Street View of Subject Property Aerial View of Subject Property...foot on a triple net basis. The...

Commercial Real

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This Evaluation is intended for

internal bank use only.

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Street View of Subject Property Aerial View of Subject Property

Report Format: Evaluation in the form of Restricted Appraisal Report Report Name: Sample report name Client Information: Sample Bank 518 N. Tampa Street, Tampa, Florida 33602 Property Address: 1000 Main Street, Brandon, Florida 33511 Market Value Opinion: $ Intended Use: Loan underwriting and/or credit decisions Intended User: Sample Bank, not intended to be used by any other entity or person. Date of the Report: June 3, 2019 Effective Date: May 24, 2019 Property Rights: Leased Fee Interest Approach Utilized: Income Approach Type of Value: Market Value Property Submarket: Brandon Legal: Lot 1, Block 2 Brandon Subdivision Current Taxes and Assess.: The current just market assessment for the property is $2,330,650. The current total

real estate taxes are $44,728. Current Use: Multi-tenant office/retail Projected Use: Multi-tenant office/retail Owner(s) of Record: Sample Owner LLC Sales History: There were no sales of the subject noted in a five-year sale search. We are not aware

if the subject is actively marketed for sale or under contract. Site Size: 68,389 square feet or 1.57 acres Zoning Designation: PD, "Planned Development" with an OC-20, "Office Commercial" future land use Gross Building Area: 20,175 square feet Year Built: 2003 Building Condition: Average Flood Zone: X, flood insurance is not required. (panel 1201120395E, dated August 29, 2008)

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Site Description The subject site is located at the northeast quadrant of Sample Drive and Sample Avenue in Brandon. Along the subject segment, S. Lakewood Drive is a four-lane median divided north-south road and Oakfield Drive is a four-lane east-west road. Their intersection is signalized. The site has one point of ingress/egress onto S. Lakewood Drive, one point onto Oakfield Drive, and one point onto Morrison Road along the eastern boundary of the site. The site is improved with two buildings situated at the southwest and southeast corner of the site with the balance of the site largely reflecting paved parking with approximately 85 striped spaces reflecting a parking ratio of 4.21 spaces per 1,000 square feet of building area, adequate for retail and medical office use.

Improvements Description The improvements reflect two multi-tenant retail/office buildings comprising a total of 20,175 square feet which equates to a .30 floor area ratio. The buildings reflect concrete block construction and were built in 2003. The overall property is 90% occupied and 37% owner occupied. The eastern building is addressed 1000 Main Street and reflects a two-story multi-tenant retail/office building comprising 13,764 square feet. The first floor reflects a mixture of retail/restaurant and medical office tenants with the second-floor reflecting a mixture of professional and medical office tenants. This building is 85% occupied (the owner is occupying 8% of the second-floor office space). The western building is addressed 1002 Main Street and reflects spa/salon building comprising 6,411 square feet. This building is 100% owner occupied by Sample Owner LLC. The improvements are in average condition and there were no noted signs of significant deferred maintenance. The buildings are functional for their intended use as multi-tenant retail/office buildings.

Neighborhood

The majority of the growth within the Brandon area has been centered on the I-75 Corridor. Development plans for this corridor include massive amounts of large-scale commercial and industrial development. The I-75 Corridor spawned several new and proposed developments. Brandon Regional Hospital is a full-service acute care facility with specialty services. The hospital was named in the top 100 hospitals and ICU in the United States. Brandon Regional recently underwent a major expansion project. The neighborhood has experienced steady growth for the past 20 years and is poised for continued growth, which will be fueled by its location and convenience to Downtown Tampa. The neighborhood benefits from the established medical node near Brandon Regional Hospital, the Westfield Mall and the Crosstown Expressway improvements that facilitate access to Brandon.

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Market Overview A Q2 2019 East Tampa submarket retail report by Costar indicates an inventory of 14 million square feet currently 2.7% vacant with an average rent of $20.14 per square foot on a triple net basis. There is 5,000 square feet under construction with a 12 month absorption of 139,000 square feet. Trends indicate increasing rents and decreasing vacancy.

Source: Costar

Highest and Best Use

The subject is located at the northeast quadrant of Sample Drive and Sample Avenue at a signalized corner in Brandon nearby the Brandon Regional Hospital to the east and Westfield Brandon Mall to the west. The improvements reflect two multi-tenant retail/office buildings comprising a total of 20,175 square feet. The buildings reflect relatively new 2003 construction and are in average condition with no deferred maintenance. The overall property is 90% occupied 37% of which reflects owner-occupied space. We have determined the market rent for the subject to be $17.00 per square foot for retail units and $13.00 per square foot for second-floor office space, both on a triple net basis. For all but the owner-occupied Sample Owner LLC (and admin office) and the vacant second floor office space, we have input contract rents. A rent roll provided by the owner, Sample Owner, is included in the addenda of this report. For the salon building (1002 Oakfield Drive), we have input a market rent of $15.50 per square foot representing a slight discount to $17.00 considerate of the unit size. We have input the owner occupied second floor office space and vacant space at $13.00 per square foot on a triple net basis commensurate with the second-floor office space occupied by Sample Medical Clinic. It is our opinion that the highest and best use of the subject as if vacant would be for various commercial uses commensurate with the development character of the area, such as office or retail. The highest and best use as improved is its current use as multi-tenant retail/office. A typical buyer of the subject would be a local investor. With the highest and best use identified, we can proceed with our valuation.

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Valuation

Improved Lease - 1 Lithia Commons is located on the east side of Lithia Pinecrest Road, south of E. SR 60 in Brandon. The improvements reflect a multi-tenant retail strip center comprising 10,018 square feet. The building reflects concrete block construction and was constructed in 2012. There is a 1400 square foot unit available for lease for $17.00 per square foot on a triple net basis. The CAM expenses were estimated at $5.75 per square feet. The property is 86% occupied. Improved Lease - 2 This property is located at the northeast quadrant of E. Dr. Martin Luther King Jr. Boulevard and Lakewood Rent in Seffner. The improvements reflect an unanchored retail strip center comprising 10,640 square feet. The building reflects concrete block construction and was built in 2006. There is a 1,540 square foot unit available for lease for $19.00 per square foot on a triple net basis. The property is 86% occupied. Improved Lease - 3 This property is located on the west side of US Highway 301, south of Bloomingdale Avenue in Riverview. Known as Victory Center, the improvements reflect five retail/office buildings comprising a total of 26,118 square feet. The buildings reflect concrete block construction and were built in 2013 and 2015. There is a 1,200 square foot retail unit available for $18.00 per square foot on a triple net basis. Common area maintenance reimbursements are estimated at $5.00 per square foot. Reportedly, the office units at the rear of the property are leased for $13.00 per square foot on a triple net basis.

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Rent Comparables

Comp 1 Comp 2 Comp 3

Property Name Lithia Commons Victory Center

Address 853 Lithia

Pinecrest Road

11200 East Dr.

Martin Luther

King Jr.

Boulevard

645 US Highway

31 South

Submarket Brandon Seffner Riverview

Overall Building Size 10,018 10,640 26,118

Min. Available Space 1,400 1,540 1,200

Year Built 2012 2006 2013-2015

Average Rent/SF $17.00 $19.00 $18.00

Occupancy 86% 86% 95%

Lease Type Triple Net Triple Net Triple Net

Lease Terms 3-5 years 2 to 3 years 3 to 5 years

Adjustments

Adj Categories

Negotiations -5% -5% -5%

Location 0% -5% -5%

Age/Condition 0% 0% 0%

Bldg/Unit Size 0% 0% 0%

Overall Appeal 0% 0% 0%

Net Adjustments -5% -10% -10%

Adjusted Rent/SF $16.15 $17.10 $16.20 Rent Comparables Grid

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Leased Fee Interest Pro Forma

Potential Gross Income

Sq. Ft. Property Type /Month /SF Per Annum

1,450 Sample Medical Clinic $2,054 $17.00 $24,650

1,450 Sample Café $2,308 $19.10 $27,695

3,000 Sample Hair Removal $4,875 $19.50 $58,500

1,750 Sample Medical Rehab $2,625 $18.00 $31,500

3,000 Sample Medical Clinic $3,250 $13.00 $39,000

6,411 Sample Salon $8,281 $15.50 $99,371

1,100 Sample Office $1,192 $13.00 $14,300

2,014 Vacant 2nd Floor $2,182 $13.00 $26,182

20,175 Total/Averages $26,766 $15.92 $321,198

Common Area Maintenance (CAM) $5.25 $105,919

Less: Vacancy & Collection Loss 10% $42,712

Effective Gross Income $384,405

Expenses % of Per Per

Fixed EGI Month Sq. Ft.

Real Estate Taxes 12% $3,727 $2.22 $44,728

Insurance 3% $841 $0.50 $10,088

Variable

Maintenance & Repair 10% $3,363 $2.00 $40,350

Management 3% $961 $0.57 $11,532

Utilities 0% $0 $0.00 $0

Reserves 2% $504 $0.30 $6,053

Total Expenses 29% $9,396 $5.59 $112,750

Net Operating Income 71% $22,638 $13.46 $271,654 Proforma

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Comparable Rents Map

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Reconciliation After adjustments, the above rent comparables range from $16.15 to $17.10 per square foot, with a mean of $16.48 per square foot on a triple net basis. We then adjusted for a cushion for negotiations and elements of comparison, including location, age/condition, building/unit size and overall appeal. Considering the location, overall utility and current age/condition, we have concluded that the arm’s length contract rents are largely bracketed by the adjusted rent comparables and are at market therefore we have input actual rents. We have concluded to a market rent for the salon building at $15.50 per square foot on a triple net basis and the second-floor office space at $13.00 per square foot, also on a triple net basis The resulting net operating income (NOI) can be converted into value through direct capitalization. This is accomplished by dividing the NOI by an overall rate reflective of the property's perceived risk relative to other real estate and non-real estate investments. Considering the subject’s characteristics as multi-tenant retail/office property, its location within the Brandon Regional Hospital medical node in Brandon, the improvement’s effective age/condition, plus demand for this type of space in this market at this time, we have selected a % capitalization rate. The NOI is transformed into a value estimate by the formula V = I/R, where V = value, I = NOI and R = overall rate. Therefore, the following capitalizes value for the property:

$ ÷ 0 = $

The above value opinion is based on a 12-month marketing and exposure period. “As Is” Leased Fee Interest Market Value Opinion: $ Preparer:

Jeff Hicks, MAI President State-Certified General Appraiser #RZ754 Dohring Group Appraisal | Brokerage | Technology 518 N. Tampa Street Suite 300 Tampa, Florida 33602 Direct:813.223.4238 Mobile 813.230.3798 [email protected]

Internal File Number:

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Subject Photos

Exterior View of Subject Exterior View of Subject



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Exterior View of Subject Interior View of Subject

Interior View of Subject Interior View of Subject


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Looking North on S. Lakewood Drive Looking South on S. Lakewood Drive

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Disclaimers, Scope of Work, and Market Value Definition

Disclaimers: This report is an Evaluation developed in compliance with the development and content requirements of the Interagency Appraisal and Evaluation Guidelines contained in the Federal Register Volume 75, No. 237 issued December 10, 2010 as allowed by The State of Florida HB 927 effective October 1, 2017. This report also adheres to USPAP (2018-2019) standards for development and reporting of a Restricted Appraisal Report. Therefore, this report is an Evaluation in the form of a restricted appraisal. This Evaluation is intended for internal use only by the client, Sample Bank, and is not intended for any third-party use. The client is hereby notified that the appraiser's opinions and conclusions set forth in the report may not be understood properly without additional information contained in the appraiser's work file.

This Evaluation is intended to provide a credible value opinion based on the client's intended use and is intended to be used for transactions that qualify for the appraisal threshold exemption, business loan exemption, or subsequent transaction exemption outlined in the 2010 Interagency Appraisal and Evaluation Guidelines. This Evaluation is not intended to be used for transactions that do not meet these exemptions. Scope of Work: We collected factual information about the subject property and the surrounding market. Our research included Costar, Loopnet, and to some degree the Hillsborough County Property Appraiser’s Office. We inspected the interior and exterior of the subject building and general neighborhood. Methodology: To develop the opinion of value, we have performed one of the three traditional approaches, the Income Approach. The Cost Approach was not meaningful given the age of the improvements and the market's lack of acceptance of this method in this instance. The Income Approach is meaningful given the rental income the property can generate. The Sales Comparison Approach was excluded due to the subject property type which is best valued using the Income Approach. In the case of the subject property, the Sales Comparison Approach would be seen as a secondary indicator of value and is not necessary to develop a credible value opinion. Although fully considered, the Sales Comparison Approach is not applicable to this assignment and is excluded. Definition of Market Value1: 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. 1Definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.

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Assumptions

1. It is assumed that title to the property is clear and marketable and there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. The Dohring Group, Inc. has not examined title and makes no representations relative to the condition thereof.

2. It is assumed that surveys and/or plats furnished to, or acquired by, the preparer and used in the making of this report are correct. It is assumed that the utilization of the land and improvements is within the boundaries or property lines as described in the report, and there is no encroachment or trespass.

3. The Dohring Group, Inc. has not retained independent engineer(s) or architect(s) in connection with the report and therefore, makes no representations relative to conformance with approved architectural plans, specifications, or recommendations contained in or based on any soil(s) report.

4. It is assumed that all factual data furnished by the client, property owner, owner's representative, or persons designated by the client or owner are accurate and correct unless otherwise specifically noted in the report. Any material error in the gathered data could have substantial impact on the conclusions reported; as a result, The Dohring Group, Inc. reserves a right to amend conclusions reported if made aware of such an error.

5. It is assumed that there are no mineral or sub-surface rights of value involved in the report and there are no other development rights of value that may be transferred. Subsurface rights, minerals and oils, were not considered.

6. The existence of hazardous material, which may or may not be present on the property, was not observed by the preparers. The preparers have no knowledge of the existence of such material on or in the property. The preparers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated ground water, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated upon the assumption that there is no such material on or in the property that would cause loss in value or affect its marketability.

7. It is assumed that the property or properties described are structurally sound, seismically safe, and that all building systems (mechanical, electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required. It is assumed that the improvements as currently constituted conform to all applicable local, state, and federal building codes and ordinances.

8. No rights to expert testimony, pretrial or other conferences, disposition, or related services are included in this Evaluation. If as a result of this undertaking, The Dohring Group, Inc. or any its officers, professionals, and/or consultants are requested or required to provide any of the foregoing services, such shall be subject to the availability of The Dohring Group, Inc.'s professionals or consultants at the time and shall further be subject to the party or parties requesting or requiring such services paying the then applicable professional fees and expenses.

9. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The Dohring Group, Inc. has not made a specific compliance survey with The Americans with Disabilities Act ("ADA").

10. Neither all nor any of the contents of the report shall be conveyed to the public through advertising, public relations, news, sales or other media without written consent and approval of The Dohring Group, Inc. This Evaluation is intended for internal bank use only.

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

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

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and 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.

The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval

of a loan.

The signatories of this appraisal report nor the Dohring Group have been sued by a regulatory agency or financial Institution for fraud or negligence involving an appraisal report.

Compensation for completing this assignment is not contingent upon the development or reporting of a

predetermined value or direction in value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

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

the Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition.

Jeff Hicks has made a personal inspection of the property that is the subject of this report.

No one provided significant real property appraisal assistance to the persons signing this certification.

Our analyses, opinions, and conclusions have been developed, and this report has been prepared, in compliance with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of The Appraisal Foundation, and in accordance with the appraisal-related mandates within Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). This report was also prepared in conformance with the State of Florida Standards for Certified General Real Estate Appraisers and with Sample Bank’s appraisal requirements.

We have not relied on unsupported conclusions relating to characteristics such as race, color, religion, national

origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

It is our opinion that the subject does not include any enhancement in value as a result of any natural, cultural,

recreational or scientific influences retrospective or prospective.

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We have extensive experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

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

authorized representatives.

As of the date of this report, Jeff Hicks, MAI has completed the continuing education program for Designated Members of the Appraisal Institute.

We have not relied on the work of others if we have a reasonable doubt that the work is credible. We have performed no services as an appraiser, or in any capacity, regarding the property that is the subject of

this report within the three year period immediately preceding acceptance of this assignment.

Respectfully submitted, THE DOHRING GROUP, INC. Jeff Hicks, MAI President State-Certified General Appraiser #RZ754

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PROFESSIONAL PROFILE

JEFF HICKS, MAI PRESIDENT THE DOHRING GROUP 518 N. TAMPA ST STE 300 TAMPA, FLORIDA 33602 [email protected] T: 813.223.9111 C: 813.230.3798 F: 813.225.1790

SERVICES OFFERED • Commercial RE Appraisal

• Expert Witness Testimony

• Tax Appeal

• Replacement Cost New

• Market Studies

• Eminent Domain

MARKETS COVERED • Hillsborough County

• Pinellas County

• Hernando County

• Citrus County

• Polk County

• Manatee County

• Sarasota County • Pasco County

PROFESSIONAL EXPERIENCE Jeff Hicks, MAI is President of The Dohring Group, a commercial real estate appraisal and brokerage company headquartered in Tampa, Florida. Mr. Hicks has appraised and supervised appraisers on a wide variety of property types including office buildings, shopping centers, apartment complexes, hotels, industrial and special purpose properties such as car washes and churches. His role at the Dohring Group is the coordination and review of appraisal production and oversight of the marketing of valuation business lines within the company. Mr. Hicks is a certified general appraiser in the state of Florida with 25 years of experience. He holds a Bachelor of Science in Real Estate from Florida State University and is a Member of the Appraisal Institute.

PROFESSIONAL AFFILIATIONS AND DESIGNATIONS • Member, Appraisal Institute (MAI)

• State-Certified Instructor – Commercial Appraisal Productivity Seminar

• Florida Banker’s Association

• Toastmasters International – Competent Communicator

• RMA Risk Management Association

• Tampa Union Station Board Member

EDUCATION • Bachelor of Science, Real Estate, Florida State University, Tallahassee, FL

• Jesuit High School, Tampa, FL

LICENSES • State-Certified General Appraiser #RZ754

PROFESSIONAL POSITIONS • President, The Dohring Group, Inc. (Tampa, FL)

• Appraiser, Pierson/Dohring, Inc. (Tampa, FL)

• Commercial Sales/Leasing, Sunwest RE, Inc. (Tampa, FL)

• Appraiser, Pardue, Heid, Church (Tampa, FL)

COURT EXPERIENCE Qualified as expert witness in:

• United States District Court for the Middle District of Florida

• Florida Fifth Circuit Court, Hernando County

• Florida Sixth Circuit Court, Pinellas County • United States Bankruptcy Court, Middle District of Florida

1992 to Present 1989 – 1992 1988 – 1989 1987 - 1988

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APPRAISAL Analysis and appraisal of single family, multifamily, industrial, commercial, office, retail centers, multi-purpose, medical, lodging, assisted living facilities, restaurants, convenience stores, vacant land and special purpose properties for individual corporations, attorneys, public agencies and lending institutions. Primary emphasis in the Tampa Bay area and state of Florida.

CONSULTING Includes feasibility studies, condemnation support, ad valorem tax representation, investment analysis, highest and best use studies, project feasibility, marketing strategies, and other assignments of similar nature.

SPECIALIZED COURSE WORK AND SEMINARs Appraisal Institute (Abridged)

• 2018 7-Hour National USPAP Update Course 2018/19

• 2018 Basic Appraisal Principles

• 2016 Expert Witness for Commercial Appraisers

• 2016 Business Practices and Ethics

• 2015 Evaluating the Evaluation

• 2014 7 Hour National USPAP Update Course

• 2014 3 Hour Florida Law

• 2014 Review Theory - General

• 2014 Online Real Estate Finance Statistics and Valuation Modeling

• 2014 Appraisals of Senior Housing Long-Term Care Properties

• 2013 Carving Out Your Legal Niche- Do’s and Don’ts of Litigation Support

• 2013 Separating Real Property, Personal Property & Intangible Business Assets

• 2011 Advanced Sales Comparison & Cost Approaches

• 2011 Understanding the New Interagency Appraisal and Evaluation Guidelines

• 2010 General Appraiser Market Analysis and Highest & Best Use

• 2009 Property Tax Assessments

• 1998 Valuation of Detrimental Conditions

• 1994 Standards of Professional Practice, Part A

• 1994 Standards of Professional Practice, Part B

• 1991 Report Writing and Valuation Analysis

• 1988 Case Studies in Real Estate Valuation

• 1987 Capitalization Theory and Techniques - Part A

• 1987 Capitalization Theory and Techniques - Part B

• 1987 Real Estate Appraisal Principles

Course Work/Seminars (Abridged)

• 2018 Florida Appraisal Laws and Regulations


• 2016 2016-2017 National USPAP Update

• 2016 Appraisal of Land Subject to Ground Leases

• 2016 Supervisor – Trainee Course for Florida

• 2011 Going Concern Appraisals: Allocation of Tangible and Intangible Assets

• 2010 Distressed & Depressed: CRE Foreclosure/Workout Valuation

• 2010 Florida Supervisor/Trainee Roles and Relationships

• 2010 ULI- Signs of Recovery: The New Market and Trends in Housing

• 2007 Developing & Growing an Appraisal Practice

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Commercial Real Estate Evaluation

This Evaluation is intended for internal bank use only.

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Street View of Subject Property Aerial View of Subject Property

Report Format: Evaluation in the form of a Restricted Appraisal Report Report Name: Sample report name Client Information: Sample Bank 518 N. Tampa Street, Tampa, Florida 33602 Property Address: 1000 Main Street, Brandon, Florida 33511 Market Value Opinion: $ Intended Use: Loan underwriting and/or credit decisions Intended User: Sample Bank, not intended to be used by any other entity or person. Date of the Report: July 8, 2020 Effective Date: July 6, 2020 Property Rights: Fee Simple Interest Approach Utilized: Sales Comparison Approach Type of Value: Market Value Exposure/Marketing Time: 12 months Property Submarket: Brandon Legal: Lot 1, Block 2 Brandon Subdivision Tax Id: 12345-0000 Current Taxes and Assess.: The current just market assessment for the property is $523,861. The current total real

estate taxes are $8,184. Current Use: Professional office building Projected Use: Professional office building Owner(s) of Record: Property Owner LLC Sales History: There were no sales of the subject noted in a five-year sale search. We are not aware

if the subject is actively marketed for sale or under contract. Site Size (Overall Park): 244,179 square feet or 5.61 acres Zoning Designation: BPO, "Business, Professional Office" by Hillsborough County with an R-6, "Residential"

future land use Gross Building Area: 3,582 square feet Year Built: 2003 Building Condition: Average Flood Zone: X, flood insurance is not required. (panel 12057C0393H, dated August 28, 2008)



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Site Description The subject site is located on the north side of E. Bloomingdale Avenue, east of John Moore Road in Brandon. Along the subject segment, E. Bloomingdale Avenue is a four-lane east-west road. The subject is located within the Alafia Oaks Professional Park which comprises 5.61 acres and reflects a nine building park (with one undeveloped office pad) reflecting a .12 overall floor area ratio. There is one point of ingress/egress into the park onto Bloomingdale Avenue. The subject professional office building is near the northern terminus of the internal road on the east side, second furthest from the entrance.

Improvements Description The subject reflects a multi-tenant professional office building comprising 3,582 square feet. The building reflects concrete block construction and was built in 2003. The building is 100% occupied although leases were not provided to the appraisers. The exterior build out reflects painted stucco over concrete block, some brick fascia with signage along the front or western elevation of the building, single hung residential windows, and residential entry door with glass inserts. The building has a hip style roof with asphalt shingle over wood truss system. As requested, we have conducted an exterior only inspection of the subject. We have made an extraordinary assumption that the interior buildout is commensurate with other comparable professional office buildings and is in average condition with no noted signs of significant deferred maintenance.

Neighborhood The Lee Roy Selmon Expressway links I-75 and Brandon into downtown Tampa. A middle elevated roadway was recently constructed from Brandon to downtown Tampa. This new segment facilitates traffic flow, especially during peak commuting periods. The Lee Roy Selmon Expressway has various interchanges throughout the neighborhood, including 22nd Street, U.S. Highway 41 and U.S. Highway 301. A new section linking Interstate 4 to the Selmon Expressway was recently completed near US 41. The subject neighborhood is located within the greater Brandon area, which comprises an 89 square mile radius and consists of an estimated population of 170,430 residents and includes the communities of Seffner, Valrico, Dover, Durant, Lithia, Mango, Bloomingdale and Riverview. The southern portion of the subject neighborhood is characterized by retail and office uses supporting the nearby residential communities that surround the Bloomingdale Avenue corridor. Examples include Bloomingdale Executive Park, developed by McCullagh and Scott, consists of nine office buildings, most comprising 4,500 square feet each. This office park is located at the northeast quadrant of Bloomingdale Avenue and Watson Road on a 3.23-acre site. Another example of relatively new construction is Alafia Oaks, a John Westfall (Waterford Construction) office park on the north side of Bloomingdale Avenue, east of Parsons Avenue. Angelica LLC developed Angelica Office Plaza with 48,000 square feet of office and 8,000 square feet of retail space at SR 60 and Parsons. The neighborhood has experienced steady growth for the past 20 years and is poised for continued growth, which will be fueled by its location and convenience to Downtown Tampa. The neighborhood benefits from the established medical node near Brandon Regional Hospital, the Westfield Mall and the Crosstown Expressway improvements that facilitate access to Brandon.



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Market Overview

According to a 3Q 2020 East Tampa Office Market Report by Costar, there is an inventory of 10.8 million square feet currently 8.4% vacant with an average rental rate of $26.07 per square foot. There has been a 12 month net absorption of 83,000 square feet with 32,800 square feet of office space under construction.

Covid-19 This early in the process, COVID-19's long-term effects on commercial real estate are difficult to quantify. Organizations such as Urban Land Institute, Costar, and CB Richard Ellis are surveying real estate professionals such as brokers, property managers, buyers/sellers, and appraisers to assist in keeping our finger on the pulse of this highly evolving situation. The following reflects a summary of projections and observations which provides additional contexts for the subject in the climate of this pandemic. Short-term effects for some properties might include landlords offering rent abatement or lease extensions and lender loan modifications, possibly forbearance. The key to this health crisis is its duration. If restrictions by state and local governments are lifted by the next quarter, we do not anticipate any substantive effect on market value when viewed through the investor lens of a typically holding period for a particular property type.



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Highest and Best Use It is our opinion that the highest and best use of the subject as if vacant would be for various commercial uses commensurate with the development character of the area, such as professional office. The highest and best use as improved is its current use as professional office. A typical buyer of the subject would be an owner user or investor. With the highest and best use identified, we can proceed with our valuation.



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Valuation

Comparable 1 - This property is located on the east side of Providence Road, north of Providence Lakes Boulevard in Brandon. Located within Providence Lakes Executive Park, the improvements reflect a two tenant professional office building comprising 3,036 square feet purchased for partial owner occupancy in June 2020 for $585,000 or $193 per square foot.

Comparable 2 - This property is located on the west side of S. Gornto Lake Road, south of Lake Brandon Drive in Brandon. Located within the Lake Brandon Professional Park, the improvements reflect a two tenant professional office building comprising 3,982 square feet purchased for investment purposes in November 2019 for $690,000 or $173 per square foot.

Comparable 3 - This property is located on the north side of Bloomingdale Avenue, east of Hurley Road in Valrico. Located within the Bloomingdale Oaks Executive Park, the improvements reflect a two tenant professional office building comprising 3,072 square feet purchased for owner occupancy in October 2019 for $535,000 or $174 per square foot.



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Comparables Map



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Improved Sales Summary and Adjustment GridSubject Comp 1 Comp 2 Comp 3

Property Name: Providence Lakes

Executive Park

Lake Brandon

Professional Park

Bloomingdale Oaks

Executive Park

Location: 1000 Main

Street

1375 Providence

Road

1138 Kyle Wood

Lane

1452 Bloomingdale

Avenue

Submarket: Brandon Brandon Brandon Valrico

O.R. Book/Page: 2020255231 27156/1622 27023/781

Seller: Paul W. Holmberg

and Tammy J.

Holmberg

Genesis Group

Investments LLC

Group House

Properties LLC

Buyer: Shawn Meaike Izenon LLC AMBP Property

Group LLCDate of Sale: June, 2020 November, 2019 October, 2019

Sale Price: $585,000 $690,000 $535,000

Cap Rate: 7.27%

Building Size: 3,036 3,982 3,072

Unadjusted Price/SF: $193 $173 $174

Adjustments

Rights Transferred: Leased fee Leased fee Fee simple

Financial Considerations: Market Market Market

Conditions of Sale: Arm's Length Arm's Length Arm's Length

Market Conditions - Time: Stable Stable Stable

Time Adjusted

Cash Equiv. Price/SF: $193 $173 $174

Location: Average Similar Similar Similar

Building Size (SF): 3,582 3,036 3,982 3,072

Year Built/Condition: 2003 2014 2007 2005

Average -10%

Floor Area Ratio: 0.22 0.25 0.20 0.09

Net Adjustments: -10% 0% 0%

Adjusted Price/SF: $173 $173 $174

Improved Sales Adjustment Grid



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Reconciliation There are several units of comparison generally employed in the analysis of office properties. In this instance, the market dictates price per square foot index is most appropriate. The adjustment categories include location, building size, year built/condition, and floor area ratio. After adjustments, the sales range from $173 to $174 per square foot, with a mean of $174 per square foot. Based on the relative merits of each sale, but placing greater emphasis on the mean, we have concluded to value of the subject at $ per square foot which equates to $ or a rounded Market Value of $. The above value opinion is based on a 12-month marketing and exposure period. "As Is" Fee Simple Interest Market Value Opinion: $ Preparer: Jeff Hicks, MAI President State-Certified General Appraiser #RZ754 Dohring Group Appraisal | Brokerage | Technology 518 N. Tampa Street Suite 300 Tampa, Florida 33602 Direct:813.223.4238 Mobile 813.230.3798 [email protected]

Internal File Number:



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Subject Photos



Looking East on E. Bloomingdale Avenue Looking West on E. Bloomingdale Avenue



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Disclaimers, Scope of Work, and Market Value Definition Disclaimers: This report is an Evaluation developed in compliance with the development and content requirements of the Interagency Appraisal and Evaluation Guidelines contained in the Federal Register Volume 75, No. 237 issued December 10, 2010 as allowed by The State of Florida HB 927 effective October 1, 2017. This report also adheres to USPAP (2020-2021) standards for development and reporting of a Restricted Appraisal Report. Therefore, this report is an Evaluation in the form of a restricted appraisal. This Evaluation is intended for internal use only by the client, Sample Bank, and is not intended for any third-party use. The client is hereby notified that the appraiser's opinions and conclusions set forth in the report may not be understood properly without additional information contained in the appraiser's work file.

This Evaluation is intended to provide a credible value opinion based on the client's intended use and is intended to be used for transactions that qualify for the appraisal threshold exemption, business loan exemption, or subsequent transaction exemption outlined in the 2010 Interagency Appraisal and Evaluation Guidelines. This Evaluation is not intended to be used for transactions that do not meet these exemptions. Scope of Work: We collected factual information about the subject property and the surrounding market. Our research included Costar, Loopnet, and to some degree the Hillsborough County Property Appraiser’s Office. We inspected the exterior only of the subject as requested by the client. The extent of the inspection resulted in a credible market value opinion.. Methodology: To develop the opinion of value, we have performed one of the three traditional approaches, the Sales Comparison Approach. The Cost Approach was not meaningful given the age of the improvements and the market's lack of acceptance of this method in this instance. The Sales Comparison Approach is meaningful given arm's length sales of similar buildings in which to estimate value. The Income Approach was excluded due to the subject property type which is best valued using the Sales Comparison Approach. In the case of the subject property, the Income Approach would be seen as a secondary indicator of value and is not necessary to develop a credible value opinion. Although fully considered, the Income Approach is not applicable to this assignment and is excluded. Definition of Market Value1: 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. 1Definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.



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Assumptions

1. It is assumed that title to the property is clear and marketable and there are no recorded or unrecorded matters or exceptions

to title that would adversely affect marketability or value. The Dohring Group, Inc. has not examined title and makes no representations relative to the condition thereof.

2. It is assumed that surveys and/or plats furnished to, or acquired by, the preparer and used in the making of this report are

correct. It is assumed that the utilization of the land and improvements is within the boundaries or property lines as described in the report, and there is no encroachment or trespass.

3. The Dohring Group, Inc. has not retained independent engineer(s) or architect(s) in connection with the report and therefore,

makes no representations relative to conformance with approved architectural plans, specifications, or recommendations contained in or based on any soil(s) report.

4. It is assumed that all factual data furnished by the client, property owner, owner's representative, or persons designated by

the client or owner are accurate and correct unless otherwise specifically noted in the report. Any material error in the gathered data could have substantial impact on the conclusions reported; as a result, The Dohring Group, Inc. reserves a right to amend conclusions reported if made aware of such an error.

5. It is assumed that there are no mineral or sub-surface rights of value involved in the report and there are no other development

rights of value that may be transferred. Subsurface rights, minerals and oils, were not considered. 6. The existence of hazardous material, which may or may not be present on the property, was not observed by the preparers.

The preparers have no knowledge of the existence of such material on or in the property. The preparers, however, are not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated ground water, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated upon the assumption that there is no such material on or in the property that would cause loss in value or affect its marketability.

7. It is assumed that the property or properties described are structurally sound, seismically safe, and that all building systems

(mechanical, electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required. It is assumed that the improvements as currently constituted conform to all applicable local, state, and federal building codes and ordinances.

8. No rights to expert testimony, pretrial or other conferences, disposition, or related services are included in this Evaluation. If

as a result of this undertaking, The Dohring Group, Inc. or any its officers, professionals, and/or consultants are requested or required to provide any of the foregoing services, such shall be subject to the availability of The Dohring Group, Inc.'s professionals or consultants at the time and shall further be subject to the party or parties requesting or requiring such services paying the then applicable professional fees and expenses.

9. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The Dohring Group, Inc. has not made a specific

compliance survey with The Americans with Disabilities Act ("ADA"). 10. Neither all nor any of the contents of the report shall be conveyed to the public through advertising, public relations, news,

sales or other media without written consent and approval of The Dohring Group, Inc. This Evaluation is intended for internal bank use only.



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

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

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and 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.

The appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval

of a loan.

The signatories of this appraisal report nor the Dohring Group have been sued by a regulatory agency or financial

Institution for fraud or negligence involving an appraisal report.

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

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

the Uniform Standards of Professional Appraisal Practice, 2020-2021 Edition.

Jeff Hicks has made a personal inspection of the property that is the subject of this report.

James Taylor provided significant real property appraisal assistance to the persons signing this certification.

Our analyses, opinions, and conclusions have been developed, and this report has been prepared, in compliance with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of The Appraisal Foundation, and in accordance with the appraisal-related mandates within Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). This report was also prepared in conformance with the State of Florida Standards for Certified General Real Estate Appraisers and with Sample Bank’s appraisal requirements.

We have not relied on unsupported conclusions relating to characteristics such as race, color, religion, national

origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

It is our opinion that the subject does not include any enhancement in value as a result of any natural, cultural,

recreational or scientific influences retrospective or prospective.



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We have extensive experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

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

authorized representatives.

As of the date of this report, Jeff Hicks, MAI has completed the continuing education program for Designated Members of the Appraisal Institute.

We have not relied on the work of others if we have a reasonable doubt that the work is credible. We have performed no services as an appraiser, or in any capacity, regarding the property that is the subject of

this report within the three year period immediately preceding acceptance of this assignment. Respectfully submitted, The Dohring Group, Inc. Jeff Hicks, MAI President State-Certified General Appraiser #RZ754



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PROFESSIONAL PROFILE

Jeff Hicks, MAI President The Dohring Group 518 n. Tampa St Ste 300 Tampa, Florida 33602 [email protected] T: 813.223.9111 C: 813.230.3798 F: 813.225.1790 Services Offered

• Commercial RE Appraisal

• Expert Witness Testimony

• Tax Appeal

• Replacement Cost New

• Market Studies

• Eminent Domain Markets Covered

• Hillsborough County

• Pinellas County

• Hernando County

• Citrus County

• Polk County

• Manatee County

• Sarasota County

• Pasco County

Professional Experience Jeff Hicks, MAI is President of The Dohring Group, a commercial real estate appraisal and brokerage company headquartered in Tampa, Florida. Mr. Hicks has appraised and supervised appraisers on a wide variety of property types including office buildings, shopping centers, apartment complexes, hotels, industrial and special purpose properties such as car washes and churches. His role at the Dohring Group is the coordination and review of appraisal production and oversight of the marketing of valuation business lines within the company. Mr. Hicks is a certified general appraiser in the state of Florida with 25 years of experience. He holds a Bachelor of Science in Real Estate from Florida State University and is a Member of the Appraisal Institute. Professional Affiliations and Designations

• Member, Appraisal Institute (MAI)

• State-Certified Instructor – Commercial Appraisal Productivity Seminar

• Florida Banker’s Association

• Toastmasters International – Competent Communicator

• RMA Risk Management Association

• Tampa Union Station Board Member Education

• Bachelor of Science, Real Estate, Florida State University, Tallahassee, FL

• Jesuit High School, Tampa, FL Licenses

• State-Certified General Appraiser #RZ754

Professional Positions

• President, The Dohring Group, Inc. (Tampa, FL)

• Appraiser, Pierson/Dohring, Inc. (Tampa, FL)

• Commercial Sales/Leasing, Sunwest RE, Inc. (Tampa, FL)

• Appraiser, Pardue, Heid, Church (Tampa, FL) Court Experience Qualified as expert witness in:

• United States District Court for the Middle District of Florida

• Florida Fifth Circuit Court, Hernando County

• Florida Sixth Circuit Court, Pinellas County

• United States Bankruptcy Court, Middle District of Florida

1992 to Present 1989 – 1992 1988 – 1989 1987 - 1988



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Appraisal Analysis and appraisal of single family, multifamily, industrial, commercial, office, retail centers, multi-purpose, medical, lodging, assisted living facilities, restaurants, convenience stores, vacant land and special purpose properties for individual corporations, attorneys, public agencies and lending institutions. Primary emphasis in the Tampa Bay area and state of Florida. Consulting Includes feasibility studies, condemnation support, ad valorem tax representation, investment analysis, highest and best use studies, project feasibility, marketing strategies, and other assignments of similar nature. Specialized Course work and Seminars Appraisal Institute (Abridged)

• 2020 7-Hour National USPAP Update Course

• 2018 7-Hour National USPAP Update Course

• 2018 Basic Appraisal Principles

• 2016 Expert Witness for Commercial Appraisers

• 2016 Business Practices and Ethics

• 2015 Evaluating the Evaluation

• 2014 7 Hour National USPAP Update Course

• 2014 3 Hour Florida Law

• 2014 Review Theory - General

• 2014 Online Real Estate Finance Statistics and Valuation Modeling

• 2014 Appraisals of Senior Housing Long-Term Care Properties

• 2013 Carving Out Your Legal Niche- Do’s and Don’ts of Litigation Support

• 2013 Separating Real Property, Personal Property & Intangible Business Assets

• 2011 Advanced Sales Comparison & Cost Approaches

• 2011 Understanding the New Interagency Appraisal and Evaluation Guidelines

• 2010 General Appraiser Market Analysis and Highest & Best Use

• 2009 Property Tax Assessments

• 1998 Valuation of Detrimental Conditions

• 1994 Standards of Professional Practice, Part A

• 1994 Standards of Professional Practice, Part B

• 1991 Report Writing and Valuation Analysis

• 1988 Case Studies in Real Estate Valuation

• 1987 Capitalization Theory and Techniques - Part A

• 1987 Capitalization Theory and Techniques - Part B

• 1987 Real Estate Appraisal Principles Course Work/Seminars (Abridged)


• 2018 Florida Appraisal Laws and Regulations • 2016 Florida Appraisal Laws and Regulations • 2016 2016-2017 National USPAP Update • 2016 Appraisal of Land Subject to Ground Leases • 2016 Supervisor – Trainee Course for Florida • 2011 Going Concern Appraisals: Allocation of Tangible and Intangible Assets



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• 2010 Distressed & Depressed: CRE Foreclosure/Workout Valuation • 2010 Florida Supervisor/Trainee Roles and Relationships • 2010 ULI- Signs of Recovery: The New Market and Trends in Housing • 2007 Developing & Growing an Appraisal Practice • 2004 Factory Built Housing

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