Jungle Island Hotel Market Rent Study Rev1

APPRAISAL REPORT (MARKET RENT STUDY)
Jungle Island Hotel

1111 Parrot Jungle Trail
Miami, Miami-Dade County, FL 33132
PREPARED FOR
Ms Jacqueline Lorenzo, Property Manager
Representative
Property Management Representative
City of Miami-Department of Real Estate & Asset
Management
444 SW 2nd Avenue, 3rd Floor
Miami, Florida 33130
PREPARED BY
Joseph J. Blake and Associates, Inc.
4000 Ponce De Leon Boulevard
Suite 410
Coral Gables, FL 33146
4000 Ponce De Leon Boulevard, Suite 410 | Coral Gables, FL 33146 | Phone: (305) 448-1663 | Fax: (305) 448-7077 | www.josephjblake.com
July 10, 2017
Ms Jacqueline Lorenzo, Property Manager Representative

Property Management Representative
City of Miami-Department of Real Estate & Asset Management
444 SW 2nd Avenue, 3rd Floor
Miami, Florida 33130
Re: Market Rent Study Jungle Island Hotel

Miami, FL 33132
Dear Ms Lorenzo:
As requested, we have prepared an appraisal of the property referenced above presented in the attached
Appraisal Report (Market Rent Study. The purpose of the market rent study is to develop an opinion of the
'as is' fair market rent and terms of the unencumbered fee simple interest for a proposed 300 room hotel
with 10,000 SF of retail space and 30,000 SF of meeting space, to be placed in the southern portion of
Jungle Island, to be paid to the City by Jungle Island, as of June 19, 2017.
Briefly described, the site is estimated to consist of approximately 104,093 SF or 2.39± acres of uplands
located in the southern portion of the Jungle Island site on Watson Island, in Miami, Miami-Dade County,
Florida. The site is owned by the City of Miami. According to the developer, the site is proposed for a 300
room hotel, plus 10,000 SF of retail space and 30,000 SF of meeting/banquet space. There are no plans or
square footage estimates for the hotel presented by the developer. The appraiser estimated a total gross
building area including the hotel, retail, meeting space and parking to be 346,000 SF. The subject is zoned
CS Civic Space, under Zoning Ordinance Miami 21, per the City of Miami.
The report contains 84 pages plus related exhibits. The appraisal and the attached Appraisal Report (Market
Study) have been prepared in conformity with and are subject to the Code of Professional Ethics and
Standards of Professional Appraisal Practice of the Appraisal Institute and the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation (USPAP).
After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value,
we are of the opinion that the 'as is' fair market rent and terms of the unencumbered fee simple interest
for a proposed 300 room hotel with 10,000 SF of retail space and 30,000 SF of meeting space, to be placed
in the southern portion of Jungle Island, to be paid to the City by Jungle Island, as of June 19, 2017, is:
Rent $1,390,000
1% over a $25,550,000 Breakeven
Percentage Rent Point
Term 99 Years
Escalations CPI Every 5 Years
ReEvaluation Every 5 Years
Corporate Headquarters: 425 Broad Hollow Road, Suite 429 | Melville, New York 11747 | (516) 827-0222
Regional Offices: Atlanta | Boston | Chicago | Dallas | Los Angeles | Miami | New York City | San Francisco | Washington D.C.
Blake & Sanyu Alliance: Tokyo | Osaka | Nagoya | Sendai
July 10, 2017
Ms Jacqueline Lorenzo, Property Manager Representative
Page 2 of 2
The percentage rent is based on gross revenue and assumes a breakpoint of $25,550,000 and is in addition
to the stated base rent. The base rent conclusions assume increases at CPI every 5 years and also assume
the tenant (Jungle Island) would be responsible for the payment of all ad valorem and non ad valorem
property taxes and assessments levied on the property. No consideration is given for the construction
period and any rent abatement during the construction period; not the lease-up or future stabilization of
the income streams from the various components. We were not provided with building or site plans. We
make the assumption that all construction will be of similar quality to the comparables noted in this report
The use of the aforementioned Extraordinary Assumptions might have affected the assignment results. The
use of the aforementioned Extraordinary Assumptions might have affected the assignment results.
This appraisal is not based on any hypothetical conditions.
The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly
priced and actively marketed.
The attached Appraisal Report summarizes the documentation and analysis in support of our conclusions. If
you have any questions, please contact the undersigned. We thank you for retaining the services of our
firm.
Respectfully submitted,
JOSEPH J. BLAKE AND ASSOCIATES, INC.
Richard Klein, MAI, MRICS Ted Allen, MAI, MRICS

Partner Managing Partner
Florida-State-Certified General Real Estate Appraiser Florida-State-Certified General Real Estate Appraiser
No. RZ 724 No. RZ426
Expires: November 30, 2018 Expires: November 30, 2018
rklein@josephjblake.com
Jungle Island Hotel
17-216-02 TABLE OF CONTENTS
TITLE PAGE
TRANSMITTAL LETTER
EXECUTIVE SUMMARY ........................................................................................................................................1

PHOTOGRAPHS OF THE SUBJECT........................................................................................................................3
CERTIFICATION ...................................................................................................................................................5
GENERAL ASSUMPTIONS & LIMITING CONDITIONS ...........................................................................................7
PURPOSE OF THE APPRAISAL..............................................................................................................................9
INTENDED USER AND USE OF THE APPRAISAL ...................................................................................................9
PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT ...............................................................9
EXPOSURE TIME..................................................................................................................................................9
SCOPE OF THE APPRAISAL ................................................................................................................................10
IDENTIFICATION OF THE PROPERTY .................................................................................................................10
CURRENT USE OF THE SUBJECT ........................................................................................................................11
HISTORY OF THE SUBJECT.................................................................................................................................11
AREA ANALYSIS .................................................................................................................................................12
NEIGHBORHOOD ANALYSIS ..............................................................................................................................17
NATIONAL MARKET ANALYSIS ..........................................................................................................................23
MIAMI-DADE COUNTY HOTEL MARKET ANALYSIS ...........................................................................................35
DESCRIPTION OF THE SITE ................................................................................................................................59
ZONING .............................................................................................................................................................62
TAXES ................................................................................................................................................................63
ANALYSIS OF DATA AND CONCLUSIONS...........................................................................................................64
LAND RENT METHOD 1 .....................................................................................................................................65
LAND VALUE .....................................................................................................................................................69
LAND RENT METHOD 2 .....................................................................................................................................81
RECONCILIATION AND FINAL VALUE ................................................................................................................83
ADDENDA
Glossary of Terms
Qualifications of the Appraisers
Jungle Island Hotel
17-216-02 EXECUTIVE SUMMARY
PROPERTY SUMMARY
PROPERTY APPRAISED Jungle Island Hotel
PROPERTY ADDRESS 1111 Parrot Jungle Trail
Miami, FL 33132
PARCEL/TAX ID 01-3231-000-0014
PROPERTY LOCATION The subject is located on Watson Island on the MacArthur Causeway, just
east of Biscayne Boulevard.
PURPOSE OF THE The purpose of the market rent study is to develop an opinion of the 'as is'
APPRAISAL fair market rent and terms of the unencumbered fee simple interest for a
proposed 300 room hotel with 10,000 SF of retail space and 30,000 SF of
meeting space, to be placed in the southern portion of Jungle Island, to be
paid to the City by Jungle Island, as of June 19, 2017.
PERTINENT DATES
DATE OF INSPECTION June 19, 2017
DATE OF REPORT July 10, 2017
DATE OF “AS IS” VALUE June 19, 2017
HIGHEST AND BEST USE
AS IMPROVED The redevelopment of the existing improvements with a more intensive use
AS IF VACANT To maximize the utility of the site in relation to the zoning
PROPERTY DATA
IMPROVEMENT DATA Briefly described, the site is estimated to consist of approximately 104,093
SF or 2.39± acres of uplands located in the southern portion of the Jungle
Island site on Watson Island, in Miami, Miami-Dade County, Florida. The site
is owned by the City of Miami. According to the developer, the site is
proposed for a 300 room hotel, plus 10,000 SF of retail space and 30,000 SF
of meeting/banquet space. There are no plans or square footage estimates
for the hotel presented by the developer. The appraiser estimated a total
gross building area including the hotel, retail, meeting space and parking to
be 346,000 SF. The subject is zoned CS Civic Space, under Zoning Ordinance
Miami 21, per the City of Miami.
Subject Building SF # of Rooms SF/Room
Hotel 195,000 300 650
Hotel Ancillary 58,500 30%
Retail 10,000
Meeting Space 30,000
Garage 52,500 150 350
Totals 346,000 1,153
SITE DESCRIPTION The subject's site is estimated to contain approximately 104,093 SF or
approximately 2.39 acres of land.
CURRENT USE As of the date of the value opinion(s), the subject was being used as parking
garage. For the purposes of this report, the subject is valued as hotel - full
service.
ZONING "CS," Civic Space under the jurisdiction of the City of Miami.
CENSUS TRACT 12-086-9810.00
1
Jungle Island Hotel
17-216-02 EXECUTIVE SUMMARY
RENTAL VALUE SUMMARY
Hotel Per Room Total

Rooms 1 300
Room Nights 365 109,500
ADR $175.00 $175.00
Occupancy 80.00% 80.00%
RevPAR $140.00 $140.00
Total Room Revenue $51,100 $15,330,000
Ancillary Revenue 40% $10,220,000
Total Revenue $25,550,000
Ground Rent Percent 5.50%
Ground Rent $1,405,250
FLR $/FLR Land Value

Total Building Area 346,000 $80.00 $27,680,000
Capitalization Rate 5.00%
Land Rent $1,384,000
Rent/FLR $4.00
Site Size 104,093
Rent/SF Land $13.62
CONCLUSIONS
Rent $1,390,000
Term 99 Years
2
Jungle Island Hotel
17-216-02 PHOTOGRAPHS OF THE SUBJECT
Front of Jungle Island View Along Jungle Island Trail
Entrance/Exit along Jungle Island Trail Entrance to Jungle Island
East Side of Subject Parking Garage
3
Jungle Island Hotel
17-216-02 PHOTOGRAPHS OF THE SUBJECT
Parking Garage Rear of Jungle Island
Parking Garage Parking Garage
4
Jungle Island Hotel
17-216-02 CERTIFICATION
We, the undersigned, certify that, to the best of our knowledge and belief:
• Richard Klein, MAI, MRICS, has made a personal inspection of the property that is the subject of this
report. Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of
this report.
• As of the date of this report, Richard Klein, MAI, MRICS has completed the continuing education
program for Designated Members of the Appraisal Institute. As of the date of this report, Ted Allen,
MAI, MRICS has completed the continuing education program for Designated Members of the
Appraisal Institute.
• The statements of fact contained in this report are true and correct.
• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions,
and conclusions.
• We have no present or prospective interest in the property that is the subject of this report and no
personal interest with respect to the parties involved.
• We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
• Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
• Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
• The Appraisal Report is not based on a requested minimum valuation, a specific valuation, or the
approval of a loan. In addition, our engagement was not contingent upon the appraisal producing a
specific value and neither engagement, nor employment, nor compensation, is based upon
approval of any related loan application.
• Our analyses, opinions and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
• The reported analyses, opinions and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of
Professional Appraisal Practice of the Appraisal Institute.
• No one provided significant real property appraisal assistance to the persons signing this certificate.
• The use of this report is subject to the requirements of the State of Florida relating to review by the
Real Estate Appraisal Subcommittee of the Florida Real Estate Commission.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
• The appraisers have performed no services, as an appraiser or in any other capacity, regarding the
property that is the subject of this report within the three-year period immediately preceding the
date of acceptance of this assignment.
5
Jungle Island Hotel
17-216-02 CERTIFICATION
The opinion(s) of value are based on exposure times of 6 to 12 months, assuming the property was properly
priced and actively marketed.
Respectfully submitted,
JOSEPH J. BLAKE AND ASSOCIATES, INC.
Richard Klein, MAI, MRICS Ted Allen, MAI, MRICS

Partner Managing Partner
Florida-State-Certified General Real Estate Appraiser Florida-State-Certified General Real Estate Appraiser
No. RZ 724 No. RZ426
Expires: November 30, 2018 Expires: November 30, 2018
rklein@josephjblake.com
6
Jungle Island Hotel
17-216-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS
This Appraisal Report is subject to underlying assumptions and limiting conditions qualifying the
information contained in the Report as follows:
The valuation opinions(s) apply only to the property specifically identified and described in the ensuing
Report.
Information and data contained in the report, although obtained from public record and other reliable
sources and, where possible, carefully checked by us, is accepted as satisfactory evidence upon which rests
the final opinion(s) of property value.
We have made no legal survey, nor have we commissioned one to be prepared, and therefore, reference to
a sketch, plat, diagram or previous survey appearing in the report is only for the purpose of assisting the
reader to visualize the property.
It is assumed that all information known to the client and/or the property contact and relative to the
valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens or
other encumbrances affecting the use of the property, unless otherwise noted in this report.
Ownership and management are assumed to be competent and in responsible hands.
No responsibility beyond reasonableness is assumed for matters of a legal nature, whether existing or
pending.
We, by reason of this appraisal, shall not be required to give testimony as expert witness in any legal
hearing or before any Court of Law unless justly and fairly compensated for such services.
By reason of the Purpose of the Appraisal and the Intended User and Use of the Report herein set forth, the
value opinion(s) reported are only applicable to the Property Rights Appraised, and the Appraisal Report
should not be used for any other purpose.
Disclosure of the contents of this Appraisal Report is governed by the By-Laws and Regulations of the
Appraisal Institute.
Neither all nor any part of the contents of this report (especially any opinions as to value, our identity, or
the firm with which we are connected, or any reference to the Appraisal Institute or to the MAI
Designation) shall be reproduced for dissemination to the public through advertising media, public relations
media, news media, sales media or any other public means of communication without our prior consent
and written approval.
We have not been furnished with soil or subsoil tests, unless otherwise noted in this report. In the absence
of soil boring tests, it is assumed that there are no unusual subsoil conditions or, if any do exist, they can be
or have been corrected at a reasonable cost through the use of modern construction techniques.
This appraisal is based on the conditions of local and national economies, purchasing power of money, and
financing rates prevailing at the effective date(s) of value.
We are not engineers and any references to physical property characteristics in terms of quality, condition,
cost, suitability, soil conditions, flood risk, obsolescence, etc., are strictly related to their economic impact
on the property. No liability is assumed for any engineering-related issues.
Unless otherwise stated in this report, we did not observe the existence of hazardous materials, which may
or may not be present on or in the property. The presence of substances such as asbestos, urea-
formaldehyde foam insulation, or other potentially hazardous materials, may affect the value of the
property. The value opinion is predicated on the assumption that there is no such material on or in the
property that would cause a loss in value or extend their marketing time. No responsibility is assumed for
any such conditions, or for the expertise or engineering knowledge required to discover them. The client is
urged to retain an expert in this field, if desired.
7
Jungle Island Hotel
17-216-02 GENERAL ASSUMPTIONS & LIMITING CONDITIONS
Toxic and hazardous substances, if present within a facility, can introduce an actual or potential liability that
may adversely affect marketability and value. Such effects may be in the form of immediate clean-up
expense or future liability of clean-up costs (stigma). In the development of our opinion(s) of value, no
consideration was given to such liabilities or their impact on value. The client and all intended users release
Joseph J. Blake and Associates, Inc., from any and all liability related in any way to environmental matters.
Possession of this report or a copy thereof does not imply right of publication, nor use for any purpose by
any other than the client to whom it is addressed, without our written consent.
Cash flow projections are forecasts of estimated future operating characteristics and are based on the
information and assumptions contained within the Appraisal Report. The achievement of the financial
projections will be affected by fluctuating economic conditions and is dependent upon other future
occurrences that cannot be assured. Actual results may well vary from the projections contained herein.
We do not warrant that these forecasts will occur. Projections may be affected by circumstances beyond
our current realm of knowledge or control.
The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific
compliance survey and analysis of this property to determine whether it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a
detailed analysis of the requirements for the ADA, could reveal that the property is not in compliance with
one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of
the property. Unless otherwise stated in this report, we have no direct evidence relating to this issue and
we did not consider possible non-compliance with the requirements of the ADA in forming the opinion of
the value of the property.
EXTRAORDINARY ASSUMPTIONS
HYPOTHETICAL CONDITIONS
8
Jungle Island Hotel
17-216-02 INTRODUCTION
PURPOSE OF THE APPRAISAL

The purpose of the market rent study is to develop an opinion of the 'as is' fair market rent and terms of
the unencumbered fee simple interest for a proposed 300 room hotel with 10,000 SF of retail space and
30,000 SF of meeting space, to be placed in the southern portion of Jungle Island, to be paid to the City by
Jungle Island, as of June 19, 2017.
INTENDED USER AND USE OF THE APPRAISAL

The intended user of this appraisal is the client, City of Miami-Department of Real Estate & Asset
Management. We assume any affiliates, successors and assigns noted herein have the same intended use,
knowledge and understanding as the original named client. The intended use of this appraisal is to assist
the client with asset management purposes. This appraisal is not intended to be used by any other parties,
for any other reasons, other than those which are stated here. Non-identified parties are not intended
users of this report.
PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT

This Appraisal Report, with its analyses, conclusions and final opinions of market value, is specifically
applicable to the following pertinent dates:
DATE OF INSPECTION June 19, 2017
DATE OF REPORT July 10, 2017
DATE OF “AS IS” VALUE June 19, 2017
DEFINITION OF MARKET VALUE

Market value means the most probable price which a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions
whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own best
interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable
thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.'
Source: 12 C.F.R. § 34.42, 225.62, 323.2, 564.2, 722.2
EXPOSURE TIME
To form an opinion of exposure time, we considered the exposure times of properties similar to the subject
in the same or similar sub-markets that have recently sold and/or conversations with local market
participants. Based on our research, we are of the opinion that 6 to 12 months is a reasonable exposure
time, assuming that the property was reasonably priced and actively marketed.
PROPERTY RIGHTS APPRAISED

The subject is appraised on the basis of a fee simple estate.
9
Jungle Island Hotel
SCOPE OF THE APPRAISAL

The scope of an appraisal assignment is relative to the intended use of the market rent study. The following
outlines the extent of property inspection, market data collection, verification and analysis performed for
this assignment.
Inspection
Richard Klein, MAI, MRICS, has made a personal inspection of the property that is the subject of this report.
Ted Allen, MAI, MRICS, has made a personal inspection of the property that is the subject of this report.
This inspection included the interior and exterior of the subject. The inspection was visual in nature, to
assess the economic condition of the property, in order to effectively compare it to other properties in the
market. We are not engineers, and we did not assess the property from the standpoint of its structural
integrity, or to determine whether any latent defects (water leaks, plumbing or electrical problems, etc.)
were present.
Subject Physical and Economic Characteristics
The types of information obtained and the sources providing such information are detailed in the following
table.
Information Sources
Information Type Received? Source Notes
Total Gross Building Area Yes Owner
Most Recent Deed Yes County
Purchase and Sale Agreement Yes Owner
Legal Description Yes County
Zoning Information
Type of Analysis Applied

The client has requested a market study be performed on the property to determine the market rent as
defined in the purpose of the appraisal. As such, the Cost, the Sales Comparison and Income Capitalization
Approaches to value were not performed as a market value for the subject was not requested. It is noted
that the study is to result in specific conclusions regarding the market rent under the proposed
development plan. Within the determination of the market rent, we use aspects of the Sales Comparison
Approach and the Income Capitalization Approach.
Extent of Data Research
General economic data and market data were reviewed. Comparable rental information was compiled from
a survey of similar facilities to the subject as well as from published sources including Loopnet, CoStar
Comps, and public records. These data are a result of research specific to the Miami-Dade County market
and pertinent to the subject. The data were verified by brokers, managers, government officials and owners
or other sources regarded as knowledgeable and reliable. Market data reports prepared by different
entities were utilized, which summarize general market information.
Information specific to the subject was provided by the client, the City of Miami, and is assumed to be
correct. The information appeared reliable, based on an inspection of the property on June 19, 2017. Other
information, such as zoning and tax records, was obtained from governmental sources.
IDENTIFICATION OF THE PROPERTY

The property is commonly known as:
Jungle Island Hotel
Miami, FL 33132
10
Jungle Island Hotel
The property is also identified by the Miami-Dade County Tax Assessor's Office as tax parcel number(s) 01-
3231-000-0014.
The legal description of the property is assumed to be correct. We have not commissioned a survey, nor
have we had one verified by legal counsel. Therefore, we suggest a title company, legal counsel, or other
qualified expert verify this legal description before it is used for any purpose.
CURRENT USE OF THE SUBJECT
As of the date of the value opinion(s), the subject was being used as parking garage. For the purposes of
this report, the subject is valued as hotel - full service.
HISTORY OF THE SUBJECT
The subject is currently owned by City of Miami.
The subject site is located on Watson Island, which is located within Biscayne Bay, mid-way between
Downtown Miami and Miami Beach. The island is accessed by the MacArthur Causeway (State Road 41),
which travels from Miami to Miami Beach. The roadway approximately bisects the island, with
undeveloped land located on the northeast and southwest of the roadway. The site is owned by the city of
Miami, which has owned the site since Watson Island was deeded to the City of Miami by the State of
Florida in 1949.
Approximately 12 years ago, the City of Miami determined Watson Island was underutilized, and set out to
develop the island.
Parrott Jungle was originally located in Pinecrest in Southwest Miami-Dade County since 1936. From 1995
to 2000 Parrott Jungle went through the process to move to Watson Island by securing a $25,000,00 loan
from the US Department of Housing and Urban Development. Construction of the current facility began in
2000.
Parrott Jungle opened in 2003. IN 2007 the name was changed to Jungle Island with plans to make changes
to the park.
In 2012 the park sought to expand on an adjacent 13 acre parcel, however, this was never approved.
In 2016 the Aventura based company ESJ Capital Partners takes over a $10.75 million mortgage from HSBC.
In 2017 ESJ Capital Partners takes over ownership of the park in a $60 million deal, $15 million in cash. The
lease for the property was transferred to ESJ and the firm assumes about $45 million in debt.
Plans were announced that a renovation of the park was proposed. Plans are to add zip lines and a two acre
man made lagoon.
ESJ is now exploring the possibility of developing a 300 room hotel with 10,000 SF of retail and 30,000 SF of
meeting/banquet space. This is proposed to be located where the current parking garage is at the southern
portion of the property.
We are not aware of any listings, real property transactions, or ownership transfers pertaining to the
subject in the three years prior to the date of the "as is" value opinion, other than that which is reported
here.
11
Jungle Island Hotel
17-216-02 AREA ANALYSIS
AREA MAP
INTRODUCTION
The Miami-Fort Lauderdale-West Palm Beach Metropolitan Statistical Area (MSA) encompasses Broward,
Miami-Dade, Monroe and Palm Beach counties. The subject is located in Miami-Dade County, Florida.
Miami-Dade County is located in the southeast portion of Florida's east coast and is the southernmost
county situated on Florida's mainland. Miami is the county seat of Miami-Dade County, which includes
many other incorporated areas such as Miami Beach, Key Biscayne, Coral Gables, South Miami, Pinecrest,
Aventura, Hialeah and Homestead.
Miami-Dade County boasts an excellent geographic location, allowing it to serve as a gateway to the
Caribbean and Latin America. A tourist destination in itself, it is also within a day's drive to some of Florida's
major tourist destination cities.
12
Jungle Island Hotel
Development and growth in Miami-Dade County are often attributed to the climate, which draws the
northern United States tourist trade during the winter months. Miami-Dade County is a recognized banking
and finance center, with over 120 financial institutions featuring a growing community of international
banks serving Latin America. This international activity has emerged due to the more than 150 multi-
national firms that have established their offices in Miami-Dade in order to direct their Latin American,
Caribbean and in some cases, worldwide operations.
The growth in business relations between Latin America and Miami-Dade County has been accompanied by
ongoing growth in tourism from Latin America. Latin American tourists who enjoy shopping in the United
States represent a major demand segment in Miami-Dade County's lodging and retail markets.
The concurrency provision in the 1985 Growth Management Act requires that all water, sewer, roads,
schools, parks and storm water facilities necessary to support existing improvements be in place before
new construction is permitted. Thus, if a location is deficient in one or more categories, the affected
infrastructure component must be expanded to support any new construction. A developer may choose to
provide the various facilities and/or services necessary to support their project. However, in some cases the
expense associated with offsite improvements may render a project economically unfeasible.
Transportation
Miami International Airport is the largest gateway between the United States and Latin America, and is one
of the largest airline hubs in the United States, owing to its proximity to tourist attractions, local economic
growth, large local Latin American and European populations, and strategic location to handle connecting
traffic between North America, Latin America, and Europe.
The Port of Miami is a leader in the maritime industry and home to nearly a dozen of the world’s most
distinguished cruise lines. The port offers more cargo sailings to more destinations in the Western
hemisphere than any other port, and offers access to virtually every port in the world.
Metrorail is a 21-mile rapid transit system on an elevated railway providing access to Downtown Miami
from portions of both south and north Miami-Dade County. It connects with Metromover, a 30-station,
five-mile system, that loops through the center of Downtown Miami's CBD. Metrobus provides the feeder
system to Metrorail and bus service to all other parts of Miami-Dade County.
A network of 5,640 miles of roadway serves Miami-Dade County, of which I-95, I-75, Florida’s Turnpike, and
the Palmetto Expressway (SR-826) are the most utilized north/south highways, while SR-112, SR-826 and
SR-836 are the most utilized east/west expressways. US-1 and SR-A1A are also components of this network.
Other primary thoroughfares include I-395 (east/west), I-195 (east/west), SR-9, SR-94, SR-874, US-27, US-41
and US-441.
Education
Miami-Dade County is served by more than 900 public and private secondary and elementary schools.
Seven colleges and universities are located in the county.
Miami-Dade College currently offers more than 175 programs and 1,500 courses, with enrollment of over
160,000 students. The University of Miami in Coral Gables has more than 15,000 degree-seeking students
and offers 150 undergraduate and 192 graduate degree programs. Florida International University, with
two campuses, 36,000 students and more than 800 full-time faculty, received the nation’s fifth largest
philanthropic gift in the history of public higher education—the Wolfsonian Museum on Miami Beach, with
70,000 artifacts worth an estimated $75 million. It was donated to the college in 1997 and features a wide
array of objects ranging from high art to pop culture. Four-year degree programs are also available at Barry
University, St. Thomas University, Florida Memorial College and Miami Christian College.
13
Jungle Island Hotel
Tourism/Recreation
Known mainly for its trendy nightclubs and oceanfront resorts, Miami-Dade County is also a recognized
center for the fine arts and the performing arts, offering an array of enriching cultural activities. These
include the Miami Art Museum, Museum of Contemporary Art, Miami Art Central, Wolfsonian-FIU, and the
Lowe Art Museum, which are filled with collections and exhibitions from all parts of the world. Broadway
plays, the Repertory Theater, the Philharmonic, the Opera Guild, and a large number of historical
attractions and exhibits are also favorites.
Every year, numerous art festivals make their homes in Miami, including the world-renowned Coconut
Grove Arts Festival and Art Basel.
The Miami Beach Symphony Orchestra and the Greater Miami Opera Association both offer top-notch
performances throughout the year. In addition, the Coconut Grove Playhouse, the Actor’s Playhouse and
the Gusman Center features a variety of plays and dance pieces from local, regional and national troupes.
Medical
According to the Greater Miami Chamber of Commerce, Miami-Dade County boasts two major medical
networks: the Jackson Health System and Baptist Health South Florida. Jackson Health System, the largest
group of medical services in the Southeastern United States, is assembled in a medical complex just west of
Downtown Miami. At its hub is the University of Miami School of Medicine/Jackson Memorial Medical
Center, ranked in the top 10 of more than 8,000 hospitals in the nation and situated in the city limits of
Miami. In Miami-Dade County alone, there are more than 29,000 health care professionals and 28
hospitals. The extensive network of community hospitals includes: Mount Sinai Medical Center, Columbia
Cedars Medical Center, Hialeah Hospital, Baptist Hospital, Jackson Memorial Hospital, Mercy Hospital and
Miami Children's Hospital.
AREA DEMOGRAPHIC AND INCOME DATA

The following data was obtained from MOODY’S ANALYTICS Précis® U.S. Metro South, April 2016. The full
report is located in the Addenda, and contains additional information about the social, economic,
governmental and environmental forces that influence value.
Moody's Source for Charts
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Gross metro product (C$B) 104.1 104.4 106.3 108.4 111.1 113.8 115.9 121.3 127.0 132.3 136.8 141.4
% change (0.53%) 0.24% 1.85% 1.96% 2.47% 2.42% 1.91% 4.63% 4.71% 4.14% 3.43% 3.39%
Total employment (ths) 985.1 1,007.3 1,031.3 1,056.7 1,089.4 1,123.4 1,142.2 1,166.4 1,189.8 1,212.8 1,228.8 1,235.3
% change (0.35%) 2.25% 2.38% 2.46% 3.10% 3.12% 1.68% 2.12% 2.01% 1.93% 1.32% 0.53%
Unemployment rate (%) 11.10% 9.40% 8.35% 7.60% 6.94% 6.14% 5.31% 4.55% 3.87% 3.46% 3.36% 3.71%
Personal income growth (%) 8.88% 4.59% 3.17% (0.42%) 6.78% 6.22% 4.87% 5.96% 7.30% 7.15% 5.99% 5.39%
Median household income ($ ths) 42.0 41.7 42.0 42.4 42.9 43.8 45.3 47.0 49.2 51.3 53.0 54.6
Population (ths) 2,508.2 2,580.1 2,611.2 2,641.9 2,668.9 2,693.1 2,728.7 2,767.0 2,806.8 2,847.1 2,887.4 2,926.5
% change 1.80% 2.87% 1.21% 1.18% 1.02% 0.91% 1.32% 1.41% 1.44% 1.43% 1.42% 1.35%
Single-family permits 941.0 962.0 1,819.0 2,266.0 2,077.0 2,800.0 3,344.6 5,557.1 7,033.1 7,630.5 7,182.7 6,978.3
Multifamily permits 2,262.0 1,656.0 3,250.0 8,050.0 5,654.0 9,817.0 5,671.5 7,408.9 7,924.9 7,079.7 6,000.2 6,330.0
FHFA house price (1995Q1=100) $195.70 $182.97 $185.95 $207.70 $233.55 $257.42 $282.04 $296.31 $300.32 $292.65 $284.74 $281.83
Source: MOODY’S ANALYTICS Précis® U.S. Metro South, April 2016
14
Jungle Island Hotel
% Change in Employment
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
(0.50%)
(1.00%)
Unemployment Rate Personal Income Growth

12.00% 10.00%
10.00% 8.00%
8.00% 6.00%
6.00% 4.00%
4.00% 2.00%
2.00%
(2.00%)
15
Jungle Island Hotel
CONCLUSION
An analysis of South Florida and more specifically, Miami-Dade County, demonstrates that the area has
historically been on a path of growth. Previous population growth is primarily due to in-migration, with the
majority of the migrants coming from within the state, as well as New York, Georgia and international
sources.
With the recession receding, the values of the County’s office, industrial, commercial and residential
properties have recovered substantially, with decreased vacancies appearing in office complexes, industrial
neighborhoods, and shopping centers, and homes increasing in value.
Despite the effects of the recent recession, many of the factors that led to Miami-Dade County’s historical
success remain in place. Therefore, the county will likely continue to grow.
16
Jungle Island Hotel
17-216-02 NEIGHBORHOOD ANALYSIS
NEIGHBORHOOD MAP
INTRODUCTION
A property is an integral part of its surroundings and must not be treated as an entity separate and apart
from its surroundings. The value of a property is not found exclusively in its physical characteristics;
physical, economic, political and sociological forces in the area interact to give value to a property. In order
to determine the degree of influence extended by these forces on a property, their past and probable
future trends are analyzed. Therefore, in order to form an opinion of the value of a property, an analysis is
made of the area in which the property under study is found. This area is referred to as a neighborhood.
A neighborhood can be a portion of a city, a community or an entire town. It is usually an area which
exhibits a fairly high degree of homogeneity as to use, tenancy and certain other characteristics.
Homogeneity is a state of uniform structure or composition throughout. Therefore, in real estate
terminology, a homogeneous neighborhood is one in which the property types and uses are similar. A
neighborhood is more or less a unified area with somewhat definite boundaries. As a neighborhood's
boundaries serve to limit the physical area that exerts germane influences on a property's value, the
boundaries may indeed run concurrent with variations in prevailing land uses or physical characteristics.
LOCATION
The subject is located on Watson Island on the MacArthur Causeway, just east of Biscayne Boulevard.
17
Jungle Island Hotel
Watson Island serves as the only significant land mass between the City of Miami and Miami Beach. The
MacArthur Causeway traverses Watson Island, and two new bridges connect the island to the mainland.
The island offers excellent views of the Port of Miami to the south, the City of Miami skyline to the
southwest, the Venetian Islands to the north and Palm and Hibiscus Islands to the east.
The Port of Miami is known as the "Cruise Capital of the World”. lt is home to nearly 20 cruise ships, and
has the largest year-round cruise fleet in the world. The Port also handles more "megaships" - vessels
capable of transporting more than 3,000 guests - than any other port in the world. Carnival Cruise Lines,
Norwegian Cruise Line, and Royal Caribbean International and Celebrity Cruises all operate exceptional
cruise vessels from the Port of Miami. Since the subject is located directly across the waterway from the
Port of Miami, any development on the site would benefit from the proximity to the cruise terminal.
The Port of Miami is recognized, and has been for many years, as the "Cruise Capital of the World" and
"Cargo Gateway of the Americas". It has retained its status as the number one cruise/passenger port in the
world for well over two decades accommodating the largest cruise ships in the world and the operations of
such major cruise lines as Carnival, Royal Caribbean and Norwegian Cruise Line, until the late 2000s, when
Port Everglades was chosen as home to the largest cruise ships in the world, Oasis of the Seas and its sister
ship, Allure of the Seas.
As the "Cargo Gateway of the Americas", the port primarily handles containerized cargo with small
amounts of break bulk, vehicles and industrial equipment. It is the largest container port in the state of
Florida and ninth in the United States. As a world-class port, the Port of Miami is among an elite group of
ports in the world which cater to both cruise ships and containerized cargo.
The Port of Miami is an important contributor to the local south Florida and state economies. Over four
million cruise passengers pass through the Port, 7.4 million tons of cargo and over 1 million twenty-foot
equivalent units (TEU) (FY 2004/2005) of intermodal container traffic move through the seaport per year.
This combination of cruise and cargo activities supports approximately 176,000 jobs, and has an economic
impact in Miami-Dade County of over $17 billion, $14 billion of which is generated by its cargo operations.
The port currently operates eight passenger terminals, six gantry cranes wharves, seven Ro-Ro (Roll-on-
Roll-off) docks, four refrigerated yards for containers, break bulk cargo warehouses and nine gantry
container handling cranes. In addition, the port tenants operate the cruise and cargo terminals which
include their cargo handling and support equipment.
The Port is currently in the final stages of the construction of new tunnel between Watson Island and the
Port. The tunnel will provide direct vehicle access to the interstate highway system for the Port users
bypassing the traffic of downtown Miami. The entrance to the Port of Miami tunnel will be just northeast of
the subject site.
ACCESSIBILITY
Access is via the Mac Arthur Causeway from the City of Miami to the west and from the City of Miami
Beach to the east.
North of the subject is the Venetian Causeway, which connects Biscayne Boulevard to San Marco Island,
San Marino Island, Dilido Island, Rivo Alto Island, and Miami Beach. These islands are dominated by
exclusive waterfront homes. Star Island, Hibiscus Island and Palm Island are located to the east of the
subject, north of the MacArthur Causeway and are home to multimillion-dollar waterfront homes. South of
the subject is the Port of Miami. Southeast of the subject is Fisher Island, a secluded island with mid-rise
condominium and single- family homes, as well as a golf course and country club. The only access to Fisher
Island is by ferry.
18
Jungle Island Hotel
The MacArthur Causeway traverses the subject’s neighborhood. This roadway is called 836 and 395 to the
west of Watson Island. This limited access roadway provides access to the Miami International Airport, as
well as South Beach, and the Art Deco District in Miami Beach. With more than 10.1 million’ overnight
guests in 2000, and with many of them accessing Miami Beach via the MacArthur Causeway, the subject is
well located to attract both businesspeople and tourists.
DEVELOPMENT
Watson Island was created by land reclamation in 1926 with material dredged from the ship channel to the
Port of Miami, and was originally named Causeway Island. The island was later named for John W. Watson,
Sr., who was Mayor of Miami 1912-1915 and 1917-1919. The Goodyear Blimp base in Florida was located
on Watson Island for many years. Vestiges of the old base still remain such as the imprint of the mooring
circle and a paved path for a small tram that would transport passengers to the airship.
Plans to develop the island started in the late 1990s and came to fruition when Jungle Island opened its
doors in the summer of 2003. Since then, the Miami Children's Museum relocated to the island and as of
2004. On May 24, 2010, construction began on the Miami Port Tunnel project connecting the Port of Miami
on Dodge Island under the main shipping channel to the MacArthur Causeway on Watson Island. The
tunnel is set to be completed by 2014.
Currently, development on Watson Island consists of Jungle Island, the Miami Children’s Museum and the
construction associated with the Port of Miami tunnel. It was originally named Parrot Jungle and moved
from its original suburban Pinecrest to its present location just east of Downtown Miami renamed as Parrot
Jungle Island. In 2007, the park was again renamed to Jungle Island. The theme park's landmark is its sails
covering the Jungle Theater, an arena where visitors encounter wildlife from all over the world. The entire
facility was planted without the use of any artificial fertilizers or pesticides, making it one of the only
entirely sustainable theme parks or zoos in the United States.
Also located on Watson Island is the Miami Outboard Club which has been located on Watson Island since
1948. It is active in conservation and artificial reef programs, and provides social and educational activities.
The club has boat slips, dry storage, a boat lift, a ramp for jet skis and other small craft, and a restaurant,
bar and internet café. Adjacent to that is the Miami Yacht Club, which has been located on Watson Island
since the late 1940s. It offers youth and adult sailing programs, and sponsors races, regattas and a Sea
Scout ship. The club has boat slips, dry storage, and a lounge, bar and restaurant.
Additional development in the area includes the Miami Worldcenter. Miami Worldcenter is planned to sit
just west of Biscayne Boulevard, within walking distance of the Adrienne Arsht Center for the Performing
Arts, Perez Art Museum Miami (PAMM), the new Patricia and Philip Frost Museum of Science and Bayside
Marketplace. Miami Worldcenter will include the Marriott Marquis World Convention Center Hotel, which
will feature approximately 1,800 rooms and 600,000 square feet of convention space. Additionally, All
Aboard Florida (AAF) will be bringing its multi-billion dollar private passenger rail, connecting Orlando to
Miami, immediately adjacent to the site. Set to begin service in 2015, AAF's new grand central station is
estimated to bring five million visitors to the site, and will connect with the existing Metromover and
Metrorail, to create a truly integrated transportation hub. The development will also include 750,000
square feet of retail space as part of Miami Worldcenter's first phase, which is scheduled to break ground in
the fourth quarter of 2014. Current plans call for the retail center to open late 2016. The retail mall is to be
anchored by Bloomingdales and Macy’s who have already signed leases.
19
Jungle Island Hotel
DEMOGRAPHICS
The Site To Do Business is a service that provides demographic data, including historical, current and
forecasted population estimates for a specified region. Patterns of development, density and migration are
reflected in the population estimates. A survey of the subject area's population and growth rate is
summarized in the following charts, followed by a map of the surveyed area.
Demographics
2016 2021
Summary 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile
Population 6,671 85,418 201,999 7,310 96,733 219,605
Households 4,007 45,403 98,310 4,433 51,642 107,299
Families 1,264 16,333 40,132 1,380 18,476 43,501
Average Household Size 1.60 1.82 1.99 1.59 1.82 1.99
Owner Occupied Housing Units 1,149 9,625 22,066 1,192 10,490 23,454
Renter Occupied Housing Units 2,857 35,777 76,243 3,241 41,151 83,845
Median Age 37.1 34.8 37.2 36.9 34.9 37.7
Population by Age 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile
0-4 3.3% 4.9% 5.1% 3.2% 4.9% 5.1%
5-9 2.5% 3.9% 4.3% 2.5% 3.9% 4.2%
10 - 14 2.1% 3.0% 3.5% 2.1% 3.2% 3.7%
15 - 19 2.2% 3.1% 3.6% 1.8% 3.0% 3.5%
20 - 24 8.5% 8.2% 7.1% 6.5% 7.5% 6.6%
25 - 34 27.5% 27.6% 22.2% 30.0% 27.8% 22.0%
35 - 44 17.4% 18.4% 16.8% 17.8% 18.1% 16.7%
45 - 54 14.2% 12.4% 12.7% 12.8% 12.3% 12.5%
55 - 64 11.5% 9.2% 10.4% 11.2% 9.2% 10.4%
65 - 74 7.1% 5.7% 7.7% 7.9% 6.3% 8.5%
75 - 84 2.9% 2.7% 4.5% 3.3% 3.0% 4.9%
85+ 0.9% 0.9% 2.0% 0.9% 0.9% 2.0%
Households by Income 1 mile 2 mile 3 mile 1 mile 2 mile 3 mile
<$15,000 10.70% 17.70% 23.20% 9.50% 16.40% 22.20%
$15,000 - $24,999 8.50% 9.50% 12.20% 9.80% 10.70% 13.60%
$25,000 - $34,999 7.00% 8.80% 10.10% 4.40% 5.90% 6.70%
$35,000 - $49,999 13.50% 11.40% 11.90% 8.30% 8.50% 9.40%
$50,000 - $74,999 14.60% 16.70% 14.20% 16.60% 18.70% 15.70%
$75,000 - $99,999 11.60% 10.40% 8.50% 12.60% 11.20% 9.30%
$100,000 - $149,999 18.70% 13.70% 10.40% 22.00% 15.70% 12.30%
$150,000 - $199,999 5.60% 5.00% 4.00% 6.50% 5.90% 4.80%
$200,000+ 9.70% 6.80% 5.50% 10.20% 7.10% 5.90%
Median Household Income $65,532 $52,780 $39,621 $77,056 $59,024 $46,126
Average Household Income $98,327 $80,393 $68,312 $107,723 $87,347 $74,970
Per Capita Income $59,449 $43,290 $34,115 $65,490 $47,091 $37,432
Source: Site To Do Business
20
Jungle Island Hotel
Trends: 2016 - 2021 Annual Rate

1 mile Radius Area State National
Population 1.85% 1.29% 0.84%
Households 2.04% 1.21% 0.79%
Families 1.77% 1.13% 0.72%
Owner HHs 0.74% 1.09% 0.73%
Median Household Income 3.29% 2.52% 1.89%
Population 2.52% 1.29% 0.84%
Households 2.61% 1.21% 0.79%
Families 2.50% 1.13% 0.72%
Owner HHs 1.74% 1.09% 0.73%
Population 1.69% 1.29% 0.84%
Households 1.77% 1.21% 0.79%
Families 1.63% 1.13% 0.72%
Owner HHs 1.23% 1.09% 0.73%
21
Jungle Island Hotel
LIFE CYCLE
A neighborhood’s life cycle usually consists of four stages:
• Growth - a period during which the neighborhood gains public favor and acceptance
• Stability - a period of equilibrium without marked gains or losses
• Decline - a period of diminishing demand
• Revitalization - a period of renewal, redevelopment, modernization, and increasing demand
Source: The Appraisal of Real Estate, 14th Edition
The neighborhood is well located within Miami-Dade County. Downtown Miami, Miami Beach, Miami
International Airport, and the Port of Miami are all located within 15 minutes driving time from the subject.
The immediate neighborhood offers good accessibility to nearby area amenities, several retail and
residential developments, and other types of support facilities. As previously stated, the age of the
developments in the neighborhood varies from moderately new to relatively old. The overall quality and
condition of the improvements within the area range from fair to excellent. Additionally, there is uniformity
within the area in terms of land usage.
The neighborhood, and surrounding neighborhoods to the east and west, is expected to experience
continued growth and development when and where it is feasible. There are numerous new condominium
and hotel condominium developments occurring in the downtown Miami and Miami Beach neighborhoods,
located to the west and east of Watson Island. A testament to the new development is the number of land
sales that have occurred in the last 12 months in Miami Beach, each with the promise of some type of new
or redevelopment.
Another testament to the neighborhood is the recent sale of the Miami Herald site. In May 2011, the Miami
Herald announced it had sold 14 acres of Biscayne Bay-front land surrounding its headquarters for $236
million, to a Malaysian resort developer, Genting Malaysia Berhad. The buyer initially intended to construct
Resorts World Genting, a multi-building hotel, condominium, conference center and casino project. Those
plans were shelved after a failed attempt to legalize additional gambling in the State of Florida. The owners
have not yet announced their plans for the site. However, it is widely projected that the existing
improvements is in the process of being demolished.
NEIGHBORHOOD ANALYSIS CONCLUSION

To recapitulate, the neighborhood has continued to uphold its reputation as one of the more desirable
areas in Miami-Dade County. Accessibility to the major employment hubs, all within a 30-minute drive, as
well as nearby support facilities and recreational areas, adds to the neighborhood’s appeal. The area has a
world-renowned reputation as a quality vacation spot, and many people choose the neighborhood for the
location of their vacation home, or a primary luxury residence. Therefore, the neighborhood should
continue to be in high demand, building upon the solid foundation it has established as a luxury area.
Consequently, the subject should be well suited for development of a mixed use facility, as is proposed on
the site.
22
Jungle Island Hotel
17-216-02 MARKET ANALYSIS
MARKET ANALYSIS
The following information was compiled from published sources and is used in conjunction with primary
and secondary data to analyze the market trends impacting the value of the subject property.
NATIONAL LODGING MARKET - PWC

According to Hospitality Directions US, published by PwC in January 2017:
Following initially lower expectations, the U.S. lodging industry’s performance was encouraging in the
fourth quarter of 2016. Stronger demand, driven primarily by a surge in postelection consumer and
business sentiment, contributed to a better-than-expected RevPAR increase for the industry of 3.2% in
2016.
Independent hotels led the growth in RevPAR in 2016 with an annual increase of 4.6%. The economy chain-
scale segment was second with an annual increase of 3.1%, followed by the midscale chain-scale segment
at 2.5% and the upper-midscale chain-scale segment at 2.3%. At 1.3%, the luxury chain-scale segment
posted the lowest RevPAR gain in 2016.
Looking ahead, earlier concerns related to economic and political uncertainty appear to have moderated
since the end of the election cycle. Instead, the prospects of lower taxes, reduced regulations, and updated
trade policies are forecast to contribute to improving U.S. economic conditions, surging capital markets,
and increasing business and consumer confidence, which has already reached prerecession levels. These
trends are expected to support growth in corporate transient demand, which was uneven in 2016.
Nevertheless, demand-side concerns continue to linger, including the strength of the U.S. dollar and its
impact on inbound, international travel. In addition, an increase in long-term interest rates is anticipated to
constrain domestic economic activity in the short- and medium-term, according to IHS Markit.
Supply
Supply growth for the U.S. lodging industry is expected to accelerate to 1.9% in 2017 (up from 1.6% in
2016), approaching the long-term average of 2.0%, for the first time since 2009 when supply increased at a
faster pace than the long-term average.
For 2017, the upscale chain-scale segment is forecast to see the greatest increase in supply, growing at
5.5% (comparable to its growth in 2016). On the other hand, the economy segment is expected to see a
0.2% decrease in supply in 2017.
Demand
For 2017, PwC’s lodging outlook anticipates moderating demand growth for the industry, as well as six of its
seven chain-scale segments. As a whole, the industry’s demand growth is forecast at 1.6% for 2017, just
below 2016’s level of 1.7%. In contrast, demand grew 2.7% in 2015 and 4.1% in 2014.
For the chain-scale segments, upscale lodging is forecast to lead demand growth in 2017 with an increase
of 4.7%. Even though this is below its level in 2016 (+5.0%), it remains above the industry average of 1.6%.
For 2017, the second highest demand growth forecast is for the upper-midscale segment at 3.9% – above
its 2016 level of 1.9%.
Occupancy
For 2017, acceleration of supply growth, paired with a continued deceleration in the rate of demand
growth, is expected to result in a decline in the industry’s occupancy for the first time in eight years.
Specifically, PwC forecasts the industry’s occupancy level to decrease to 65.3% in 2017.
As shown... each of the five chain-scale segments included in our Survey is forecast to see declines in
annual occupancy in 2017, led by the luxury segment with a decline of 1.5%.
23
Jungle Island Hotel
Average Daily Rate (ADR)

ADR for the U.S. lodging industry was $122.94 for the first half of 2016, a 3.1% increase from the same
period in 2015, as per STR. ADR grew in each chain-scale segment over this time period with only the
economy segment surpassing the U.S. average.
For 2016, ADR for the U.S. lodging industry is forecast to grow 4.7%, which represents the largest annual
gain since 2007. As shown... ADR growth is forecast for each chain-scale segment in 2016.
24
Jungle Island Hotel
Market Spotlight: Manhattan

In the second quarter of 2016, multiple disruptors continued to hamper the performance of Manhattan
hotels as both occupancy and ADR declined in each month of the second quarter. Several factors, such as
the continued strengthening of the U.S. dollar and weakness in corporate transient demand continue to
weigh on U.S. hotels, and a steady influx of supply in the Manhattan lodging market has placed increased
downward pressure on both ADR and occupancy. Overall, the combination of a 3.7% decline in ADR and a
1.4% decrease in occupancy resulted in RevPAR declining 5.0% for the quarter.
Four of Manhattan’s five lodging submarkets continued to report RevPAR declines in the second quarter.
The Upper Manhattan location outperformed the other submarkets with a RevPAR increase of 0.6%, while
the remaining submarkets declines ranging from 3.8% to 9.7%.
Investment Activity
U.S. hotel sale transactions totaled $35.8 billion in 2016, a 29.0% year-over-year decline, as per Real Capital
Analytics. Volume fell for both single asset sales and portfolio and entity-level transactions – down 22.0%
and 39.0% year over year, respectively.
The decline in sales activity in 2016 is more a story about the extremes of 2015. Single-asset deals in 2016,
for instance, fell 22.0% but posted a volume of $23.0 billion – still considered a healthy year as the average
annual pace of sales since 2005 is $17.0 billion. Furthermore, if you exclude the “mega sales” from 2015,
the annual decline in sales volume for 2016 would have been a more modest 7.0%.
When looking at specific metros, volume was up in only seven of the top-25 markets in 2016 compared to
2017. These seven markets, including Honolulu and Nashville, moved up significantly in rank given how
quickly other metros slipped in terms of deal flow.
The top-five metros in terms of sales volume for 2016 are in the table below. Four had the distinction of
being in the top five for 2015. Missing from 2015’s top-five list is Orlando.
2016 Hotel Sales Volume
Metro Total Rank 2015
Manhattan $5,233 1
San Francisco $2,560 2
Chicago $1,926 5
Miami-Dade County $1,426 4
Miami $1,267 6
Source: Real Capital Analytics, Inc.
25
Jungle Island Hotel
NATIONAL FULL-SERVICE LODGING SEGMENT - PWC

Shifts in the key cash flow assumptions used by our surveyed investors in the national full-service
market suggest that they have grown a bit concerned about this lodging sector’s near-term
performance. First, the average overall cap rate increases 12 basis points to 7.90%. Second, the
average ADR change rate assumption for the first year of a cash flow forecast decreases to 2.83%.
This represents the first time that the average for this assumption has fallen below 3.00% since the
first quarter of 2011.
Some of investors’ concerns about this lodging sector stem from a decrease in demand at the same
time that new supply is occurring. As net supply rises, travelers will have more booking options
while owners will likely experience dips in occupancy and the inability to raise ADRs as aggressively
as in the past.
As shown... occupancy for both the upscale and upper-midscale segments that comprise this sector
are forecast to decline in 2017. At the same time, ADR growth is expected to fall below 2016’s
levels this year. (56)
National Market Yield Rates for Real Estate Investments
National Full-Service Lodging Segment
First Quarter 2017
Current Quarter Third Quarter 2016 Year Ago
Discount Rate (IRR) 8.00%-13.00% 8.00%-12.75% 8.50%-13.00%
Average 10.19% 10.40% 10.48%
Overall Cap Rate (OAR) 6.00%-10.00% 6.25%-10.00% 6.00%-10.00%

Average 7.90% 7.78% 7.75%
Residual Cap Rate 7.00%-10.00% 7.00%-10.00% 7.00%-10.00%

Average 8.40% 8.38% 8.38%
Average Daily Rate (2.00%)-7.00% 0.00%-5.00% 0.00%-5.00%

Average 2.83% 3.10% 3.50%
Operating Expense 1.00%-4.00% 1.00%-4.00% 1.00%-4.00%

Average 2.92% 2.80% 2.70%
Marketing Time Range 3-9 months 3-9 months 3-9 months

Average 6.3 7.0 6.9
Source: PwC Real Estate Investor Survey, 1st Quarter 2017
26
Jungle Island Hotel
Lodging Forecasts
National Full-Service Lodging Segment
First Quarter 2017
Segment 2017 Annual Change
Upscale
Occupancy 73.3% -0.8%
ADR $141.22 2.0%
RevPAR $103.44 1.2%
Upper Midscale
ADR $113.41 1.8%
RevPAR $76.13 1.3%
NATIONAL LIMITED-SERVICE MIDSCALE & ECONOMY LODGING SEGMENT - PWC

The two chain-scale segments that comprise the limited-service midscale & economy lodging
segment are expected to perform very differently in 2017. First, the midscale segment is expected
to still see positive demand growth, albeit at a slower rate, while the economy segment is expected
to see a decline in demand. Second, supply is expected to grow 1.1% in the midscale segment, but
decline 0.2% in the economy segment. Both, however, are forecast to realize ADR growth of 2.1%
and 2.2%, respectively, just below the national average of 1.9%.
Surveyed investors do not feel that the growing popularity of Airbnb is impacting the performance
of this lodging segment “too much.” However, one Survey participant notes that “there is some
impact in U.S. gateway markets.” Another adds that “a softening is occurring in select areas.”
A challenging operating environment is reflected in this market’s expected value change over the
next 12 months, which has steadily declined over the past year, reaching an average of -0.3% this
quarter. (57)
National Limited-Service Midscale & Economy Lodging Segment
First Quarter 2017
Average 11.00% 10.55% 10.70%

Average 9.06% 8.70% 8.88%

Average 9.66% 9.43% 9.48%
Average Daily Rate (2.50%)-8.00% 0.00%-4.00% 2.00%-4.00%

Average 2.95% 2.65% 3.15%

Average 2.95% 2.95% 2.95%

Average 6.5 6.8 6.9
27
Jungle Island Hotel
Lodging Forecasts
National Limited-Service Midscale & Economy
First Quarter 2017
Midscale
ADR $87.25 2.1%
RevPAR $51.78 2.1%
Economy
ADR $62.18 2.2%
RevPAR $35.80 1.7%
28
Jungle Island Hotel
NATIONAL LUXURY/UPPER-UPSCALE LODGING SEGMENT - PWC

Due to the addition of new supply and weakened demand, our surveyed investors are being a bit
more conservative with regard to their cash flow assumptions. This quarter, the average ADR
change rate slips to 3.10%. In addition, this market’s average overall cap rate moves up eight basis
points to 7.00%, representing the highest average for this key assumption since the first quarter of
2015. Still, it remains the lowest average overall cap rate of the Survey’s four hotel segments.
Surveyed investors feel that the growing popularity of Airbnb has either “not impacted this
segment at all” or “has not affected it significantly.” As one investor remarks, “In the luxury lodging
environment, guests are looking for the amenities versus just a room to stay in.” Another, however,
believes some cities lodging segments are being affected. “When New York City is at 80.0%-plus
occupancy, Airbnb significantly impacts the ability of the city to fill rooms and particularly impacts
its room rates.” (58)
National Luxury/Upper-Upscale Lodging Segment
First Quarter 2017
Average 9.53% 9.60% 9.60%

Average 7.00% 6.92% 6.90%

Average 7.18% 7.23% 7.27%
Average Daily Rate 0.00%-6.00% 0.00%-9.00% 0.00%-9.00%

Average 3.10% 4.00% 3.83%

Average 2.60% 2.75% 2.83%

Average 6.8 6.3 5.8
Lodging Forecasts
National Luxury/Upper-Upscale Lodging Segment
First Quarter 2017
Luxury
ADR $331.08 2.5%
RevPAR $244.41 1.1%
Upper Upscale
ADR $182.70 2.2%
RevPAR $134.34 1.3%
29
Jungle Island Hotel
NATIONAL SELECT SERVICE LODGING SEGMENT - PWC

Following the trend started for the national select-service lodging market in 2015, an average
property value decline is expected for this market over the next 12 months. Specifically, surveyed
investors see property values either increasing as much as 10.0% or decreasing as much as 3.0%.
The average expected change is a decline of 1.4%.
By comparison, surveyed investors in this lodging segment expected value growth of 11.7% in 2011;
5.2% in 2012%; 4.7% in 2013; 6.4% in 2014; and 3.7% in 2015.
A declining outlook for this lodging segment is also reflected in the cash flow assumptions reported
by our Survey participants this quarter. First, this sector’s average overall capitalization rate moves
up five basis points to 8.60% – the highest average ever reported for the select-service lodging
segment since its debut in 2011. Second, its average ADR change rate slips 20 basis points to 3.00%
– the fifth consecutive semiannual decline for this key assumption and its lowest average since
debuting in our Survey in 2011. (59)
National Select Service Lodging Segment
First Quarter 2017
Average 9.90% 9.80% 10.80%

Average 8.60% 8.55% 8.43%

Average 9.03% 9.03% 8.95%
Average Daily Rate 0.00%-5.00% 0.00%-6.00% 2.00%-5.00%

Average 3.00% 3.20% 3.40%

Average 2.70% 2.70% 2.75%

Average 6.0 5.9 6.0
30
Jungle Island Hotel
NATIONAL LODGING MARKET - REALTYRATES.COM

According to the RealtyRates.com Investor Survey, 1st Quarter 2017, the following tables summarize
prevailing mortgage terms and resulting built-up overall capitalization rates (OAR's) via debt coverage ratio
and band of investment techniques, together with OAR's from consummated transactions as reported by
survey respondents based on actual net operating income (NOI) exclusive of reserves and actual sales price
exclusive of deferred maintenance. These data are for Class A and B properties nationwide. Mortgage terms
and equity dividend rates are likewise national rates as reported by survey respondents.
RealtyRates.com Investor Survey
Lodging Facilities - All Types
First Quarter 2017
Item Input OAR
Minimum
Spread Over 10-Year Treasury 0.86%
Debt Coverage Ratio 1.00 DCR Technique 1.00 x 0.044353 x 0.80 = 3.55%
Interest Rate 3.20% Band of Investment Technique
Amortization 40 Mortgage 80% x 0.044353 = 0.035482
Mortgage Constant 0.044353 Equity 20% x 0.081594 = 0.016319
Loan-to-Value Ratio 80% OAR 0.035482 + 0.016319 = 5.18%
Equity Dividend Rate 8.16% Surveyed Rates 4.92%
Maximum
Average
Debt Coverage Ratio 1.55 DCR Technique 1.55 x 0.082085 x 67% = 8.45%
Loan-to-Value Ratio 66.60% OAR 0.054669 + 0.049105 = 10.38%
Source: RealtyRates.com Investor Survey, 1st Quarter 2017
31
Jungle Island Hotel

Lodging Facilities - Full Service
First Quarter 2017
Item Input OAR
Minimum
Maximum
Average
32
Jungle Island Hotel

Lodging Facilities - Limited Service
First Quarter 2017
Item Input OAR
Minimum
Maximum
Average
33
Jungle Island Hotel

Lodging Facilities - Golf/Gaming/Resort
First Quarter 2017
Item Input OAR
Minimum
Maximum
Average
The following tables summarize discount and equity dividend rates reported by survey respondents. In all
cases, rates were derived from Class A and B properties nationwide and are exclusive of reserves. Note that
"Recapitalizations" refers to re-financing under current use.
Lodging - Discount Rates
First Quarter 2017
New Development Acquisitions Recapitalizations
Property Type Min. Max. Avg. Min. Max. Avg. Min. Max. Avg.
Lodging 7.00% 19.14% 13.47% 5.88% 16.08% 11.32% 6.79% 18.57% 13.07%
Full Service Facilities 7.00% 16.36% 13.59% 5.88% 13.74% 11.41% 6.79% 15.87% 13.18%
Limited Service Facilities 8.07% 19.14% 13.82% 6.78% 16.08% 11.61% 7.82% 18.57% 13.40%
Golf/Gaming/Resort 7.63% 18.08% 12.71% 6.41% 15.19% 10.68% 7.40% 17.54% 12.33%

Lodging - Equity Dividend Rates
First Quarter 2017
Property Type Min. Max. Avg.
Lodging 8.16% 20.06% 14.70%
Full Service Facilities 8.16% 18.86% 12.97%
Limited Service Facilities 8.36% 20.06% 13.62%
Golf/Gaming/Resort 8.26% 19.46% 13.30%
34
Jungle Island Hotel
MIAMI-DADE COUNTY HOTEL MARKET

The Miami hotel market is one of the larger hotel markets in the nation. According to the Greater Miami
Convention and Visitors Bureau, there are four primary hotel submarkets in Miami-Dade County, Florida:
Downtown/North Miami-Dade, Miami Beach, South Miami-Dade and Airport/Civic Center. There are also
five secondary submarkets. The following chart summarizes the hotel inventory in Miami-Dade County, as
of August 2016. Miami Beach has the largest percentage of hotels, as well as the highest percentage of
hotel rooms.
35
Jungle Island Hotel
36
Jungle Island Hotel
As can be seen above there were a total of over 1,160 rooms added to the Downtown/Brickell market.
There is an additional 290 rooms expected to open in the next year or so. Additionally, there are 3,075
hotel rooms planned for the Downtown market.
37
Jungle Island Hotel
DOWNTOWN/NORTH MIAMI-DADE
The Downtown Miami submarket is similar to the Miami Beach market in that it attracts business travelers,
conventioneers and overnight guests associated with the cruise ship industry. However, unlike the Miami
Beach market, the Downtown Miami market mainly caters to businessmen instead of the tourist trade. The
premier hotels in this market include the JW Marriott, the Inter-Continental, the Hyatt Regency, the
Mandarin Oriental, the Omni and the Marriott. Joining this list are the newly completed Four Seasons, and
the recently completed Conrad Hotel.
The North Miami-Dade hotel submarket is primarily derived from business travelers, groups, transient
guests and some tourists. The majority of the hotels in this submarket are limited-service properties or mid-
priced full-service properties, which offer food and beverage services. There are a limited number of
upscale, full-service hotels within this submarket.
MIAMI BEACH
The Miami Beach market consists primarily of business travelers, conventioneers, tourists and some
overnight guests associated with the cruise ship industry. The Miami Beach Convention Center is a
renovated and expanded facility that now provides more than one million square feet of meeting and
exhibit space. To support this new facility, the City of Miami Beach continues to seek new hotel
development. Older properties, especially in the Art Deco District, continue to be renovated by investors.
The premier hotels on Miami Beach are the Fontainebleau and the Loews convention hotel. More recent
additions to the Miami Beach market are the Royal Palm Crowne Plaza, The Shore Club, The Ritz Carlton
DiLido, The W Hotel, and the Setai.
SOUTH MIAMI-DADE
The South Miami-Dade submarket is composed mainly of business travelers and vacationers. Coral Gables
and Coconut Grove represent a major office corridor within Miami-Dade County, which attracts numerous
business travelers. Additionally, this submarket encompasses a number of the county’s premier lodging
facilities such as: The Biltmore, The Grand Bay, The Hyatt, The Omni, The Mayfair, the Ritz Carlton Key
Biscayne and the Sonesta Beach Resort. Key Biscayne attracts a number of tourists each year who come
specifically to Key Biscayne. The Ritz Carlton Coconut Grove joined these hotels in the first quarter of 2002.
AIRPORT/CIVIC CENTER
The final hotel market in Miami-Dade County is the Airport/Civic Center market. This market boasts the
newest and most competitive inventory, as well as the widest variety of quality type hotels. The airport
market caters primarily to overnight stays for businessmen and overnight stays for tourists waiting for
plane or ship transfers.
This market consists of a mixture of high-end, middle of the road and budget properties. At the high-end,
the market includes the Intercontinental, Marriott, Hilton, Hotel Sofitel, Embassy Suites and Radisson Mart
Plaza Hotel. The middle of the market consists of several Holiday Inn, Marriott Courtyard and Ramada
Hotel. The budget or lower end of the market is composed of the Howard Johnson motel, Quality Inn,
Fairfield Inn and Days Inn.
Prior to 1998, there were very few, if any high quality hotels in the Miami market. Since the Loews Hotel
with 948 rooms opened in December of 1998, there have been a number of high-end hotels that have
decided to open for business in Miami. These include three Ritz Carlton hotels, (Key Biscayne, Coconut
Grove and Miami Beach), the Four Seasons, the Setai, the Bentley Beach Hotel, the Conrad by Hilton, the
Mandarin Oriental, the JW Marriott, the Shore Club, the Trump Ocean Grand among other less luxurious
brands.
38
Jungle Island Hotel
Miami-Dade County Average Occupancy Levels

The following chart summarizes the average level of occupancy in Miami over the last twenty four months
for which data is available:
Source: Greater Miami Convention and Visitors Bureau and Smith Travel Research
Miami-Dade County Average Room Rates

The following chart summarizes the average level of ADR in Miami over the last twenty four months for
which data is available:
The multiplication of the average daily rate and the average occupancy is called the RevPAR, or the revenue
per available room. As previously noted, the Miami market currently has one of the highest RevPARs in the
nation. The historical county RevPAR for the last 24 months for which data is available, is shown on the
graph that follows:
39
Jungle Island Hotel
Miami-Dade County Historical RevPAR Rates
The total number of visitors to the Greater Miami area is illustrated in the following chart.
40
Jungle Island Hotel
The total number of international visitors has increased every year since 2001, with the exception of 2002
and 2009, while the total number of domestic visitors has increased annually since 2001. The increasing
number of visitors to the area is beneficial to the hotel market as demand and occupancy for the rooms
should continue to increase.
41
Jungle Island Hotel
The visitor industry continued to improve in 2016, as total overnight visitors to Greater Miami and the
Beaches increased by 1.5% compared to 2015. The majority of the increase in visitors was during the first
quarter; January, February and March all saw at least 4.8% more visitors than for that month in 2015. There
was an estimated, record-high 15.7 million visitors who spent at least one night in Greater Miami and the
Beaches during January-December 2016.
Consistent with previous years, Miami Beach remained the most common area for visitor lodging and has
grown in popularity over the past two years. Downtown Miami and North-Dade/Sunny Isles Beach were
also top areas for lodging. The following is a percentage breakdown of where visitors who used lodging
stayed in 2016:
• Miami Beach (55.6%)
• Downtown Miami (15.0%)
• North-Dade/Sunny Isles Beach (11.7%)
• Airport Area (8.3%)
• South Miami-Dade (3.8%)
• Doral (2.9%)
• Key Biscayne (2.4%)
• Coconut Grove (1.7%)
• Coral Gables (1.3%)
42
Jungle Island Hotel
There was a significant increase in domestic visitors coming to Miami for leisure and vacation, causing the
number of total visitors traveling for pleasure to be significantly more in 2016 than 2015. In 2016, there was
a significant decrease from 2015 in domestic and international visitors traveling for business. Domestic
visitors traveled for business purposes more than twice as much as international visitors.
There were 3.7% of all visitors rented a residence, and of those who rented a residence, 71.8% of them
used a peer to peer website. Peer to peer websites are common channels for people to rent residences
during their visit to the Greater Miami area. Domestic visitors and international visitors utilized P2P sites at
nearly same rate.
43
Jungle Island Hotel
According to Smith Travel Research, 2016 continued the trends we saw in 2014 for the Top 25 U.S. Hotel
Markets. Performances in all categories used in the lodging industry were above a year ago, spurred by
room demand, which increased by approximately +1.7%. This is an indicator that demand from all major
sources (business, transient, leisure and group) was strong and is expected to remain strong. The number of
available rooms grew by +1.6%. The year-end occupancy for the Top 25 U.S. Hotel Markets reached 73.4%,
a decrease of +0.2%. Average daily rate for the Top 25 U.S. Hotel Markets reached $151.22 an increase of
+2.6% Revenue Per Available Room for Top 25 U.S. Hotel Markets increased to $110.97 up +2.4%, according
to STR. The year-end occupancy for the total U.S. Hotel Market saw an increase of +0.1% reaching 65.5%
from 2015. Average daily rate for the total U.S. increased +3.1% reaching $123.97. Revenue Per Available
Room for the total U.S. Hotel Market increased by +3.2% to $81.19 according to STR.
2016 was a challenging year in Greater Miami for the hotel industry with increased room inventory,
declines from two of our largest international markets, and the Miami Beach convention c Center being off
line, Hotels in Greater Miami and the Beaches finished the year with an occupancy rate of 75.1%, a
decrease of -2.7% versus 2015. Hotels in Greater Miami and the Beaches have an average daily room rate
(ADR) of $189.77, a decrease of -2.9% compared to 2015. The decrease in occupancy and average daily
room rate resulted in revenue per available room (RevPAR) of $143.95, a decline of -5.5% for Greater
Miami and the Beaches.
Even with all these challenges, Greater Miami and the Beaches sold a record 14.7 million room nights in
2016, representing +1.5% growth over the previous year. The area also continued to grow in the number of
available rooms, reaching a total of 54,468 rooms, an increase of +4.5% compared to total rooms available
in December 2015.
In 2016, Greater Miami and the Beaches ranked among the top ten in all three major categories
(Occupancy, ADR and RevPar) when compared against the Top 25 U.S. Hotel Markets by STR. Greater Miami
was the top performing Florida market among the Top 25 U.S. Hotel Markets as listed by STR.
The following chart summarizes the average daily rate (ADR), occupancy and Revenue per Available Room
(RevPAR) for the various submarkets located in Miami-Dade County in 2008, 2009, 2010, 2011, 2012, 2013,
2014, 2015 and 2016. The subject is located in the Miami Beach submarket.
The following chart summarizes the average daily rate (ADR), occupancy and Revenue per Available Room
(RevPAR) for the various submarkets located in Miami-Dade County in 2008, 2009, 2010, 2011, 2012, 2013,
2014, 2015 and 2016.
Occupancy 2016 2015 2014 2013 2012 2011 2010 2009 2008
Airport/Civic Center 86.4% 88.2% 86.0% 84.8% 84.1% 82.1% 78.6% 69.7% 78.1%
Aventura/Sunny Isles 72.3% 74.3% 75.5% 76.8% 73.2% 73.2% 69.7% 67.5% 70.6%
Central Dade 76.3% 78.0% 74.8% 73.6% 72.3% 72.1% 67.4% 60.6% 65.1%
Grove/Key Biscayne 69.6% 72.6% 74.7% 76.6% 74.9% 74.7% 70.6% 67.0% 71.5%
Coconut Grove 74.3% 76.1% 73.2% 75.8% N/A N/A N/A N/A N/A
Coral Gables 77.0% 77.4% 77.7% 76.0% 76.8% 74.7% 70.7% 65.6% 67.3%
Doral 79.4% 81.0% 77.6% 77.4% 81.7% 81.0% 77.2% N/A 75.6%
Downtown 74.8% 80.2% 79.9% 76.4% 74.4% 72.6% 67.6% 60.8% 67.7%
Miami Beach 72.7% 74.5% 77.1% 77.9% 75.5% 75.3% 68.5% 65.7% 72.4%
North Date 78.3% 78.6% 77.2% 76.0% 78.0% 74.9% 68.2% 63.9% 69.1%
South Dade 73.5% 74.0% 67.0% 59.9% 66.5% 63.6% 59.3% 53.3% 57.5%
Surfside/Bal Harbor 68.4% 69.5% 67.5% N/A N/A N/A N/A N/A N/A
Miami-Dade 75.9% 78.0% 78.0% 77.4% 76.4% 75.6% 70.2% 65.1% 71.4%
44
Jungle Island Hotel
The subject is located in the Downtown submarket. The Downtown submarket has averaged consistently
near the average rate of occupancy for the entire county in the last six years. The submarket has ranged in
occupancy from 60.8% to 80.2%. 2015 saw an increase in occupancy from the previous years. Occupancy
has decreased from 2015 to 2016.
Average Daily Rate 2016 2015 2014 2013 2012 2011 2010 2009 2008
Airport/Civic Center $119.20 $120.84 $113.29 $106.02 $99.37 $98.67 $94.23 $95.45 $113.81
Aventura/Sunny Isles $212.03 $211.50 $200.80 $188.23 $170.06 $167.32 $158.92 $159.77 $181.54
Central Dade $121.54 $123.58 $119.42 $113.58 $107.22 $102.25 $100.43 $102.04 $119.74
Grove/Key Biscayne $226.37 $236.75 $222.74 $214.52 $200.99 $192.14 $184.98 $184.83 $221.91
Coconut Grove $174.53 $175.44 $172.37 $163.50 N/A N/A N/A N/A N/A
Coral Gables $161.19 $162.74 $156.05 $148.56 $136.45 $130.52 $128.29 $130.17 $160.08
Doral $137.36 $138.08 $125.86 $117.17 $104.41 $100.84 $96.20 N/A $109.38
Downtown $195.99 $198.67 $191.19 $182.35 $169.27 $156.97 $150.31 $145.26 $175.06
Miami Beach $250.58 $264.36 $251.36 $236.59 $227.19 $211.23 $197.56 $182.86 $202.76
North Date $102.48 $100.84 $99.42 $89.90 $84.35 $77.38 $76.27 $77.30 $92.25
South Dade $93.53 $88.84 $85.12 $84.42 $82.11 $152.95 $75.20 $77.89 $88.08
Surfside/Bal Harbor $382.22 $434.93 $359.88 N/A N/A N/A N/A N/A N/A
Miami-Dade $189.77 $195.45 $184.79 $174.90 $163.59 $144.13 $143.98 $140.22 $160.14
The Downtown submarket has averaged consistently above the average daily rate for the entire county in
the last nine years. The submarket has over performed the county as a whole. Over the last four years, the
average daily rate for the Downtown submarket has ranged from $182.35 to $198.67. The 2013 average
daily rate has surpassed the 2008 average daily rate. ADR has decreased from 2015 to 2016.
RevPAR 2016 2015 2014 2013 2012 2011 2010 2009 2008
Airport/Civic Center $102.99 $106.58 $97.43 $89.90 $83.57 $81.01 $74.06 $66.53 $88.89
Aventura/Sunny Isles $153.30 $157.14 $151.60 $144.56 $124.48 $122.48 $110.77 $107.84 $128.17
Central Dade $92.74 $96.39 $89.33 $83.59 $77.52 $73.72 $67.69 $61.84 $77.95
Grove/Key Biscayne $157.55 $171.88 $166.39 $164.32 $150.54 $143.53 $130.60 $123.84 $158.67
Coconut Grove $129.68 $133.51 $126.17 $123.93 N/A N/A N/A N/A N/A
Coral Gables $124.12 $125.96 $121.25 $112.91 $104.79 $97.50 $90.70 $85.39 $107.73
Doral $109.06 $111.84 $97.67 $90.69 $85.30 $81.68 $74.27 N/A $82.69
Downtown $146.60 $159.33 $152.76 $139.32 $125.94 $113.96 $101.61 $88.32 $118.52
Miami Beach $182.17 $196.95 $193.80 $184.30 $171.53 $159.06 $135.33 $120.14 $146.80
North Date $80.24 $79.26 $76.75 $68.32 $65.79 $57.96 $52.02 $49.39 $63.74
South Dade $68.74 $65.74 $57.03 $50.57 $54.60 $97.28 $44.59 $41.52 $50.65
Surfside/Bal Harbor $261.44 $302.28 $242.92 N/A N/A N/A N/A N/A N/A
Miami-Dade $144.04 $152.45 $144.14 $135.37 $124.98 $108.96 $101.07 $91.28 $114.34
The Downtown submarket’s 2015 RevPAR grew by roughly 10.33% compounded annually from 2009. The
Miami-Dade County saw a RevPAR growth of roughly 8.92% compounded over the same time period,
showing that the market recovery is occurring throughout the county. However, RevPAR has decreased
more than 8% 2015 to 2016.
DOWNTOWN HOTEL SUBMARKET
Briefly described, the site is estimated to consist of approximately 104,093 SF or 2.39± acres of uplands
located in the southern portion of the Jungle Island site on Watson Island, in Miami, Miami-Dade County,
Florida. The site is owned by the City of Miami. According to the developer, the site is proposed for a 300
room hotel, plus 10,000 SF of retail space and 30,000 SF of meeting/banquet space. There are no plans or
square footage estimates for the hotel presented by the developer. The appraiser estimated a total gross
building area including the hotel, retail, meeting space and parking to be 346,000 SF. The subject is zoned
CS Civic Space, under Zoning Ordinance Miami 21, per the City of Miami.
45
Jungle Island Hotel
In order to better understand the subject’s immediate hotel market, I present information obtained from
the Greater Miami Convention and Visitors Bureau pertaining to hotels within the Downtown submarket.
Occupancy ranged from a low of 60.8% in 2009 to a high of 80.2% in 2015 and has averaged 72.71% over
the past nine years.
Average daily rates ranged from a low of $145.26 in 2009 to a high of $198.67 in 2015 and have averaged
$173.90 over the past nine years.
In the Downtown submarket revenue per available room, or RevPAR ranged from a low of $88.32 in 2009
to a high of $159.33 in 2015 and has averaged $127.37 over the past nine years.
A graphic depiction of the average occupancy, average daily rate (ADR) and RevPAR within the Miami Beach
submarket is shown below.
Downtown Occupancy, ADR and RevPAR
$250
91%
79.9% 80.2% 74.8%
81% 67.7% 74.4% $200
72.6% 76.4%
71% 67.6% $198.67
60.8% $191.19 $195.99
61% $182.35 $150
$175.06 $156.97 $169.27 $159.33
$145.26 $152.76
51% $150.31 $146.60
$125.94 $139.32
41%
$113.96 $100
$118.52 $101.61
31%
$88.32
21% $50
11%
1% $0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Occupancy ADR RevPAR
According to a Miami Hearld article among the top 25 markets in the country, Miami-Dade was one of two
(the other was Houston, Texas) to report decreases across three key hotel metrics, according to a report
from data and analytics firm STR, which tracks hotel performance.
Supply, or the number of new hotel rooms, is the lead perpetrator of Miami-Dade’s declining numbers,
Miami-based hotel consultant Scott Brush said. The region welcomed a 4.2 percent increase in hotel rooms
in 2016, a giant leap in a local hotel business that already has more than 50,000 hotel rooms. (Nationally,
cities welcomed 1.6 percent new hotel rooms on average.)
But demand for those rooms has not kept pace. Room nights sold grew by 1.4 percent on average in 2016,
causing other metrics to decline.
Other factors, chiefly Zika and Airbnb, hacked away at Miami-Dade’s performance, too.
Over the summer, the Centers for Disease Control and Prevention issued an unprecedented travel warning
to the region. Hotels across Miami-Dade experienced a drop in bookings; one reported experiencing its
three worst weeks in 15 years.
46
Jungle Island Hotel
That impact may have dripped into the fall months, Brush said. Hotel room occupancy, the average daily
rate and revenue per available room went negative during the last five months of the year. Room nights
sold were down between October to December.
“Zika impact probably hurt conventions and meetings more than it hurt the individual tourist because if
you’re a meeting coordinator you don’t want to be the guy known as setting up a meeting in a Zika-infested
whatever,” Brush said.
Meanwhile, the popularity of Airbnb and other short-term rental platforms has been on the rise. According
to a separate STR report released last week, Airbnb has impacted hotels, though the extent is not yet
quantifiable. In Miami-Dade, Airbnb was responsible for 3.6 percent of total room nights sold in the overall
hotel industry from July 2015 and July 2016.
Scott Berman, Miami-based industry leader for hospitality and leisure at PwC, said local hotel managers are
worried about home sharing platforms.
Another point of concern is the international markets that typically feed Miami. Many countries in Latin
American and Europe faced economic challenges in 2016. At the same time, the U.S. dollar strengthened,
making Miami more expensive for foreigners. Four of the top five markets fueling Miami are outside the
U.S., according to the Greater Miami Convention and Visitors Bureau.)
Travel to Miami International Airport painted the picture: Traffic from No.1 international market Brazil
declined by 30 percent. The number of Canadian visitors, the No. 2 international market according to the
tourism bureau, declined by 10 percent. Passenger traffic began to drop in August and continued on a
decline through November, plunging as much as 7 percent in October. (The airport has not yet released
figure for December.) Although scraping through for a tiny overall passenger increase of 0.53 percent over
2015, the airport experienced its weakest growth rate since 2009.
There are numerous financing vehicles available for hotel development and are numerous proposed hotels
moving toward development.
The hotels that were included in the Market Analysis represent some hotels that are either on par with, or
possibly superior to the subject, as well as hotels that are inferior to the subject. This report surveyed seven
properties, which contained a total of 2,664 rooms, located in the Downtown Miami submarket. The
following chart shows the properties included in this survey:
Property # of Rooms
Marriott Biscayne Bay 600
Hilton Downtown 528
Doubletree Hilton Grand Hotel 219
Courtyard Marriott Miami Downtown 233
Hotel Intercontinental 641
Destination YVE Hotel 243
Holiday Inn Port of Miami Hotel 200
Total 2,664
A summary of the comparables located in the Downtown Miami submarket, which were noted by the
appraiser as offering the greatest amount of competition, is presented on the pages that follow.
47
Jungle Island Hotel
Market Comparable 1
Name: Marriott Biscayne Bay Hotel

Property Type: Full Service Hotel
Location: 1633 N. Bayshore Drive
Miami, FL 33132
# of Guest Rooms: 600
Year Built: 1982
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Trip Advisor Rank #19 out of 122 hotels in Miami
Trip Advisor Stars 4.0 of 5 based on 2,980 reviews
Room Rates:
Season 2017 - $224 - $269
Non Season 2017 - $124 - $189
Comments: This is an older full service located along Biscayne Bay, just
off the Venetian Causeway along North Bayshore Drive.
48
Jungle Island Hotel
Market Comparable 2
Name: Hilton Downtown Hotel

Location: 1601 Biscayne Boulevard
Miami, FL 33132
Year Built: 1975
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Room Rates:
Season 2017 - $206 - $419
Non Season 2017 - $119 - $279
Comments: This hotel is part of the old Omni Mall.
49
Jungle Island Hotel
Market Comparable 3
Name: Doubletree Hilton Grand Hotel

Location: 1717 North Bayshore Drive
Miami, FL 33132
Year Built: 1986
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Room Rates:
Season 2017 - $193 - $419
Non Season 2017 - $140 - $409
Comments: This is an older full service located along Biscayne Bay, just
off the Venetian Causeway along North Bayshore Drive.
50
Jungle Island Hotel
Market Comparable 4
Name: Courtyard Marriott Miami Downtown Brickell Hotel

Location: 200 SE 2nd Avenue
Miami, FL 33131
Year Built: 1975
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - No
Room Rates:
Season 2017 - $278 - $344
Non Season 2017 - $187 - $264
Comments: This is an older hotel located north of the Miami River.
They offer a fitness center and business center.
51
Jungle Island Hotel
Market Comparable 5
Name: Hotel Intercontinental

Location: 100 Chopin Plaza
Miami, FL 33131
Year Built: 1983
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Room Rates:
Season 2017 - $221 - $475
Non Season 2017 - $142 - $413
Comments: This is a luxury hotel located at the mouth of the Miami
River. This hotel also ha luxury suites with rates of roughly
$1,950 per night.
52
Jungle Island Hotel
Market Comparable 6
Name: Destination YVE Hotel

Miami, FL 33132
Year Built: 1926/1950
Amenities:
Pool - No
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Room Rates:
Season 2017 - $135 - $322
Non Season 2017 - $75 - $161
Comments: This is an older hotel located along Biscayne Boulevard in
Downtown Miami across from Bayside Shoppes. They offer
a fitness center and business center.
53
Jungle Island Hotel
Market Comparable 7
Name: Holiday Inn Port of Miami Hotel

Miami, FL 33132
Year Built: 1950
Amenities:
Pool - Yes
Meeting Room - Yes
Restaurant - Yes
Lounge - Yes
Room Rates:
Season 2017 - $160 - $211
Non Season 2017 - $138 - $187
Comments: This is an older hotel located along Biscayne Boulevard in
Downtown Miami across from Bayside Shoppes. They offer
a fitness center and business center.
54
Jungle Island Hotel
SUBJECT PROJECTIONS
The following table summarizes the properties that are considered direct competition for the subject.
Property # of Rooms Room Rates
Marriott Biscayne Bay 600 $124 - $269
Hilton Downtown 528 $119 - $419
Doubletree Hilton Grand Hotel 219 $140 - $419
Courtyard Marriott Miami Downtown 233 $187 - $344
Hotel Intercontinental 641 $142 - $475
Destination YVE Hotel 243 $75 - $322
Holiday Inn Port of Miami Hotel 200 $138 - $211
I surveyed seven hotels in the subject’s market to determine quoted room rates for the subject. The quoted
room rates range from $75 to $475. The upper end of the range is represented by suites. The most similar
properties to the subject are the Marriott Biscayne Bay and Doubletree Hilton Grand.
I provided information pertaining to other hotels in the subject’s market that directly compete with the
subject. Although these hotels represent the subject’s primary competitors, they display a range of lodging
types and facilities. The comparables include limited service, full service and suite hotels and range in size
from 200 to 641 rooms. The subject, proposed for 300 rooms, falls within the range of the competitors in
terms of size.
Next is to determine the percentage relationship of each market segment to the whole for each of the
competitive facilities. As previously stated, the market's overall room night demand must be divided into
individual market segments. In the lodging activity approach, market segmentation is accomplished during
the competitive interviews by asking questions about the percentage each market segment contributes to
the whole.
When quantifying demand based on lodging activity, it is necessary to determine the room counts of all the
competitive hotels. This information can be obtained from each property or from various directories.
The ADR’s and Occupancies were estimated by the consultant, based upon discussions with each of the
properties, other knowledgeable parties in the market and a Trend Report by Smith Travel Research, on the
Primary Competitors.
A study obtained from Smith Travel Research shows average room rates and occupancy rates for the main
competitive set of properties. This study includes all nine primary competitors. The trends are from January
2011 through December 2016 and are summarized on the following graph.
ADR’s and Occupancies for each individual hotel was estimated by the appraiser from discussions with
people in the market.
55
Jungle Island Hotel
ADR, Occupancy and RevPar Trends

Primary Competitive Set
200
ADR/Occupancy/Revpar
170
ADR
140
Occupancy
110
RevPar
80
50
2011 2012 2013 2014 2015 2016
ADR Occupancy RevPAR

2011 $134.45 79.3% $106.59
2012 149.11 79.9% 119.08
2013 157.61 80.3% 126.53
2014 165.49 84.6% 139.97
2015 173.14 84.5% 146.24
2016 174.93 79.00 138.27
As can be seen by the previous chart, ADR has shown a 5.40% compounded annual increase from 2011 to
2016. ADR only increased 1.00% from 2015 to 2016. Occupancy jumped from 79.3% in 2011 to 84.6% in
2014. Occupancy slipped from 84.5% in 2015 to 79.0% in 2016. RevPar has shown a steady increase from
2011 to 2015, with a 5.45% decrease from 2015 to 2016.
The projected occupancies for the proposed subject range from a low of 67% in its opening year, to an
average of 80% upon stabilization in the third year of operation. Because the hotel has a commercial and
leisure orientation, it should perform at a somewhat higher occupancy than purely commercial properties,
and will probably achieve occupancy levels at the low end of the comparable mid-priced hotels. Based on
this analysis, a stabilized occupancy of between 79% to 84% is considered appropriate for the proposed
subject.
The subject’s competitive set RevPAR increased 37.2% or 8.23% compounded annually from 2011 to 2015.
However, the RevPAR decreased 5.45% from 2015 to 2016.
The competitive set, Miami-Dade County market and Downtown Miami hotels show occupancies of 79.0%,
75.9% and 74.8% for 2016. As stated earlier, the average occupancy for the competitive set over the past
six years is 81.2%. The subject should achieve 67% occupancy in the first year of operation, 75% in the
second year of operation, then stabilize at 80% occupancy in the third year of operation.
The competitive set, Miami-Dade County market and Downtown Miami hotels show ADR’s of $174.93,
$189.77 and $195.99 for 2016. As stated earlier, the average ADR for the competitive set in 2016 was
$174.93 and over the past six years is $159.32.
The estimate of ADR for the subject today is $175 and occupancy of 80%.
56
Jungle Island Hotel
Projected Revenue Per Available Room (RevPAR)

2011 2012 2013 2014 2015 2016 Subject
Occupancy Occupancy Occupancy Occupancy Occupancy Occupancy Occupancy Projection
Subject N/A N/A N/A N/A N/A N/A 80.00%
Competitive Set 79.30% 79.90% 80.30% 84.60% 84.50% 79.00%
Downtown 72.60% 74.40% 76.40% 79.90% 80.20% 74.80%
Miami-Dade 75.60% 76.40% 77.40% 78.00% 78.00% 75.90%
2011 2012 2013 2014 2015 2016 Year 1

ADR ADR ADR ADR ADR ADR ADR Projection
Subject N/A N/A N/A N/A N/A N/A $175.00
Competitive Set $173.55 $173.55 $169.06 $177.56 $183.97 $179.60
Downtown $156.97 $169.27 $182.35 $191.19 $198.67 $195.99
Miami-Dade $144.13 $163.59 $174.90 $184.79 $195.45 $189.77
2011 2012 2013 2014 2015 2016 Year 1

RevPAR RevPAR RevPAR RevPAR RevPAR RevPAR RevPAR Projection
Subject N/A N/A N/A N/A N/A N/A $140.00
Competitive Set $137.63 $138.67 $135.76 $150.22 $155.45 $141.88
Downtown $113.96 $125.94 $139.32 $152.76 $159.33 $146.60
Miami-Dade $108.96 $124.98 $135.37 $144.14 $152.45 $144.04
Year Year 1
Room Revenues 2012 2012 2013 2014 2015 2016 Projection
N/A N/A N/A N/A N/A N/A $15,330,000
Hotels generate income from room revenue, but also from food and beverage sales, and other income
sources. We also projected the subject’s total revenue, based on actual performance statistics of full service
hotels in the subject’s area. The following chart summarizes the percentage of income that comes from the
various components of a full service hotel. The source is 2016 Annual Smith Travel Hospitality Trends.
All Full Service Chain South Upper Upscale
Independent Resort
Hotels Affiliated Atlantic Class
2015 Percent of Revenue
Rooms 64.2% 64.9% 56.8% 61.2% 54.5% 63.3%
Food and Beverage 29.0% 28.8% 31.2% 31.4% 33.1% 30.2%
Other Operated Departments 4.2% 3.8% 8.6% 4.7% 8.0% 3.7%
Rentals and Other Income 2.6% 2.5% 3.3% 2.8% 4.5% 2.9%
Total Revenues 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
ADR $189.86 $188.55 $205.82 178.24 $227.63 $182.40

Occupancy 74.1% 74.5% 69.4% 73.6% 73.1% 74.8%
Based on the information provided, we conclude the subject’s hotel will generate approximately 60% of the
total hotel revenue from the sale of room nights. The remaining income of 40% is projected to come from
ancillary income such as food and beverage, banquet room rentals, telecommunications and other
departments.
The subject is to include 300 hotel rooms, 10,000 SF of retail space and 30,000 SF of meeting and banquet
space.
57
Jungle Island Hotel
The total projected revenue for the hotel at the subject is calculated as follows.
Luxury Hotel Per Room Total
Rooms 1 300
ADR $175.00 $150.00
Occupancy 80.00% 80.00%
RevPAR $140.00 $140.00
For future market share projections, we determined that there would be an increase in supply over the
next ten years in the subject’s submarket to meet increasing demand from tourists and population
increases. Our research in the market revealed several projects that will be competitive to the subject
property. According the Miami-Dade County Convention and Visitors Bureau, there are over 7,700
additional rooms that should come on-line within the next 12 to 48 months for Miami-Dade County. These
hotel rooms may or may not directly compete with the subject. Given their distant proximity to the subject
and amenities, these hotels will offer only some competition for the subject. The subject is a limited service
hotel, with small meeting space. Based upon the comparables surveyed, as well as the future supply and
demand for hotels in the Miami-Dade County market, I am of the opinion that the subject should be able to
obtain its fair share of the room nights sold among its competitors.
58
Jungle Island Hotel
17-216-02 DESCRIPTION OF THE SITE
SITE DETAILS
ADDRESS 1111 Parrot Jungle Trail, Miami, Miami-Dade County, FL 33132
PARCEL NUMBER 01-3231-000-0014
LOCATION The subject is located on Watson Island on the MacArthur
Causeway, just east of Biscayne Boulevard.
LOCATION TYPE Urban
MAP LATITUDE/LONGITUDE 25.7860793/-80.1750513
CENSUS TRACT 12-086-9810.00
SIZE 104,093 SF or 2.39 acres
ZONING The parcel is zoned “CS,” under the jurisdiction of the City of
Miami.
BUILDABLE SF 346,000 SF
PRIMARY FRONTAGE STREET MacArthur Causeway.
ADJACENT PROPERTIES - NORTH Water/Biscayne Island
ADJACENT PROPERTIES - SOUTH Port of Miami/Government Cut
ADJACENT PROPERTIES - WEST Palm and Hibiscus Islands
ADJACENT PROPERTIES - EAST City of Miami
PROPOSED USE Hotel - Full Service
NUMBER OF PROPOSED UNITS 300
PROPOSED UNIT STATUS Planned
VIEW Good
ACCESS Access is via the Mac Arthur Causeway from the City of Miami to
the west and from the City of Miami Beach to the east.
INGRESS/EGRESS Ingress/egress is via the MacArthur Causeway.
SITE VISIBILITY Good
STREET LIGHTING Good
STREET CONDITION Paved with asphalt
SIDEWALKS No
CURBS AND GUTTERS No
LANDSCAPING The subject's landscaping is typical for the area.
TOPOGRAPHY The subject's topography is level and at street grade.
SHAPE The subject site is irregular in shape.
REQUIRED SITE WORK Demolition
SOIL CONDITIONS AND DRAINAGE The soil conditions observed at the subject appear to be typical of
the region and adequate to support development.
FLOOD ZONE The site lies within Zone AE. This information was obtained from
the National Flood Insurance Rate Map Number 120650 0316 L
dated September 11, 2009.
FLOOD ZONE DEFINITION The base floodplain where base flood elevations are provided. AE
Zones are now used on new format FIRMs instead of A1-A30
Zones. In communities that participate in the NFIP, mandatory
flood insurance purchase requirements apply to this zone.
OTHER HAZARDS None Known
ENCUMBRANCES AND EASEMENTS There are no known adverse encumbrances or easements. Please
reference Limiting Conditions and Assumptions.
ENVIRONMENTAL HAZARDS There are no known adverse environmental conditions on the
subject's site. Please reference Limiting Conditions and
Assumptions.
WETLANDS AND WATERSHEDS No wetlands were observed during our site inspection.
59
Jungle Island Hotel
ADEQUACY OF UTILITIES The subject's utilities are typical and adequate for the market
area.
PUBLIC ELECTRICITY FPL
WATER SUPPLY TYPE City water
SEWER TYPE City sewer
POLICE AND FIRE PROTECTION City of Miami
CONCLUSION The subject site is considered well-suited to functionally support
its current use.
AERIAL PHOTOGRAPH
60
Jungle Island Hotel
61
Jungle Island Hotel
17-216-02 ZONING
The subject is zoned "CS," Civic Space, under the jurisdiction of the City of Miami.
ZONE DETAILS
ZONING CODE CS
ZONING DESCRIPTION Civic Space
PERMITTED USES Civic/Public Use
ZONED DENSITY/FAR 3.3
PARCEL DETAILS
CURRENT USE Parking Garage
CURRENT USE LEGALLY CONFORMING? is a legal and conforming use of the site.
BUILDABLE SF 346,000
ALLOWABLE FAR 3.32
Based on a review of the subject in relation to the CS zoning district, it appears the subject is a legal and
conforming use of the site. However, we are not experts in determining if a property is fully in compliance
with all aspects of the zoning code. We suggest interested parties obtain a letter of zoning compliance from
the City of Miami to determine if the subject is zoning compliant.
62
Jungle Island Hotel
17-216-02 TAXES
The subject is assessed by the Miami-Dade County property appraiser’s office, and is taxed by the City of
Miami.
The following table summarizes the subject’s assessment and taxes:
Parcel ID 01-3231-000-0014
Assessment Year 2016
School Total Taxable Assessment $22,214,837
Total Taxable Assessment $7,007,280
School Millage Rate $7.3220
Millage Rate $14.5036
Total Tax Rate $21.8256
Tax Rate Per $1,000.00
Taxes $264,288
Special Assessments $0
Taxes with Special Assessments $264,288
Early Payment Discount Percentage 4%
Total Taxes $253,716
63
Jungle Island Hotel
17-216-02 ANALYSIS OF DATA AND CONCLUSIONS
IDENTIFICATION OF A LIKELY BUYER

The most likely buyer of a property such as the subject would be a large regional or national investor who
would recognize the long-term economic potential of the property as market conditions improve. These
factors will be considered in the valuation of the subject.
VALUATION METHODOLOGIES
The subject’s market rental rate will be determined via two methods.
The first method will estimate the gross rental income that will be generated by the hotel. A market derived
factor will then be applied to determine the appropriate rental rate for the underlying land.
The second method will estimate the value associated with the additional development rights. This method
will analyze the amount that developers have paid for the development rights at other sites in the subject’s
area. Once a market derived price/FLR has been determined, we will then multiply that value by a market
derived land capitalization rate, to determine an appropriate rental rate for the subject.
As of the date of the report, the subject is vacant land available for development. For the purposes of this
report, the market rent will be determined based on the use of the subject as a mixed use development.
64
Jungle Island Hotel
17-216-02 LAND RENT METHOD 1
The first method will estimate the gross rental income that will be generated by the two components. A
market derived factor will then be applied to determine the appropriate rental rate for the underlying land.
First we will estimate the revenue that can expect to be generated from the additional hotel rooms. Then
we will estimate the revenue that can expect to be generated from the retail space.
Hotel Rooms
Within the Market Analysis, we estimated the total revenue from the hotel operations will be as follows:
Luxury Hotel Revenue $25,550,000
Percentage Rents
We have researched other municipality owned properties (land) that are leased to the developer or owner
of the improved property. We are attempting to determine the appropriate percentages to apply to the
subject’s various development components, as percentage rent that will be paid to the City of Miami for
the rights to the underlying site.
Case Study 1
Grove Key Marina and Scotty’s Landing (Restaurant and Marina)
The site is owned by the City of Miami and is leased to a lessee (Grove Key Marina) and a sub-lessee
(Scotty's Landing Bar). In early 2012, the City of Miami published a request for proposals (RFP) for bids on a
new, 40-year lease on the property. A substantial tenant improvement is required in the RFP as the city
seeks a state-of-the-art marina and bar. The winning bidder must make required minimum renovations
including renovating the hangars, pavement, and bar kitchen, and repairing the dock and seawall. In
exchange, the lease would be long-term, 40 years, with a 10-year renewal option.
Per the RFP, the successful proposer must pay a minimum base rent and percentage rent. Some of the
City's proposed lease details are as follows:
Minimum Annual Rent: $500,000 and:
Percentage Rent:
Marina Operations Minimum 15% of gross revenue
Bar/Restaurant Sales Minimum 10% of gross revenue
Marine Fueling Facility Minimum 10% of gross revenue
The RFP call for substantially higher minimum annual rent and a higher percentage of sales from the
revenue generating components on the site.
Case Study 2
Biscayne Landing (Mixed Use Project Retail/Office/Residential)
The site is owned by the City of North Miami and is leased to a lessee (Oleta Partners, LLC). The lease was
negotiated in 2012 and is based on a proposed build out of the 183.8 acre site with approximately 900,000
SF of retail, hotel, residential and recreational space. The ground lease is for 99 years, NNN, with increases
in the base rental rate of 15% every ten years. The lease calls for development deadlines for the
construction of the project, a public park and community center and future rights to developable land with
participation in the revenues from this property. Some of the lease details are as follows:
Base Rent: $1,500,000
Percentage Rent:
Residential Revenues 1.75% of gross revenue
Retail Revenues 1.75% of gross revenue
Hotel Revenues 2.25% of gross revenue
Sales (Condo or ALF Units) 3.25% or gross revenues
65
Jungle Island Hotel
Case Study 3
Village of Merrick Park (Mixed Use Retail/Office/Residential)
This is a mixed use project on an 18± acre site located in the City of Coral Gables. Coral Gables has a 99
year ground lease in place with the developer of the property with a base rent of $300,000 with increases
of $50,000 every 10 years. The city receives 10% of the property’s net cash flow as percentage rent and has
received approximately $90,000 to $100,000 in additional rent from this percentage rent clause. The city is
also entitled to any proceeds from any sale or refinance in the amount of 10% of the net proceeds.
The residential component was subleased to a residential developer at the onset of the project. The city is
entitled to only the revenues from the retail and office components.
Case Study 4
Biltmore Hotel (Hotel)
There is a 99 year ground lease in place between the City of Coral Gables and the current hotel operator
that calls for rental payments of 3.5% of net hotel revenues.
Case Study 5 (Subject)
Jungle Island (Entertainment)
This property is a tourist attraction that is situated on a waterfront site on Watson Island, off of downtown
Miami’s mainland. The site is approximately 18.61 acres and is developed with a $50,000,000 attraction and
convention venue. The development was built in 2003 with the City of Miami providing the underlying site,
via a ground lease for 60 years, with options. The lease calls for base yearly payments of the greater of
$500,000 or 5.0% of gross revenues up $20,000,000 and 6% over that break point from the attraction and
other revenue generating sources within the attraction.
Jungle Island negotiated in the past for 13.0 more acres adjacent to the Jungle Island property to develop
with a retail and hotel component. They offered fixed rental payments during the construction period with
5% of gross revenues after the completion of the construction. If approved, after the completion of the
construction, the base rent for the entire property would increase to $750,000 and the existing 60 year
lease will roll into a 99 year lease.
Case Study 6
Bayside Marketplace (Retail and Parking Garage)
This property is an 18.72 acre site that is developed with an open-air festival retail center with 1,200
parking spaces in two five-story parking structures. The site features a waterfront location in Miami’s CBD.
The City of Miami owns the underlying land and leased the site to Bayside Center Partnership in 1985.
There is a 45 ground lease, with two 15-year options, between the City of Miami and Bayside Center
Partnership that calls for a base annual rent of the greater of $1,540,000. In addition, the developer will pay
6% of gross receipts over the initial breakpoint of $25,659,000. The Skyrise Tower rent will be $1,059,082
per year. In addition, the developer will pay 1% of gross receipts over the initial breakpoint of $55,000,000.
There is a separate lease on the parking structure that calls for a similar lease term with a 675,000, plus an
additional $241,920 base rent upon completion of the second garage. These rents can increase at the CPI
each year.
66
Jungle Island Hotel
Case Study 7
The Palace at Coral Gables (Residential)
The Palace at Coral Gables is a 240-unit senior housing community located just south of Miracle Mile in
Coral Gables. This 0.75± acre site is leased from the City of Coral Gables for a base rent of $237,500
annually with percentage rents of 2.0% of property revenues. The city is entitled to 10% of any net
proceeds from any sale or refinance of the property.
Additional Comparables
With regards to the subject’s rental rate, it is noted that there are a number of City of Miami waterfront
developments in Miami-Dade County that are leased with the property’s rental rate stipulated on a base
amount, base amount plus percentage rent, percentage rent or the greater of percentage rent or base rent.
Detailed as follows is information regarding several comparables within the market.
Comparable Base Rent % Rent
Confidential $320,000 and 10% of gross receipts
Bayshore – Monty’s $277,586 and 15% of gross receipts
Miami Yacht Club $49,080 and 9.0% of gross revenue in excess of $380,000
Miami Outboard Club $35,004 and 10.0% of Gross revenue in excess of $120,000 for
restaurant
Coconut Grove Sail Club $30,000 or 7.5% of gross revenues
Grove Harbour Marina $550,000 or 15% of gross revenue for marina
10% of gross revenue for boatyard
10% of gross revenue for restaurants
5% of gross revenue for service/fuel
Rickenbacker $360,000 and 15.00% of gross revenues for wet slips
12.00% of gross revenues for dry slips
Increasing by 1% after 4.5 years
The Rusty Pelican lease, along the Rickenbacker Causeway, stipulates that it will pay base rent of
$360,000/year plus a variable percentage rate, starting at 2.5% and rising to a maximum of 8% of gross
revenues over sales of $12,000,000.
The New Spanish Concepts lease states that they will pay a minimum annual rent of $57,375 plus 11% over
a $2,200,000 breakpoint.
CONCLUSION
We have concluded that, in general, percentage rents are based on the gross retail revenues generated by a
property rather than the net operating income. The calculation of the gross retail rent is generally a less
subjective figure as the number represents the total collections of rent by the property owner, and does
not consider operating expenses or any other type of obligations.
The comparables offer a wide array of rental scenarios, with some tenants paying a percentage of gross
revenue, others paying a percentage of net revenue. Some other tenants pay a base rent, plus percentage
rent, or a base rent plus percentage rent over a breakpoint. Some other tenants pay varying percentage
rents based on the type of use, typically with a higher percentage for higher margin activities. For parcels
where the lessee is required to incur significant construction costs, the rents tend to be lower than for
properties where the improvements already are in existence, or little or no improvements are required.
67
Jungle Island Hotel
One of the most recent lease comparable properties is the subject Jungle Island, who is offering to pay 5%
of gross revenue after the completion of construction. They plan to operate retail space and hotel rooms on
the leased land. This is the developer’s offer, and would represent the minimum percentage rent that
would be expected in the market. The upper end of the comparables would be the Rusty Pelican lease
which stipulates rents going up to 8% of gross revenue, for sales above $12,000,000/year. Based on these
comparables, we conclude to a rental rate in the range of 5% to 8%.
The subject will require a significant amount of input by the land lessee with the construction of the hotel
buildings and the retail space. The property will not generate any income without the developer’s
construction expenditures. Therefore, due to the high level of cost incurred by the developer, we conclude
the appropriate rental rate for the underlying land would be toward the lower end of the previously
established range.
We have concluded that it would be market oriented for the tenant to pay a percentage of gross revenues
of between 5% and 6%. We conclude to 5.50% of gross revenue. Many leases are established with a
minimum base rent, plus an additional percentage after the property achieves success in the market. We
will conclude to a structure with an established base rent, plus an additional rent that is based on total
percentage of gross sales.
We conclude the base rent for the subject would equate to 5.50% of gross revenue, plus percentage rent
equal to 1% of gross revenue over a breakeven point of $25,550,000. The base rental revenue is assumed to
grow at CPI, every 5 years. Base lease term is 99 years with a reevaluation every five years.
METHOD 1 - RENT CONCLUSION
Hotel Rooms
Previously, the total revenue associated with the hotels rooms were projected as follows:
Rooms 1 300
ADR $175.00 $175.00
Occupancy 80.00% 80.00%
RevPAR $140.00 $140.00
68
14-200-02 Island Gardens LAND VALUE
LAND VALUATION
The land, as if vacant, is valued by direct sales comparison, in which sales of comparable sites within the
subject's area are analyzed in context with the subject's site. Adjustments are made to compensate for
differences between the submitted sales data and the subject for such factors as location, size, shape,
topography, utility, and marketability, etc. Since the subject is zoned for commercial use, commercial land
sales are presented to arrive at a $/FLR for the subject. In an effort to locate comparable land sales, a
search throughout the subject’s area was conducted. The presented sales are valid indicators of land values
in the subject’s area. Information pertaining to these sales has been verified by the buyer, seller, broker or
other sources considered reliable and having knowledge of the particular transaction when available.
Land Comparable 1
Name Marlborough House Address 5775 Collins Avenue
City Miami Beach County Miami-Dade County
State FL Zip 33140
Price $87,773,644 Date 6/1/16
Grantor Various Grantee CCC Miami Beach, LLC
Recordation Multiple Deeds were Tax Parcel ID Multiple folio numbers
Property Rights Fee Simple Estate Financing Cash to Seller
Conditions of Sale Assemblage Verification Buyer
Price Per Land SF $1,379.26 Price Per Acre $60,118,934
Price Per FAR $459.75 Price Per Proposed Unit $1,253,909.00
Site
Land SF 63,638 Land Acres 1.46
Topography Level and at street grade Shape Rectangular
Required Site Work Demolition Utilities All Available
Zoning RM-3 Proposed Use Luxury Condominium
Zoning Type Multifamily Zoned Density NA
Buildable SF 190,914 Allowable FAR 3.00
No. of Proposed Units 70 Proposed Unit Type Condominiums
Road Frontage Collins Avenue View Ocean
Water Frontage 225 feet Effective Water Frontage NA
Comments
This sale consists of the purchase of all of the 107 individual condominium units located within the Marlborough House.
The buyer intends on demolishing the building in order to construct a 70-unit luxury condominium building. The process of
negotiating with the unit owners to assemble all of the condominium units within this building was approximately 12
months.
69
Land Comparable 2
Name Bath Club Estates Address 6747 Collins Avenue
City Miami Beach County Miami-Dade
State FL Zip 33141
Price $38,500,000 Date 10/15/15
Grantor 6747 Collins Development, Grantee CCCC Miami Beach, LLC
Recordation 29816-4473 Tax Parcel ID 02-3211-007-0430
Conditions of Sale Arm's length Verification Knowledgeable Third Party
Price Per Land SF $924.53 Price Per Acre $40,104,167
Price Per FAR $308.18 Price Per Proposed Unit $641,667.00
Site
Required Site Work Typical Clear and Grade Utilities All Available
Zoning RM-3 Proposed Use Condominiums
Zoning Type Multifamily Zoned Density 62.50
Road Frontage 136' View Ocean
Comments
This transaction involved parcels with direct ocean frontage, east of Collins Avenue. The buyer intends to develop the
parcels with 60 residential units. Prior approvals for the site allowed for 124,929 SF of development, an FAR of 3.00.
70
Land Comparable 3
Name The Winter Garden Condo Address 8955 Collins Avenue
City Surfside County Miami-Dade
State FL Zip 33154
Price $39,975,000 Date 6/1/15
Grantor Various Grantee ASRR Suzer 8955, LLC
Recordation Various Tax Parcel ID 14-2235-009-0001
Conditions of Sale Assemblage Verification Knowledgeable Third Party
Price Per Land SF $1,239.53 Price Per Acre $54,020,270
Price Per FAR $379.71 Price Per Proposed Unit $2,498,438.00
Site
Zoning H120 Proposed Use Condominiums
Road Frontage 100 feet View Ocean
Comments
This transaction represents the purchase of 41 individual condominium units within a building that was built in 1952.
There is an associated parcel for parking on the west side of Collins, directly across the street. According to plans for the
project submitted thus far, the existing building will be demolished to make way for a 16-unit residential condominium
building which will have a total of 105,277 SF of building area and 77,977 SF of net saleable residential area.
71
Land Comparable 4
Name Biscayne 27 Address 2701 Biscayne Boulevard
City Miami County Miami-Dade County
State FL Zip 33137
Price $30,000,300 Date 5/6/16
Grantor Various Grantee Biscayne Apartments LLC
Recordation 30065- Tax Parcel ID 01-3230-103-0010
Conditions of Sale Assemblage, Redevelopment Verification Knowledgeable Third Party
Site
Topography Level and at street grade Shape Irregular
Zoning T6-36a L Proposed Use Apartments
Buildable SF 1,078,476 Allowable FAR 12.00
No. of Proposed Units 330 Proposed Unit Type Apartments
Road Frontage NA View Street
Water Frontage NA Effective Water Frontage NA
Comments
This is an assemblage of 15 parcels that have since been combined under one folio number. The buyer plans to construct a
330-unit, eight-story residential project with a 380-space parking garage and 7,000 SF of retail.
72
Land Comparable 5
Name Latin Café Address 2501 Biscayne Boulevard
State FL Zip 33137
Price $13,000,000 Date 2/17/16
Grantor Latin Group II, Inc. Grantee 35 Oak US 4, Inc.
Property Rights Leased Fee Estate Financing Cash to Seller
Conditions of Sale Sale Leaseback Verification Seller
Site
Zoning T6-36A-O Proposed Use Hold for investment
Zoning Type Commercial Zoned Density 150.00
No. of Proposed Units 90 Proposed Unit Type Apartments
Road Frontage NA View Street
Water Frontage NA Effective Water Frontage NA
Comments
This is the sale of a restaurant, Latin Café, located on the northeast corner of Biscayne Boulevard and NE 25th Street in
Miami, FL. The seller is leasing back the property for six years. The property is located across Biscayne Boulevard from a 20-
story, 156-unit mixed-use apartment/retail building that is under construction. The property sold for land value and the
restaurant is an interim use. The density and FAR are based on the zoning.
73
Land Comparable 6
Name 3023 Biscayne Boulevard Address 3023 Biscayne Boulevard
State FL Zip 33137
Price $5,900,000 Date 2/2/15
Grantor Daniel T. and Carmen Grantee Biscayne Edge, Inc.
Recordation 29494-4489 Tax Parcel ID 01-3230-036-0020 and 0030
Conditions of Sale Arm's Length Verification Knowledgeable Third Party
Site
Zoning T6-36A-O Proposed Use Mixed-Use
Zoning Type Commercial Zoned Density 150 units per acre
Road Frontage Biscayne Boulevard View Street
Water Frontage No Effective Water Frontage NA
Comments
This parcel is located along the east side of Biscayne Boulevard between NE 30th Street and NE 31st Street. The site is
currently improved with a Pronto Supermarket and is being leased until July 31, 2017. The price per unit and price per FAR
are based on the zoning.
74
Land Comparable 7
Name 3200 Biscayne Boulevard Address 3200 Biscayne Boulevard
State FL Zip 33137
Price $4,500,000 Date 6/3/15
Grantor 3200 Biscayne, LLC Grantee TBD Harbor 265, LLC
Conditions of Sale Arm's Length Verification Knowledgeable Third Party
Site
Zoning T6-36A-O Proposed Use Mixed-Use
Zoning Type Commercial Zoned Density 150 units per acre
Road Frontage Biscayne Boulevard View Street
Water Frontage No Effective Water Frontage NA
Comments
This vacant site is located at the northwest corner of Biscayne Boulevard and NE 32nd Street. The buyer's do not have any
definitive plans on what the site will be developed with. The price per unit and price per FAR are based on the zoning.
75
LAND SALES SUMMARY
Comp Address Price Zoning No. of Proposed Units Allowable FAR Land SF Price per Land SF
City Date Zoning Type Price Per Proposed Unit Price per FAR Land Acres Price per Acre
1 5775 Collins Avenue $87,773,644 RM-3 70 3.00 63,638 $1,379.26
1 Miami Beach 06/01/2016 Multifamily $1,253,909 $459.75 1.46 $60,118,934
2 6747 Collins Avenue $38,500,000 RM-3 60 3.00 41,643 $924.53
2 Miami Beach 10/15/2015 Multifamily $641,667 $308.18 0.96 $40,104,167
3 8955 Collins Avenue $39,975,000 H120 16 3.26 32,250 $1,239.53
3 Surfside 06/01/2015 Multifamily $2,498,438 $379.71 0.74 $54,020,270
4 2701 Biscayne Boulevard $30,000,300 T6-36a L 330 12.00 89,873 $333.81
4 Miami 05/06/2016 Multifamily $90,910 $27.82 2.06 $14,563,252
5 2501 Biscayne Boulevard $13,000,000 T6-36A-O 90 12.00 25,951 $500.94
5 Miami 02/17/2016 Commercial $144,444 $41.75 0.60 $21,821,124
LAND SALES COMPARISON MAP
LAND SALES ANALYSIS

To derive an estimated value of the site, as if vacant, we analyzed the land comparables and have made
adjustments for varying characteristics.
Property Rights Conveyed
The property rights conveyed for each sale are shown in the adjustment grid. The subject is valued in this
report on the basis of a fee simple estate. No adjustments for property rights conveyed were made to the
sales.
76
Financing Terms
The financing terms for each sale are shown in the adjustment grid. The subject is valued in this report on
the basis of a cash to seller transaction. No adjustments for financing terms were made to the sales.
Conditions of Sale
The conditions of sale for each sale are shown in the adjustment grid. The subject is valued in this report on
the basis of an arm's length transaction. No adjustments for conditions of sale were made to the sales.
Market Conditions
In terms of an adjustment for market conditions, from the sales shown, it is somewhat subjective to
determine an exact adjustment. We have applied a 0% adjustment to each comparable, annualized from
the date of each sale to June 19, 2017.
Location
The adjustment for location reflects the trend that properties in areas of active growth and development,
as well as those which offer good accessibility in terms of frontage on major thoroughfares, should sell for a
higher price per SF than properties which do not offer these attributes, with all other factors held constant.
The subject is located on Watson Island along the MacArthur Causeway, which travels to Miami Beach.
Sales 1, 2 and 3 are all ocean front parcels located in Miami Beach. All are considered superior in location to
the subject and are adjusted downward.
Sales 4, 5, 6 and 7 are all located along Biscayne Boulevard in the Edgewater District of Miami. These sales
are all considered inferior in location and are adjusted upward.
Size
In terms of size, it is noted that smaller parcels typically sell for a higher price per SF than larger parcels,
with all other factors held constant. The subject consists of 2.39 acres or 104,093 SF.
Sales 1 and 4 are similar in size to the subject and are not adjusted. Sales 2, 3, 5, 6 and 7 are all smaller than
the subject and are adjusted downward.
Zoning
The subject’s site is zoned "CS", Civic Space, under the jurisdiction of City of Miami, FL.
The only information provided in regard to the construction of the hotel is that it will have 300 rooms, plus
10,000 SF of retail space and 30,000 SF of meeting/convention space. The hotel is reportedly to be
constructed where the current parking garage exists at the south side of the site.
77
The following charts show how we calculated the site of the improvements.
Hotel Building SF # of Rooms SF/Room
Courtyard Marriott Downtown 187,096 233 803
Destination YVE 324,407 243 1,335
Holiday Inn Port of Miami 127,739 200 639
Intercontinental 465,000 641 725
Hilton Downtown 620,552 528 1,175
Averages 1,724,794 1,845 935
Subject Building SF # of Rooms SF/Room

Hotel 195,000 300 650
Hotel Ancillary 58,500 30%
Retail 10,000
Meeting Space 30,000
Garage 52,500 150 350
Totals 346,000 1,153
Lot Size 104,093
Floor Lot Ratio 3.32
Sales 1, 2 and 3 are all similar in FLR to the subject and are not adjusted. Sales 4, 5, 6 and 7 all have higher
FLR’s and are adjusted upward on a price/FLR basis.
Required Site Work
The subject is valued as if vacant and available for development. No adjustments are made to the sales.
Shape
The shape of the subject’s site is irregular in shape. No adjustments are made to the sales.
View Visibility/Exposure
The view visibility of the subject’s site has water frontage and is good. Sales 1, 2 and 3 have ocean frontage
and are adjusted downward. Sales 4, 5, 6 and 7 all have street frontage and are adjusted upward.
LAND SALES ANALYSIS CONCLUSION

The previously described adjustments are summarized in the following grid. The percentage adjustments
are used to show the emphasis placed on each adjustment, and are not based on a paired sales analysis.
78
LAND SALES ADJUSTMENT GRID
Land Analysis Grid Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7
Name Jungle Island Hotel Marlborough House Bath Club Estates The Winter Garden Biscayne 27 Latin Café 3023 Biscayne 3200 Biscayne
Address 1111 Parrot Jungle 5775 Collins Avenue 6747 Collins Avenue 8955 Collins Avenue 2701 Biscayne 2501 Biscayne 3023 Biscayne 3200 Biscayne
City Miami Miami Beach Miami Beach Surfside Miami Miami Miami Miami
State FL FL FL FL FL FL FL FL
Date 6/1/2016 10/15/2015 6/1/2015 5/6/2016 2/17/2016 2/2/2015 6/3/2015
Price $87,773,644 $38,500,000 $39,975,000 $30,000,300 $13,000,000 $5,900,000 $4,500,000
Buildable SF 346,000 190,914 124,929 105,277 1,078,476 311,412 242,880 192,864
Price per SF $459.75 $308.18 $379.71 $27.82 $41.75 $24.29 $23.33
Transaction Adjustments
Property Rights Fee Simple Estate Fee Simple Estate 0% Fee Simple Estate 0% Fee Simple Estate 0% Fee Simple Estate 0% Leased Fee Estate 0% Fee Simple Estate 0% Fee Simple Estate 0%
Financing Cash to Seller Cash to Seller 0% Cash to Seller 0% Cash to Seller 0% Cash to Seller 0% Cash to Seller 0% Cash to Seller 0% Cash to Seller 0%
Conditions of Sale Arm's Length Assemblage 0% Arm's length 0% Assemblage 0% Redevelopment 0% Sale Leaseback 0% Arm's Length 0% Arm's Length 0%
Adjusted Price per SF $459.75 $308.18 $379.71 $27.82 $41.75 $24.29 $23.33
Market Trends Through 6/19/2017 0% 0% 0% 0% 0% 0% 0% 0%
Location Good Superior Superior Superior Inferior Inferior Inferior Inferior
% Adjustment -50% -30% -30% 25% 25% 25% 25%
$ Adjustment ($229.88) ($92.45) ($113.91) $6.95 $10.44 $6.07 $5.83
Land Acres 2.39 1.46 0.96 0.74 2.06 0.60 0.46 0.37
% Adjustment 0% -10% -10% 0% -10% -10% -10%
$ Adjustment $0.00 ($30.82) ($37.97) $0.00 ($4.17) ($2.43) ($2.33)
Allowable FAR 3.32 3.00 3.00 3.26 12.00 12.00 12.00 12.00
% Adjustment 0% 0% 0% 20% 20% 20% 20%
$ Adjustment $0.00 $0.00 $0.00 $5.56 $8.35 $4.86 $4.67
Required Site Work Demolition Demolition Typical Clear and Typical Clear and Demolition Demolition Demolition Typical Clear and
Grade Grade Grade
% Adjustment 0% 0% 0% 0% 0% 0% 0%
$ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Shape Irregular in shape Rectangular Rectangular Rectangular Irregular Rectangular Rectangular Rectangular
% Adjustment 0% 0% 0% 0% 0% 0% 0%
$ Adjustment $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
View Water Ocean Ocean Ocean Street Street Street Street

% Adjustment -25% -25% -25% 25% 25% 25% 25%
$ Adjustment ($114.94) ($77.04) ($94.93) $6.95 $10.44 $6.07 $5.83
Net Adjustments -75% -65% -65% 69.96% 60.03% 59.98% 60%
Gross Adjustments 75% 65% 65% 69.96% 80.01% 79.99% 79.97%
Net Adjustments -75% -65% -65% 69.96% 60.03% 59.98% 60%
Gross Adjustments 75% 65% 65% 69.96% 80.01% 79.99% 79.97%
LAND VALUE CONCLUSION

The comparables show a price/FLR range of $23.33/FLR to $459.75/FLR on an unadjusted basis, an average
of $180.69/FLR.
The comparables show a price/FLR range of $37.33 /FLR to $132.90 /FLR on an adjusted basis, an average
of $78.00 /FLR.
The subject’s allowable FLR of 3.32 is at the lower end of the range indicated by the sales which would
typically lead to a price per FLR at the higher end of the range.
We have placed primary emphasis on Land Sales 1, 2 and 3 which involved parcels intended for similar FLR.
These sales indicated Price/FLR, after adjustments of $114.93, $107.87 and $132.90. Secondary emphasis
was placed on Sales 4, 5, 6 and 7, which have the higher FLRs, and have an adjusted price/FLR range from
$37.33 to $66.81.
79
We are of the opinion that an appropriate FLR value for the subject should be between $65/FLR to
$100/FLR. Due to the subject’s unique location and the types of development that been taking place in the
subject’s immediate market, including the proposed development on the former Miami Herald Site, the
World Center Miami site, the proposed addition to Jungle Island, and the continued revitalization of the
Miami CBD, we have concluded to the upper end of the range. This is based on the subject’s location,
access and visibility and quality and condition of the surrounding neighborhood. Therefore, we conclude
the subject site has a value of $80.00/FLR.
Now that we have determined the value associated with the FLR that will be afforded the site, we can apply
a market derived land capitalization rate to determine an appropriate rental rate for the overall site.
80
Jungle Island Hotel
GROUND LEASE CAPITALIZATION RATE

In order to support an appropriate first year capitalization rate for the subject, we looked at comparable
ground lease comparables. The following are ground lease comparables in the South Florida area. Exact
locations for these ground leases are confidential. We have attempted to include recent transactions but
due to the lack of directly comparable data, we included research from as far back as 2010.
GROUND LEASE COMPARABLES
Comp Lessee Lease Date SF Lease Term Lease Type Rent/SF
1 Family Dollar 21067 Familky Dollar 1/1/2013 41,034 10 Years NNN $4.34
Miami, FL NA NA NA NA NA NA
2 14181 SW 8 ST Wendy's 1/1/2015 30,971 20 Years NNN $2.80
1 Miami, FL NA NA NA NA NA NA
3 CVS SW 8th St CVS 6/1/2012 95,396 25 Years NNN $7.53
4 CVS NW 87th CVS 1/1/2016 47,530 25 Years NNN $7.27
1 Doral, FL NA NA NA NA NA NA
5 CVS 79 Street 21071 CVS 1/1/2015 61,294 25 Years NNN $7.17
6 Taco Bell West Taco Bell 1/1/2009 15,945 20 years NNN $9.28
Comp Address Recordation Price Land SF NRA Price Per Land SF

City Year Built Date LTB Ratio Price per SF NOI/SF Cap Rate
1 15715 SW 72nd Street 30555-3840 $3,480,000 15,670 2,132 $222.08
1 Miami 2016 04/28/2017 7.35 $1,632.27 $69.37 4.25%
2 3750 NW 87th Ave 30387-3336 $7,100,000 47,530 16,252 $149.38
2 Doral 2016 01/17/2017 2.92 $436.87 $21.27 4.87%
3 1177 SW 8th Street 30161-3315 $13,100,000 95,396 22,335 $137.32
3 Miami 2012 07/21/2016 4.27 $586.52 $7.54 5.49%
4 14180 SW 8th Street 30098-4409 $2,000,000 30,971 3,191 $64.58
4 Miami 2004 05/26/2016 9.71 $626.76 $27.15 4.33%
5 2151 NW 79th St 29887-0029 $2,457,000 41,033 9,741 $59.88
5 Miami 2013 12/04/2015 4.21 $252.23 $18.26 7.24%
6 561 NE 79th St 29534-2485 $9,770,000 61,294 15,945 $159.40
6 Miami 2015 01/01/2015 3.84 $612.73 $27.57 4.50%
Market Index
We have also included information from a national market survey of sites that are under ground lease with
particular property types.
81
Jungle Island Hotel
Capitalization Rate Conclusion
Based on the comparables, we have concluded that an appropriate overall rate for the subject should be at
the lower end of the range due to the proposed quality of the development and the strength of the
subject’s market, for retail and hotel. After the construction completion, the income flow from the
components is projected to rise annually with CPI based increases in rental rates and improving levels of
occupancy. There is significant potential for rising income to the investor based on the proposed terms of
the lease. Therefore, we have concluded to an overall rate toward the lower end of the range indicated by
the comparables.
Based on the comparables and the adjustments made to them, we conclude to a value in the range of
$70.00 /SF to $100.00 /SF. We conclude to $80.00/SF.
Land Value Conclusion $80.00 /SF
Multiplied by Subject Size 346,000 SF
Indicated Land Value $27,680,000
We have concluded to an overall rate for the subject of 5.00% which is in line with the comparables. We
have calculated a market rental rate for the subject as follows:
The land value of the subject is calculated as follows:
Rent/FLR $4.00
Site Size 104,093
Rent/SF Land $13.30
The base rental revenue is assumed to grow at CPI, every 5 years. Base lease term is 99 years with a
reevaluation every five years. All rent conclusions assume annual increases at CPI and also assume the
developer (Jungle Island) would be responsible for the payment of all ad valorem and non ad valorem
property taxes and assessments levied on the property.
82
Jungle Island Hotel
17-216-02 RECONCILIATION AND FINAL VALUE
The purpose of the appraisal is to provide our opinion of the fair market rent with any overages and
percentage rents of the unencumbered fee simple interest in the underlying land.
Rooms 1 300
ADR $175.00 $175.00
Occupancy 80.00% 80.00%
RevPAR $140.00 $140.00

Rent/FLR $4.00
Site Size 104,093
Rent/SF Land $13.30
The subject’s market rental rate was determined via two methods. The first method estimated the income
that will be generated by the various components. In order to determine an estimate of the revenue that
would be generated by the hotel, we surveyed similar type hotel facilities. After concluding to a projected
average rate, we deducted an appropriate vacancy factor, to arrive at a projected revenue of hotel.
Once the projected revenue was determined for the hotel, we then presented data pertaining to the
percentage rental rates that are paid at other properties located on leased land in South Florida. After
analyzing these comparables, we established a reasonable factor (a percentage rent) that would be applied
to the projected revenue. This same percentage rental factor would also be applied to the gross revenue
that either component would generate over and above the projected base revenue. Our conclusion
assumes the payment of a base rent, increased annually at CPI, plus a percentage rent.
The second method estimated the value associated with the development rights. This method analyzed the
price/FLR that developers have historically paid for the development rights at other sites in the subject’s
area. Once a market derived price/FAR has been determined, then a value associated with the subject’s
additional rights was calculated. We then multiplied that value/FLR by a market derived land capitalization
rate, to determine an appropriate rental rate for the subject.
After considering both methods, we conclude the percentage rent method (Method 1) is more appropriate
when determining the market rent for the additional hotel rooms and retail space. This method allows for a
base rent, plus additional rent in the future, in the event that revenues are greater than are currently
projected. Given the long term nature of most land leases, this method is also most common in the
marketplace. The second method, which estimated rent based on the current value of development rights
($/FLR) was used as a check on the first method, and serves as a test on the conclusions reached in the first
method.
83
Jungle Island Hotel
17-216-02 RECONCILIATION AND FINAL VALUE
After an inspection of the subject, and analysis of pertinent physical and economic factors that affect value,
we are of the opinion that the 'as is' fair market rent and terms of the unencumbered fee simple interest
for a proposed 300 room hotel with 10,000 SF of retail space and 30,000 SF of meeting space, to be placed
in the southern portion of Jungle Island, to be paid to the City by Jungle Island, as of June 19, 2017, is:
Rent $1,390,000
Term 99 Years
84
Jungle Island Hotel
17-216-02 ADDENDA
Jungle Island Hotel
17-216-02 GLOSSARY OF VALUATION TERMS
Term Definition Source

Air Rights The right to undisturbed use and control of designated Appraisal Institute, The
air space above a specific land area within stated Dictionary of Real
elevations. Air rights may be acquired to construct a Estate Appraisal, 6th
building above the land or building of another or to Ed. (Chicago: Appraisal
protect the light and air of an existing or proposed Institute, 2015)
structure on an adjoining lot. Air rights do not always
include development rights. See also transferable
development right (TDR).
As Is Market Value The estimate of the market value of real property in its Appraisal Institute, The
current physical condition, use, and zoning as of the Dictionary of Real
appraisal date. (Interagency Appraisal and Evaluation Estate Appraisal, 6th
Guidelines) Note that the use of the “as is” phrase is Ed. (Chicago: Appraisal
specific to appraisal regulations pursuant to FIRREA Institute, 2015)
applying to appraisals prepared for regulated lenders in
the United States. The concept of an “as is” value is not
included in the Standards of Valuation Practice of the
Appraisal Institute, Uniform Standards of Professional
Appraisal Practice, or International Valuation Standards.
Band of A technique in which the capitalization rates attributable Appraisal Institute, The
Investment to components of an investment are weighted and Dictionary of Real
combined to derive a weighted-average rate attributable Estate Appraisal, 6th
to the total investment (i.e., debt and equity, land and Ed. (Chicago: Appraisal
improvements). Institute, 2015)
Condominium A multiunit structure, or a unit within such a structure, Appraisal Institute, The
with a condominium form of ownership. Dictionary of Real
Estate Appraisal, 6th
Ed. (Chicago: Appraisal
Institute, 2015)
Debt Coverage The ratio of net operating income to annual debt service Appraisal Institute, The
Ratio (DCR) (DCR = NOI/IM), which measures the relative ability of a Dictionary of Real
property to meet its debt service out of net operating Estate Appraisal, 6th
income; also called debt service coverage ratio (DSCR). A Ed. (Chicago: Appraisal
larger DCR typically indicates a greater ability for a Institute, 2015)
property to withstand a reduction of income, providing
an improved safety margin for a lender.
Deferred Depreciation is the difference between the market value Appraisal Institute, The
Maintenance of an improvement and its reproduction or replacement Appraisal of Real
th
cost at the time of appraisal. The depreciated cost of the Estate, 14 Ed.
improvement can be considered an indication of the (Chicago, Illinois:
improvement's contribution to the property's market Appraisal Institute;
value. 2013)
Jungle Island Hotel

Effective Gross The anticipated income from all operations of the real Appraisal Institute, The
Income (EGI) estate after an allowance is made for vacancy and Dictionary of Real
collection losses and an addition is made for any other Estate Appraisal, 6th
income. Ed. (Chicago: Appraisal
Institute, 2015)
Effective Gross The ratio between the sale price (or value) of a property Appraisal Institute, The
Income Multiplier and its effective gross income. Dictionary of Real
(EGIM) Estate Appraisal, 6th
Institute, 2015)
Entrepreneurial 1. A market-derived figure that represents the Appraisal Institute, The
Profit amount an entrepreneur receives for his or her Dictionary of Real
contribution to a project and risk; the difference Estate Appraisal, 6th
between the total cost of a property (cost of Ed. (Chicago: Appraisal
development) and its market value (property Institute, 2015)
value after completion), which represents the
entrepreneur’s compensation for the risk and
expertise associated with development. An
entrepreneur is motivated by the prospect of
future value enhancement (i.e., the
entrepreneurial incentive). An entrepreneur who
successfully creates value through new
development, expansion, renovation, or an
innovative change of use is rewarded by
entrepreneurial profit. Entrepreneurs may also
fail and suffer losses.
2. In economics, the actual return on successful
management practices, often identified with
coordination, the fourth factor of production
following land, labor, and capital; also called
entrepreneurial return or entrepreneurial
reward. See also entrepreneurial incentive.
Equity An income rate that reflects the relationship between Appraisal Institute, The
Capitalization Rate one year’s equity cash flow and the equity investment; Dictionary of Real
(RE) also called the cash-on-cash rate, cash flow rate, cash Estate Appraisal, 6th
throw-off rate, or equity dividend rate. (RE = IE/VE, or Pre- Ed. (Chicago: Appraisal
Tax Cash Flow/Equity Invested) Institute, 2015)
Equity Ratio The ratio between the down payment paid on a property Appraisal Institute, The
and its total price; the fraction of the investment that is Dictionary of Real
unencumbered by debt. Estate Appraisal, 6th
Institute, 2015)
Jungle Island Hotel

Excess Land Land that is not needed to serve or support the existing Appraisal Institute, The
use. The highest and best use of the excess land may or Dictionary of Real
may not be the same as the highest and best use of the Estate Appraisal, 6th
improved parcel. Excess land has the potential to be sold Ed. (Chicago: Appraisal
separately and is valued separately. Institute, 2015)
Exposure Time Estimated length of time that the property interest being Uniform Standards of
appraised would have been offered on the market prior Professional Appraisal
to the hypothetical consummation of a sale at market Practice, 2016-2017 Ed.
value on the effective date of the appraisal.
External A type of depreciation; a diminution in value caused by Appraisal Institute, The

Obsolescence negative external influences and generally incurable on Dictionary of Real
the part of the owner, landlord, or tenant. The external Estate Appraisal, 6th
influence may be either temporary or permanent. Ed. (Chicago: Appraisal
Institute, 2015)
Extraordinary An assumption, directly related to a specific assignment, Uniform Standards of
Assumption as of the effective date of the assignment results, which, Professional Appraisal
if found to be false, could alter the appraiser’s opinions Practice, 2016-2017 Ed.
or conclusions. Comment: Extraordinary assumptions
presume as fact otherwise uncertain information about
physical, legal, or economic characteristics of the subject
property; or about conditions external to the property,
such as market conditions or trends; or about the
integrity of data used in an analysis.
Fee Simple Estate Absolute ownership unencumbered by any other interest Appraisal Institute, The
or estate, subject only to the limitations imposed by the Dictionary of Real
governmental powers of taxation, eminent domain, Estate Appraisal, 6th
police power, and escheat. Ed. (Chicago: Appraisal
Institute, 2015)
Gross Building Area 1. Total floor area of a building, excluding Appraisal Institute, The
(GBA) unenclosed areas, measured from the exterior of Dictionary of Real
the walls of the above-grade area. This includes Estate Appraisal, 6th
mezzanines and basements if and when typically Ed. (Chicago: Appraisal
included in the market area of the type of Institute, 2015)
property involved.
2. Gross leasable area plus all common areas.
3. For residential space, the total area of all floor
levels measured from the exterior of the walls
and including the superstructure and
substructure basement; typically does not
include garage space.
Jungle Island Hotel

Gross Leasable Total floor area designed for the occupancy and Appraisal Institute, The
Area (GLA) exclusive use of tenants, including basements and Dictionary of Real
mezzanines; measured from the center of joint Estate Appraisal, 6th
partitioning to the outside wall surfaces. Ed. (Chicago: Appraisal
Institute, 2015)
Highest and Best 1. The reasonably probable use of property that Appraisal Institute, The
Use results in the highest value. The four criteria that Dictionary of Real
the highest and best use must meet are legal Estate Appraisal, 6th
permissibility, physical possibility, financial Ed. (Chicago: Appraisal
feasibility, and maximum productivity. Institute, 2015)
2. The use of an asset that maximizes its potential
and that is possible, legally permissible, and
financially feasible. The highest and best use may
be for continuation of an asset’s existing use or
for some alternative use. This is determined by
the use that a market participant would have in
mind for the asset when formulating the price
that it would be willing to bid. (IVS)
3. [The] highest and most profitable use for which
the property is adaptable and needed or likely to
be needed in the reasonably near future.
(Uniform Appraisal Standards for Federal Land
Acquisitions)
Hypothetical 1. A condition that is presumed to be true when it Appraisal Institute, The
Condition is known to be false. (SVP) Dictionary of Real
2. A condition, directly related to a specific Estate Appraisal, 6th
assignment, which is contrary to what is known Ed. (Chicago: Appraisal
by the appraiser to exist on the effective date of Institute, 2015)
the assignment results, but is used for the
purpose of analysis. Comment: Hypothetical
conditions are contrary to known facts about
physical, legal, or economic characteristics of the
subject property; or about conditions external to
the property, such as market conditions or
trends; or about the integrity of data used in an
analysis. (USPAP, 2016-2017 ed.)
Insurable Value A type of value for insurance purposes. Appraisal Institute, The
Dictionary of Real
Estate Appraisal, 6th
Institute, 2015)
Jungle Island Hotel

Internal Rate of The annualized yield rate or rate of return on capital that Appraisal Institute, The
Return (IRR) is generated within an investment or portfolio over a Dictionary of Real
period of ownership. Alternatively, the indicated return Estate Appraisal, 6th
on capital associated with a projected or pro forma Ed. (Chicago: Appraisal
income stream. Institute, 2015)
Leased Fee Interest The ownership interest held by the lessor, which includes Appraisal Institute, The
the right to receive the contract rent specified in the Dictionary of Real
lease plus the reversionary right when the lease expires. Estate Appraisal, 6th
Institute, 2015)
Leasehold Interest The right held by the lessee to use and occupy real estate Appraisal Institute, The
for a stated term and under the conditions specified in Dictionary of Real
the lease. Estate Appraisal, 6th
Institute, 2015)
Loan-to-Value The ratio between a mortgage loan and the value of the Appraisal Institute, The
Ratio (M) property pledged as security, usually expressed as a Dictionary of Real
percentage; also called loan ratio or LTV. Estate Appraisal, 6th
Institute, 2015)
Marketing Time An opinion of the amount of time it might take to sell a Appraisal Institute, The
real or personal property interest at the concluded Dictionary of Real
market value level during the period immediately after Estate Appraisal, 6th
the effective date of an appraisal. Ed. (Chicago: Appraisal
Institute, 2015)
Market Rent The most probable rent that a property should bring in a Appraisal Institute, The
competitive and open market reflecting the conditions Dictionary of Real
and restrictions of a specified lease agreement, including Estate Appraisal, 6th
the rental adjustment and revaluation, permitted uses, Ed. (Chicago: Appraisal
use restrictions, expense obligations, term, concessions, Institute, 2015)
renewal and purchase options, and tenant
improvements (TIs).
Jungle Island Hotel

Market Value Appraisal Institute, The
"A type of value that is the major focus of most real property
appraisal assignments. Both economic and legal definitions of
Dictionary of Real
market value have been developed and refined, such as the Estate Appraisal, 6th
following. Ed. (Chicago: Appraisal
1. The most widely accepted components of market value are Institute, 2015)
incorporated in the following definition: The most probable price,
as of a specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market
under all conditions requisite to a fair sale, with the buyer and seller
each acting prudently, knowledgeably, and for self-interest, and
assuming that neither is under duress.
2. Market value is described, not defined, in the Uniform Standards
of Professional Appraisal Practice (USPAP) as follows: A type of
value, stated as an opinion, that presumes the transfer of a
property (i.e., a right of ownership or a bundle of such rights), as of
a certain date, under specific conditions set forth in the definition of
the term identified by the appraiser as applicable in an appraisal.
Comment: Forming an opinion of market value is the purpose of
many real property appraisal assignments, particularly when the
client's intended use includes more than one intended user. The
conditions included in market value definitions establish market
perspectives for development of the opinion. These conditions may
vary from definition to definition but generally fall into three
categories:
1. the relationship, knowledge, and motivation of the parties (i.e.,
seller and buyer);
2. the terms of sale (e.g., cash, cash equivalent, or other terms);
and
3. the conditions of sale (e.g., exposure in an competitive market
for a reasonable time prior to sale).
Appraisers are cautioned to identify the exact definition of market
value, and its authority, applicable in each appraisal completed for
the purpose of market value. (USPAP, 2016-2017 ed.)
USPAP also requires that certain items be included in every
appraisal report. Among these items, the following are directly
related to the definition of market value:
• Identification of the specific property rights to be appraised.
• Statement of the effective date of the value opinion.
• Specification as to whether cash, terms equivalent to cash, or
other precisely described financing terms are assumed as the basis
of the appraisal.
• If the appraisal is conditioned upon financing or other terms,
specification as to whether the financing or terms are at, below, or
above market interest rates and/or contain unusual conditions or
incentives. The terms of above- or below-market interest rates
Jungle Island Hotel

and/or other special incentives must be clearly set forth; their
contribution to, or negative influence on, value must be described
and estimated; and the market data supporting the opinion of
value must be described and explained.
3. The following definition of market value is used by agencies that
regulate federally insured financial institutions in the United States:
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:
• Buyer and seller are typically motivated;
• Both parties are well informed or well advised, and acting in
what they consider their own best interests;
• A reasonable time is allowed for exposure in the open market;
• Payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto; and
•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. (12 C.F.R. Part 34.42(g);
55 Federal Register 34696, August 24, 1990, as amended at 57
Federal Register 12202, April 9, 1992; 59 Federal Register 29499,
June 7, 1994)
4. The International Valuation Standards Council defines market
value for the purpose of international standards as follows: The
estimated amount for which an asset or liability should exchange
on the valuation date between a willing buyer and a willing seller in
an arm's length transaction, after proper marketing and where the
parties had each acted knowledgeably, prudently and without
compulsion. (IVS)
5. The Uniform Standards for Federal Land Acquisitions defines
market value as follows: Market value is the amount in cash, or on
terms reasonably equivalent to cash, for which in all probability the
property would have sold on the effective date of the appraisal,
after a reasonable exposure time on the open competitive market,
from a willing and reasonably knowledgeable seller to a willing and
reasonably knowledgeable buyer, with neither acting under any
compulsion to buy or sell, giving due consideration to all available
economic uses of the property at the time of the appraisal.
(Uniform Appraisal Standards for Federal Land Acquisitions)"
Jungle Island Hotel

Mortgage The capitalization rate for debt; the ratio of the annual Appraisal Institute, The
Capitalization Rate debt service to the principal amount of the mortgage Dictionary of Real
(RM) loan. The mortgage capitalization rate (RM) is equivalent Estate Appraisal, 6th
to the periodic (monthly, quarterly, annual) mortgage Ed. (Chicago: Appraisal
constant times the number of payments per year on a Institute, 2015)
given loan on the day the loan is initiated.
RM = Annual Debt Service/Mortgage Principal
Mortgage Debt The periodic payment for interest on and retirement of Appraisal Institute, The
Service (IM) the principal of a mortgage loan; also called total Dictionary of Real
mortgage debt service. Generally, the abbreviation IM Estate Appraisal, 6th
refers to the total debt service, whereas mortgage debt Ed. (Chicago: Appraisal
service can be used to refer to either the periodic Institute, 2015)
payment or the total of the payments made in a year.
Net Income The relationship between price or value and net Appraisal Institute, The
Multiplier (NIM) operating income expressed as a factor; the reciprocal of Dictionary of Real
the overall capitalization rate. Estate Appraisal, 6th
Institute, 2015)
Net Operating The actual or anticipated net income that remains after Appraisal Institute, The
Income (NOI or IO) all operating expenses are deducted from effective gross Dictionary of Real
income but before mortgage debt service and book Estate Appraisal, 6th
depreciation are deducted. Note: This definition mirrors Ed. (Chicago: Appraisal
the convention used in corporate finance and business Institute, 2015)
valuation for EBITDA (earnings before interest, taxes,
depreciation, and amortization).
Net Rentable Area For office or retail buildings, the tenant’s pro rata portion Appraisal Institute, The
(NRA, Rentable of the entire office floor, excluding elements of the Dictionary of Real
Area) building that penetrate through the floor to the areas Estate Appraisal, 6th
below. The rentable area of a floor is computed by Ed. (Chicago: Appraisal
measuring to the inside finished surface of the dominant Institute, 2015)
portion of the permanent building walls, excluding any
major vertical penetrations of the floor. Alternatively,
the amount of space on which the rent is based;
calculated according to local practice.
Overall The relationship between a single year’s net operating Appraisal Institute, The
Capitalization Rate income expectancy and the total property price or value Dictionary of Real
(RO) (RO = IO /VO). Estate Appraisal, 6th
Institute, 2015)
Jungle Island Hotel

Prospective A prospective market value may be appropriate for the Appraisal Institute, The
Market Value "As valuation of a property interest related to a credit Dictionary of Real
Completed" and decision for a proposed development or renovation Estate Appraisal, 6th
"As Stabilized" project. According to USPAP, an appraisal with a Ed. (Chicago: Appraisal
prospective market value reflects an effective date that Institute, 2015)
is subsequent to the date of the appraisal report.
Prospective value opinions are intended to reflect the
current expectations and perceptions of market
participants, based on available data. Two prospective
value opinions may be required to reflect the time frame
during which development, construction, and occupancy
will occur. The prospective market value—as
completed—reflects the property’s market value as of
the time that development is expected to be completed.
The prospective market value—as stabilized—reflects
the property’s market value as of the time the property
is projected to achieve stabilized occupancy. For an
income-producing property, stabilized occupancy is the
occupancy level that a property is expected to achieve
after the property is exposed to the market for lease
over a reasonable period of time and at comparable
terms and conditions to other similar properties. (See
USPAP Statement 4* and Advisory Opinion 17.)
(Interagency Appraisal and Evaluation Guidelines)
Prospective A value opinion effective as of a specified future date. Appraisal Institute, The
Opinion of Value The term does not define a type of value. Instead, it Dictionary of Real
identifies a value opinion as being effective at some Estate Appraisal, 6th
specific future date. An opinion of value as of a Ed. (Chicago: Appraisal
prospective date is frequently sought in connection with Institute, 2015)
projects that are proposed, under construction, or under
conversion to a new use, or those that have not yet
achieved sellout or a stabilized level of long-term
occupancy.
Replacement Cost The estimated cost to construct, at current prices as of a Appraisal Institute, The
specific date, a substitute for a building or other Dictionary of Real
improvements, using modern materials and current Estate Appraisal, 6th
standards, design, and layout. Ed. (Chicago: Appraisal
Institute, 2015)
Replacement Cost The estimated cost, at current prices as of the effective Appraisal Institute, The
for Insurance date of valuation, of a substitute for the building being Dictionary of Real
Purposes valued, using modern materials and current standards, Estate Appraisal, 6th
design, and layout for insurance coverage purposes Ed. (Chicago: Appraisal
guaranteeing that damaged property is replaced with Institute, 2015)
new property (i.e., depreciation is not deducted).
Jungle Island Hotel

Reproduction Cost The estimated cost to construct, at current prices as of Appraisal Institute, The
the effective date of the appraisal, an exact duplicate or Dictionary of Real
replica of the building being appraised, using the same Estate Appraisal, 6th
materials, construction standards, design, layout, and Ed. (Chicago: Appraisal
quality of workmanship and embodying all the Institute, 2015)
deficiencies, superadequacies, and obsolescence of the
subject building.
Retrospective A value opinion effective as of a specified historical date. Appraisal Institute, The
Value Opinion The term retrospective does not define a type of value. Dictionary of Real
Instead, it identifies a value opinion as being effective at Estate Appraisal, 6th
some specific prior date. Value as of a historical date is Ed. (Chicago: Appraisal
frequently sought in connection with property tax Institute, 2015)
appeals, damage models, lease renegotiation, deficiency
judgments, estate tax, and condemnation. Inclusion of
the type of value with this term is appropriate, e.g.,
“retrospective market value opinion.”
Sandwich Lease A lease in which an intermediate, or sandwich, Appraisal Institute, The
leaseholder is the lessee of one party and the lessor of Dictionary of Real
another. The owner of the sandwich lease is neither the Estate Appraisal, 6th
fee owner nor the user of the property; he or she may be Ed. (Chicago: Appraisal
a leaseholder in a chain of leases, excluding the ultimate Institute, 2015)
sublessee.
Sum of the Retail The sum of the separate and distinct market value Appraisal Institute, The
Values opinions for each of the units in a condominium, Dictionary of Real
subdivision development, or portfolio of properties, as of Estate Appraisal, 6th
the date of valuation. The aggregate of retail values does Ed. (Chicago: Appraisal
not represent the value of all the units as though sold Institute, 2015)
together in a single transaction; it is simply the total of
the individual market value conclusions. Also called the
aggregate of the retail values or aggregate retail selling
price.
Surplus Land Land that is not currently needed to support the existing Appraisal Institute, The
use but cannot be separated from the property and sold Dictionary of Real
off for another use. Surplus land does not have an Estate Appraisal, 6th
independent highest and best use and may or may not Ed. (Chicago: Appraisal
contribute value to the improved parcel. Institute, 2015)
Terminal The capitalization rate applied to the expected net Appraisal Institute, The
Capitalization Rate income for the year immediately following the end of the Dictionary of Real
(RN) projection period to derive the resale price or value of a Estate Appraisal, 6th
property. Also called a going-out, exit, residual, or Ed. (Chicago: Appraisal
reversionary capitalization rate. Institute, 2015)
Jungle Island Hotel
17-216-02 QUALIFICATIONS OF THE APPRAISER
RICHARD KLEIN, MAI, MRICS

Mr. Klein holds the position of Partner with the Miami office of Joseph J. Blake and Associates, Inc., at 4000
Ponce de Leon Boulevard, Suite 410, Miami, Florida.
FORMAL EDUCATION
University of Florida - Gainesville, Florida
Bachelor of Science in Business Administration
Miami Dade College - Miami, Florida
Associates in Arts
PROFESSIONAL AFFILIATIONS
Affiliation Number
Florida State-Certified General Real Estate Appraiser No. RZ 724
Illinois Certified General Real Estate Appraiser No. 553.002265
Royal Institution of Chartered Surveyors No. 6329038
Appraisal Institute, Designated Member No. 8593
APPRAISAL EXPERIENCE
Mr. Klein was an adjunct professor for Florida Atlantic University at the Davie Campus where he taught REE
4103, The Appraisal of Real Estate.
Mr. Klein has been involved in real estate appraising since the completion of his formal education. He has
performed real estate appraisal assignments in sixteen states. The scope of these real estate assignments
includes raw land, subdivisions, multi-family projects, retail properties, office properties, historical
properties, industrial properties, lodging facilities, restaurants, and special purpose properties. Additionally,
he has performed marketability, consultation, and feasibility reports. Mr. Klein has had extensive real
estate experience throughout the states of Florida, Georgia, and South Carolina, as well as the southeast
area of the United States. Specific project experience will be furnished upon request.
CERTIFICATION
Jungle Island Hotel
TED ALLEN, MAI

Mr. Allen currently holds the position of Managing Partner with the Miami office of Joseph J. Blake and
Associates, Inc., at 4000 Ponce de Leon Boulevard, Suite 410, Miami, Florida. Previous positions include
Principal (1986 to 2011), Regional Manager Southeast Region (1984 to 1986), Senior Appraiser (1982 to
1983) and Associate Appraiser (1979 to 1981).
FORMAL EDUCATION
University of Texas - Austin, Texas
Bachelor of Business Administration
PROFESSIONAL AFFILIATIONS
Affiliation Number
Florida State-Certified General Real Estate Appraiser No. RZ 426
Georgia State-Certified General Real Property Appraiser No. CG 1855
Appraisal Institute, Designated Member No. 6949
Royal Institution of Chartered Surveyors No. 6329062
CURRENT RESPONSIBILITIES
Responsibilities include the preparation and direction of a variety of full narrative real estate appraisals and
consulting studies prepared on a national basis. Mr. Allen supervises all staff appraisers and consultants and
directs all major assignments throughout the southeastern United States and the Caribbean.
APPRAISAL EXPERIENCE
Mr. Allen has prepared and directed numerous appraisal and consulting assignments which include mixed-
use properties, multifamily developments, proposed and existing condominiums and conversions, office
buildings, motels, hotels, industrial properties, regional malls, shopping centers, mobile home parks,
market studies, feasibility studies, and investment analyses on a variety of institutional and non-
institutional grade real property in over 15 states and 10 Caribbean nations.
He has appraised and has supervised appraisals, as well as prepared consulting studies of properties for a
variety of public pension funds, large institutional investors, pension fund advisors, insurance companies
and banks.
Mr. Allen has qualified as an expert witness for Federal Bankruptcy Court in the State of Florida and the
State of Georgia and has given oral and written testimony in each. He has also been qualified in Florida
State and County Courts.
LEADERSHIP AND ADDITIONAL EXPERIENCE

Mr. Allen is currently one of three executive committee members managing the operations of Joseph J
Blake and Associates. This position oversees all aspects of the firms operations throughout the US. His
duties including accounting oversight, IT oversight, marketing, short and long range planning, personnel
staffing and budgeting.
Positions held at the Appraisal Institute include: former service on Chapter Admissions Committee
Member, former service on National Admissions Committee, and former service on National Ethics
Committee.
Additional real estate activities include NCREIF and Mortgage Bankers Association functions and service as
Special Magistrate Miami Dade County Value Adjustment Board for the 2014 tax year.
Jungle Island Hotel
CERTIFICATION

Jungle Island Hotel Market Rent Study Rev1

Uploaded by

Copyright:

Available Formats

You might also like

Jungle Island Hotel Market Rent Study Rev1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Jungle Island Hotel Market Rent Study Rev1

Uploaded by

Copyright:

Available Formats

APPRAISAL REPORT (MARKET RENT STUDY)

Jungle Island Hotel

July 10, 2017

Ms Jacqueline Lorenzo, Property Manager Representative

Re: Market Rent Study Jungle Island Hotel

JOSEPH J. BLAKE AND ASSOCIATES, INC.

Richard Klein, MAI, MRICS Ted Allen, MAI, MRICS

EXECUTIVE SUMMARY ........................................................................................................................................1

RENTAL VALUE SUMMARY

Hotel Per Room Total

FLR $/FLR Land Value

Front of Jungle Island View Along Jungle Island Trail

Entrance/Exit along Jungle Island Trail Entrance to Jungle Island

East Side of Subject Parking Garage

Parking Garage Rear of Jungle Island

Parking Garage Parking Garage

JOSEPH J. BLAKE AND ASSOCIATES, INC.

Richard Klein, MAI, MRICS Ted Allen, MAI, MRICS

PURPOSE OF THE APPRAISAL

INTENDED USER AND USE OF THE APPRAISAL

PERTINENT DATES OF INSPECTION, APPRAISAL VALUE AND REPORT

DEFINITION OF MARKET VALUE

PROPERTY RIGHTS APPRAISED

SCOPE OF THE APPRAISAL

Type of Analysis Applied

IDENTIFICATION OF THE PROPERTY

AREA DEMOGRAPHIC AND INCOME DATA

Source: MOODY’S ANALYTICS Précis® U.S. Metro South, April 2016

Unemployment Rate Personal Income Growth

Trends: 2016 - 2021 Annual Rate

Source: Site To Do Business

NEIGHBORHOOD ANALYSIS CONCLUSION

NATIONAL LODGING MARKET - PWC

Average Daily Rate (ADR)

Market Spotlight: Manhattan

NATIONAL FULL-SERVICE LODGING SEGMENT - PWC

Overall Cap Rate (OAR) 6.00%-10.00% 6.25%-10.00% 6.00%-10.00%

Residual Cap Rate 7.00%-10.00% 7.00%-10.00% 7.00%-10.00%

Average Daily Rate (2.00%)-7.00% 0.00%-5.00% 0.00%-5.00%

Operating Expense 1.00%-4.00% 1.00%-4.00% 1.00%-4.00%

Marketing Time Range 3-9 months 3-9 months 3-9 months

NATIONAL LIMITED-SERVICE MIDSCALE & ECONOMY LODGING SEGMENT - PWC

Overall Cap Rate (OAR) 7.50%-11.00% 7.50%-10.00% 7.50%-10.25%

Residual Cap Rate 7.75%-11.00% 7.75%-10.00% 7.75%-10.50%

Average Daily Rate (2.50%)-8.00% 0.00%-4.00% 2.00%-4.00%

Operating Expense 2.50%-3.00% 2.50%-3.00% 2.50%-3.00%

Marketing Time Range 2-12 months 2-12 months 2-12 months

NATIONAL LUXURY/UPPER-UPSCALE LODGING SEGMENT - PWC

Overall Cap Rate (OAR) 4.00%-9.00% 4.00%-9.00% 4.00%-9.00%

Residual Cap Rate 5.50%-9.50% 5.50%-9.50% 5.50%-10.00%

Average Daily Rate 0.00%-6.00% 0.00%-9.00% 0.00%-9.00%

Operating Expense 0.00%-4.00% 0.00%-5.00% 0.00%-5.00%

Marketing Time Range 3-12 months 3-12 months 3-12 months

NATIONAL SELECT SERVICE LODGING SEGMENT - PWC

Overall Cap Rate (OAR) 6.50%-10.00% 6.50%-10.00% 6.50%-10.75%

Residual Cap Rate 7.00%-10.75% 7.00%-10.75% 7.50%-11.00%

Average Daily Rate 0.00%-5.00% 0.00%-6.00% 2.00%-5.00%

Operating Expense 2.00%-4.00% 2.00%-4.00% 2.00%-4.00%

Marketing Time Range 2-12 months 2-12 months 2-12 months