Property Summary

• Lahaina Inn Resort is located on the Gulf Coast of Estero Island in the town of Fort Myers Beach in Southwest Florida. This Timeshare Vacation rental Property is operated as a 37-unit timeshare resort located on Estero Boulevard the main boulevard that runs thru Estero Island. The Property consists of two separate parcels totaling 2.6± gross acres, with 2.22 beachfront acres west of Estero consisting of 31 units and 0.40 acres along the easterly right-of-way of Estero Boulevard with currently 6 units in place plus an office. The zoning overlay under the FLUME is Mixed Residential. Max Residential Density 6 Units Per Acre on 2.2 acres and 10 Units Per Acre on the 0.40 acre site or 6 units over retail mixed-use component. Preliminary Rezone meetings with a newly established legal and engineering team to see how the city might look at this is suggested, as fort Myers beach is on record for offering "exceptional circumstances" to higher density projects.

Investment Opportunity

• The same 37 timeshare units can be rebuilt per Beach Land Development Code, the build-back provisions, a rebuilt hotel/motel may exceed the intensity limits for new hotel/motel building on vacant land but cannot exceed the documented number of units in the building immediately before the natural disaster occurred. Buildings damaged more than 50% of their replacement cost can be rebuilt to their legally documented actual use, density, intensity, size, and style provided the new construction complies with: 1. Federal requirements for elevation above the l00-year flood level; 2. Any building code requirements for flood-proofing; 3. Current building and safety codes; 4. Coastal Construction Control Line requirements; and 5. Any other new required zoning or other development regulations.
• Re zoning- Highest and best use is to rezone to residential MF PUD, Condo-Hotel operation, (condo-tel) would result in the highest land value. As the current code allows for an equivalency factor of 2 to 1 within the Mixed Residential Future Land Use for hotel units under 450' and 1 to 1 for hotel units between 750 and 1,000. As such, if allowed, the beachfront parcel could be developed with up to 31 residential units, 22 more than what could be achieved by the underlying zoning. The highest value of the beachfront site is likely for redevelopment into a multi-story condo hotel project. It is also suggested by Mike Rivera the broker that the parcels be legally split with its own PID # as an option to be sold separately if a quick sale is wanted, this adds an option adding value to the Beachside for the less desired eastern portions.

Pricing Value methods

• Beachside Valuation as is Time share 30 units plus 7 units Eastern portion 37 total - $24,000,000 - $65,000 per linear Gulf frontage foot - 30 units x 900,000 per unit= $27,000,000(Typical price paid per recent comps 800k to 1M per Land unit (Non Beachside) 7 units x 290k per Unit = $2,030,000 Bayside $2,000,000 - 10 unit per acre on CR zoning- .040 size lot 90% coverage 8 units x 250,000 per unit Typical Estero Blvd Lot east side Comps, for 1/2 acre lot- 2M to 2.5M

Mike Rivera's Thoughts and Potential End game

• This timeshare while it enjoys 37 units of 1,200 plus sqft density on over 12 buildings, might not be the highest and best use for the short term. For a vacation rental income asset however, this may be still feasible. However we feel a condo-tel hybrid product allows, condominium sales ,density and Income - fee asset management opportunities. Resales over and over. But conversion to residential would result in the highest land value. As current code allows for an equivalency factor of 2 to 1 within the Mixed Residential Future Land Use for hotel units under 450' and 1 to 1 for hotelunits between 750 and 1,000. As such, if allowed and confirmed, the beachfront parcel could be developed with up to 31 residential units, 22 more than what could be achieved by the underlying zoning. and the back parcel 8 to 16. So the highest value of the beachfront site is likely for redevelopment into a multi-story condo project