HomeMy WebLinkAbout23-761 JM Land, 526 Hercules Lane, Denton, TX
APPRAISAL REPORT
VACANT LAND
SOUTH SIDE OF HERCULES LANE,
APPROXIMATELY 200 FEET EAST OF SHADOW TRAIL
DENTON, DENTON COUNTY, TEXAS 72609
FOR
CITY OF DENTON
401 NORTH ELM STREET
DENTON, TEXAS 76201
16910 DALLAS PARKWAY, SUITE 100
DALLAS, TEXAS 75248
23-761
16910 Dallas Parkway, Suite 100, Dallas, Texas 75248 P: 214.340.5880 F: 214.340.5422
Appraisals@pyleswhatley.com
www.PylesWhatley.com
December 20, 2023
Ms. Captoria Brown
City of Denton
401 North Elm Street
Denton, Texas 76201
Re: An appraisal of vacant land, comprising of 2.432 acres located on the south side of Hercules
Lane, ±200 feet east of Shadow Trail (physically addressed as 526 Hercules Lane), Denton,
Denton County, Texas, 72609.
Ms. Brown:
At your request, we submit this appraisal report to estimate the market value of the above-referenced
property. We have inspected the property on-site and considered factors pertinent to and indicative of
value including the Denton and Denton County area characteristics, market area data and trends,
locational amenities, highest and best use, and other elements of value. This report conforms to USPAP
standards.
Methodology and terminology used throughout the report can be found in The Appraisal of Real Estate,
Fifteenth Edition, as published by the Appraisal Institute.
This appraisal provides an appraisal report in compliance with the Uniform Standards of Professional
Appraisal Practice (USPAP), as provided by the Appraisal Foundation and the federal financial
regulatory agencies. Our opinion of value for the subject is effective as of December 12, 2023, and the
methodology and terminology used throughout the report include the following:
Market Value, As Is on the Appraisal Date – An opinion of the market value of a property in
the condition observed upon inspection and as it physically and legally exists without
hypothetical conditions, assumptions, or qualifications as of the date the appraisal is prepared.
Our opinion of the market value for the subject is as follows:
Market Value Opinion
Fee Simple, As Is (Land) ± 2.432 acres 585,000$
23-761
Page 2
Ms. Captoria Brown
December 20, 2023
The following report sets forth a description of the subject property, along with a summary of the market
data considered and the conclusions derived from such data. Your attention is directed to this appraisal's
general assumptions and limiting conditions. Should you have questions concerning any portion of this
appraisal, please contact our office.
Respectfully submitted,
PYLES WHATLEY CORPORATION
Richard McBride
State of Texas Certification #TX-1380335-G
23-761
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
Name
Location
Denton, Denton County, Texas
Land Area 105,958 SF
Zoning
Reasonable Exposure Time 12 months
Reasonable Marketing Period 12 months
Market Value Indicators As Is As If Complete As If Stabilized
Cost Approach N/A $1,585,000 N/A
Sales Comparison Approach (Land Value)585,000$ -$25,000 $0
Income Capitalization Approach N/A $805,000 $830,000
Market Value Opinion
Fee Simple, As Is (Land) ± 2.432 acres 585,000$
Date of Appraisal Value
Date of Inspection
Date of Appraisal Report
R4 (Residential 4)
Vacant Land
December 12, 2023
December 12, 2023
December 20, 2023
S/s of Hercules Lane, approx. ±200 feet E of Shadow Trail
2.432 AC
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TABLE OF CONTENTS
LETTER OF TRANSMITTAL
SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS
PAGE
SCOPE OF WORK........................................................................................................................1
DEFINITION OF MARKET VALUE .........................................................................................5
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS ...............................................6
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS..................9
DEFINITIONS AND TERMS ....................................................................................................10
DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS ......................................13
REGIONAL MAP ........................................................................................................................22
SUBJECT AREA ANALYSIS ....................................................................................................23
LOCATION MAP ........................................................................................................................31
SUBJECT PROPERTY...............................................................................................................32
REAL ESTATE TAX ANALYSIS .............................................................................................34
AERIAL PHOTOGRAPHS ........................................................................................................35
PARCEL MAP .............................................................................................................................36
SUBJECT PHOTOGRAPHS .....................................................................................................39
HIGHEST AND BEST USE .......................................................................................................40
APPRAISAL PROCEDURE ......................................................................................................43
EXPOSURE TIME ......................................................................................................................45
LAND VALUATION ...................................................................................................................46
RECONCILIATION ...................................................................................................................57
REASONABLE MARKETING PERIOD .................................................................................58
APPRAISER’S CERTIFICATE ................................................................................................59
QUALIFICATIONS OF APPRAISERS....................................................................................60
ADDENDA
TAX INFORMATION
ZONING DESCRIPTION
STATE CERTIFICATION
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SCOPE OF WORK
1
Purpose of the Appraisal
SCOPE OF WORK
The purpose of this appraisal is to render an opinion of the market value of the subject property.
The report complies with the requirements of the Uniform Standards of Professional Appraisal
Practice, the Code of Ethics of the Appraisal Institute and Texas Appraiser Licensing and
Certification Board rules. The report is also prepared in accordance with the client's appraisal
guidelines.
All methodology utilized to arrive at the estimate of market value can be found in The Appraisal
of Real Estate, Fifteenth Edition, as published by the Appraisal Institute.
The subject property is being appraised as of December 12, 2023, and is subject to the market
influences and economic conditions which existed on that date. This date is also known as the
effective date and is the date of the opinions and conclusions found in this report. The property
was also inspected and photographed on December 12, 2023, which included a visual observation
of the site and any improvements. The date of this appraisal report is December 20, 2023.
Property Rights Appraised
Three primary property rights may typically be appraised. They are fee simple estate, leased fee
estate, and leasehold estate. These rights are defined as follows:
Fee Simple Estate - Absolute ownership unencumbered by any other interest or estate, subject
only to the limitations imposed by the government powers of taxation, eminent domain, police
power, and escheat.
Leased Fee Estate - An ownership interest held by a landlord with the rights of use and
occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the
leased fee are specified by contract terms contained within the lease.
Leasehold Estate - The interest held by the lessee (the tenant or renter) through a lease conveying
the rights of use and occupancy for a stated term under certain conditions.
In this report, we develop a market value opinion of the fee simple interest in the real property.
23-761
SCOPE OF WORK
2
Subject Identification & Legal Description
Property Type: 2.432 acres of vacant land
Ownership: Towne North Baptist Church
Subject Property Location: S/s of Hercules Lane, ±200 feet E of Shadow Trail
Denton, Denton County, Texas
Zip Code: 72609
Legal Description: All that certain tract or parcel of land, situated in the B.B.B. & C.
R. R. Survey, Abstract No. 186, in the City and County of
Denton, Texas
Subject History
According to Denton County Deed Records, the whole property, consisting of 7.313 acres
(318,554 square feet), was transferred to W. D. Buttrill, representing Towne North Baptist
Churbh (a misspelling of Towne North Baptist Church) from Trustees, Adam A. Krueger, Oliver
Miller, and Paul Reed on October 2nd, 1968 for an unknown price, and details are unknown about
this transaction. Sale prices are not a matter of public record in Texas; the appraiser attempted to
obtain the purchase price and other terms of the transaction without success. The subject is not
currently under contract. According to public records, there have been no other transfers of the
subject property within the past three years.
The subject is a 2.432-acre western portion of the larger parcel of land with improvements that is
under negotiations to be purchased by the City of Denton for developmental purposes. The
whole property is improved upon with a church and related facilities.
Please note that this information is included only to satisfy the requirements of USPAP. It is not
intended as a guarantee to the chain of title and a title search should be performed by a title
company should a definitive abstract be desired.
Intended Use, Intended User, and Client
The intended use of this report is for internal decision-making and negotiations for the City of
Denton’s officers, administrators, employees, assignees, and appropriate regulatory agencies. The
intended user, the City of Denton, is also the client. Any other user or uses are not intended or
authorized. Use of this appraisal for any other use or by another user or appraisal date may
invalidate the findings and conclusions.
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SCOPE OF WORK
3
Data Researched
For this report, the subject market was researched for all pertinent data relating to the appraisal
problem including: collecting and confirming data through brokers, appraisers, property owners,
lessees/lessors, and others familiar with the real estate market. The information provided by
these sources is deemed reliable, but is not guaranteed.
In addition, verifiable third-party sources were utilized including Costar Realty Information,
Roddy Information Services, Loopnet, and the Multiple Listing Service (MLS). Additional
market data were extracted from market reports and data circulated and purchased from Robert
G. Watts/RealtyRates.com, Real Estate Research Corporation, Price Waterhouse Coopers
Investor Survey, and M/PF Yieldstar. When third-party sources are utilized in the report, a
reference to the source is made. The information provided by these sources is deemed reliable,
but is not guaranteed.
Competency
The appraisers involved in this assignment have considerable experience in appraising this
property type. The appraisers are actively engaged in appraisal work in the geographical area of
the subject property. The company maintains a database on this area for similar properties. We
have adequate knowledge of the property type and location to meet the competency requirements
of the Uniform Standards of Professional Appraisal Practice.
In addition, other appraisers in the market would perform similar actions in the appraisal process
to fulfill the scope of work in this assignment and the appraisal meets or exceeds the expectations
of parties who are regularly intended users for similar assignments.
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SCOPE OF WORK
4
Scope of the Appraisal
Richard McBride and Joshua Moss performed all aspects of this report, which included the
following:
- Communicated with Captoria Brown, of City of Denton regarding the appraisal
assignment; a narrative appraisal report meets the client’s requirements.
- Researched the public records for data on the subject property, including zoning,
assessments, taxes, acreage, buildings and site improvements, and maps.
- A preliminary search of all available resources was made to determine market trends,
influences, and other significant factors pertinent to the subject property. The
property is identified previously in this report.
- Joshua Moss inspected the subject property and subject neighborhood on December
12, 2023; photographs were taken of the subject and comparable sales. Richard
McBride inspected the subject on a subsequent date. Although due diligence was
exercised while inspecting the property, the appraiser is not an expert in such matters
as soils, structural engineering, hazardous waste, etc., and no warranty is given as to
these elements. The owner or owner's representative was not present during the
inspection.
- Research and collection of data (land sales, escrow sales, and listings) were
performed as present in the market area and of sufficient quality to express an opinion
of value as defined herein. The appraisers examined data from Costar Realty
Information, Roddy Information Services, Loopnet, Multiple Listing Service (MLS),
county records, and owner interviews.
- An analysis of the highest and best use was completed.
- Gathered and analyzed the market data to reach an estimate of market value for the
fee simple interest of the subject, using the sales comparison approach to value.
- Assembled and wrote the narrative report, complete with maps, photos, and
supporting addenda.
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DEFINITION OF MARKET VALUE
5
The definition of market value is:
Definition of Market Value
“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, knowledgeable, and for self-interest, and assuming that
neither is under undue duress." *
* The Appraisal of Real Estate, 15th Edition, 2020, Appraisal Institute, Chicago, Illinois, p. 58
23-761
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
6
The Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics
and Standards of Professional Practice of the Appraisal Institute require the appraiser to "set
forth all assumptions and limiting conditions that affect the analyses, opinions, and conclusions
in the report”. In compliance therewith, and to assist the reader in interpreting this report, such
general assumptions and limiting conditions are set forth below. Specific assumptions, if any,
are referred to in the transmittal letter, and their location in the report is detailed.
General Assumptions and Limiting Conditions
Title is assumed to be marketable, free, and clear of all liens and encumbrances, easements, and
restrictions except those specifically discussed in the report. The property is appraised assuming
it to be under responsible ownership and competent management and available for its highest and
best use.
No opinion is intended to be expressed for legal matters or that would require specialized
investigation or knowledge beyond that ordinarily employed by real estate appraisers,
notwithstanding the fact that such matters may be discussed in the report.
No opinion is expressed on the value of subsurface oil, gas, or mineral rights, water rights, or
whether the property is subject to surface entry for the exploration or removal of such, except as
expressly stated.
The date of value to which the opinions expressed in this report apply is set forth in the letter of
transmittal. The appraiser assumes no responsibility for economic or physical factors occurring
at some later date, which may affect the opinions herein stated. The opinion of value is
considered reliable only as of the date of the appraisal.
The valuation is reported in dollars of U.S. currency prevailing on the date of the appraisal.
Maps, plats, and exhibits included herein are for illustration only as an aid in visualizing matters
discussed within the report. They should not be considered as surveys or relied upon for any
other purpose unless specifically identified as such.
All information and comments pertaining to this and other properties included in the report
represent the personal opinion of the appraiser, formed after examination and study of the subject
and other properties. While it is believed the information, estimates and analyses are correct, the
appraiser does not guarantee them and assumes no liability for errors in fact, analysis or
judgment.
Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraiser or the firm with which he is connected, or any reference to the Appraisal
Institute or to the MAI or SRA designation) shall be disseminated to the public through
advertising media, public relations media, sales media, or any other public means of
communication without written consent and approval of the undersigned.
The appraiser is not required to give testimony or to appear in court by reason of this appraisal,
unless prior arrangements have been made.
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GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
7
The distribution of the total valuation in this report between land and improvements applies only
under the existing, or proposed/completed program of utilization. The separate valuations for
land and buildings must not be used in conjunction with any other appraisal and are invalid if so
used.
Certain information concerning market and operating data were obtained from others. This
information is verified and checked, where possible, and is used in this appraisal only if it is
believed to be accurate and correct. However, such information is not guaranteed.
Opinions of value contained herein are opinions only. There is no guarantee, written or implied,
that the subject property will sell for such amounts. Prospective values are based on market
conditions as of the effective date of the appraisal. The appraiser is not responsible if
unforeseeable events alter market conditions subsequent to the effective date of the appraisal. As
a personal opinion, valuation may vary between appraisers based on the same facts.
No responsibility for hidden defects or conformity to specific governmental requirements, such
as fire, building, and safety, earthquake, or occupancy codes can be assumed without the
provision of specific professional or governmental inspections. While the general conditions of
the property were observed, no guarantee can be made concerning the individual components of
the structures including but not limited to the heating system, plumbing, electrical services, roof,
possible termite damage, or building foundation. This appraiser is not qualified to make a
complete inspection of any well or septic system, consequently, it was beyond the scope of this
report and no statements can be made concerning the adequacy or condition of these or other
systems.
No investigation - unless presented in other sections of this report - was made by the appraiser to
determine if asbestos, fiberglass, or synthetic mineral fiber products are present in improved
properties. The existence of such products, if any, would have to be determined by a qualified
inspector. It is assumed that there is no asbestos, fiberglass, synthetic mineral fiber products, nor
other contaminates present that would materially affect value.
The Americans with Disabilities Act (ADA) became effective January 26, 1992. I have not
made a specific compliance survey and analysis of this property to determine whether or not 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 of 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 on the value of the property. Since I have no
direct evidence relating to this issue, I did not consider possible noncompliance with the
requirements of ADA in estimating the value of the property.
No investigation - unless presented in other sections of this report - was made by the appraiser to
determine if any toxic materials are present on the subject tract. The existence of such materials,
if any, would have to be determined by a qualified inspector. It is assumed that no toxic
materials are present that would materially affect value or development costs.
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GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
8
A reasonable investigation was made to determine the existence of any underground storage
tanks (UST) on the subject site. If USTs are present on the subject site details are provided in
other sections of this report.
In the event the appraisal is based upon proposed improvements, it is assumed that the
improvements will be completed in substantial conformity with plans and specifications, which
have been furnished to the appraiser, and with good materials and workmanship. It is also
assumed that the proposed foundation and construction techniques are adequate for the existing
sub-soil conditions.
Due to the multiplicity of mathematical calculations used in standard appraisal practice, rounded
values, e.g., rounded to whole dollars or whole units of measure such as linear feet or square feet,
may result in inexact sums of components. The typical difference in such cases does not
materially affect the value conclusions of the appraisal report or the total compensation due to
the property owner.
Personal property, fixtures, or intangible items that are not real property, that are included in the
appraisal, are identified as Furniture, Fixtures, and Equipment, or FF&E.
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EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS
9
Extraordinary Assumptions and Hypothetical Conditions: The Uniform Standards of
Professional Appraisal Practice require the disclosure of hypothetical conditions and
extraordinary assumptions when employed in the development of an appraisal. As defined in the
Uniform Standards of Professional Appraisal Practice, an extraordinary assumption is “an
assignment-specific assumption as of the effective date regarding uncertain information used in
an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” As
defined in the Uniform Standards of Professional Appraisal Practice, a hypothetical condition is
“a condition, directly related to a specific assignment, which is contrary to what is known by the
appraiser to exist on the effective date of the assignment results, but is used for the purpose of
analysis.” The following extraordinary assumptions and hypothetical conditions are set forth for
appraisal purposes and no legal reasoning is intended. The reader should be aware, that, in the
event that any of the assumptions or conditions proves false or improperly applied, the
conclusions of this appraisal could be changed or invalidated.
EXTRAORDINARY ASSUMPTIONS
None.
HYPOTHETICAL CONDITIONS
None.
23-761
DEFINITIONS AND TERMS
10
Various terms and symbols are used throughout the appraisal report. The following are
definitions of the terms and explanations of the symbols used:
Anticipation – The perception that value is created by the expectation of benefits to be derived
in the future.
DEFINITIONS AND TERMS
Business Enterprise Value – The value contribution of the total intangible assets of a
continuing business enterprise such as marketing and management skill, an assembled
workforce, working capital, trade names, franchises, patents, trademarks, contracts, leases,
customer base, and operating agreements.
Deferred Maintenance – Items of wear and tear on a property that should be fixed now to
protect the value or income-producing ability of the property. These items are almost always
curable.
Going Concern, Market Value of the – The market value of an established and operating
business including the real property, personal property, financial assets, and the intangible assets
of the business.
Grantee – A person to whom property is transferred by deed or to whom property rights are
granted by a trust instrument or other document.
Grantor – A person who transfers property by deed or grants property rights through a trust
instrument or other document.
Highest and Best Use – The reasonably probable use of property that results in the highest
value.
Interim Use – The temporary use to which a site or improved property is put until a different use
becomes maximally productive.
Investment Value – The value of a property to a particular investor or class of investors based
on the investor’s specific requirements. Investment value may be different from market value
because it depends on a set of investment criteria that are not necessarily typical of the market.
Lessee – One who has the right to occupancy and use of the property of another for a period of
time according to a lease agreement.
Lessor - One who conveys the rights of occupancy and use to others under a lease agreement.
Market Price - The amount actually paid, or to be paid, for a property in a particular transaction.
Differs from market value in that it is an accomplished or historic fact, whereas market value is
and remains an estimate until proven. Market price involves no assumption of prudent conduct
by the parties, or absence of undue stimulus, or of any other condition basic to the market value
concept.
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DEFINITIONS AND TERMS
11
Market Rent - The rental income that a property would most probably command on the open
market as indicated by current rentals being paid for comparable space as of the effective date of
the appraisal.
Market Value - See Definition of Market Value section.
Present Value - The current monetary value. It is the today's cash lump sum, which represents
the current value of the right to collect future payments. It is the discounted value of aggregate
future payments.
Property Rights – An enforceable, legal claim to title of or interest in property. The rights may
be in real property or personal property.
Property Rights Adjustment – An adjustment made to the indicated property value if the value
of the property is not at market occupancy or market rent.
Surplus Land - In regard to an improved site, the land not necessary to support the highest and
best use of the existing improvements, but because of physical limitations, building placement,
or neighborhood norms, cannot be sold off separately. Such land may or may not contribute
positively to value and may or may not accommodate future expansion of an existing anticipated
improvement.
Utility – The ability of a product to satisfy a human want, need, or desire.
Abbreviations
SF = square feet PSF or /SF = per square foot FF = front feet
LF = lineal feet AC = acres ROW = right of way
RR = railroad CBD = central business district GI = gross income
EGI = effective gross income NOI = net operating income PV = present value
OAR or Ro = overall capitalization rate EDR or RE = equity dividend rate UA = usable area
GBA = gross building area RA = rentable area ± = plus, or minus from
amount stated
Source of Definitions: The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022.
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DEFINITIONS AND TERMS
12
STAGES OF VALUE
During the real estate development process, a property typically progresses from a state of
unimproved land to construction of improvements to stabilized occupancy. In general, the
market value associated with the property increases during these stages of development. After
reaching stabilized occupancy, ongoing forces affect the property during its life, including
physical wear and tear, changing market conditions, etc. These factors continually influence the
property’s market value at any given point in time. Opinions of value are developed on the basis
of one or more of the following:
Market Value, As Is on the Appraisal Date – An opinion of the market value of a property in
the condition observed upon inspection and as it physically and legally exists without
hypothetical conditions, assumptions, or qualifications as of the date the appraisal is prepared.
Market Value, As If Complete on the Appraisal Date – The market value of a property with
all construction, conversion, or rehabilitation hypothetically completed, or under other specified
hypothetical conditions as of the date of appraisal. With regard to properties wherein anticipated
market conditions indicate that stabilized occupancy is not likely as of the date of completion,
this opinion of value should reflect the market value of the property as if complete and prepared
for occupancy by tenants.
Prospective Future Value Upon Completion of Construction – The prospective future value
of a property on the date construction is completed, based upon market conditions forecast to
exist as of that completion date. The value estimate at this stage of value is stated in current
dollars unless stated otherwise.
Prospective Future Value Upon Reaching Stabilized Occupancy – The prospective future
value of a property at a point in time when all improvements have been physically constructed
and the property has been leased to its optimum level of long-term occupancy. The opinion of
value at this stage of value is in current dollars unless stated otherwise.
Retrospective Value, As of Appraisal Date – An opinion of the market value of a property that
is likely to have applied as of a specific historic date and as it physically and legally existed
without hypothetical conditions, assumptions, or qualifications as of the specific historic date.
The opinion of value at this stage of value is in current dollars unless stated otherwise.
The stage of value utilized in this report is as follows: Market Value, As Is on the Appraisal
Date.
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
13
The subject property in this report is located in the Dallas/Fort Worth Metropolitan Area, one of
the major financial and population centers in the nation. Therefore, an overview of the
Metroplex is appropriate.
DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
Downtown Dallas Downtown Fort Worth
Photograph Courtesy of the Dallas Convention & Visitors Bureau
CLASSIFICATION
The classifications represented in the Dallas/Fort Worth area are:
Metropolitan Statistical Area (MSA) and Metropolitan Division (MD)
With a population of over 7.9 million in 2022, Dallas/Fort Worth and the surrounding area is the
fourth largest MSA under this classification. The DFW MSA is comprised of two Metropolitan
Divisions: Dallas-Plano-Irving (or Dallas MD) on the east and Fort Worth-Arlington (or Fort
Worth MD) on the west. The Dallas MD includes Collin, Dallas, Denton, Ellis, Hunt, Kaufman,
and Rockwall Counties with a 2021 estimated population of over 5.2 million. The Fort Worth
MD is comprised of Johnson, Parker, Tarrant, and Wise Counties with a 2021 estimated
population of almost 2.7 million. The DFW MSA has grown 19.5% since 2010, with Collin,
Denton, Kaufman, and Rockwall experiencing the greatest growth.
= Dallas-Fort Worth Arlington MSA
Fort Worth-Arlington
Metropolitan Division
Dallas-Plano-Irving
Metropolitan Division
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
14
Demographics/Population
The DFW MSA is the fourth largest metro area in the nation and larger than 33 US states. Dallas
is the third largest city in Texas and ninth in the nation. Dallas County is the eight most
populous county in the nation at 2,634,796 persons. Fort Worth ranks as the fifth largest city in
the state of Texas and thirteenth in the United States. The city serves as the county seat for
Tarrant County which consists of a 2020 population of 2,108,659. The Dallas-Fort Worth-
Arlington metropolitan population is estimated at 7,607,031, according to the U.S. Census
Bureau’s 2020 population estimates. The MSA has more than 2,750,000 households.
The breakdown of growth by the four major counties of the MSA is as follows:
Source: Texas A&M University
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
15
The subsequent table illustrates growth trends, in total numbers and annualized percentages, of
all the major cities, suburbs, and statistical regions from 1990 to 2020 estimate, with a 2025
estimate.
AREA (est.)2025 (est.)2010-2020
Change
DFW MSA 3,984,349 5,156,410 6,366,542 7,607,031 7,933,166 19.5%
Dallas MD 2,616,281 3,444,276 4,230,520 5,105,563 5,336,337 20.7%
Collin County 264,079 491,676 782,341 1,043,748 1,113,890 33.4%
Dallas County 1,848,177 2,219,132 2,368,139 2,634,796 2,708,352 11.3%
Denton County 276,586 430,999 662,614 896,053 949,344 35.2%
Ellis County 85,126 111,294 149,610 186,805 197,688 24.9%
Hunt County 64,353 76,602 86,129 99,424 103,881 15.4%
Kaufman County 52,355 71,493 103,350 138,350 149,650 33.9%
Rockwall County 25,605 43,080 78,337 106,387 113,532 35.8%
Fort Worth MD 1,368,068 1,712,134 2,136,022 2,501,468 2,596,829 17.1%
Johnson County 97,189 126,822 150,934 177,419 185,623 17.5%
Parker County 64,749 88,447 116,927 144,637 152,899 23.7%
Tarrant County 1,171,454 1,448,085 1,809,034 2,108,659 2,183,646 16.6%
Wise County 34,676 48,780 59,127 70,753 74,661 19.7%
Allen 20,202 41,942 84,246 112,483 120,042 33.5%
Arlington 265,420 334,292 365,438 424,718 439,852 16.2%
Carrollton 81,605 111,272 119,097 149,246 156,481 25.3%
Dallas 1,005,904 1,182,168 1,197,816 1,347,927 1,389,035 12.5%
Denton 66,807 84,147 113,383 151,452 159,978 33.6%
Desoto 30,508 37,482 49,047 54,867 56,420 11.9%
Euless 37,990 44,311 51,277 59,644 61,795 16.3%
Flower Mound 16,893 51,414 64,669 87,817 93,116 35.8%
Fort Worth 457,068 545,356 741,206 866,418 897,232 16.9%
Frisco 8,766 35,022 116,989 157,469 167,621 34.6%
Garland 179,932 214,822 226,876 252,013 259,113 11.1%
Grand Prairie 98,558 126,730 175,396 198,258 204,324 13.0%
Irving 154,084 191,011 216,290 240,742 247,525 11.3%
Lewisville 45,229 77,544 95,290 127,901 135,514 34.2%
Mansfield 15,579 27,239 56,368 65,658 68,026 16.5%
McKinney 22,205 54,953 131,117 174,577 186,216 33.1%
Mesquite 101,162 125,619 139,824 155,314 159,701 11.1%
North Richland Hills 47,785 56,244 63,343 73,138 75,786 15.5%
Plano 128,980 223,856 259,841 345,144 368,315 32.8%
Richardson 76,953 92,063 99,223 116,859 121,586 17.8%
Rowlett 24,312 44,474 56,199 64,567 66,742 14.9%
Southlake 6,927 20,464 26,575 31,148 32,305 17.2%
Wylie 9,182 16,540 41,427 55,594 59,317 34.2%
POPULATION
ANNUALIZED GROWTH RATES
Source: EASIDemographics.com
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
16
EMPLOYMENT AND ECONOMIC BASE
According to Texas Workforce Commission, the following exhibit summarizes the labor
statistics for the DFW MSA related to employment, unemployment, and labor force. Recent
decreases in unemployment are a direct result of the recovery from the COVID-19 pandemic.
Prior to the onset of the pandemic, the area was experiencing stable growth.
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
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Local Companies
The metropolitan area boasts a long list of national and international corporate headquarters, with
many major companies relocating to DFW in the past twenty years. The availability of
reasonably priced land, lower living cost for employees, favorable climate, and reasonable
housing are great incentives.
In 2020, DFW MSA is now home to 24 of the Fortune 500 Companies. The Metroplex is the
fourth highest-ranking headquarters metro area behind New York, Chicago, and Houston. 72
major companies have moved their corporate HQ to Dallas since 2010 including Toyota North
America, Liberty Mutual Insurance, Omnitracts, Ameriflight LLC, Topgolf, MoneyGram, HMS
Holdings, and Six Flags Entertainment.
Below are the top ten employers located in North Texas:
Dallas/Fort Worth
Top Ten Employers No. of Local Employees
Baylor Scott & White Health 23,865
Texas Health Resources 23,466
Lockheed Martin 22,200
University of Texas Southwestern Medical Center 17,000
Medical City Healthcare 14,500
University of North Texas System 13,620
Bank of America 13,500
City of Dallas 13,114
Parkland Health and Hospital System 12,879
JPMorgan Chase 12,554
Source: Dallas Business Journal 2020 Book of Lists
Below are the top ten public-sector companies located in North Texas as rated by their 2019
revenues:
Dallas/Fort Worth
Top Ten Employers 2019 Revenue (billion)
Exxon-Mobil Corp. $264.94
McKesson Corp.. $214.32
AT&T, Inc. $181.19
Energy Transfer Equity LP $54.21
American Airlines Group Inc. $45.77
Southwest Airlines Co. $22.43
Tenet Healthcare Corp. $18.48
Kimberly-Clarke Corp. $18.45
D.R. Horton Inc. $18.09
HollyFrontier Corp. $17.49
Source: Dallas Business Journal 2020 Book of Lists
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
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Dallas/Fort Worth International Airport
The Dallas/Fort Worth International Airport, which opened January 1974, has had an enormous
impact on the economy of the DFW Metroplex. Located roughly 16 miles northwest of the
Dallas CBD, 19 miles northeast of the Fort Worth CBD, and employs approximately 60,000
people, the 17,183-acre space is the second largest airport facility in the nation. DFW is
currently ranked as “best large airport in America” by the Airports Council International.
The airport has 5 terminals, 7 runways, 182 gates, and 260 destinations, being 193 domestic
destinations and 67 international destinations. DFW Airport includes 12 instrument landing
approaches and 3 control towers giving it the capacity of the three New York airports combined.
DFW is the only airport where four planes can land simultaneously. Twenty-five passenger
airlines operate out of DFW, of which ten are commuter airlines, and fifteen are foreign flag
airlines.
DFW International Airport ranks eighth in the world, serving 75,066,956 passengers in 2019,
9,469,924 of which were international travelers. DFW also ranks 4th in the world in terms of
operations and 15th busiest airport in the world for passengers. Approximately 205,663
passengers travel daily through DFW Airport.
DFW Airport recently completed a $2.7 billion "Terminal Renewal and Improvement Program"
(TRIP), which encompassed renovations of three of the original four terminals (A, B, and E).
Terminal A was the first terminal to undergo these renovations, which were completed in
January 2017 at a cost of about $1 billion. Subsequently, the completion of Terminal E in
August 2017 and Terminal B in December 2017.
In May 2019, DFW airport (along with American Airlines) announced plans to build a sixth
terminal. The proposed project is estimated to cost $3.5 billion and expected to finish by 2025.
Along with the addition of up to 24 new gates to Terminal F, renovations of Terminal C are
planned to take place, being the final terminal requiring updating. The goal of the new terminal
is to "provide the region with the growth it needs to compete with international business centers,"
according to CEO of DFW Airport, Sean Donohue.
American Airlines has its largest hub at DFW Airport, with 67% of the passenger volume. DFW
Airport also provides an impressive global distribution center with several cargo carriers, 2.6
million square feet of cargo facilities, and a foreign trade zone with direct highway access.
Covering more than 250 acres, this area is developing into a full-service free trade zone.
Approximately $39 billion dollars across North Texas is attributable to airport traffic.
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DALLAS/FORT WORTH METROPOLITAN AREA ANALYSIS
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CONCLUSIONS
The foregoing city data and local area economic base activity are presented to establish growth
and income patterns, which materially affect real estate development, real estate sales volume
and value. The Dallas/Fort Worth area, based upon past performances and reasonable forecasts,
should continue an upward growth trend, both in population and employment, particularly in the
suburban cities.
The DFW economy continued to post stable numbers through 2020 and into 2021, with the
unemployment rate continuing to decline, being 4.7% reported in August 2021 as the COVID-19
pandemic comes to a close. The most recent value of 3.6% in October 2023 indicates a stabilization
of employment rates to an equilibrium. Housing continued to grow in 2021, with the DFW new-
home sales staying solid but were not as frantic as earlier in 2021. Sales have continued to slow in
subsequent years due to increasing mortgage rates. The market however remains one of the
strongest in the U.S. Homebuilders noted that tight lot supply and shortages of labor and materials
have elongated building-cycle times and are restraining activity. However, through August 2021,
DFW single-family permits were up 28.7 percent compared with the same period in 2020. Despite
the downturn in sales in the U.S. as a whole, the Dallas/Fort Worth metroplex remains one of the
busiest markets in single-family construction among large U.S. metros.
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REGIONAL MAP
22
REGIONAL MAP
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SUBJECT AREA ANALYSIS
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A market area, as defined in The Dictionary of Real Estate Appraisal, 7th Edition, copyrighted
2022, is:
SUBJECT AREA ANALYSIS
“The area associated with a subject property that contains its direct competition.”
When analyzing value influences, the focus is on the market area. A market area is defined in
terms of the market for a specific category of real estate and thus, is the area in which alternative,
similar properties effectively compete with the subject property in the minds of probably,
potential purchasers, and users. A market area can encompass one or multiple neighborhoods or
districts.
AREA ANALYSIS
The subject property is located in the Town of Denton, Denton County, Texas. The
descriptions of the subject vicinity are presented in the following pages.
DENTON COUNTY ANALYSIS
In 1846, the Texas State Legislature formed Denton County from portions of Fannin County.
The county was named for John B. Denton, a prominent minister of the era. The total area of
the county is 958 square miles, including over 70 square miles of lakes and streams. Lake
Lewisville, Ray Roberts Lake, and Lake Grapevine support extensive commercial facilities for
water recreational sports including seven campgrounds and a commercial base of boat sales,
storage and maintenance facilities. Lake Lewisville and Lake Grapevine were developed by the
Army Corp of Engineers as part of a larger flood control project for the North Central Texas
counties.
Demographics/Population
Demographic Forecast Data for Denton County
Population 428,080 643,572 862,332 1,085,343
Households 161,390 239,712 322,158 406,614
Employment 152,818 228,191 323,082 413,453
Source: North Central Texas Council of Governments
The 2023 population estimate for Denton County is 979,565, the ninth most populated county
in Texas.
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SUBJECT AREA ANALYSIS
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Economy & Employment
Denton County was originally a large agricultural center for North Central Texas, but the
economy has significantly diversified during the 1970s to the current time period. Agricultural
production still occurs, as beef, horse breeding, wheat, cotton, sorghum, peanuts, and nursery
products for the Dallas Metroplex are still significant to the county economy. Tourism has
grown with the constant development of the waterways in Denton County, and a significant
manufacturing base has been built, principally in electronics, computer related, and defense
related industry products.
Transportation
Primary access by road in the region is supplied by:
• Interstate Highway 35-north and south connecting with Dallas to the south (IH-35E),
Fort Worth to the south (IH 35-W), and Oklahoma to the north;
• US Highway 377 extends north and south, crossing US Highway 380 (east/west);
• US Highway 380 traverses the county east/west, connecting with the City of McKinney
in Collin County, roughly thirty miles to the east.
• Loop 288 provides a loop around the eastern part of the City of Denton connecting with
IH-35 on the north and on the south.
Denton County is located in the northern quadrant of the state of Texas, comprising the northern
portion of the Dallas/Fort Worth/Arlington Metropolitan Statistical Area. The locale is
approximately thirty miles northwest of the Dallas CBD and thirty miles northeast of the Fort
Worth CBD, with the Dallas/Fort Worth International Airport eighteen miles south. Adjoining
suburban neighborhoods are similar as to make-up and land uses. These include the suburban
cities of Lewisville and Flower Mound. Properties in the area compete with other similar market
areas.
The accessibility and location amenities of the above-delineated general area have been
significant in its development, redevelopment, and sustenance of commerce in the area. The
general area is well serviced by major freeways, benefits from high intensity commercial as well
as residential development, and is convenient to both the Dallas CBD and the Fort Worth CBD.
Traffic Routes
The traffic system is efficient and provides average access amenities to the area. Interstate
Highway-35 which travels north to south, is a four-lane freeway connecting the Denton area to
the cities of Dallas and Fort Worth. The other major freeway that services the neighborhood area
is Loop 288 which is a four-lane divided roadway which encircles the city of Denton connecting
Interstate 35, U.S. 377, and U.S. 380.
The primary north-south traffic route near the subject is US Highway 377, a four-lane divided
roadway. Additional east to west traffic routes includes Robinson Road, Ryan Road, Hickory
Creek Road, Hickory Hill Road, and Justin Road (FM 407).
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SUBJECT AREA ANALYSIS
25
Education
The schood district’s student population has grown by almost 28 percent since the 2007 bond
election. The current estimated student population is 32,255, and is projected to be 36,769 in
school year 2022/2023.
In addition to 24 elementary schools, eight middle schools, four high schools, the district has two
early childhood centers, an advance technology complex, and an alternative high school.
Higher education facilities include University of North Texas, Texas Woman’s University, and
North Central Texas College.
University of North Texas, with a current student population of 38,081, is a public research
university, with eleven colleges, two schools, and offers 38 doctoral degree programs.
Texas Woman’s University, with a current student population of 15,472, is a private co-
educational university with two health science center branches in Dallas and Houston. The
school has a Carnegie classification as a comprehensive research and doctoral university.
Medical
In addition to private practices, Denton County is served by numerous medical facilities which
includes The Heart Hospital Baylor Denton. The center offers comprehensive surgical and
interventional, noninvasive, diagnostic cardiac and vascular services, a nd cardiovascular
rehabilitation services to Denton County and the fast-growing North Texas region.
Additional facilities include Texas Health Presbyterian Hospital Denton, Medical City Denton
and Select Rehabilitation Hospital-Denton.
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SUBJECT AREA ANALYSIS
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Population and Economics
Denton is a larger medium sized city with a population of 136,268 people, and 25 constituent
neighborhoods. Denton is the 28th largest community in Texas.
The most prevalent occupations for people in the area are a mix of both white and blue collar
jobs. Overall the city is a mix of professionals, sales and office workers, and service providers.
Approximately 13.01% work in office and administrative support, 10.86% in sales jobs, and
10.57% in the teaching profession.
The aggregate U.S. unemployment rate was 3.7% in November 2023. The Bureau of Labor
Statistics reported an unemployment rate of 4.1% for the state of Texas, 4.0% for Denton
County, and 3.3% for the city of Denton for the same period. In comparison, the unemployment
rate in April 2020 was 12.9% for the state of Texas, 12.4% for Denton County, and 12.7% for
the city of Denton.
The metropolitan area boasts a long list of national and international corporate headquarters, with
many major companies relocating to DFW in the past twenty years. The availability of
reasonably priced land, lower living cost for employees, favorable climate, and reasonable
housing are great incentives.
Rayzor Ranch Development
Rayzor Ranch is a 410-acre master planned community located in Denton, Denton County,
Texas, at the intersection of Interstate Highway 35 and State Highway 380. The development
was started in 2008 and is currently still being developed as a cohesive, pedestrian friendly area
inspired by historical Texas Architecture. The development includes large anchor tenants such
as Walmart, and Sam’s Club, as well as, other large retail, junior anchors, specialty retailers,
restaurant and financial institutions. When completed, it will be the largest super-regional retail
development between Dallas, Texas and Oklahoma City, Oklahoma.
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SUBJECT AREA ANALYSIS
27
AREA DEMOGRAPHICS
The following Market Profile provided by Site To Do Business provides demographic and
income data for 1-mile, 3-mile, and 5-mile radii centered on the subject’s location.
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SUBJECT AREA ANALYSIS
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SUBJECT AREA ANALYSIS
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SUBJECT AREA ANALYSIS
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CONCLUSION
The transportation network in the area is good and surrounding land uses are considered to be
compatible and homogenous. The subject area is in a stable phase of development and proximity
to employment centers and quality schools and services with few improvements needing repairs
and/or renovations. Consequently, some new construction, as well as renovation of older
properties, is more likely to occur within the subject area in the near future. Additionally, there
appear to be no detrimental influences on the area that would inhibit the income-producing
capabilities of the improved properties. The long-term prospects for the area and the subject
property are positive.
No noticeable nuisances or hazards are in the area and the majority of improvements are in the early
to middle stages of economic life, and sufficient area services are accessible to service the
community.
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LOCATION MAP
31
LOCATION MAP
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SUBJECT PROPERTY
32
The subject is vacant land totaling 2.432 acres, located on the south side of Hercules Lane, ±200
feet east of Shadow Trail, Denton, Denton County, Texas. The physical address of the subject is
526 Hercules Lane.
SUBJECT PROPERTY
SITE DATA
Dimensions/Frontage
According to the survey provided, the subject tract is rectangular in shape and contains 105,958
square feet or 2.432 acres. The subject fronts the southern line of Hercules Lane for
approximately 213 linear feet. Hercules Lane is a two-lane, undivided street that transitions to a
four-lane divided street.
Access/Abutting uses
Access (ingress and egress) to the site is available via the southern line of Hercules Lane. The
subject abuts single-family residences (across Hercules Lane) to the north, Towne North Baptist
Church to the east, single-family residences to the south, and single-family residences to the
west.
Topography
The topography of the tract is mostly level and at street grade. The topography is not problematic
for development.
Flood Plain
According to FEMA flood hazard map 48121C0240G dated April 18, 2011, the subject is
determined to be outside the 100-year floodplain, being within Zone 'X'. There is a drainage
ditch on the western side of the subject that is in an elevated Zone ‘X’ flood plain. The drainage
of the site appears adequate. No guarantee is made that the site will or will not flood. A
hydrological study or survey is required for confirmation of flood-designated boundaries.
Reference the subsequent exhibits for a copy of the area flood map.
Environmental Hazards
To our knowledge, a Phase I Environmental Site Assessment has not been completed for the
subject property as of the date of inspection. The subject is appraised predicated on the absence
of detrimental environmental conditions. Should contaminants be present the conclusions in the
report would be invalidated.
Utilities/Community Services
All services are available to the subject. Electric service and telecommunication services are
provided by various providers. Atmos Energy provides the natural gas service. Water and sewer
services are provided by the City of Denton. Police and fire protection is provided by the City of
Denton. The property is located within the Denton Independent School District.
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SUBJECT PROPERTY
33
Zoning
The site is zoned R4 (Residential 4) by the City of Denton. The R4 (Residential 4) district is
intended to accommodate a variety of housing types on lots designed to encourage walking to
neighborhood-serving retail and other amenities such as parks and school facilities. Additional
information can be found in the addenda.
Soils, Development Limitation, and Productivity
This report assumes the soils are capable of supporting the structures, as numerous
improvements are located within the subject area and adjoining area. A study of the
development, limitations, and productivity was not completed in this appraisal report, as it is not
necessary to the scope of the appraisal.
Easements
A survey of the site is available for analysis. This valuation concludes that utility and access
easements typical of this property type are present and that no detrimental easement conditions
exist. This should not be considered a guaranty or warranty, however, that adverse easements do
not exist. Were the property to have any easements detrimental to the subject, the opinion of
value concluded herein may be invalid.
Deed Restrictions
To our knowledge, no deed restrictions affect or limit the use of the property; however, this
should not be considered as a guaranty or warranty that no such restrictions exist. Deed
restrictions are a legal matter: normally discoverable only by a title search by a title attorney. It
is recommended that a title search be made if any questions regarding deed restrictions arise.
Wetlands
No visual evidence was observed to indicate whether wetlands exist on the subject site.
Wetlands, as defined by Section 404 of the Clean Water Act, are those areas that are inundated
or saturated by surface or groundwater at a frequency and duration sufficient to support, and
under normal circumstances do support, a prevalence of vegetation typically adapted for life in
saturated soil conditions. Swamps, bogs, fens, marshes, and estuaries are subject to federal
environmental law.
CONCLUSIONS
The subject is vacant land totaling 2.432 acres. The subject is located in the northern portion of
the city of Denton.
Please refer to the subsequent exhibits and addenda for additional details.
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REAL ESTATE TAX ANALYSIS
34
The Texas legislature created a system of centralized appraisal districts for each Texas county so
that all real estate within a given county is valued for tax purposes through a standard appraisal
process. Property assessments are based on market value. Property valuations under the central
appraisal district system became effective in 1982.
REAL ESTATE TAX ANALYSIS
REAL ESTATE TAX ANALYSIS
In Denton County, the Denton Central Appraisal District is responsible for ad valorem tax
appraisals of all real estate within the county. Based on the ad valorem tax appraisal, various tax
districts levy annual taxes on property located within their respective districts. Typical taxing
jurisdictions include assessments from the county, city, and school districts in which the property
is located. The total ad valorem tax burden is the sum of the assessments for the various taxing
authorities.
The subject property is situated within the city of Denton and falls within the taxing jurisdictions
of the City of Denton, Denton County, and the Denton ISD. Pertinent 2023 tax rates for the
subject are detailed below.
City of Denton 0.560682$
Denton County 0.189485$
Denton ISD 1.159200$
Total 1.909367$
2023 (PROPOSED) TAX RATES (per $100)
The subject land includes a religious facility and is tax exempt.
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AERIAL PHOTOGRAPHS
35
AERIAL PHOTOGRAPHS
Source: Google Maps (Imagery date: Dec. 2023)
Source: Google Maps (Imagery date: Dec. 2023)
SUBJECT
SUBJECT
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PARCEL MAP
36
Parcel map
Source: Denton CAD
.
SUBJECT
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SURVEY
37
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FLOOD MAP
38
Source: FEMA
SUBJECT
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SUBJECT PHOTOGRAPHS
39
PHOTOGRAPHED ON DECEMBER 12, 2023
SUBJECT PHOTOGRAPHS
Viewing westerly at the subject Viewing southerly at the subject
Viewing easterly at the subject Viewing northwesterly at the subject
Viewing westerly along Hercules Lane;
subject on left
Viewing easterly along Hercules Lane;
subject on right
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HIGHEST AND BEST USE
40
One of the basic elements of real estate valuation is the theory of highest, best, and most
profitable use.
HIGHEST AND BEST USE
As defined in The Dictionary of Real Estate Appraisal, 7th Edition (Copyright 2022) and the
Appraisal of Real Estate, 15th Edition (Copyright 2020), highest and best use is defined as that
reasonably probable use of property that results in the highest value.
These definitions recognize that in cases where a site has existing improvements on it, the
highest and best use may very well be determined to be different from the existing use. The
existing use will continue, however, unless and until land value in its highest and best use
exceeds the total value of the property in its existing use.
Because the use of land can be limited by the presence of improvements, highest and best use is
determined separately for the land or site as though vacant and available to be put to its highest
and best use, and for the property as improved.
In appraisal practice, highest and best use analysis not only identifies the use of the property
expected to produce the maximum net present value, but also helps the appraiser select
comparable properties.
Four basic criteria are examined in estimating the Highest and Best Use of a property both as
vacant and as improved. These stages of analysis are as follows:
a) Physically Possible Use - the uses to which it is physically possible to put on the site in
question.
b) Legally Permissible Use - the uses that are permitted by zoning and deed restrictions on
the site in question.
c) Financially Feasible Use - the possible and permissible uses that will produce any net
return to the owner of the site.
d) Maximumly Productive Use - among the feasible uses, the use that will produce the
highest net return on the highest present worth.
The highest and best use of a specific parcel of land is not determined through subjective
analysis by the property owner, the developer, or the appraiser; rather, highest and best use is
shaped by the competitive forces within the market where the property is located. Therefore, the
analysis and interpretation of highest and best use is an economic study of market forces focused
on the subject property.
Market forces also shape market value, so the general data that are collected and analyzed to
derive an opinion of market value are also used to formulate an opinion of the property’s highest
and best use as of the appraisal date.
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HIGHEST AND BEST USE
41
SITE, AS VACANT
According to the survey, the subject site is rectangular in shape and contains 105,958 square feet
or 2.432 acres. The subject abuts single-family residences (across Hercules Lane) to the north,
Towne North Baptist Church to the east, single-family residences to the south, and single-family
residences to the west.
Physically Possible
In arriving at our opinion of highest and best use for the vacant subject site, it was first necessary
to determine if the physical characteristics of the site - such as soil conditions, topography,
shape, and frontage were favorable for development. Soil conditions in the region are adequate
for development provided appropriate engineering, design, and construction. According to
FEMA flood hazard map 48121C0240G, dated April 18, 2011, the subject is determined to be
outside the 100-year floodplain, being within Zone 'X'. There is a drainage ditch on the western
side of the subject that is in an elevated Zone ‘X’ flood plain. No guaranty is made that the site
will or will not flood. A hydrological study or survey is required for confirmation of flood-
designated boundaries. The tract is of sufficient size to be economically adaptable for
development and benefits from adequate frontage and accessibility. Thus, the physical
characteristics impose no limitations to possible development.
Legally Permissible
The site is zoned R4 (Residential 4) by the City of Denton. The R4 (Residential 4) district is
intended to accommodate a variety of housing types on lots designed to encourage walking to
neighborhood-serving retail and other amenities such as parks and school facilities. Additional
information can be found in the addenda.
Financially Feasible
As defined in The Dictionary of Real Estate Appraisal, Seventh Edition, 2022, is “the ability of a
property to generate sufficient income to support the use for which it was designed”.
Based on the land usage pattern of the surrounding area, the layout, location, and
frontage/visibility of the site, the most feasible use is considered to be for residential
development.
Maximally Productive
The most financially feasible use of the subject site would be for residential development. Based
on the location in Denton, residential development is considered the most logical.
Therefore, the maximally productive use of the subject, as vacant, would be for residential
development.
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HIGHEST AND BEST USE
42
SUMMARY OF HIGHEST AND BEST USE, AS VACANT
The highest and best use of the subject is for residential development.
Use: residential development
Timing: as demand warrants
Market Participants:
User: owner
Most Probable Buyer: owner, developer
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APPRAISAL PROCEDURE
43
DATA COLLECTION PROCESS
For purposes of this report, the subject market was researched for all pertinent data relating to the
appraisal problem as stated below. This process typically includes collecting and confirming
data through local real estate brokers, appraisers, property owners, lessee/lessors, and others
familiar with the local real estate market. The information provided by these sources is deemed
reliable but is not guaranteed.
The appraisal problem, as applied to the subject, is to determine the market value of the
applicable interest in the subject property. In addressing this problem, the principles of utility,
substitution, and anticipation are considered in the following valuation.
APPRAISAL PROCEDURE
The rendered opinion of market value of a property that is being appraised is accomplished by
the comparison and analysis of as many appraisal techniques as are appropriate. The following
approaches are generally used to produce value indications.
Cost Approach: The value indication by this approach is accomplished by estimating the
Reproduction (or Replacement) Cost New of the improvements and deducting accrued
depreciation from all causes, if any. The value of the land (by comparison) is then added to this
depreciated cost figure.
The cost approach is based on the premise that the value of a property can be indicated by the
current cost to construct a reproduction or replacement for the improvements minus the amount
of depreciation evident in the structures from all causes plus the value of the land and
entrepreneurial profit. This approach to value is particularly useful for appraising new or nearly
new improvements.
Sales Comparison Approach: The comparison of similar properties, which have sold in the
marketplace, is used to produce an indication of value. The comparison may be either direct or
indirect with commonly accepted units or elements of comparison.
The sales comparison approach is founded upon the principle of substitution, which holds that
the cost to acquire an equally desirable substitute property without undue delay ordinarily sets
the upper limit of value. At any given time, prices paid for comparable properties are construed
to reflect the value of the property appraised. The validity of a value indication derived by this
approach is heavily dependent upon the availability of data on recent sales of properties similar
in location, size, and utility to the appraised property.
Income Capitalization Approach: This approach to value is applicable to properties capable of
producing a net income stream. The net income stream is translated into a value indication
through the capitalization process.
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APPRAISAL PROCEDURE
44
The income capitalization approach is based on the principle of anticipation, which recognizes
the present value of the future income benefits to be derived from ownership in a particular
property. The income capitalization approach is most applicable to properties that are bought
and sold for investment purposes and is considered very reliable when adequate income and
expense data are available. Since income producing real estate is most often purchased by
investors, this approach is valid and is generally considered the most applicable when the
property being appraised was designed for, or is easily capable of, producing a satisfactory rental
income.
The strengths and weaknesses of each approach used are weighed in the final analysis. The
approach or approaches offering the greatest quantity and quality of supporting data are typically
emphasized, and the final opinion of value is correlated.
Under the parameters of this assignment, the following approaches to value were considered and
used in this appraisal:
Approach Considered Used
Cost Yes No
Sales Comparison Yes Yes
Income Capitalization Yes No
A preliminary survey of the property indicates the following:
- Sales of similar land use in the area are required. Sufficient data are available to arrive
at an indicated value of the land of the subject by market comparison.
Secondary sources of market data and investor criteria were utilized including Real Estate
Research Corporation’s Real Estate Report (RERC), Korpacz Real Estate Investor Survey, Real
Estate Investment Services (REIS), M/PF, ALN Systems, Cushman Wakefield Market Reports,
Marcus Millichap Market Reports, CB Richard Ellis Market Reports, Insignia Market Reports,
Jones Lang LaSalle Market Reports, and other industry publications.
APPRAISAL PROBLEM
The appraisal problem, as applied to the subject, is to determine the market value of the fee
simple interest in the subject property. In addressing this problem, the principles of utility,
substitution, and anticipation are considered in the following valuation.
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EXPOSURE TIME
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When the purpose of an assignment is to develop an opinion of market value, the appraiser must
also develop an opinion of reasonable exposure time linked to the value opinion.
EXPOSURE TIME
Reasonable exposure time is one of a series of conditions in most market-value definitions.
Exposure time is always presumed to precede the effective date of the appraisal.
Exposure time, as defined by the Uniform Standards of Professional Appraisal Practice, is the
opinion of the length of time the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date
of the appraisal. It is a retrospective opinion based upon an analysis of past events assuming a
competitive and open market.
The fact that exposure time is always presumed to occur prior to the effective date of the
appraisal is substantiated by related facts in the appraisal process, i.e. supply/demand conditions
as of the effective date of the appraisal, the use of current cost information, the analysis of
historical sales information (sold after exposure and after completion of negotiations between the
seller and the buyer), and the analysis of future income expectancy projected from the effective
date of the appraisal.
The opinion of the time period for reasonable exposure is not intended to be a prediction of a
date of sale or a one-line statement. Instead, it is an integral part of the analyses conducted
during the appraisal assignment. The opinion may be expressed as a range and can be based on
one or more of the following:
• Statistical information about days on market
• Information gathered through sales verification
• Interviews of market participants
Related information garnered through this process may include the identification of typical
buyers and sellers for the type of property involved and typical equity investment levels and/or
financing terms.
The reasonable exposure period is a function of price, time, and use, not an isolated opinion of
time alone. The answer to the question “what is reasonable exposure time?” should always
incorporate the answers to the question “for what kind of property at what value range?” rather
than appear as a statement of an isolated time period.
A reasonable exposure time for the subject property at the market value definition and market
value conclusion in this appraisal was developed by discussions with local market participants.
According to local brokers, appraisers, and informed market participants, the reasonable
exposure time for properties similar to the subject, is considered to be 12 months.
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LAND VALUATION
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Land value is directly related to highest and best use. The relationship between the highest and
best use and land value may indicate whether an existing use is the highest and best use of the
land.
LAND VALUATION
Land valuation can be accomplished by six procedures. These include sales comparison,
allocation, extraction, subdivision development, land residual, and ground rent capitalization.
Sales Comparison – Sales of similar, vacant parcels are analyzed, compared, and adjusted to
provide a value indication for the land being appraised.
Allocation – Either sales of improved properties are analyzed, and the prices paid are allocated
between the land and the improvements, or comparable sites under development are analyzed
and the costs of the finished properties are allocated between the land and improvements.
Extraction – Land value is indicated by subtracting the estimated value of the depreciated
improvements from the known sale price of the property. This procedure is frequently used
when the value of the improvements is relatively low or easily calculated.
Subdivision Development – The total value of undeveloped land is indicated as if the land were
subdivided, developed, and sold. Development costs, incentive costs, and carrying charges are
subtracted from the estimated proceeds of sale, and the net income projection is discounted over
the period required for market absorption of the developed sites.
Land Residual Technique – The land is assumed to be improved to its highest and best use.
The income attributable to the return on and of the capital invested in the improvements is
deducted from the net operating income. The result is the income attributable to the land. This
income is capitalized to derive an opinion of land value.
Ground Rent Capitalization – This procedure is used when land rents and land capitalization
rates are readily available, e.g., for appraisals in well-developed areas. Net ground rent, the net
amount paid for the right to use and occupy the land, is calculated and divided by a land
capitalization rate. Either actual or estimated rents can be capitalized using rates that can be
supported in the market.
The sales comparison method is the best method of developing an opinion of value of the
subject. In this method, known sales of similar-use land in the market area are compared to the
subject to arrive at an indication of value. In arriving at value conclusions, the tracts are
compared as to the rights conveyed, financing terms, sale conditions, market conditions,
location, and physical characteristics. This approach is used to value land that is vacant or
considered vacant for appraisal purposes.
The market was carefully researched for recent sales, leases, listings, or other transactions, which
would provide a valid basis for developing an opinion of the market value of the subject by
comparison. After reviewing and analyzing the sales, four sales were extracted from this sample
and utilized for the land valuation. These sales are detailed on the following pages.
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LAND VALUATION
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Land Sale No. 1
Location Adjacent to the southwest corner of McCormick Street and IH35E frontage road
Denton, Denton County, Texas
Legal Description Being all that certain tract or parcel of land situated in the Eugene Puchalski Survey,
Abstract No. 996, Denton County, Texas
Grantor Rebecca Jean Ginnings
Grantee Knights Court, LLC
Record Data
Date of Sale May 10, 2023
Document No.2023-48221
Consideration $900,000
Terms of Sale Cash (or cash equivalent) to the seller
Conditions of Sale Arm's-length
Land Area
Acres 3.060
Square Feet 133,280
Price Per SF $6.75
Zoning MN (Mixed-Use Neighborhood)
Topography Level; at grade; 100% Zone 'X'
Utilities All available
Shape Irregularly shaped
Comments The sale consist of three adjoining tracts of land wrapping the southwest corner of
McCormick Street and Interstate Highway 35E frontage road.The tract has approximately
175 feet of frontage along the western line of McCormick Street,approximately 150 feet of
frontage along the eastern line of Knight Street,and approximately 100 feet of frontage
along the southern line of Greenlee Street.
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LAND VALUATION
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Land Sale No. 2
Location E/s of Fallmeadow Street, ±340 feet north of Gardenview Street
Denton, Denton County, Texas
Legal Description Being a tract of land situated in the B.B.B.&C.R.R.CO.Survey,Abstract No.186,Denton
County, Texas
Grantor Short Family Partnership
Grantee MSW Partners, LLC
Record Data
Date of Sale November 23, 2022
Document No.
Consideration $1,344,000
Terms of Sale Cash (or equivalent cash) to the seller
Conditions of Sale Arm's-Length
Land Area
Acres 4.115
Square Feet 179,245
Price Per SF $7.50
Zoning R7 (Residential)
Topography Level; at street grade; 100% Zone 'X'
Utilities All available
Shape Rectangular
Frontage ±427 LF - Fallmeadow Street
Comments The property is located on the east side of Fallmeadow Street,approximately 340 feet north
of Gardenview Street.Surrounding uses are multifamily.The property is zoned R7,which is
a residential zone in the City of Denton.
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Land Sale No. 3
Location E/s of Mockingbird Lane, S of Audra Lane
Denton, Denton County, Texas
Legal Description Being all that certain tract of land situated in the M.E.P.&P.R.R.Company Survey,
Abstract Number 927,and all of a called 2.232 acre tract of land described in the deed from
R.L.Davis to Carl E.Allen and wife,Oleta B.Allen,as recorded in Volume 1002,Page
573,Deed Records and the remainder of a tract of land recorded in Document Number 2005-
45131,Real Property Records of said county,and described in Volume 1092,Page 287,of
said deed records
Grantor HK Golden Legacy, LLC
Grantee Ikechukwu Abana
Record Data
Date of Sale June 8, 2022
Document No.2022-86179
Consideration $350,000
Terms of Sale Cash (or equivalent cash) to the seller
Conditions of Sale Arm's-Length
Land Area
Acres 2.608
Square Feet 113,609
Price Per SF $3.08
Zoning R2 (Residential)
Topography Level; at street grade; 100% Zone 'X'
Utilities All available
Shape Irregularly Shaped
Frontage ±85 LF - Mockingbird Lane
Comments The sale consists of two adjoining tracts of land located along the eastern line of
Mockingbird Lane,approximately 140 south of Audra Lane.The tract has approximately 85
feet of frontage along the eastern line of Mockingbird Lane.
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LAND VALUATION
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Land Sale No. 4
Location W/s of East Sherman Drive, ±500 feet south of Chateau Court
Denton, Denton County, Texas
Legal Description Being a 3.778 acre tract of land situated in the J. Carter Survey, Abstract No. 268, in the
City of Denton, Denton County, Texas
Grantor Walker Builders, LLC
Grantee Domus Sherman Village, LLC
Record Data
Date of Sale April 21, 2021
Document No.
Consideration $700,000
Terms of Sale Cash (or equivalent cash) to the seller
Conditions of Sale Arm's-Length
Land Area
Acres 3.78
Square Feet 164,657
Price Per SF $4.25
Zoning MN (Mixed-Use Neighborhood)
Topography Mostly level; at street grade; 100% Zone 'X'
Utilities All available
Shape Irregularly Shaped
Frontage ±50 LF - East Sherman Lane
Comments The property is located on the west side of East Sherman Drive,approximately 500 feet
south of Chateau Court.The property is zoned Mixed-Use Neighborhood,which allows a
variety of different property types. The lot was purchased for investment purposes.
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LAND VALUATION
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SF AC
1 Adjacent to the southwest corner of McCormick Street and IH35E frontage road 133,280 3.060 6.75$ May-23
2 E/s of Fallmeadow Street, ±340 feet north of Gardenview Street 179,245 4.115 7.50$ Nov-22
3 E/s of Mockingbird Lane, S of Audra Lane 113,609 2.608 3.08$ Jun-22
4 W/s of East Sherman Drive, ±500 feet south of Chateau Court 164,657 3.780 4.25$ Apr-21
Subject S/s of Hercules Lane, approx. ±200 feet E of Shadow Trail 105,958 2.432
Date of Sale
Size
LAND SALES SUMMARY
Sale No. Location
Price
Per SF
The sales in the sample were selected from a larger group as being most similar in overall
physical characteristics as compared to the subject. The land sales occurred between April 2021
to May 2023, ranging in size from 113,609 square feet to 179,245 square feet, and ranging in
price from $3.08 to $7.50 per square foot. These sales represent the most recent, similar activity
in proximity to the subject.
ADJUSTMENT DESCRIPTIONS AND ANALYSIS
The first step in any comparative analysis is to identify which elements of comparison affect
property values in the subject market. Each of the basic elements of comparison must be
analyzed to determine whether an adjustment is required. If sufficient information is available, a
quantitative adjustment can be made.
Adjustments for differences are made to the price of each comparable property to make that
property equivalent to the subject in market appeal on the effective date of the opinion of value.
The magnitude of the adjustment made for each element of comparison depends on how much
that characteristic of the comparable property differs from the subject property. We have
considered all appropriate elements of comparison in the following discussions.
In the following analysis, consideration is given for rights conveyed, financing, sale, and market
conditions, location, and physical characteristics. Property rights conveyed, and financing are
basic components of sale. Rights conveyed should be identical and financing should be on a
cash equivalent basis. Sale conditions require analysis to determine any unusual characteristics.
Consideration of market conditions is necessary because of the cyclical nature of the real estate
market and continuous economic change. The location adjustment considers factors such as
type, compatibility, quality, desirability, and accessibility of area development. Comparison of
utility considers such factors as zoning, size, and frontage.
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COMPARATIVE ANALYSIS
In analyzing the sales, comparative analyses are used to identify differences between the subject
and the comparable sales. The difference in selling price is allocated to the elements of
comparison, which the market data indicates contribute to different prices. While we have no
direct support for these selected adjustments, an analysis of similar properties requires
adjustment for these elements to be applied. The following table is a summary of comparable
elements and their associated adjustments.
Adjustment Category
Frontage
Exposure
Size
Zoning 5%; for the difference between zoning districts and uses
5-10%; for the difference between inferior and superior exposure
SUMMARY OF SELECTED ADJUSTMENTS
Selected Adjustments
5%; for adjustment for each doubling/halving in size
10%; for the difference between inferior and superior frontage
These adjustments are not intended as exact measurements but are used to define accurately the
range of values indicated by the market.
RIGHTS CONVEYED, FINANCING, SALE, MARKETING CONDITIONS, AND LOCATION
Rights Conveyed
When property rights are sold, they may be the sole subject of the contract or the contract may
include other rights, less than all of the real property rights, or even another property or
properties. Before the price of a comparable sale property can be used in sales comparison
analysis, the appraiser must first ensure that the sale price of the comparable property applies to
property rights that are similar to those being appraised. To do so, adjustments may be required
before specific differences in the physical real estate can be compared. The sales were evaluated
and no adjustments for sale conditions are considered necessary for Sale Nos. 1, 2, 3, and 4.
Financing
The transaction price of one property may differ from that of an identical property due to
different financing arrangements. The cost of financing includes the interest rate and any points,
discounts, equity participations, or other charges that the lender requires to increase the effective
yield of the loan. The cost and availability of credit for real estate financing influence both the
quantity and quality of real estate demanded and supplied. Additional financing adjustments
could be made based on owner financing, favorable financing terms, or assumptions. The sales
were purchased with cash or third-party financing, which requires no adjustments.
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LAND VALUATION
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Sale Conditions
Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller.
Sales where the conditions significantly affect transaction prices are labeled non-arm’s length
transactions. Any sales that reflect unusual sale conditions are adjusted accordingly and the
circumstances of these non-arm’s length transactions are detailed on the sale summary pages.
The sales were evaluated and no adjustments for sale conditions are considered necessary for the
comparable sales.
Market Conditions
The sales occurred between April 2021 and May 2023. Adjustments for market conditions are
applied if property values have increased or decreased since the transaction dates. Based on our
observations and analysis, real estate has appreciated approximately 5% annually. Each sale is
adjusted accordingly for time.
Location
An adjustment for location within a market area may be required when the locational
characteristics of a comparable property are different from those of the subject property. Most
comparable properties in the same market area have similar locational characteristics, but
variations may exist within that area of analysis. A property’s location is analyzed in relation to
the location of other similar properties. All sales are similar to the subject in this regard and are
not adjusted.
PHYSICAL
Access
Access has significant bearing on real estate in the market. Access is defined as the points, or
number of points available for ingress/egress to the subject site or ease of access to the site from
abutting roadways. Sale properties are adjusted based on their inferiority/superiority as
compared with the subject. Sale 1 has access from three separate streets. A -5% adjustment is
warranted. All remaining comparable sales are similar to the subject in this regard. No
adjustments are warranted.
Frontage
Frontage is the number of feet of frontage along the subject roadway or roadways. Sale
properties are adjusted based on their inferiority/superiority as compared with the subject. The
subject has approximately 213 feet of frontage along Hercules Lane. Sales 3 and 4 both have
very limited frontage as compared to the subject. A +10% adjustment is warranted for both.
Sales 1 and 2 are similar to the subject in frontage and are not adjusted.
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Size
The size adjustment is based on the premise that, in general, the larger the property, the less its
selling price on a per unit basis. Inasmuch as there was insufficient data to perform a reliable paired
sales analysis isolating the variable of size, the adjustments were supported via conversations with
local real estate market participants, including brokers and buyers. The adjustment for the larger
properties recognizes that there are typically fewer prospective buyers for a larger versus smaller
properties, creating lower demand and reducing the unit value. Conversely, there is a greater number
of prospective investors/users that are able to acquire a smaller and presumably, less expensive
development, thereby increasing demand and correspondingly the unit value.
The subject site is comprised of 2.432 acres. The size adjustment is based on the premise that, in
general, the larger the tract, the less its selling price on a per unit basis A 5% adjustment is used
for this analysis. Sale Nos. 1, 2, 3, and 4 are adjusted +2%, -9%, +1%, and -9% respectively for
size.
Zoning
The site is zoned R4 (Residential) by the City of Denton. Comparable sales 1 and 4 are located in
mixed use neighborhood zoning areas. This allows the lots to be developed in more uses than the
subject. A -5% adjustment is warranted for each. Sales 2 and 3 are located in the R7 and R2
residential districts, respectively, which are similar to the subject. No adjustments are warranted.
Utilities
All utilities are available to the subject. All sales are also located in Denton and are similar to the
subject in access to utilities. No adjustments are warranted.
Topography
The subject is mostly level; the subject is determined to be outside the 100-year floodplain.
There is a drainage ditch on the western side of the subject that is in an elevated Zone ‘X’ flood
plain. All sales are similar in topography as compared to the subject. No adjustments are
warranted.
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SUMMARY OF ADJUSTMENTS
The previously described adjustments are applied in the following table:
Sale No.1 2 3 4
No. of Acres 3.060 4.115 2.608 3.780
Size SF 133,280 179,245 113,609 164,657
Sale Date May-23 Nov-22 Jun-22 Apr-21
Sale Price $900,000 $1,344,000 $350,000 $700,000
Sale Price Per SF $6.75 $7.50 $3.08 $4.25
Rights Conveyed -0--0--0--0-
Financing -0--0--0--0-
Sale Conditions -0--0--0--0-
Market Conditions 3%5%8%13%
Adjusted Price $6.95 $7.88 $3.33 $4.80
Location -0--0--0--0-
Access -5%-0--0--0-
Frontage -0--0-10%10%
Size 2%-9%1%-9%
Zoning -5%-0--0--5%
Utilities -0--0--0--0-
Topography -0--0--0--0-
Net Adjustment -8%-9%11%-4%
Adjusted Price/SF $6.39 $7.17 $3.70 $4.61
LAND SALES ADJUSTMENTS
LAND VALUE CONCLUSION
After adjustments, the comparables range in price from $3.70 to $7.17 per square foot with an
adjusted mean of $5.47 per square foot and an adjusted median of $5.50 per square foot. These
comparable sales are representative of land activity in the area. Considering the adjusted sales,
and giving emphasis to the adjusted mean and median, the indicated value of the subject site is
$5.50 per square foot or $585,000, rounded.
No. of Square Feet $/SF Indicated Value
105,958 x $5.50 =582,769$
Rounded 585,000$
Total Land Area
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RECONCILIATION
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In the preceding sections of this report, the area data and trends, location amenities, highest and
best use, and other elements of value are discussed.
RECONCILIATION
Cost Approach N/A
Sales Comparison Approach $585,000
Income Capitalization Approach N/A
Reconciled Value $585,000
SUMMARY OF APPROACHES
In the final analysis, considering the approaches to value, each approach is analyzed in terms of
the quantity and quality of the data used in each approach and applicability to estimate a reliable
value.
Cost Approach
The cost approach is not germane to the valuation, as the subject is a tract of land. Overall, the cost
approach is not an applicable valuation method for this analysis.
Sales Comparison Approach
For the valuation of the subject, sufficient sales of tracts of land with similar utility are available
to arrive at an opinion of value of the land by market comparison. The sales used are adjusted to
reflect current market conditions and conditions of sale.
Income Capitalization Approach
The income capitalization approach does not apply to the subject property analysis, as the subject
is not leased or considered income-producing.
CONCLUSION
In conclusion, the sales comparison approach is the most reliable and applicable valuation
approach. The cost and income capitalization approaches are not utilized in this analysis. The
sales comparison is used to establish a subject value, due to both the quality and quantity of the
available sale data, and provides an excellent basis for valuation. Based on this type of property,
our final opinion of the fee simple interest, market value of the subject is as follows:
Market Value Opinion
Fee Simple, As Is (Land) ± 2.432 acres 585,000$
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REASONABLE MARKETING PERIOD
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The request to provide a reasonable marketing time opinion exceeds the normal information
required for the conduct of the appraisal process and is treated separately from the process.
REASONABLE MARKETING PERIOD
Reasonable marketing time, as defined by the Uniform Standards of Professional Appraisal
Practice, is an opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value or at a benchmark price during the period immediately
after the effective date of the appraisal. Marketing time differs from exposure time, which is
always presumed to precede the effective date of an appraisal.
The development of a marketing time opinion uses some of the same data analyzed in the
process of developing a reasonable exposure time opinion as part of the appraisal process and is
not intended to be a prediction of a date of sale or a one-line statement. It is an integral part of
the analyses conducted during the appraisal assignment. This opinion may be expressed as a
range or a number. The opinion can be based on one or more of the following:
• statistical information about days on market
• information from data collection services
• information gathered through sales verification
• interviews of market participants
• anticipated changes in market conditions
Related information of market conditions that may affect marketing time includes identification
of typical buyers and sellers for the type of real estate involved and typical equity investment
levels and financing terms. Reasonable marketing time is a function of price, time, use, and
anticipated market conditions, such as changes in the cost and availability of funds and is not an
isolated opinion of time alone. The price that may be achieved in the future, at the end of the
marketing period, may or may not be equal to the current appraised value opinion, depending on
potential changes in the physical real estate, demographic and economic trends, the real estate
market, tenancy, property operations, and the effectiveness of the marketing program, among
other factors.
A reasonable marketing period for the subject property at the market value opinion stated above
is developed in the following manner:
The opinion of value reached herein is considered supportable and reliable. It is based
upon recent market data including conversations with area brokers and principals
involved in the comparable sales utilized in the valuation of the subject.
According to local brokers, appropriately priced similar properties generally sell within time
periods ranging from approximately 8 to 24 months. This opinion was supported by the
marketing times reported by several of the parties to the improved comparable sales utilized
herein. A reasonable marketing time for the subject property, priced in accordance with the
market value opinion concluded in this report, is considered to be 12 months. A reasonable
exposure time for the subject property, priced in accordance with the market value opinion
concluded in this report, is considered to be 12 months.
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APPRAISER’S CERTIFICATION
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The undersigned certify that, to the best of our knowledge and belief:
APPRAISER’S CERTIFICATE
• 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 my 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 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 acceptance of this assignment.
• We have no bias concerning 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.
• Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the Uniform Standards of Professional Practice.
• The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal
Institute.
• As of the date of this appraisal, Richard McBride and Joshua Moss have completed the Standards and Ethics
Education Requirements for Practicing Affiliates of the Appraisal Institute.
• Joshua Moss made a personal inspection of the property which is the subject of this report. Richard McBride
inspected the subject on a subsequent date.
• No one provided significant real property appraisal assistance to the persons signing this certification.
PYLES WHATLEY
Richard McBride Joshua Moss
State of Texas Certification #TX-1380335-G State of Texas Certification #TX-1343009-T
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QUALIFICATIONS OF APPRAISERS
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QUALIFICATIONS OF
RICHARD C. MCBRIDE
Appraisal assignments include retail centers, existing and proposed office buildings, commercial
and industrial properties, self-storage facilities, automobile dealerships, single-family and multi-
family residential properties, and vacant land. Additional consulting assignments include
condemnation and right-of-way work, and other various consulting assignments.
Experience
Appraiser with Pyles Whatley Corporation since 2007; partner in the company
since 2018
Over fifteen years’ experience in appraising real property interests in Texas and
Oklahoma.
Education
Numerous Appraisal Courses offered by the Appraisal Institute
Right-of-way courses offered by the International Right of Way Association Richland College
o Engineering
o General studies
Professional
Texas Appraiser Licensing and Certification Board
o Certified General Real Estate Appraiser #TX-1380335-G
Appraisal Institute
o Practicing Affiliate
International Right of Way Association, Chapter 36, Member
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QUALIFICATIONS OF APPRAISERS
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JOSHUA MOSS
Appraisal assignments include land development, industrial buildings, multi-family residential,
retail and office buildings.
Experience
• Commercial appraisal in the state of Arkansas from 2017 to 2018.
• Non-Licensed appraisal review in the state of Texas in 2021.
• Commercial appraisal in the state of Texas from 2021 to present.
Education
• Bachelor of Arts – Chemistry, Arkansas State University, 2016
• Completed various courses and continuing education courses for trainee certification and
fulfillment of license requirements.
Professional
• State of Texas, Appraisal Trainee #1343009-T
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ADDENDA
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TAX INFORMATION
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ZONING DESCRIPTION
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STATE CERTIFICATION
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