Appraisal Report
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APPRAISAL REPORT HSBC OFFICE BUILDING 301 Arthur Godfrey Road Miami Beach, Miami-Dade County, Florida 33140 CBRE, Inc. File No. 14-397MI-1921 Rinat Shilo COO NETZ UNITED STATES (H.Y.) LTD. Derech Menahem Begin 125 Hayovel Tower 28, Fl., P.O. Box 7302 Tel Aviv, Israel www.cbre.com/valuation VALUATION & ADVISORY SERVICES CBRE, Inc. 777 Brickell Avenue, Suite 910 Miami, Florida 33131 James E. Agner, MAI, SGA, MRICS Managing Director – Florida/Caribbean November 25, 2014 Ms. Rinat Shilo Netz Group LTD / Netz USA Ltd / Elad Global LTD Derech Menahem Begin 125, Hoyovel Tower 28 FL / P.O. Box 7302 Tel Aviv, Israel 61072 To: Whom It May Concern RE: Appraisal of HSBC office building, 301 Arthur Godfrey Road– Miami Beach, Florida We confirm that we have given our full consent to the inclusion or reference of the valuation (value date of 30th of September 2014) in its entirety within Netz United States (H.Y) Ltd. financial statements to be published in the Tel Aviv stock Exchange in 2014. In addition, we confirm that we have given our full consent to the inclusion of this current letter with Netz United States (H.Y) Ltd. financial statements to be published in the Tel Aviv stock Exchange in 2014. Best regards, CBRE, Inc. Valuation & Advisory Services James E. Agner, MAI, SGA, MRICS Managing Director – Florida/Caribbean As Agent for CBRE, Inc. Cert. Gen. RZ382 T 305.381.6480 F 305.381.6441 [email protected] VALUATION & ADVISORY SERVICES 777 Brickell Avenue, Suite 910 Miami, FL 33131 T (305) 381-6480 F (305) 381-6441 www.cbre.com November 17, 2014 Rinat Shilo COO NETZ UNITED STATES (H.Y.) LTD. Derech Menahem Begin 125 Hayovel Tower 28, Fl., P.O. Box 7302 Tel Aviv, Israel RE: Appraisal of HSBC Office Building 301 Arthur Godfrey Road Miami Beach, Miami-Dade County, Florida 33140 CBRE, Inc. File No. 14-397MI-1921 Dear Ms. Shilo: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 36,935-square foot, six-story suburban office building located at 301 Arthur Godfrey Road in Miami Beach. The improvements were constructed in 1963 and are situated on a 1.07-acre, commercial zoned site. Currently, the property is 97.5% occupied with HSBC Bank USA occupying 14,388-square feet, or 39%, of the subject. Based on current zoning and assuming the subject is developed as a single development site, the subject has additional development potential of approximately 87,038 square feet. The subject is considered a Class B building in average overall condition and is more fully described, legally and physically, within the enclosed report. The current owner of record, Netz Bonds Miami-HSBC, LLLP, purchased the subject in March of 2013 for $15,125,000 with the intent to develop the parking lot with a residential or hotel use. It was indicated that negotiations are currently ongoing with a JV partner to develop the parking lot with a residential condominium project to include 42-units and structured parking. At the clients request, we provided a retrospective value as of September 30, 2014. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: © 2014 CBRE, Inc. Rinat Shilo November 17, 2014 Page 2 MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is Leased Fee Interest September 30, 2014 $19,700,000 Compiled by CBRE CBRE previously appraised the subject on June 10, 2013. Our previous market value estimate of $17,600,000 has been positively impacted by improving market conditions. It should be noted that the subject’s contract rents are within 1% of market and the subject’s leased fee value is the same as its fee simple value. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and CBRE will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety. We confirm that we have given our full consent to the inclusion or reference of the valuation (value date of 30th of September 2014) in its entirety within Netz United States (H.Y) Ltd. financial statements to be published in the Tel Aviv stock Exchange in 2014. In addition, we confirm that we have given our full consent to the inclusion of this consent letter within Netz United States (H.Y) Ltd. financial statements to be published in the Tel Aviv stock Exchange in 2014. © 2014 CBRE, Inc. Rinat Shilo November 17, 2014 Page 3 It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Jay B. Hertzbach James E. Agner, MAI, SGA, MRICS Senior Appraiser Managing Director – Florida/Caribbean Cert Gen RZ3253 Cert Gen RZ382 Phone: 305-381-6465 Phone: (305) 381-6480 Fax: 305-381-3441 Fax: (305) 381-6441 Email: [email protected] Email: [email protected] © 2014 CBRE, Inc. Certification Certification 1. We certify to the best of our knowledge and belief: 2. The statements of fact contained in this report are true and correct. 3. 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. 4. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. 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. 7. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Florida. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. As of the date of this report, James E. Agner, MAI, SGA, MRICS has completed the continuing education program for Designated Members of the Appraisal Institute. 12. As of the date of this report, Jay Hertzbach has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute. 13. Jay Hertzbach has and James E. Agner, MAI, SGA, MRICS has not made a personal inspection of the property that is the subject of this report. 14. No one provided significant real property appraisal assistance to the persons signing this report. 15. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 16. Jay Hertzbach and James E. Agner, MAI, SGA, MRICS have provided any 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 acceptance of this assignment. Jay B. Hertzbach James E. Agner, MAI, SGA, MRICS Cert Gen RZ3253 Cert Gen RZ382 i © 2014 CBRE, Inc. Subject Photographs Subject Photographs Aerial View ii © 2014 CBRE, Inc. Subject Photographs Aerial View iii © 2014 CBRE, Inc. Subject Photographs Front elevation Rear elevation Drive-thru teller lanes Parking lot HSBC lobby Typical office area iv © 2014 CBRE, Inc. Subject Photographs Typical office area Typical elevator lobby Typical corridor Typical office area Vacant office Typical corridor v © 2014 CBRE, Inc.