HomeMy WebLinkAboutDCAD # 285204 Report - Moisony Flores
DCAD # 285204
HARTLEE FIELD ROAD
DENTON, TEXAS 76208
CBRE FILE NO. 21-361RW-0522-3
CLIENT: CITY OF DENTON-REAL ESTATE DIVISION
CLIENT REFERENCE NO.: 400333470
A PPRAISAL
REPORT
CBRE VALUATION & ADVISORY SERVICES
VALUATION & ADVISORY SERVICES
2100 McKinney Avenue, Suite 700
Dallas, TX 75201
T (214) 979-6100
F (214) 979-6395
www.cbre.com
Date of Report: December 9, 2021
City of Denton-Real Estate Division
Attn: Christopher Singleton.
401 N. Elm Street
Denton, Texas 76201
RE: Appraisal of: DCAD # 285204 (6 acres in total)
Hartlee Field Road
Denton, Denton County, Texas
CBRE, Inc. File No. 21-361RW-0522-3
Client Reference No.: 400333470
Mr. Singleton:
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 6.00-acre tract improved with a single-family residence and related site
improvements and is located northwest of the northern terminus of Hartlee Field Road, Denton
County, Texas. The property is being considered for purchase.
Based on the analysis contained in the following report, the market value of the subject is
concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value - As Is Fee Simple Estate November 22, 2021 $650,000
Compiled by CBRE
The report, in its entirety, including all assumptions and limiting conditions, is an integral part of,
and inseparable from, this letter.
As of the date of value and the date of this report, the nation, region, and market area are
impacted by the COVID-19 pandemic. This could have a prolonged effect on macroeconomic
conditions, though at this time the length of duration is unknown. The perceived impact on real
estate varies on several factors including asset class, use, tenancy, and location. Our analysis
considers available information as of the effective date.
City of Denton-Real Estate Division
Christopher Singleton.
December 9, 2021
Page 2
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. It also conforms to Title XI Regulations and the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further
updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010.
The intended use and user of our report are specifically identified in our report as agreed upon in
our contract for services and/or reliance language found in the report. 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).
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
Mark R. Sadler
Vice President
Texas Certification No. 1380142-G
Phone: (817) 333-1119
Fax: (214) 979-6395
Email: mark.sadler@cbre.com
Certification
i
DCAD # 285204, Denton, Texas
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 our personal, impartial and unbiased professional analyses,
opinions, and conclusions.
3. We have no present or prospective interest in or bias with respect to the property that is the subject
of this report and have no personal interest in or bias with respect to the parties involved with this
assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
5. Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
6. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice, as well as the
requirements of the State of 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, Mark R. Sadler has completed the Standards and Ethics Education
Requirements for Candidates of the Appraisal Institute.
10. Mark R. Sadler has made a personal inspection of the property that is the subject of this report.
11. No one provided significant real property appraisal assistance to the persons signing this report.
12. 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.
13. Mark R. Sadler 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
agreement to perform this assignment.
Mark R. Sadler
Texas Certification No. 1380142-G
Subject Aerial
ii
DCAD # 285204, Denton, Texas
Subject Aerial
Denton CAD Aerial Map
Note: The image and outline above are presented to merely assist the reader in visualizing the
subject. It is not a legal representation or considered to represent a survey of the subject.
Executive Summary
iii
DCAD # 285204, Denton, Texas
Executive Summary
Location
Parcel Number(s)
Client
Highest and Best Use
As If Vacant
Property Rights Appraised Fee Simple Estate
Date of Inspection
Estimated Exposure Time
Estimated Marketing Time
Primary Land Area 6.000 AC 261,360 SF
Zoning
Improvements
Property Type Residential
Number of Buildings 1
Number of Stories 2
Gross Living Area 2,228 SF
Number of Beds 4
Number of Baths 3
Year Built 2005
Condition Average
Buyer Profile Owner-User
3 - 6 Months
3 - 6 Months
N/A - Unincorprated
November 22, 2021
Agricultural/Recreational/Rural Residential
Hartlee Field Road
Denton, Denton County, TX 76208
City of Denton-Real Estate Division
285204
Comments
(Single-Family Residence)
per DCAD
per MLS
per MLS
CONCLUDED MARKET VALUE
Appraisal Premise Interest Appraised Value
Market Value - As Is Fee Simple Estate $650,000
Compiled by CBRE
Date of Value
November 22, 2021
Executive Summary
iv
DCAD # 285204, Denton, Texas
IMPORTANT WARNING - MATERIAL VOLATILITY AND UNCERTAINTY ASSOCIATED
WITH THE NOVEL CORONAVIRUS
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation
as a “Global Pandemic” on the 11th March 2020.
With vaccination rollouts and the lifting of occupancy restrictions becoming common across the
United States, many real estate market sectors and locations are experiencing a return to relative
normalcy. In these types of markets, property sales and leasing activity are recovering and there
is less uncertainty regarding how investors and tenants are responding to the impacts of COVID-
19.
Still, other property types and locations are impacted by uncertainty, providing limited sales and
leasing activity as evidence for economic assumptions. During our investigation of market data
for the subject of this report we were able to identify market activity e.g. sales and leasing activity
that has occurred since March of 2020 (or the inception of the Global Pandemic). Due to the
availability of market data we believe the impacts of COVID-19 on this property type has been
adequately considered.
EXTRAORDINARY ASSUMPTIONS
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
An interior inspection of the improvements was not performed. It is assumed that the
condition of the improvements is consistent with their age and similar properties in the
neighborhood.
HYPOTHETICAL CONDITIONS
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
None noted
1 The Appraisal Foundation, USPAP, 2020-2021
2 The Appraisal Foundation, USPAP, 2020-2021
Executive Summary
v
DCAD # 285204, Denton, Texas
OWNERSHIP AND PROPERTY HISTORY
OWNERSHIP SUMMARY
Item Current
Current Ownership
Owner: Moisony Jordan Flores
Seller: Johnny Davidson and Jody Dawn Mejia
Purchase Price: An unknown price
Transaction Date: Dec 30, 2020
Sale in Last 3 Years?: Yes
Legal Description: 6.000 acres in the J. Douthitt Survey, Abstract No. 329,
Denton County, Texas
County/Locality Name: Denton
Buyer/Seller Relationship Type: Arm's length and reasonable
At / Above / Below Market: N/A
Pending Sale
Under Contract: No
Current Listing
Currently Listed For Sale: No
Compiled by CBRE
EXPOSURE/MARKETING TIME
Current appraisal guidelines require an estimate of a reasonable time period in which the subject
could be brought to market and sold. This reasonable time frame can either be examined
historically or prospectively. In a historical analysis, this is referred to as exposure time. Exposure
time always precedes the date of value, with the underlying premise being the time a property
would have been on the market prior to the date of value, such that it would sell at its appraised
value as of the date of value. On a prospective basis, the term marketing time is most often
used. The exposure/marketing time is a function of price, time, and use. It is not an isolated
estimate of time alone. In consideration of these factors, we have analyzed the following:
exposure periods for comparable sales used in this appraisal;
exposure/marketing time information from the CBRE, Inc. National Investor Survey and the
PwC Real Estate Investor Survey; and
the opinions of market participants.
The following table presents the information derived from these sources.
EXPOSURE/MARKETING TIME DATA
Exposure/Mktg. (Months)
Investment Type Range Average
CBRE Exposure Time Estimate
CBRE Marketing Period Estimate
Various Sources Compiled by CBRE
3 - 6 Months
3 - 6 Months
Table of Contents
vi
DCAD # 285204, Denton, Texas
Table of Contents
Certification ......................................................................................................................... i
Subject Aerial ...................................................................................................................... ii
Executive Summary ............................................................................................................. iii
Table of Contents ................................................................................................................ vi
Scope of Work ..................................................................................................................... 1
Area Analysis ...................................................................................................................... 6
Neighborhood Analysis ....................................................................................................... 8
Site Analysis ...................................................................................................................... 11
Improvement Analysis ....................................................................................................... 13
Zoning .............................................................................................................................. 14
Tax and Assessment Data .................................................................................................. 15
Highest and Best Use ........................................................................................................ 16
Improved Value ................................................................................................................. 17
Reconciliation of Value ...................................................................................................... 20
Assumptions and Limiting Conditions ................................................................................ 21
ADDENDA
A Improved Sale Information
B Subject Information
C Client Contract Information
D Qualifications
Scope of Work
1
DCAD # 285204, Denton, Texas
Scope of Work
This Appraisal Report is intended to comply with the reporting requirements set forth under
Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in
which research is conducted, data is gathered, and analysis is applied.
INTENDED USE OF REPORT
This appraisal is to be used as an aid in internal decision making related to a potential purchase
of the identified property. No other use is permitted.
CLIENT
The client is City of Denton-Real Estate Division.
INTENDED USER OF REPORT
This appraisal is to be used by City of Denton, and no other user may rely on our report unless as
specifically indicated in the report.
Intended users are those who an appraiser intends will use the appraisal or review
report. In other words, appraisers acknowledge at the outset of the assignment that
they are developing their expert opinions for the use of the intended users they
identify. Although the client provides information about the parties who may be
intended users, ultimately it is the appraiser who decides who they are. This is an
important point to be clear about: The client does not tell the appraiser who the
intended users will be. Rather, the client tells the appraiser who the client needs the
report to be speaking to, and given that information, the appraiser identifies the
intended user or users. It is important to identify intended users because an
appraiser’s primary responsibility regarding the use of the report’s opinions and
conclusions is to those users. Intended users are those parties to whom an appraiser is
responsible for communicating the findings in a clear and understandable manner.
They are the audience. 3
PURPOSE OF THE APPRAISAL
The purpose of this appraisal is to estimate the market value of the subject property.
3 Appraisal Institute, The Appraisal of Real Estate, 15th ed. (Chicago: Appraisal Institute, 2020), 40.
Scope of Work
2
DCAD # 285204, Denton, Texas
DEFINITION OF VALUE
The current economic definition of market value agreed upon by agencies that regulate federal
financial institutions in the U.S. (and used herein) is as follows:
The most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised, and acting in what they consider their own
best interests;
3. a reasonable time is allowed for exposure in the open market;
4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
5. the price represents the normal consideration for the property sold unaffected by special
or creative financing or sales concessions granted by anyone associated with the sale. 4
INTEREST APPRAISED
The value estimated represents Fee Simple Estate as defined below:
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. 5
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
The extent of the inspection included the following: a cursory inspection of the subject site, as well
as its surrounding environs on the effective date of appraisal.
4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,
Page 77472.
5 Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015), 90.
Scope of Work
3
DCAD # 285204, Denton, Texas
Type and Extent of the Data Researched
CBRE reviewed the following:
applicable tax data
zoning requirements
flood zone status
demographics
comparable data
Type and Extent of Analysis Applied
CBRE, Inc. 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. For
vacant land, the sales comparison approach has been employed for this assignment.
Data Resources Utilized in the Analysis
DATA SOURCES
Item: Source(s):
Site Data
Size Public Records
Improved Data
Building Area DCAD & MLS
Area Breakdown/Use DCAD & MLS
Year Built/Developed DCAD & MLS
Other
Flood FEMA flood maps
Zoning N/A - Unincorporated
Compiled by CBRE
Scope of Work
4
DCAD # 285204, Denton, Texas
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. Depending on
a specific appraisal assignment, any of the following four methods may be used to determine the
market value of the fee simple interest of land:
Sales Comparison Approach;
Income Capitalization Procedures;
Allocation; and
Extraction.
The following summaries of each method are paraphrased from the text.
The first is the sales comparison approach. This is a process of analyzing sales of similar,
recently sold parcels in order to derive an indication of the most probable sales price (or value) of
the property being appraised. The reliability of this approach is dependent upon (a) the
availability of comparable sales data, (b) the verification of the sales data regarding size, price,
terms of sale, etc., (c) the degree of comparability or extent of adjustment necessary for
differences between the subject and the comparables, and (d) the absence of nontypical
conditions affecting the sales price. This is the primary and most reliable method used to value
land (if adequate data exists).
The income capitalization procedures include three methods: land residual technique, ground
rent capitalization, and Subdivision Development Analysis. A discussion of each of these three
techniques is presented in the following paragraphs.
The land residual method may be used to estimate land value when sales data on
similar parcels of vacant land are lacking. This technique is based on the principle of
balance and the related concept of contribution, which are concerned with equilibrium
among the agents of production--i.e. labor, capital, coordination, and land. The land
residual technique can be used to estimate land value when: 1) building value is
known or can be accurately estimated, 2) stabilized, annual net operating income to
the property is known or estimable, and 3) both building and land capitalization rates
can be extracted from the market. Building value can be estimated for new or
proposed buildings that represent the highest and best use of the property and have
not yet incurred physical deterioration or functional obsolescence.
The subdivision development method is used to value land when subdivision and
development represent the highest and best use of the appraised parcel. In this
method, an appraiser determines the number and size of lots that can be created
from the appraised land physically, legally, and economically. The value of the
underlying land is then estimated through a discounted cash flow analysis with
revenues based on the achievable sale price of the finished product and expenses
based on all costs required to complete and sell the finished product.
The ground rent capitalization procedure is predicated upon the assumption that
ground rents can be capitalized at an appropriate rate to indicate the market value of
a site. Ground rent is paid for the right to use and occupy the land according to the
Scope of Work
5
DCAD # 285204, Denton, Texas
terms of the ground lease; it corresponds to the value of the landowner's interest in the
land. Market-derived capitalization rates are used to convert ground rent into market
value. This procedure is useful when an analysis of comparable sales of leased land
indicates a range of rents and reasonable support for capitalization rates can be
obtained.
The allocation method is typically used when sales are so rare that the value cannot be estimated
by direct comparison. This method is based on the principle of balance and the related concept
of contribution, which affirm that there is a normal or typical ratio of land value to property value
for specific categories of real estate in specific locations. This ratio is generally more reliable
when the subject property includes relatively new improvements. The allocation method does not
produce conclusive value indications, but it can be used to establish land value when the number
of vacant land sales is inadequate.
The extraction method is a variant of the allocation method in which land value is extracted from
the sale price of an improved property by deducting the contribution of the improvements, which
is estimated from their depreciated costs. The remaining value represents the value of the land.
Value indications derived in this way are generally unpersuasive because the assessment ratios
may be unreliable and the extraction method does not reflect market considerations.
METHODOLOGY APPLICABLE TO THE SUBJECT
For the purposes of this analysis, we have utilized the sales comparison approach. The other
methodologies are used primarily when comparable sales data is non-existent or when it is an
income-producing property. Therefore, these approaches have not been used.
Area Analysis
6
DCAD # 285204, Denton, Texas
Area Analysis
POPULATION
Source: ESRI, downloaded on Nov, 30 2021
The subject is located in Denton County. Key information about the area is provided in the
following tables.
The area has a population of 948,666 and a
median age of 35, with the largest population
group in the 30-39 age range and the smallest
population in 80+ age range.
Population has increased by 286,052 since
2010, reflecting an annual increase of 3.3%.
Population is projected to increase by an
additional 137,667 by 2026, reflecting 2.7%
annual population growth.
662,614
948,666
1,086,333
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2010 2021 2026
POPULATION BY YEAR
0
50,000
100,000
150,000
200,000
0‐910‐19 20‐29 30‐39 40‐49 50‐59 60‐69 70‐79 80+
AREA POPULATION BY AGE
Source: Esri
Source: Esri
Area Analysis
7
DCAD # 285204, Denton, Texas
INCOME
EDUCATION
EMPLOYMENT
Source: ESRI, downloaded on Nov, 30 2021; BLS.gov dated Sep, 1 2021 (preliminary)
The area includes a total of 475,448 employeesandhasa4.4%unemploymentrate.Thetop
three industries within the area are Retail Trade, Prof/Scientific/Tech Services and Health
Care/Social Assistance, which represent a combined total of 33% of the population.
The area features an average household
income of $120,855 and a median household
income of $93,016. Over the next five years,
median household income is expected to
increase by 8.8%, or $1,638 per annum.
A total of 46.6% of individuals over the age of
24 have a college degree, with 31.1% holding
a bachelor's degree and 15.5% holding a
graduate degree.
$93,016 $101,208
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2021 2026
MEDIAN INCOME BY YEAR
31.1%
15.5%
53.4%
POPULATION BY DEGREE
Bachelor's Degree
Graduate Degree
Other
0% 2% 4% 6% 8% 10% 12% 14%
Other Services (excl Publ Adm)
Accommodation/Food Services
Transportation/Warehousing
Construction
Manufacturing
Finance/Insurance
Educational Services
Health Care/Social Assistance
Prof/Scientific/Tech Services
Retail Trade
Source: Esri
Source: Esri
Source: Esri
Neighborhood Analysis
8
DCAD # 285204, Denton, Texas
Neighborhood Analysis
LOCATION
The subject neighborhood is located in an unincorporated area of Denton County, northeast of
Denton, TX.
BOUNDARIES
The neighborhood boundaries are detailed as follows:
North: FM 428 (Sherman Drive)
South: US-380 (University Drive)
East: US-377
West: FM 428 & Loop 288
Neighborhood Analysis
9
DCAD # 285204, Denton, Texas
LAND USE
Land uses within the subject neighborhood consist primarily of agricultural recreational and rural
residential uses, with more dense residential and commercial development along the major
thoroughfares and in close proximity to the City of Denton. The immediate area surrounding the
subject is considered a rural area.
DEMOGRAPHICS
Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in
the following table:
Hartlee Field Road
Denton, TX 76208
Population
2026 Total Population 38 6,735 65,513
2021 Total Population 35 5,730 54,993
2010 Total Population 32 4,539 43,655
2000 Total Population 32 4,219 37,185
Annual Growth 2021 - 2026 1.66% 3.28% 3.56%
Annual Growth 2010 - 2021 0.82% 2.14% 2.12%
Annual Growth 2000 - 2010 0.00% 0.73% 1.62%
Households
2026 Total Households 11 2,465 23,804
2021 Total Households 10 2,106 20,042
2010 Total Households 9 1,647 15,901
2000 Total Households 9 1,496 13,465
Annual Growth 2021 - 2026 1.92% 3.20% 3.50%
Annual Growth 2010 - 2021 0.96% 2.26% 2.13%
Annual Growth 2000 - 2010 0.00% 0.97% 1.68%
Income
2021 Median Household Income $100,000 $83,427 $62,911
2021 Average Household Income $126,935 $110,280 $80,989
2021 Per Capita Income $44,890 $40,652 $29,820
2021 Pop 25+ College Graduates 11 1,804 12,489
Age 25+ Percent College Graduates - 2021 44.0% 43.3% 34.5%
Source: ESRI
SELECTED NEIGHBORHOOD DEMOGRAPHICS
1 Mile Radius 3 Mile Radius 5 Mile Radius
CONCLUSION
As shown above, the population within the subject neighborhood has shown increases over the
last 20 years, and continued growth is expected. The neighborhood currently has a mid to upper
income demographic profile with a 2021 estimated average household income of $80,989
within a five-mile radius. The outlook for the neighborhood is for strong performance over the
next several years. As a result, the demand for vacant land is expected to be good.
Site Analysis
10
DCAD # 285204, Denton, Texas
FLOOD MAP
Source: FEMA
Site Analysis
11
DCAD # 285204, Denton, Texas
Site Analysis
The following chart summarizes the salient characteristics of the subject site.
SITE SUMMARY AND ANALYSIS
Physical Description
Gross Site Area 6.000 Acres 261,360 Sq. Ft.
Primary Road Frontage None n/a
Shape
Topography
Parcel Number(s)
Zoning District
Flood Map Panel No. & Date 48121C0245G April 18, 2011
Adjacent Land Uses
Comparative Analysis
Visibility
Functional Utility
Traffic Volume
Adequacy of Utilities
Drainage
Various sources compiled by CBRE
Rating
Average
Average
Below Average
Rectangular
Generally Level
N/A - Unincorprated
Ag./Rec./Rural Res.
294138
Average
Average
LOCATION
The subject property is located north of the terminus of Hartlee Field Road, a local road which
accommodates one lane of traffic in each direction. The subject property is located in an
unincorporated area of Denton County.
INGRESS/EGRESS
The subject property currently has access via an access easement from Hartlee Field Road.
SURROUNDING USES
The surrounding land uses include mostly vacant land used for agricultural, recreational and/or
rural residential purposes.
ENVIRONMENTAL ISSUES
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 subject site. For this
appraisal, CBRE, Inc. has specifically assumed that the subject site is not affected by any
hazardous materials that may be present on or near the subject site.
Site Analysis
12
DCAD # 285204, Denton, Texas
TOPOGRAPHY AND DRAINAGE
The site has generally level topography. During our inspection of the site, we observed no
drainage problems and assume that none exist.
FLOODPLAIN
There does do appear to be any areas of floodplain on the subject property.
EASEMENTS AND ENCROACHMENTS
There are no known easements or encroachments 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 easements and encroachments on the property, if any, prior to
making a business decision.
COVENANTS, CONDITIONS AND RESTRICTIONS
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 copy of the current covenants, conditions and restrictions, if any, prior to making a business
decision.
CONCLUSION
The subject property is well-located in the market area. The site has a rectangular shape and and
generally level topography. While access to the site is limited to an access easement, there are no
known detrimental uses in the immediate vicinity. There are no other known physical factors
which are considered to prevent the site from development to its highest and best use, as if
vacant.
Improvement Analysis
13
DCAD # 285204, Denton, Texas
Improvement Analysis
The following chart summarizes the salient characteristics of the subject improvements.
Improvements
Property Type Residential
Number of Buildings 1
Number of Stories 2
Gross Living Area 2,228 SF
Number of Beds 4
Number of Baths 3
Year Built 2005
Condition Average
Compiled by CBRE
Comments
(Single-Family Residence)
per DCAD
per MLS
per MLS
Zoning
14
DCAD # 285204, Denton, Texas
Zoning
The subject property is located on an unincorporated area of Denton County. As such, it is not
subject to any municipal zoning ordinance or regulations. Being in the City of Denton’s ETJ, it is
noted that the future land use maps indicate the subject is projected to remain a “Rural Area”.
ANALYSIS AND CONCLUSION
Additional information may be obtained from the appropriate governmental authority. For
purposes of this appraisal, CBRE has assumed the information obtained is correct.
Tax and Assessment Data
15
DCAD # 285204, Denton, Texas
Tax and Assessment Data
AD VALOREM TAX INFORMATION
Assessor's Parcel No. Parcel Description
2021
Improvements
2021
Land
2021
Total
285204 6.0000 Acres $149,931 $82,800 $232,731
Subtotal 6.0000 Acres $149,931 $82,800 $232,731
Ag Exemption*$0
Taxable Value $232,731
Effective Tax Rate (per $100 A.V.) 3.263172
Total Adjusted Taxes $7,594.41
The reassessment of the subject is scheduled each January with notices sent to property owners in
May. Texas is a non-disclosure state and a sale of a property does not necessarily trigger an
assessment increase to the sales price. Texas tax code allows for properties to be assessed at
either 100% of market value or at a rate that is equal and uniform to the property’s most
comparable competitors. In actuality, the assessed value can vary from market value.
The Texas tax code allows for properties to be assessed at either 100% of market value or at a
rate that is equal and uniform to the property’s most comparable competitors. The tax code
reads, “The District Court shall grant relief on the ground that a property is appraised unequally if
the appraised value of the subject property exceeds the median appraised value of a reasonable
number of comparable properties appropriately adjusted.” - Section 42.26 (a)(3).
Based upon the Denton County Tax Office, all taxes are current.
Highest and Best Use
16
DCAD # 285204, Denton, Texas
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 VACANT
Legal Permissibility
The subject property is located in an unincorporated area of Denton County. As such, it is not
subject to any municipal zoning regulations or ordinances.
Physical Possibility
The subject is adequately served by utilities for a rural use, and has an adequate size, shape, etc.,
to be a separately developable site. 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).
Financial Feasibility
Potential uses of the site include agricultural, recreational, and/or rural residential uses. The
determination of financial feasibility is dependent primarily on the relationship of supply and
demand for the legally probable land uses versus the cost to create the uses. With respect to the
legal uses for the subject site, the local market is generally stabilized. Transactions involving
agricultural and/or recreational land has occurred in the recent past and continues to this day.
Maximum Productivity - Conclusion
The final test of highest and best use of the site as if vacant is that the use be maximally
productive, yielding the highest return to the land.
Based on the information presented above and upon information contained in the market and
neighborhood analysis, we conclude that the highest and best use of the subject as if vacant
would be for agricultural, recreational, and/or rural residential uses.
Our analysis of the subject and its respective market characteristics indicate the most likely buyer,
as if vacant, would be an end-user or investor.
AS IMPROVED
The site is improved with a single-family residence. No alternative use of the property would
justify the removal of the existing improvements and they provide a value higher than the
underlying land. Therefore, the highest and best use “as improved” is for continued use of the
existing improvements.
Improved Value
17
DCAD # 285204, Denton, Texas
Improved Value
The following map and table summarize the comparable data used in the valuation of the
subject. A detailed description of each transaction is included in the addenda.
Improved Value
18
DCAD # 285204, Denton, Texas
SUMMARY OF COMPARABLE LAND SALES
Interest Land YOC / Property Distance GLA Actual Sale Adjusted Sale
No. Property Name Type Date Transferred (Acres) Reno'd Subtype from Subj (SF) Price Price 1
1 9373 FM 428,
9373 FM 428
Denton, TX 76227
Sale Mar-21 Fee
Simple/Freehold
6.65 2015 Single-
Family
Residence
1.9 Miles 1,977 $660,000 $660,000
2 3419 Sauls Road,
3419 Sauls Road
Denton, TX 76227
Sale Oct-20 Fee
Simple/Freehold
4.00 1997 Single-
Family
Residence
1.7 Miles 3,129 $642,500 $642,500
3 7711 Shady Oak Drive,
7711 Shady Oak Drive
Aubrey, TX 76227
Sale Jun-20 Fee
Simple/Freehold
5.00 2005 Single-
Family
Residence
2.7 Miles 3,305 $779,000 $779,000
4 7890 Shady Oak Drive,
7890 Shady Oak Drive
Aubrey, TX 76227
Sale Apr-20 Fee
Simple/Freehold
3.52 2006 Single-
Family
Residence
2.8 Miles 3,448 $600,000 $600,000
Subj.Pro
Forma
DCAD # 285204,Hartlee Field Road
Denton, TX 76208
--- --- --- 6.00 2005 Single-Family
Residence
--- 2,228 --- ---
1 Adjusted sale price for cash equivalency, lease-up and/or deferred maintenance (where applicable)
Compiled by CBRE
Transaction
The sales utilized represent the best data available for comparison with the subject property.
These sales were chosen based upon their site size, date of sale, location and end use.
DISCUSSION/ANALYSIS OF LAND SALES
All four sales were adjusted upward for improving market conditions since the date of sale.
All four sales have direct access, while the subject has limited access via an access easement.
Therefore, a downward location adjustment was warranted for all four sales.
All four sales were adjusted based on the size difference of their improvements (GLA) and that
of the subject property.
Sales 1, 2 and 4 were adjusted based on the difference in age/condition as compared to the
subject.
Sales 2 and 4 were adjusted upward for their smaller land size.
Improved Value
19
DCAD # 285204, Denton, Texas
SUMMARY OF ADJUSTMENTS
Based on our comparative analysis, the following chart summarizes the adjustments warranted to
each comparable.
IMPROVED SALES ADJUSTMENT GRID
Comparable Number 1234
Subj. Pro
Forma
Transaction Type Sale Sale Sale Sale ---
Transaction Date Mar-21 Oct-20 Jun-20 Apr-20 ---
Interest Transferred Fee
Simple/Freehold
Fee
Simple/Freehold
Fee
Simple/Freehold
Fee
Simple/Freehold
---
Land Area (Acres) 6.65 4.00 5.00 3.52 6.00
Year Built/Renovated 2005
Property Subtype Single-Family
Residence
Single-Family
Residence
Single-Family
Residence
Single-Family
Residence
Single-Family
Residence
GLA (SF) 1,977 3,129 3,305 3,448 2,228
Actual Sale Price $660,000 $642,500 $779,000 $600,000 ---
Adjusted Sale Price 1 $660,000 $642,500 $779,000 $600,000 ---
Property Rights Conveyed 0% 0% 0% 0%
Financing Terms 1 0% 0% 0% 0%
Conditions of Sale 0% 0% 0% 0%
Market Conditions (Time) 4.0% 5.0% 7.0% 8.0%
Subtotal $686,400 $674,625 $833,530 $648,000.00
Location -5% -5% -5% -5%
Size 5% -10% -15% -15%
Age/Condition -5% 5% 0% 10%
Land Area (Acres) 0% 5% 0% 10%
Total Other Adjustments -5% -5% -20% 0%
Indicated Value $652,080 $640,894 $666,824 $648,000.00
Absolute Adjustment 19% 30% 27% 48%
1 Adjusted for cash equivalency, lease-up and/or deferred maintenance (where applicable)
Compiled by CBRE
After adjustments, the sales ranged from $640,894 per acre to $666,824 per acre with an
average of $651,950.
CONCLUSION
All four sales are given roughly equal consideration. The following table presents the valuation
conclusion:
SALES COMPARISON APPROACH
Total Units X Value Per Unit = Value
1 X $640,894 = $640,894
1 X $666,824 = $666,824
VALUE CONCLUSION
Indicated Value As Is $650,000
Compiled by CBRE
Reconciliation of Value
20
DCAD # 285204, Denton, Texas
Reconciliation of Value
In valuing the subject, the Sales Comparison Approach is the only applicable approach and is the
only approach that has been completed in this analysis.
Based on the foregoing, the market value of the subject has been concluded as follows:
MARKET VALUE CONCLUSION
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value - As Is Fee Simple Estate November 22, 2021 $650,000
Compiled by CBRE
Assumptions and Limiting Conditions
21
DCAD # 285204, Denton, Texas
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.
Assumptions and Limiting Conditions
22
DCAD # 285204, Denton, Texas
(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.
Assumptions and Limiting Conditions
23
DCAD # 285204, Denton, Texas
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.
Addenda
ADDENDA
Addenda
Addendum A
IMPROVED SALE INFORMATION
Sale Residential - Single-Family Residence No. 1
Property Name 9373 FM 428
Address 9373 FM 428
Denton, TX 76227
County Denton
Govt./Tax ID 672306
Gross Leasable Area (GLA)1,977 sf
Condition N/A
Land Area Net 6.650 ac/ 289,674 sf
Year Built/Renovated 2015/ N/A
Total # of Units 0 Units
Average Unit Size sf
Average Rent/Unit N/A
Average Rent/SF N/A
Construction Class/ Type N/A/ N/A
Exterior Finish N/A
Floor Count 2
Parking Type/ Ratio N/A/ N/A
Property Features N/A
Project Amenities N/A
Unit Amenities N/A
Transaction Details
Type Sale Primary Verification Selling Agent, Barry Stephenson (214)
616-2270
Interest Transferred Fee Simple Transaction Date 03/02/2021
Condition of Sale Arm's-Length Recording Date 03/02/2021
Recorded Buyer Sae Mun O and In Ye O Sale Price $660,000
Buyer Type N/A Financing Cash to Seller
Recorded Seller Green Valley Ranch, LLC Cash Equivalent $660,000
Marketing Time 6 Month(s)Capital Adjustment $0
Listing Broker N/A Adjusted Price $660,000
Doc #2021-37559 Adjusted Price /Unit
and /sf
N/A / $333.84
Buyer's Primary Analysis N/A Occupancy at Sale N/A
Static Analysis Method N/A Underwritten Occupancy Static Analysis-N/A
Source Static Analysis-N/A Potential Gross Income Static Analysis-N/A
NOI /Unit and /sf Static Analysis-N/A Vacancy/Collection Loss Static Analysis-N/A
IRR N/A Effective Gross Income Static Analysis-N/A
OER Static Analysis-N/A Expenses Static Analysis-N/A
Expenses /Unit and /sf Static Analysis-N/A Net Operating Income Static Analysis-N/A
Cap Rate Static Analysis-N/A
Comments
This 3 bedroom, 2 1/2 bath house sits on 6.65 acres and was built in 2015.
Sale Residential - Single-Family Residence No. 2
Property Name 3419 Sauls Road
Address 3419 Sauls Road
Denton, TX 76227
County Denton
Govt./Tax ID 199017
Gross Leasable Area (GLA)3,129 sf
Condition N/A
Land Area Net 4.002 ac/ 174,327 sf
Year Built/Renovated 1997/ N/A
Total # of Units 0 Units
Average Unit Size sf
Average Rent/Unit N/A
Average Rent/SF N/A
Construction Class/ Type N/A/ N/A
Exterior Finish N/A
Floor Count 1
Parking Type/ Ratio N/A/ N/A
Property Features N/A
Project Amenities N/A
Unit Amenities N/A
Transaction Details
Type Sale Primary Verification Selling Agent, Wesley Haile (214) 449-
7767
Interest Transferred Fee Simple Transaction Date 10/26/2020
Condition of Sale Arm's-Length Recording Date 10/26/2020
Recorded Buyer Shaun Jackson and Jaymi Jackson Sale Price $642,500
Buyer Type N/A Financing Market Rate Financing
Recorded Seller Robert Scott Jenkins and Lisa Jo Jenkins Cash Equivalent $642,500
Marketing Time 1 Month(s)Capital Adjustment $0
Listing Broker N/A Adjusted Price $642,500
Doc #2020-172740 Adjusted Price /Unit
and /sf
N/A / $205.34
Buyer's Primary Analysis N/A Occupancy at Sale N/A
Static Analysis Method N/A Underwritten Occupancy Static Analysis-N/A
Source Static Analysis-N/A Potential Gross Income Static Analysis-N/A
NOI /Unit and /sf Static Analysis-N/A Vacancy/Collection Loss Static Analysis-N/A
IRR N/A Effective Gross Income Static Analysis-N/A
OER Static Analysis-N/A Expenses Static Analysis-N/A
Expenses /Unit and /sf Static Analysis-N/A Net Operating Income Static Analysis-N/A
Cap Rate Static Analysis-N/A
Comments
This 4 bedroom/3 bath house site on 4.002 acres and was built in 1997.
Sale Residential - Single-Family Residence No. 3
Property Name 7711 Shady Oak Drive
Address 7711 Shady Oak Drive
Aubrey, TX 76227
County Denton
Govt./Tax ID 53547
Gross Leasable Area (GLA)3,305 sf
Condition N/A
Land Area Net 5.000 ac/ 217,800 sf
Year Built/Renovated 2005/ N/A
Total # of Units 0 Units
Average Unit Size sf
Average Rent/Unit N/A
Average Rent/SF N/A
Construction Class/ Type N/A/ N/A
Exterior Finish N/A
Floor Count 1
Parking Type/ Ratio N/A/ N/A
Property Features N/A
Project Amenities N/A
Unit Amenities N/A
Transaction Details
Type Sale Primary Verification Selling Agent, Kelsi Bannahan (940)
391-9852
Interest Transferred Fee Simple Transaction Date 06/15/2020
Condition of Sale Arm's-Length Recording Date 06/15/2020
Recorded Buyer Janet Woolston and Kenneth Woolston Sale Price $779,000
Buyer Type N/A Financing Cash to Seller
Recorded Seller John K. McGimpsey and Diana L.
McGimpsey
Cash Equivalent $779,000
Marketing Time 4 Month(s)Capital Adjustment $0
Listing Broker N/A Adjusted Price $779,000
Doc #2020-82720 Adjusted Price /Unit
and /sf
N/A / $235.70
Buyer's Primary Analysis N/A Occupancy at Sale N/A
Static Analysis Method N/A Underwritten Occupancy Static Analysis-N/A
Source Static Analysis-N/A Potential Gross Income Static Analysis-N/A
NOI /Unit and /sf Static Analysis-N/A Vacancy/Collection Loss Static Analysis-N/A
IRR N/A Effective Gross Income Static Analysis-N/A
OER Static Analysis-N/A Expenses Static Analysis-N/A
Expenses /Unit and /sf Static Analysis-N/A Net Operating Income Static Analysis-N/A
Cap Rate Static Analysis-N/A
Comments
This 3 bedroom/ 3 1/2 bathroom house sits on 5 acres and was built in 2005.
Sale Residential - Single-Family Residence No. 4
Property Name 7890 Shady Oak Drive
Address 7890 Shady Oak Drive
Aubrey, TX 76227
County Denton
Govt./Tax ID 53560, 147821
Gross Leasable Area (GLA)3,448 sf
Condition N/A
Land Area Net 3.520 ac/ 153,331 sf
Year Built/Renovated 2006/ N/A
Total # of Units 0 Units
Average Unit Size sf
Average Rent/Unit N/A
Average Rent/SF N/A
Construction Class/ Type N/A/ N/A
Exterior Finish N/A
Floor Count 1
Parking Type/ Ratio N/A/ N/A
Property Features N/A
Project Amenities N/A
Unit Amenities N/A
Transaction Details
Type Sale Primary Verification Selling Agent, Russell Rhodes (972)
899-5600
Interest Transferred Fee Simple Transaction Date 04/15/2020
Condition of Sale Arm's-Length Recording Date 04/15/2020
Recorded Buyer Todd Parker and Barbara Hitos Fajer Sale Price $600,000
Buyer Type N/A Financing Market Rate Financing
Recorded Seller Sandy K. Smith a/k/a Sandra Kay Smith Cash Equivalent $600,000
Marketing Time 1 Month(s)Capital Adjustment $0
Listing Broker N/A Adjusted Price $600,000
Doc #2020-49792 Adjusted Price /Unit
and /sf
N/A / $174.01
Buyer's Primary Analysis N/A Occupancy at Sale N/A
Static Analysis Method N/A Underwritten Occupancy Static Analysis-N/A
Source Static Analysis-N/A Potential Gross Income Static Analysis-N/A
NOI /Unit and /sf Static Analysis-N/A Vacancy/Collection Loss Static Analysis-N/A
IRR N/A Effective Gross Income Static Analysis-N/A
OER Static Analysis-N/A Expenses Static Analysis-N/A
Expenses /Unit and /sf Static Analysis-N/A Net Operating Income Static Analysis-N/A
Cap Rate Static Analysis-N/A
Comments
This 3 bedroom/3bath house sits on 3.52 acres and was built in 2006.
Addenda
Addendum B
SUBJECT INFORMATION
Addenda
Addendum C
CLIENT CONTRACT INFORMATION
Real Estate Division
401 N. Elm Street, Denton, TX 76201
Hinkle Roundabout Project – Magnolia Phase 2 – 350520469
November 5, 2021
CBRE
Mark Sadler, Vice President
301 Commerce Street, Suite 3131
Fort Worth, TX 76102
Re: Clear Creek Expansion Project
Project Account # 400333470
Whole property valuation - DCAD # 36514, 36560 (72.697 acres in total)
Whole property valuation - DCAD # 294138 (6 acres in total)
Whole property valuation - DCAD # 285204 (6 acres in total)
This is a request by the City of Denton for professional appraisal services for the above listed Project. This
appraisal assignment must be prepared in accordance with the reporting requirements set forth under Standard
Rule 2-2(a) of Uniform Standards of Professional Appraisal Practice (USPAP), and all local, state, and federal
requirements, except to the extent that the “Uniform Appraisal Standards for Federal Land Acquisition requires
invocation of USPAP’s Jurisdictional Exception Rule, as described in Section D-1 of the Uniform Appraisal
Standards for Federal Land Acquisitions.” In addition, the appraisals must conform to the specific conditions
contained herein.
The appraiser shall certify in each report that the appraisal is prepared in strict accordance with the URA appraisal
requirements.
Authorization: This is your authorization to proceed with this assignment.
On November 3, 2021 I forwarded (via e-mail) the descriptions for tracts of land where City will be
requesting an appraisal for proposed acquisition.
Confidentiality: The City of Denton is your confidential client. You are to take all reasonable steps to
ensure that you and your organization divulge no information concerning your report to any other persons
other than the City of Denton without written authorization to do so.
Purpose of Appraisal: We request that you provide the following value estimate.
Market Value “As Is”
Effective Date: The date of valuation must be within (30) thirty days of the delivery, unless instructed otherwise.
Scope: The scope of the service must be included in the full appraisal process report.
Should you find reporting requirements different than indicated here, please contact the undersigned for
authorization to proceed. The appraisal is to be completed and presented as a self-contained and stand-alone
document.
Your acceptance of this appraisal assignment will confirm that the City of Denton owns the report(s), which you
provide, and the City of Denton will be under no restrictions regarding their redistribution to other interested
parties of its choice.
Clear Creek Expansion Project – 400333470
Addressee and Contact: Please address reports as follows:
City of Denton-Real Estate Division
Attn: Christopher Singleton
401 N. Elm Street
Denton, Texas 76201
Commitment: It is our understanding that (1) original and (1) electronic copy of the appraisal report(s) is to be
submitted to the addressee by CBRE together with a statement of services in the amount not to exceed
$10,000.00 for the referenced tract(s). Your statement should include your Federal Tax ID Number or Social
Security Number and should reference the Project Name: Clear Creek Expansion Project
In an effort to comply with the Texas State Library and Archives Commission and the passing of recent Senate
Bill 18, the City of Denton is required to retain appraisals for ten years. Therefore, we require appraisers to
electronically submit appraisals. This will assist the City of Denton in continuing to remain in compliance with
record retention requirements.
The City of Denton reserves the right to accept the appraisals and will not be responsible for any expenses
incurred by the assignment if wording or disclaimers are included limiting your professional liability to the City
of Denton.
Conflict of Interest: All members and/or appraisal subcontractors of your organization certify that they have no
personal, business, or other relationship with the property’s ownership, or have attached an explanation disclosing
the nature of such relationship(s).
Further, your acceptance of this assignment certifies you agree not to accept or pursue the appraisal, or related
assignments, of the subject property, or other assignments with the subject property’s ownership (excluding
limited partners and other financial institutions), for a period extending one year from the later of the date of this
letter agreement, its delivery date, or the conclusion of ongoing or pending litigation without prior written consent
of the City of Denton.
A penalty of $ 100.00 per business day will be deducted from the fee for reports delivered after the date stipulated
above. No penalties will be imposed for delays resulting from circumstances beyond the appraiser’s control; such
circumstances judged for their validity solely by the City of Denton, Real Estate office.
Your original signature of this letter is required and returned to the undersigned, which will confirm our mutual
understanding.
SUBMITTED: ACCEPTED BY:
___________________ ___________________ ___________________
Christopher Singleton Appraiser Signature Date
Real Estate Specialist
Please do not proceed with the appraisal assignment until you are in receipt of a copy of this engagement
letter signed by all of the above.
11/5/2021
Addenda
Addendum D
QUALIFICATIONS
Mark R. Sadler
Vice President, Dallas/Fort Worth
̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Experience ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
Mark Sadler is a Vice President and Right-of-Way Team Lead for the South Central Region of
CBRE’s Valuation & Advisory Services Group. Working out of the company’s Dallas/Fort Worth
area offices, Mr. Sadler brings over a decade of real estate appraisal and consulting experience
from all over the State of Texas.
After graduating from Texas A&M University in 2006, Mr. Sadler worked as an Analyst for Integra
Realty Resources where he assisted in valuation and consulting services on various property types,
working extensively on litigation assignments. In 2010, he joined Korman O’Brien, LLC, a real
estate consulting and appraisal firm focused primarily on litigation services. In 2013, he was
named Director at O’Brien Realty Advisors, LLC. There, Mr. Sadler continued his work in valuation
and consulting services and managed a team of appraisers.
Over the course of his career, Mr. Sadler has been designated as an expert witness in State court
and is frequently retained to provide expert witness testimony in special commissioners’ hearings
all across the state, for both landowners and condemning authorities. Mr. Sadler has extensive
experience in providing valuation and advisory services for litigation support purposes such as
eminent domain cases, bankruptcy filings, partnership disputes, divorce proceedings, and tax
protests. Mr. Sadler’s experience includes valuation of various property types including farm &
ranch land, future development land, interim use properties, mixed-use developments, industrial
facilities, retail centers, restaurants, convenience stores, office buildings, hotels/motels, apartment
complexes, single-family residences, billboards, utility easements, and transportation corridors.
̶̶̶̶̶̶ Professional Affiliations / Accreditations ̶̶̶̶̶̶
• Candidate for Designation – Appraisal Institute
• Member – International Right of Way Association
• Certified General Real Estate Appraiser – Texas License No. TX-1380142-G
̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶ Education ̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶̶
• Texas A&M University, College Station, TX – Master of Land Economics and Real Estate (2006)
• Texas A&M University, College Station, TX – Bachelor of Business Administration (2005)
• Continuing Education:
Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book)
Uniform Standards of Professional Appraisal Practice (USPAP)
Business Practices and Ethics
Eminent Domain and Condemnation
Complex Litigation Appraisal Case Studies
Valuation of Detrimental Conditions in Real Estate
Analyzing Distressed Real Estate
Data Verification Methods
Supervisor-Trainee Course for Texas
T + 1 817 333 1119 M + 1 682 888 3116 Mark.Sadler@cbre.com
301 Commerce Street Suite 3131 Fort Worth, Texas 76102
Appraiser: MARK RICHARD SADLER
License #: TX 1380142 G License Expires: 04/30/2022
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.
MARK RICHARD SADLER
47 PANORAMA CIR
TROPHY CLUB, TX 76262