HomeMy WebLinkAboutDAL_074-1A_A5_com-land_08-02-2023_Initial (1)Form ROW-A-5 (Rev. 08/11)
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REAL ESTATE APPRAISAL REPORT - TEXAS DEPARTMENT OF TRANSPORTATION
Address of Property: N/S Barthold Rd, 700 ft. west of IH 35, Denton, Texas District: Dallas
Property Owner: Northbridge Realty Holdings LLC & TLB3A Investments LLC Parcel: 074-1A WWE
Address of Property Owner: 212 S Elm St, Denton, TX 76201-6004 ROW CSJ: N/A
Occupant’s Name: N/A 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 $47,670 as of July 6, 2023, based upon my independent appraisal and the exercise of my professional judgment; That on July 6, 2023, I personally inspected in the field the property herein appraised; that I afforded Northbridge Realty Holdings LLC & TLB3A Investments LLC, the property owner or the representative of the property owner, the opportunity to accompany me at the time of the inspection; the property owner responded to my correspondence and gave permission to inspect the site unaccompanied. That the comparables relied upon in making said appraisal were as represented by the photographs contained in the appraisal report and were inspected July 6, 2023 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? No2.If so, is the denial of direct access material? No3.The lack of any access denial or the material impairment of direct access on or off the remaining property affects the marketvalue 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
Brent Pitts, MAI, AI-GRS, R/W-AC
Certification Number -TX 1380206 G
August 2, 2023
Date Reviewing Appraiser Date
08/02/2023
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Aerial Photograph
The subject of this report is vacant land.
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Parcel:Property Type:Land
Owner of Record:
Occupant:
8/2/2023 Property Address:
Whole
Values
328,442 square feet 7.5400 acres $4.00 per square foot $1,313,768
23,835 square feet 0.5472 acres $4.00 per square foot x 50%$47,670
304,607 square feet 6.9928 acres $4.00 per square foot $1,218,428
23,835 square feet 0.5472 acres $4.00 per square foot x 50%$47,670
Whole Property
Estimated Values
$0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0
$1,313,768 $47,670 $1,266,098
$1,313,768 $47,670 $1,266,098
$47,670
$0
$0
$47,670
Summary of Value
IRR File Number:195-2023-0479
074-1A WWE
Project:IH 35 Utility Relocations Northbridge Realty Holdings LLC & TLB3A
Investments LLC
Whole Property:
N/S Barthold Rd, 700 ft. west of IH 35
N/A
Permanent Easement:
Effective Date of Appraisal:7/6/2023
Date of Report:
Land Areas Land Values
Remainder After:
Remainder After Easement:
Whole Property
Components
Part to be Acquired
Estimated Values
Remainder Before
the Acquisition Remainder After the Acquisition
$0
Accessory Improvements
Site Improvements
Subtotal $0
Net Damages or Enhancements:
Cost to Cure:
Total Compensation:
$1,313,768 $47,670 $1,266,098 $1,266,098
Final Values
Estimated Value (Part Acquired):
Estimated Whole Value Estimated Value Part Acquired Remainder Before Remainder After
(Section 3)(Section 4)(Section 4)(Section 5)
Land $1,266,098
Total $1,266,098
Reconciliation
In reconciling the unit values, rounding is often necessary. The totals of the individual sites are derived from
their unit values. With the various calculations found within this analysis, often times the calculations result in
multiple decimals and rounding is required. All efforts are made to round to the nearest $1.
General Information
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General Information
Identification of Subject
Property Identification
Property Name 074-1A WWE
Address N/S Barthold Rd, 700 ft. west of IH 35
Denton, Texas 75065
Tax ID 315333
Owner of Record Northbridge Realty Holdings LLC & TLB3A Investments LLC
Legal Description 7.54 acres within A0683A S.L. JOHNSON, TR 8A(PT), OLD DCAD TR 3B(1),6A, Denton,
Denton County, Texas
The subject property is identified by the client as Parcel 074-1A WWE which is a portion of a parent
tract, or "whole property" located along N/S Barthold Rd, 700 ft. west of IH 35, Denton, Texas 75065.
The property is zoned GO, General Office, which permits office, industrial, and commercial uses.
The parent tract is legally described as 7.54 acres within A0683A S.L. JOHNSON, TR 8A(PT), OLD DCAD
TR 3B(1),6A, Denton, Denton County, Texas. The client has proposed to acquire Parcel 074-1A WWE
which consists of a total of 23,835 square feet or 0.5472 acres in easement. A legal description of the
part acquired is found in the addenda.
The calculations are as follows:
Property Description Square Footage Acreage
Calculated
Whole Land 328,442 7.5400
Water and Wastewater Easement 23,835 0.5472
Total Remainder 328,442 7.5400
Included in the Addendum is a survey of the water & wastewater easement acquisition as well as the
surveyor provided area calculations.
The whole property size and part acquired was based on information provided by the condemning
authority and the calculations are based on the survey provided by the client.
General Information
Page 1.4
Sale History
In accordance with the Uniform Standards of Professional Practice of the Appraisal Institute, a five-
year sales history of the subject property is required. The Texas Department of Transportation
requires a five-year history. A brief history is appropriate if the subject has been through a speculative
cycle in recent years whereby the property has been bought and sold several times.
According to the Denton County Appraisal District, the subject property is currently owned by
Northbridge Realty Holdings LLC & TLB3A Investments LLC. Northbridge Realty Holdings LLC & TLB3A
Investments LLC has owned the subject since August 31, 2022. The subject was previously owned by
Northbridge Realty Holdings LLC.
Sale Date August 31, 2022
Seller Northbridge Realty Holdings LLC
Buyer Northbridge Realty Holdings LLC & TLB3A Investments LLC
Sale Price N/A
Recording Instrument Number 2022-128054
There was an additional sale that occurred on August 4, 2022, between Blue Beacon International inc.
and Northbridge Realty Holdings LLC. This transaction is recorded as 2022-115677. No additional
information was provided for this transaction.
To the best of our knowledge, no other sale or transfer of ownership has taken place within a five-year
period prior to the effective appraisal date.
Pending Transactions
To the best of our knowledge, 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.
Purpose of the Appraisal
The purpose of the report is stated on Page 1. The date of the report is August 2, 2023. The appraisal
is valid only as of the stated effective date or dates.
General Information
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Definition of Market Value
Market value is defined as:
“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.”
Market Value, as defined in this report, is defined by the case, City of Austin v. Cannizzo, 267 S.W.2d 808
(Tex. 1964).
Definition of Property Rights Appraised
Fee simple estate is defined as, “Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent domain,
police power, and escheat.”
Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal
Institute, 2015)
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.
Use and Intended Users of the Appraisal
The appraisal may be used in connection with the utility relocation along IH 35 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.
General Information
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Jurisdictional Exception
The Jurisdictional Exception Rule provides for severability preserving the balance of the Uniform
Standards of Professional Appraisal Practice (USPAP). If one or more parts of USPAP are “contrary to
the law or public policy of any jurisdiction, only that part shall be void and of no force or effect in that
jurisdiction.” According to USPAP, “A law means a body of rules with binding legal force established
by controlling governmental authority.” This includes federal and state constitutions, legislative and
court made law, administrative rules, regulations and ordinances.
Hypothetical Conditions
The appraisal of the Whole Property considered all factors willing, knowledgeable buyers and sellers
would consider in negotiating the purchase price of the property, except the influence of the
proposed roadway improvements, as required by Standards Rule 1-4(f). This exception was made
under the Jurisdictional Exception provision of USPAP. It is the appraisers’ understanding that
enhancement caused by the public project is not to be considered as a matter of law. In addition, the
appraisal of the Remainder considered all factors a willing, knowledgeable buyers and sellers would
consider in negotiating the purchase of the property including the use to which the Part to be
Acquired is to be put to use and the effects of the condemnation, but excluded the effects of all non-
compensable elements. Such exclusion is permitted under the Jurisdictional Exception provision of
USPAP. Furthermore, the appraisal of the Remainder assumed that the project was complete as of the
effective date of valuation. This assumption is also permissible under the Jurisdictional Exception of
USPAP.
Extraordinary Assumptions
An extraordinary assumption is something that is assumed to be true, but it is not certain. If it turns
out to be untrue, the value conclusion could be impacted. Extraordinary assumptions are those
assumptions that are specific to the assignment, as opposed to general assumptions, which could be
applicable to any assignment. We observed a Atmos Energy easement that appears to be located
partially on the subject site. Based on our research, TxDOT has acquired the property in a prior
transaction. We have appraised the subject as though the Atmos Energy easement has been
extinguished.
Applicable Requirements
This appraisal is intended to conform to the requirements of the following:
• Uniform Standards of Professional Appraisal Practice (USPAP);
• Uniform Act;
• Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal
Institute;
• Applicable state appraisal regulations;
• TXDOT Appraisal and Review Manual
General Information
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Report Format
This report is prepared under the Appraisal Report option of Standards Rule 2-2(a) of USPAP. As
USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending
on the intended use and intended users of the appraisal, we adhere to the TXDOT A5 Long Form. This
format summarizes the information analyzed, the appraisal methods employed, and the reasoning
that supports the analyses, opinions, and conclusions.
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 performed no services, as an appraiser or in
any other capacity, regarding the property that is the subject of this report within the three-year
period immediately preceding the agreement to perform this assignment.
Scope of the Appraisal
The scope of this appraisal assignment includes conducting the research, confirmations, inspections
and analysis necessary to provide the client with an appraisal reporting the compensation estimate in
connection with the acquisition of the subject property on an appropriate Texas Department of
Transportation form. An inspection was made onsite with permission of property owner. The property
contact was not present during our inspection. The following steps were executed in the appraisal
process.
Market Area and Analysis
of Market Conditions:
A complete analysis of market conditions has been made. The
appraiser maintains access to databases for this market area
and has reviewed the market for sales and listings relevant to
this analysis.
Inspection of Subject and
Comparable Data:
A thorough investigation into the subject market for both
general and specific data pertaining to the subject property has
been conducted. In the course of the investigation, a physical
inspection of the subject property and neighborhood was
performed. An inspection of comparables has also been made.
The primary source of obtaining sales data is through local real
estate brokers, other appraisers, multiple listing services, and
various companies that sell real property transaction
information.
Highest and Best Use
Analysis Whole:
A complete as vacant and as improved highest and best use
analysis has been developed. Legally permissible, physically
possible, and financially feasible uses were considered and the
maximally productive use was concluded.
General Information
Page 1.8
Analysis of
Subject Property:
The market information was analyzed for an appraisal of the
Whole Property, the Part Acquired and value of the Remainder
Before and Remainder After the acquisition.
For credible assignment results, the subject property was
valued as a Whole, Part Acquired, and the Remainder After the
acquisition. In the case of partial acquisitions, the value of the
Part Acquired is deducted from the value of the Whole,
resulting in the Remainder Before. The value of the Remainder
Before is a forced calculation.
Highest and Best Use Analysis
Part Acquired:
A complete highest and best use analysis for the Part Acquired
has been made with consideration given to the acquisition’s
development potential as an individual economic unit and the
use that results in the highest net return to the acquisition.
Highest and Best Use
Analysis Remainder After:
A complete highest and best use analysis for the Remainder
After has been made with consideration to the impact of the
property as a result of the proposed acquisition.
Remainder After: Following the Highest and Best Use analysis, the same steps in
analyzing comparable data in regard to the subject property in
its condition after the acquisition is performed. If damages
exist, they are calculated as the difference in value from the
Remainder Before and the Remainder After.
Cost to Cure Analysis: The subject property does not contain any affected site
improvements within the proposed acquisition, and a Cost to
Cure analysis is not necessary.
Compensation: An estimate of compensation is derived by combining the value
of the Part Acquired, Damages to the Remainder After, and
Cost to Cure figures. The proposed acquisition does not result
in Remainder damages.
General Information
Page 1.9
Purpose of the Appraisal
The purpose of the appraisal is to estimate the compensation for the partial acquisition related to the
subject property.
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 property is not a
highly specialized property and does not have a limited market given its physical and financial
characteristics. Regarding the supply of competing properties, there is not such an oversupply of
property that an extended marketing time should be forecasted.
A marketing period and exposure time of six to eighteen months is considered to be adequate for the
property to receive exposure to a satisfactory number of qualified buyers. Exposure times that exceed
six to eighteen months are typically a result of overpricing rather than of inadequate exposure.
Case Law Precedents & 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).
The subject property has frontage from Barthold Road. Following the acquisition, access will remain
the same. As such, the functional utility of the site does not materially change.
General Information
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Appraisal Report Option
This is an Appraisal Report that complies with the reporting requirements set forth under Standards
Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). As previously
mentioned, the report is transmitted on a document comprised of Form ROW-A-5 and a narrative
appraisal report developed by the appraiser. The supplemental standards issued by TXDOT are
detailed in the ROW Appraisal and Review Manual, which is available from the Texas Department of
Transportation web page (www.dot.state.tx.us.)
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. The appraiser observed several items during the
inspection of the whole property that are considered non-realty items. These non-realty items were
not included in our value estimates. When non-realty items were included in sales and rentals
adjustments were applied to reflect real property only.
General Information
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Valuation Methodology
Appraisers usually consider the use of three approaches to value when developing a market value
opinion for real property. These are the cost approach, sales comparison approach, and income
capitalization approach. Use of the approaches in this assignment is summarized as follows:
Approaches to Value
Approach Applicability to Subject Use in Assignment
Cost Approach Not Applicable Not Utilized
Sales Comparison Approach Applicable Utilized
Income Capitalization Approach Not Applicable Not Utilized
The sales comparison approach is the most reliable valuation method for the subject due to the
following:
• There is an active market for similar properties, and sufficient sales data is available for
analysis.
• This approach directly considers the prices of alternative properties having similar utility.
• This approach is typically most relevant for vacant land.
The cost approach is not applicable to the assignment because:
• The subject is vacant land, and the Cost Approach is not applicable.
The income capitalization approach is not applicable to the assignment considering the following:
• The subject is vacant land, and the Income Approach is not applicable.
Research and Analysis
The type and extent of our research and analysis is detailed in individual sections of the report. This
includes the steps we took to verify comparable sales, which are disclosed in the comparable sale
profile sheets in the addenda to the report. Although we make an effort 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.
Highest and Best Use Analysis:
A complete highest and best use analysis for the subject has been made. Physically possible, legally
permissible, and financially feasible uses were considered, and the maximally productive use was
concluded.
General Information
Page 1.12
Inspection
Property Inspection
Party Inspection Type Inspection Date
Brent Pitts, MAI, AI-GRS, R/W-AC On-site July 6, 2023
Andrew Everett None N/A
We contacted the subject owner via certified mail. The owner responed to our correspondence and
gave permission to inspect the property unaccompanied.
Significant Appraisal Assistance
No one provided significant real property appraisal assistance to the persons signing this certification.
General Information
Page 1.13
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 performed no services, as an appraiser or in any other capacity, regarding the
property that is the subject of this report within the three-year period immediately preceding
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 made a personal inspection of the property that is the
subject of this report. Andrew Everett has not 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 Standards and Ethics
Education Requirements for Practicing Affiliates of the Appraisal Institute.
General Information
Page 1.14
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 Rd, 700 ft. west of IH 35
Date Taken: July 6, 2023 Taken By: Brent Pitts, MAI, AI-GRS, R/W-AC
1. Point from which taken: Subject Property Looking: North at subject.
2. Point from which taken: Subject Property Looking: East across subject and proposed
easement.
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 Rd, 700 ft. west of IH 35
Date Taken: July 6, 2023 Taken By: Brent Pitts, MAI, AI-GRS, R/W-AC
3. Point from which taken: Subject Looking: West along acquisition
4. Point from which taken: Subject Looking: Atmos Energy Easement (EA 1)
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 Rd, 700 ft. west of IH 35
Date Taken: July 6, 2023 Taken By: Brent Pitts, MAI, AI-GRS, R/W-AC
5. Point from which taken: Subject Looking: East along acquisition
6. Point from which taken: Subject Looking: West along Barthold Rd.
Denton County Area Analysis
Page 2.3
Economic Analysis
Denton County Area Analysis
Denton County is located in north central Texas. It is 878 square miles in size and has a population
density of 1,112 persons per square mile.
Population
Denton County has an estimated 2023 population of 977,184, which represents an average annual
2.5% increase over the 2020 census of 906,422. Denton County added an average of 23,587 residents
per year over the 2020-2023 period, and its annual growth rate exceeded the State of Texas rate of
1.0%.
Looking forward, Denton County's population is projected to increase at a 1.7% annual rate from
2023-2028, equivalent to the addition of an average of 17,223 residents per year. Denton County's
growth rate is expected to exceed that of Texas, which is projected to be 0.8%.
Employment
Total employment in Denton County was estimated at 300,470 jobs at year-end 2022. Between year-
end 2012 and 2022, employment rose by 110,701 jobs, equivalent to a 58.3% increase over the entire
period. There were gains in employment in ten 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 23.8% or 2,612,375 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 4.2% in comparison to a 5.1% rate for Texas. A lower
unemployment rate is a positive indicator.
Recent data shows that the Denton County unemployment rate is 3.6% in comparison to a 4.1% 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.
Population Compound Ann. % Chng
2020 Census 2023 Estimate 2028 Projection
Denton County 906,422 977,184 1,063,301 2.5% 1.7%
Texas 29,145,505 30,065,904 31,310,079 1.0% 0.8%
Source: Claritas
Population Trends
Denton County Area Analysis
Page 2.4
Major employers in Denton County are shown in the following table.
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 6.4% average annual
rate while Texas has grown at a 3.0% rate. Denton County continues to perform better than Texas.
GDP for Denton County rose by 8.2% in 2021 while Texas's GDP rose by 3.9%.
Employment Trends
Total Employment (Year End)Unemployment Rate (Ann. Avg.)
Year Denton County
%
Change Texas
%
Change Denton County Texas
2012 189,769 10,964,215 5.7%6.7%
2013 199,183 5.0% 11,248,559 2.6% 5.4%6.3%
2014 211,482 6.2% 11,672,985 3.8% 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%5.6%
2022 300,470 3.5% 13,576,590 4.2% 3.2%3.9%
Overall Change 2012-2022 110,701 58.3% 2,612,375 23.8%
Avg Unemp. Rate 2012-2022 4.2%5.1%
Unemployment Rate - May 2023 3.6%4.1%
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.
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 Denton 1,076
9 Medical City - Denton 950
10 Sally Beauty Company, Inc.950
Major Employers - Denton County
Source: Denton County Economic Development Partnership
Denton County Area Analysis
Page 2.5
Denton County has a per capita GDP of $40,194, which is 35% less than Texas's GDP of $61,469. This
means that Denton County industries and employers are adding relatively less value to the economy
than their counterparts in Texas.
Income, Education and Age
Denton County is more affluent than Texas. Median household income for Denton County is $102,095,
which is 43.9% greater than the corresponding figure for Texas.
Residents of Denton County have a higher level of educational attainment than those of Texas. An
estimated 46% of Denton County residents are college graduates with four-year degrees, versus 31%
of Texas residents. People in Denton County are older than their Texas counterparts. The median age
for Denton County is 38 years, while the median age for Texas is 36 years.
Gross Domestic Product
Year
($,000s)
Denton County % Change
($,000s)
Texas % Change
2011 20,269,416 1,353,600,400
2012 21,336,311 5.3% 1,421,180,100 5.0%
2013 22,803,464 6.9% 1,484,700,100 4.5%
2014 24,756,191 8.6% 1,529,617,100 3.0%
2015 26,705,082 7.9% 1,605,901,700 5.0%
2016 28,377,505 6.3% 1,619,954,200 0.9%
2017 30,280,682 6.7% 1,659,453,300 2.4%
2018 31,446,463 3.8% 1,728,304,000 4.1%
2019 33,230,943 5.7% 1,779,781,400 3.0%
2020 34,968,093 5.2% 1,747,562,000 -1.8%
2021 37,848,696 8.2% 1,815,063,600 3.9%
Compound % Chg (2011-2021)6.4%3.0%
GDP Per Capita 2021 $40,194 $61,469
Source: U.S. Bureau of Economic Analysis and Moody's Analytics; data released December 2022.
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 2012 dollars.
Median
Denton County $102,095
Texas $70,946
Comparison of Denton County to Texas + 43.9%
Source: Claritas
Median Household Income - 2023
Denton County Area Analysis
Page 2.6
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.
Education & Age - 2023
Source: Claritas
10%
20%
30%
40%
50%
60%
70%
80%
Denton County Texas
46%
31%
Percent College Graduate
10
15
20
25
30
35
40
45
50
Denton County Texas
38 36
Median Age
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.
As shown above, the current population within a 3-mile radius of the subject is 12,062, and the
average household size is 2.7. 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 similar rate.
Median household income is $83,366, 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
Property Analysis
Parcel 074-1A WWE Page 2.11
Property Analysis
Aerial – Subject Property
Subject is outlined in red.
Property Analysis
Parcel 074-1A WWE Page 2.12
Location
The property is located along the north side of Barthold Road, approximately 700 feet west of IH 35, in
the northern portion of the City of Denton.
Land Area
The following table summarizes the size of the subject property per the provided survey.
Land Area Summary
Tax ID SF Acres
315333 328,442 7.5400
Source: Public Records
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 there are not any unusual drainage issues that would affect the development
of the subject.
Property Analysis
Parcel 074-1A WWE Page 2.13
Flood Map
Property Analysis
Parcel 074-1A WWE Page 2.14
Flood Hazard Status
The following table provides flood hazard information.
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 our inspection, we did
not observe any obvious signs of contamination on or near the subject. However, environmental
issues are beyond our scope of expertise. It is assumed that the property is not adversely affected by
environmental hazards.
Ground Stability
A soils report was not provided for our review. Based on our inspection of the subject and observation
of development on nearby sites, there are no apparent ground stability problems. However, we are
not experts in soils analysis. We assume that 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 E/W
Condition Average
Traffic Levels Low
Signals/Traffic Control Stop sign
Access/Curb Cuts 1
Visibility Average
Property Analysis
Parcel 074-1A WWE Page 2.15
Utilities
The availability of utilities to the subject is summarized in the following table.
Utilities
Service Provider
Water City
Sewer City
Electricity Oncor
Natural Gas Atmos
Local Phone AT&T
Zoning
The subject is zoned GO, General Office, by City of Denton. The GO zone is intended to provide for
office, industrial, and commercial uses. The following table summarizes our understanding and
interpretation of the zoning requirements that affect 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. It
appears that the property conforms with zoning requirements.
Property Analysis
Parcel 074-1A WWE Page 2.16
Other Land Use Regulations
We are not aware of any other land use regulations that would affect the property.
Easements, Encroachments and Restrictions
We were not provided a current title report to review. We are not aware of any other adverse
easements, encroachments, or restrictions that would adversely affect value. Our valuation assumes
no adverse impacts from easements, encroachments, or restrictions, and further assumes that the
subject has clear and marketable title.
Conclusion of Site Analysis
Overall, the physical characteristics of the site and the availability of utilities result in functional utility
suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include
office, industrial, and commercial uses. We are not aware of any other particular restrictions on
development.
Property Analysis
Parcel 074-1A WWE Page 2.17
Real Estate Taxes
The subject property is located in the City of Denton, Denton County, Texas. Real estate taxes in this
state and jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. Real
estate tax assessments are administered by the Denton County Appraisal District. Taxable values are
based on a current conversion rate of 100% of assessor’s estimate of market value. The real estate
taxes for an individual property may be estimated by dividing the assessed value of a property by
$100, then multiplying the estimate by the aggregate tax rate of all applicable taxation jurisdictions.
Real estate taxes and assessments for the current tax year are shown in the following table.
Taxes and Assessments - 2023
Assessed Value Taxes and Assessments
Tax ID Land Improvements Total Tax Rate
Ad Valorem
Taxes Total
315333 $950,000 $0 $950,000 2.153325% $20,457 $20,457
The assessment per square foot above is based on the size reported by the Denton County Appraisal
District. Taxes are based on the 2023 assessed values tax rates including city, school and county taxing
agencies. The 2023 tax amount for the subject property is $20,457 based on a 2023 assessed value of
$950,000 and an overall tax rate of $2.177000 per $100 of assessed value. Based on the concluded
market value of the subject, the assessed value appears reasonable.
Form ROW-A-5 (Rev. 08/11)
Page PVS - 3.0
PROPERTY VALUATION SUMMARY
Whole: Part to be Acquired: Remainder After:
HIGHEST AND BEST USE ANALYSIS: Page 3.1
VALUATION APPROACHES
Cost Approach .................................................................. N/A
Sales Comparison Approach ............................................. $1,313,768
Income Approach ............................................................. N/A
Reconciliation of Approaches to Value: ......................... $1,313,768
Contributory Value of Improvements (Itemized)
Contributory Value of Primary and Accessory Improvements -$
Site Improvements
Contributory Value of Site Improvements -$ Contributory Value of All Improvements -$
Land Value ......... 328,442 square feet @ $4.00 per square foot =…………………………………$1,313,768
Reconciled Final Value .................................................................................................. $1,313,768
Each approach developed follows this page and is sequenced as shown below. Land Value,
Page 3.11
Cost Approach,
Page 3.14
Sales Comparison Approach,
Page 3.15
Income Approach,
Page 3.16
Highest and Best Use
Page SCA - 3.1
Highest and Best Use
Process
Before a property can be valued, an opinion of highest and best use must be developed for the subject
site, both as vacant, and as improved. 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.
Highest and Best Use “As Though Vacant” - Whole Property
Legally Permissible:
The subject property is zoned GO by the City of Denton. This district is intended to provide office,
industrial, and commercial uses. There are no known deed restrictions on the subject property. This
zoning district does not adversely affect the development potential of the site. A variety of
commercial, industrial, and office uses are legally permissible on the property, and a copy of the
zoning ordinance is retained on file with the appraiser.
Physically Possible:
The whole property is 7.5400 acres or 328,442 square feet in size and has an rectangular
configuration. It is generally level and at street grade. The site has frontage along Barthold Road.
Overall, the site has good access and exposure, and all public utilities are available. The property is
located in Flood Zone X , Outside of 500-year floodplain. The subject is of sufficient size and
configuration for various forms of development. The site is not physically restricted to any particular
use.
Financially Feasible:
Based on our analysis of the market, there is currently adequate demand for commercial use in the
subject’s area. It appears that 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, it is our opinion that office and industrial,
developed to the normal market density level permitted by zoning, is the maximally productive use of
the property.
Highest and Best Use “As Improved” – Whole Property
The subject is vacant land and therefore a Highest and Best Use “As Improved” is not necessary.
Most Probable Buyer
Taking into account the functional utility of the site and area development trends, the probable buyer
is a local investor.
Highest and Best Use
Page SCA - 3.2
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 Applicability to Subject Use in Assignment
Cost Approach Not Applicable Not Utilized
Sales Comparison Approach Applicable Utilized
Income Capitalization Approach Not Applicable Not Utilized
Sales Comparison Approach - Land
Page SCA - 3.3
Sales Comparison Approach - Land
To develop an opinion of the subject’s land value, as if vacant and available to be developed to its highest
and best use, we utilize the sales comparison approach. This approach develops an indication of value by
researching, verifying, and analyzing sales of similar properties.
Our sales research focused on transactions within the following parameters:
• Location: Denton and Surrounding Counties
• Size: 10.00-100.00 acres
• Use: Vacant land
• Transaction Date: January 2017+
For this analysis, we use price per square foot as the appropriate unit of comparison because market
participants typically compare sale prices and property values on this basis. The most relevant sales are
summarized on Page 3.11.
Sales Comparison Approach - Land
Page SCA - 3.4
Comparable Land Sales Map
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.5
Sale 1 Land - Sanger, TX Sale 2 Land - Denton, TX
Sale 3
IH-35W Land
Sale 4
50 acres in Argyle
Sale 5 60.2 acres on Keller Haslet Rd
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.6
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 074-1A WWE Highway: IH 35
County: Denton ROW CSJ: N/A
Land Sale: 1 Improved Sale Rental Data
Grantor/Lessor: PAAGE, LTD., and Randall Smith Grantee/Lessee: All in Properties, LLC
Date: November 10, 2021 Recording Information: 2021-211206
Address: East side of IH-35, south of Lois Rd. E. Zip Code: 76266
Legal Description: 39.63 acres in the R Beebe Survey, Abstract No. 0029A
Confirmed Price: $5,086,065 Verified with: Confirmed-Seller: Brian Kohlwes (402)
404-2261
Terms and Conditions of Sale: Fee Simple; Cash to seller
Rental Data: N/A
Land Size: 39.6300 Acres; 1,726,283 Square Feet Unit Price as Vacant: $2.95 per square foot
Type Street: 1 way, 2 lanes Utilities All Available
Improvement(s) Description: N/A
Improvement(s) Size: N/A (GBA) N/A (NRA) Unit Price as Improved: N/A
Condition and Functional Design: N/A
Current Use: Vacant Land Highest & Best Use: Commercial
Date of Inspection: July 6, 2023 Zoning: I-1; Industrial District Flood Plain: Zone X
Additional Information: Property is located east side of IH 35. This tract of land was purchased for future
commercial development.
Appraiser: Brent Pitts, MAI, AI-GRS, R/W-AC Date: August 1, 2023
(Typed, not signed)
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.7
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 074-1A WWE Highway: IH 35
County: Denton ROW CSJ: N/A
Land Sale: 2 Improved Sale Rental Data
Grantor/Lessor: Phase 18 Investments, LP Grantee/Lessee: CCS Denton Devco, LLC
Date: June 11, 2021 Recording Information: 2021-106106
Address: West side of IH-35, north of Barthold Rd. Zip Code: 76240
Legal Description: Lot 1, Block A, I-35 Warehouse Addition, Denton, Denton County
Confirmed Price: $3,307,858 Verified with: Confirmed-Seller Broker: Randall
Schwimmer (214) 433-6408
Terms and Conditions of Sale: Fee Simple; Cash to seller
Rental Data: N/A
Land Size: 23.6170 Acres; 1,028,757 Square Feet Unit Price as Vacant: $3.22 per square foot
Type Street: 1 way, 1 lane Utilities All Available
Improvement(s) Description: N/A
Improvement(s) Size: N/A (GBA) N/A (NRA) Unit Price as Improved: N/A
Condition and Functional Design: N/A
Current Use: Vacant Land Highest & Best Use: Commercial
Date of Inspection: July 6, 2023 Zoning: GO; General Office Flood Plain: Zone X
Additional Information: 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.
Appraiser: Brent Pitts, MAI, AI-GRS, R/W-AC Date: August 1, 2023
(Typed, not signed)
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.8
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 074-1A WWE Highway: IH 35
County: Denton ROW CSJ: N/A
Land Sale: 3 Improved Sale Rental Data
Grantor/Lessor: James F Mason Trustee c/o Mason
Properties
Grantee/Lessee: B BP Chill Denton LLC
Date: April 13, 2022 Recording Information: 2022-55755
Address: 2298 Interstate 35 Zip Code: 76207
Legal Description: A0056A O. Brewster, TR 48
Confirmed Price: $1,910,215 Verified with: Secondary Verification: –
Terms and Conditions of Sale: Fee Simple; Cash to seller
Rental Data: N/A
Land Size: 19.5000 Acres; 849,420 Square Feet Unit Price as Vacant: $2.25 per square foot
Type Street: 1-way, 2 lanes Utilities: In Vicinity
Improvement(s) Description: N/A
Improvement(s) Size: N/A (GBA) N/A (NRA) Unit Price as Improved: N/A
Condition and Functional Design: N/A
Current Use: Land Highest & Best Use: Commercial
Date of Inspection: July 6, 2023 Zoning: Heavy Industrial;
Heavy Industrial
Flood Plain: Zone A
Additional Information: Property is only accessible via Corbin Road.
Appraiser: Brent Pitts, MAI, AI-GRS, R/W-AC Date: August 1, 2023
(Typed, not signed)
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.9
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 074-1A WWE Highway: IH 35
County: Denton ROW CSJ: N/A
Land Sale: 4 Improved Sale Rental Data
Grantor/Lessor: Hugh Z Pruett Grantee/Lessee: SERIES VII, A SERIES OF HENRY
PROPERTY DEVELOPMENT LLC
Date: January 17, 2023 Recording Information:
Address: Northeast corner of IH-35W and Old Justin Road; also NWC of C. Taylor Road and
Old Justin Road
Zip Code: 76226
Legal Description: Lot 1, Block 1, Salmon Estates /Tax #339705
Confirmed Price: $8,713,693 Verified with: Confirmed-Buyer Broker: Everette
Newland
Terms and Conditions of Sale: Fee Simple; Cash to seller
Rental Data: N/A
Land Size: 46.7100 Acres; 2,034,688 Square Feet Unit Price as Vacant: $4.28 per square foot
Type Street: 2 way, 1 lane each way Utilities In Vicinity
Improvement(s) Description: N/A
Improvement(s) Size: N/A (GBA) N/A (NRA) Unit Price as Improved: N/A
Condition and Functional Design: N/A
Current Use: Land Highest & Best Use: Commercial
Date of Inspection: July 6, 2023 Zoning: CF; Community
Facilities
Flood Plain: Zone X
Additional Information: The property does not have access from IH 35W. Gravel pad only (not gas pad)
located at northeast corner of site. The property does not have access from IH 35W.
Appraiser: Brent Pitts, MAI, AI-GRS, R/W-AC Date: August 1, 2023
(Typed, not signed)
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.10
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 074-1A WWE Highway: IH 35
County: Denton ROW CSJ: N/A
Land Sale: 5 Improved Sale Rental Data
Grantor/Lessor: Egelston Marcia Trust Grantee/Lessee: Magnolia Pads Ltd
Date: August 12, 2020 Recording Information: 220197492
Address: 2700 Keller Haslet Rd. Zip Code: 76177
Legal Description: Tax ID 05671450, Tract 1G, Abstract 1898, N S Creed Survey, City of Fort Worth, Tarrant County,
Texas
Confirmed Price: $9,000,000 Verified with: Confirmed-Seller Broker: Robert Phipps
Terms and Conditions of Sale: Fee Simple; Cash to seller
Rental Data: N/A
Land Size: 60.2000 Acres; 2,622,312 Square Feet Unit Price as Vacant: $3.43 per square foot
Type Street: 2 way, 1 lane each way Utilities: Yes
Improvement(s) Description: N/A
Improvement(s) Size: N/A (GBA) N/A (NRA) Unit Price as Improved: N/A
Condition and Functional Design: N/A
Current Use: Land Highest & Best Use: Commercial
Date of Inspection: July 6, 2023 Zoning: K; Heavy Industrial Flood Plain: Zone A
Additional Information: 60.2 acres of commercial land located off Keller Haslet Rd in Fort Worth. Zoned for
heavy industrial use. 60.2 acres of commercial land sold for $9M in August 2020. It is partially located
within the flood zone; however, it is not detrimental to its use as it has been developed with an industrial
property. The property is located just east of Interstate Highway 35 West and southeast of Alliance Airport.
It is located within the Alliance Airport Overlay District.
Appraiser: Brent Pitts, MAI, AI-GRS, R/W-AC Date: August 1, 2023
(Typed, not signed)
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.11
SALES COMPARISON APPROACH Whole: Part to be Acquired: Remainder After:
Land: Improved:
Land Sales Adjustment Grid - Whole
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5
Grantor PAAGE, LTD., and
Randall Smith
Phase 18
Investments, LP
James F Mason
Trustee c/o Mason
Properties
Hugh Z Pruett Egelston Marcia
Trust
Grantee All in Properties,
LLC
CCS Denton Devco,
LLC
B BP Chill Denton
LLC
SERIES VII, A SERIES
OF HENRY
PROPERTY
DEVELOPMENT LLC
Magnolia Pads Ltd
Address N/S Barthold Rd,
700 ft. west of IH
35
East side of IH-35,
south of Lois Rd. E.
West side of IH-35,
north of Barthold
Rd.
2298 Interstate 35 Northeast corner
of IH-35W and Old
Justin Road; also
NWC of C. Taylor
Road and Old
Justin Road
2700 Keller Haslet
Rd.
City Denton Sanger Denton Denton Argyle Fort Worth
County Denton Denton Denton Denton Denton Tarrant
State Texas TX TX TX TX TX
Sale Date Nov-21 Jun-21 Apr-22 Jan-23 Aug-20
Sale Status Closed Closed Recorded Closed Closed
Sale Price $5,086,065 $3,307,858 $1,910,215 $8,713,693 $9,000,000
Effective Sale Price $5,086,065 $3,307,858 $1,910,215 $8,713,693 $9,000,000
Square Feet 328,442 1,726,283 1,028,757 849,420 2,034,688 2,622,312
Acres 7.5400 39.6300 23.6170 19.5000 46.7100 60.2000
Price per Square Foot $2.95 $3.22 $2.25 $4.28 $3.43
Transactional Adjustments
Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple
% Adjustment –––––
Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller Cash to seller
% Adjustment –––––
Conditions of Sale Arm's-length Arm's-length Arm's-length Arm's-length Arm's-Length
% Adjustment –––––
Expenditures Made Immediately After Purchase
$ Adjustment –––––
Market Conditions 7/6/2023 Nov-21 Jun-21 Apr-22 Jan-23 Aug-20
Annual % Adjustment 5%8%10%6%2%14%
Cumulative Adjusted Price $3.18 $3.54 $2.38 $4.37 $3.91
Property Adjustments
Location –––––
Access/Exposure -10%-10%-10%––
Size 15%10%10%15%15%
Shape and Topography –––––
Zoning –––––
Utilities –––––
Net Property Adjustments ($)$0.16 $0.00 $0.00 $0.66 $0.59
Net Property Adjustments (%)5%0%0%15%15%
Final Adjusted Price $3.34 $3.54 $2.38 $5.02 $4.50
Range of Adjusted Prices $2.38 - $5.02
Average $3.76
Indicated Value $4.00
Sales Comparison Approach - Land
Page SCA - 3.12
Analysis and Adjustment of Sales
The sales are compared to the subject and adjusted to account for material differences that affect value.
Adjustments are considered for the following factors, in the sequence shown below.
Adjustment Factor Accounts For Comments
Effective Sale Price Atypical economics of a transaction,
such as demolition cost or
expenditures by buyer at time of
purchase.
All sales are similar, and no
adjustments are applied.
Real Property Rights Fee simple, leased fee, leasehold,
partial interest, etc.
All sales are similar, and no
adjustments are applied.
Financing Terms Seller financing, or assumption of
existing financing, at non-market
terms.
All sales are similar, and no
adjustments are applied.
Conditions of Sale Extraordinary motivation of buyer
or seller, assemblage, forced sale.
All sales are similar, and no
adjustments are applied.
Market Conditions Changes in the economic
environment over time that affect
the appreciation and depreciation
of real estate.
All sales were adjusted upward 5%
annually to account for improving
market conditions.
Location Market or submarket area
influences on sale price;
surrounding land use influences.
All sales are similar, and no
adjustments are applied.
Access/Exposure Convenience to transportation
facilities; ease of site access;
visibility; traffic counts.
Sales 1, 2 and 3 are superior to the
subject with respect to exposure
and are adjusted downward.
Size Inverse relationship that often
exists between parcel size and unit
value.
All of the sales are larger and are
adjusted upward.
Shape and Topography Primary physical factors that affect
the utility of a site for its highest
and best use.
All sales are similar, and no
adjustments are applied.
Zoning Government regulations that affect
the types and intensities of uses
allowable on a site.
All sales are similar, and no
adjustments are applied.
Utilities The presence or lack of utilities can
impact the price and readiness of
development.
All sales are similar, and no
adjustments are applied.
Land Value Conclusion
Page SCA - 3.13
Land Value Conclusion
Prior to adjustments, the sales reflect a range of $2.25 - $4.28 per square foot. After adjustment, the
range is narrowed to $2.38 - $5.02 per square foot, with an average of $3.76 per square foot.
Based on our conversation with the neighboring owner, a portion of the property to the west is under
contract. A net land area of 3,452,110 square feet (79.250 acres) are under contract for a reported
contract price of $182,965.30/acre or $4.20 per square foot. The buyer plans on constructing a
distribution warehouse on this site. The area under contract is outlined in yellow on the aerial map below.
Based on the current contract price, a value at the higher end of the range is considered reasonable. Our
land value conclusion is presented below:
Land Value Conclusion
Indicated Value per Square Foot $4.00
Subject Square Feet 328,442
Indicated Value $1,313,768
Form ROW-A-5 (Rev. 08/11)
Page CA - 3.14
Cost Approach
COST APPROACH Whole: X Part to be acquired:Remainder After:
Improvement Number of sq ft $ per sq ft Cost New Depreciation
Factor Depreciation
Functional
Obsolescenc
e
Value
- $ - - $ - -$ $ -
- $ - - $ - -$ $ -
- $ - - $ - -$ $ -
- $ - - $ - -$ $ -
- $ - - $ - -$ $ -
-$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
Contributory Value of the Accessory Improvements -$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
--$ --$ -$ -$
-$
-$
Estimated Replacement/Reproduction Cost
Contributory Value of the Buildings
Accessory Improvements
Site Improvements
Contributory Value of the Site Improvements
Contributory Value of all Improvements
Estimated Value by Cost Approach
The Cost Approach is not applicable.
Form ROW-A-5 (Rev. 08/11)
Page SCA - 3.15
Sales Comparison Approach – As Improved
Sales Comparison Approach – As Improved
SALES COMPARISON APPROACH Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID Representative Comparable Sales Subject Comp. No. Comp. No.
Comp. No.
Grantor
Grantee
Date of Sale
Unit Price
Relative Location
Financing
Conditions of Sale
Market Conditions
Physical
Indicated Unit Value
$
$
$ Estimated Unit Value $
Estimated Value by Sales Comparison Approach $
The Sales Comparison - Improved is not applicable.
Form ROW-A-5 (Rev. 08/11)
Page IA - 3.16
Income Capitalization Approach
INCOME APPROACH Whole: X Part to be acquired:Remainder After:
Potential Gross Income
Base Rent $-
Reinbursement Income $-
Total Potential Gross Income $-
Vacancy & Collection Loss @ – $
$
Expenses:
$-
$-
$-
$-
$-
$-
$-
$-
Total Expenses $
Net Operating Income $
Income Capitalized @ $
$
$
Effective Gross Income -
-
-
-
Estimated Value by Income Approach -
Plus: Value of Excess Land (if any)
The Income Approach is not applicable.
Income Capitalization Approach
Page - 3.17
Reconciliation of Approaches to Value
The indications of value have been developed for the subject property prior to the acquisition and
they are as follows:
Cost Approach: N/A
Sales Comparison Approach: $1,313,768
Income Approach: N/A
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. A Cost Approach was not developed as the subject property represents vacant
land with limited site improvements.
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 subject is appraised as vacant land and this
approach was developed.
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. The Income Capitalization
Approach is not warranted as the subject represents vacant land.
Applicability of Valuation Approaches
The subject Whole Property is appraised as vacant development land with limited site improvements.
Only the Sales Comparison Approach-land only has been utilized to develop an opinion of market
value.
Based on the analysis of the information contained in this report, the estimated “as is” market value
of the fee simple interest of the subject Whole Property is as follows:
$1,313,768
Form ROW-A-5 (Rev. 08/11)
Page - 4.0
PART TO BE ACQUIRED
HIGHEST AND BEST USE ANALYSIS: Page 4.4
-$
-$ -$ -$ $0Easement23,835 square feet @ $4.00 x 50% =$47,670Total Land $47,670$47,670
Contributory Value of Improvements (Itemized)
Contributory Value of Primary and Accessory Improvements
Site ImprovementsTotal Adjustments
Total AdjustmentsIndicated ValueContributory Value of Site Improvements
Total Contributory Value of Improvements
TOTAL VALUE AS A UNIT
REMAINDER BEFORE THE ACQUISITION
-$
-$ -$
-$ $0Easement23,835 square feet @ $4.00 x 50% =$47,670Fee Part 304,607 square feet @ $4.00 =$1,218,428Total Land $1,266,098$1,266,098
Contributory Value of Improvements (Itemized)
Contributory Value of the Accessory Improvements
Contributory Value of the Buildings
Contributory Value of Primary and Accessory Improvements
Site Improvements
TOTAL VALUE AS A UNIT
Contributory Value of Site Improvements
Total Contributory Value of Improvements
Analysis of the Part Acquired
Page - 4.1
Analysis of the Part Acquired
The Part Acquired may be valued in two different manners. If the Part Acquired can be considered an
individual economic entity, then it is valued as a separate parcel. This separate valuation may require
that all three approaches to value be completed with a new set of market data considered. However,
if the Part Acquired is not large enough to be considered an economic unit on its own, it is appraised
in conjunction with the parent tract or a portion of the parent tract that results in the highest return
to the subject property.
Depending on the size of the hypothetical attachment, a new data set may also be required. If it is
determined that it is to be used in conjunction with the parent tract the value of the part to be
acquired would not be independent and the part to be acquired represents the prorated value from
the Whole Property. The subject is an easement acquisition containing an area of 0.5472 acres or
23,835 square feet that is not considered an economic unit primarily based on its shape and size.
Therefore, it is appraised as though used in conjunction with the remainder to form an economic unit
of 7.5400 acres or 328,442 square feet (the size of the subject Larger Parcel).
Property Description - Part Acquired
The easement is an area of 0.5472 acres or 23,835 square feet of land along the southern boundary of
the subject site. There are minor site improvements including concrete paving and curbing that will be
replaced by the City of Denton. There are also site improvements that are part of a gas well site that
appears to be mostly within the previous TxDOT ROW acquisition and will likely be removed. An aerial
exhibit and survey of the Part Acquired follows.
Analysis of the Part Acquired
Page - 4.2
Aerial Photograph Showing Part Acquired
The boundaries of the part acquired are approximated in yellow.
Part Acquired Survey - Parcel 074-1A WWE Water & Wastewater Easement
Page - 4.3
Part Acquired Survey - Parcel 074-1A WWE Water & Wastewater Easement
Part Acquired Survey - Parcel 074-1A WWE Water & Wastewater Easement
Page - 4.4
Part Acquired Survey - Parcel 074-1A WWE Water & Wastewater Easement
Highest and Best Use - Part Acquired
Page - 4.5
Part to Be Acquired
The proposed acquisition consists of an easement estate consisting of 23,835 square feet (0.5472
acre). The easement acquisition will be located along the subject’s southern property line along
Barthold Road.
This shape and size is based on our review of the field notes and sketch for the proposed fee simple
acquisition. These sizes will be utilized in the calculations herein and are considered to be accurate.
Economic Unit
The acquisition is not an appropriate configuration to be considered an economic unit on its own;
therefore, it is appraised as if used in conjunction with the remainder to form an economic unit that
yields the highest net return to the land. In order to take full advantage of the physical characteristics
of the subject property, the part to be acquired is used in conjunction with the Remainder After (the
size of the Whole Property). The economic unit meets all the tests of highest and best use of the
subject property as discussed below.
Highest and Best Use - Part Acquired
Based on the size and shape of the Part Acquired, the acquisition does not support an individual
economic unit. Therefore, the highest and best use of the Part Acquired is to use in conjunction with
the remainder and hold for development when demand warrants. Please refer to the Highest and
Best Use analysis of the Whole Property herein for a discussion of Highest and Best Use for the
subject.
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 value of the Part
Acquired is estimated at $4.00 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.
Highest and Best Use - Part Acquired
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 & 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 $47,670.
23,835 square feet X 50% X $4.00 per square foot = $47,670
Land Value Summary
As previously mentioned, the highest and best use of the part acquired is to be assembled with the
whole property. Recognizing the rights to be acquired, the easement is valued at 50% of the fee
simple estate.
(B) Value of the Part Acquired $47,670
Highest and Best Use - Part Acquired
Page - 4.7
Remainder Before
The indicated value of the remainder before the acquisition is derived by deducting the estimated value
of the acquisition from the value of the whole property. The calculations are as follows:
(A) Value of the Whole Property $1,313,768
By Sales Comparison Approach $1,313,768
By Cost Approach N/A
By Income Capitalization Approach N/A
(B) Value of the Part Acquired $47,670
(C) Value of the Remainder Before $1,266,098
Form ROW-A-5 (Rev. 08/11)
Page PVS – 5.0
PROPERTY VALUATION SUMMARY
Whole: Part to be Acquired: Remainder After:
HIGHEST AND BEST USE ANALYSIS: Page 5.3
VALUATION APPROACHES
Cost Approach .................................................................. N/A
Sales Comparison Approach- land only ............................ $1,266,098
Income Approach ............................................................. N/A
Reconciliation of Approaches to Value: ......................... $1,266,098
Contributory Value of Improvements (Itemized)
Contributory Value of Primary and Accessory Improvements -$
Site Improvements
Contributory Value of Site Improvements -$ Contributory Value of All Improvements -$
Land Value Remainder - 304,607 square foot @ $4.00 per square foot=………………………………$1,218,428
Land Value Remainder Easement - 23,835 square foot @ $4.00 per square foot X 50%=………$47,670
Reconciled Final Value ..................................................................................................$1,266,098
In reconciling the unit values, rounding is often necessary. The totals of the individual sites are derived
from their unit values. With the various calculations found within this analysis, often times the
calculations result in multiple decimals and rounding is required. All efforts are made to round to the
nearest $1.
Land Value, Page 5.4 Cost Approach, Page 5.6 Sales Comparison Approach, Page 5.7 Income Approach, Page 5.8
Analysis of the Remainder After
Page PVS – 5.1
Analysis of the Remainder After
The value of the Remainder After is appraised as a new appraisal on the remainder property and takes
into consideration the effect the subject acquisition has on the remainder. This estimate is based
upon a new site analysis, highest and best use analysis, as well as the employment of the three
approaches to value, where applicable.
Damages or enhancements to the remainder are calculated by subtracting the value of the Remainder
After from the value of the Remainder Before the acquisition. If the calculation is positive, damages
exist. However, if the figure is negative enhancements are present. If an enhancement exists, it is
noted; however, enhancements are not deducted from the total compensation.
Property Description - Remainder After
Following the acquisition, the remainder after consists of 328,442 square feet or 7.5400 acres with
0.5472 acres or 23,835 square feet encumbered by the proposed easement. The sizes and shapes of
the Remainder will have utility for independent development. It has all of the physical characteristics
of the whole property and can be developed independently. Therefore, the highest and best use is
unchanged.
The boundaries of the Remainder After are approximated on the aerial photograph on the following
page.
Aerial - Remainder
Page PVS – 5.2
Aerial - Remainder
The boundaries of the remainder are approximated in red and the yellow outline represents the
easement area.
Aerial - Remainder
Page PVS – 5.3
HIGHEST AND BEST USE - REMAINDER AFTER – AS IF VACANT
Since the Remainder After is an economic unit similar to the Whole Property, the highest and best use
of the Remainder After and the subject Whole Property is the same.
HIGHEST AND BEST USE AS IMPROVED (REMAINDER)
The subject property is appraised as vacant land and a highest and best-use “as improved” is not
warranted.
Most Probable Buyer
Taking into account the functional utility of the site and area development trends, the probable buyer
is a local investor.
Land Value – Remainder After
The same set of sales used for the Whole Property is used to estimate the value of the Remainder
After. The analysis of the Remainder After is the same as the analysis of the Whole Property. The
Remainder After consists of a total of 7.5400 acres or 328,442 square feet. An adjustment grid for
Remainder is located on the following page.
Form ROW-A-5 (Rev. 08/11)
Page SCA – 5.4
Land Value – Remainder
SALES COMPARISON APPROACH Whole: Part to be Acquired: Remainder After:
Land: Improved:
Land Sales Adjustment Grid - Remainder
Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5
Grantor PAAGE, LTD., and
Randall Smith
Phase 18
Investments, LP
James F Mason
Trustee c/o Mason
Properties
Hugh Z Pruett Egelston Marcia
Trust
Grantee All in Properties,
LLC
CCS Denton Devco,
LLC
B BP Chill Denton
LLC
SERIES VII, A SERIES
OF HENRY
PROPERTY
DEVELOPMENT LLC
Magnolia Pads Ltd
Address N/S Barthold Rd,
700 ft. west of IH
35
East side of IH-35,
south of Lois Rd. E.
West side of IH-35,
north of Barthold
Rd.
2298 Interstate 35 Northeast corner
of IH-35W and Old
Justin Road; also
NWC of C. Taylor
Road and Old
Justin Road
2700 Keller Haslet
Rd.
City Denton Sanger Denton Denton Argyle Fort Worth
County Denton Denton Denton Denton Denton TarrantStateTexasTXTXTXTXTXSale Date Nov-21 Jun-21 Apr-22 Jan-23 Aug-20Sale Status Closed Closed Recorded Closed ClosedSale Price $5,086,065 $3,307,858 $1,910,215 $8,713,693 $9,000,000Effective Sale Price $5,086,065 $3,307,858 $1,910,215 $8,713,693 $9,000,000Square Feet 328,442 1,726,283 1,028,757 849,420 2,034,688 2,622,312
Acres 7.5400 39.6300 23.6170 19.5000 46.7100 60.2000
Price per Square Foot $2.95 $3.22 $2.25 $4.28 $3.43
Transactional Adjustments
Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple
% Adjustment –––––
Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller Cash to seller
% Adjustment –––––
Conditions of Sale Arm's-length Arm's-length Arm's-length Arm's-length Arm's-Length
% Adjustment –––––
Expenditures Made Immediately After Purchase
$ Adjustment –––––
Market Conditions 7/6/2023 Nov-21 Jun-21 Apr-22 Jan-23 Aug-20
Annual % Adjustment 5%8%10%6%2%14%
Cumulative Adjusted Price $3.18 $3.54 $2.38 $4.37 $3.91
Property Adjustments
Location –––––
Access/Exposure -10%-10%-10%––
Size 15%10%10%15%15%
Shape and Topography –––––
Zoning –––––
Utilities –––––
Net Property Adjustments ($)$0.16 $0.00 $0.00 $0.66 $0.59
Net Property Adjustments (%)5%0%0%15%15%
Final Adjusted Price $3.34 $3.54 $2.38 $5.02 $4.50
Range of Adjusted Prices $2.38 - $5.02
Average $3.76
Indicated Value $4.00
Land Value – Remainder
Page SCA – 5.5
Explanation of Adjustments
The same set of sales used to estimate the value for the whole property are utilized for the
Remainder. Please refer to Pages 3.10 – 3.11 for explanation of adjustments and descriptions of the
land sales. All adjustments are the same. The unit value is estimated as follows:
(D) Value of the Remainder After the Acquistion $1,266,098
By Sales Comparison Approach $1,266,098
$4.00 x 304,607 SF x 100%=$1,218,428
$4.00 x 23,835 SF x 50%=$47,670
By Cost Approach N/A
By Income Capitalization Approach N/A
Reconciliation $1,266,098
Form ROW-A-5 (Rev. 08/11)
Page CA – 5.6
Cost Approach – Remainder After
COST APPROACH Whole: Part to be acquired:Remainder After: X
Improvement Number of sq ft $ per sq ft Cost New Depreciation
Factor Depreciation Functional
Obsolescence Value
- $ - - $ - -$ $ - - $ - - $ - -$ $ - - $ - - $ - -$ $ - -$
- -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ Contributory Value of the Accessory Improvements -$ - -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ - -$ --$ -$ -$ -$ -$ ==
Estimated Replacement/Reproduction Cost
Contributory Value of the Buildings
Estimated Value by Cost Approach
Site Improvements
Contributory Value of the Site Improvements
Accessory Improvements
The Cost Approach is not applicable.
Form ROW-A-5 (Rev. 08/11)
Page SCA – 5.7
Sales Comparison Approach -Improved Remainder
SALES COMPARISON APPROACH Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID Representative Comparable Sales Subject Comp. No. Comp. No.
Comp. No.
Grantor
Grantee
Date of Sale
Unit Price
Relative Location
Financing
Conditions of Sale
Market Conditions
Physical
Indicated Unit Value
$
$
$
Estimated Unit Value $
Estimated Value by Sales Comparison Approach $
The Sales Comparison Approach – Improved is not applicable.
Form ROW-A-5 (Rev. 08/11)
Page IA – 5.8
Income Approach – Remainder After
INCOME APPROACH Whole: Part to be acquired:Remainder After: X
Potential Gross Income
Base Rent $-
Reinbursement Income $-
Total Potential Gross Income $-
Vacancy & Collection Loss @ 0% $
$
Expenses:
$-
$-
$-
$-
$-
$-
$-
$-
Total Expenses $
Net Operating Income $
Income Capitalized @ $
$
$
Effective Gross Income -
-
-
-
Estimated Value by Income Approach -
Plus: Value of Excess Land (if any)
The Income Approach is not applicable.
Reconciliation
Page – 5.9
Reconciliation
The indications of value have been developed for the subject property following the acquisition and
they are as follows:
Cost Approach: N/A
Sales Comparison Approach: $1,266,098
Income Approach: N/A
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 Cost Approach is not an applicable approach to value vacant tracts of land
similar to the subject and was not utilized in our analysis.
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. The Income Capitalization
Approach is not an applicable approach to value vacant tracts of land similar to the subject and was
not utilized in our analysis.
Applicability of Valuation Approaches - Remainder After
The subject Remainder After is appraised as vacant land. Therefore, we have utilized the Sales
Comparison Approach only in our estimate of value for the Remainder After. Based on the analysis of
the information contained in this report, the estimated “as is” market value of the fee simple interest
of the subject Remainder After (land only) is as follows:
$1,266,098
Form ROW-A-5 (Rev. 08/11)
Page 6.0
Summary of Compensation
WHOLE PROPERTY:
The market value of the whole property is $1,313,768
PART TO BE ACQUIRED:
REMAINING PROPERTY:
The value of the remainder immediately before the taking is $1,266,098
$1,266,098
NET DAMAGES OR ENHANCEMENTS, if any $0
ACCESS:
$0
COST TO CURE:$0
TOTAL COMPENSATION $47,670
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
EXPLANATION OF ENHANCEMENTS (if any):
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
$47,670
Considering the uses to which the part taken is to be subjected to, the
market value of the remainder immediately after the acquisition is
Damages or Enhancements
Damages or enhancements are calculated as the difference between the value of the remainder
immediately before the taking less the market value of the remainder immediately after the
acquisition. In regards to the subject property, there no damages present as a result of the proposed
easement acquisition.
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 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. 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.
Assumptions and Limiting Conditions
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.
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
Assumptions and Limiting Conditions
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 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 the Client, its 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. Integra Realty Resources – Fort Worth , Integra Realty Resources, Inc., Integra
Strategic Ventures, Inc. and/or any of 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. 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. Integra Realty Resources – Fort Worth is not a building or environmental inspector. Integra
Fort Worth does 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. It is expressly acknowledged that in any action which may be brought against any of the
Integra Parties, arising out of, relating to, or in any way pertaining to this engagement, the
appraisal reports, and/or any other 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 acknowledged
that the collective liability of the Integra Parties in any such action shall not exceed the fees
paid for the preparation of the appraisal report unless the appraisal was fraudulent or
Assumptions and Limiting Conditions
prepared with intentional misconduct. Finally, it is acknowledged that the fees charged herein
are in reliance upon the foregoing limitations of liability.
25. Integra Realty Resources – Fort Worth , an independently owned and operated company, 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 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.
Assumptions and Limiting Conditions
28. The appraisal is also subject to the following:
Extraordinary Assumptions and Hypothetical Conditions
1.We observed a Atmos Energy easement that appears to be located partially on the subject site. Based on our
research, TxDOT has acquired the property in a prior transaction. We have appraised the subject as though the
Atmos Energy easement has been extinguished.
1.N/A
The use of any extraordinary assumption or hypothetical condition may have affected the assignment results.
The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition,
directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the
effective date of the assignment results, but is used for the purpose of analysis.
The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an
assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which,
if found to be false, could alter the appraiser’s opinions or conclusions.
Addenda
Parcel
Addendum A
Appraiser Qualifications
About IRR
Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling,
and advisory services. Routinely ranked among leading property valuation and consulting firms, we are
now the largest independent firm in our industry in the United States, with local offices coast to coast
and in the Caribbean.
IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25
years, on average, of commercial real estate experience in their local markets. This experience, coupled
with our understanding of how national trends affect the local markets, empowers our clients with the
unique knowledge, access, and historical perspective they need to make the most informed decisions.
Many of the nation's top financial institutions, developers, corporations, law firms, and government
agencies rely on our professional real estate opinions to best understand the value, use, and feasibility
of real estate in their market.
Local Expertise...Nationally!
irr.com
Addenda
Parcel 074-1A WWE
Addendum B
Property Information
Addenda
Addendum C
Survey