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HomeMy WebLinkAbout335006 WESTGATE DRIVE IMPROVEMENT PROJECT PARCEL 38 W/L OF WESTGATE DRIVE, NORTH OF W. WINDSOR DRIVE DENTON, TEXAS 76207 CBRE GROUP, INC. FILE NO. CB25US013550-6 HALFF ASSOCIATES, INC. CBRE VALUATION & ADVISORY SERVICES APPRAISAL REPORT © 20 CBRE, Inc. VALUATION & ADVISORY SERVICES 500 West 2nd Street, Suite 1700 Austin, TX 78701 T 512-499-4900 F 512-499-4999 www.cbre.com March 18, 2025 Mr. Mark Janicki HALFF ASSOCIATES, INC. 1201 N Bowser Rd Richardson, Texas 75081 RE: Appraisal of: Westgate Drive Improvement Project: Parcel 38 W/L of Westgate Drive, North of W. Windsor Drive Denton, Denton County, Texas CBRE, Inc. File No. CB25US013550-6 Dear Mr. Janicki: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. The analysis is presented in the following appraisal report. The subject is a 3.3170-acre (144,489 sq. ft.) tract of vacant land along the west line of Westgate Drive, north of W. Windsor Drive in Denton, Texas. The site is improved with minor site improvements. As a result, the site is valued as vacant land with affected site improvements. The purpose of this assignment is to develop an opinion of market value of the fee simple interest in the property and the recommended compensation for Parcel 38 which includes a right of way fee acquisition that consists of 0.1530 acre (6,665 SF) located along the eastern property line/Westgate Drive frontage. The City of Denton intends to acquire this right of way for the Westgate Drive Improvement project. Based on the analysis contained in the following report, the appraiser’s opinion of total compensation is concluded as follows: CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$434,889 Part(s) Being Acquired $21,417 Remainder Before Consideration of Damages $413,472 Remainder After Consideration of Damages $413,472 Net Damages or (Benefits)$0 Net Cost to Cure (Temporary Damages) $2,331 Total Compensation $23,748 © 20 CBRE, Inc. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The appraisal problem, as applied to the subject, is to determine the property’s market value. “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) The intended use and user of our report are specifically identified in our report as agreed upon in my contract for services and/or reliance language retained in the appraiser’s workfile. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). The report is not the appraisal but is the reporting of the appraisal to the named client or named intended user. Anyone else who attempts to rely on an appraisal report that is not a named user may be misled by the report. If you are not the client, you have no way of knowing if a later appraisal was done that replaces this report. Any changes will result in a different report date. Accordingly, this document may no longer contain the appraisers’ opinions. Any subsequent reports, with a later report date, voids this document even to the client or intended user. © 20 CBRE, Inc. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Allison Jackson, SR/WA, R/W-AC Executive Vice President TX 1336636 G Phone: 512-499-4911 Fax: 512-499-4999 Email: cathy.thomas@cbre.com Vice President TX 1380451 G Phone: 817-806-1042 Fax: 817-335-6001 Email: allison.jackson@cbre.com © 20 CBRE, Inc. Subject Aerial 1 Subject Aerial with Acquisition Overlay Aerial View of Subject and Acquisitions The right of way acquisition is noted in green and the subject outline is noted in yellow. The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. SUBJECT ROW © 20CBRE, Inc. Certification 2 Table of Contents Subject Aerial with Acquisition Overlay ................................................................................ 1 Table of Contents ................................................................................................................ 2 Certification ........................................................................................................................ 3 Executive Summary ............................................................................................................. 4 Scope of Work ................................................................................................................... 10 Subject Photographs .......................................................................................................... 12 Zoning .............................................................................................................................. 25 Tax and Assessment Data .................................................................................................. 28 Highest and Best Use ........................................................................................................ 29 Appraisal Methodology ..................................................................................................... 31 Land Value ........................................................................................................................ 33 Reconciliation of Value – Whole Property ........................................................................... 40 Part to be Acquired ........................................................................................................... 41 Remainder After ................................................................................................................ 45 Land Value After – Remainder ........................................................................................... 48 Remainder After Value Conclusion .................................................................................... 49 Summary of Compensation ............................................................................................... 51 Assumptions and Limiting Conditions ................................................................................ 52 ADDENDA A Land Sale Data Sheets B Project Informations C Qualifications © 20 CBRE, Inc. Certification 3 Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Texas. 7. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has completed the continuing education program for Designated Members of the Appraisal Institute. 10. As of the date of this report Allison Jackson, SR/WA, R/W-AC has completed the Standards and Ethics Education Requirements for Associate Members of the Appraisal Institute. 11. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, R/W-AC have made personal inspections of the property that is the subject of this report. 12. No one provided significant real property appraisal assistance to the persons signing this report. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, R/W-AC have not provided services as an appraiser, or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Allison Jackson, SR/WA, RWA, R/W-AC TX 1336636 G TX 1380451 G © 20 CBRE, Inc. Executive Summary 4 Executive Summary INTRODUCTION CBRE File No.:CB25US013550-6 Date of the Report March 18, 2025 Effective Date February 17, 2025 Valuation Date Type Current Client City of Denton, its employees, agents, and assigns ROW Provider Name Halff Associates, Inc. Representative Mr. Mark Janicki Address 1201 N Bowser Rd Richardson, TX 75081 Parcel Number Parcel 38 Subject Location W/L of Westgate Drive, North of W. Windsor Drive Denton, Denton County, TX Owner Carol Jean Gaede Legal Description 27.257 acres of land situated in the Francis Batson Survey, Abstract No. 43, City of Denton, Denton County, Texas Assessor IDs (Impacted Only)335006 Property Rights Appraised Fee Simple Estate subject to existing encumbrances Rights Being Acquired Fee Simple Right of Way Current Use of Subject Single-Family Residential Highest and Best Use As Vacant Residential As Improved The subject is appraised as effectively vacant land of Acquisition As part of the Whole Property Estimated Exposure Time 6 - 12 Months Buyer Profile Owner-User or Developer Whole Property 3.3170 AC 144,489 SF Fee Area 3.3170 AC 144,489 SF Part Acquired Parcel 38 0.1530 AC 6,665 SF Remainder Property Fee Area Remaining 3.1640 AC 137,824 SF LAND AREAS CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$434,889 Part(s) Being Acquired $21,417 Remainder Before Consideration of Damages $413,472 Remainder After Consideration of Damages $413,472 Net Damages or (Benefits)$0 Net Cost to Cure (Temporary Damages) $2,331 Total Compensation $23,748 © 20 CBRE, Inc. Executive Summary 5 SALIENT POINTS x The proposed right of way and easements are part of the Westgate Drive Improvement project which is connecting existing rights-of-way such as Bronco Way to Westgate Drive and expanding other rights-of-way such as Westgate Drive and West Windsor Drive. EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS An extraordinary assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1 A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purposes of analysis.” 2 The use of extraordinary assumptions and hypothetical conditions may affect assignment results. 1 The Appraisal Foundation, USPAP 2 The Appraisal Foundation, USPAP © 20 CBRE, Inc. Executive Summary 6 SPECIAL ASSUMPTIONS •We have relied on public records for the whole land area and the client-provided survey for the acquisition areas utilized in this assignment and we assume these sizes to be correct. Absent this assumption, the value opinion could be different. • The site improvement measurements have been estimated utilizing the survey provided by the client and Google Earth measuring tools, and/or on-site measurements. We assume these estimates to be correct. Absent this assumption, the value opinion could be different. • A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. • It is assumed that any underground improvements or other improvements which are not visible to the appraiser will not be impacted by the project. Any impact to such improvements will require modification of this analysis or separate agreement between the property owner and the client. • The valuation of subsurface mineral rights is outside the scope of this assignment. CBRE is aware that some properties in the area may benefit from the sub-surface mineral development. These potentially contain oil, natural gas and other resources which, if extracted, could contribute to the value of the property. We suggest the client contact an appropriate geological professional to determine the possible benefits, if any, of the subject’s subsurface rights. The value conclusion(s) presented in this report, specifically exclude any subsurface mineral rights. The assumption is made that the comparable sales utilized in this report excluded mineral rights and/or value attributed to mineral rights, unless otherwise stated in the Discussion/Analysis of Sales section(s). • The value of the remainder considers that the easement has been executed in acordance with the rights that were communicated to the appraiser at the commencement of this appraisal. Additionally, it considers the construction of the proposed pipeline is completed by the construction period provided by the client and any temporary workspace easement and additional temporary workspace easements have reverted back to the owner in the specified time provided by the client. This is common appraisal practice. • Certain elements of damage cannot be considered in the appraisal of the remainder although these elements may reduce the value of the remainder tract. This is in accordance with State v. Schmidt, 867 S.W. 2d 769, 781 (Tex. 1993), wherein the Supreme Court ruled that damages due to diversion of traffic, circuitry of travel, increased noise, reduced visibility to passers byes, and inconvenience due to construction activities are non-compensable and are thus not considered in the valuation of the remainder. See also Texas Property Code, Chapter 21, Subchapter C, Section 21.042 (d). EXTRAORDINARY ASSUMPTIONS: uncertain information; could alter conclusions HYPOTHETICAL CONDITIONS: contrary to what is known but used for purpose of analysis © 20 CBRE, Inc. Scope of Work 7 MARKET CONDITIONS Inflationary pressures began in 2022 and led to higher interest rates, slower job growth, and stress in banking systems. These factors increased the potential for constrained credit markets, negative capital value movements, and increased volatility in property markets. Nevertheless, recent cuts in the federal funds rate and the expectation of future reduction may help bolster future commercial real estate investment activity. However, the risk of near-term market volatility remains. The impacts on real estate markets will be uneven across property types and vary by location. It is important to note that the conclusions set out in this report are valid only as of the valuation date. MARKET VOLATILITY We draw your attention to a combination of inflationary pressures beginning in 2022, which led to higher interest rates during this period, slowing job growth, stress in banking systems, which have significantly increased the potential for constrained credit markets, negative capital value movements, and enhanced volatility in property markets. Beginning in September of 2024, the Fed lowered the federal funds rate by 100 basis points over the course of three FOMC meetings. Although the extent and timing of any future reductions are uncertain, two additional rate cuts are widely expected in 2025. While this may help bolster future commercial real estate investment activity, the risk of near-term market volatility remains. Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for changing market conditions. It is important to note that the conclusions set out in this report are valid as of the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. © 20 CBRE, Inc. Scope of Work 8 IDENTIFICATION OF THE SUBJECT The subject is a 3.3170-acre (144,489 sq. ft.) tract of vacant land along the west line of Westgate Drive, north of W. Windsor Drive in Denton, Texas. The site is improved with minor site improvements. As a result, the site is valued as vacant land with affected site improvements. The purpose of this assignment is to develop an opinion of market value of the fee simple interest in the property and the recommended compensation for Parcel 38 which includes a right of way fee acquisition that consists of 0.1530 acre (6,665 SF) located along the eastern property line/Westgate Drive frontage. The City of Denton intends to acquire this right of way for the Westgate Drive Improvement project. IDENTIFICATION OF THE LARGER PARCEL The value of a property cannot be estimated without a determination of the property to be appraised. In some cases, multiple tax parcels are utilized together in one use or a larger tract of land may be legally, economically and physically divisible into smaller economic units. The three tests to determine the “larger parcel” to be valued in an appraisal are: x Unity of Title - control by a single entity, individual, or group. Title is largely a legal question. x Unity of Use - an integrated highest and best use separate from surrounding land. Multiple tracts can have the same use but be separate tracts, such as platted lots. Use is an economic question that is dependent upon supply and demand, availability of substitutes and other economic principles. x Proximity - contiguous tracts or proximate tracts that are used together. Subordinate to Unity of Use. In this case, the subject identified for valuation purposes of this assignment is 3.3170 acres, or 144,489 SF square feet of land, that is under the same owner and use. OWNERSHIP Based on research, the most recent conveyance was in 2017 and is not relevant for this analysis. To the best of my knowledge there has been no ownership transfers of the property during the previous three years. The subject is not known to be listed for sale or under contract. The summary of ownership information is listed in the table below. OWNERSHIP SUMMARY Current Owner:Carol Jean Gaede Date Purchased: March 16, 2017 Purchase Price: Not Disclosed Legal Reference 2017-49010 County/Locality Name:Denton Pending Sale:No Change of Ownership - Past 3 Years No Compiled by CBRE © 20 CBRE, Inc. Scope of Work 9 OWNER CONTACT Attempts to establish contact with the property owner, Ms. Carol Jean Gaede, were unsuccessful. Thus, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC conducted an inspection on February 17, 2025 from the right of way and surrounding public areas. Allison Jackson, SR/WA, R/W-AC inspected the property from the right of way and surrounding public areas at a later date. OWNER AND CONTACTS Owner Name Carol Jean Gaede Owner Address 941 Foxhall Drive Owner City, State, Zip Winston Salem, North Carolina 27106-4431 Primary Contact Carol Jean Gaede Contact Phone (940) 597-0910 Occupancy Vacant Compiled by CBRE FURNITURE, FIXTURES AND EQUIPMENT (PERSONAL PROPERTY) There were not items of personal property noted within the proposed acquisition. © 20 CBRE, Inc. Scope of Work 10 Scope of Work APPRAISAL ASSIGNMENT Guidance - The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), USPAP reporting Standard 2-2, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. - Texas Property Code, Title 4, Chapter 21, Subchapter A Project Name - Westgate Drive Improvement Project Intended User - This appraisal is to be used by the City of Denton, its employees, agents and assigns. This project is administered under an agreeement between the City of Denton and Halff Associates, Inc., and no other user may rely on our report unless as specifically indicated in the report. Intended Use This appraisal intended to estimate compensation for the proposed acquisition. Market Value Definition - “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) CLIENT The client is the City of Denton through a subcontract with Halff Associates, Inc. INTEREST APPRAISED INTERESTS APPRAISED Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 73. The interest appraised includes the value of the rights to the fee owner, considering existing easements, encumbrances, and restrictions. The value of any mineral estate is excluded from this valuation, unless otherwise stated. Extent to Which the Property is Identified The property is identified through the following sources: x postal address x assessor’s records x legal description © 20 CBRE, Inc. Scope of Work 11 Extent to Which the Property is Inspected The extent of the inspection included a personal site visit with photography from the right of way and surrounding public areas. Inspections were conducted as follows: Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC personally conducted an inspection on February 17, 2025 from the right of way and surrounding public areas. Allison Jackson, SR/WA, R/W-AC conducted an inspection from the right of way and surrounding public areas at a later date. Effective Date The effective date is the most recent date of inspection. Type and Extent of the Data Researched CBRE reviewed the following: x deed records x applicable tax data x zoning requirements x flood zone status x demographics x comparable data Type and Extent of Analysis Applied CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The steps required to complete each approach are discussed in the methodology section. Data Resources Utilized in the Analysis DATA SOURCES Item: Source(s): Site Data Whole Property and Acquisition Size Public Records and Client-Provided Survey Remainder Size Appraiser Calculations Floodplain FEMA Zoning City of Denton Easements Deed Records, Title Commitment and Client-Provided Survey Compiled by CBRE © 20 CBRE, Inc. Subject Photographs 12 Subject Photographs View looking west/southwest at the subject from near the NEC of the subject View looking south along the proposed right of way/eastern property line from the NEC of the subject View looking northwest along the proposed right of way acquisition from near the SEC View looking west along the southern property line of the subject near the SEC of the subject Westgate Drive right-of-way, facing north near the SEC of the subject Westgate Drive right-of-way, facing south from the NEC of the subject © 20 CBRE, Inc. Area Analysis 13 Area Analysis POPULATION Compiled by CBRE; Source: Esri The subject is located in Denton County. Key information about the area is provided in the following tables. The area has a population of 1,002,553 and a median age of 35, with the largest population group in the 30-39 age range and the smallest population in the 80+ age range. Population has increased by 340,383 since 2010, reflecting an annual increase of 3.24%. Population is projected to increase by an additional 106,120 by 2028, reflecting 2.03% annual population growth.662,170 1,002,553 1,108,673 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2023 2028 POPULATION BY YEAR 0 50,000 100,000 150,000 200,000 -79 80+ AREA POPULATION BY AGE Subject © 20 CBRE, Inc. Area Analysis 14 INCOME EDUCATION EMPLOYMENT Compiled by CBRE; Source: Esri The area includes a total of 549,676 employees and has a 3.2% unemployment rate. The top three industries within the area are Prof/Scientific/Tech Services, Health Care/Social Assistance and Retail Trade, which represent a combined total of 32% of the population. The area features an average household income of $136,351 and a median household income of $101,372. Over the next five years, median household income is expected to increase by 7.7%, or $1,562 per annum. A total of 51.1% of individuals over the age of 24 have a college degree, with 34.6% holding a bachelor's degree and 16.5% holding a graduate degree. $101,372 $109,180 $96,000 $98,000 $100,000 $102,000 $104,000 $106,000 $108,000 $110,000 2023 2028 MEDIAN INCOME BY YEAR 34.6% 16.5% 48.9% POPULATION BY DEGREE Bachelor's Degree Graduate Degree Other 0% 2% 4% 6% 8% 10% 12% Other Services (excl Publ Adm) Construction Transportation/Warehousing Accommodation/Food Services Manufacturing Finance/Insurance Educational Services Retail Trade Health Care/Social Assistance Prof/Scientific/Tech Services CONCLUSION Denton County has an average growth rate compared to similar markets in the State of Texas with a population growth average of 3.24% since 2010. The Denton County area is expected to continue its positive performance and continued growth. © 20 CBRE, Inc. Neighborhood Analysis 15 Neighborhood Analysis LOCATION The subject is located in Denton County, Texas, in an area known as the DFW Metroplex. BOUNDARIES The neighborhood boundaries are detailed as follows: North: Denton city limits South: Denton city limits East: Denton city limits West: Denton city limits LAND USE Land uses are predominately commercial and residential in the vicinity of the subject, with industrial and mixed uses nearby. Larger uses in the area include auto dealers, Medical City Denton, and the University of North Texas. Additional demand generators for the City of Denton Subject © 20 CBRE, Inc. Neighborhood Analysis 16 include Texas Woman’s University, Peterbilt Motos, Texas Health Presbyterian Hospital Denton, Josten’s, Inc., and Sally Beauty Supply, Inc., among others. Rayzor Ranch Rayzor Ranch Town Center is a newer area of commercial development located at the southeast quadrant of Interstate Highway 35 and U.S. Highway 380 in the northwestern portion of the neighborhood. This area includes approximately 600,000 square feet of open-air shopping, dining and entertainment. In addition to retail stores such as Alamo Draft House Cinema, Cotton Patch Café, Houlihan’s Restaurant and Bar and Andy B’s Bowl Social, this area includes outdoor gathering spaces and an amphitheater with the design inspired by historic regional urban architecture. The Rayzor Ranch Market Place is located in the northeast quadrant of Interstate 35 and U.S. Highway 380 includes a concentration of retail development. Tenants include Walmart, PetCo, Sam’s Club, Kohl’s, Ross Dress for Less, JoAnn Fabric and Craft, Tuesday Morning, Marshalls, Famous Footwear and others. University of North Texas Noted as one of the nation’s largest universities, University of North Texas (UNT) currently offers 106 bachelor’s, 88 master’s and 36 doctoral programs. The UNT main campus is located in the southwestern portion of the subject neighborhood. However, the 550,000 square foot University of North Texas Discovery Park (formerly Research Park) is located north of the main campus in Denton and in the northwest potion of the subject’s neighborhood. The facility houses leading edge research projects in biomedicine, nanotechnology, materials composition and others. It is also home to the UNT School of Engineering, supports teaching and research of STEM (science- technology-engineering-mathematics) disciplines and partners in regional economic development initiatives that promote technology innovation in North Texas. The most recent certified enrollment as of the Fall of 2020 was 40,653 students, the fifth largest in the State of Texas. In addition, for the December 2019, May 2020 and August 2020 graduations, the university awarded 8,030 bachelor’s degrees, 1,930 master’s degrees, and 311 doctoral degrees. The five-year average for degrees awarded at the university is 9,448. Texas Woman’s University Texas Women’s University is also located in the central portion of the subject neighborhood. In the U.S. News and World Report's 2013 Best Colleges issue, TWU was ranked in the top three institutions in the state and ten nationally for universities that have the most diverse student populations. TWU’s graduate program in Physical Therapy is the only physical therapy program in Texas that is consistently ranked as a top Physical Therapy program by U.S. News and World Report. Finally, TWU is among the nation’s leading providers of healthcare professionals and produces more nurses than any Texas program. © 20 CBRE, Inc. Neighborhood Analysis 17 Golden Triangle Mall The Golden Triangle Regional Mall is the largest regional mall in the area and is located at the northeast quadrant of Interstate Highway 35 and Loop 288. This regional mall features approximately 75 stores and is anchored by Macy’s, JCPenney, Barnes & Noble, Dillard’s and H&M. This mall features a food court, WIFI hotspots, and children’s play area. Also, within the Golden Triangle Mall area is the Denton Community Theatre, which presents dozens of productions throughout the year. Finally, Golden Triangle Mall also includes Silver Cinemas, which is a full-service movie theater with five screens. GROWTH PATTERNS Growth patterns have occurred primarily along area arterials such as Interstate Highway 35. Growth patterns have also occurred along primary commercial thoroughfares such as SR North Loop 288, Teasley Lane, Mingo Road, South Woodrow Lane, South Bell Avenue, North Elm Street, East McKinney Street, US Highway 380, North Locust Street, East Sherman Drive, and Carroll Boulevard. Retail development in the subject neighborhood is comprised primarily of community retail centers located at the intersections of major neighborhood thoroughfares. ACCESS Primary access to the subject neighborhood is provided by Interstate Highway 35. Interstate Highway 35 is primarily a four-lane, variable width right-of-way, traversing the neighborhood in a north/south and east/west direction. This arterial splits into Interstate Highway 35 East and Interstate Highway 35 West in the southern Denton area, providing a direct route to both the Dallas and Fort Worth Central Business Districts. Interstate Highway 35 West connects the subject neighborhood with the Fort Worth Central Business District, while Interstate Highway 35 East connects the subject neighborhood with the Dallas Central Business District. The SR North Loop 288 encircles the eastern portion of the neighborhood and intersects with Interstate Highway 35 in the southern portion of the subject neighborhood. Additional major thoroughfares include Teasley Lane, Mingo Road, South Woodrow Lane, South Bell Avenue, North Elm Street, East McKinney Street, U.S. Highway 380, North Locust Street, East Sherman Drive, and Carroll Boulevard. © 20 CBRE, Inc. Neighborhood Analysis 18 DEMOGRAPHICS Selected neighborhood demographics in 1-, 3- and 5-mile radius from the subject are shown in the following table: W/L of Westgate Drive, North of W. Windsor Drive Denton, TX 76207 Population 2028 Total Population 3,989 44,829 103,176 1,108,673 2023 Total Population 2,843 40,798 94,431 1,002,553 2010 Total Population 1,174 31,028 76,890 662,170 2000 Total Population 925 26,935 66,639 432,069 Annual Growth 2023 - 2028 7.01% 1.90% 1.79% 2.03% Annual Growth 2010 - 2023 7.04% 2.13% 1.59% 3.24% Annual Growth 2000 - 2010 2.41% 1.42% 1.44% 4.36% Households 2028 Total Households 1,949 18,254 41,310 405,119 2023 Total Households 1,426 16,608 37,830 364,866 2010 Total Households 518 12,250 29,409 240,132 2000 Total Households 406 10,930 25,596 158,504 Annual Growth 2023 - 2028 6.45% 1.91% 1.78% 2.12% Annual Growth 2010 - 2023 8.10% 2.37% 1.96% 3.27% Annual Growth 2000 - 2010 2.47% 1.15% 1.40% 4.24% Income 2023 Median Household Income $85,068 $58,816 $54,601 $101,372 2023 Average Household Income $101,891 $76,563 $74,985 $136,351 2023 Per Capita Income $42,215 $31,246 $30,210 $49,653 2023 Pop 25+ College Graduates 905 10,510 22,471 334,214 Age 25+ Percent College Graduates - 2023 43.7% 41.7% 40.8% 51.1% Source: ESRI SELECTED NEIGHBORHOOD DEMOGRAPHICS Denton County1 Mile Radius 3 Mile Radius 5 Mile Radius CONCLUSION The subject is well-positioned within the central portion of Denton County. The population within the subject neighborhood has shown positive growth over the past several years. The outlook for the neighborhood is relatively stable performance with moderate improvement over the next several years. © 20 CBRE, Inc. Site Analysis 19 TAX MAP Source: Denton Central Appraisal District Subject © 20CBRE, Inc. Site Analysis 20 FLOOD PLAIN MAP Source: FEMA N Subject © 20 CBRE, Inc. Site Analysis 21 SITE ANALYSIS The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area 3.3170 Acres 144,489 Sq. Ft. Primary Road Frontage Westgate Drive 222 Feet Shape Topography Zoning District Flood Map Panel No. & Date 48121C0360G April 18, 2011 Flood Zone Zone X (Unshaded) Ingress/Egress Points Comparative Analysis Access Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Source: Various sources compiled by CBRE Rating Average Average Average Rectangular Generally Level R2 - Residential Legally Permissible via Westgate Drive Average City of Denton Atmos Energy Various Various Average Average Provider City of Denton Appears adequate © 20 CBRE, Inc. Site Analysis 22 SHAPE AND FRONTAGE The subject exhibits a rectangular shape and has frontage along Westgate Drive which comprises the eastern property line. INGRESS/EGRESS The site does not currently have driveways access. This is not atypical for vacant land. Westgate Drive, at the subject, is a north/south undivided interior thoroughfare with one lane of traffic in each direction. Street improvements include asphalt paving and open ditch drainage. Street parking is not permitted. TOPOGRAPHY AND DRAINAGE The subject is generally level. The topography of the subject is not seen as an impediment to the development of the property. During inspection of the subject, no drainage problems were observed, and it is assumed that none exist. FLOOD ZONE We are not experts in determining flood zone elevations and we were not provided with a flood zone certificate for the subject. The reader is encouraged to consult with a professional engineer to determine the subject's actual flood zone status. Based on a review of FEMA Flood Panel No. 48121C0360G, the property appears to be in Zone X (Shaded), which is a low risk area. Zones C and X (unshaded) are flood insurance rate zones used for areas outside the 0.2-percent- annual-chance floodplain. No Base Flood Elevations (BFEs) or depths are shown in this zone, and insurance purchase is not required. EASEMENTS AND ENCROACHMENTS Based on the title commitment and survey provided by the client, there are public utility easements and a drainage easement traversing the site. These are considered typical easements; thus, they are not considered to impact the marketability or the highest and best use. There are no known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. COVENANTS, CONDITIONS AND RESTRICTIONS Based on the title commitment, there are no known covenants, conditions or restrictions impacting the subject that are considered to affect the marketability or highest and best use. © 20 CBRE, Inc. Site Analysis 23 ENVIRONMENTAL ISSUES - SITE CBRE, Inc. is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. No hazardous substances which would affect value were noted by the appraiser (see Assumptions and Limiting Conditions). CONCLUSION The subject is suitable for uses commensurate with the surrounding neighborhood. The subject is well-located and has average visibility and access from roadway frontage. The size of the subject is typical for the area and there are no known detrimental uses in the immediate vicinity. There are no known factors which are considered to prevent the subject from development to its highest and best use, as vacant. © 20 CBRE, Inc. Improvements Analysis 24 IMPROVEMENTS ANALYSIS The subject is a 3.3170-acre (144,489 sq. ft.) tract of vacant land along the west line of Westgate Drive, north of W. Windsor Drive in Denton, Texas. The site is improved with minor site improvements. As a result, the site is valued as vacant land with affected site improvements. Site improvements impacted by the partial acquisition area are presented in the following chart: IMPROVEMENT CONDITION RATINGS Improvement Condition 5-Strand Barbed Wire Fencing - S/L 15 LF Fair 5-Strand Barbed Wire Fencing - E/L 222 LF Fair Compiled by CBRE Based on our on-site inspection, the site improvements are considered to be in fair condition. It is noted that the length of the 5-strand barbed wire fencing on the south line is 30 linear feet; however, we have included half this amount (15 feet) in order to separate the value of this improvement between the subject and the adjacent site (Parcel 37) to the north that shares this fencing. The site improvement measurements have been estimated utilizing the survey provided by the client, Google Earth measuring tools, and/or on-site measurements. The value of the subject’s site improvements located in the part to be acquired only have been added to the land value in the cost approach. © 20 CBRE, Inc. Zoning 25 Zoning The following chart summarizes the subject’s zoning summary. ZONING SUMMARY Current Zoning Legally Conforming Uses Permitted Zoning Change Future Land Use Category Category Zoning Requirement Minimum Lot Size 16,000 Sq. Ft. Minimum Lot Width 80 Feet Lot Depth 100 Feet Maximum Height 40 Feet Minimum Setbacks Front Yard 20 Feet Street Side Yard 10 Feet Interior Side Yard 10 Feet Rear Yard 10 Feet Maximum Bldg. Coverage 40% Source: Planning & Zoning Dept. R2 - Residential N/A - Land The R2 district is intended to preserve existing single-family neighborhoods. The R2 district is intended to ensure that any new development promotes walkability, access to parks, open space, and recreation amenities and is compatible with existing land uses and development patterns. The R2 district can be used as a transitional district between large lot residential neighborhoods and medium lot residential neighborhoods. Not Likely Low Residential ANALYSIS AND CONCLUSION The above information is based upon publicly-available data and is not a substitute for a site- specific development plan that has been reviewed and approved by the municipality. Additional information may be obtained from the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the information obtained is correct. © 20 CBRE, Inc. Zoning 26 ZONING MAP Source: City of Denton Subject © 20 CBRE, Inc. Zoning 27 FUTURE LAND USE MAP Source: City of Denton Subject © 20 CBRE, Inc. Tax and Assessment Data 28 Tax and Assessment Data The following summarizes the local assessor’s estimate of the subject’s market value, assessed value, and taxes, and does not include any furniture, fixtures or equipment. TAX INFORMATION Assessor Account ID(s)335006 Tax Year 2024 Assessed Land Acres 2.518 AC Assessed Land SF 109,684 SF Assessor Land Value $62,507 Assessor Land Value/SF $0.57 Tax Rate 1.930189 Total Taxes $1,207 Tax Exemption None Based on our analysis, the assessed land value appears to be below market value. The local Assessor’s methodology for valuation is fee simple market value. Under the Texas Property Tax Code, assessed value is supposed to represent 100% of market value via the use of all three approaches to value. However, this rarely happens. First, Texas is a non-disclosure state and the sales price is not on any public document and does not have to be divulged. In addition, the owners of the subject property have the ability to protest the subject’s valuation in any given tax year regardless of whether or not there is an increase. Notifications of preliminary assessed value as of January 1st are mailed in March and April and the Appraisal District has to be notified of a value protest by June 1. Tax rates, set by the individual taxing authorities, are determined in September of that year. CONCLUSION The total taxes for the subject have been estimated as $1,207 for the base year of our analysis, based upon an assessed value of $62,507 or $0.57 per square foot. The assessed value was stable from 2023 to 2024 after a decrease of $7,219 from the 2022 assessed value. For purposes of this analysis, CBRE, Inc. assumes that all taxes are current. © 20 CBRE, Inc. Valuation Analysis – Whole Property 29 Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: x legally permissible; x physically possible; x financially feasible; and x maximally productive. The highest and best use analysis of the subject is discussed below. AS VACANT Legal Permissibility As discussed previously, the subject is located within the City of Denton and is subject to the R-2 Residential zoning restrictions. According to the Future Land Use Map, the subject is located within the Low Residential designation. As noted previously, there are multiple utility and drainage easements traversing the site. These easements are considered typical easements; thus, they do not impact the marketability or highest and best use. There are no known easements or encroachments impacting the subject that are considered to affect the marketability or highest and best use. There are also no known covenants, conditions, or restrictions impacting the subject that are considered to affect the marketability or highest and best use. Physical Possibility The subject is adequately served by public utilities with water and wastewater available and has an adequate shape and size to be a separately developable site. The subject has average access and visibility. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites within the subject neighborhood is additional evidence for the physical possibility of development. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable and physically possible land uses versus the cost to create the uses. Consideration to existing land use trends has been given in determining feasible uses and only those uses that are physically possible and legally permissible are given further consideration. From a financially feasible perspective and given the Whole Property’s location, size, and the surrounding development, the financially feasible use for the Whole Property is for a residential use. © 20 CBRE, Inc. Valuation Analysis – Whole Property 30 Maximum Productivity - Conclusion Based on the information presented above and upon information contained in the market and neighborhood analysis, it is concluded that the highest and best use of the subject as vacant would be the development of a residential use. Analysis of the subject and its respective market characteristics indicate the most likely buyer, as vacant, would be an owner-user or developer. © 20 CBRE, Inc. Valuation Analysis – Whole Property 31 Appraisal Methodology In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject • CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The subject is valued as vacant land and so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. • The 'summation method' for valuation of a partial acquisition is utilized, as is required in the State of Texas. Total compensation is estimated as the value of the partial acquisition, plus © 20 CBRE, Inc. Valuation Analysis – Whole Property 32 damages to the remainder (which may be offset by special benefits), plus any necessary costs to cure and temporary easements if they are part of the scope of the assignment. It is worth noting here that the fee simple interest of the subject property is appraised, and unified fee at that. This means that all interests and title are valued together. In reality, the leased fee valuation of the property may be different from the fee simple value because of the terms of existing leases. This appraisal follows the so-called unit rule which includes the valuation of all rights of any parties who may have an interest (such as tenants, life estate holders, remaindermen, leaseholders, etc.) in the subject as one. The exception is consideration of existing easement encumbrances. © 20 CBRE, Inc. Valuation Analysis – Whole Property 33 Land Value Based on the comparative analysis, the following chart summarizes the adjustments warranted to each comparable. A detailed description of each transaction is included in the addenda. LAND SALES ADJUSTMENT GRID Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor Shawn P. Robertson & Nayurel Robertson Oakmont Partners JV, L.P.Luis Reyes HK Golden Legacy, LLC, a Texas limited liability company Grantee Ayman Zghyer & Ali Altamimi JAS Technologies LLC Armando Ruiz and Rocio Alanis Ikechukwu Abana Date of Sale Mar-22 Mar-23 Feb-23 Aug-22 Jun-22 Address W/L of Westgate Drive, North of W. Windsor Drive S/L of Jackson Road, East of Thomas J. Egan Road 4505 State School Road 4610 Miller Road 1018 Mockingbird Lane City, State Denton, TX Krum, TX Denton, TX Denton, TX Denton, TX Gross Acres 3.3170 7.4900 1.0383 1.0000 2.6100 Gross Square Feet 144,489 326,264 45,230 43,560 113,692 Actual Sale Price $418,400 $170,000 $135,000 $350,000 Adjusted Sale Price 1 $418,400 $170,000 $135,000 $352,000 Unit Price Per SF $1.28 $3.76 $3.10 $3.10 Property Rights Conveyed Financing Conditions of Sale Market Conditions (Time) 8% 0% 0% 0% 0% Adjusted $/SF $1.28 $3.76 $3.10 $3.10 Location 10% 10% Size 10% -10% -10% -5% Shape 5% Frontage/Access Zoning/Use -5% Flood/Topography Utilities 5% Net Adjustment 30% -10% 0% -10% Indicated Unit Value $1.66 $3.38 $3.10 $2.79 Estimated Unit Value $3.00 Compiled by CBRE © 20 CBRE, Inc. Valuation Analysis – Whole Property 34 The following map summarizes the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. SUMMARY OF COMPARABLE LAND SALES Actual Sale Adjusted Sale Size Size Price No. Property Location Type Date Zoning Price Price 1 (Acres) (SF) Per SF 1 S/L of Jackson Road, East of Thomas J. Egan RoadKrum, TX 76249 Sale Mar-23 Not Zoned $418,400 $418,400 7.4900 326,264 $1.28 2 4505 State School Road Denton, TX 76210 Sale Feb-23 R1: Residential $170,000 $170,000 1.0390 45,260 $3.76 3 4610 Miller Road Denton, TX 76249 Sale Aug-22 R4 - Residential $135,000 $135,000 1.0000 43,560 $3.10 4 1018 Mockingbird LaneDenton, TX 76209 Sale Jun-22 R2: Residential $350,000 $352,000 2.6100 113,692 $3.10 Subject W/L of Westgate Drive, North of W. Windsor Drive, Denton, Texas --- --- R2 - Residential --- --- 3.3170 144,489 --- 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE Transaction © 20 CBRE, Inc. Valuation Analysis – Whole Property 35 DISCUSSION OF ADJUSTMENTS Based on the comparative analysis, the following discussion summarizes the adjustments warranted to each comparable. CONDITIONS OF SALE/FINANCING All sales were indicated to be cash-to-seller transactions or financed by a third party at market terms and none appeared to occur under duress. As such, no adjustments for cash equivalency were necessary. In addition, the sales reflected arm’s length transactions; therefore, no adjustments for conditions of sale were warranted. MARKET CONDITIONS The transactions occurred between June 2022 and March 2023. According to area brokers and analysis of land sales in this market, appreciation rates had been trending upward prior to Federal interest rate increases which began in March 2022. An upward adjustment at a rate of 8% per year has been applied until March 2022, with 0% growth thereafter. No market conditions adjustments were warranted. LOCATION Location can have a significant impact on value. Comparables 1 and 3 are considered inferior with regard to location compared to the subject based on these site’s location further from development within the City of Denton. Upward adjustments were warranted. Comparables 2 and 4 are considered similar with regard to location compared to the subject and no adjustments were warranted. SIZE Typically, there is an inverse relationship between unit price and size, as larger properties generally sell for less per square foot than smaller tracts. Comparable 1 is adjusted upward for its larger size compared to the subject. Comparables 2, 3 and 4 are adjusted downward for their smaller sizes compared to the subject. SHAPE The subject exhibits a rectangular shape which is not considered restrictive. Comparable 1 has a long and narrow shape and is considered inferior, warranting an upward adjustment. All remaining comparables are considered similar with regard to shape compared to the subject and no adjustments were warranted. FRONTAGE/ACCESS All of the Comparables exhibit similar frontage/access and no adjustments were warranted. © 20 CBRE, Inc. Valuation Analysis – Whole Property 36 ZONING/USE The subject is zoned for residential uses. Comparable 4 is considered superior with regard to zoning/use compared to the subject based on the intent to subdivide the site prior to development. A downward adjustment was warranted. All of the remaining comparables are considered similar with regard to zoning/use compared to the subject and no adjustments were warranted. UTILITIES The subject has access to public water and wastewater. Comparable 1 is considered inferior with regard to utility access compared to the subject as this site lacks access to public sewer. An upward adjustment was applied. All of the remaining Comparables had similar utility access compared to the subject and no other adjustments were warranted. CONCLUSION Based on the preceding analysis, each of the sales comparables is considered representative of the subject site subsequent adjustment. The adjusted sales indicate a range of approximately $1.66 per sf to $3.38 per sf, and demonstrate a mean and median of $2.73 per sf $2.95 per sf, respectively. Comparables 2, 3 and 4 demonstrate a mean and median of $3.09 per sf and $3.10 per sf, respectively. In conclusion, a reconciled value slightly below the tighter range is reconciled for the subject in consideration of the specific location, zoning regulations, and frontage. The following table presents the valuation conclusion for the whole property. CONCLUDED LAND VALUE $ PSF SF Unrounded Total Fee Area $3.00 x 144,489 $433,467 = $433,467 Indicated Value:$433,467 Compiled by CBRE © 20 CBRE, Inc. Valuation Analysis – Whole Property 37 Cost Approach – Whole In estimating the replacement cost new for the subject, the following methods/data sources have been utilized (where available): x the comparative unit method, utilizing the Marshall Valuation Service (MVS) cost guide, published by Marshall and Swift, LLC; x the subject’s actual construction costs (where available); and x cost estimates from local contractors MARSHALL VALUATION SERVICE Direct Cost Salient details regarding the direct costs are summarized in the Cost Approach Conclusion at the end of this section. The MVS cost estimates include the following: 1. average architect’s and engineer’s fees for plans, plan check, building permits and survey(s) to establish building line; 2. normal interest in building funds during the period of construction plus a processing fee or service charge; 3. materials, sales taxes on materials, and labor costs; 4. normal site preparation including finish grading and excavation for foundation and backfill; 5. utilities from structure to lot line figured for typical setback; 6. contractor’s overhead and profit, including job supervision, workmen’s compensation, fire and liability insurance, unemployment insurance, equipment, temporary facilities, security, etc.; 7. site improvements (included as lump sum additions); and 8. initial tenant improvement costs are included in MVS cost estimate. However, additional lease-up costs such as advertising, marketing and leasing commissions are not included. Base building costs (direct costs) are adjusted to reflect the physical characteristics of the subject. Accessory improvements that are not generally counted as rentable area are also analyzed by the square-foot method. Items not included in the primary building or accessory improvement cost estimates such as parking, walks, signage, landscaping, and miscellaneous site improvements are analyzed by the Unit-in-Place method based on the typical units for these items in which their costs are typically quoted. After estimating the base cost, multipliers are applied to account for local cost differences and the time since the estimates were made. After estimating the base cost, multipliers are applied to account for local cost differences and the time since the estimates were made. © 20 CBRE, Inc. Valuation Analysis – Whole Property 38 Local Contractor Estimates Where possible, local contractor estimates are utilized instead of estimates from cost manuals. This estimate is local and is not subject to the same indirect costs and local multipliers that apply to the MVS figures. The additional sources for cost(s) is/are below: •Fencing Costs o Phillip’s Fences (469) 309-9062 Indirect Cost Several indirect cost items are not included in the direct building cost figures derived through the MVS cost guide. These items include entrepreneurial incentives or developer’s overhead (general and administrative costs), land planning, property taxes, legal and insurance costs, local development fees and contingencies. An estimate of 10% has been included in the unit costs for indirect costs. Entrepreneurial Profit Entrepreneurial profit represents the return to the developer and is separate from contractor’s overhead and profit. An estimate of 15% has been included in the unit costs for entrepreneurial profit. Cost New Similar methodology is employed to estimate the cost new for ancillary and site improvements. Where possible, local contractor estimates are utilized instead of estimates from cost manuals. Several local contractors were contacted to provide cost estimates. These estimates are local and are not subject to the same indirect costs and local multipliers that apply to the MVS figures. Depreciated Cost Estimate To complete the analysis of the improvements and arrive at a value indication for the subject, depreciation is estimated and applied to the estimated Cost New. Depreciation is generally estimated on a straight-line basis for newer construction and or by the Age-Life method for older properties, which takes into consideration ongoing maintenance and renovations. The current condition and apparent ages of the subject improvements provides the appraiser with fundamental criteria for estimating depreciation. There is no substantial functional or external obsolescence noted in the subject. Depreciation is primarily a function of the effective age and condition of the improvements. © 20 CBRE, Inc. Valuation Analysis – Whole Property 39 The following table summarizes the depreciated value estimates for the subject improvements. COST APPROACH SUMMARY Improvement Source/MVS Sec & Pg Reconciled Unit Cost Quantity Cost New Phys. Dep. % Total Depreciation Value 5-Strand Barbed Wire Fencing - S/L Contractor $15.00 15 LF $225 60% $135 $90 5-Strand Barbed Wire Fencing - E/L Contractor $15.00 222 LF $3,330 60% $1,998 $1,332 Total $1,422 Compiled by CBRE COST APPROACH CONCLUSION The value estimate is calculated as follows. COST APPROACH CONCLUSION - WHOLE PROPERTY Depreciated Value of Improvements $1,422 Land Value $433,467 Total Value by the Cost Approach $434,889 Compiled by CBRE © 20 CBRE, Inc. Reconciliation of Value – Whole Property 40 Reconciliation of Value – Whole Property The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Land Value $433,467 Cost Approach N/A Sales Comparison Approach N/A Income Capitalization Approach N/A Compiled by CBRE The sales comparison approach for land is utilized to develop and opinion of land value because market participants rely on this method. The subject is valued as vacant land so the cost approach is not applicable. The subject is vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. © 20 CBRE, Inc. Part to be Acquired 41 Part to be Acquired Part to be Acquired The right of way acquisition is noted in green and the subject outline is noted in yellow. The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. SUBJECT ROW © 20CBRE, Inc. Part to be Acquired 42 DESCRIPTION AND HIGHEST AND BEST USE – PART TO BE ACQUIRED Part to be Acquired © 20 CBRE, Inc. Part to be Acquired 43 ACQUISITION SUMMARY Parcel ID/Number Parcel 38 Acquisition Length W/L - 222.19 feet; E/L - 222.14 Acquisition Width N/L - 30.00 feet; S/L - 30.00 Highest and Best Use of Acquisition Area The acquisition does not have sufficient physical characteristics to support independent development. Therefore, its highest and best use is to serve as part of the whole property. ACQUISITION INTEREST Parcel 38 Acquisition Type Roadway - Fee Simple Right of Way Rights Being Acquired Surface Only Percent of Fee Encumbered 100% (Majority of Rights Acquired) Balance of Rights Remaining 0% ACQUISITIONS The client has provided exhibits with the size and configuration for the proposed (± 6,665 SF) Right of Way. The proposed acquisition is located along the eastern property line/Westgate Drive frontage. Acquisition Valuation The value of the land is based upon their pro-rata contributory value to the whole property. The acquisitions do not have the requisite characteristics to function as an independent economic unit due to small size and shape. The highest and best use of the acquisition areas is as an integral part of the whole site. As such, the land value in the part to be acquired is based on same unit value as the whole property. VALUATION OF PARTIAL ACQUISITION - LAND Partial Acquisition Unit Value Unrounded Value (Rounded) Parcel 38 6,665 SF x $3.00 $19,995.00 $19,995 Total $19,995 Compiled by CBRE Area © 20 CBRE, Inc. Part to be Acquired 44 Photos of the site improvement(s) in the acquisition area are shown below. The itemized value(s) are shown on page 4. 5-Strand Barbed Wire Fencing – S/L 5-Strand Barbed Wire Fencing – E/L VALUATION OF PARTIAL ACQUISITION - IMPROVEMENTS 5-Strand Barbed Wire Fencing - S/L 15 LF x $6.00 /LF $90 5-Strand Barbed Wire Fencing - E/L 222 LF x $6.00 /LF $1,332 Total Value of Improvements in Acquisition Area $1,422 Compiled by CBRE VALUATION OF PARTIAL ACQUISITION - TOTAL Land in Acquisition Area $19,995 Improvements in Acquisition Area $1,422 Total Acquisition Value $21,417 VALUATION OF THE REMAINDER BEFORE THE ACQUISITION The value of the remainder before the acquisition is a mathematical computation where the value of the acquisition is subtracted from the value of the whole property. The cost, sales comparison, and income capitalization approaches are not analyzed in the appraisal of the remainder before the acquisition. The resultant value is the remainder immediately before the acquisition, as set forth in the following table; it is compared to the value of the remainder after the taking to determine potential damages or enhancements to the remainder. REMAINDER BEFORE VALUATION SUMMARY Value of Whole Property Value of Partial Acquisition Value of Remainder Before the Acquisition $434,889 - $21,417 = $413,472 © 20 CBRE, Inc. Remainder After 45 Remainder After Remainder After Aerial The valuation of the remainder after the acquisition takes into consideration any severance damage accruing to the remainder as a result of the condemnation. Impacts to the remainder that are considered to be community damages in the State are excluded. REMIANDER © 20CBRE, Inc. Remainder After 46 The intended use of the acquisition will be in conjunction with the construction of the Westgate Drive Improvement Project. Remainder Access No change in access is expected as a result of the acquisition of the report. Legal Conformance The subject was legally conforming before the acquisition and the acquisition will not change that status for the Remainder. Market Conformance The Remainder will be functional for its intended use and typical for the neighborhood after the acquisition is complete. The following chart summarizes the salient characteristics of the Remainder property. REMAINDER SUMMARY ANALYSIS - REMAINDER COMPARISON Physical Description Whole Property - Before Acquisition Remainder After the Acquisition Gross Site Area 3.3170 Acres 144,489 Sq. Ft. 3.3170 Acres 144,489 Sq. Ft. Primary Road Frontage Westgate Drive 222 Feet Westgate Drive 222 Feet Shape Topography Ingress/Egress Points Zoning District Flood Zone Comparative Analysis Access Visibility Functional Utility Traffic Volume Adequacy of Utilities Landscaping Drainage Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Yes No Unknown Detrimental Easements 00 X 0 X Encroachments 00 X 0 X Deed Restrictions 00 X 0 X Source: Various sources compiled by CBRE Legally Permissible via Westgate Drive Zone X (Unshaded) Unchanged Unchanged Unchanged Unchanged Unchanged Unchanged Average Unchanged Zone X (Unshaded) Rectangular Generally Level R2 - Residential Rating Provider Average Average Average Average Legally Permissible via Westgate Drive Average Appears adequate Rectangular Generally Level R2 - Residential Unchanged Unchanged Unchanged Unchanged Unchanged City of Denton City of Denton Atmos Energy Various Various Rating © 20 CBRE, Inc. Remainder After 47 HIGHEST AND BEST USE – REMAINDER PROPERTY AS VACANT Legally Permissible The acquisition will not affect the legal conformance of the Remainder to current zoning regulations. Physically Possible The Remainder will be similarly suited for the legally permissible uses that were achievable in the whole property before the acquisition. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Financially Feasible Given the remainder’s size, zoning, and its surrounding development, the financially feasible use for the remainder property after the acquisition is similar to that of the whole property. Accordingly, residential use is considered feasible. Maximally Productive - Conclusion Based on the information presented above and upon information contained in the Area and Neighborhood analysis, the highest and best use of the Remainder property after the acquisition, as vacant, would be for residential use. Analysis of the subject and its respective market characteristics indicate the most likely buyer, as vacant, would be an owner-user or developer. © 20 CBRE, Inc. Land Value – Remainder After 48 Land Value After – Remainder Based on comparative analysis, the following chart summarizes the adjustments warranted to each comparable. A detailed description of each transaction is included in the addenda. REMAINDER - LAND SALES ADJUSTMENT GRID Remainder Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor Shawn P. Robertson & Nayurel Robertson Oakmont Partners JV, L.P.Luis Reyes HK Golden Legacy, LLC, a Texas limited liability company Grantee Ayman Zghyer & Ali Altamimi JAS Technologies LLC Armando Ruiz and Rocio Alanis Ikechukwu Abana Date of Sale Mar-22 Mar-23 Feb-23 Aug-22 Jun-22 Address W/L of Westgate Drive, North of W. Windsor Drive S/L of Jackson Road, East of Thomas J. Egan Road 4505 State School Road 4610 Miller Road 1018 Mockingbird Lane City, State Denton, TX Krum, TX Denton, TX Denton, TX Denton, TX Gross Acres 3.1640 7.4900 1.0383 1.0000 2.6100 Gross Square Feet 137,824 326,264 45,230 43,560 113,692 Actual Sale Price $418,400 $170,000 $135,000 $350,000 Adjusted Sale Price 1 $418,400 $170,000 $135,000 $352,000 Unit Price Per SF $1.28 $3.76 $3.10 $3.10 Property Rights Conveyed 0% 0% 0% 0% Financing 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% Market Conditions (Time) 8% 0% 0% 0% 0% Adjusted $/SF $1.28 $3.76 $3.10 $3.10 Location 10%0%10%0% Size 10% -10% -10% -5% Shape 5%0% 0% 0% Frontage/Access 0% 0% 0% 0% Zoning/Use 0% 0% 0%-5% Utilities 5%0% 0% 0% Net Adjustment 30% -10% 0% -10% Indicated Unit Value $1.66 $3.38 $3.10 $2.79 Estimated Unit Value $3.00 Compiled by CBRE The same comparables and adjustments that were applicable in the valuation of the whole property before the acquisition are applicable in the valuation of the Remainder After. The following table represents the value conclusion of the Fee Area Remainder: CONCLUDED LAND VALUE $ PSF SF Unrounded Total Fee Area Remaining $3.00 x 137,824 $413,472.00 = $413,472 Compiled by CBRE © 20 CBRE, Inc. Reconciliation – Remainder After 49 Remainder After Value Conclusion The Remainder After valuation is conducted under a hypothetical condition consisting of the valuation of the subject property as if the proposed project has already been completed. Based on our research and analysis, we have concluded that the Remainder After is not adversely impacted by the proposed permanent easement. A summary of the valuation of the Remainder After the acquisition is provided in the table below. VALUATION SUMMARY - REMAINDER Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements $0 Contributory Land Value (Itemized) Fee Area Remaining (137,824 SF) $3.00 $413,472 Reconciled Final Value $413,472 Compiled by: CBRE MARKET IMPACT/DAMAGES The difference between the Remainder Before and the Remainder After results in the indicated damages associated with the proposed acquisition, if any. In this instance, the Remainder Before is greater than the Remainder After resulting from the loss in functionality of the recessed entrance in the remainder. The table below presents the damages valuation summary. REMAINDER IMPACT/DAMAGE VALUATION SUMMARY Value of Remainder Before the Acquisition Value of Remainder After the Acquisition Market Impact/ Damage $413,472 - $413,472 = $0 © 20 CBRE, Inc. Temporary Easements 50 COST TO CURE In order for the property to function as optimally as before the acquisition in the remainder, it is necessary to replace the 5-strand barbed wire fencing along the eastern property line. The appraisers believe there is ample room to do this. The costs to cure for these improvements are based on the same costs used in the Whole Property. However, in order to avoid double compensation, the contributory value of the improvements in the part acquired (and/or any damages) are deducted from the replacement cost new (RCN) to result in the appropriate Cost to Cure. Lastly, a 10% contingency cost is added to the Cost New subtotal to reflect contractor price changes and/or overruns. The calculation of the Cost to Cure is given below: COST TO CURE Improvement #Units Cost per Unit RCN (Rounded) Compensation Paid Net Cost Due 5-Strand Barbed Wire Fencing - E/L 222 LF $15.00 $3,330 ($1,332) $1,998 Subtotal $3,330 $1,998 Contingency 10% $333 Total Cost to Cure $2,331 Compiled by CBRE © 20 CBRE, Inc. Summary of Compensation 51 Summary of Compensation In the final accounting, the estimate of total compensation includes the value of the acquisition, the difference between the appraisers’ opinion before and after the acquisition, and any potential curative costs or temporary construction easements. These opinions are based upon market data available as of the effective date of the appraisal. These estimates are totaled to arrive at the opinion of total compensation as follows. CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$434,889 Part(s) Being Acquired $21,417 Remainder Before Consideration of Damages $413,472 Remainder After Consideration of Damages $413,472 Net Damages or (Benefits)$0 Net Cost to Cure (Temporary Damages) $2,331 Total Compensation $23,748 © 20 CBRE, Inc. Assumptions and Limiting Conditions 52 Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. © 20 CBRE, Inc. Assumptions and Limiting Conditions 53 (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles (“ESG”), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. © 20 CBRE, Inc. Assumptions and Limiting Conditions 54 10. CBRE assumes no responsibility for any costs or consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. © 20 CBRE, Inc. Addenda ADDENDA © 20 CBRE, Inc. © 20 CBRE, Inc. Addenda Addendum A LAND SALE DATA SHEETS © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 1 Property Name 7.490 Acres of Land Address S/L of Jackson Road, East of Thomas J. Egan Road Krum, TX 76249 County Denton Govt./Tax ID 215373 Area Measurement(NRA) Land Area Net 7.490 ac/ 326,264 sf Land Area Gross 7.490 ac/ 326,264 sf Site Development Status Raw Utilities Water and Electric, No Sewer Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage 233 ft on Jackson Road Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0355G/ Apr 2011 Zoning Not Zoned Entitlement Status N/A Proposed Use or Development Residential Development Transaction Details Type Sale Primary Verification Listing Broker, Cami Riley Interest Transferred Fee Simple Transaction Date 03/21/2023 Condition of Sale None Recording Date 03/22/2023 Recorded Buyer Ayman Zghyer & Ali Altamimi Sale Price $418,400 Buyer Type N/A Financing Cash to Seller Recorded Seller Shawn P. Robertson & Nayurel Robertson Cash Equivalent $418,400 Marketing Time 3 Month(s) Capital Adjustment $0 Listing Broker Cami Riley (940) 243-5478 % Interest Purchased 100% Doc # 2023-27847 Adjusted Price $418,400 Adjusted Price / ac and / sf $55,861 / $1.28 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This is the sale of 7.490 acres of vacant land located along the south line of Jackson Road, east of Thomas J Egan Road in Krum, Texas. The site has a rectangular shape with generally level topography. Based on FEMA flood maps, the site is located outside of the floodplain. According to the deed, approximately 0.11 acre of the site is located within an existing roadway. The site is not currently zoned and has access to water and electric, but no sewer is available; thus, a septic would be required. The site sold in March of 2023 for $418,400 or $1.28 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 2 Property Name 1.0390 Acres of Land Address 4505 State School Road Denton, TX 76210 County Denton Govt./Tax ID 1012714 Area Measurement(NRA) Land Area Net 1.039 ac/ 45,260 sf Land Area Gross 1.038 ac/ 45,230 sf Site Development Status Raw Utilities All Available Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Irregular Primary Frontage N/A Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0387H/ Jun 2020 Zoning R1: Residential Entitlement Status N/A Proposed Use or Development Residential Transaction Details Type Sale Primary Verification Listing Broker, Chase Traughber Interest Transferred Fee Simple Transaction Date 02/28/2023 Condition of Sale Arms-Length Recording Date 03/02/2023 Recorded Buyer JAS Technologies LLC Sale Price $170,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Oakmont Partners JV, L.P. Cash Equivalent $170,000 Marketing Time 1 Month(s) Capital Adjustment $0 Listing Broker Chase Traughber (972) 515-0045 % Interest Purchased 100% Doc # 2023-19853 Adjusted Price $170,000 Adjusted Price / ac and / sf $163,619 / $3.76 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 1.0390 acres of land at 4505 State School road in Denton, Texas. The site has generally level topography, contains no areas of floodplain, has public water, sewer, and electric available, and is currently zoned R1: Residential. The property sold in February 2023 for a reported sale price of $170,000, or $3.76 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 3 Property Name 1.000 Acres on Land Address 4610 Miller Road Denton, TX 76249 County Denton Govt./Tax ID 73972 Area Measurement(NRA) Land Area Net 1.000 ac/ 43,560 sf Land Area Gross 1.000 ac/ 43,560 sf Site Development Status Raw Utilities All Available Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape Rectangular Primary Frontage 158 ft on Miller Road Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0355G/ Apr 2011 Zoning R4 - Residential Entitlement Status N/A Proposed Use or Development Residential Transaction Details Type Sale Primary Verification Diego Cortes (469) 600-5205 Interest Transferred Fee Simple Transaction Date 08/08/2022 Condition of Sale Arm's Length Recording Date 08/09/2022 Recorded Buyer Armando Ruiz and Rocio Alanis Sale Price $135,000 Buyer Type N/A Financing Cash to Seller Recorded Seller Luis Reyes Cash Equivalent $135,000 Marketing Time 1 Month(s) Capital Adjustment $0 Listing Broker Rogers Healy and Associates % Interest Purchased 100% Doc # Adjusted Price $135,000 Adjusted Price / ac and / sf $135,000 / $3.10 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This is the sale of a 1.00-acre lot of vacant land located along the south line of Miller Road, east of Masch Branch Road, within the city limits of Denton. The site is rectangular and located outside of the 100-year floodplain. Public water and sewer are available at the site, and it is zoned R4 -Residential by the City of Denton. According to the listing agent, the site sold in August 2022 for $135,000, or $3.10 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Sale Land - Single Unit Residential No. 4 Property Name 2.610 Acres of Land Address 1018 Mockingbird Lane Denton, TX 76209 County Denton Govt./Tax ID Multiple Area Measurement(NRA) Land Area Net 2.610 ac/ 113,692 sf Land Area Gross 2.610 ac/ 113,692 sf Site Development Status N/A Utilities All Available Maximum FAR N/A Max Allow Bldg Units/Density N/A Min Land Bldg Ratio N/A Shape L Shaped Primary Frontage 95 ft on Mockingbird Lane Secondary Frontage N/A Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0380G/ Apr 2011 Zoning R2: Residential Entitlement Status N/A Proposed Use or Development Residential Lots Transaction Details Type Sale Primary Verification Listing Broker Interest Transferred Fee Simple Transaction Date 06/08/2022 Condition of Sale None Recording Date 06/09/2022 Recorded Buyer Ikechukwu Abana Sale Price $350,000 Buyer Type Private Investor Financing Cash to Seller Recorded Seller HK Golden Legacy, LLC, a Texas limited liability company Cash Equivalent $350,000 Marketing Time 2 Month(s) Capital Adjustment $2,000 Listing Broker Eric Torres (817) 202-7473 % Interest Purchased 100% Doc # 2022-86179 Adjusted Price $352,000 Adjusted Price / ac and / sf $134,866 / $3.10 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This represents the sale of 2.61 acres located at 1018 Mockingbird Lane in Denton, Texas. The property is generally level and L-shaped. All utilities are available to the site and the site is not encumbered by floodplain. The site is zoned R2: Residential. The listing broker noted that there were plans to divide the site into smaller residential lots. The site sold in June of 2022 for $350,000 or $3.08 per square foot. There is a shed located on the site that did not contribute value. A demolition cost has been included to account for the shed. With this capital adjustment the value is $352,000 or $3.10 per square foot. © 20 CBRE, Inc. © 20 CBRE, Inc. Addenda Addendum B PROJECT INFORMATIONS © 20 CBRE, Inc. © 20 CBRE, Inc. 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Addenda Addendum C QUALIFICATIONS © 20 CBRE, Inc. © 20 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL TEAM LEAD / TEXAS Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Director, Austin, TX T +1 512 499 4911 E cathy.thomas@cbre.com Lic. TX 1336636 G Professional Experience Catherine Thomas is an Executive Vice President with CBRE’s Valuation & Advisory Services group in Austin, Texas and co-manages the Texas Right of Way Appraisal Team. Ms. Thomas has over twenty years of real estate appraisal and consulting experience with the majority of her experience being in right-of-way. Her appraisal background includes analysis and appraisal of properties for litigation, right-of-way and other purposes under eminent domain, as well as lending. She is a MAI, SRA and AI-GRS designated member of the Appraisal Institute and holds the Right-of-Way Appraiser certification (R/W-AC) of the International Right of Way Association (IRWA). Ms. Thomas has served on the board of directors for IRWA Austin Chapter 74 since 2014, being elected Chapter Secretary in 2021, Chapter Treasurer in 2022 and Chapter Vice President in 2023; she currently serves as Chapter President 2024-2025. Ms. Thomas is well versed in providing litigation support for ongoing cases and has provided expert testimony in numerous special commissioners’ hearings across Texas; her eminent domain experience includes appraisal of full and partial fee and easement acquisitions for numerous utility providers, municipalities and governmental entities, as well as property owners, throughout Texas. Awards IRWA Chapter 74 Professional of the Year (2020) Pro Affiliations / Accreditations ௅Certified General Appraiser, State of Texas ௅Appraisal institute, Designated Member (MAI, SRA, AI-GRS) ௅International Right of Way Association (R/W-AC) ௅Certified Department of Transportation Appraiser, State of Texas ௅American Taekwondo Association, 3rd Degree Black Belt Education ௅St. Edward’s University, Master of Arts in Human Services ௅The University of Texas at Austin, Bachelor of Arts ௅Continuing Education, various Appraisal Courses © 20 CBRE, Inc. © 20 CBRE, Inc. ƉƉƌĂŝƐĞƌ͗Catherine A Thomas >ŝĐĞŶƐĞη͗ TX 1336636 G >ŝĐĞŶƐĞdžƉŝƌĞƐ͗01/31/2027 Chelsea Buchholtz Executive Director Certified General Real Estate Appraiser ,ĂǀŝŶŐƉƌŽǀŝĚĞĚƐĂƚŝƐĨĂĐƚŽƌLJĞǀŝĚĞŶĐĞŽĨƚŚĞƋƵĂůŝĨŝĐĂƚŝŽŶƐƌĞƋƵŝƌĞĚ ďLJƚŚĞdĞdžĂƐƉƉƌĂŝƐĞƌ>ŝĐĞŶƐŝŶŐĂŶĚĞƌƚŝĨŝĐĂƚŝŽŶĐƚ͕KĐĐƵƉĂƚŝŽŶƐ ŽĚĞ͕ŚĂƉƚĞƌϭϭϬϯ͕ĂƵƚŚŽƌŝnjĂƚŝŽŶŝƐŐƌĂŶƚĞĚƚŽƵƐĞƚŚŝƐƚŝƚůĞ͗ ĞƌƚŝĨŝĞĚ'ĞŶĞƌĂůZĞĂůƐƚĂƚĞƉƉƌĂŝƐĞƌ &ŽƌĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶŽƌƚŽĨŝůĞĂĐŽŵƉůĂŝŶƚƉůĞĂƐĞĐŽŶƚĂĐƚd> Ăƚǁǁǁ͘ƚĂůĐď͘ƚĞdžĂƐ͘ŐŽǀ͘ d,Z/Ed,KD^ ϱϬϬtϮE^dZd͕^h/dϭϳϬϬ h^d/E͕dyϳϴϳϬϭ © 20CBRE, Inc. © 20CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL – FORT WORTH Allison Jackson, SR/WA, R/W-AC Vice President, Fort Worth, TX T +1 817 806 1042 M +1 817 899 6440 E Allison.jackson@cbre.com Lic. TX 1380451-G Professional Experience Allison Jackson, SR/WA, R/W-AC, is a Vice President of the Valuation & Advisory Services Group within the South-Central Region. Located in the Fort Worth office, Ms. Jackson has over a decade of real estate appraisal and consulting experience throughout the State of Texas, with a primary focus on right of way valuations and expert witness testimony support. Prior to joining CBRE in 2018, Ms. Jackson was with JLL after their 2016 acquisition of her previous employer, Integra Realty Resources. Ms. Jackson was with Integra Realty Resources for over eight years serving as an Analyst before being promoted to Senior Analyst. During her tenure, she assisted in valuation and consulting services on various property types, working extensively on eminent domain assignments. Ms. Jackson’s experience in appraisal includes projects for the Texas Department of Transportation (TxDOT), various local municipalities, Trinity River Authority (TRA), ONCOR, Dallas Area Rapid Transit, Tarrant Regional Water District, TEXRail and various other pipeline and electrical transmission line companies. Ms. Jackson is a senior right of way professional within the International Right of Way Association as she holds the SR/WA, €nd R/W-AC designations. In addition, Ms. Jackson is a Candidate for Designation within the Appraisal Institute actively pursuing her MAI designation. Pro Affiliations / Accreditations ௅Certified General Appraiser, State of Texas ௅International Right of Way Association, Chapter 36 Member (SR/WA,R/W-AC Designations) ௅Appraisal Institute, Candidate for Designation Education ௅Texas A&M University, College Station, Texas ௅Master of Real Estate (2009) ௅Bachelor of Business Administration, Marketing (2008) ௅Successfully completed numerous real estate related courses and seminars sponsored by the International Right of Way and the Appraisal Institute © 20 CBRE, Inc. © 20 CBRE, Inc. ƉƉƌĂŝƐĞƌ͗Allison Christine Jackson >ŝĐĞŶƐĞη͗ TX 1380451 G >ŝĐĞŶƐĞdžƉŝƌĞƐ͗06/30/2025 Chelsea Buchholtz Commissioner Certified General Real Estate Appraiser ,ĂǀŝŶŐƉƌŽǀŝĚĞĚƐĂƚŝƐĨĂĐƚŽƌLJĞǀŝĚĞŶĐĞŽĨƚŚĞƋƵĂůŝĨŝĐĂƚŝŽŶƐƌĞƋƵŝƌĞĚ ďLJƚŚĞdĞdžĂƐƉƉƌĂŝƐĞƌ>ŝĐĞŶƐŝŶŐĂŶĚĞƌƚŝĨŝĐĂƚŝŽŶĐƚ͕KĐĐƵƉĂƚŝŽŶƐ ŽĚĞ͕ŚĂƉƚĞƌϭϭϬϯ͕ĂƵƚŚŽƌŝnjĂƚŝŽŶŝƐŐƌĂŶƚĞĚƚŽƵƐĞƚŚŝƐƚŝƚůĞ͗ ĞƌƚŝĨŝĞĚ'ĞŶĞƌĂůZĞĂůƐƚĂƚĞƉƉƌĂŝƐĞƌ &ŽƌĂĚĚŝƚŝŽŶĂůŝŶĨŽƌŵĂƚŝŽŶŽƌƚŽĨŝůĞĂĐŽŵƉůĂŝŶƚƉůĞĂƐĞĐŽŶƚĂĐƚd> Ăƚǁǁǁ͘ƚĂůĐď͘ƚĞdžĂƐ͘ŐŽǀ͘ >>/^KE,Z/^d/E:<^KE ϯϬϭKDDZ^dZd ^h/dϯϭϯϭ &KZdtKZd,͕dyϳϲϭϬϮ © 20CBRE, Inc. © 20CBRE, Inc.