HomeMy WebLinkAbout869 S Woodrow Lane - Appraisal Report A REAL PROPERTY APPRAISAL REPORT
OF
THE FEE SIMPLE INTEREST IN AN
OFFICE/WAREHOUSE BUILDING
869 S. WOODROW LANE
DENTON, TEXAS 76205
LEGALLY DESCRIBED AS
LOT 1, BLOCK A,
TEJAS TESTING ADDITION,
CITY OF DENTON, DENTON COUNTY, TEXAS
PREPARED FOR:
Mr. Danny McCormack
McCormack Commercial
720 N. Post Oak Street, Suite 265
Houston, TX 77024
EFFECTIVE DATE OF THE APPRAISAL:
August 19, 2024
PREPARED BY:
600 E. EXCHANGE AVENUE | SUITE 200 | FORT WORTH, TEXAS 76164
869 S. WOODROW LANE, DENTON, TEXAS 76205
TABLE OF CONTENTS PAGE NO.
SECTION I - APPRAISAL REPORT ............................................................................................. 1
Transmittal Letter .................................................................................................................... 2
Summary of Salient Facts & Conclusions ............................................................................ 3
Scope of Work ......................................................................................................................... 4
Appraisal Process ................................................................................................................... 4
Competency Rule .................................................................................................................... 5
Prior Services........................................................................................................................... 5
Jurisdictional Exception Rule ................................................................................................ 5
Extraordinary Assumptions ................................................................................................... 5
Hypothetical Condition ........................................................................................................... 6
Definition of Market Value ...................................................................................................... 6
Definition of Marketing Time .................................................................................................. 7
Definition of Exposure Time ................................................................................................... 7
Date of the Report.................................................................................................................... 7
Effective Date of Appraisal ..................................................................................................... 7
Identity of the Client and Intended Users of the Report ...................................................... 8
Purpose and Intended Use of the Appraisal ......................................................................... 8
Property Rights Appraised ..................................................................................................... 8
Statement of Ownership, Sales History and Status ............................................................. 8
Area/Market Area Analysis ..................................................................................................... 8
Site Analysis ............................................................................................................................ 9
Highest and Best Use Analysis ............................................................................................ 11
Market Value Estimate of the Property ................................................................................ 13
SECTION II – EXHIBITS….. ......................................................................................................... 22
SECTION III – COMPARABLE DATA......................................................................................... 34
SECTION IV – CERTIFICATION OF THE APPRAISAL ............................................................ 46
SECTION V – ASSUMPTIONS AND LIMITING CONDITIONS ................................................. 48
SECTION VI – QUALIFICATIONS OF THE APPRAISERS ....................................................... 51
869 S. WOODROW LANE, DENTON, TEXAS 76205 1
SECTION I - APPRAISAL REPORT
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 2
August 28, 2024
Mr. Danny McCormack
McCormack Commercial
720 N. Post Oak Street, Suite 265
Houston, Texas 77024
SUBJECT: OFFICE/WAREHOUSE PROPERTY – 869 S. WOODROW LANE,
DENTON, TEXAS 76205
Dear Mr. McCormack,
Pursuant to your request, we have made an investigation into the real estate market in order to arrive at an
estimate of the fee simple market value of the above referenced real property.
This is an Appraisal Report, which is intended to comply with the reporting requirements set forth under
Standards Rule 2-2(a) of USPAP for an Appraisal Report. Additional supporting documentation concerning
the data, reasoning, and analyses is retained in the appraiser's file. The depth of discussion contained in
this report is specific to the needs of the client. The appraiser is not responsible for unauthorized use of
this report.
This appraisal has been made in conformity with and is subject to the requirements of the Code of
Professional Ethics of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice,
as promulgated by the Appraisal Standards Board of The Appraisal Foundation, the Interagency Appraisal
and Evaluation Guidelines (2010), and is in conformity with Federal Financial Institutions Reform Recovery
(FIRREA).
We have used the hypothetical condition within this report that assumes that the zoning of the subject can
be changed to allow for light industrial use prior to a possible sale or transfer of the property. The use of
this hypothetical condition might have affected our assignment results.
It is our conclusion, subject to the assumptions and limiting conditions and based on the accompanying
report, the estimated fee simple market value of the subject “as is” as of August 19, 2024, is as follows:
$ 2,260,000
TWO MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS
Respectfully submitted,
Wynn Tucker
State of Texas Certification #TX-1339855-G
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 3
SUMMARY OF SALIENT FACTS AND CONCLUSIONS
869 S. WOODROW LANE, DENTON, TEXAS 76205
Location The subject is located along the east side of S. Woodrow
Lane, between Shady Oaks Drive and Dutchess Drive, city
of Denton, Denton County, Texas.
The property has a physical address of 869 S. Woodrow
Lane, Denton, Texas 76205.
Legal Description Lot 1, Block A, Tejas Testing Addition, City of Denton,
Denton County, Texas
Zoning Designation “PF” – Public Facilities
Effective Date of the Appraisal August 19, 2024
Date of the Report August 28, 2024
Owner of Record (Fee Simple Estate) City of Denton
Client McCormack Commercial
Intended Use The intended use of the appraisal is to assist our client
McCormack Commercial, and/or their assigns in arriving at
a value of the subject for a possible swap/exchange of
properties that includes the subject.
Intended Users The intended user of this report is our client, McCormack
Commercial, and/or their assigns.
Approximate Land Area 84,681 Square Feet or 1.94 Acres
Improvements The subject is improved with a single-tenant,
office/warehouse building and associated site
improvements. The subject has a gross building area of
approximately 15,115 square feet. The building was
constructed in 1994, with an addition in 2008/2009, was
renovated in 2017, has been well maintained since and is in
good condition. Site improvements consist of concrete
paved walks, drives and parking areas, landscaping, fencing
secured parking/outside storage area, etc.
Floodplain Map Panel and Date 48121C0380G, effective April 18, 2011
Floodplain Designation No portion of the subject is located within a flood hazard.
Highest and Best Use as Vacant Industrial
Highest and Best Use as Improved Continued use of the existing improvements for industrial
use.
Fee Simple Market Value “As Is” $2,260,000
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 4
SCOPE OF WORK
As part of this appraisal, we have completed the following steps to gather, confirm, and analyze
the data.
❖ Utilized the appraisal process to estimate the market value of the fee simple estate of the
subject.
❖ Physically inspected the subject and the surrounding market area. The inspection of the property
is limited to those things readily observable without the use of special testing or equipment.
❖ Collected factual information about the subject and the surrounding market area and confirmed
that information with various sources.
❖ Gathered market information on comparable properties, offerings, and other market
developments. Sources of data include, but are not limited to, County deed records, County
Appraisal District data, owner’s representatives, brokers, and other knowledgeable individuals
active in the area. Information was also obtained from the Multiple Listing Service, Commercial
Appraisers Data Association, compstack.com, loopnet.com, crexi.com and Co-Star.
❖ Analyzed market information and developed indications of value under the necessary
approaches to value for a credible assignment result.
❖ The appraisal of real estate typically employs three traditional valuation methods: the sales
comparison approach, cost approach, and income approach. The property is currently improved
with a single tenant, office/warehouse/industrial building and associated site improvements.
The appraisers have utilized the sales comparison approach and income approach in order to
develop an opinion of fair market value. The cost approach was considered, however, due to
the age of the subject improvements, this approach to value was considered to be less reliable
than the completed approaches to value and was not utilized in our valuation. It is also our
opinion that our appraisal peer community would also agree that the elimination of the cost
approach in the valuation of the subject will result in a credible valuation of the property, and if
we did complete this approach, very little weight would have been placed on the cost approach
in our final reconciliation.
❖ Prepared an Appraisal Report in accordance with Statement Rule 2-2(a) of the Uniform
Standards of Professional Appraisal Practice, 2024 Edition summarizing our analyses, opinions
and conclusions.
APPRAISAL PROCESS
The appraisal process is a systematic approach, whereby the appraiser researches, collects, and
analyzes data pertaining to the property in order to develop an estimate of market value for the real
property interest being appraised. The first step in this process is an inspection and investigation
of the subject site and the market area in which it is located.
The appraiser then researches and collects data pertaining to comparable properties that have
sold, are contracted to sell or listed for sale in the market. If the property is income-producing, data
is collected pertaining to income and operating expenses for the subject and similar properties. For
improved properties, the cost approach is applied by adding the value of the land to the depreciated
value of the improvements, including entrepreneurial profit.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 5
As of the date of value, the subject property is improved with a single tenant,
office/warehouse/industrial building and associated site improvements. The building was
constructed in 1994, with an addition in 2008/2009, was renovated in 2017, has been well
maintained since and is in good condition. The property is currently owner occupied by the City of
Denton.
The sales comparison approach and income approach were used to estimate the market value of
the property. These approaches to value were considered to be the best indicators of value for a
property similar to the subject. The cost approach was considered, however, due to the age of the
subject, the cost approach was considered to not be applicable in the valuation of the subject. The
cost approach was considered to be less reliable than the income approach and sales comparison
approach and buyers, sellers, brokers, investors and other market participants would not typically
consider the cost in their decision making for this type of property. The exclusion of the cost
approach results in a credible valuation of the property and would also likely be excluded by our
peers in the commercial appraisal industry. Additionally, if this approach to value was completed,
it would be given the least weight in our final reconciliation.
COMPETENCY RULE
We have the ability to properly identify the problem to be addressed; the knowledge and experience
to complete the assignment competently; and, recognize and comply with the laws and regulations
that apply to the appraisers and the assignment.
REPORT OPTION
This is an Appraisal Report in accordance with the Uniform Standards of Professional Appraisal
Practice (2024 Edition).
PRIOR SERVICES
We have not performed any services regarding the subject property within the three-year period
immediately preceding acceptance of the assignment, as an appraiser or in any other capacity.
JURISDICTIONAL EXCEPTION RULE
If any applicable law or regulation precludes compliance with any part of the Uniform Standards of
Professional Appraisal Practice, only that part of the Uniform Standards of Professional Appraisal
Practice becomes void for the assignment.
EXTRAORDINARY ASSUMPTIONS
“Extraordinary Assumption,” is defined as:
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.
Uniform Standard of Professional Appraisal Practice, 2024 Edition (The Appraisal Foundation),
page 4.
No extraordinary assumptions were utilized within this report.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 6
HYPOTHETICAL CONDITION
“Hypothetical Condition,” is defined as:
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.
Uniform Standard of Professional Appraisal Practice, 2024 Edition (The Appraisal Foundation),
page 4.
We have used the hypothetical condition within this report that assumes that the zoning of the
subject can be changed to allow for light industrial use prior to a possible sale or transfer of the
property. The property is currently owned and occupied by the city of Denton and is zoned to allow
for “public facilities”. This zoning classification has very limited uses that would be suitable for
private owners or investors. As per Mr. Tom Gramer, Facilities and Fleet Director of the city, it is
his opinion that a change of zoning that would allow light industrial uses prior to a possible sale or
transfer of the property would be reasonable. The use and zoning of properties in the immediate
area are mostly industrial in nature. It is our opinion that the use of this hypothetical condition is
reasonable. The use of this hypothetical condition might have affected our assignment results.
No other hypothetical conditions were considered, other than what may be considered a
hypothetical condition under the Jurisdictional Exception Rule.
DEFINITION OF MARKET VALUE
As per the Code of Federal Regulations Part 34, Subpart C-Appraisals, 34.42 (g), Market value
means the most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition
is the consummation of a sale as of a specified date and the passing of title from seller to buyer
under conditions whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and acting in what they consider their own best
interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
(5) The price represents the normal consideration for the property sold unaffected by special or
creative financing or sales concessions granted by anyone associated with the sale.
DEFINITION OF HIGHEST AND BEST USE
“Highest and Best Use,” as used herein, is defined as:
The reasonably probable use of a property that results in the highest value. The four
criteria that the highest and best use must meet are legal permissibility, physical possibility,
financial feasibility, and maximum productivity.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 7
The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015), page
109.
DEFINITION OF MARKETING TIME
“Marketing Time,” is defined as:
An opinion of the amount of time it might take to sell a real or personal property interest at
the concluded market value level during the period immediately after the effective date of
an appraisal. Marketing time differs from exposure time, which is always presumed to
precede the effective date of an appraisal.
The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015), page
140.
In the case of the subject, it is our opinion a reasonable marketing time would be no more than
twelve months. This information was obtained from interviews with market participants.
DEFINITION OF EXPOSURE TIME
“Exposure Time,” is defined as:
1. The time a property remains on the market.
2. [The] estimated length of time that 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.
The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015),
page 83.
In the case of the subject, it is our opinion a reasonable exposure time would be no more than
twelve months. This information was obtained from interviews with market participants.
DATE OF THE REPORT
The date of the report is August 28, 2024.
EFFECTIVE DATE OF APPRAISAL
The effective date of the appraisal (value) is August 19, 2024. This is a value opinion as set forth
in the Uniform Standard of Professional Appraisal Practice, 2024 Edition (The Appraisal
Foundation), Standard 2.
INSPECTION
The property was inspected by Wynn Tucker on August 19, 2024. The inspection of the property is
limited to those things readily observable without the use of special testing or equipment.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 8
IDENTITY OF THE CLIENT AND INTENDED USERS OF THE REPORT
The client is McCormack Commercial, and the intended users are the client and the client’s
representatives.
PURPOSE AND INTENDED USE OF THE APPRAISAL
The purpose and intended use of this appraisal is to estimate the market value of the fee simple
interest of the subject property for use with a potential swap/exchange of properties that includes
the subject.
PROPERTY RIGHTS APPRAISED
Fee simple estate (surface estate only) is defined as:
Absolute ownership unencumbered by any other interest or estate, subject only
to the limitations imposed by the governmental powers of taxation, eminent
domain, police power, and escheat.
The Dictionary of Real Estate Appraisal, Sixth Edition (Chicago: Appraisal Institute, 2015), page
90.
STATEMENT OF OWNERSHIP, SALES HISTORY AND STATUS
According to Uniform Standard of Professional Appraisal Practice, 2024 Edition, the appraisers are
required to discuss and analyze any previous sales of the subject property within the previous three
years for all properties.
According to Denton County deed records and Denton Central Appraisal District (DCAD) records,
as of the date of value, the subject is owned by the city of Denton. The current owner has owner
the subject in excess of our three-year sales history requirement.
The appraisers were not made known of any recent contracts, listings, or offers to purchase the
subject. No other known transactions have occurred within the previous three years.
AREA/MARKET AREA ANALYSIS
The subject is in Denton, Texas in central Denton County in north central Texas. Denton County
is 958 square miles in size and has a population of 961,647, while the City of Denton, the county
seat, has a population of 148,146 and has experienced a 24.65% percent increase in growth from
2010 to 2020. The City is expected to almost double in population by the year 2030.
The City of Denton is in the Dallas-Fort Worth-Arlington MSA, which is the largest population center
in Texas and Denton is the twenty-fourth largest city in Texas. Denton County has a diverse
economy. The top employers include the University of North Texas, Denton Independent School
District, Peterbilt Motors, Texas Women’s University, and Denton County.
The subject property is in central Denton County and is located in the near southeastern portion of
the city limits of Denton. Interstate Highway 35E, Interstate Highway 35W and University Drive
(U.S. Highway 380) serve as major thoroughfares in the market area. Other secondary
thoroughfares in the immediate market area include Loop 288, E. McKinney Street, Shady Oaks
Drive and S. Woodrow Lane.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 9
Lake Lewisville to the east is a United States Army Corps of Engineers lake located on the Elm
Fork of the Trinity River. It consists of approximately 29,000 acres with nearly 190 miles of
shoreline. Originally built for flood control purposes, the lake serves as a water source for the City
of Dallas and its surrounding cities/towns. Lake Lewisville is located within Denton County in the
Dallas-Fort Worth Metroplex. It is surrounded by Collin, Dallas, and Tarrant Counties making it an
ideal destination for future growth and development.
The market area is in a growth cycle as evidenced by significant housing construction and new
commercial and industrial development throughout Denton and the Interstate Highway 35 corridor.
Given the subject’s location and the continued growth of the immediate market, the subject’s market
area should experience growth in the foreseeable future.
SITE ANALYSIS
An analysis of the property is particularly important in estimating its highest and best use. The
following is a discussion of those site characteristics considered most important. Please see
“Section II – Exhibits” for maps, aerials, photographs, and other exhibits pertaining to this segment
of the report.
PROPERTY LOCATION, SIZE AND SHAPE
The subject consists of approximately 84,681 square feet or 1.94 acres of land located along
the east side of S. Woodrow Lane, between Shady Oaks Drive and Dutchess Drive, city of
Denton, Denton County, Texas. The property has a physical address of 869 S. Woodrow Lane,
Denton, Texas 76205.
The subject property has a functional, generally rectangular shape (184’ x 459’ +/-). The shape
is suitable for a variety of light industrial and commercial uses.
LEGAL DESCRIPTION
Lot 1, Block A, Tejas Testing Addition, City of Denton, Denton County, Texas
PROPERTY TAX INFORMATION
The subject falls under the taxing jurisdictions of City of Denton, Denton ISD and Denton
County. The overall tax rate for 2023 is 1.909367%. As of the date of this report, the 2024 tax
rates were not available. DCAD’s 2024 valuation of the subject is $923,422. Based on the
above, the current property taxes for the subject equate to approximately $17,631.51.
It should be noted that the current owner of the subject is exempt from paying property taxes.
Additionally, the current assessment of the subject indicates a total building area for the subject
of 7,120 square feet and does not appear to include the 2008/2009 addition.
The appraisers were not made known of any past due property taxes. The DCAD Tax ID or
Parcel Number for the subject is 175165.
FRONTAGE, ACCESS, AND OFF-SITE IMPROVEMENTS
The subject has approximately 184 feet +/- of frontage on the east side of S. Woodrow Lane.
The property has adequate frontage. However, the property currently does not have a curb
cut and direct access from S. Woodrow Lane. Access to the subject is currently made from
Morse Street, south of the subject and via a 35’ access easement that provides access to the
southwest corner of the property. The subject is considered to have adequate access.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 10
It should also be noted that Mr. Tom Gramer, Facilities and Fleet Director of the city, indicated
that it would be likely that a curb cut could be installed along S. Woodrow Lane that would
provide direct access to the subject.
S. Woodrow Lane is a four-lane, asphalt paved street with concrete curbs and gutters. This
street carries a moderate to heavy amount of traffic.
ENVIRONMENTAL STATEMENT
We are unaware of any detrimental environmental conditions that affect the property. For the
purposes of our analysis, we have estimated the market value of the site as if it is free from
any adverse environmental conditions.
UTILITIES
The subject has access to all public utilities.
EASEMENTS/RESTRICTIONS
The property is subject to typical utility easements. There are no known easements that
adversely affect the property.
TOPOGRAPHY
The terrain of the site is generally level and lies at street grade.
FLOODPLAIN
According to The Federal Emergency Management Agency (FEMA) map panel number
48121C0380G, effective April 18, 2011, no portion of the subject appears to be located within
a flood hazard. A copy of the FEMA Flood Map has been included in the “Exhibits” section of
the report.
IMPROVEMENTS
The site is improved with a single-tenant office/warehouse/industrial building and associated
site improvements. As per measurements taken from the floor plan provided by the owner, the
subject has a total gross building area of approximately 15,115 square feet. DCAD records
indicate the subject was constructed in 1994 and historical aerial images indicate an addition
was made in 2008/2009. A representative of the owner indicated the building was renovated
in 2017. The improvements have been well maintained and are in good condition. The property
is currently owner occupied by the city of Denton for facilities maintenance.
The subject is constructed on a concrete slab foundation, with a steel frame and has a
combination of masonry, stone, concrete block and metal exterior walls and has a pitched,
metal roof over steel decking. The building is served with a fire sprinkler system, has 3-phase
power and has a full building generator.
Approximately 40% of the building consists of warehouse space. The warehouse portion of
the building has a clear height of approximately 12’-14’ +/-, has gas fired heaters, a small office,
two restrooms, a locker room with showers, three grade level loading doors and a single dock
high loading door.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 11
Approximately 60% +/- of the building is finished with office space. The configuration of the
office areas consists of a vestibule entry, reception area, private offices, conference rooms,
kitchen/breakroom, three restrooms, workroom, storage areas, etc.
The finish out of the office areas consists of a combination of carpet, vinyl composition tile,
stained concrete and ceramic tile flooring, painted and textured sheet rocked walls, acoustical
tile ceiling grid with adequate overhead lighting, HVAC, etc. The finish out is in good condition
and is similar to that of other, office/warehouse buildings of this vintage.
Site improvements consist of concrete paved walks, drives and parking lot/truck court,
landscaping with sprinkler system, flag poles, chain link fencing with barbed wire, gated entry,
etc. The subject has a land to building ratio of approximately 5.60:1. The building has
significant fenced, and concrete paved outside storage/parking on the north and east sides of
the building.
ZONING/RESTRICTIONS
The subject property is located within the City of Denton and is subject to zoning. The subject
is zoned “PF” – Public Facilities. As per the City of Denton, “The PF district is intended to
provide adequate lands for public and quasi-public community uses and services, including but
not limited to fire stations, schools, libraries, community centers, hospitals, civic buildings, open
space, parks, utilities, and other public-related facilities.”
As previously indicated, for this analysis, we have used the hypothetical condition that assumes
that the zoning of the subject can be changed to allow for light industrial use prior to a possible
sale or transfer of the property. This is considered to be reasonable as the city is potentially
trying to sell or transfer the property and the current zoning classification has very limited uses
that would be suitable for private owners or investors. Based on conversations with city officials
and considering the surrounding uses and zoning of properties in the immediate area it appears
that a change of zoning that would allow light industrial uses prior to a possible sale would be
reasonable.
There are no known restrictions that adversely affect the development of the tract.
HIGHEST AND BEST USE ANALYSIS
The following summarizes the highest and best use of the property.
PROCESS
Before a property’s value can be concluded, the highest and best use of the property must be
determined for both the subject site as though vacant, and for the property as improved (if
applicable). The highest and best use must be:
❖ Legally permissible.
❖ Physically possible.
❖ Financially feasible.
❖ Capable of producing the highest net return on investment (i.e. highest value) from among
the possible, permissible, and financially feasible uses.
As Vacant: The subject property is located within the City of Denton and is subject to zoning.
The subject is zoned “PF” – Public Facilities. As per the City of Denton, “The PF district is
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 12
intended to provide adequate lands for public and quasi-public community uses and services,
including but not limited to fire stations, schools, libraries, community centers, hospitals, civic
buildings, open space, parks, utilities, and other public-related facilities.”
As previously indicated, for this analysis, we have used the hypothetical condition that assumes
that the zoning of the subject can be changed to allow for light industrial use prior to a possible
sale or transfer of the property. This is considered to be reasonable as the city is potentially
trying to sell or transfer the property and the current zoning classification has very limited uses
that would be suitable for private owners or investors. Based on conversations with city officials
and considering the surrounding uses and zoning of properties in the immediate area it appears
that a change of zoning that would allow light industrial uses prior to a possible sale would be
reasonable.
There are no known restrictions that adversely affect the development of the tract. We are
unaware of any deed restrictions or further legal limitations that negatively impact the
development of the property.
The subject appears to have typical utility easements. These easements are not a hindrance
to the future development of the property.
The subject consists of approximately 84,681 square feet or 1.94 acres of land located along
the east side of S. Woodrow Lane, between Shady Oaks Drive and Dutchess Drive, city of
Denton, Denton County, Texas. The property has a physical address of 869 S. Woodrow Lane,
Denton, Texas 76205.
The subject property has a functional, generally rectangular shape (184’ x 459’ +/-). The shape
is suitable for a variety of light industrial and commercial uses.
The subject has approximately 184 feet +/- of frontage on the east side of S. Woodrow Lane.
The property has adequate frontage. However, the property currently does not have a curb
cut and direct access from S. Woodrow Lane. Access to the subject is currently made from
Morse Street, south of the subject and via a 35’ access easement that provides access to the
southwest corner of the property. The subject is considered to have adequate access.
It should also be noted that Mr. Tom Gramer, Facilities and Fleet Director of the city, indicated
that it would be likely that a curb cut could be installed along S. Woodrow Lane that would
provide direct access to the subject.
S. Woodrow Lane is a four-lane, asphalt paved street with concrete curbs and gutters. This
street carries a moderate to heavy amount of traffic.
The property has good locational attributes, being located in close proximity to IH-35. The
property is located in an area where the surrounding uses are mostly industrial in nature.
According to The Federal Emergency Management Agency (FEMA) map panels, no portion of
the subject appears to be encumbered by the floodplain.
The subject is physically suitable for many types of industrial uses. Based on current rental
rates and occupancy levels, industrial development appears to be financially feasible and is
the most maximally productive use of the site.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 13
After consideration of the legally permissible, physically possible, financially feasible, and
maximally productive uses, we estimate the highest and best use of the property, as vacant, to
be for light industrial use.
As Improved: As of the date of value, the property is improved with a single tenant,
office/warehouse building and associated site improvements. The improvements were
constructed in 1994, with an addition made in 2008/2009, renovated in 2017, have been well
maintained since and are in good condition. The building is currently owner-occupied by the
city of Denton.
The building has a fairly generic layout and could be occupied by a wide number of light
industrial users without making many modifications.
The subject is considered to be well suited for a variety of light industrial users. Considering
the market, location and the property’s current condition and acceptance, the highest and best
use of the property, as improved, is for continued use as an office/warehouse/light industrial
building. The most likely purchaser of the property would be an owner/user or investor.
MARKET VALUE ESTIMATE OF THE PROPERTY
INCOME APPROACH
We have estimated the value by the income capitalization approach. The value by the income
capitalization approach is derived by subtracting operating expenses from the effective gross
income to arrive at a net operating income. Net operating income is then divided by an overall
capitalization rate to estimate market value.
The subject is currently owner occupied. Thus, there is no rental history available. Therefore,
in order to determine a market rental rate for the subject, the appraisers confirmed the lease
rates of industrial properties that were considered to be generally similar to the subject in most
all aspects.
The chart below contains comparable rental properties. Each of the comparables are industrial
buildings located in Denton County, in industrial areas considered to be generally similar to the
subject. They are similar because of their location, size, use, and other physical characteristics.
IMPROVED RENTAL SUMMARY
No. Location Size (SF)
Rental
Rate
(PSF/
Annual) Expenses
1 1955 Lakeway Drive, Lewisville, TX 13,487 $12.65 NNN
2 530 E. Corporate Drive, Lewisville,
TX 6,141 $13.00 NNN
3 1200 Lakeside Parkway, Flower
Mound, TX 8,965 $10.50 NNN
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 14
IMPROVED RENTAL SUMMARY
4 1200 Lakeside Parkway, Flower
Mound, TX 27,121 $11.50 NNN
Adjustments were made for operating expenses/terms of the lease, market conditions, location,
size, and physical characteristics of the building/leased spaces. Below is a summary of the
discussion of the adjustments made to the comparables.
Operating Expenses/Terms of Lease – For this analysis, we have assumed that if the subject
were to be leased, the lease would be structured on a triple net (NNN) basis, with the tenant
reimbursing the landlord for property taxes, insurance, common area maintenance (CAM) and
management expenses, as well as being responsible for their own utility and janitorial
expenses. Each of the comparable leases is structured on a triple net basis. Thus, no
adjustments were required for differences in operating expenses.
Market Conditions – Each of the subject leases was believed to be a good representation of
current market conditions, with no adjustments considered necessary.
Location – The subject is located along S. Woodrow Lane, in an industrial area of Denton,
Texas. The property has adequate frontage and access and exhibits adequate locational
attributes for an industrial property. All things considered, each of the Comparable Leases was
considered to exhibit generally similar locational characteristics to the subject and were not
adjusted.
Size – The subject’s largest space has a size of approximately 15,115 square feet and is
currently configured for a single occupant. Comparable Leases 1 and 3-4 were considered to
be similar in size to the subject and were not adjusted. Comparable Lease 2 was adjusted
downward for its smaller size in comparison to the subject.
Physical Characteristics – The subject improvements were constructed in 1994, with an
addition in 2008/2009, updated in 2017. has been well maintained and is in good condition. All
things considered; each of the Comparable Leases were considered to be similar to the subject
with regard to age, condition and other physical characteristics, with any differences offsetting,
and were not adjusted.
Land to Building Ratio - The size of the land to building ratio was also taken into consideration.
The larger the land site, the more parking, future expansion, outside storage, etc. the site can
accommodate. The subject has a land to building ratio of 5.60:1. Each of the Comparable
Leases had similar land to building ratios in comparison to the subject and were not adjusted.
The comparables were considered to be very similar to the subject, with minimal adjustments
considered necessary. The adjusted lease rates for the above-described comparables ranged
from $10.50 per square foot to $12.65 per square foot, NNN and averaged $11.59 per square
foot, NNN.
Based on our analysis of the comparables, we estimate the market rent for the as of August
19, 2024, to be $11.50 per square foot, triple net.
The table below is an adjustment grid for the comparables.
SECTION I –APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 15
ADJUSTMENT GRID-COMPARABLE LEASES
Subject Lease #1 Lease #2 Lease #3 Lease #4
Location:869 S. Woodrow Lane,
Denton, TX
1955 Lakeway
Drive, Lewisville,
TX
530 E. Corporate
Drive, Lewsiville,
TX
1200 Lakeside
Parkway, Flower
Mound, TX
1200 Lakeside
Parkway, Flower
Mound, TX
Year of Construction 2006
Lease Size (SF):15,115 13,487 6,141 8,965 27,121
Lease Rate:N/A $12.65 $13.00 $10.50 $11.50
Lease #1 Lease #2 Lease #3 Lease #4
$0.00 $0.00 $0.00 $0.00
0%0%0%0%
$0.00 $0.00 $1.00 $0
$12.65 $13.00 $10.50 $11.50
0%0%0%0%
0%-10%0%0%
0%0%0%0%
0%0%0%0%
0%-10%0%0%
$12.65 $11.70 $10.50 $11.50
Land to Building Ratio
Lease Comparables Summary
Lease Adjustments
Operating Expenses/Terms of Lease
Market Conditions
Net Adjustments
Adjusted Rate/PSF
Location
Size
Physical Characteristics
Adjusted Rate/PSF
Net Adjustments
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 16
We researched competitive properties in the market, and industry surveys to estimate vacancy
and collection loss, operating expenses and the capitalization rate.
Vacancy and Collection Loss
This is an allowance for a reduction in potential gross income due to vacancy or uncollected
rents. The subject is currently 100% occupied.
As per Costar, the Denton warehouse industrial submarket for 1-3 star properties has a current
vacancy rate of 5.70%. Additionally, the occupancy of the Comparable Leases utilized within
this report ranged from 66%-100%, with two of the comparables being 100% occupied. The
average occupancy of the comparables is 88%.
In this analysis, any vacancy and collection loss has been included in the 5.00% that has been
deducted from the subject’s net income.
Operating Expenses
Operating expenses include ad valorem taxes, insurance, repairs common area maintenance,
utilities, janitorial, owner required repairs, management fees, reserves for replacement, and
miscellaneous expenses. The appraisers were not provided with historical operating expense
information for the subject. Expense information on other similar properties and was utilized to
establish the estimated operating expenses for the subject.
The annual operating expenses for the subject equate to $59,453 ($3.93/PSF), of which
approximately $54,453 ($3.60/SF) are reimbursable to the owner. The operating expenses are
reasonable, and in line with the operating expenses of other, similar properties.
Capitalization Rate
The capitalization rate for the subject was estimated based upon market research and
capitalization rates extracted from sales within the market and industry surveys. In the case of
the subject, we were unable to determine a capitalization rate from any of the comparable sales
utilized within the sales comparison approach of this report.
We utilized three surveys of market participants that provide information on recent
capitalization rates to help support our capitalization rate for the subject, which is summarized
in the table below.
CAP RATE SUMMARY
Source Property Types/Location Date Cap Rate
Korpacz
Warehouse/National
Q2 2024
4.00% - 8.50%,
5.48% Avg.
CBRE Class B Industrial-Stabilized/Dallas H2 2024 5.50% - 6.00%,
Henry S. Miller
Co.
Industrial Bulk/DFW 2024 3.50% - 7.50%
5.59% Avg.
Henry S. Miller
Co.
Industrial Distribution/DFW 2024 4.00% - 8.75%
5.98% Avg.
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 17
CAP RATE SUMMARY
Henry S. Miller
Co.
Industrial Flex/DFW 2024 4.50% - 8.75%
6.75% Avg.
The appraisers recognize that there is a wide range in the capitalization rate information shown
above. However, the low end of these ranges would be representative of investor grade type
properties and the high end of this range would be for older properties, properties with less
quality credit tenants, etc. Thus, it is our opinion that an appropriate capitalization rate for the
subject would fall within the upper of the range indicated. Based on the above, it is our opinion
that when considering the age/condition, location and risk of the subject, an appropriate
capitalization rate for the subject would be 7.00%.
Below is a summary of our estimate of the fee simple market value via the income capitalization
approach as of August 19, 2024.
Potential Rental Income
15,115 SF X $11.50 $ 173,822
Plus: Reimbursable Expenses $ 54,453
Total Potential Income $ 228,275
Less: Vacancy & Collection Loss (5.00%) - $ 11,413
Effective Gross Income $ 216,862
Operating Expenses
Real Estate Taxes $ 21,677
Insurance $ 11,336
CAM $ 15,115
Management $ 6,325
Miscellaneous/Reserves $ 5,000
Total Operating Expenses $ 59,453
Net Operating Income $ 157,409
Capitalization Rate ÷ 7.00%
Indicated Value via Income Capitalization Approach $ 2,248,700
Rounded $ 2,250,000
SALES COMPARISON APPROACH
We analyzed improved sales through the application of the sales comparison approach. The
sales comparison approach is a direct comparison of known market transactions of similar
properties. When sufficient information is available in order to make a unit comparison, a
supportable indication of value can be obtained. The underlying economic factor in this
approach is the principle of substitution, which states that a prudent purchaser would pay no
more for a property than the cost of acquiring an equally desirable substitute property. Our
research did reveal several sales from which a value indication could be derived for the subject.
Each of the sales are industrial buildings located throughout Denton County, in industrial areas
considered to be similar to the subject. The comparable sales utilized were considered to be
similar to the subject in most aspects, i.e. size, location, condition, use, etc. The unit of
comparison is the sales price per square foot, which is calculated by dividing the sales price by
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 18
the gross building area. Following is a summary of the improved comparable sales, a
discussion of the adjustments, and a summation of value via the sales comparison approach.
The chart below contains sales of comparable properties. Each of the comparable sales
utilized are industrial buildings, considered to exhibit similar characteristics to the subject
property.
This analysis produced a value indication by comparing the subject property with comparable
sales of similar properties. The market conditions for each of these improved sales are
comparable to the date of valuation. The unadjusted sale prices ranged from $116.24 per
square foot to $210.28 per square foot. Following is a summary of the comparable improved
properties.
IMPROVED SALES SUMMARY
No. Location
Date of
Sale
Size
(SF) YOC
Sale
Price/SF
1 6195 Fishtrap Road, Denton, TX 3/11/2024 9,463 2007 $116.24
2 1000 Johnson Street, Denton,
TX 9/6/2022 7,000 2004 $171.43
3 306 W. Overly Drive W., Lake
Dallas, TX 6/6/2023 22,500 2000 $177.78
4 2720 Virginia Circle, Denton, TX 12/30/2022 10,700 2021 $210.28
5 1461 Lemay Drive, Carrollton,
TX 8/11/2022 13,322 1985 $150.13
Discussion of Adjustments:
The subject is improved with a single-tenant, industrial building and related site improvements.
In selecting the comparable sales, properties of similar use were selected. All of the sales were
also industrial buildings that were believed to be similar to the subject with regard to size,
location, use, etc. The subject is located in with an industrial area of Denton, in close proximity
to IH-35E. Each of the comparable sales are located within industrial areas considered similar
to the subject. All of the preceding comparable sales have been thoroughly analyzed,
documented, confirmed and compared to the subject. It is our opinion that these sales are
good indicators of market values and market activity for similar types of buildings. The market
data was first utilized by analysis and abstraction, to determine what features inherent in any
given property caused that property's sales price to vary relative to another property, and to
establish representative and realistic measures for adjustment features. The elements of
comparison that were believed to have an effect upon the value of the subject property included
the following.
1) Property Rights Conveyed - The sales price of a property may or may not be affected by
the real property interest conveyed. The ownership interest for all of the comparable sales
in this valuation analysis were considered to be comparable to the subject property with no
adjustments necessary.
2) Financing Terms/Conditions of Sale - None of the improved comparable sales were known
to be affected by conditions of sale, atypical of arm’s length transactions, such as a more
than typically motivated buyer or seller. Subsequently, adjustments for conditions of sale
were not made in the analysis of the comparable data.
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 19
3) Market Conditions at Time of Sale - The sales utilized transpired from August 2022 to
March 2024. The date of valuation is August 2024. The comparables utilized were the
most recent confirmed sales of industrial buildings similar to the subject, and the sales
were considered to be representative of current market conditions. Therefore, adjustments
for market conditions were not considered necessary.
4) Locational Attributes - This element of comparison considers the location characteristics of
each of the comparable sales as compared to the subject and takes into consideration,
surrounding developments, accessibility, site and view, etc. The subject is located along
S. Woodrow Lane, in an industrial area of Denton, Texas. The property has adequate
frontage and access and exhibits adequate locational attributes for an industrial property.
Each of the Comparable Sales were considered to exhibit generally similar locational
characteristics to the subject, and adjustments for location were not considered necessary,
with any differences offsetting.
5) Size of Improvements - Size adjustments are based on the premise that larger buildings
tend to sell for a lower per unit value than smaller buildings due to the amount of capital
required in the investment and conversely, smaller buildings sell for a higher per unit value
due to the smaller amount of capital required. The subject has a gross building area of
approximately 15,115 square feet. Comparable Sales 1 and 3-5 were similar in size to the
subject and were not adjusted. Comparable Sale 2 was adjusted downward for its smaller
size in comparison to the subject.
6) Physical Characteristics - This takes into consideration the overall condition of the building,
type of construction and the age of improvements. The subject improvements were
constructed in 1994, with an addition, since have been well maintained since and are in
good condition. Comparable Sale 1 included two, older single family residences at the time
of sale. This sale was considered to be inferior to the subject with regard to age and
condition with a positive adjustment applied. Comparable Sales 2-3 and 5 were considered
to be similar to the subject with regard to age, condition and other physical characteristics,
with any differences considered to be offsetting and no adjustments were required.
Comparable Sale 4 was considered to be superior to the subject with regard to age and
condition with a negative adjustment applied.
7) Land to Building Ratio - The size of the land to building ratio was also taken into
consideration. The larger the land site, the more parking, truck court, future expansion,
outside storage, etc. the site can accommodate. The subject has a land to building ratio
of 5.60:1, which allows for secured, outside storage. Comparable Sales 1-3 and 5 had
larger land to building ratios in comparison to the subject and were adjusted downward
accordingly. A positive adjustment was applied to Comparable Sale 2 for its inferior land
to building ratio in comparison to the subject.
The comparables were considered similar to the subject in most other aspects, and no other
adjustments were considered necessary. The table below is an adjustment grid for the
comparables.
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 20
ADJUSTMENT GRID-COMPARABLE IMPROVED SALES
Subject Sale #1 Sale #2 Sale #3 Sale #4 Sale #5
Location:869 S. Woodrow
Lane, Denton, TX
6195 Fishtrap Road,
Denton, TX
1000 Johnson Street,
Denton, TX
306 W. Overly Drive
W., Lake Dallas, TX
2720 Virginia Circle,
Denton, TX
1461 Lemay Drive,
Carrollton, TX
Sale Price:N/A $1,100,000 $1,200,000 $4,000,000 $2,250,000 $2,000,000
Sale Date:N/A 3/11/2024 9/6/2022 6/6/2023 12/30/2022 8/1/2022
Building Size (SF):15,115 9,463 7,000 22,500 10,700 13,322
Price/SF:N/A $116.24 $171.43 $177.78 $210.28 $150.13
0%0%0%0%0%
0%0%0%0%0%
0%0%0%0%0%
0%0%0%0%0%
0%0%0%0%0%
$116.24 $171.43 $177.78 $210.28 $150.13
0%0%0%0%0%
0%-10%0%0%0%
20%0%0%-20%0%
-10%5%-5%-5%-5%
10%-5%-5%-25%-5%
$127.87 $162.86 $168.89 $157.71 $142.62Adjusted Price/PSF
Market Conditions
Net Adjustments
Other Adjustments
Location
Size
Net Adjustments
Adjusted Price/PSF
Physical Characteristics
Land to Building Ratio
Improved Comparable Sales Summary
Sales Adjustments
Property Rights Conveyed
Financing Terms
Conditions of Sale
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 21
The comparables were considered to be generally similar to the subject, with only a single
adjustment considered necessary. The comparable sales indicate an adjusted value range of
approximately $127.87 to $168.89 per square foot of building area, with an average of $151.99
per square foot. Comparable Sale 1 is somewhat of an outlier, establishing the low end of the
adjusted value range, with the other sales indicating a narrower adjusted value range. The
least weight was placed on this sale in our reconciliation.
Based upon our research and analysis of the market, we estimate the market value of the
property via the sales comparison approach, “as is”, as of August 19, 2024, to be as follows:
15,115 SF X $=150.00 Per/SF = $2,267,250 – Rounded To: $2,270,000
RECONCILIATION AND FINAL VALUE ESTIMATE
APPROACH TO VALUE INDICATION OF VALUE
COST APPROACH N/A
INCOME APPROACH $2,250,000
SALES COMPARISON APPROACH $2,270,000
The income capitalization approach and improved sales comparison approach were utilized to
estimate market value. The completed approaches to value indicated a narrow value range of
$2,250,000 to $2,270,000. The sales comparison approach sets the upper limits of the value
range, and the income approach sets the lower limits of the value range.
In the case of the subject, both approaches to value were considered to be reliable and were
given equal weight in our final reconciliation.
We have estimated the fee simple market value of the subject property, “as is”, as of August
19, 2024, to be as follows:
$ 2,260,000
TWO MILLION TWO HUNDRED SIXTY THOUSAND DOLLARS
The appraisers have retained all information regarding this appraisal in the file. Please contact me if I can
be of further assistance in this matter.
Wynn Tucker
State of Texas Certification #TX-1339855-G
SECTION I-APPRAISAL REPORT
869 S. WOODROW LANE, DENTON, TEXAS 76205 22
SECTION II – EXHIBITS
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 23
AREA MAP
Source: Google Earth Pro
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 24
LOCATION MAP
Source: Google Earth Pro
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 25
SUBJECT PHOTOGRAPHS
SOURCE: APPRAISER
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 26
SUBJECT PHOTOGRAPHS
SOURCE: APPRAISER
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 27
SUBJECT PHOTOGRAPHS
SOURCE: APPRAISER
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 28
SUBJECT PHOTOGRAPHS
SOURCE: APPRAISER
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 29
SUBJECT PHOTOGRAPHS
SOURCE: APPRAISER
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 30
AERIAL VIEW
Source: denontcad.com
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 31
FLOODPLAIN MAP
Source: FEMA
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 32
ZONING MAP
Source: City of Denton
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 33
FLOOR PLAN
Source: Owner
SECTION II - EXHIBITS
869 S. WOODROW LANE, DENTON, TEXAS 76205 34
SECTION III – COMPARABLE DATA
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 35
COMPARABLE LEASES MAP
Source: Google Earth Pro
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 36
1BLEASE COMPARABLE NUMBER 1
PROPERTY IDENTIFICATION
Address 1955 Lakeway Drive, Lewisville, TX 75057
RENTAL DATA
Lease Rate $12.65/PSF
Lease Type NNN
PROPERTY DATA
Site Size 6.26 Ac. – 272,685 SF
Rentable Building Area 88,155 SF
Lease Size 13,487 SF
Year Constructed 1999
Comments This comparable is a multi-tenant building that is currently 86%
occupied. The lease space consisted of 50% office space, 18’
clear height, two grade level loading doors and was an end cap
space. This space is leased to Land Care Management
Services, LLC at the indicated rate above.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 37
2BLEASE COMPARABLE NUMBER 2
PROPERTY IDENTIFICATION
Address 530 E. Corporate Drive, Lewisville, TX 75057
RENTAL DATA
Lease Rate $13.00 PSF
Lease Type NNN
PROPERTY DATA
Site Size 2.76 Ac. – 120,225 SF
Rentable Building Area 31,538 SF
Lease Size 6,141 SF
Year Constructed 2008
Comments This comparable is a multi-tenant, office/warehouse building that
is currently 66% occupied. This space was recently leased to
Ranger Technology Solutions at the indicated rate above. The
building has a clear height of 16’ and has 6 dock high loading
doors and 1 grade level loading door.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 38
BLEASE COMPARABLE NUMBER 3
PROPERTY IDENTIFICATION
Address 1200 Lakeside Parkway-Building 2, Flower Mound, TX 75028
RENTAL DATA
Lease Rate $10.50 PSF
Lease Type NNN
PROPERTY DATA
Site Size 26.61 Ac. – 1,159,132 SF
Rentable Building Area 35,000 SF
Lease Size 8,965 SF
Year Constructed 2006
Comments This comparable consists of a multi-tenant office/warehouse
building that is 100% occupied. The lease space has 2 dock
high doors and 1 ramped loading door, 8,329 SF of office space,
an 18’ clear height and the tenant is ThermoTek, Inc.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 39
BLEASE COMPARABLE NUMBER 4
PROPERTY IDENTIFICATION
Address 1200 Lakeside Parkway-Building 4, Flower Mound, TX 75028
RENTAL DATA
Lease Rate $11.50 PSF
Lease Type NNN
PROPERTY DATA
Site Size 26.61 Ac. – 1,159,132SF
Rentable Building Area 140,500 SF
Lease Size 27,121 SF
Year Constructed 2006
Comments This comparable consists of a multi-tenant office/warehouse
building that is 100% occupied. This building has dock high
doors and ramped loading doors, approximately 20% finished
office space, a 30’ clear height. The tenant is Pulsetech
Products Corporation.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 40
COMPARABLE IMPROVED SALES MAP
Source: Google Earth Pro
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 41
IMPROVED SALE COMPARABLE NUMBER 1
PROPERTY IDENTIFICATION
Address 6195 Fishtrap Road, Denton, TX 76208
SALES DATA
Date of Sale March 11, 2024
Instrument Number 2024-26550 - Denton County Deed Records
Terms Cash to seller
Rights Conveyed Fee Simple, no unusual conditions of sale
Grantor Elizabeth T. Piranio
Grantee TXRG Holdings, LLC
Sale Price $1,100,000
Sale Price/SF $152.78/SF
PROPERTY DATA
Site Size 2.732 Acres or 119,006 Square Feet
Building Area 9,463 Square Feet
Year Constructed 2007
Land to Building Ratio 16.52:1
Comments This comparable consists of a single tenant, 7,200 SF industrial building that
was constructed in 2007 and a 1,591 SF (YOC-1980) single family residence
and a 672 SF (YOC-1959) single family residence. The main building has
HVAC throughout, 6 grade level loading doors and has office and showroom
areas. Prior to the sale, the residences were utilized as rentals but could be
used for office purposes.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 42
IMPROVED SALE COMPARABLE NUMBER 2
PROPERTY IDENTIFICATION
Location 1000 Johnson Street, Denton, TX 76205
SALES DATA
Date of Sale September 6, 2022
Recorded 2022-126914 – Denton County Deed Records
Grantor Cole Creek Properties, LLC
Grantee Sancho’s Holdings, LLC
Sales Price
Sale Price/SF
$1,200,000
$171.43
PROPERTY DATA
Site Size 0.234 Acre or 10,193 Square Feet
Building Area 7,000 Square Feet
Year Constructed 2004
Land to Building Ratio 1.45:1
Comments This comparable is a single tenant building that includes two-story
office space and the warehouse has 4 grade level loading doors.
This building has a small, concrete paved and fenced outside storage
area.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 43
IMPROVED SALE COMPARABLE NUMBER 3
PROPERTY IDENTIFICATION
Address 306 W. Overly Drive W., Lake Dallas, TX 75065
SALES DATA
Date of Sale June 6, 2023
Instrument Number 2023-58801 - Denton County Deed Records
Terms Cash to seller
Rights Conveyed Fee Simple, no unusual conditions of sale
Grantor Green Carder Properties
Grantee DDM Development, Inc.
Sale Price $4,000,000
Sale Price/SF $177.78/SF
PROPERTY DATA
Site Size 5.70 Acres or 248,292 Square Feet
Building Area 22,500 Square Feet
Year Constructed 2000
Land to Building Ratio 11.03:1
Comments This comparable is a single tenant, office/warehouse industrial building that
has approximately 5,000 SF of recently renovated office space, a 24’ clear
height, 3 grade level loading doors, 1 dock high loading doors and has a
gravel surfaced outside storage fenced and secured yard area. This property
was believed to be purchased for owner occupancy.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 44
IMPROVED SALE COMPARABLE NUMBER 4
PROPERTY IDENTIFICATION
Address 2718 Virginia Circle, Denton, TX 76209
SALES DATA
Date of Sale December 30, 2022
Instrument Number 2022-174989 - Denton County Deed Records
Terms Cash to seller
Rights Conveyed Fee Simple, no unusual conditions of sale
Grantor Bui Investments, LLC
Grantee Prodigy 600 FWD, LLC
Sale Price $2,250,000
Sale Price/SF $210.28/SF
PROPERTY DATA
Site Size 2.27 Acres or 98,881 Square Feet
Building Area 10,700 Square Feet
Year Constructed 2021
Land to Building Ratio 9.24:1
Comments This comparable consists of a single tenant, office/warehouse industrial
building that was reportedly purchased for owner occupancy. This building
includes 6 grade level loading doors, has a 20’ clear height and has 2,170 SF
of office space.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 45
IMPROVED SALE COMPARABLE NUMBER 5
PROPERTY IDENTIFICATION
Address 1461 Lemay Drive, Carrollton, TX 75007
SALES DATA
Date of Sale August 1, 2022
Instrument Number 2022-112321 – Denton County Deed Records
Terms Cash to seller
Rights Conveyed Fee Simple, no unusual conditions of sale
Grantor Amren, Inc.
Grantee RCHQ, LLC
Sale Price $2,000,000
Sale Price/SF $154.32/SF
PROPERTY DATA
Site Size 0.93 Acre or 40,511 Square Feet
Building Area 13,322 Square Feet
Year Constructed 1985
Land to Building Ratio 3.04:1
Comments This comparable consists of a single tenant, metal office/warehouse building.
This property has 3 grade level loading doors, a 16’-18’ clear height, 2,500
SF of office space and has fenced and concrete paved outside storage space.
This building was believed to be purchased for owner occupancy.
SECTION III – COMPARABLE DATA
869 S. WOODROW LANE, DENTON, TEXAS 76205 46
SECTION IV – CERTIFICATION OF THE APPRAISAL
SECTION IV – CERTIFICATION OF THE APPRAISAL
869 S. WOODROW LANE, DENTON, TEXAS 76205 47
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and
conclusions.
3. 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.
4. We have performed no services, as an appraiser or in any other capacity, regarding the property that
is subject of this report within the three-year period immediately preceding acceptance of this
assignment.
5. We have no bias with respect to the property that is the subject of this report or to the parties involved
with this assignment.
6. Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
7. 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.
8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
9. Wynn Tucker made a personal inspection of the property that is the subject of this report.
10. No one provided significant real property appraisal assistance to the persons signing this certification.
11. The reported analyses, opinions and conclusions were developed, and this report has been prepared,
in conformity with the requirements of the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute.
12. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
Wynn Tucker
State of Texas Certification #TX-1339855-G
869 S. WOODROW LANE, DENTON, TEXAS 76205 48
SECTION V – ASSUMPTIONS AND LIMITING CONDITIONS
SECTION V – ASSUMPTIONS AND LIMITING CONDITIONS
869 S. WOODROW LANE, DENTON, TEXAS 76205 49
In conducting this appraisal, we have assumed, except as otherwise noted in our report, as follows:
13. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and
restrictions unless otherwise stated.
14. The property is under responsible ownership and competent management and is available for its
highest and best use.
15. There are no existing judgments or pending or threatened litigation that could affect the value of the
property unless otherwise stated.
16. There are no hidden or undisclosed conditions of the land or of the improvements that would render
the property more or less valuable. Furthermore, there is no asbestos in the property.
17. The property is in compliance with all applicable building, environmental, and other federal, state and
local laws, regulations and codes, unless a non-conformity is identified in the report.
18. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no
representation is made as to the affect of subsequent events.
19. No environmental impact studies were either requested or made in conjunction with this appraisal, and
we reserve the right to revise or rescind any of the value opinions based upon any subsequent
environmental impact studies. If any environmental impact statement is required by law, the appraisal
assumes that such statement will be favorable and will be approved by the appropriate regulatory
bodies.
20. We are not required to give testimony or to be in attendance in court or any government or other hearing
with reference to the property without written contractual arrangements having been made relative to
such additional employment or by an order from said court or governmental agency.
21. We have made no survey of the property and assume no responsibility in connection with such matters.
Any sketch or survey of the property included in this report is for illustrative purposes only and should
not be considered to be scaled accurately for size. The appraisal covers the property as described in
this report, and the areas and dimensions set forth are assumed to be correct.
22. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have
assumed that the property is not subject to surface entry for the exploration or removal of such
materials, unless otherwise noted in our appraisal.
23. We accept no responsibility for considerations requiring expertise in other fields. Such considerations
include, but are not limited to, legal descriptions and other legal matters, geologic considerations, such
as soils and seismic stability, and civil, mechanical, electrical, structural and other engineering and
environmental matters.
24. The distribution of the total valuation in this report between land and improvements applies only under
the reported highest and best use of the property. The allocations of value for land and improvements
must not be used in conjunction with any other appraisal and are invalid if so used. This appraisal
report shall be considered only in its entirety. No part of this appraisal report shall be utilized separately
or out of context.
25. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity
of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising
SECTION V – ASSUMPTIONS AND LIMITING CONDITIONS
869 S. WOODROW LANE, DENTON, TEXAS 76205 50
media, public relations media, news media or any other means of communication (including without
limitation prospectuses, private offering memoranda and other offering material provided to prospective
investors) without the prior written consent of the appraisers.
26. Information, estimates and opinions contained in this report, obtained from sources outside of the office
of the undersigned, are believed to be reliable.
27. Any income and expense estimates contained in this appraisal report are used only for the purpose of
estimating value and do not constitute predictions of future operating results.
28. No consideration has been given to personal property located on the premises or to the cost of moving
or relocating such personal property; only the real property has been considered.
29. The current purchasing power of the dollar is the basis for the value stated in our appraisal; we have
assumed that no extreme fluctuations in economic cycles will occur.
30. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a
specific survey or analysis of this property to determine whether the physical aspects of the
improvements meet the ADA accessibility guidelines. In as much as compliance matches each owner's
financial ability with the cost to cure the non-conforming physical characteristics of a property, we
cannot comment on compliance to ADA. Given that compliance can change with each owner's financial
ability to cure non-accessibility, the value of the subject does not consider possible non-compliance.
Specific study of both the owner's financial ability and the cost to cure any deficiencies would be needed
for the Department of Justice to determine compliance.
31. This appraisal report has been prepared for the exclusive benefit of McCormack Commercial and
their assigns. It may not be used or relied upon by any other party. All parties who use or rely upon
any information in this report without our written consent do so at their own risk.
32. No studies have been provided to us indicating the presence or absence of hazardous materials on the
site or in the improvements, and our valuation is predicated upon the property being free and clear of
any environment hazards.
869 S. WOODROW LANE, DENTON, TEXAS 76205 51
SECTION VI – QUALIFICATIONS OF THE APPRAISERS
SECTION VI – QUALIFICATIONS OF THE APPRAISERS
869 S. WOODROW LANE, DENTON, TEXAS 76205 52
J. WYNN TUCKER
Experience: Mr. Tucker has provided real estate consulting and appraisal services since 1970. He has
provided appraisal and consultation for assignments of numerous types of properties
including, but not limited to, raw and developed land, office buildings, retail centers,
service stations, hospitals, apartment complexes, master planned communities,
restaurants, amusement park facilities, mixed-use developments, and industrial facilities.
Mr. Tucker is a 2000 graduate from Texas Christian University in Fort Worth, Texas with
a Bachelor of Business Administration with a major in Finance.
Mr. Tucker is also active in the ownership of commercial, investment properties, as well
as the brokerage of commercial properties.
Mr. Tucker is from Fort Worth, Texas and graduated from Fort Worth Country Day School.
Professional
Activities:
Licensed:
Licensed:
Texas State Certified General Real Estate Appraiser
Certificate No. TX-1339855-G
Texas Real Estate Broker-487931
Education: Texas Christian University, Fort Worth, Texas - 2000
Bachelor of Business Administration
Major: Finance
Relevant Coursework by the Appraisal Institute, accredited universities and others:
Successful completion of the following courses offered by the Appraisal Institute, among
many other courses relating to the field of commercial real estate and appraisal:
General Appraiser Market Analysis and Highest & Best Use
General Appraiser Sales Comparison Approach
General Appraiser Site Valuation and Cost Approach
General Appraiser Income Approach Parts 1-2
General Appraiser Report Writing and Case Studies
Basic Income Capitalization
SECTION VI – QUALIFICATIONS OF THE APPRAISERS
869 S. WOODROW LANE, DENTON, TEXAS 76205 53
APPRAISAL LICENSE