                                                88
PROFESSIONAL LICENSES/AFFILIATIONS

Member, Appraisal Institute, Member #11029
State-Certified General Real Estate Appraiser, State of Florida, License #RZ 0001922
State-Certified General Real Property Appraiser, State of Alabama, License #G00445
Real Estate Broker, State of Florida, License # BK0573361; FLAG Realty, Inc.
Real Estate Broker, State of Alabama, License #065378 (Reciprocal Brokers License)
Developer – FLAG Leasing, Inc. and FLAG Realty, Inc.
Member - Pensacola Association of Realtors, Florida Association of Realtors and the National
Association of Realtors
Past Member - Home Builders Association of West Florida
Past Member – City of Pensacola Zoning Board of Adjustments
Member – Leadership Escambia And Pensacola (LEAP) Class of 2001
Past Member – American Diabetes Association of Northwest Florida, Board of Directors
Past Member – Fiesta of Five Flags, Board of Governors
Past Member – WSRE Planned Giving Council, Board of Directors
Past Member - Pensacola Chamber of Commerce Relocation Committee


CLIENTS

The Guardian Life Insurance Company        Nationwide Insurance Company
Allmerica Financial                        Business Men’s Assurance Company
Column Financial                           Sun Life Assurance Company
Lehman Brothers                            Laureate Realty Services
Saad Development Group                     Wade Ward Properties
Jim Brown, Inc.                            Goleta National Bank
Peoples First Community Bank               Merrill Land Company
First National Bank of Florida             MembersFirst Credit Union of Florida
First American Bank of Pensacola           Compass Bank
Southtrust Bank                            SunTrust Bank
Regions Bank                               Whitney Bank
AmSouth Bank of Florida                    AmSouth Bank of Alabama
Pen Air Federal Credit Union               Peoples First Community Bank




                                              89
ADDENDUM




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DOCUMENT INFO
Description: Real Estate Navarre Florida document sample