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HomeMy WebLinkAboutCB23US075852-3_Granada Lift Station - Langlitz - TCE GRANADA LIFT STATION LANGLITZ – T CE 3712 GRANADA TRAIL DENTON, TEXAS 76205 CBRE GROUP, INC. FILE NO. CB23US075852 -3 MCCARTHY PARTNERS, LL C APPRAISAL REPO RT CBRE VALUATION & ADVISORY SERVICES © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES 500 W. 2nd Street, Suite 1700 Austin, TX 78701 T 512-499-4900 F 512-499-4999 www.cbre.com September 25, 2023 Mr. Christopher McCarthy, SR/WA McCarthy Partners, LLC 511 Pleasant Valley Lane Richardson, Texas 75080 RE: Appraisal of: Granada Lift Station Langlitz – TCE 3712 Granada Trail Denton, Denton County, Texas CBRE, Inc. File No. CB23US075852-3 Dear Mr. McCarthy, SR/WA: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 1.0261-acre (44,695 sq. ft.) single-family residential lot located at 3712 Granada Trail in Denton, Texas. The subject is improved with a single-family residence and related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction easement. The proposed temporary construction easement is situated adjacent to a portion of the existing 16' utility easement. Based on the analysis contained in the following report, the appraiser’s opinion of total compensation is concluded as follows: CONCLUDED MARKET VALUE Larger Parcel $200,000 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $200,000 Remainder After Consideration of Damages $200,000 Net Damages or Benefits $0 Temporary Easements $1,630 Total Compensation $1,630 © 2023 CBRE, Inc. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The appraisal problem, as applied to the subject, is to determine the property’s market value. “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) The intended use and user of our report are specifically identified in our report as agreed upon in my contract for services and/or reliance language retained in the appraiser’s workfile. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). The report is not the appraisal but is the reporting of the appraisal to the named client or named intended user. Anyone else who attempts to rely on an appraisal report that is not a named user may be misled by the report. If you are not the client, you have no way of knowing if a later appraisal was done that replaces this report. Any changes will result in a different report date. Accordingly, this document may no longer contain the appraisers’ opinions. Any subsequent reports, with a later report date, voids this document even to the client or intended user. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Allison Jackson, SR/WA, RWA, R/W-AC Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Vice President Director TX-1380451-G TX-1336636-G © 2023 CBRE, Inc. Aerial 1 Subject Aerial with Acquisition Overlay Aerial View of Subject and Acquisition Subject Proposed Temporary Construction Easement © 2023 CBRE, Inc. Executive Summary 2 Table of Contents Subject Aerial with Acquisition Overlay ................................................................................ 1 Table of Contents ................................................................................................................ 2 Certification ........................................................................................................................ 3 Executive Summary ............................................................................................................. 4 Scope of Work ................................................................................................................... 10 Subject Photographs (September 18, 2023) ....................................................................... 12 Subject Photographs (October 05, 2022) ........................................................................... 13 Area Analysis .................................................................................................................... 14 Neighborhood Analysis ..................................................................................................... 16 Improvements Analysis ...................................................................................................... 26 Zoning .............................................................................................................................. 27 Tax and Assessment Data .................................................................................................. 29 Highest and Best Use ........................................................................................................ 30 Appraisal Methodology ..................................................................................................... 32 Land Value ........................................................................................................................ 34 Reconciliation of Value – Whole Property ........................................................................... 40 Part to be Acquired ........................................................................................................... 41 Temporary Construction Easement .................................................................................... 42 Summary of Compensation ............................................................................................... 44 Assumptions and Limiting Conditions ................................................................................ 45 ADDENDA A Land Sale Data Sheets B Owner Contact C Project Information D Subject Information E Qualifications © 2023 CBRE, Inc. Executive Summary 3 Certification We certify 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 my personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. My 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. 6. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Texas. 7. 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. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC, has completed the continuing education program for Designated Members of the Appraisal Institute. 10. As of the date of this report, Allison Jackson, SR/WA, RWA, R/W-AC has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. 11. Allison Jackson, SR/WA, RWA, R/W-AC has made a personal inspection of the property that is the subject of this report on September 18, 2023. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has made a personal inspection of the property that is the subject of this report on October 5, 2022. 12. Stacy Ann Brown (Trainee License No. TX-1343526-Trainee) under the supervision of Allison Christine Jackson, SR/WA, RWA, R/W-AC (License No. TX-1380451-G) provided real property appraisal assistance to the person signing this report by gathering subject property data, gathering comparable data, and assisting with the analysis and report writing. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has previously appraised the property identified as the subject of this assignment with an effective date of October 5, 2022. Allison Jackson, SR/WA, RWA, R/W-AC has not provided any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Allison Jackson, SR/WA, RWA, R/W-AC Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC TX-1380451-G TX-1336636-G © 2023 CBRE, Inc. Executive Summary 4 Executive Summary INTRODUCTION CBRE File No.CB23US075852-3 Date of the Report September 25, 2023 Effective Date September 18, 2023 Valuation Date Type Current Client Name The City of Denton through a subcontract with McCarthy Partners, LLC Representative Mr. Christopher McCarthy, SR/WA Address 511 Pleasant Valley Lane Richardson, TX 75080 Parcel Number Proposed Temporary Construction Easement Subject Location 3712 Granada Trail Denton, Denton County, TX Owner Jeffrey R. Langlitz and Margaret L. Langlitz Legal Description 1.0261-acre tract of land situated in the T. Peacock Survey, Abstract No. 1589 in the City of Denton, Denton County, Texas. Assessor IDs (Impacted Only)24088 Property Rights Appraised Fee Simple Estate subject to existing encumbrances Rights Being Acquired Easement Current Use of Subject Residential Highest and Best Use As Vacant Residential of Acquisition As part of the Whole Property Estimated Exposure Time 6 - 12 Months Buyer Profile Owner-User or Homebuilder LAND AREAS Whole Property 1.0261 AC 44,695 SF Fee Area 1.0261 AC 44,695 SF Part Acquired No Permanent Easement Acquisition Remainder Property Fee Area Remaining 1.0261 AC 44,695 SF Remainder Total Size 1.0261 AC 44,695 SF TCE 0.0418 AC 1,819 SF CONCLUDED MARKET VALUE Larger Parcel $200,000 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $200,000 Remainder After Consideration of Damages $200,000 Net Damages or Benefits $0 Temporary Easements $1,630 Total Compensation $1,630 © 2023 CBRE, Inc. Executive Summary 5 SALIENT POINTS • The subject is a 1.0261-acre (44,695 sq. ft.) single-family residential lot located at 3712 Granada Trail in Denton, Texas. The subject is improved with a single-family residence and related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction easement. The proposed temporary construction easement is situated adjacent to a portion of the existing 16' utility easement. • A 50’ drainage easement is located along the eastern boundary of the site. This drainage easement area exhibits minimal functional utility and developmental potential. • There is an existing 16’ public utility easement located along the western boundary of the subject and two access easements located adjacent to the existing 16’ public utility easement which are considered typical utility and access easements and are not considered to impact marketability or highest and best use. It is an assumption of this report that the proposed Temporary Construction Easement will be accessible via the existing utility and access easements owned by the City of Denton. • Approximately 90% of the subject property is encumbered by areas of floodplain. Based upon research conducted within the market area, residential use properties do not typically exhibit a significant impact in value due to flood encumbrances. While these flood encumbered areas exhibit some limited development potential, they are often located within or nearby areas with varying topography, drainage features, heavy vegetation, mature trees, etc. Generally, these types of physical features for a residential property are often desirable for buyers. Transactions of residential properties exhibiting similar types aesthetically pleasing physical features frequently demand a higher price, including those with significant flood encumbrances. Given the preceding, the flood encumbrance on the subject property is not considered to be overly detrimental to the subject site and is considered to be generally offset by the aesthetically pleasing physical features resulting from the flood encumbered areas. • It is assumed that any underground improvements or other improvements which are not known to the appraiser will not be impacted by the project. Any impact to such improvements will require modification of this analysis or separate agreement between the property owner and the client. © 2023 CBRE, Inc. Executive Summary 6 MARKET VOLATILITY Commercial real estate market conditions have deteriorated at the macro level. The significant recent increase in the cost of capital and reduced volume of transaction activity is impacting price discovery and creating an increase in uncertainty. Increasing interest rates and subdued economic growth will continue to weigh on commercial real estate fundamentals and investment transaction volumes. This creates a higher degree of uncertainty in general, though the impacts may vary by market and asset class/type. We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short-to-medium term. Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions. It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. CURRENT ECONOMIC CONDITIONS At its July 2023 meeting, the Federal Reserve raised the federal funds rate by 25 basis points to a 22-year-high range of 5.25% to 5.50% and indicated that future changes in monetary policy will depend on incoming data, taking into consideration the lagged impact of tightening monetary policy on the economy. The Fed also noted that it will continue to reduce the size of its balance sheet by $95 billion per month. Inflation is slowing as the pandemic’s impact wears off. The economy has been remarkably resilient in the face of rapid rate hikes and inflation is unlikely to fall to 2.0% with a continued tight labor market and an unemployment rate of only 3.6%. For this reason, another rate hike cannot be ruled out, but we believe that the current rate of 5.25% to 5.50% will be enough to sufficiently weaken the labor market. While opinions vary on future economic issues, the general market consensus at the time of this appraisal is the anticipation of moderating inflation as higher interest rates cool demand. Tighter lending conditions and a weakening economy will keep capital markets activity subdued and reduce leasing demand in the short to medium term. Amid this uncertain and dynamic environment, investment market performance will be uneven across property types. © 2023 CBRE, Inc. Executive Summary 7 EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS An 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.” 1 A 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 purposes of analysis.” 2 The use of extraordinary assumptions and hypothetical conditions may affect assignment results. SPECIAL ASSUMPTIONS •We have relied on public records for the whole property size and the client-provided survey for the proposed temporary construction easement size and we assume these sizes to be correct.Should any relevant contrary information be provided at a later date,the appraisers reserve the right to amend the analysis and conclusions of this appraisal. It is assumed that the Temporary Construction Easement will be accessible via the existing access easement owned by the City of Denton. •The appraiser is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site.The existence of hazardous materials or underground storage tanks may affect the value of the property.For this appraisal,the appraiser has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property.The use of this assumption may affect the assignment results. •A soils analysis for the site has not been provided for the preparation of this appraisal.In the absence of a soils report,it is a specific assumption that the site has adequate soils to support the highest and best use. •Based on instructions from the client,it is assumed that any damage to improvements such as fences and structural improvements caused by construction,maintenance,operation,repairing,alteration, replacement,or removal of its facilities shall be repaired or replaced to their as-is condition or better. •The value of the remainder after the acquisition is subject to the Hypothetical Condition that,as of the effective date of appraisal,the proposed project has been constructed according to the specifications provided by the client. •In the appraisal of property for eminent domain,numerous court cases and statutes have established that project influence (both positive and negative)should be disregarded in the value of the property before the acquisition.Therefore,the appraiser has excluded consideration of any effect the project may have on the property.This requires the appraiser to analyze the property based on a condition that is contrary to what currently exists but is accepted appraisal practice. •Certain elements of damage cannot be considered in the appraisal of the remainder although these elements may reduce the value of the remainder tract.This is in accordance with State v.Schmidt, 867 S.W.2d 769,781 (Tex.1993),wherein the Supreme Court ruled that damages due to diversion of traffic,circuitry of travel,increased noise,reduced visibility to passers byes,and inconvenience due to construction activities are non-compensable and are thus not considered in the valuation of the remainder. See also Texas Property Code, Chapter 21, Subchapter C, Section 21.041 (d). EXTRAORDINARY ASSUMPTIONS: uncertain information; could alter conclusions HYPOTHETICAL CONDITIONS: contrary to what is known but used for purpose of analysis 1 The Appraisal Foundation, USPAP 2 The Appraisal Foundation, USPAP © 2023 CBRE, Inc. Scope of Work 8 IDENTIFICATION OF THE SUBJECT The subject is a 1.0261-acre (44,695 sq. ft.) single-family residential lot located at 3712 Granada Trail in Denton, Texas. The subject is improved with a single-family residence and related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction easement. The proposed temporary construction easement is situated adjacent to a portion of the existing 16' utility easement. Identification of the Larger Parcel The value of a property cannot be estimated without a determination of the property to be appraised. In some cases, multiple tax parcels are utilized together in one use or a larger tract of land may be legally, economically and physically divisible into smaller economic units. The three tests to determine the “larger parcel” to be valued in an appraisal are: • Unity of Title - control by a single entity, individual, or group. Title is largely a legal question. • Unity of Use - an integrated highest and best use separate from surrounding land. Multiple tracts can have the same use but be separate tracts, such as platted lots. Use is an economic question that is dependent upon supply and demand, availability of substitutes and other economic principles. • Proximity - contiguous tracts or proximate tracts that are used together. Subordinate to Unity of Use. In this case, the subject identified for valuation purposes of this assignment is 1.0261 acres, or 44,695 SF of land that is under the same owner and use. OWNERSHIP Based on our research, the most recent transaction was on May 2, 2016, as improved, and is not relevant to this analysis. To the best of our knowledge, there has been no ownership transfer of the property during the past three years. The subject is not known to be listed or under contract for sale or option. The summary of ownership is listed in the table below. OWNERSHIP SUMMARY Current Owner:Jeffrey R. Langlitz and Margaret L. Langlitz Date Purchased:May 2, 2016 Legal Reference 2016-51022 County/Locality Name:Denton Pending Sale:No Change of Ownership - Past 3 Years No Compiled by CBRE © 2023 CBRE, Inc. Scope of Work 9 OWNER CONTACT The owner was contacted via US Certified Mail on September 5, 2023. The appraisers were able to establish contact with Jeffrey Langlitz, the property owner, and were given permission to inspect the property unaccompanied. Thus, Allison Jackson, SR/WA, RWA, R/W-AC inspected the subject on-site on September 18, 2023. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC personally inspected the property on-site on October 5, 2022. OWNER AND CONTACTS Owner Name Jeffrey R. Langlitz and Margaret L. Langlitz Owner Address 3712 Granada Trail Owner City, State, Zip Denton, Texas 76210 Owner Phone (817) 925-7794 Owner Email jeffL@mjec.com Occupancy Owner Occupied Compiled by CBRE FURNITURE, FIXTURES AND EQUIPMENT (PERSONAL PROPERTY) No items of personal property were noted in the acquisition area. © 2023 CBRE, Inc. Scope of Work 10 Scope of Work APPRAISAL ASSIGNMENT Guidance -The analyses,opinions and conclusions were developed based on, and this report has been prepared in conformance with,the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP),USPAP reporting Standard 2-2, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. - Texas Property Code, Title 4, Chapter 21, Subchapter A Project Name - Granada Lift Station Project Intended User -The intended user is MCCARTHY PARTNERS,LLC ("Client"),and the City of Denton and such other parties and entities (if any)expressly recognized by CBRE as "Intended Users". Intended Use -This report is intended only for use in conjunction with property acquisition for the proposed project.No other use or user of the report is permitted by any other party for any other purpose.Dissemination of this report by any party to any non-intended users does not extend reliance to any such party,and CBRE will not be responsible for any unauthorized use of or reliance upon the report,its conclusions or contents (or any portion thereof).Parties who receive or might receive a copy of the appraisal are not necessarily intended users.The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. Market Value Definition -“Market Value is the price which the property would bring when it is offered for sale by one who desires,but is not obligated to sell,and is bought by one who is under no necessity of buying it,taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.”City of Austin v.Cannizzo,267 S.W.2d 808 (Tex. 1954) CLIENT The client is the City of Denton through a subcontract with McCarthy Partners, LLC. INTEREST APPRAISED INTERESTS APPRAISED Fee Simple Estate 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. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 73 Temporary Easement An easement granted for a specific purpose and applicable for a specific time period. A construction easement, for example, is terminated after the construction of the improvement and the unencumbered fee interest in the land reverts to the owner. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 231 © 2023 CBRE, Inc. Scope of Work 11 The interest appraised includes the value of the rights to the fee owner, considering existing easements, encumbrances, and restrictions. The value of any mineral estate is excluded from this valuation, unless otherwise stated. Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor’s records • legal description Extent to Which the Property is Inspected Allison Jackson, SR/WA, RWA, R/W-AC, personally conducted an inspection on-site on September 18, 2023. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has personally inspected the property on-site on October 5, 2022. Effective Date The effective date is the most recent date of inspection. Type and Extent of the Data Researched The appraiser reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • comparable data Type and Extent of Analysis Applied The appraiser analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item:Source(s): Site Data Whole Property Public Records Acquisition Size Survey provided by the client Floodplain FEMA Zoning City of Denton Easements Survey provided by the client and Public Records Compiled by CBRE © 2023 CBRE, Inc. Subject Photographs 12 Subject Photographs (September 18, 2023) Primary Improvements (not impacted), looking south from Granada Trail Primary Improvements (not impacted), looking south from Granada Trail Northwest corner of the subject, looking south from Granada Trail Northwest corner of the subject, looking south along the existing utility and access easement from the subject’s driveway Granada Trail right-of-way, looking northwest Granada Trail right-of-way, looking southeast © 2023 CBRE, Inc. Subject Photographs 13 Subject Photographs (October 05, 2022) Western boundary of subject adjacent to fenced backyard (on left) facing south along utility and access easement driveway Western boundary of subject adjacent to fenced backyard (on right) facing north along utility and access easement driveway Southern portion of subject, in the vicinity of the TCE, facing south along utility and access easement area at public utility improvements Southern portion of subject, in the vicinity of the TCE facing north along utility and access easement area at public utility improvements © 2023 CBRE, Inc. Area Analysis 14 Area Analysis POPULATION Compiled by CBRE; Source: Esri The subject is located in the Dallas-Fort Worth-Arlington,TX Metropolitan Statistical Area. Key information about the area is provided in the following tables. The area has a population of 8,058,326 and a median age of 36,with the largest population group in the 30-39 age range and the smallest population in the 80+ age range. Population has increased by 1,691,784 since 2020,reflecting an increase of 4.8%. Population is projected to increase by an additional 546,689 by 2028,reflecting 1.3% population growth. 6,366,542 8,058,326 8,605,015 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2020 2023 2028 POPULATION BY YEAR 0 500,000 1,000,000 1,500,000 -79 80+ AREA POPULATION BY AGE © 2023 CBRE, Inc. Area Analysis 15 INCOME EDUCATION EMPLOYMENT Compiled by CBRE; Source: Esri The area includes a total of 4,184,108 employees and has a 3.6% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Prof/Scientific/Tech Services, which represent a combined total of 31% of the population. The area features an average household income of $115,034 and a median household income of $79,409. Over the next five years, median household income is expected to increase by 11.8%, or $1,881 per annum. A total of 40.4%of individuals over the age of 24 have a college degree,with 26.5% holding a bachelor's degree and 14.0% holding a graduate degree. $79,409 $88,816 $70,000 $75,000 $80,000 $85,000 $90,000 2023 2028 MEDIAN INCOME BY YEAR 26.5% 14.0%59.6% POPULATION BY DEGREE Bachelor's Degree Graduate Degree Other 0%2%4%6%8%10%12% Admin/Support/Waste Mgmt Srvcs Accommodation/Food Services Transportation/Warehousing Finance/Insurance Construction Educational Services Manufacturing Prof/Scientific/Tech Services Retail Trade Health Care/Social Assistance CONCLUSION In summary, the subject is forecasted to experience an increase in population, an increase in household income and an increase in household values. © 2023 CBRE, Inc. Neighborhood Analysis 16 Neighborhood Analysis © 2023 CBRE, Inc. Neighborhood Analysis 17 Location The subject is located in Denton County, Texas in an area known as the DFW Metroplex. General neighborhood characteristics are summarized below. NEIGHBORHOOD CHARACTERISTICS Location:(urban, suburban, rural)Suburban Built-Up:(>75%, 25-50%, <25%)25% - 75% Growth Rate / Change:(rapid, stable, slow)Stable Change in Present Land Use:(not likely, likely*, taking place*)Not Likely Neighborhood Boundaries North: South: East: West: Source: CBRE US 380/University Drive FM 1171 Lake Lewis IH-35W Land Use The local land use patterns are summarized as follows. NEIGHBORHOOD LAND USE Commercial Land Use Patterns Primary Commercial Thoroughfares: Major Demand Generators: Source: CBRE Denton is home to The University of North Texas, Texas Women's University, and many other large employers such as Peterbilt Motors, Texas Health Presbyterian Hospital Denton, Medical Ceity Denton, Joster's, Inc., Sally Beauty Supply, Inc., among others. IH-35E, US Highway 377, US-77, FM 2181, SH-288, and US 380 Surrounding land uses consist of residential, rural residential (residences on acreage) and commercial uses primarily along the major arterial thoroughfares. LAND USE Land uses within the subject neighborhood consist of a mixture of commercial and residential development. The immediate area surrounding the subject is an established area of development, consisting primarily of residential uses with much of the development being built during between 2000 and 2009. The majority of the single-family residential development within a one-mile radius of the subject may be described as homes in the $300,000 to $400,000 price range. The median home value within a one-mile radius is about 358,803. © 2023 CBRE, Inc. Neighborhood Analysis 18 Major commercial developments in the neighborhood include Golden Triangle Mall, University of North Texas, Texas Women’s University, Embassy Suites Hotel & Convention Center, WinCo Foods, Denton Regional Medical Center, Peterbilt Assembly Plant, the Woodlands Apartments, Denton Towne Center, Denton Towne Crossing, Walmart Supercenter, UNT Discovery Park, Aldi Distribution Center, United Copper Plant, and Texas Presbyterian Health Hospital. In addition, there are a number of regional and national free-standing retail buildings, fast food restaurants, gas stations, retail strip centers, bank branches, neighborhood and community shopping centers, grocery anchored shopping centers, and various other retail and commercial uses along the major roadways within the subject’s neighborhood. GROWTH PATTERNS Growth patterns have occurred primarily along major commercial thoroughfares such as Interstate Highway 35W, Interstate Highway 35E, US Highway 377, State Loop 288, and US Highway 380. Growth patterns have also occurred along secondary commercial thoroughfares within the neighborhood such as Mayhill Road, Woodrow Lane, McKinney Street, Locust Street, Elm Street, Mingo Road, and Sherman Drive. ACCESS The subject neighborhood is served by five national/regional highways: Interstate Highway 35W, Interstate Highway 35E, US Highway 377, State Loop 288, and US Highway 380. These arterials provide primary access to the neighborhood and provide good connectivity with the greater highway network throughout the Dallas/Fort Worth area. SURROUNDING LAND USE MAP Subject © 2023 CBRE, Inc. Neighborhood Analysis 19 DEMOGRAPHICS Selected employment demographics in a one-, three-, and five-mile radius from the subject are shown in the following table: 3712 Granada Trail Denton, TX 76205 Population 2028 Total Population 8,847 67,477 160,966 32,021,944 8,605,015 1,108,673 2023 Total Population 8,337 63,875 151,412 30,506,523 8,058,326 1,002,553 2010 Total Population 5,917 52,284 120,702 25,145,561 6,366,542 662,170 2000 Total Population 4,075 29,259 79,154 20,851,820 5,156,310 432,069 Annual Growth 2023 - 2028 1.19% 1.10% 1.23% 0.97%1.32% 2.03% Annual Growth 2010 - 2023 12.11% 6.90% 7.85% 6.65%8.17% 14.83% Annual Growth 2000 - 2010 3.80% 5.98% 4.31% 1.89%2.13% 4.36% Households 2028 Total Households 3,240 25,023 60,076 11,696,400 3,135,223 405,119 2023 Total Households 3,024 23,492 56,201 11,047,066 2,923,482 364,866 2010 Total Households 2,094 18,951 43,163 8,922,933 2,296,410 240,132 2000 Total Households 1,501 11,273 29,328 7,393,354 1,879,000 158,504 Annual Growth 2023 - 2028 1.39% 1.27% 1.34% 1.15%1.41% 2.12% Annual Growth 2010 - 2023 13.03% 7.42% 9.20% 7.38%8.38% 14.96% Annual Growth 2000 - 2010 3.39% 5.33% 3.94% 1.90%2.03% 4.24% Income 2023 Median Household Income $106,607 $83,468 $75,638 $69,529 $79,409 $101,372 2023 Average Household Income $153,927 $113,984 $108,100 $102,636 $115,034 $136,351 2023 Per Capita Income $56,653 $42,488 $40,391 $37,264 $41,785 $49,653 2023 Pop 25+ College Graduates 3,257 19,210 42,429 6,991,954 2,143,065 334,214 Age 25+ Percent College Graduates - 2023 57.0% 48.9% 47.0% 34.9%40.4% 51.1% Source: ESRI SELECTED NEIGHBORHOOD DEMOGRAPHICS Texas Dallas-Fort Worth- Arlington, TX Denton County1 Mile Radius 3 Mile Radius 5 Mile Radius Conclusion As shown above, the population within the subject neighborhood has experienced positive growth since 2000. The neighborhood currently has an average household income of $153,927 within a one-mile radius of the subject. The area is also reflecting a median household income of $106,607 for 2023. The outlook for the neighborhood is for continued growth over the next several years. As a result, the demand for existing developments is expected to be good. © 2023 CBRE, Inc. Site Analysis 20 TAX MAP Source: Denton County Appraisal District Subject © 2023 CBRE, Inc. Site Analysis 21 FLOOD PLAIN MAP Source: FEMA Subject © 2023 CBRE, Inc. Site Analysis 22 PLAT MAP Source: Denton County Public Records The subject is comprised of Lot 1. As depicted in the following exhibit, an approximately 50-foot- wide drainage easement encumbers the eastern boundary of the property. The subject’s eastern property line straddles the centerline of the 50-foot-wide easement. As such, the drainage easement is only approximately 25 feet in width on the subject site (noted in blue in the image below). The 16-foot utility and access easement encumbering the western portion of the site is also depicted (as noted in pink in the image below). Subject © 2023 CBRE, Inc. Site Analysis 23 SITE ANALYSIS The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 1.0261 Acres 44,695 Sq. Ft. Primary Road Frontage Granada Trail 250 Feet Average Depth Varies Shape Topography Zoning District Flood Map Panel No. & Date 48121C0386H June 19, 2020 Flood Zone Zone A Flood Notes Ingress/Egress Points Comparative Analysis Access Visibility Functional Utility Traffic Volume Adequacy of Utilities Drainage Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Source: Various sources compiled by CBRE Average Provider City of Denton Appears adequate City of Denton Various Providers Various Providers Various Providers Rating Average Average Average Triangular Generally Level R2: Residential Approx. 90% Zone A Granada Trail Average INGRESS/EGRESS The subject property currently has driveway access via Granada Trail. Granada Trail, at the subject, is an east/west and north/south residential street that has a dedicated width of 50 feet and is improved with one lane of traffic in each direction. Street improvements include asphalt paving, concrete curbs, and gutters. Street parking is permitted. © 2023 CBRE, Inc. Site Analysis 24 UTILITIES, SHAPE, AND FRONTAGE The site exhibits a triangular shape; however, this shape is typical for similar residential properties and is not considered to be a detriment to the functional utility of the site. The subject exhibits frontage along one residential roadway in the neighborhood (Granada Trail) and has all public utilities available to its site. TOPOGRAPHY AND DRAINAGE A drainage easement runs along the eastern perimeter of the site. As a result, this area is low lying and collects drainage and runoff from surrounding properties. Given the only location of varying topography is located along the eastern perimeter of the site, there is no negative impact to the overall development potential of the subject. With the exception of the drainage easement areas, the remaining portions of the site are generally level and at street grade. Overall, the topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist. SOILS A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. FLOOD ZONE We are not experts in determining flood zone elevations and we were not provided with a flood zone certificate for the subject. The reader is encouraged to consult with a professional engineer to determine the subject's actual flood zone status. Based on our review of FEMA Flood Panel 48121C0386H, approximately 90% the site is located within Zone A, which is an area that requires flood insurance. Based upon research conducted within the market area, residential use properties do not typically exhibit a significant impact in value due to flood encumbrances. While these flood encumbered areas exhibit some limited development potential, they are often located within or nearby areas with varying topography, drainage features, heavy vegetation, mature trees, etc. Generally, these types of physical features for a residential property are often desirable for buyers. Given the preceding, the flood encumbrance on the subject property is not considered to be overly detrimental to the subject site. Zone A is the flood insurance rate zone used for 1-percent-annual-chance (base flood) floodplains that are determined for the Flood Insurance Study (FIS) by approximate methods of analysis. Because detailed hydraulic analyses are not performed for such areas, no Base Flood Elevations (BFEs) or depths are shown in this zone. Mandatory flood insurance purchase requirements apply. © 2023 CBRE, Inc. Site Analysis 25 EASEMENTS AND ENCROACHMENTS A title commitment was not provided by the client. As mentioned previously, there is an existing 16’ public utility easement located along the western property line of the subject and two access easements located adjacent to the existing 16’ public utility easement which are considered typical utility and access easements and are not considered to impact marketability or highest and best use. Additionally, a 50’ drainage easement is located along the eastern boundary of the subject. This drainage easement area exhibits minimal functional utility and developmental potential. There are no other known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS A title commitment was not provided by the client. There are no known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all covenants, conditions and restrictions on the property, if any, prior to making a business decision. ENVIRONMENTAL ISSUES - SITE The appraiser is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. No hazardous substances which would affect value were noted by the appraiser (see Assumptions and Limiting Conditions). CONCLUSION The subject is well located and afforded average access and visibility from roadway frontage. The size and shape of the whole property are considered adequate and are not considered to limit development possibilities; however, approximately 90% of the subject is encumbered by Flood Zone A. Based upon research conducted within the market area, residential use properties do not typically exhibit a significant impact in value due to flood encumbrances. As such, the flood encumbrance on the subject property is not considered to be overly detrimental to the subject site. Additionally, there is an existing 16’ public utility easement and two access easements located on property which are not considered to impact marketability or highest and best use and a 50’ drainage easement which exhibits limited functional utility and developmental potential in the vicinity of the easement. There are no other known detrimental uses in the immediate vicinity. There are no other known factors which are considered to prevent the whole property from development to its highest and best use, as vacant. © 2023 CBRE, Inc. Improvement Analysis 26 Improvements Analysis The subject is a 1.0261-acre (44,695 sq. ft.) single-family residential lot located at 3712 Granada Trail in Denton, Texas. The subject is improved with a single-family residence and related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. © 2023 CBRE, Inc. Zoning 27 Zoning The subject is not located in the City of Denton and is zoned R2: Residential. ZONING SUMMARY Current Zoning Legally Conforming Uses Permitted Zoning Change Minimum Lot Size 16,000 Square Feet 44,695 Sq. Ft. Minimum Lot Width 80 Feet Non-Conforming Minimum Lot Depth 100 Feet Conforming Maximum Height 40 Feet Conforming Minimum Setbacks Front Yard 20 Feet Conforming Side Yard 10 Feet Conforming Rear Yard 10 Feet Conforming Maximum Bldg. Coverage 40%Conforming Source: City of Denton Planning & Zoning Dept. R2: Residential Yes The R2 district is intended to preserve existing single-family neighborhoods and ensure that any new developments promote walkability, access to parks, open space, and recreation amenities and are compatible with existing land uses and development patterns. Various uses are legally permissible. Not Likely The subject is currently zoned R2 - Residential by the City of Denton, which allows for various residential uses. Due to the subject’s triangular shape, the site is considered to non-conforming with regard to minimum lot with requirements. With the exception of the subject’s non- conformance with the regard to minimum lot width regulations, the subject site appears to be legally conforming in regard to zoning regulations. © 2023 CBRE, Inc. Zoning 28 CITY OF DENTON ZONING MAP Source: City of Denton GIS Maps Subject © 2023 CBRE, Inc. Tax and Assessment Data 29 Tax and Assessment Data The following summarizes the local assessor’s estimate of the subject’s market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. TAX INFORMATION Assessor Account ID(s)24088 Tax Year 2023 Assessed Land Acres 1.0261 Assessed Land SF 44,697 SF Assessor Improvement Value $566,746 Assessor Land Value $218,490 Assessor Total Market Value $785,236 Assessor Land Value/AC $212,932 Assessor Land Value/SF $4.89 Tax Rate 2.122825 Total Taxes $16,669 Tax Exemption The subject benefits from a homestead cap which consists of $132,611. Based on our analysis, the assessed value appears to be below market value. The local Assessor’s methodology for valuation is based upon mass appraisal techniques. It is not known how the Appraisal District estimated the size of the improvements. The local assessor’s methodology for valuation is fee simple market value. Under The Texas Property Tax Code, assessed value is supposed to represent 100% of market value via the use of all three approaches to value. However, this rarely happens. First, Texas is a non-disclosure state, and the sales price is not on any public document and does not have to be divulged. In addition, the owners of the subject property have the ability to protest the subject’s valuation in any given tax year regardless of whether or not there is an increase. Notifications of preliminary assessed value as of January 1st are mailed in March and April and the Appraisal District has to be notified of a value protest by June 1. Tax rates, set by the individual taxing authorities, are determined by September 30th of that year. © 2023 CBRE, Inc. Valuation Analysis – Whole Property 30 Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS IF VACANT Legal Permissibility Based on the legally permissible uses and the future land use designation, only residential uses are given further consideration in the following analysis. There is an existing 16’ public utility easement and two access easements located on the west property line which are not considered to impact marketability or highest and best use. Additionally, a 50’ drainage easement is located on the east property line. This drainage easement area exhibits minimal functional utility and developmental potential, but due to its location on the property line, its impact to the overall functional utility of the site is minimal. There are no other known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. There are also no known covenants, conditions, or restrictions impacting the subject that are considered to affect the marketability or highest and best use. Physical Possibility The subject is adequately served by utilities, and has an adequate shape and size, sufficient access, etc., to be a separately developable site. With the exception of the previously mentioned utility, access, and drainage easements, there are no other known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites within the subject neighborhood is additional evidence for the physical possibility of development. Financial Feasibility Consideration to existing land use trends has been given in determining feasible uses. Only those uses that are physically possible and legally permissible are given further consideration. Given the subject’s zoning, legal entitlements, location, frontage/access, and surrounding developments, a single-family residential use is determined to be most feasible for the property. Additionally, demand for single-family residential properties is high within the subject’s market area and many sites similar to the subject are being purchased for the development of single- family residential uses. Research within the market area indicates there is currently a shortage in supply for single-family residential properties and a scarce number of available lots within remain © 2023 CBRE, Inc. Valuation Analysis – Whole Property 31 in the subject’s subdivision and surrounding neighborhoods. Based on our analysis of the market, there is currently adequate demand for single-family residential use in the subject’s area. It appears that a newly developed single-family residential use on the site would have a value commensurate with its cost. Therefore, single-family residential use is financially feasible. Maximum Productivity - Conclusion Based on the information presented above and upon information contained in the market and neighborhood analysis, the highest and best use of the subject as if vacant would be the development of a single-family residential use. Analysis of the subject and its respective market characteristics indicate the most likely buyer, as if vacant, would be an owner-user or homebuilder. © 2023 CBRE, Inc. Valuation Analysis – Whole Property 32 Appraisal Methodology In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject •The appraiser analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The subject is valued as vacant land, so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. • The 'summation method' for valuation of a partial acquisition is utilized, as is required in the State of Texas. Total compensation is estimated as the value of the partial acquisition, plus © 2023 CBRE, Inc. Valuation Analysis – Whole Property 33 damages to the remainder (which may be offset by special benefits), plus any necessary costs to cure and temporary easements if they are part of the scope of the assignment. It is worth noting here that the fee simple interest of the subject property is appraised, and unified fee at that. This means that all interests and title are valued together. In reality, the leased fee valuation of the property may be different from the fee simple value because of the terms of existing leases. This appraisal follows the so-called unit rule which includes the valuation of all rights of any parties who may have an interest (such as tenants, life estate holders, remaindermen, leaseholders, etc.) in the subject as one. The exception is consideration of existing easement encumbrances. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 34 Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. SUMMARY OF COMPARABLE LAND SALES Actual Sale Adjusted Sale Size Price No.Property Location Type Date Zoning Price Price 1 (Acres) Per SF 1 3941 Maggies Meadow Denton, TX 76210 Sale Aug-23 R2: Residential $204,000 $204,000 0.839 $5.58 2 9725 Hester Lane Argyle, TX 76226 Sale Aug-23 City of Denton ETJ $340,000 $340,000 1.094 $7.14 3 4513 State School Road Denton, TX 76210 Sale Mar-23 R1: Residential $175,000 $175,000 1.088 $3.69 4 801 E Ryan Road Denton, TX 76210 Sale Jun-22 R2 - Single Family Residential $192,000 $192,000 0.806 $5.47 Subject 3712 Granada Trail, Denton, Texas ------R2: Residential ------1.026 --- 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE Transaction The sales utilized represent the best data available for comparison with the whole property and were selected from the neighborhood. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 35 DISCUSSION OF ADJUSTMENTS Based on our comparative analysis, the following discussion summarizes the adjustments warranted to each comparable. Property Rights Conveyed/Financing/Conditions of Sale All sales were indicated to be cash-to-seller transactions or financed by a third party at market terms and none appeared to occur under duress. As such, no adjustments for cash equivalency were necessary. Furthermore, the sales reflected arm’s length transactions; therefore, no adjustments for conditions of sale were warranted. The rights conveyed in the transactions are typical for this market and property type, warranting no additional adjustment. Market Conditions Based on analysis of market data from NTREIS, the Denton market area, experienced improving market conditions through 2019 and early 2020 prior to the COVID-19 outbreak in March 2020. Demand had been consistent for land since March 2020 through May 2022 with a slowdown since June 2022 as interest rates and inflation began rising. An upward adjustment of 10% annually was applied through May 2022, with a downward adjustment of 5% annually applied since June 2022. The comparables sold between June and August 2023. Land Sale 1 received no adjustment. Land Sales 2, 3, and 4 received net downward adjustments. Location Location can have a significant influence on value. Land Sale 2 is considered superior for location due to demographics and is adjusted downward. All remaining land sales are considered similar with regard to location compared to the subject and no adjustments were warranted. Size In this scenario, the subject is being valued on a per lot unit basis utilizing total sale price. Within this market, larger sized lots typically sell for a higher total price compared to smaller sized lots. All Land Sales utilized are similar in size compared to the subject are not adjusted. Shape The site exhibits a triangular shape; however, this shape is typical for similar residential properties and is not considered to be a detriment to the functional utility of the site. All Land Sales are considered similar with regard to shape compared to the subject and no adjustments were warranted. Frontage/Access Land Sales 1 and 2 are considered superior to the subject for frontage/access due to being located in cul-de-sacs, warranting downward adjustments. All remaining sales are considered similar with regard to frontage/access and were not adjusted. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 36 Physical Features The topography and flood encumbrance of a site often dictates a property’s developable and buildable area and are given consideration for physical features. For residential-use type properties, the aesthetical appeal of a site is also given consideration towards a property’s physical features. Items providing aesthetic appeal can be rolling topography, natural vegetation, mature trees, perimeter tree lines, water features, elevation/view, etc. A drainage easement is located along the eastern perimeter of the site. As a result, this area is low lying and collects drainage and runoff from surrounding properties. Given the location of the drainage easement along the eastern perimeter of the site, the easement and varying topography are not an impact to the overall development potential of the subject. With the exception of the drainage easement areas, the remaining portions of the site are generally level and at street grade. Approximately 90% of the subject property appears to be in located within Zone A, which is a high-risk area. Based upon research conducted within the market area, residential-use properties do not typically exhibit a significant impact in value due to flood encumbrances. While these flood encumbered areas exhibit some limited development potential, they are often located within or nearby areas with varying topography, drainage features, heavy vegetation, mature trees, etc. Generally, these types of physical features for a residential property are often desirable for buyers. Given the preceding, the flood encumbrance on the subject property is not considered to be overly detrimental to the subject site. As such, the sites flood encumbrance is considered to be generally offset by the aesthetically pleasing physical features resulting from the flood encumbered areas. The subject property is well-treed with mature caliper trees and a perimeter tree screen, which is considered desirable compared to a similar property with less tree canopy, all things considered equal. All land sales are considered similar with regard to physical features and are not adjusted. Zoning/Use The subject is zoned for residential use. All Land Sales are similar in regard to zoning/use and no adjustments are made. Utilities The subject has access to public water, sewer, and electric. Land Sales 2 and 4 do not have access to public water or sewer and are adjusted upward for this inferior feature. All remaining Land Sales have similar utility access and no adjustments were warranted. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 37 Amenities The subject property is located within the Montecito Del Sur subdivision, which has no significant amenities. Land Sales 1 and 2 are located in subdivision with Homeowners’ Associations and are consider superior with regard to amenities; thus, downward adjustments were applied. All remaining Land Sales utilized are located within developments and areas exhibiting sufficiently similar amenities compared to the subject and no adjustments are made. Legal Encumbrances As previously discussed, there is an existing 16’ public utility easement and two access easements which are not considered to impact marketability or highest and best use. Additionally, a 50’ drainage easement is located along the eastern boundary of the property; the bundle of rights in this area are considered to be substantially extinguished by the easement. However, given the drainage easement’s location along the perimeter of the site and the physical features associated with the easement, it is not considered to be a detriment to the functional utility or marketability of the subject property. As such, all land sales are considered similar for legal encumbrances and are not adjusted. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 38 SUMMARY OF ADJUSTMENTS It is noted the subject is a single-family residential lot. Based upon market norms, it is considered appropriate to value the subject on a per lot unit basis. As such, the lot values of the comparable sales are utilized to value the subject property as opposed to a price per square-foot or price per acre unit value. Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. LAND SALES ADJUSTMENT GRID LAND SALES ADJUSTMENT GRID Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor Jarret Hugghins and Myra Salcedo Pytcher Management, LLC and J4E, LLC Oakmont Partners JV, L.P.Andrey Gorokhovskiy Grantee Scott Wilson and Myra Salcedo SFT Family Trust, LLC Cheri Nicole Harvey and Desmond Pearson Manuel A. Velez Rodriguez and Lauren E. Kelley Transaction Type Sale Sale Sale Sale Date of Sale Sep-23 Aug-23 Aug-23 Mar-23 Jun-22 Address 3712 Granada Trail 3941 Maggies Meadow 9725 Hester Lane 4513 State School Road 801 E Ryan Road City, State Denton, TX Denton, TX Argyle, TX Denton, TX Denton, TX Gross Acres 1.0261 0.8390 1.0936 1.0881 0.8064 Gross Square Feet 44,695 36,547 47,636 47,399 35,128 Actual Sale Price $204,000 $340,000 $175,000 $192,000 Unit Price Per Sale Price $204,000 $340,000 $175,000 $192,000 Property Rights Conveyed Financing Conditions of Sale Market Conditions (Time)-5%0%-1%-3%-6% Adjusted $/Sale Price $204,000 $336,600 $169,750 $180,480 Location -10% Size Shape Frontage/Access -5%-5% Physical Features Zoning/Use Utilities 5%5% Amenities -10%-10% Legal Encumbrances Net Adjustment -15%-20%0%5% Indicated Unit Value $173,400 $269,280 $169,750 $189,504 Estimated Unit Value $200,000 Compiled by CBRE © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 39 CONCLUSION – WHOLE PROPERTY LAND VALUE – LOT VALUE Based on the preceding analysis, each of the land sales are considered representative of the subject site subsequent adjustment. The adjusted sales indicate a range of approximately $169,750 per lot to $269,280 per lot, and demonstrate a mean and median of $200,484 per lot and $181,452 per lot, respectively. In conclusion, a price per lot near the central tendency was considered appropriate. The following table presents the valuation conclusion for the whole property: WHOLE PROPERTY CONCLUDED LAND VALUE - SUBJECT LOT VALUE Sale Price # of Lots Unrounded Total Fee Area $200,000 x 1 $200,000 = $200,000 Compiled by CBRE CONCLUSION – WHOLE PROPERTY LAND VALUE - $/SF VALUE The valuation of partial acquisitions requires the allocation of a per unit value for the whole property to be applied to the proposed acquisition area. As such, the per lot unit value indicated in the table above is converted to a per square-foot unit value. This is presented in the following table. WHOLE PROPERTY LOT CONVERSION TO VALUE PER SF Subject Lot Value SF Unrounded Total Fee Area $200,000 x 44,695 $4.47 = $4.48 Compiled by CBRE Converting the subject’s lot value to a price per square-foot unit value results in an indicated unit value of $4.48 / SF. The per square-foot unit value is then applied to the proposed easement acquisition area to arrive at an estimation of compensation for the land areas acquired. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 40 Reconciliation of Value – Whole Property The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Land Value $200,000 Cost Approach N/A Sales Comparison Approach N/A Income Capitalization Approach N/A Compiled by CBRE The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The subject is valued as vacant land, so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. Based on the foregoing, the market value of the subject property before the acquisition has been concluded as follows: VALUATION SUMMARY - WHOLE PROPERTY Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements $0 Contributory Land Value (Itemized) Fee Area (44,695 SF)$200,000 $200,000 Reconciled Final Value $200,000 Compiled by: CBRE © 2023 CBRE, Inc. Part to be Acquired 41 Part to be Acquired There is no permanent partial acquisition associated with this parcel, only a temporary workspace easement. Therefore, there is no part acquired section within this report. © 2023 CBRE, Inc. Temporary Construction Easement 42 Temporary Construction Easement Temporary easements are utilized during the duration of a project for construction purposes. They are a temporary lease of the land and do not represent a permanent acquisition of rights. However, they affect the utility of the affected land during the duration of the easement and as such, a lease payment is due for its lifetime. We reiterate, it is an assumption of this report that the Temporary Construction Easement will be accessible via the existing access easement owned by the City of Denton. © 2023 CBRE, Inc. Temporary Construction Easement 43 Temporary Construction Easement The intended use of the temporary construction easement shall be used to facilitate the construction of public infrastructure, which shall include use of the easement property for access, construction staging and storage, and other construction activities. The easement area is needed for a construction period of 2 years. The City of Denton indicated that the easement area will be restored to a condition similar to the whole property condition (prior to the project) upon completion of construction. Therefore, no additional compensation beyond the estimated temporary construction easement ground lease is warranted. The temporary construction easement is a rectangularly-shaped area containing ±1,819 SF. Temporary Easement Valuation The temporary construction easement does not have the requisite characteristics to function as independent economic unit due to its small size and shape. The highest and best use of the acquisition area is as an integral part of the whole site. As such, the land value in the part to be acquired is based on same unit value as the whole property. Considering the intended use of the temporary construction easement, encumbrances of this nature are similar to a land lease, which is typically based on a specified annual rate of return on the value of the land. A range of annual returns for all property types from 3.72% to 17.57% was indicated by Realty Rates.com (3rd quarter 2023 data), with an average of 8.90%. A rate higher than the average is applied to the subject due to the nominal value of the temporary easement. Therefore, an annual land lease rate of 10% is considered reasonable and market supported; it is applied to the previously determined unit value, to estimate the value of the easement estate as follows: TEMPORARY WORKSPACE EASEMENT Area Price Per SF Rental Rate Temp Esmt Value TCE 1,819 SF $4.48 x 10%@ 2 Yr $1,630 Compiled by CBRE TermSize © 2023 CBRE, Inc. Summary of Compensation 44 Summary of Compensation In the final accounting, the estimate of total compensation includes the value of the acquisition, the difference between the appraisers’ opinion before and after the acquisition, and any potential curative costs or temporary construction easements. These opinions are based upon market data available as of the effective date of the appraisal. These estimates are totaled to arrive at the opinion of total compensation as follows. CONCLUDED MARKET VALUE Larger Parcel $200,000 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $200,000 Remainder After Consideration of Damages $200,000 Net Damages or Benefits $0 Temporary Easements $1,630 Total Compensation $1,630 © 2023 CBRE, Inc. Assumptions and Limiting Conditions 45 Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently or super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. © 2023 CBRE, Inc. Assumptions and Limiting Conditions 46 (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or behalf of the client, property owner, or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including without limitation any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. © 2023 CBRE, Inc. Assumptions and Limiting Conditions 47 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. 16. CBRE, Inc. is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the land or improvements. The existence of such substances may affect the value of the property. For the purpose of this assignment, we have assumed there are no hazardous materials that would cause a loss in value to the subject. © 2023 CBRE, Inc. Addenda ADDENDA © 2023 CBRE, Inc. Addenda Addendum A LAND SALE DATA SHEETS © 2023 CBRE, Inc. Sale Land - Single Unit Residential No. 1 Property Name 0.839 Acres of Land Address 3941 Maggies Meadow Denton, TX 76210 County Denton Govt./Tax ID 216630 Land Area Net 0.839 ac/ 36,547 sf Land Area Gross 0.839 ac/ 36,547 sf Site Development Status Platted Utilities Public Water, Sewer, and Electric Maximum FAR N/A Min Land Bldg Ratio N/A Shape Rectangular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0370G/ Apr 2011 Zoning R2: Residential Entitlement Status N/A Transaction Details Type Sale Primary Verification Selling Broker, Mistie Parks Interest Transferred Fee Simple Transaction Date 08/21/2023 Condition of Sale Arms-Length Recording Date 08/21/2023 Recorded Buyer Scott Wilson and Myra Salcedo Sale Price $204,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Jarret Hugghins and Myra Salcedo Cash Equivalent $204,000 Marketing Time 3 Month(s)Capital Adjustment $0 Listing Broker Mistie Parks (972) 965-9657 Adjusted Price $204,000 Doc #2023-89620 Adjusted Price / ac and / sf $243,147 / $5.58 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 0.839 acres of land at 3941 Maggies Meadow in Denton, Texas. The site has generally level topography, contains no areas of floodplain, has public water, sewer, and electric available, and is currently zoned R2: Residential. The property sold in August 2023 for a reported sale price of $204,000, or $5.58 per square foot. © 2023 CBRE, Inc. Sale Land - Single Unit Residential No. 2 Property Name 1.0936 Acres of Land Address 9725 Hester Lane Argyle, TX 76226 County Denton Govt./Tax ID 989354 Land Area Net 1.094 ac/ 47,636 sf Land Area Gross 1.094 ac/ 47,636 sf Site Development Status Raw Utilities Electric Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0370G/ Apr 2011 Zoning City of Denton ETJ Entitlement Status N/A Transaction Details Type Sale Primary Verification Listing Broker, Bill Clarkson Interest Transferred Fee Simple Transaction Date 08/07/2023 Condition of Sale Arms-Length Recording Date 08/10/2023 Recorded Buyer SFT Family Trust, LLC Sale Price $340,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Pytcher Management, LLC and J4E, LLC Cash Equivalent $340,000 Marketing Time 8 Month(s)Capital Adjustment $0 Listing Broker Bill Clarkson (214) 708-3241 Adjusted Price $340,000 Doc #2023-85406 Adjusted Price / ac and / sf $310,900 / $7.14 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 1.0936 acres of land at 9725 Hester Lane in Argyle, Texas. The site has generally level topography, contains no areas of floodplain, has electric available, and is currently zoned City of Denton ETJ. The property sold in August 2023 for a reported sale price of $340,000, or $7.14 per square foot. © 2023 CBRE, Inc. Sale Land - Single Unit Residential No. 3 Property Name 1.0881 Acres of Land Address 4513 State School Road Denton, TX 76210 County Denton Govt./Tax ID 1012715 Land Area Net 1.088 ac/ 47,399 sf Land Area Gross 1.088 ac/ 47,399 sf Site Development Status Raw Utilities Public Water, Sewer, and Electric Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0387H/ Jun 2020 Zoning R1: Residential Entitlement Status N/A Transaction Details Type Sale Primary Verification Listing Broker, Chase Traughber Interest Transferred Fee Simple Transaction Date 03/14/2023 Condition of Sale Arms-Length Recording Date 03/16/2023 Recorded Buyer Cheri Nicole Harvey and Desmond Pearson Sale Price $175,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Oakmont Partners JV, L.P.Cash Equivalent $175,000 Marketing Time 1 Month(s)Capital Adjustment $0 Listing Broker Chase Traughber (972) 515-0045 Adjusted Price $175,000 Doc #2023-25445 Adjusted Price / ac and / sf $160,831 / $3.69 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 1.0881 acres of land at 4513 State School road in Denton, Texas. The site has generally level topography, contains no areas of floodplain, has public water, sewer, and electric available, and is currently zoned R1: Residential. The property sold in March 2023 for a reported sale price of $175,000, or $3.69 per square foot. © 2023 CBRE, Inc. Sale Land - Single Unit Residential No. 4 Property Name 0.806 Acres of Land Address 801 E Ryan Road Denton, TX 76210 County Denton Govt./Tax ID 766453 Land Area Net 0.806 ac/ 35,128 sf Land Area Gross 0.806 ac/ 35,128 sf Site Development Status Platted Utilities All in Proximity Maximum FAR N/A Min Land Bldg Ratio N/A Shape Rectangular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0370G/ Apr 2011 Zoning R2 - Single Family Residential Entitlement Status N/A Transaction Details Type Sale Primary Verification Listing Agent - Collin Roberts (469) 485-7806 Interest Transferred Fee Simple Transaction Date 06/27/2022 Condition of Sale Arms-Length Recording Date 07/05/2022 Recorded Buyer Manuel A. Velez Rodriguez and Lauren E. Kelley Sale Price $192,000 Buyer Type N/A Financing Market Rate Financing Recorded Seller Andrey Gorokhovskiy Cash Equivalent $192,000 Marketing Time 2 Month(s)Capital Adjustment $0 Listing Broker Collin Roberts (469) 485-7806 Adjusted Price $192,000 Doc #98038 Adjusted Price / ac and / sf $238,095 / $5.47 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments The property is an approximately 0.807-acre single-family residential, vacant lot located on the northeast corner of E Ryan Road and Leisure Lane at 803 Leisure Lane, Denton, TX, east of US-377 and west of Interstate 35E. The property is not located within a master-planned community but is surrounded by various single-family residential subdivisions. The property was purchased for residential development and sold for a reported sale price of $192,000. The site is generally level throughout, contains no areas of floodplain, and is zoned for residential uses. The confirmation source, Collin Roberts - listing agent, the seller purchased and provided engineering plans for the property at a reported cost of $50,000. The engineering plans reportedly indicated there are no utilities directly available the site. A review of City of Denton utility maps indicates a sewer main runs east/west along the southern boundary of the site; however, the nearest waterline is located along the south side of E Ryan Road. As such, extension of the waterline under the roadway or a water well will be required for development to occur. The engineering report went on to indicate approximately $50,000 to $100,000 in site work would likely be required for the development of the property, which includes drainage work, site clearing, and utility connections. The seller was reportedly an investor and needed to move the property at the time of sale. As such, the sale price was lowered prior to its sale from the original listing price of $225,000 to $199,000. The property sold on 6/27/2022 for a reported total sale price of $192,000, which generally agrees with market norms and other similar transactions. © 2023 CBRE, Inc. Addenda Addendum B OWNER CONTACT © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES CBRE, Inc. 301 Commerce Street Suite 3131 Fort Worth, Texas 76102 Allison Jackson, SR/WA, RWA, R/W-AC Vice President September 5, 2023 Jeffrey R. and Margaret L. Langlitz 3712 Granada Trail Denton, Texas 76205-5514 RE: Appraisal for the City of Denton Granada Lift Project in Denton County, Texas Temporary Construction Easement 3712 Granada Trail Denton, Texas 76205-5514 Dear Owner/Owner Representative: CBRE has been contracted by McCarthy Partners to appraise the above referenced property on the City of Denton Granada Lift Project in Denton County, Texas. The purpose of the appraisal is to estimate the market value of the portion of the property needed for various easements at this particular location. According to Denton County Appraisal District, you are the owner/representative of the above referenced property, which has been identified as part of the proposed right-of-way project. As part of the appraisal process and according to our engagement agreement, it is necessary we contact the property owner in conjunction with the appraisal. We would like to extend to you, or your designated representative, the opportunity to accompany us on the inspection and to disclose any information about the property that you consider pertinent. Your presence is not mandatory during the inspection, but it is necessary that we contact you either via email or phone. This will give us the best chance to address your concerns and identify relevant property characteristics. If you cannot accompany us during the inspection, you can grant permission to inspect unaccompanied or an inspection will be made from the roadway. Please fill-out and return the following CBRE Questionnaire. In addition, please contact Allison Jackson, SR/WA, RWA, R/W-AC (allison.jackson@cbre.com) or 817-899-6440 to schedule a specific time to meet. We greatly appreciate your prompt attention to this matter. We look forward to hearing from you or your representatives, and we appreciate your cooperation during this project. Best regards, CBRE, INC. Valuation & Advisory Services Allison Jackson, SR/WA, RWA, R/W-AC Vice President TX-1380217-G © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES CBRE, Inc. 301 Commerce Street Suite #3131 Fort Worth, Texas 76102 www.cbre.com Please complete and return the following by mail or email (allison.jackson@cbre.com). Subject Property: 3712 Granada Trail Type of Easement: Temporary Construction Easement Client: McCarthy Partners Project: City of Denton Granada Lift Project Owner: Jeffrey R. and Margaret L. Langlitz Check applicable boxes: I am the owner of the referenced property You may inspect unaccompanied Please contact before inspection I would like to be present at the inspection The property is currently listed for sale for $____________________ Permission Granted by: Phone Number: Email: Point of Contact for Entry (if different from above): Relationship of Point of Contact: __________________________________________________ _____________________ Signature Date © 2023 CBRE, Inc. Addenda Addendum C PROJECT INFORMATION © 2023 CBRE, Inc. © 2023 CBRE, Inc. © 2023 CBRE, Inc. Addenda Addendum D SUBJECT INFORMATION © 2023 CBRE, Inc. © 2023 CBRE, Inc. © 2023 CBRE, Inc. Addenda Addendum E QUALIFICATIONS © 2023 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL – FORT WORTH Allison Jackson, SR/WA, RWA, R/W-AC Vice President, Fort Worth, TX T +1 817 806 1042 M +1 817 899 6440 E Allison.jackson@cbre.com Lic. TX 1380451-G Professional Experience Allison Jackson, SR/WA, RWA, R/W-AC, is a Vice President of the Valuation & Advisory Services Group within the South-Central Region. Located in the Fort Worth office, Ms. Jackson has over a decade of real estate appraisal and consulting experience throughout the State of Texas, with a primary focus on right of way valuations and expert witness testimony support. Prior to joining CBRE in 2018, Ms. Jackson was with JLL after their 2016 acquisition of her previous employer, Integra Realty Resources. Ms. Jackson was with Integra Realty Resources for over eight years serving as an Analyst before being promoted to Senior Analyst. During her tenure, she assisted in valuation and consulting services on various property types, working extensively on eminent domain assignments. Ms. Jackson’s experience in appraisal includes projects for the Texas Department of Transportation (TxDOT), various local municipalities, Trinity River Authority (TRA), ONCOR, Dallas Area Rapid Transit, Tarrant Regional Water District, TEXRail and various other pipeline and electrical transmission line companies. Ms. Jackson is a senior right of way professional within the International Right of Way Association as she holds the SR/WA, RWA and R/W-AC designations. In addition, Ms. Jackson is a Candidate for Designation within the Appraisal Institute actively pursuing her MAI designation. Pro Affiliations / Accreditations ‒ Certified General Appraiser, State of Texas ‒ International Right of Way Association, Chapter 36 Member (SR/WA, RWA, R/W- AC Designations) ‒ Appraisal Institute, Candidate for Designation Education ‒ Texas A&M University, College Station, Texas ‒ Master of Real Estate (2009) ‒ Bachelor of Business Administration, Marketing (2008) ‒ Successfully completed numerous real estate related courses and seminars sponsored by the International Right of Way and the Appraisal Institute © 2023 CBRE, Inc. Appraiser: Allison Christine Jackson License #: TX 1380451 G License Expires: 06/30/2025 Chelsea BuchholtzCommissioner Certified General Real Estate Appraiser Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov. ALLISON CHRISTINE JACKSON 301 COMMERCE STREET SUITE 3131 FORT WORTH, TX 76102 © 2023 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL TEAM LEAD / TEXAS Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Director, Austin, TX T +1 512 499 4911 E cathy.thomas@cbre.com Lic. TX 1336636 G Professional Experience Catherine Thomas is a Director with CBRE’s Valuation & Advisory Services group in Austin, Texas and co-manages the Texas Right of Way Appraisal Team. Ms. Thomas has more than nineteen years of real estate appraisal and consulting experience with the majority of her experience being in right-of-way. Her appraisal background includes analysis and appraisal of properties for lending, litigation, right-of-way and other purposes under eminent domain. She is a MAI, SRA and AI-GRS designated member of the Appraisal Institute and holds the Right-of-Way Appraiser certification (R/W-AC) of the International Right of Way Association (IRWA). Ms. Thomas has served on the board of directors for IRWA Austin Chapter 74 since 2014 and was elected Chapter Secretary in 2021 and Chapter Treasurer in 2022; she currently serves as Chapter Vice President in 2023. Ms. Thomas is well versed in providing litigation support for ongoing cases and has provided expert testimony in numerous special commissioners’ hearings across Texas; her eminent domain experience includes appraisal of full and partial fee and easement acquisitions for numerous utility providers, municipalities and governmental entities, as well as property owners, throughout Texas. Awards IRWA Chapter 74 Professional of the Year (2020) Pro Affiliations / Accreditations ‒ Certified General Appraiser, State of Texas ‒ Appraisal institute, Designated Member (MAI, SRA, AI-GRS) ‒ International Right of Way Association (R/W-AC) ‒ Certified Department of Transportation Appraiser, State of Texas ‒ American Taekwondo Association, 3rd Degree Black Belt Education ‒ St. Edward’s University, Master of Arts in Human Services ‒ The University of Texas at Austin, Bachelor of Arts ‒ Continuing Education, various Appraisal Courses © 2023 CBRE, Inc. Appraiser: Catherine A Thomas License #: TX 1336636 G License Expires: 01/31/2025 Chelsea BuchholtzCommissioner Certified General Real Estate Appraiser Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov. CATHERINE A THOMAS 500 W 2ND STREET, SUITE 1700 AUSTIN, TX 78701 © 2023 CBRE, Inc. Addenda ALLISON JACKSON, SR/WA, RWA, R/W-AC Valuation & Advisory Services (817) 806-1042 Allison.Jackson@cbre.com CATHERINE A. THOMAS, MAI, SRA, AI-GRS, R/W-AC Valuation & Advisory Services (512)499-4911 Cathy.Thomas@cbre.com www.cbre.com CBRE VALUATION & ADVISORY SERVICES © 2023 CBRE, Inc.