HomeMy WebLinkAboutAppraisal 05.19.23
APPRAISAL REPORT
ACQUISITION OF 0.2086 ACRES
108 and 112 North Locust Street
Denton, Texas 76201
Report Date: May 19, 2023
Prepared For
Captoria Brown
Senior Real Estate Specialist
City of Denton - Real Estate Division
401 N. Elm Street
Denton, TX 76201
Prepared By
Pyles Whatley
16910 Dallas Parkway, Suite 100
Dallas, TX 75248
May 19, 2023
Captoria Brown
Senior Real Estate Specialist
City of Denton - Real Estate Division
401 N. Elm Street
Denton, TX 76201
RE: Appraisal Report
Acquisition of 0.2086 acres
108 and 112 North Locust Street, Denton, Texas 76201
Pyles Whatley File No: 23-0288
Ms. Brown:
Pyles Whatley submits the appraisal that satisfies the agreed upon scope of work with City of Denton - Real
Estate Division.
The subject property, located at 108 and 112 North Locust Street, Denton, Texas, is two contiguous tracts of
retail land located within the Denton Square.
We did not estimate any costs for additional site preparation, and our current findings indicate that there is
not any excess land.
The purpose of this appraisal is to develop an opinion of the As-Is Market Value (Fee Simple Interest). The
following table conveys the final opinion of value that is developed in this appraisal:
This report conforms to the current Uniform Standards of Professional Appraisal Practice (USPAP), and the
appraisal guidelines of City of Denton - Real Estate Division.
EXTRAORDINARY ASSUMPTIONS
No Extraordinary Assumptions were made for this assignment.
HYPOTHETICAL CONDITIONS
No Hypothetical Conditions were made for this assignment.
If there are any specific questions or concerns regarding the attached appraisal report, or if Pyles Whatley can
be of additional assistance, please contact the individuals listed below.
Company_Name Company_JobNumber
Respectfully Submitted,
PYLES WHATLEY
Richard McBride
Partner
Certified General Real Estate Appraiser
Texas License No.1380335 G
Expiration Date 6/30/2024
2143405880
rich@pyleswhatley.com
Ed Doorley
Senior Appraiser
Certified General Real Estate Appraiser
Texas License No. 1380698 G
Expiration Date 4/30/2024
2143405880
Ed@pyleswhatley.com
TABLE OF CONTENTS
PYLES WHATLEY 23-0288
LETTER OF TRANSMITTAL
INTRODUCTION
Executive Summary _______________________________________________________________________________________________________ 1
Identification of Appraisal Assignment ___________________________________________________________________________________ 2
Scope of Work ____________________________________________________________________________________________________________ 4
Extraordinary Assumptions and Hypothetical Conditions ________________________________________________________________ 5
Exposure and Marketing Time ____________________________________________________________________________________________ 7
DESCRIPTIONS & EXHIBITS
Regional Area Analysis ____________________________________________________________________________________________________ 9
Market Analysis _________________________________________________________________________________________________________ 11
Local Area Analysis ______________________________________________________________________________________________________ 16
Subject Property Photographs __________________________________________________________________________________________ 26
Site Description _________________________________________________________________________________________________________ 27
Zoning ___________________________________________________________________________________________________________________ 29
Exhibits __________________________________________________________________________________________________________________ 30
Highest & Best Use Analysis ____________________________________________________________________________________________ 33
As Vacant Analysis ___________________________________________________________________________________________________ 33
VALUATION METHODS
Site Valuation ___________________________________________________________________________________________________________ 36
Reconciliation of Value Conclusions ____________________________________________________________________________________ 44
Certification _____________________________________________________________________________________________________________ 45
ADDENDA
Engagement Letter
Qualifications of Appraisers & Appraisers Licenses
EXECUTIVE SUMMARY
PYLES WHATLEY 23-0288 1
SCOPE OF WORK
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PROPERTY IDENTIFICATION
The subject property, located at 108 and 112 North Locust Street, Denton, Texas, is two contiguous tracts of
retail land located within the Denton Square.
We did not estimate any costs for additional site preparation, and our current findings indicate that there is
not any excess land.
The assessor parcel numbers are: R32714 and R32716.
LEGAL DESCRIPTION
The subject is legally described as:
Lots 3, 4 and 5, Block 7, within the Original Town of Denton, an addition to the City of Denton, Texas.
CLIENT IDENTIFICATION
The client of this specific assignment is City of Denton - Real Estate Division.
INTENDED USE & INTENDED USERS
The intended use of this appraisal is to assist the client in making internal business decisions related to this
asset. The City of Denton - Real Estate Division or assigns are the only intended users of this report.
RELIANCE LANGUAGE
The intended use and users of our report are specifically identified in our report as agreed upon in our contract
for services and/or reliance language found in the report. No other use or user of the report is permitted by
any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended
users does not extend reliance to any other party and Pyles Whatley will not be responsible for unauthorized
use of the report, its conclusions or contents used partially or in its entirety.
PURPOSE
The purpose of this appraisal is to develop an opinion of the As-Is Market Value (Fee Simple Interest).
PERSONAL PROPERTY & BUSINESS INTANGIBLE
There is no personal property (FF&E) included in this valuation.
PROPERTY AND SALE AND LISTING HISTORY
Listing History
A cancelled listing was found for the subject property. The subject was listed for sale on November 6, 2022
for a price of $2,200,000 or $242.02 per square foot. The subject was listed for only three days before being
cancelled. Several calls were placed with the listing broker requesting further information about the property,
but our calls were not returned. The property was listed by Shirley Will with Will Realty. Based on market
participant input, our own research, and our market value conclusion reported herein, we do not perceive that
the list price is reasonably supported by the market and have therefore not attributed any emphasis to this
listing as a market indication of value.
SCOPE OF WORK (CONTINUED)
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Current Owner
The subject title is currently recorded in the name of Piper Mall, LLC. According to public records, the property
transferred from Leo H. and Shirley J. Will to Piper Mall, LLC on February 28, 2018 as recorded in the Denton
County Deed Records, Document Number 2018-23951. Piper Mall, LLC appears to be a business entity of Leo
H. and Shirley J. Will to Piper Mall, LLC.
Three-Year Sales History
We are not aware of any sale transactions or recent contracts for sale that have occurred within the last three
years. This is based on our search utilizing Loopnet, CoStar, public records, MLS and various other sources.
DEFINITION OF MARKET VALUE
The most probable price which a property should bring in a competitive and open market under all conditions
requisite to a fair sale, the buyer and seller each acting prudently, knowledgeably, and assuming that the price
is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
1. Buyer and seller are typically motivated;
2. Both parties are well informed or well advised, and acting in what they consider their own best interests;
3. A reasonable time is allowed for exposure in the open market;
4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable
thereto; and
5. The price represents the normal consideration for the property sold unaffected by special or creative
financing or sales concessions granted by anyone associated with the sale.1
PROPERTY RIGHTS APPRAISED
The property rights appraised constitute the fee simple interest.
Fee Simple Interest
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.2
VALUE SCENARIOS
As-Is Market Value
The estimate of the market value of real property in its current physical condition, use, and zoning as of the
appraisal date.3
1 Office of Comptroller of the Currency (OCC), Title 12 of the Code of Federal Regulation, Part 34, Subpart C -Appraisals, 34.42 (g); Office of Thrift
Supervision (OTS), 12 CFR 564.2 (g); This is also compatible with the FDIC, FRS and NCUA definitions of market value.
2 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022
3 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022
SCOPE OF WORK (CONTINUED)
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SCOPE OF WORK
The scope of work for this appraisal assignment is outlined below:
The appraisal analyzes the regional and local area profiles including employment, population, household
income and real estate trends. The local area was inspected to consider external influences on the
subject.
The appraisal analyzes legal and physical features of the subject including site size, flood zone, seismic
zone, site zoning, easements, encumbrances, site access and site exposure.
The appraisal includes a retail market analysis for the Dallas-Fort Worth market and the Denton
submarket using vacancy, absorption, supply and rent data. Conclusions were drawn for the subject’s
competitive position given its physical and locational features, current market conditions and external
influences.
The appraisal includes a Highest and Best Use analysis and conclusions have been completed for the
highest and best use of the subject property As Vacant. The analysis considered legal, locational,
physical and financial feasibility characteristics of the subject site.
In selecting applicable approaches to value, the appraisers considered the agreed upon appraisal scope
and assessed the applicability of each traditional approach given the subject’s characteristics and the
intended use of the appraisal. As the subject is unimproved vacant land, this appraisal developed the
Land Sales Comparison Approach. The values presented represent the As-Is Market Value (Fee Simple
Interest).
The assignment was prepared as an Appraisal Report in accordance with USPAP Standards Rules 2, with
the analysis stated within the document and representing a summarized level of analysis.
The authors of this report are aware of the Competency Rule of USPAP and meet the standards.
ASSISTANCE PROVIDED
No one provided real property appraisal assistance to the individuals signing this report.
SOURCES OF INFORMATION
The following sources were contacted to obtain relevant information:
The lack of unavailable items could affect the results of this analysis. As part of the general assumptions and
limiting conditions, the subject is assumed to have no adverse easements, significant items of deferred
maintenance, or be impacted by adverse environmental conditions.
SCOPE OF WORK (CONTINUED)
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SUBJECT PROPERTY INSPECTION
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS
The Uniform Standards of Professional Appraisal Practice require the disclosure of hypothetical conditions
and extraordinary assumptions when employed in the development of an appraisal. The following
extraordinary assumptions and hypothetical conditions are set forth for appraisal purposes and no legal
reasoning is intended. The reader should be aware, that, in the event that any of the assumptions or conditions
proves false or improperly applied, the conclusions of this appraisal could be changed or invalidated.
EXTRAORDINARY ASSUMPTIONS
No Extraordinary Assumptions were made for this assignment.
HYPOTHETICAL CONDITIONS
No Hypothetical Conditions were made for this assignment.
TAXES & ASSESSMENT
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CURRENT TAXATION & ASSESSMENT DESCRIPTION
In Texas, commercial real estate is assessed at 100% of the Assessor's opinion of market value. The total
assessment for the subject property for the tax year 2022 is $681,750 or $75.00 PSF. There are no exemptions
in place. The total tax bill for the property is $14,472 or $1.59 PSF. This is within the general range for
comparable retail land uses in the area. The subject’s assessed values and property taxes for the current year
are summarized in more detail in the following table.
The last assessment for the subject was April 2022 with future assessments scheduled annually (next
assessment estimated to be in April 2023). In this instance, the assessment is equal to the market value
multiplied by the assessment ratio. The Denton County Tax Authority usually reassesses upon sale. Based on
the foregoing, and the current assessment's relationship to market value, we perceive that the risk of a
reassessment is medium. Should a reassessment occur, we believe it could be around 100.0% of market value.
According to Denton County, real estate taxes for the subject property are current as of the date of this report.
Based on the scope of this assignment, any pending tax liens are not considered in the value conclusion.
CONCLUSION
In this section, we analyzed the subject’s historical and current assessment, as well as considered the subject’s
tax burden as it relates to its current stabilized market value on a fee simple basis. The conclusion shown
above is supported by comparable data and utilized going forward in the analyses that is to follow.
EXPOSURE AND MARKETING TIME
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EXPOSURE & MARKETING TIME
Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to
acquire the property in less time if the price were less. Hence, the time span cited below coincides with the
value opinion(s) formed herein.
USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose
of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered
for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. The
following information is used to estimate exposure time and marketing time for the subject:
Exposure Time Conclusion
The subject is two contiguous sites totaling 0.2086 acres or 9,090 square feet, located at 108 and 112 North
Locust Street in Denton, Denton County, Texas. Considering these factors, a reasonable estimate of exposure
time for the subject As-Is Market Value (Fee Simple Interest) is six to nine months.
Marketing Time Conclusion
A marketing time estimate is a forecast of a future occurrence. History should be considered as a guide, but
anticipation of future events and market circumstances should be the prime determinant. Overall market
conditions are expected to remain stable to slightly increasing, so a marketing time of six to nine months is
predicted for the subject.
REGIONAL AREA MAP
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REGIONAL AREA ANALYSIS
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INTRODUCTION
In order to understand the subject’s position in the area or region, we have undertaken a brief analysis in
order to determine how trends—both historical and projected—in population, employment, personal income,
consumer spending, and housing impact supply and demand and influence the subject’s area directly and
indirectly. This analysis first begins on a broader spectrum, and without respect to the subject itself, and is
highlighted in the Regional Area Analysis. Secondly, we undertake a more narrowly focused study of the
aforementioned attributes as they relate directly to the subject and the subject’s neighborhood. This
discussion is presented in the forthcoming Local Area Analysis.
REGIONAL AREA ANALYSIS
The subject property is located in Denton, Texas. The map presented on the previous page illustrates the
subject property location relative to the Fort Worth-Arlington, TX MSA Division metropolitan area.
Unemployment
The following graphs charts the trailing 18 months and trailing 10 years unemployment rate for the United
States, West South-Central Division, Texas, Fort Worth-Arlington, TX MSA Division, and Denton County.
REGIONAL AREA ANALYSIS (CONTINUED)
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Employment
The following chart shows the trailing 10 years employment for the state of Texas, Fort Worth-Arlington, TX
MSA Division, and Denton County.
MARKET ANALYSIS
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In this section, market conditions which influence the subject property are analyzed. An overview of Retail
supply and demand conditions for the Dallas-Fort Worth market and Denton submarket are presented. Key
supply and demand statistics for the most recent quarter, last year and historical averages over the past 10
years are summarized in the tables below.
The Dallas-Fort Worth Retail market demonstrates positive conditions. There has been little variance in supply
over the last year. Vacancy has remained relatively stable at 4.6%. Asking rents increased in each quarter of
2022 with an additional increase in Q1 2023. Net absorption was positive for the last year.
The Denton Retail submarket demonstrates mostly stable conditions. Vacancy has remained stable at 5.5%.
Asking rents have remained relatively stable as well ranging from a low of $16.75 per square foot to a high of
$18.28 per square foot with the most recent figure at $17.95 per square foot. It is noted that rents in this
submarket are slightly below that of the Dallas-Fort Worth MSA. Net absorption was negative in Q1 2023
putting some pressure on rents.
MARKET ANALYSIS (CONTINUED)
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VACANCY
The following tables provide visual illustration of the long term and short term Retail vacancy for the Dallas-
Fort Worth market and Denton submarket.
RENTAL RATES
The following tables provide a visual illustration of rental Retail trends for the Dallas-Fort Worth market and
Denton submarket in the short and long term:
MARKET RENT & VACANCY
MARKET ANALYSIS (CONTINUED)
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DELIVERIES
The following tables provides the recently delivered and under construction Retail supply for the Dallas-Fort
Worth market and Denton submarket:
MARKET ANALYSIS (CONTINUED)
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SALE PRICE & INVENTORY
CONCLUSION
Overall, investors would recognize these general retail conditions and the subject’s positioning in the
immediate market area as having a neutral overall influence when contemplating purchase of the subject.
LOCAL AREA MAP
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LOCAL AREA ANALYSIS
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INTRODUCTION
The subject property is located within the Denton Square. the Denton Square District includes all land located
within the area bounded by the following: Beginning at the intersection of Cedar Street and Pecan Street,
running east along Pecan Street to Austin Street, running south along Austin Street to Walnut Street, running
west along Walnut Street to Cedar Street, and running north along Cedar Street to Pecan Street. The
immediate area of the subject is characterized by a mix of retail, office, multi-family single-family residential
and commercial uses in the surrounding area.
Demographics
The following information reflects the demographics for the subject’s area.
Population
The estimate provided by ESRI for the current 2022 population within the subject neighborhood’s 3 mile radius
is 91,365 representing a 4.48%change since 2020. ESRI’s 2020 population estimate for the subject’s 5 mile
radius is 138,634, which represents a 4.59% change since 2020.
Looking forward, ESRI estimates that the population within the subject neighborhood’s 3 mile radius is
forecasted to change to 97,936 by the year 2027. As for the broader area, ESRI forecasts that the population
within the subject’s 5 mile radius will change to 149,489 over the next five years. The population estimates for
the next five years within the subject’s 5 mile radius represents a 7.83% change as well as a 5.05% change
within the subject’s 1 mile radius for the same period.
LOCAL AREA ANALYSIS (CONTINUED)
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Households
The estimates provided by ESRI indicate that the number of households within the subject neighborhood’s 3
mile radius is 37,631, which is a 5.20% change since 2020. Within the subject’s broader 5 mile radius, ESRI
estimates that the number of households is 53,246, a 5.15% change over the same period of time.
By the year 2027, the estimates provided by ESRI indicate that the number of households within the subject
neighborhood’s 3 mile radius will change by 7.32% to 40,386 households. Additionally, ESRI’s estimate for
total households over the next five years within the subject’s broader 5 mile radius indicates an expected
change of 7.96% which will result in a total household estimate of 57,482.
Looking back, the number of households in the subject neighborhood’s 3 mile radius changed 15.65% during
the ten-year period of 2010 to 2020. Since then, it has changed by 5.20%.
Income
Income estimates provided by ESRI for the subject neighborhood’s 3 mile radius indicates that the median
household income is $53,288 and that the average household income is $72,071. Further, the estimates
provided by ESRI indicate that, for the subject’s broader 5 mile radius the median household income is
$63,242, and the average household income is $87,306. Given that there are reportedly 53,246 households in
the subject’s 5 mile radius, it is estimated that the local effective buying income is around $4,648,695,276.
CONCLUSION
Based on our observation and the data provided by ESRI, it is perceived that the income and population
demographics for the subject neighborhood exhibit average characteristics in terms of reported population
growth and income levels. As previously mentioned, the population growth for the subject’s 3 mile radius has
increased 4.48% since 2020 and based on the projections provided by ESRI, it is expected to continue to
increase another 7.19% during the next 5 years. Lastly, we perceive that, since average household incomes are
above the national average ($72,071, for the subject’s 3 mile radius) and given that the area is well-populated
(37,631 households in a 3 mile radius), developments like the subject should be adequately supported.
LOCAL AREA ANALYSIS (CONTINUED)
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SURROUNDING LAND USES
The following tables and maps highlight the development in and around the subject.
LOCAL AREA ANALYSIS (CONTINUED)
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LOCAL AREA ANALYSIS (CONTINUED)
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LOCAL AREA ANALYSIS (CONTINUED)
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LOCAL AREA ANALYSIS (CONTINUED)
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The land use in the subject’s immediate neighborhood consists of a significant amount of commercial
property, comprising of a mix of many property types. Commercial uses in the area include multi-tenant retail
centers, medium-sized retail/industrial/distribution-type properties, small- to- medium sized freestanding
office and retail properties, as well as service-related uses, restaurants, gas stations/convenience stores and
banks. The following chart illustrates the high concentration of multi-family, office and retail compared to
industrial properties.
LOCAL AREA ANALYSIS (CONTINUED)
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DEVELOPMENT PIPELINE
Under Construction
Based on CoStar's research, there is one project that is currently under construction. The development is a
10,000 square-foot multi-family property.
The following table details our findings:
ECONOMIC INFLUENCES
The local area economic status is important to recognize as the measurement of income levels provides an
indication of the ability of the area population to buy, rent and maintain property. The economic status of an
area also provides an indication of the population’s appetite for goods and services. Relevant economic
information includes income levels, property ownership vs. rent, property rent levels, rent level trends,
property vacancy and new construction.
The majority of the housing units within the area are owner occupied. However, there is also a significant
amount of tenant occupied properties as well.
GOVERNMENT INFLUENCE
Governmental considerations relate to zoning, building codes, regulations, flood plain restrictions, special
assessment, property tax and empowerment zones.
Zoning in the area is mixed, including commercial, residential, multi-family and industrial designations. Zoning
code is enforced by the municipality and enforcement in all areas of City of Denton is considered to be strong.
Rezoning is typically discouraged and requires public input in all municipalities. Building codes are in force
and require a certain standard of construction quality and design. This is a typical influence on properties
similar to the subject and falls in line with the zoning classification.
LOCAL AREA ANALYSIS (CONTINUED)
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Property taxes in the area are established by Denton County and are assessed based on valuation. Considering
the broad authority of the county administration, the assessments in the neighborhood are similar to other
neighborhoods in the metropolitan area. There are no known special assessments that affect property in the
neighborhood.
ACCESS/PUBLIC TRANSPORTATION
Denton Square District includes all land located within the area bounded by the following: Beginning at the
intersection of Cedar Street and Pecan Street, running east along Pecan Street to Austin Street, running south
along Austin Street to Walnut Street, running west along Walnut Street to Cedar Street, and running north
along Cedar Street to Pecan Street. The major north to south streets includes Locust Street, Elm Street, Carroll
Boulevard and Bell Avenue. The major west and east streets includes Oak Street, Hickory Street, and McKinney
Street. The major highway into the city is Interstate Highway 35. Overall, access within the neighborhood is
average for the metropolitan area.
ENVIRONMENTAL INFLUENCES
The subject area is considered to be a typical neighborhood with average building size and density. There are
no extraordinary topographical features, nuisances of hazards. Public utilities are available in most all areas in
quantities from public and private sources. The area has both public and private schools in adequate supply
and quality.
LOCAL AREA SUMMARY
The market benefits from a diverse blend of residential, multi-family, commercial, and community uses. The
city is also home to the University of North Texas. Although the area suffered during the recession of the late
2000’s and into the 2010’s, the market has been strengthening since roughly 2011-2012, due to the good
livability factors associated with the region. The outlook for this market area is good into the foreseeable
future.
AERIAL PHOTOGRAPH
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SITE DESCRIPTION
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Subject front from North Locust Street
Subject rear from North Austin Street
South view of North Locust Street; subject on the left
North view of North Locust Street; subject on the right
SITE DESCRIPTION (CONTINUED)
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The subject property consists of two parcels with a total site area of 9,090 square-feet (0.21 acres) which is
based on information obtained from Denton County Assessor. It is perceived that there is no surplus or excess
land at the subject. For the purposes of this report we have relied on this site area and reserve the right to
amend our analysis upon receipt of a formal legal plan. The following summaries the salient characteristics of
the subject site.
Address 108 and 112 North Locust Street, Denton, Texas.
Census Tract 48-121-021100
Adjacent Properties
North Retail
South Restaurant
East Retail
West Old Denton County Courthouse
Accessibility Access to the subject site is considered average overall.
SITE DESCRIPTION (CONTINUED)
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Exposure & Visibility Exposure of the subject is good balancing the frontage along North Locust
Street.
Flood Plain Zone X (Unshaded). This is referenced by Panel Number 48121C0360G, dated
April 18, 2011. Zone X (unshaded) is a minimal risk area. Areas of moderate or
minimal hazard are studied based upon the principal source of flood in the area.
Minimal risk areas outside the 1% and 0.2% annual chance of floodplains. No
BFEs or base flood depths are shown within these zones. (Zone X (unshaded) is
used on new and revised maps in place of Zone C.)
Seismic The subject is in a no risk area.
Easements A preliminary title report was not available for review. During the property
inspection, no adverse easements or encumbrances were noted. This appraisal
assumes that there are no adverse easements present. If questions arise, further
research is advised.
Soils A detailed soils analysis was not available for review. Based on the development
of the subject, it appears the soils are stable and suitable for the existing
improvements.
Hazardous Waste We have not conducted an independent investigation to determine the
presence or absence of toxins on the subject property. If questions arise, the
reader is strongly cautioned to seek qualified professional assistance in this
matter. Please see the Assumptions and Limiting Conditions for a full disclaimer.
Site Rating Overall, the subject site is considered very good as a land site in terms of its
location, exposure and access to employment, education and shopping centers,
based on its location within the Square.
Site Conclusion In conclusion, the site’s physical characteristics appear to be supportive of the
subject’s current use and there were no significant detriments discovered that
would inhibit development in accordance with its highest and best use.
ZONING
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The subject is located in the Denton Square District (DSD) zoning. The purpose of the Denton Square District
("The Square") is to preserve historic resources and build upon the image of the Square as the historic, vibrant,
small-town heart of a growing city by establishing design standards for new construction, certain exterior
renovations, and demolition of property in the Denton Square that serve to protect and enhance the historic
character of the area, preserve property values, and encourage high-quality, sustainable, pedestrian-friendly
development..
ZONING CONCLUSION
The Denton Square District allows for a variety of uses aimed at preserving the overall historical character.
Development of projects in the Square are subject to design and intended use standards.
PARCEL MAP
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108 North Locust Street
112 North Locust Street
ZONING MAP
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Denton Square District includes all land located within the area bounded by the following: Beginning at the
intersection of Cedar Street and Pecan Street, running east along Pecan Street to Austin Street, running
south along Austin Street to Walnut Street, running west along Walnut Street to Cedar Street, and running
north along Cedar Street to Pecan Street.
Subject
FLOOD MAP
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Subject
HIGHEST & BEST USE
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INTRODUCTION
The highest and best use of the subject property provides the foundation for the valuation section. Highest
and best use is defined in the 7th edition of The Dictionary of Real Estate Appraisal (Appraisal Institute, Chicago,
2022), as follows:
1. The reasonably probable use of property that results in the highest value. The four criteria that the
highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and
maximum productivity.
2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially
feasible. The highest and best use may be for continuation of an asset’s existing use or for some
alternative use. This is determined by the use that a market participant would have in mind for the
asset when formulating the price that it would be willing to bid.
3. The highest and most profitable use for which the property is adaptable and needed or likely to be
needed in the reasonably near future.
Highest and best use analysis uses the following steps for the subject:
Highest & Best Use As Vacant
Determination of the ideal improvements
Conclusion of the Highest & Best Use
The analysis of highest and best use can be thought of as the logical end of a spectrum of market analysis
procedures, running from the macroeconomic overview of a general market study, through more detailed
marketability studies and analyses of financial feasibility, to the formal analysis of highest and best use. In
theory, the highest and best use is commonly described as that reasonable and most profitable use that will
support its highest present value. The highest and best use, or most profitable use, must be legally permissible,
physically possible, financially feasible, and maximally productive.
This section develops the highest and best use of the subject property As-Vacant.
AS VACANT ANALYSIS
In this section the highest and best use of the subject as vacant is concluded after taking into consideration
financial feasibility, maximal productivity, marketability, legal, and physical factors.
Legally Permissible
Private restrictions, zoning, building codes, historic district controls, and environmental regulations are
considered, if applicable to the subject site. The legal factors influencing the highest and best use of the
subject site are primarily government regulations such as zoning ordinances. Permitted uses of the subject’s
Denton Square District (DSD) include retail, office and multifamily subject to approval projects. Zoning change
is not likely; therefore, uses outside of those permitted by the DSD zoning are not considered moving forward
in the as-vacant analysis.
Physical Possible
The test of what is physically possible for the subject site considers physical and locational characteristics that
influence its highest and best use. In terms of physical features, the subject site totals 0.2087-acres or 9,090
square-feet. It is rectangular in shape and has a level topography. The site has good exposure and average
overall access. There are no physical limitations that would prohibit development of any of the by-right uses
on the site.
HIGHEST & BEST USE (CONTINUED)
PYLES WHATLEY 23-0288 34
Financial Feasibility
Based on the analysis of the subject’s market and an examination of costs, a newly constructed building
conforming to the zoning regulations would likely have a value commensurate with its cost. Therefore, it is
concluded that retail development is financially feasible.
Maximum Productivity
There is only one use that creates value and at the same time conforms to the requirements of the first three
tests. Financial feasibility, maximal productivity, marketability, legal, and physical factors have been considered
and the highest and best use of the subject site as-vacant concluded to be retail development.
SUMMARY OF HIGHEST AND BEST USE
The highest and best use of the subject would be for retail development.
Timing: Current
Market Participants:
User: Owner, Tenant
Most Probably Buyer: Owner, Investor
MOST PROBABLE BUYER
Based on the type of property and the income generating potential of the improvements, it is our opinion
that the most probable buyer for the subject would be a local investor or user.
VALUATION METHODS
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In traditional valuation theory, the three approaches to estimating the value of an asset are the cost approach,
sales comparison approach, and income capitalization approach. Each approach assumes valuation of the
property at the property’s highest and best use. From the indications of these analyses, an opinion of value is
reached based upon expert judgment within the outline of the appraisal process.
SITE VALUATION
The site value is a specific scope requirement of this assignment. Considering the subject property comprises
a vacant site, the inclusion of estimate of vacant land value is deemed appropriate. Therefore, a valuation of
the subject site has been provided herein.
COST APPROACH
The cost approach considers the cost to replace the proposed improvements, less accrued depreciation, plus
the market value of the land. The cost approach is based on the understanding that market participants relate
value to cost. The value of the property is derived by adding the estimated value of the land to the current
cost of constructing a reproduction or replacement for the improvements and then subtracting the amount
of depreciation in the structure from all causes. Profit for coordination by the entrepreneur is included in the
value indication.
The Cost Approach is not a specific scope requirement of this assignment. Characteristics specific to the
subject property do not warrant that this valuation technique is developed. Based on the preceding
information, the Cost Approach will not be presented.
IMPROVED SALES COMPARISON APPROACH
The sales comparison approach estimates value based on what other purchasers and sellers in the market
have agreed to as price for comparable properties. This approach is based upon the principle of substitution,
which states that the limits of prices, rents, and rates tend to be set by the prevailing prices, rents, and rates
of equally desirable substitutes. In conducting the sales comparison approach, we gather data on reasonably
substitutable properties and make adjustments for transactional and property characteristics. The resulting
adjusted prices lead to an estimate of the price one might expect to realize upon sale of the property.
The Improved Sales Comparison Approach is not a specific scope requirement of this assignment as the
subject is unimproved vacant land.
INCOME CAPITALIZATION APPROACH
The income capitalization approach (“income approach”) simulates the reasoning of an investor who views
the cash flows that would result from the anticipated revenue and expense on a property throughout its
lifetime. The net income developed in our analysis is the balance of potential income remaining after vacancy
and collection loss, and operating expenses. This net income is then capitalized at an appropriate rate to
derive an estimate of value or discounted by an appropriate yield rate over a typical projection period in a
discounted cash flow analysis. Thus, two key steps are involved: (1) estimating the net income applicable to
the subject and (2) choosing appropriate capitalization rates and discount rates. The appropriate rates are
ones that will provide both a return on the investment and a return of the investment over the life of the
particular property.
The Income Approach is not a scope requirement for this assignment as the subject is vacant unimproved
land.
SITE VALUATION
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INTRODUCTION
This section values the subject site by comparing it with substitute land sales or listings within the local market
area or in competitive areas throughout the region. Land value is influenced by a number of factors; most
notably development and use potential. These factors, as well as others, are factored in the following analysis.
UNIT OF COMPARISON
The most relevant unit of comparison for competing land is the price per square footage. All of the comparable
sales presented in this section were reported on this basis.
ADJUSTMENTS
Adjustments to the comparable sales were considered and made when warranted for expenditures after
purchase, property rights transferred, conditions of sale, financing terms, and market conditions.
1. Property Rights - All of the sales comparables were fee simple sales reflecting the property rights
appraised herein per the agreed upon scope of work.
2. Financing - The sales all reflected typical cash equivalent, lender-financed transactions and no
adjustments were required for financing terms.
3. Sale Conditions - None of the comparables required a condition of sale adjustment, as all were
confirmed to be arm’s length transactions.
4. Expenditures After Sale - Expenses that the buyer incurs after purchase (demolition, cleanup costs,
etc.). No adjustments are warranted based on review of the land sales.
5. Market Conditions (Time) - Based on the analysis performed, which includes research and
interpretation of value trends of the comparables presented herein, a market conditions adjustment of
5% is applied on an annual basis reflecting the relatively consistent appreciation that occurred between
the oldest comparable sale date up through the effective valuation date.
QUANTITATIVE ADJUSTMENT PROCESS
Quantitative percentage adjustments are also made for location and physical characteristics such as size,
location quality, access, exposure, as well as other applicable elements of comparison. Where possible the
adjustments applied are based on paired data or other statistical analysis. It should be stressed that the
adjustments are subjective in nature and are meant to illustrate the logic in deriving a value opinion for the
subject property by the Land Sales Comparison Approach.
COMPARABLE SELECTION
A thorough search was made for similar land sales in the area. The parameters of the survey were highest and
best use, zoning, proximity to the subject, size, and date of sale. In selecting comparables, emphasis was
placed on confirming recent sales of sites that are similar to the subject property in terms of location and
physical characteristics. Overall, the sales used represent the best comparables available for this analysis.
PRESENTATION
The following Land Sales Comparison Table, location map and exhibits summarize the sales data. Following
these items, the sales are adjusted for applicable elements of comparison and the site value is concluded.
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 37
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 38
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 39
1316 Ector St
Comparable 1
Sale Information
Buyer JBA Denton, LLC
Seller James C. Tritt Jr. Heritage Trust
Sale Date 10/18/2022
Transaction Status Recorded
Sale Price $1,400,000 $31.76 /SF Land
Analysis Price $1,400,000 $31.76 /SF Land
Recording Number 2022-148416
Rights Transferred Fee Simple
Financing Typical
Conditions of Sale Arm's-length
Marketing Time 839 days
Property
Land Area 1.0118 Acres (44,074 SF)
Number of Parcels 1
Zoning SC
Shape Rectangular
Topography Level
Corner Yes
Utilities All available
Easements Unknown
Environmental Unknown
Frontage 325′ West University Drive, 125′ Ector
Street
Flood Zones Zone X (Unshaded)
1316 Ector St
Denton, TX 76201
County
Denton
Submarket
Denton
APN
R67720
Confirmation
Date 5/16/2023
Remarks
The site is located at the southeast corner of Ector Street and West
University Drive. The surrounding land uses are predominately retail
along West University Drive and residential to the south along Ector
Street.
The buyer purchased this tract of land along with the abutting tract to the
south in two separate transactions with different sellers.
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 40
1312 Ector St
Comparable 2
Sale Information
Buyer JBA Denton, LLC
Seller The Fuller Company, LLC
Sale Date 10/18/2022
Transaction Status Recorded
Sale Price $799,000 $26.30 /SF Land
Analysis Price $799,000 $26.30 /SF Land
Recording Number 2022-148415
Rights Transferred Fee Simple
Financing Typical
Conditions of Sale Arm's-length
Marketing Time 839 days
Property
Land Area 0.6975 Acres (30,383 SF)
Number of Parcels 1
Zoning SC
Shape Rectangular
Topography Level
Utilities All available
Easements Unknown
Environmental Unknown
Flood Zones Zone X (Unshaded)
1312 Ector St
Denton, TX 76201
County
Denton
Submarket
Denton
APN
R67721
Confirmation
Date 5/16/2023
Remarks
The buyer purchased this tract of land along with the abutting tract to the
north in two separate transactions with different sellers. The surrounding
land uses are predominately retail along West University Drive and
residential to the south along Ector Street.
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 41
104 W McKinney St
Comparable 3
Sale Information
Buyer Dao, Chi Co & Dao, Vu Anh
Seller B & O Realty, LLC
Sale Date 1/7/2019
Transaction Status Recorded
Sale Price $310,000 $66.27 /SF Land
Analysis Price $310,000 $66.27 /SF Land
Recording Number 2019-2668
Rights Transferred Fee Simple
Financing Typical
Conditions of Sale Arm's-length
Marketing Time 248 days
Property
Land Area 0.1074 Acres (4,678 SF)
Number of Parcels 1
Zoning MD
Shape Rectangular
Topography Level
Utilities All available
Easements Unknown
Environmental Unknown
Frontage 130′ West McKinney Street
Flood Zones Zone X (Unshaded)
104 W McKinney St
Denton, TX 76201
County
Denton
Submarket
Denton
APN
R26746
Confirmation
Date 5/16/2023
Remarks
The property was an automotive repair facility converted into a restaurant.
The property is two blocks north of the Square with high visibility at the
corner of North Locust Street and West McKinney Street.
The improvements were in poor condition at the time of the sale. The
property was purchased and converted into a restaurant. According to
the County Assessor and the listing broker, the improvements contributed
very little, if anything, to the overall sale price. The broker confirmed a sale price of $330,000. As such, we estimated a contributory value of $5
per square foot to the improvements and deducted this amount from the
$330,000 to arrive at estimated value to the land of $310,000.
Also. according to the County Assessor, this transaction was their basis for
the most recent land assessment for the properties located on the Square
due to a lack of recently closed sales on the Square.
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 42
LAND SALES ADJUSTMENT DISCUSSION
The comparable land sales indicate an overall unadjusted value range from $26/SF to $66/SF, and average of
$41/SF. After adjustments, the comparables indicate a range for the subject site between $33/SF and $77/SF
with an average of $51/SF. The adjustment process is described below.
Size – The subject site is comprised of 0.2087 acres. The size adjustment is based on the premise that, in
general, the larger the tract, the less its selling price on a per unit basis. Recent experience with other
properties utilizing a linear regression analysis indicates a 5% - 15% adjustment for each doubling/halving
(100%) in size. A 5% adjustment is used for this analysis. Sale Nos. 1, 2 and 3 are adjusted 12%, 9% and -4%
respectively for size.
Location - An adjustment for location within a market area may be required when the locational
characteristics of a comparable property are different from those of the subject property. Most comparable
properties in the same market area have similar locational characteristics, but variations may exist within that
area of analysis. A property’s location is analyzed in relation to the location of other similar properties. Sale
Nos. 1 and 2 are adjusted upward 15% for their inferior locational appeal relative to the subject, while Sale
No. 3 is not adjusted, having similar locational appeal as the subject.
Access - Access has a significant bearing on real estate in the market. Access is defined as the points, or
number of points available for ingress/egress to the subject site or ease of access to the site from abutting
roadways. Sale properties are adjusted based on their inferiority/superiority as compared with the subject.
The comparable sales have similar access as the subject and are not adjusted.
Exposure – Exposure is a function of traffic volume or drive-by business potential. Sale properties are adjusted
based on their inferiority/superiority as compared with the subject. All of the sales have good exposure similar
to the subject and are not adjusted.
Zoning – The site is zoned Denton Square District (DSD) by the City of Denton. Having similar development
potential based on the zoning and highest and best use, the comparable sales are not adjusted.
Topography – The subject has a level topography and is at street grade along North Locust Street; the subject
is determined to be outside the 100-year floodplain. The comparable sales are similar to the subject in
topography and are not adjusted.
LAND VALUE CONCLUSION
The comparables indicate a unit value, based on a general bracketing analysis, between $33/SF and $77/SF.
Based on the subject’s overall locational and physical features, a unit value conclusion of $75/SF is supported.
The most weight was given to Sale No. 3 for proximity to the subject. Despite it’s time of closing, this sale
provides a relatively good indication for the subject’s value due the property’s proximity to the Square. The
following table summarizes the comparable land sales analysis and applies the unit value conclusion to the
site area to provide an indication of the as-vacant land value.
SITE VALUATION (CONTINUED)
PYLES WHATLEY 23-0288 43
RECONCILIATION OF VALUE CONCLUSIONS
PYLES WHATLEY 23-0288 44
Based on the agreed upon scope with the client, the subject’s specific characteristics and the interest
appraised, this appraisal developed Land Sales Comparison Approach. The values presented represent the As-
Is Market Value (Fee Simple Interest).
The Reconciliation of Value Conclusions is the final step in the appraisal process and involves the weighing of
the individual valuation techniques in relationship to their substantiation by market data, and the reliability
and applicability of each valuation technique to the subject property. Below, the individual strengths and
weaknesses of each approach are analyzed.
As previously discussed, the Cost Approach was not presented in this analysis as the subject is vacant land.
The price per square foot method has been presented in the Land Sales Comparison Approach. There have
been limited recent sales of properties similar to the subject in the market area in the current market
conditions.
The Income Approach to value is generally considered to be the best and most accurate measure of the
value of income-producing properties. As the subject is vacant unimproved land, this approach is not relevant.
After considering all factors relevant to the valuation of the subject property, the Land Sales Comparison
Approach was deemed to only relevant approach in the following As-Is market value.
CERTIFICATION
PYLES WHATLEY 23-0288 45
We certify that, to the best of our knowledge and belief:
The statements of fact contained in this report are true and correct.
The reported analyses, opinions, and conclusions of the signers are limited only by the reported
assumptions and limiting conditions, and are our personal, impartial, and unbiased professional
analyses, opinions, and conclusions.
The signers of this report has 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.
Ed Doorley and Richard McBride have performed no services, specifically as an appraiser or in any other
capacity regarding the property that is the subject of this report within the three-year period
immediately preceding acceptance of this assignment.,
The signers are not biased with respect to the property that is the subject of this report or to the parties
involved with this assignment.
The engagement in this assignment was not contingent upon developing or reporting predetermined
results.
The 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.
The reported analysis, 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, and the Uniform Standards of Professional Appraisal Practice,
as set forth by the Appraisal Standards Board of the Appraisal Foundation.
Ed Doorley and Richard McBride inspected the property that is the subject of this report.
No one provided significant real property appraisal assistance to the appraisers signing the certification.
The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
As of the date of this report, Richard McBride has completed the Standards and Ethics Education
Requirements for Practicing Affiliates of the Appraisal Institute.
As of the date of this report, Ed Doorley has completed the Standards and Ethics Education
Requirements for Candidates of the Appraisal Institute.
Richard McBride
Certified General Real Estate Appraiser
Texas License No.1380335 G
Expiration Date 6/30/2024
Ed Doorley
Certified General Real Estate Appraiser
Texas License No. 1380698 G
Expiration Date 4/30/2024
ASSUMPTIONS & LIMITING CONDITIONS
PYLES WHATLEY 23-0288 46
Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate.
This analysis assumes that the information provided for this appraisal accurately reflect the current condition of the subject property.
This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include
the right of publication.
The appraisers may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in
question, unless prior arrangements have been made.
The statements of value and all conclusions shall apply as of the dates shown herein.
There is no present or contemplated future interest in the property by the appraisers which is not specifically disclosed in this report.
Without the written consent or approval of the authors neither all, nor any part of, the contents of this report shall be conveyed to the public
through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the
appraisers and the company with which the appraisers are connected.
This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous
conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone.
We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All
existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free
and clear, under responsible ownership, and competent management.
The appraisal has provided exhibits to assist the client(s)/intended user(s) to understand from a graphical standpoint some of the salient issues
which impact the subject property. We have made no survey of the property and if further verification is required, a survey by a registered
surveyor is advised.
The appraisers assume no responsibility for determining if the property requires environmental approval by the appropriate governing agencies,
nor if it is in violation thereof, unless otherwise noted herein. This analysis assumes that no asbestos or other hazardous materials are stored
or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional
assistance. If hazardous materials are discovered and if future market conditions indicate an impact on value and increased perceived risk, a
revision of the concluded values may be necessary.
The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an
adequate maintenance and repair program.
The liability of Pyles Whatley, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or
liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all
limiting conditions and assumptions of the assignment and related discussions. The appraisers are in no way responsible for any costs incurred
to discover or correct any deficiency in the property.
The appraisers are not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated
with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims
any duty to note the degree of fault. Pyles Whatley and its principals, agents, employees, shall not be liable for any costs, expenses, assessments,
or penalties, or diminution in value, property damage, or personal injury (including death) resulting from or otherwise attributable to toxic or
hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot,
fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants.
The appraisers assume no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Pyles
Whatley, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting
from non-compliance.
This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the
eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost
were known today, they would be reduced from the reported value conclusion.
Unless otherwise noted herein, a detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed
to be suitable based upon a visual inspection of the subject property and surrounding properties, which did not indicate evidence of excessive
settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions.
DEFINITIONS AND TERMS
PYLES WHATLEY 23-0288 47
Various terms and symbols are used throughout the appraisal report. The following are definitions of the terms and explanations of the symbols used:4
Anticipation – The perception that value is created by the expectation of benefits to be derived in the future.
Business Enterprise Value – The value contribution of the total intangible assets of a continuing business enterprise such as marketing and
management skill, an assembled workforce, working capital, trade names, franchises, patents, trademarks, contracts, leases, customer base, and
operating agreements.
Deferred Maintenance – Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of the
property. These items are almost always curable.
Extraordinary Assumption - 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.
Excess Land – Land that is not needed to serve or support the existing use. Excess land has the potential to be sold separately and is valued separately.
Going Concern, Market Value of the – The market value of an established and operating business including the real property, personal property,
financial assets, and the intangible assets of the business.
Grantee – A person to whom property is transferred by deed or to whom property rights are granted by a trust instrument or other document.
Grantor – A person who transfers property by deed or grants property rights through a trust instrument or other document.
Highest and Best Use – The reasonably probable use of property that results in the highest value.
Hypothetical Condition - 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.
Interim Use – The use contemplated by the market participants that the subject real estate can be put to while waiting for certain subsequent factors
to occur. Many times, these are used to defray holding cost expenses.
Investment Value – The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment
value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market.
Lessee – One who has the right to occupancy and use of the property of another for a period of time according to a lease agreement.
Lessor - One who conveys the rights of occupancy and use to others under a lease agreement.
Market Rent - The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease
transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus.
Market Value - See Definition of Market Value section
Present Value - The value of a future payment or series of future payments discounted to the current date or to time period zero.
Price - The amount asked, offered, or paid for a property. Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because
of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation
to the value that might be ascribed to that property by others.
Property Rights – An enforceable, legal claim to title of or interest in property. The rights may be in real property or personal property.
Property Rights Adjustment – An adjustment made to the indicated property value if the value of the property is not at market rent, market occupancy,
or lease basis.
Surplus Land – Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use.
Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel.
Utility – The ability of a product to satisfy a human want, need, or desire.
4 The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, Illinois, 2022.
ADDENDA
PYLES WHATLEY 23-0288 48
ENGAGEMENT LETTER
ADDENDA (CONTINUED)
PYLES WHATLEY 23-0288 49
ADDENDA (CONTINUED)
PYLES WHATLEY 23-0288 50
ADDENDA (CONTINUED)
PYLES WHATLEY 23-0288 51
QUALIFICATIONS OF APPRAISER
ADDENDA (CONTINUED)
PYLES WHATLEY 23-0288 52
Edward R. Doorley
Appraisal assignments entail on-site inspection, market research, data analysis, and valuation. Completed
assignments include the following: shopping centers, retail, office, and industrial properties, multi-family
residential (apartment complexes), office buildings, land development, and specialty properties like
convenience store/fueling stations and churches.
Experience
• Conducted market research and assisted in the completion of commercial appraisal reports, with
PYLES WHATLEY from December 2021 to present.
• Appraised commercial properties, with INTEGRA REALTY RESOURCES and JONES LANG
LASALLE from 2015 to 2018.
• Appraised residential properties, with ACCURATE VALUATION & CONSULTING from 2009 to
2015.
Education
• Master of Science – Business Analytics, University of Texas at Dallas
• Bachelor of Business Administration –Finance, University of Texas at Arlington
• Completed numerous appraisal courses and seminars conducted by the Appraisal Institute and various
real estate and financial organizations.
Professional Licenses
• State of Texas – Certified General Real Estate Appraiser: #1380698-G
Affiliations
• Appraisal Institute – Candidate for Designation
ADDENDA (CONTINUED)
PYLES WHATLEY 23-0288 53
APPRAISER LICENSE