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HomeMy WebLinkAboutDAL_074-1A WWE_A5_land-other_03-13-2025_InitialForm ROW-A-5 (Rev. 08/11) REAL ESTATE APPRAISAL REPORT - TEXAS DEPARTMENT OF TRANSPORTATION Address of Property: N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas, Denton, TX 75065 District: Dallas Property Owner: Northbridge Realty Holdings LLC & TLB3A Investments LLC Parcel: 074-1A WWE Address of Property Owner: 212 S Elm Street, Denton TX 76201 ROW CSJ: N/A Occupant’s Name: Vacant Federal Project No: N/A Whole: Partial: Acquisition Highway: IH 35 County: Denton Purpose of the Appraisal The purpose of this appraisal is to estimate the market value of the fee simple title to the real property to be acquired, encumbered by any easements not to be extinguished, less oil, gas and sulphur. If this acquisition is of less than the whole property, then any special benefits and /or damages to the remainder property must be included in accordance with the laws of Texas. Market Value Market value is defined as follows: “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obliged 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.” Certificate of Appraiser I hereby certify: That it is my opinion the total compensation for the acquisition of the herein described property is $59,588 as of March 5, 2025 , based upon my independent appraisal and the exercise of my professional judgment; That on March 5, 2025, and July 6, 2023, I personally inspected in the field the property herein appraised; that I afforded the property owner or the representative of the property owner the opportunity to accompany me at the time of the inspection; We contacted the owner who gave permission to inspect the subject unaccompanied. That the comparables relied upon in making said appraisal were as represented by the photographs contained in the appraisal report and were inspected on March 5, 2025 and other dates; That I have not revealed and will not reveal the findings and results of such appraisal to anyone other than the proper officials of the Texas Department of Transportation or officials of the Federal Highway Administration until authorized by State officials to do so, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified to such findings; That my compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. The appraiser has considered access damages in accordance with Section 21.042(d) of the Texas Property Code, as amended by SB18 of the Texas 82nd Regular Legislative Session and finds as follows: 1.Is there a denial of direct access on this parcel? No 2.If so, is the denial of direct access material? N/A 3.The lack of any access denial or the material impairment of direct access on or off the remaining property affects the market value of the remaining property in the sum of $0 . I certify to the best of my knowledge and belief: That the statements of fact contained in this report are true and correct; That the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions, and conclusions; That I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved; That my analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the appropriate State laws, regulations, and policies and procedures applicable to the appraisal of right of way for such purposes, and that to the best of my knowledge no portion of the value assigned to such property consists of items which are noncompensable under the established law of said State, and any decrease or increase in the fair market value of subject real property prior to the date of valuation caused by the public improvement for which such property is to be acquired, or by the likelihood that the property would be acquired for such improvement, other than that due to the physical deterioration within the reasonable control of the owner, has been disregarded in estimating the compensation for the property. To the best of my knowledge, the value does not include any items which are not compensable under State law. Appraiser Signature 1380206 G Brent Pitts, MAI, AI-GRS, R/W-AC Certification Number March 13, 2025 Date Reviewing Appraiser Date Page 1 03/13/2025 Subject Aerial Page 1.1 Proposed easement outlined in yellow. The whole property is outlined in red/yellow. Parcel 074-1A WWE N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas Denton, Texas Executive Summary Page 1.2 Executive Summary Property Name Address Property Type Owner of Record Tax ID Land Area 7.54 acres; 328,442 SF Zoning Designation Highest and Best Use Exposure Time; Marketing Period 6-9 months; 6-9 months Effective Date of the Appraisal March 5, 2025 Date of the Report March 13, 2025 Property Interest Appraised The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than Cobb, Fendley & Associates may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. GO, General Office Commercial use Fee Simple / Easement Northbridge Realty Holdings LLC & TLB3A Investments LLC 315333 074-1A WWE N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas Denton, Denton County, Texas 75065 Land Identification of Assignment Page 1.3 Identification of Assignment Subject Description The subject is a parcel of vacant land containing an area of 7.54 acres or 328,442 square feet. The property is zoned GO, General Office, which permits office, industrial, and commercial uses. The proposed acquisition represents a water and wastewater easement that is generally rectangular in shape and measures 23,835 square feet. The proposed acquisition is located along the southern boundary of the subject. A legal description of the property is provided in the Addenda. Property Identification Property Name 074-1A WWE Address N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas Denton, Texas 75065 Tax ID 315333 Owner of Record Northbridge Realty Holdings LLC & TLB3A Investments LLC Sale History The current owner of record is Northbridge Realty Holdings LLC & TLB3A Investments LLC. The most recent closed sales of the subject are summarized as follows: Sale 1 Sale 2 Sale Date August 4, 2022 August 31, 2022 Seller Blue Beacon International Inc Northbridge Realty Holdings LLC Buyer Northbridge Realty Holdings LLC Northbridge Realty Holdings LLC & TLB3A Investments LLC Sale Price Not Known Not Known Recording Instrument Number -128054 Expenditures Since Purchase Not Known Not Known No additional information was provided on these transactions. Based on a review of available information, no other sale or transfer of ownership has taken place within a five-year period prior to the effective appraisal date. Pending Transactions Based on discussions with the appropriate contacts, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. Appraisal Purpose The purpose of the appraisal is to develop an opinion of the as-is market value of the subject property as of the effective date of the appraisal, March 5, 2025. The date of the report is March 13, 2025. The appraisal is valid only as of the stated effective date or dates. Identification of Assignment Page 1.4 Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. 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 obliged 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.1 Easement The International Right of Way Association’s Principles of Right of Way Glossary defines the term “easement” as: A nonpossessory interest held by one person in property of another where the first person is accorded partial use of the property for a specific purpose. An easement restricts but does not abrogate the fee owner’s rights to use and enjoyment of the property. Appraisal Premise Definitions The definitions of the appraisal premises applicable to this assignment are specified as follows. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. 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.3 Client and Intended User(s) The appraisal may be used in connection with the utility relocation along IH35 and the associated compensation of the acquisition associated with the subject property. Intended users include the client, Cobb, Fendley & Associates on behalf of the City of Denton, and assigns. This report may also be used by an outside entity hired by the client to assist in the assignment. The intended use of this appraisal is to estimate the market value and assist the City of Denton in their determination of adequate compensation to the real property owner in compliance with the Texas Constitution, Article 1, Section 17. No liability is assumed by the appraiser for unauthorized use of this appraisal report. 1 Texas Supreme Court, City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954). 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 3 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Identification of Assignment Page 1.5 Intended Use The intended use of the appraisal is to assist the client in the estimation of compensation due to the property owner resulting from the proposed acquisition related to the subject property. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; • Applicable state appraisal regulations; • TxDOT ROW Appraisal and Review Manual Report Format Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. The narrative report is incorporated into a TxDOT Form A5. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have previously appraised the property that is the subject of this report for the current client on August 2, 2023. We have provided no other 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 the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report. Identification of Assignment Page 1.6 Extraordinary Assumptions An extraordinary assumption is an assumption that is directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. No Extraordinary Assumptions were made for this assignment. Hypothetical Conditions Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if: • Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; • Use of the hypothetical condition results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. The following Hypothetical Condition(s) were made for this assignment, which may have impacted assignment results. • The Before and After method of valuation involves the use of a hypothetical condition in both scenarios. The appraisal of the whole property disregards any value-related impact of the project, which constitutes a hypothetical condition. The appraisal of the remainder after assumes that the project and all related improvements were complete as of the effective date of value, which also constitutes a hypothetical condition. Scope of Work Page 1.7 Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Although effort has been made to confirm the arms-length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable. Subject Property Data Sources The legal and physical features of the subject property, including size of the site, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed. Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Brent Pitts, MAI, AI-GRS, R/W-AC None N/A Andrew Everett On-site March 5, 2025 We contacted the owner, Brad Andrus, who gave us permission to inspect the subject. The subject was inspected by Andrew Everett on March 5, 2025, without the owner or owner’s representative present. Brent Pitts inspected the subject during a prior appraisal on July 6, 2023. Scope of Work Page 1.8 Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Marketing Period & Exposure Time The term “marketing period” is defined as: The time it takes an interest in real property to sell on the market subsequent to the date of an appraisal. Reasonable marketing time is an estimate of the amount of time it might take to sell an interest in real property at its estimated market value during the period immediately after the effective date of the appraisal. The term “exposure time” is defined as: The time a property remains on the market. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. In the case of the subject, there is an active market for similar properties. The subject is not a highly specialized property and does not have a limited market given its characteristics. Regarding the supply of competing properties, there is not such an oversupply of property that an extended marketing time should be forecasted. Our estimate of reasonable marketing period and exposure time is shown on the following table. Exposure Time and Marketing Period Exposure Time (Months)6-9 Marketing Period (Months)6-9 Exposure times that exceed the above estimate are typically a result of overpricing rather than of adequate exposure. Approaches to Value Approach Use in Assignment Sales Comparison Approach (Land)Utilized Cost Approach Not Utilized Sales Comparison Approach (Improved)Not Utilized Income Approach Not Utilized Scope of Work Page 1.9 Case Law & Non-Compensable Elements There are several cases determined by the Supreme Court of Texas that considered compensable elements as it relates to a right-of-way property acquisition. In the State of Texas vs. Schmidt, the Texas Supreme Court “held that owners were not entitled to compensation for diminution in value of remainder property due to diversion of traffic, increased circuitry of travel to property, lessened visibility to passersby, or inconvenience of construction activities.” These types of damages are considered community damages which are non-compensable based on case law. The property appraised in this report does not contain a denial of access. Effective September 1, 2011, SB18 which amends Texas law, establishes a new standard for determining whether a property owner is entitled damages for impairment to access resulting from an access control acquisition. According to the Texas Department of Transportation a “material impairment” is as follows: • A “material impairment” is one that is significant or important in context of how the property is or may be used. Although the change must be significant or important, it no longer must be “substantial” (meaning considerable or large). Personal Property & Trade Fixtures The estimate of compensation in this report is for real property interest, or real estate which includes the physical land and improvements attached to the land. This report does not include a value estimate for personal property or trade fixtures. When non-realty items were included in sales and rentals adjustments were applied to reflect real property only. Certification Page 1.10 Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have previously appraised the property that is the subject of this report for the current client. We have provided no other 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 the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. 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. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Brent Pitts, MAI, AI-GRS, R/W-AC has not made a personal inspection of the property that is the subject of this report. Andrew Everett has personally inspected the subject. 12. No one provided significant real property appraisal assistance to the persons signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 14. As of the date of this report, Brent Pitts, MAI, AI-GRS, R/W-AC has completed the continuing education program for Designated Members of the Appraisal Institute. 15. As of the date of this report, Andrew Everett has completed the continuing education program for Practicing Affiliates of the Appraisal Institute. Certification Page 1.11 Brent Pitts, MAI, AI-GRS, R/W-AC Certified General Real Estate Appraiser Texas Certificate #1380206 G Andrew Everett Certified General Real Estate Appraiser Texas Certificate #1380442 G Form ROW-A-5 (Rev. 08/11) Page 2.0 PHOTOGRAPHS OF SUBJECT PROPERTY Include Each Major Improvement Parcel No.: 074-1A WWE Local Address: N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas, Denton, TX 75065 Date Taken: March 5, 2025 Taken By: Andrew Everett 1. Point from which taken: Subject Looking: East along proposed acquisition. 2. Point from which taken: Subject Looking: West along proposed acquisition. Form ROW-A-5 (Rev. 08/11) Page 2.1 PHOTOGRAPHS OF SUBJECT PROPERTY Include Each Major Improvement Parcel No.: 074-1A WWE Local Address: N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas, Denton, TX 75065 Date Taken: March 5, 2025 Taken By: Andrew Everett 3. Point from which taken: Public ROW Looking: West along Barthold Road. 4. Point from which taken: Public ROW Looking: East along Barthold Road. Form ROW-A-5 (Rev. 08/11) Page 2.2 PHOTOGRAPHS OF SUBJECT PROPERTY Include Each Major Improvement Parcel No.: 074-1A WWE Local Address: N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas, Denton, TX 75065 Date Taken: March 5, 2025 Taken By: Andrew Everett 5. Point from which taken: Public ROW Looking: North at subject. Sign is for the building that was built directly north of the subject. 6. Point from which taken: Public ROW Looking: Northeast at subject. Denton County Area Analysis Page 2.3 Economic Analysis Denton County Area Analysis Denton County is located in northern Texas approximately 40 miles north of Fort Worth. It is 878 square miles in size and has a population density of 1,204 persons per square mile. Population Denton County has an estimated 2025 population of 1,057,826, which represents an average annual 3.1% increase over the 2020 census of 906,422. Denton County added an average of 30,281 residents per year over the 2020-2025 period, and its annual growth rate exceeded the State of Texas rate of 1.4%. Looking forward, Denton County's population is projected to increase at a 2.1% annual rate from 2025- 2030, equivalent to the addition of an average of 23,394 residents per year. Denton County's growth rate is expected to exceed that of Texas, which is projected to be 1.1%. Population Compound Ann. % Chng 2020 Census 2025 Estimate 2030 Projection Denton County 906,422 1,057,826 1,174,795 3.1% 2.1% Texas 29,145,505 31,245,372 33,006,956 1.4% 1.1% Source: Claritas Population Trends Employment Total employment in Denton County was estimated at 311,551 jobs as of June 2024. Between year-end 2014 and 2024, employment rose by 100,069 jobs, equivalent to a 47.3% increase over the entire period. There were gains in employment in nine out of the past ten years. Denton County's rate of employment growth over the last decade surpassed that of Texas, which experienced an increase in employment of 19.1% or 2,232,744 jobs over this period. A comparison of unemployment rates is another way of gauging an area’s economic health. Over the past decade, the Denton County unemployment rate has been consistently lower than that of Texas, with an average unemployment rate of 3.9% in comparison to a 4.7% rate for Texas. A lower unemployment rate is a positive indicator. Recent data shows that the Denton County unemployment rate is 3.5% in comparison to a 3.7% rate for Texas, a positive sign that is consistent with the fact that Denton County has outperformed Texas in the rate of job growth over the past two years. Denton County Area Analysis Page 2.4 Employment Trends Total Employment (Year End)Unemployment Rate (Ann. Avg.) Year Denton County % Change Texas % Change Denton County Texas 2014 211,482 11,672,985 4.5%5.2% 2015 224,936 6.4% 11,831,449 1.4% 3.6%4.5% 2016 233,551 3.8% 11,972,594 1.2% 3.4%4.6% 2017 244,353 4.6% 12,224,998 2.1% 3.4%4.4% 2018 253,596 3.8% 12,539,711 2.6% 3.2%3.9% 2019 267,253 5.4% 12,802,919 2.1% 3.0%3.5% 2020 267,588 0.1% 12,264,651 -4.2% 6.5%7.7% 2021 290,438 8.5% 13,025,292 6.2% 4.4%5.7% 2022 300,599 3.5% 13,591,394 4.3% 3.3%3.9% 2023 315,580 5.0% 13,915,979 2.4% 3.5%3.9% 2024*311,551 -1.3% 13,905,729 -0.1% 3.7%4.1% Overall Change 2014-2024 100,069 47.3% 2,232,744 19.1% Avg Unemp. Rate 2014-2024 3.9%4.7% Unemployment Rate - December 2024 3.5%3.7% Source: U.S. Bureau of Labor Statistics and Moody's Analytics. Employment figures are from the Quarterly Census of Employment and Wages (QCEW). Unemployment rates are from the Current Population Survey (CPS). The figures are not seasonally adjusted. *Total employment data is as of June 2024. Major employers in Denton County are shown in the following table. Name Number of Employees 1 University of North Texas 4,614 2 Denton ISD 4,417 3 Peterbilt Motors 3,075 4 Texas Woman's University 1,875 5 Denton State Supported Living Center 1,700 6 Denton County 1,681 7 City of Denton 1,623 8 Texas Health Presbyterian Hospital 1,076 9 Medical City - Denton 950 10 Sally Beauty Company 950 Major Employers - Denton County Source: Denton County Economic Development Partnership Denton County Area Analysis Page 2.5 Gross Domestic Product Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area, and annual changes in Gross Domestic Product (GDP) are a gauge of economic growth. Economic growth, as measured by annual changes in GDP, has been considerably higher in Denton County than Texas overall during the past decade. Denton County has grown at a 6.9% average annual rate while the State of Texas has grown at a 3.3% rate. However, Denton County has recently underperformed Texas. GDP for Denton County rose by 2.8% in 2023 while Texas's GDP rose by 7.4%. Denton County has a per capita GDP of $47,907, which is 30% less than Texas's GDP of $68,750. This means that Denton County industries and employers are adding relatively less value to the economy than their counterparts in Texas. Gross Domestic Product Year ($,000s) Denton County % Change ($,000s) Texas % Change 2013 24,711,740 –1,511,806,500 – 2014 26,841,164 8.6% 1,559,636,100 3.2% 2015 28,956,599 7.9% 1,634,127,100 4.8% 2016 30,521,275 5.4% 1,633,863,300 0.0% 2017 32,503,089 6.5% 1,667,313,000 2.0% 2018 33,816,542 4.0% 1,746,543,300 4.8% 2019 36,317,647 7.4% 1,806,736,100 3.4% 2020 39,874,794 9.8% 1,773,657,100 -1.8% 2021 43,526,928 9.2% 1,879,101,300 5.9% 2022 46,954,267 7.9% 1,952,708,600 3.9% 2023 48,275,771 2.8% 2,097,090,400 7.4% Compound % Chg (2013-2023)6.9%3.3% GDP Per Capita 2023 $47,907 $68,750 Source: U.S. Bureau of Economic Analysis and Moody's Analytics; data released December 2024. The release of state and local GDP data has a longer lag time than national data. The data represents inflation-adjusted "real" GDP stated in 2017 dollars. Denton County Area Analysis Page 2.6 Income, Education and Age Denton County is more affluent than Texas. Median household income for Denton County is $107,546, which is 40.8% greater than the corresponding figure for Texas. Median Denton County $107,546 Texas $76,406 Comparison of Denton County to Texas + 40.8% Source: Claritas Median Household Income - 2025 Residents of Denton County have a higher level of educational attainment than those of Texas. An estimated 49% of Denton County residents are college graduates with four-year degrees, versus 33% of Texas residents. People in Denton County are older than their Texas counterparts. The median age for Denton County is 38 years, while the median age for Texas is 36 years. Education & Age - 2025 Source: Claritas 10% 20% 30% 40% 50% 60% 70% 80% Denton County Texas 49% 33% Percent College Graduate 10 15 20 25 30 35 40 45 50 Denton County Texas 38 36 Median Age Conclusion The Denton County economy will benefit from a growing population base and higher income and education levels. Denton County experienced growth in the number of jobs and has maintained a consistently lower unemployment rate than Texas over the past decade. It is anticipated that the Denton County economy will improve and employment will grow, strengthening the demand for real estate. Denton County Area Analysis Page 2.7 Area Map Surrounding Area Analysis Page 2.8 Surrounding Area Analysis Location The subject is located in the northern portion of Denton County, within the City of Denton. Access and Linkages Primary access to the subject neighborhood is provided by IH35. IH35 is the central backbone of the subject neighborhood and provides access to Fort Worth to the south and Oklahoma the north. Overall, access to the subject neighborhood is considered average. Demographics A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table. Surrounding Area Demographics 2025 Estimates 1-Mile Radius 3-Mile Radius 5-Mile Radius Denton County Texas Population 2020 13 15,243 67,520 906,422 29,145,505 Population 2025 15 19,333 79,221 1,057,826 31,245,372 Population 2030 17 22,141 87,309 1,174,795 33,006,956 Compound % Change 2020-2025 2.9%4.9%3.2%3.1%1.4% Compound % Change 2025-2030 2.5%2.7%2.0%2.1%1.1% Households 2020 3 5,876 26,673 328,884 10,491,147 Households 2025 4 7,621 31,770 383,773 11,293,766 Households 2030 5 8,801 35,308 427,044 11,968,642 Compound % Change 2020-2025 5.9%5.3%3.6%3.1%1.5% Compound % Change 2025-2030 4.6%2.9%2.1%2.2%1.2% Median Household Income 2025 $125,000 $86,450 $62,327 $107,546 $76,406 Average Household Size 2.8 2.5 2.3 2.7 2.7 College Graduate %30%38%40%49%33% Median Age 35 37 31 38 36 Owner Occupied %75%57%37%64%62% Renter Occupied %25%43%63%36%38% Median Owner Occupied Housing Value $0 $332,016 $328,229 $480,230 $308,343 Median Year Structure Built 1992 Average Travel Time to Work in Minutes 34 30 27 31 29 Source: Claritas As shown above, the current population within a 3-mile radius of the subject is 19,333, and the average household size is 2.5. Population in the area has grown since the 2020 census, and this trend is projected to continue over the next five years. Compared to Denton County overall, the population within a 3-mile radius is projected to grow at a faster rate. Median household income is $86,450, which is lower than the household income for Denton County. Residents within a 3-mile radius have a considerably lower level of educational attainment than those of Denton County, while median owner-occupied home values are considerably lower. Surrounding Area Analysis Page 2.9 Land Use Predominant land uses in the immediate vicinity of the subject include a mix of industrial and vacant land. Land use characteristics of the area are summarized below. Outlook and Conclusions The area is in the growth stage of its life cycle. Given the history of the area and the growth trends, it is anticipated that property values will remain stable in the near future. In comparison to other areas in the region, the area is rated as follows: Surrounding Area Land Uses Character of Area Suburban Predominant Age of Improvements (Years)10-30 years Predominant Quality and Condition Average Infrastructure and Planning Average Immediate Surroundings North Industrial South Barthold Road / Commercial & Industrial East Commercial West Vacant Land Surrounding Area Ratings Highway Access Average Demand Generators Average Convenience to Support Services Average Convenience to Medical Services Average Convenience to Public Transit Average Employment Stability Average Neighborhood Amenities Average Police and Fire Protection Average Barriers to Competitive Entry Average Price/Value Trends Average Property Compatibility Average Surrounding Area Analysis Page 2.10 Surrounding Area Map Land Description and Analysis Page 2.11 Property Analysis Land Description and Analysis Location The property is located on the north side of Barthold Road approximately 700 feet west of its intersection with IH 35. Land Area The following table summarizes the subject’s land area. Land Area Summary Tax ID SF Acres 315333 328,442 7.54 Shape and Dimensions The site is rectangular in shape, with dimensions of approximately 633 feet in width and 500 feet in depth. Site utility based on shape and dimensions is average. Topography The site is generally level and at street grade. The topography does not result in any particular development limitations. Drainage No particular drainage problems were observed or disclosed at the time of field inspection. This appraisal assumes that surface water collection, both on-site and in public streets adjacent to the subject, is adequate. Flood Hazard Status The following table indicates applicable flood hazard information for the subject property, as determined by review of available flood maps obtained from the Federal Emergency Management Agency (FEMA). Flood Hazard Status Community Panel Number 48121C0220G Date April 18, 2011 Zone X Description Outside of 500-year floodplain Insurance Required?No Environmental Hazards An environmental assessment report was not provided for review, and during the inspection, no obvious signs of contamination on or near the subject were observed. However, environmental issues are beyond Land Description and Analysis Page 2.12 the scope of expertise of the assignment participants. It is assumed the property is not adversely affected by environmental hazards. Ground Stability A soils report was not provided for review. Based on the inspection of the subject and observation of development on nearby sites, there are no apparent ground stability problems. However, soils analyses are beyond the scope of expertise of the assignment participants. It is assumed the subject’s soil bearing capacity is sufficient to support a variety of uses, including those permitted by zoning. Streets, Access and Frontage Details pertaining to street access and frontage are provided in the following table. Streets, Access and Frontage Street Barthold Road Frontage Feet 633 Paving Asphalt Curbs No Sidewalks No Lanes 2 way, 1 lane each way Direction of Traffic East/West Condition Average Traffic Levels Low Signals/Traffic Control None Access/Curb Cuts Two Visibility Average Utilities Utilities available to the subject are summarized below. Utilities Service Provider Water City of Denton Sewer City of Denton Electricity Various Natural Gas Various Local Phone Various Land Description and Analysis Page 2.13 Zoning The subject is within the General Office zone, which is intended for office, industrial, and commercial uses. The following table summarizes the applicable zoning requirements affecting the subject. Zoning Summary Zoning Jurisdiction City of Denton Zoning Designation GO Description General Office Legally Conforming?Appears to be legally conforming Zoning Change Likely?No Permitted Uses Office, industrial, and commercial uses According to the local planning department, there are no pending or prospective zoning changes. Interpretation of zoning ordinances is beyond the scope of expertise of the assignment participants. An appropriately qualified land use attorney should be engaged if a determination of compliance is required. Easements, Encroachments and Restrictions Based upon a review of the property survey, there are several easements along the western boundary of the subject. These easements include a 30-foot access easement, a 15-foot sanitary sewer easement, a 20-foot road easement, and a 10-foot pipeline easement. There was a gas well on the southwestern corner of the subject, but it has been removed as of the date of our inspection. Based on our research, there are no other easements, encroachments, or restrictions that would adversely affect value. This valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Improvements The subject includes minor site improvements. There is concrete paving and concrete curbing along the western boundary of the site. The concrete paving and curbing is for the access easement for the property directly north of the subject. Conclusion of Site Analysis Overall, the physical characteristics and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include office, industrial, and commercial uses. No other restrictions on development are apparent. Land Description and Analysis Page 2.14 Denton County Appraisal District - Aerial Photograph Land Description and Analysis Page 2.15 Denton County Appraisal District Tax Map Land Description and Analysis Page 2.16 Flood Hazard Map Land Description and Analysis Page 2.17 Zoning Map Real Estate Taxes Page 2.18 Real Estate Taxes The subject is located in Denton County and assessed by the Denton County Appraisal District. Real estate taxes in this state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property may be determined by dividing the assessed value for a property by $100, then multiplying the estimate by the composite rate. The composite rate is based on a consistent state tax rate throughout the state, in addition to one or more local taxing district rates. Real estate taxes and assessments for the current tax year are shown in the following table. Taxes and Assessments - 2025 Assessed Value Taxes and Assessments Tax ID Land Improvements Total Tax Rate Ad Valorem Taxes Total 315333 $950,000 $0 $950,000 1.799532% $17,096 $17,096 Based on the concluded market value of the subject, the assessed value appears low. Form ROW-A-5 (Rev. 08/2011) Page PVS 3.0 PROPERTY VALUATION SUMMARY Part to be Acquired: ☐Remainder After: ☐ HIGHEST AND BEST USE ANALYSIS: See Page 3.1 VALUATION APPROACHES Insert value estimate, then describe, analyze, and support each approach as required. Sales Comparison Approach (Land).......................................................................................$1,642,210 Cost Approach........................................................................................................................N/A Sales Comparison Approach (Improved)...............................................................................N/A Income Approach....................................................................................................................N/A Reconciliation of Approaches to Value...............................................................................$1,642,210 $0 Land Value 328,442 SF @ $5.00 /SF =$1,642,210 Reconciled Final Value............................................................................................................................................................$1,642,210 Each approach developed follows this page and is sequenced as Shown below. Land Value,Cost Approach,Sales Comparison Approach,Income Approach, pg. 3.4 pg. 3.16 pg. 3.17 pg. 3.18 Whole:  Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements Highest and Best Use Page 3.1 Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site. • Financially feasible. • Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant First, the property is evaluated as though vacant, with no improvements. Legally Permissible The site is zoned GO, General Office. Permitted uses include office, industrial, and commercial uses. There are no apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, only commercial use is given further consideration in determining highest and best use of the site, as though vacant. Physically Possible The site is 7.54 acres or 328,442 square feet of land located in the city of Denton within Denton County. The site is rectangular in shape and generally level and at street grade. The subject is located within Flood Zone X. The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Financially Feasible Based on the accompanying analysis of the market, there is currently adequate demand for commercial use in the subject’s area. It appears a newly developed commercial use on the site would have a value commensurate with its cost. Therefore, commercial use is considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than commercial use. Accordingly, commercial use, developed to the normal market density level permitted by zoning, is the maximally productive use of the property. Conclusion Development of the site for commercial use is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. Highest and Best Use Page 3.2 As Improved The subject is vacant land and therefore a Highest and Best Use “As Improved” is not necessary. Most Probable Buyer Taking into account the size and characteristics of the property and its occupancy, the likely buyer is a local investor. Valuation Methodology Page 3.3 Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties. The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Use in Assignment Sales Comparison Approach (Land)Utilized Cost Approach Not Utilized Sales Comparison Approach (Improved)Not Utilized Income Approach Not Utilized Form ROW-A-5 (Rev. 08/2011) Page SCA 3.4 SALES COMPARISON APPROACH Whole: Part to be Acquired: ☐Remainder After: ☐ Land: Improved: ☐ VALUATION GRID Representative Comparable Sales Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Comp. No. 4 Comp. No. 5GrantorTillar Denton Partners, LP Mary Kathleen Wallace Hugh Z Pruett Wendell Jo Mullins Phase 18 Investments, LP Grantee Cycle Express, LLC, a Delaware limited company RAK Real Estate Equities Corinth, LLC Series VII, A Series of Henry Property Development, LLC Ring Power Corporation CCS Denton Devco, LLC Date of Sale 10/10/2024 1/27/2023 1/13/2023 2/22/2023 6/11/2021 Unit Price ($/SF)$6.48 $4.03 $4.28 $3.90 $3.22 Relative Location E Line Masch Branch Rd, S of US 380, Denton, TX 2950 Sandy Shores Rd., Corinth, TX NE/C IH-35W and Old Justin Road, Argyle, TX South side of US-380, west of N. Western Blvd., Denton, TX West side of IH-35, north of Barthold Rd., Denton, TX Sale Transaction Adjustments Financing Cash to Seller Similar Similar Similar Similar Similar 0%0%0%0%0% Conditions of Sale Arm's Length Similar Similar Similar Similar Similar 0%0%0%0%0% Market Conditions Improving Inferior Inferior Inferior Inferior Inferior (5% annually)2%11%11%10%19% Adjusted Unit Value $6.61 $4.47 $4.75 $4.29 $3.83 Physical Adjustments Location Similar Similar Similar Similar Similar 0%0%0%0%0% Size 7.5400 acres 14.530 acres 6.260 acres 46.710 acres 9.416 acres 23.617 acres 328,442 SF 632,926 SF 272,686 SF 2,034,688 SF 410,140 SF 1,028,757 SF 0%0%10%0%5% Shape Similar Similar Similar Similar Similar 0%0%0%0%0% Frontage/Access Similar Superior Superior Superior Superior 0%-5%-5%-5%-5% Utilities Similar Similar Similar Similar Similar 0%0%0%0%0% Topography Similar Similar Similar Similar Similar 0%0%0%0%0% Floodplain Similar Similar Similar Inferior Similar 0%0%0%20%0% Zoning/Use Similar Similar Similar Similar Similar 0%0%0%0%0% Easements Similar Similar Similar Similar Similar 0%0%0%0%0% Net Adjustment 0%-5%5%15%0% Indicated Unit Value $6.61 $4.25 $4.99 $4.93 $3.83 Estimated Unit Value:$5.00 Estimated Value by Sales Comparison Approach................................................................................$1,642,210 GO Standard N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas Rectangular Average In Vicinity Level Flood Zone X For the explanation of adjustments with Reconciliation, please see the following pages. Sales Comparison Approach Page 3.5 Sales Comparison Approach To develop an opinion of the subject’s land value, as though vacant and available to be developed to its highest and best use, the sales comparison approach is used. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. For this analysis, price per square foot is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. Comparable Land Sales Map Page 3.6 Form ROW-A-5S (Rev. 11/11) Page 1 of 5 COMPARABLE DATA SUPPLEMENT District:Parcel No.:Highway:IH 35 County:ROW CSJ: Land Sale 1 Improved Sale N/A Rental Data:N/A Grantor/Lessor:Grantee/Lessee: Date:Lat/Long:33.227236, -97.196058 Recording Information:Zip Code:76207 Address: Legal Description: Confirmed Price:$4,100,000 Verified with: Terms and Conditions of Sale:Cash to seller / Arm's-length Rental Data:N/A Land Size:632,926 SF 14.53 acres Unit Price as Vacant:$6.48 Type Street:Primary Roadway Utilities: Improvement Description:N/A Improvement(s) Size:N/A (GBA) N/A (NRA)Unit Price as Improved:N/A Condition and Functional Design Current Use:Land Highest & Best Use:Commercial:Industrial Date of Inspection:3/5/2025 Zoning:Flood Plain: Attach additional information as necessary. Appraiser:Brent Pitts, MAI, AI-GRS, R/W-AC March 13, 2025 (Typed, not signed)Date Dallas 074-1A WWE Denton N/A Tillar Denton Partners, LP Cycle Express, LLC, a Delaware limited company N/A LI Zone X Property reportedly sold for $4,100,000, or $6.48/SF. October 10, 2024 2024-110813 E Line Masch Branch Rd, S of US 380, Denton, Denton County, TX Hemphill Yorlum Addition, Block A, Lot 1A, Denton, Denton County, Texas Other / Nick Talley - Broker All Available Page 3.7 Form ROW-A-5S (Rev. 11/11) Page 2 of 5 COMPARABLE DATA SUPPLEMENT District:Parcel No.:Highway:IH 35 County:ROW CSJ: Land Sale 2 Improved Sale N/A Rental Data:N/A Grantor/Lessor:Grantee/Lessee: Date:Lat/Long:33.162503, -97.06206 Recording Information:2023-8742 Zip Code:76210 Address: Legal Description: Confirmed Price:$1,100,000 Verified with: Terms and Conditions of Sale:Cash to seller / Arm's-length Rental Data:N/A Land Size:272,686 SF 6.26 acres Unit Price as Vacant:$4.03 Type Street:Secondary Roadway Utilities: Improvement Description:N/A Improvement(s) Size:N/A (GBA) N/A (NRA)Unit Price as Improved:N/A Condition and Functional Design Current Use:Land Highest & Best Use:Commercial:Industrial Date of Inspection:3/5/2025 Zoning:Flood Plain: Attach additional information as necessary. Appraiser:Brent Pitts, MAI, AI-GRS, R/W-AC March 13, 2025 (Typed, not signed)Date Dallas 074-1A WWE Tracts 51 and 57MEP & PPR Survey, Abstract #911 Seller Broker / Phillip Gumbert (214) 769- 4653 All Available N/A I Zone X Denton N/A Mary Kathleen Wallace RAK Real Estate Equities Corinth, LLC January 27, 2023 2950 Sandy Shores Rd., Corinth, Denton County, TX This industrial zoned site was purchased for the development of a 60,000 square foot warehouse building. The sales price was renegotiated downward at the last minute due to the large amount of dirt work required for development due to the slope of the site. Property is located on the southwest corner of Corinth Street and Shady Shores Road. Page 3.8 Form ROW-A-5S (Rev. 11/11) Page 3 of 5 COMPARABLE DATA SUPPLEMENT District:Parcel No.:Highway:IH 35 County:ROW CSJ: Land Sale 3 Improved Sale N/A Rental Data:N/A Grantor/Lessor:Grantee/Lessee: Date:Lat/Long:33.119631, -97.211725 Recording Information:2023-5675 Zip Code:76226 Address: Legal Description: Confirmed Price:$8,713,693 Verified with: Terms and Conditions of Sale:Cash to seller / Arm's-length Rental Data:N/A Land Size:2,034,688 SF 46.71 acres Unit Price as Vacant:$4.28 Type Street:Interstate Highway Utilities: Improvement Description:N/A Improvement(s) Size:N/A (GBA) N/A (NRA)Unit Price as Improved:N/A Condition and Functional Design Current Use:Land Highest & Best Use:Commercial:Other Date of Inspection:3/5/2025 Zoning:Flood Plain: Attach additional information as necessary. Appraiser:Brent Pitts, MAI, AI-GRS, R/W-AC March 13, 2025 (Typed, not signed)Date January 13, 2023 NE/C IH-35W and Old Justin Road, Argyle, Denton County, TX Lot 1, Block 1, Salmon Estates Buyer Broker / Everette Newland All available N/A Dallas 074-1A WWE Denton N/A Hugh Z Pruett Series VII, A Series of Henry Property Development, LLC CF Zone X Rectangular shaped tract located north of Downtown Fort Worth along I35W. Site is zoned for community facilities which includes uses that are open to the public like government offices, medical offices, school, recreational uses, and churches. Tract is located outside of the floodplain. This commercial tract has road frontage on three sides and has Argyle water available onsite. Page 3.9 Form ROW-A-5S (Rev. 11/11) Page 4 of 5 COMPARABLE DATA SUPPLEMENT District:Parcel No.:Highway:IH 35 County:ROW CSJ: Land Sale 4 Improved Sale N/A Rental Data:N/A Grantor/Lessor:Grantee/Lessee: Date:Lat/Long:33.230173, -97.191466 Recording Information:2023-1051 Zip Code:76208 Address: Legal Description: Confirmed Price:$1,600,000 Verified with: Terms and Conditions of Sale:Cash to seller / Arm's-length Rental Data:N/A Land Size:410,140 SF 9.4155 acres Unit Price as Vacant:$3.90 Type Street:Secondary Roadway Utilities: Improvement Description:N/A Improvement(s) Size:N/A (GBA) N/A (NRA)Unit Price as Improved:N/A Condition and Functional Design Current Use:Land Highest & Best Use:Commercial:Industrial Date of Inspection:3/5/2025 Flood Plain: Attach additional information as necessary. Appraiser:Brent Pitts, MAI, AI-GRS, R/W-AC March 13, 2025 (Typed, not signed)Date Wendell Jo Mullins Ring Power Corporation February 22, 2023 South side of US-380, west of N. Western Blvd., Denton, Denton County, TX Tract 16, Abstract A0148A, WM Bryan Seller Broker / Gary Bisha (713) 683-0054 Dallas 074-1A WWE Denton N/A All Available N/A Zoning:Zone AE This comparable represents a sale of vacant land for future commercial development. LI Page 3.10 Form ROW-A-5S (Rev. 11/11) Page 5 of 5 COMPARABLE DATA SUPPLEMENT District:Parcel No.:Highway:IH 35 County:ROW CSJ: Land Sale 5 Improved Sale N/A Rental Data:N/A Grantor/Lessor:Grantee/Lessee: Date:Lat/Long:33.267378, -97.180413 Recording Information:2021-106106 Zip Code:76240 Address: Legal Description: Confirmed Price:$3,307,858 Verified with: Terms and Conditions of Sale:Cash to seller / Arm's-length Rental Data:N/A Land Size:1,028,757 SF 23.617 acres Unit Price as Vacant:$3.22 Type Street:Primary Roadway Utilities: Improvement Description:N/A Improvement(s) Size:N/A (GBA) N/A (NRA)Unit Price as Improved:N/A Condition and Functional Design Current Use:Land Highest & Best Use:Commercial:Industrial Date of Inspection:3/5/2025 Zoning:Flood Plain: Attach additional information as necessary. Appraiser:Brent Pitts, MAI, AI-GRS, R/W-AC March 13, 2025 (Typed, not signed)Date Denton N/A Phase 18 Investments, LP CCS Denton Devco, LLC June 11, 2021 West side of IH-35, north of Barthold Rd., Denton, Denton County, TX Dallas 074-1A WWE Property is located on the west side of IH35 in northern Denton. This comparable represents a purchase of two (2) adjoining tracts of vacant land for future commercial development. The property possesses level terrain and open pasture area. Lot 1, Block A, I-35 Warehouse Addition Seller Broker / Randall Schwimmer (214) 433-6408 All Available N/A GO Zone X Sales Comparison Approach Page 3.11 Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 5-10% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include – but are not limited to – location, access/exposure, size, quality, effective age, economic and legal characteristics, and non-realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments Real Property Rights Conveyed The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non- detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). No adjustments for this characteristic were required. Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below- market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash-to-seller transactions and, therefore, do not require adjustment. Sales Comparison Approach Page 3.12 Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non-market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Expenditures Made Immediately After Purchase This category considers expenditures incurred immediately after the purchase of a property. The sales are adjusted as necessary for expenditures after sale. Please refer to the comparable data supplement sheets for additional information. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required. The sales took place from June 2021 to October 2024. Market conditions have generally been strengthening. The adjustment grid accounts for this trend with upward adjustments of 5% annually over this period through the effective date of value. Sales Comparison Approach Page 3.13 Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. All of the comparables are similar to the subject. No adjustments are necessary. Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject are adjusted upward, and vice versa. Sales 3 and 5 are adjusted upward for larger size. Shape This category accounts for the shape of the site influencing its overall utility and/or development potential. All of the comparables are similar to the subject. No adjustments are necessary. Frontage/Access Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. Sales 2, 3, 4, and 5 are slightly superior to the subject with respect to frontage/access and are adjusted downward. Utilities Sites with public utilities available are considered more desirable relative to properties requiring utility extensions, or those that need a private well and/or septic system. Properties without public utilities available typically require higher development costs, all else being equal. All of the comparables are similar to the subject. No adjustments are necessary. Topography This category accounts for the grade of the land influencing its overall utility and/or development potential. All of the comparables are similar to the subject. No adjustments are necessary. Floodplain This category accounts for the impact of any flood plain influencing the overall development potential. Sale 4 is adjusted upward for inferior floodplain characteristics. Sales Comparison Approach Page 3.14 Zoning/Use This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as allowable density of floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. All of the comparables are similar to the subject and no adjustments are necessary. Easements This category accounts for any easements or encumbrances that detrimentally impact the development of a site. All of the comparables are similar to the subject and no adjustments are necessary. Based on our conversation with the neighboring owner, a portion of the property to the west was previously under contract. A net land area of 3,452,110 square feet (79.250 acres) was under contract for a reported contract price of $182,965.30/acre or $4.20 per square foot. The buyer planned on constructing a distribution warehouse on this site; however, this contract has not closed after reportedly being scheduled to close by March 2024. The area that was under contract is outlined in yellow on the aerial map below. Sales Comparison Approach Page 3.15 Land Value Conclusion Prior to adjustments, the sales reflect a range of $3.22 - $6.48 per square foot. After adjustment, the range is $3.83 - $6.61 per square foot, with an average of $4.79 per square foot. Based on the subject’s overall locational and physical features, a unit value conclusion of $5.00 is reasonable and supported. The following table summarizes the conclusion of land value for the subject property. Whole Property Land Value Unit Price ($/SF)$5.00/SF Land Area (SF)x 328,442 SF Concluded Land Value $1,642,210 Form ROW-A-5 (Rev. 08/11) Page CA 3.16 COST APPROACH Estimated Replacement/Reproduction Cost Improvement Number of Units $ per unit Cost New Value $ Contributory Value of the Buildings $0 Accessory Improvements $ Contributory Value of the Accessory Improvements $0 Site Improvements Contributory Value of the Site Improvements $0 Contributory Value of All Improvements $0 Land Value 328442 SF @ 5 /SF=$1,642,210 Estimated Value by Cost Approach $N/A <Depreciation> Whole: Part to be Acquired: ☐Remainder After: ☐ The Cost Approach is not applicable in the valuation of the Whole Property. Form ROW-A-5 (Rev. 08/11) Page SCA 3.17 SALES COMPARISON APPROACH Whole: Part to be Acquired: ☐Remainder After: ☐ Land: ☐Improved:  VALUATION GRID Representative Comparable Sales Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Comp. No. 4 Comp. No. 5 Grantor Grantor Grantor Grantor Grantor Grantor Grantee Grantee Grantee Grantee Grantee Grantee Date of Sale Sale Close Date Sale Close Date Sale Close Date Sale Close Date Sale Close Date Unit Price ($/SF GBA)#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Relative Location Address, City, State Address, City, State Address, City, State Address, City, State Address, City, State Sale Transaction Adjustments Financing Cash to Seller Financing Financing Financing Financing Financing 0%0%0%0%0% Conditions of Sale Arm's Length Conditions of Sale Conditions of Sale Conditions of Sale Conditions of Sale Conditions of Sale 0%0%0%0%0% Market Conditions Stable Similar Similar Similar Similar Similar 0%0%0%0%0%0% Adjusted Unit Value #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Physical Adjustments Similar Similar Similar Similar Similar 0%0%0%0%0% Gross SF Gross SF Gross SF Gross SF Gross SF 0%0%0%0%0% Similar Similar Similar Similar Similar 0%0%0%0%0% Year Built Year Built Year Built Year Built Year Built 0%0%0%0%0% Similar Similar Similar Similar Similar 0%0%0%0%0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 0%0%0%0%0% Parking Ratio Parking Ratio Parking Ratio Parking Ratio Parking Ratio 0%0%0%0%0% Net Adjustment 0%0%0%0%0% Indicated Unit Value #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Estimated Unit Value: Estimated Value by Sales Comparison Approach..................................................................N/A Location N/S Barthold Road, 700 ft. west of IH 35, D T D Size (GBA)10,062 Quality Average Age / Condition – Frontage / Access Average Land to Building Ratio 32.64 to 1.0 Parking Ratio – The Sales Comparison Approach is not applicable in the valuation of the Whole Property. Form ROW-A-5 (Rev. 08/11) Page IA 3.18 INCOME APPROACH Rental Revenue $$ Reimbursements $ Other Income $ Potential Gross Income $ Vacancy 5.0%$$ Effective Gross Income $ Expenses Taxes $/SF $ Insurance $/SF $ Repairs & Maintenance $/SF $ Management of EGI $ Reserves $/SF $ Other $/SF $ Total Expenses $ Net Operating Income $ Income Capitalized @ $ Plus: Value of Excess Land (if any)$ Estimated Value by Income Approach $N/A Whole: Part to be Acquired: ☐Remainder After: ☐ The Income Capitalization Approach is not applicable in the valuation of the Whole Property. Reconciliation and Conclusion of Value – Whole Property Page 3.19 Reconciliation and Conclusion of Value – Whole Property Reconciliation is the process of analyzing the relevance of the indicated values, resulting in a final value estimate. The appraisers have documented all of the input data and briefly explained the methodology in processing and/or analyzing this data. Insofar as the appraisers were able to determine, the data furnished is from reliable sources and has been accepted as being accurate. The Cost Approach assumes that an informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements are relatively new and represent the highest and best use of the land, or when the property has unique or specialized improvements for which there are few or no sales or rentals of comparable properties. The Sales Comparison Approach is a comparison of known market transactions of similar properties. When sufficient information is available in order to make a unit comparison, a supportable indication of value can be obtained. The underlying economic factor in this approach is the Principle of Substitution, which states that a prudent purchaser would pay no more for a property than the cost of acquiring an equally desirable substitute property. This approach to value is most applicable when a sufficient number of comparable sales are available. The Income Capitalization Approach reflects the market’s perception of a relationship between a property’s potential income and its market value, a relationship expressed as a capitalization rate. Direct income capitalization is a method of converting a single year’s estimate of net operating income into an indicated present value. This approach converts the anticipated benefits to be derived from the ownership of property into a value indication through capitalization. Applicability of Valuation Approaches The value indications via each applicable approach and the final reconciliation of value for the whole property is summarized in the following table. Reconciliation - Whole Property Sales Comparison Approach (Land)$1,642,210 Cost Approach N/A Sales Comparison Approach (Improved)N/A Income Approach N/A Conclusion $1,642,210 Form ROW-A-5 (Rev. 08/11) Page 4.0 PART TO BE ACQUIRED Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements $ Easement 23,835 SF @ $2.50 /SF =$59,588 Fee 0 SF @ $5.00 /SF =$0 Total Land $ TOTAL VALUE AS A UNIT $ Highest and Best Use: Due to the shape and size of the partial acquisition, its use is limited to use in conjunction with the subject whole property. Because of this, the highest and best use of the partial acquisition, as vacant, is for use in conjunction with the subject whole property. 0 59,588.00 59,588 REMAINDER BEFORE THE ACQUISITION Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements $ Easement 23,835 SF @ $2.50 /SF =$59,587 Fee 304,607 SF @ $5.00 /SF =$1,523,035 Total Land $ TOTAL VALUE AS A UNIT $ 1,582,622 1,582,622 0 Part Acquired Page 4.1 Part Acquired The following portion of the appraisal process deals directly with the valuation of the subject part acquired. The part acquired is the portion of the subject that is acquired by eminent domain from the whole property. The valuation of the part acquired is predicated on the market value of the property prior to any acquisition and excludes the influence of the subject project. Partial Acquisition Description The easement is an area of 0.5472 acres or 23,835 square feet of land along the southern boundary of the subject site. The easement has a maximum depth of 55.02 feet and length of 627.80 feet. There are minor site improvements located within the proposed easement area. The site improvements include concrete paving and concrete curbing. According to the client, these improvements will be replaced to an equivalent or superior condition directly by the City of Denton as part of construction. Therefore, these items are not included in the value of the part acquired and a cost to cure is not necessary. An aerial exhibit and survey of the Part Acquired follows. Part Acquired Page 4.2 Aerial Photograph Showing Part Acquired Part Acquired Page 4.3 Survey Part Acquired Page 4.4 Survey Highest and Best Use – Part Acquired Page 4.5 Highest and Best Use – Part Acquired Highest and best use may be defined as that reasonably probable and legal use of vacant land or improved property that is physically possible, appropriately supported, and financially feasible that results in the highest value. The four tests to develop adequate support for an opinion of highest and best use, applied in order, are legal permissibility, physical possibility, financial feasibility, and maximum productivity. As Vacant Analysis – Part Acquired Due to its limited size, the area of the partial acquisition could not stand alone as a separate and independent economic unit. The partial acquisition’s use is essentially limited to use in conjunction with the whole property. As such, the highest and best use of the part acquired, as vacant, is for use in conjunction with the subject whole property. As Improved Analysis – Part Acquired The highest and best use of the part acquired, as improved, is the same as that of the subject whole property. Valuation Methodology In this instance, the subject part acquired consists of land only. As an integral part of the whole property, the part acquired shares the same physical and economic characteristics. Because the highest and best use of the part acquired is for use in conjunction with the subject whole property, the part acquired shares the same per unit land value concluded in the valuation of the subject whole property and applied in the valuation of the part acquired. The calculation of the value of the part acquired is summarized in the following reconciliation discussion. Land Value - Part Acquired Since the economic unit analyzed to derive a value estimate for the Part Acquired is the same size as the subject Whole Property, the same set of land sales are utilized in estimating the value of the Part Acquired as were used in the analysis of the Whole Property. Therefore, the fee value of the Part Acquired is estimated at $5.00 per square foot. Since the subject acquisition is an easement and not a fee simple acquisition, a percentage of the fee simple interest will remain with the property owner after the acquisition. Valuation Methodology Page 4.6 EASEMENT VALUATION MATRIX As noted, the part to be acquired contains fee acquisitions and easement areas. The following chart (Right of Way Magazine, “Easement Valuation”, Sherwood, May 2006) outlines a very basic analysis of typical easement encumbrances. It can be used as a generic guide to analyze the extent of ownership the fee owner loses as a result of the encumbrance brought about by an easement. The subject Part Acquired is a proposed water and wastewater easement. The area within easement will be accessible and site improvements will be permitted except for fencing. Therefore, a reasonable percentage of the fee value attributable to the easement is 26% to 50%, leaving 74% to 50% of the fee value with the property owner. In this case, 50% of the fee value has been attributed to the easement. The combined Part Acquired contains a total of 0.5472 acres or 23,835 square feet. Therefore, the fee land value of the Part Acquired is estimated at $59,588. 23,835 square feet X 50% X $5.00 per square foot = $59,588 Reconciliation – Part Acquired The part acquired was valued as an integral component of the whole property. The value is based on its pro rata contribution to the whole. As previously mentioned, the per unit value for the land and improvements (if applicable) were previously calculated in the valuation of the whole property and are applied in the valuation of the part acquired as follows. Part Acquired Land - Easement 23,835 SF @ $2.50 /SF =$59,588 Depreciated Value of Improvements $0 Total $59,588 Remainder Before Page 4.7 Remainder Before The remainder before is a mathematical calculation of the value of the whole property less the value of the part acquired. The remainder before is compared to the value of the remainder after to determine the amount of damages resulting from the acquisition, if any. The remainder before value is calculated as follows. Remainder Before Whole Property $1,642,210 Less: Part Acquired ($59,588) Value of Remainder Before Taking $1,582,622 Form ROW-A-5 (Rev. 08/11) Page PVS 5.0 PROPERTY VALUATION SUMMARY Part to be Acquired: ☐Remainder After:  HIGHEST AND BEST USE ANALYSIS: See Page 5.2 VALUATION APPROACHES Insert value estimate, then describe, analyze, and support each approach as required. Sales Comparison Approach (Land).......................................................................................$1,582,622 Cost Approach........................................................................................................................N/A Sales Comparison Approach (Improved)...............................................................................N/A Income Approach....................................................................................................................N/A Reconciliation of Approaches to Value...............................................................................$1,582,622 $ - Easement Value:23,835 SF @ $2.50 /SF =$59,587 Land Value:304,607 SF @ $5.00 /SF =$1,523,035 Reconciled Final Value............................................................................................................................................................$1,582,622 Each approach developed follows this page and is sequenced as Shown below. Land Value,Cost Approach,Sales Comparison Approach, Income Approach, pg. 5.3 pg. 5.4 pg. 5.5 pg. 5.6 Whole: ☐ Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements Remainder After Valuation Parcel 074-1A WWE Page 5.1 Remainder After Valuation Following the acquisition, the remainder property will consist of 6.9928 acres (304,607 SF) of fee land and 23,835 square feet of water and wastewater easement for a total of 328,442 square feet. The remainder after will have similar shape, frontage, and other physical characteristics as the subject whole property. There will be no known denial of access on the remainder property according to the survey provided. The aerial below represents the remainder property with the yellow outline being the easement and the red outline as the remainder. Highest & Best Use – Remainder After Parcel 074-1A WWE Page 5.2 Highest & Best Use – Remainder After Highest and best use may be defined as the reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, and financially feasible and that results in the highest value. The four tests, applied in order, to develop adequate support for an opinion of highest and best use are legal permissibility, physical possibility, financial feasibility and maximum productivity. As Vacant Analysis – Remainder After The remainder is similar to the whole property with regard to location and physical characteristics. The acquisition does not result in a change in highest and best use for the property as vacant. Therefore, the highest and best use of the remainder is the same as that of the whole property, or commercial use. As Improved Analysis – Remainder After The subject property is appraised as vacant land and a highest and best-use “as improved” is not warranted. Valuation Methodology – Remainder After The remainder after property will have similar size, physical characteristics, and highest and best use as the subject whole property. As such, the valuation of the remainder after uses the same fundamental data as the subject whole property valuation. The remainder after is valued on the following pages. Form ROW-A-5 (Rev. 08/11) Page SCA 5.3 SALES COMPARISON APPROACH Whole: ☐Part to be Acquired: ☐Remainder After:  Land: Improved: ☐ VALUATION GRID Representative Comparable Sales Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Comp. No. 4 Comp. No. 5 Grantor Tillar Denton Partners, LP Mary Kathleen Wallace Hugh Z Pruett Wendell Jo Mullins Phase 18 Investments, LP Grantee Cycle Express, LLC, a Delaware limited company RAK Real Estate Equities Corinth, LLC Series VII, A Series of Henry Property Development, LLC Ring Power Corporation CCS Denton Devco, LLC Date of Sale 10/10/2024 1/27/2023 1/13/2023 2/22/2023 6/11/2021 Unit Price ($/SF)$6.48 $4.03 $4.28 $3.90 $3.22 Relative Location E Line Masch Branch Rd, S of US 380, Denton, TX 2950 Sandy Shores Rd., Corinth, TX NE/C IH-35W and Old Justin Road, Argyle, TX South side of US-380, west of N. Western Blvd., Denton, TX West side of IH-35, north of Barthold Rd., Denton, TX Sale Transaction AdjustmentsFinancingCash to Seller Similar Similar Similar Similar Similar0%0%0%0%0%Conditions of Sale Arm's Length Similar Similar Similar Similar Similar 0%0%0%0%0% Market Conditions Improving Inferior Inferior Inferior Inferior Inferior (5% annually)2%11%11%10%19% Adjusted Unit Value $6.61 $4.47 $4.75 $4.29 $3.83 Physical Adjustments Location Similar Similar Similar Similar Similar 0%0%0%0%0% Size 7.5400 acres 14.530 acres 6.260 acres 46.710 acres 9.416 acres 23.617 acres 328,442 SF 632,926 SF 272,686 SF 2,034,688 SF 410,140 SF 1,028,757 SF 0%0%10%0%5% Shape Similar Similar Similar Similar Similar0%0%0%0%0%Frontage/Access Similar Superior Superior Superior Superior0%-5%-5%-5%-5%Utilities Similar Similar Similar Similar Similar 0%0%0%0%0% Topography Similar Similar Similar Similar Similar 0%0%0%0%0% Floodplain Similar Similar Similar Inferior Similar 0%0%0%20%0% Zoning/Use Similar Similar Similar Similar Similar 0%0%0%0%0% Easements Similar Similar Similar Similar Similar 0%0%0%0%0%Net Adjustment 0%-5%5%15%0%Indicated Unit Value $6.61 $4.25 $4.99 $4.93 $3.83 Estimated Unit Value - Fee:$5.00 Remainder Size - Fee:x 304,607 SF Remainder Land Value - Fee:$1,523,035 Estimated Unite Value - Easement:$2.50 Remainder Size - Easement:x 23,835 SF Remainder Land Value - Easement:$59,587 Estimated Value by Sales Comparison Approach.......................................................................................$1,582,622 GO Standard N/S Barthold Road, 700 ft. west of IH 35, Denton, Texas Rectangular Average In Vicinity Level Flood Zone X The Remainder will have the same general locational and physical characteristics as existed in the Whole Property. The same land sales and adjustments applicable for the Whole Property are applicable for the remainder. For an explanation of Adjustments with Reconciliation, please see Section 3 for land sale adjustment discussion which is applicable for the remainder after. Form ROW-A-5 (Rev. 08/11) Page CA 5.4 COST APPROACH Estimated Replacement/Reproduction Cost Improvement Number of Units $ per unit Cost New Value SF @ /SF =$ Contributory Value of the Buildings $0 Accessory Improvements SF @ /SF =$ Contributory Value of the Accessory Improvements $0 Site Improvements SF @ /SF =$ Contributory Value of the Site Improvements $0 Contributory Value of All Improvements $0 Land Value 304,607 SF @ 5 /SF=$1,582,622 Estimated Value by Cost Approach $N/A <Depreciation> Whole: ☐Part to be Acquired: ☐Remainder After:  The Cost Approach is not applicable in the valuation of the Remainder After. Form ROW-A-5 (Rev. 08/11) Page SCA 5.5 SALES COMPARISON APPROACH Whole: ☐Part to be Acquired: ☐Remainder After:  Land: ☐Improved:  VALUATION GRID Representative Comparable Sales Subject Comp. No. 1 Comp. No. 2 Comp. No. 3 Comp. No. 4 Comp. No. 5 Grantor Grantor Grantor Grantor Grantor Grantor Grantee Grantee Grantee Grantee Grantee Grantee Date of Sale Sale Close Date Sale Close Date Sale Close Date Sale Close Date Sale Close Date Unit Price #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! Relative Location Address, City, State Address, City, State Address, City, State Address, City, State Address, City, State Sale Transaction Adjustments Financing Cash to Seller Similar Similar Similar Similar Similar 0%0%0%0%0% Conditions of Sale Arm's Length Similar Similar Similar Similar Similar 0%0%0%0%0% Market Conditions Stable Similar Similar Similar Similar Similar 0%0%0%0%0%0% Adjusted Unit Value Physical Adjustments Similar Similar Similar Similar Similar 0%0%0%0%0% Gross SF Gross SF Gross SF Gross SF Gross SF 0%0%0%0%0% Similar Similar Similar Similar Similar 0%0%0%0%0% Year Built Year Built Year Built Year Built Year Built 0%0%0%0%0% Similar Similar Similar Similar Similar 0%0%0%0%0% #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 0%0%0%0%0% Parking Ratio Parking Ratio Parking Ratio Parking Ratio Parking Ratio 0%0%0%0%0% Indicated Unit Value 0%0%0%0%0% Estimated Unit Value:$0.00 Estimated Value by Sales Comparison Approach..................................................................N/A Location N/S Barthold Road, 700 ft. west of IH 35, D T D Size (GBA)10,062 Quality Average Age / Condition – Frontage / Access Average Land to Building Ratio 32.64 to 1.0 Parking Ratio – The Sales Comparison Approach - Improved is not applicable in the valuation of the Remainder After. Form ROW-A-5 (Rev. 08/11) Page IA 5.6 INCOME APPROACH Rental Revenue $$ Reimbursements $ Other Income $ Potential Gross Income $ Vacancy 5.0%$$ Effective Gross Income $ Expenses Taxes $/SF $ Insurance $/SF $ Repairs & Maintenance $/SF $ Management of EGI $ Reserves $/SF $ Other $/SF $ Total Expenses $ Net Operating Income $ Income Capitalized @ $ Plus: Value of Excess Land (if any)$ Estimated Value by Income Approach $N/A Whole: ☐Part to be Acquired: ☐Remainder After:  The Income Capitalization Approach is not applicable in the valuation of the Remainder After. Reconciliation – Remainder After Page 5.7 Reconciliation – Remainder After The reconciliation of value conclusions is the final step in the appraisal process and involves the weighing of individual valuation techniques in relation to their substantiation by market data and the reliability and applicability of each valuation technique to the subject property. Understanding the profiles of potential buyers and their typical reliance on each approach to value strongly influences the weighting process. The remainder is vacant land, and the Sales Comparison Approach (Land) is the only approach to value completed. Presentation of Value Conclusions The following table summarizes our final opinion of the value of the remainder after. The effective date of valuation in this report is March 5, 2025. Reconciliation - Remainder After Sales Comparison Approach (Land)$1,582,622 Cost Approach N/A Sales Comparison Approach (Improved)N/A Income Approach N/A Conclusion $1,582,622 Form ROW-A-5 (Rev. 08/11) Page 6.0 COMPENSATION SUMMARY WHOLE PROPERTY: The market value of the whole property is.......................................................................$1,642,210 PART TO BE ACQUIRED: Considered as severed land, the fee simple title to the part being acquired for highway purposes (less oil, gas and sulphur and subject to existing easements, if any, which are not to be extinguished) is...................................................................................................$59,588 REMAINING PROPERTY: The value of the remainder immediately before the taking is…......................................$1,582,622 Considering the uses to which the part taken is to be subjected to, the market value of the remainder immediately after the acquisition is...............................................................................................................$1,582,622 NET DAMAGES OR ENHANCEMENTS, if any....................................................................................................$0 ACCESS: The lack of any access denial or the material impairment of direct access on or off the remaining property affects the market value of the remaining property in the sum of......................................................................................................$0 COST TO CURE.......................................................................................................................................................$0 TOTAL COMPENSATION....................................................................................................................................$59,588 EXPLANATION OF DAMAGES (if any): Assumptions and Limiting Conditions Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no unknown existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 5. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. Unless otherwise noted, no environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. Assumptions and Limiting Conditions 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as Assumptions and Limiting Conditions compliance matches each owner’s financial ability with the cost to cure the non-conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Fort Worth , Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non- existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR - Fort Worth is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Fort Worth . In addition, it is expressly agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR - Fort Worth is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we Assumptions and Limiting Conditions provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. Addenda Addenda Appraiser: David Brent Pitts License #: TX 1380206 G License Expires: 01/31/2027 Chelsea Buchholtz Executive Director 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. DAVID BRENT PITTS 1228 KELPIE CT FORT WORTH, TX 76111 PID 315333 | I35/BARTHOLD RD Property Summary Report | 2025 Online Services | Denton Central Appraisal District Type: GENERAL INFO Exemptions: Name: Owner ID: % Ownership: ACCOUNT Mailing Address: Property ID: Secondary Name: Legal Description: Agent: Geographic ID: Zoning: OWNER 315333 A0683A-000-0008-0004 R NORTHBRIDGE MANAGEMENT & A0683A S.L. JOHNSON, TR 8A(PT), 7.54 ACRES, OLD DCAD TR 3B(1),6A NORTHBRIDGE REALTY HOLDINGS LLC & TLB3A INVESTMENTS LLC 1803920 212 S ELM ST DENTON TX US 76201- 6004 100.00Property Use: Map ID: Market Area CD: LOCATION Address: Protest Status: Market Area: Informal Date: PROTEST Formal Date: I35/BARTHOLD RD, DENTON TX 76207 CD09 DS05PASTUR CURRENT VALUES Appraised: Value Limitation Adjustment (-): Improvement Non-Homesite: Total Land: VALUES Total Improvement: Land Homesite: Special Use Exclusion (-): Market: Net Appraised: Improvement Homesite: Land Non-Homesite: Special Use Land Market: N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A VALUE HISTORY AppraisedImprovement Net AppraisedYearValue Limitation Adj (-)Special Use ExclusionLand Market 2025 N/A N/AN/A N/A N/AN/A 2024 $0 $950,000$950,000 $950,000 $0$0 2023 $0 $950,000$950,000 $950,000 $0$0 2022 $0 $596,000$596,000 $596,000 $0$0 2021 $0 $397,332$397,332 $397,332 $0$0 VALUE HISTORY of 2Page 1 Effective Date of Appraisal: January 1 Date Printed: March 06, 2025 Powered By: <True Prodigy> IMPROVEMENT LAND Cost per SQFTAcres Special Use ValueLandMarket ValueSQFTDescription 3 7.5400 N/APASTURE$4.00 N/A328,442.4 DEED HISTORY Grantee/BuyerDescription InstrumentDeed Date Book IDGrantor/SellerType PageVolume 8/31/22 SPECIAL WD 2022-128054SWNORTHBRIDGE REALTY HOLDINGS NORTHBRIDGE REALTY HOLDINGS 8/4/22 SPECIAL WD 2022-115677SWNORTHBRIDGE REALTY HOLDINGS BLUE BEACON INTERNATIONAL 8/17/17 SPECIAL WD 2017-101448SWBLUE BEACON INTERNATIONAL H3H LLC 3/3/11 DEED WITHOUT 2011-22008DWH3H LLCHLHTE-LYDA HILL TRUST ETAL 11/22/10 QUIT CLAIM DEED 2010-123247QDHLHTE-LYDA HILL TRUST ETAL HUNT, HAROLDSON L JR 6/22/09 SPECIAL WD 2009-75411SWHUNT, HAROLDSON L JR HHEC SPINCO, LLC TAXING UNITS Description Taxable ValueTax Rate Net AppraisedUnit N/A N/AC05N/ADENTON CITY OF N/A N/AG01N/ADENTON COUNTY N/A N/AS05N/ADENTON ISD N/A N/AW04N/ACLEARCREEK WATERSHED AUTHORITY DO NOT PAY FROM THIS ESTIMATE. This is only an estimate provided for informational purposes and may not include any special assessments that may also be collected. Please contact the tax office for actual amounts. of 2Page 2 Effective Date of Appraisal: January 1 Date Printed: March 06, 2025 Powered By: <True Prodigy>