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2100 Hinkle Dr. 012025
An Appraisal Report of A Proposed Partial Acquisition of A 19.860 acre Tract of Land Located at 2100 Hinkle Drive, Denton, Denton County, Texas 76201 TPA File #: 25.0245 As of January 20, 2025 Prepared for Specialty Land Services, LLC Attention: Mr. Buddy Minett & Mr. Matthew Hutto 8780 3rd Street, Suite 110/120 Frisco, Texas 75034 Prepared by 2301 Ohio Drive, Suite 150 Plano, Texas 75093 (214) 297-9000 www.ToddPropertyAdvisors.com 2301 Ohio Drive, Suite 150 ▲ Plano, Texas 75093 ▲ www.ToddPropertyAdvisors.com TELEPHONE: (214) 297-9000 ▲ E-MAIL: mitchell@toddpa.com March 5, 2025 Mr. Buddy Minett & Mr. Matthew Hutto Specialty Land Services, LLC 8780 3rd Street, Suite 110/120 Frisco, Texas 75034 RE: An appraisal regarding the potential acquisition of a fee simple acquisition and a drainage easement on a 19.860 acre (865,118 square foot) tract of land located at 2100 Hinkle Drive in Denton, Denton County, Texas 76201. Dear Mr. Minett and Mr. Hutto: We have personally inspected the above-referenced property and have prepared an opinion of value in accordance with your request. The purpose of this appraisal is to provide an opinion of market value of the fee simple estate of the subject property in “as is” condition and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the effective date of appraisal. The potential acquisition involves a fee simple acquisition and a drainage easement by the City of Denton. All data considered pertinent to the preparation of this appraisal has been investigated and analyzed and the results of the analysis together with our conclusions may be found within the following report. The definition of market value has been included within the accompanying report. Market value is defined as follows: “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within the reasonable future.” This appraisal report sets forth the identification of the subject property, information regarding the subject property and its surrounding area, comparable sales data, the results of the investigations and analyses, and the reasoning leading to our conclusions. This appraisal involves an appraisal report in compliance with the Scope of Work Rule of the 2024-2025 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP) as provided by the Appraisal Foundation. It involves the application of the Sales Comparison Approach to value, as well as a Certification. All methodology utilized to arrive upon the opinion of market value can be found in The Appraisal of Real Estate, Fifteenth Edition, as published by The Appraisal Institute. Mr. Buddy Minett & Mr. Matthew Hutto March 5, 2025 Page Two In our professional opinion, and after careful consideration of the various factors influencing this appraisal, the following illustrates the “as is” market value for the subject property and the recommended compensation, as of the effective date of appraisal, January 20, 2025: Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Denton will not permanently limit ingress/egress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re-analysis. Further, these opinions of value are contingent upon the subject property being free of any hazardous wastes deposited thereupon by the present or previous owners/tenants of the site which would adversely affect the value of the property. The existence of any such materials was not observed upon the physical inspection of the property. However, we are not qualified to detect these substances and it is recommended that an expert in this field be obtained if the client has suspicion of these materials and substances existing on the property. It is also assumed there is full compliance with all requirements of Title III, of the Americans with Disabilities Act (ADA) which became effective January 26, 1992. No responsibility is assumed by the appraisers for any such conditions, or for any expertise of architectural/design knowledge and cost required identifying such non-compliance. ,0;D4>5C74-7>;4&A>?4ACG ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C (4<08=34A45>A42@D8B8C8>= (4<08=34A5C4A2@D8B8C8>= =70=24<4=CB 0<064B >BCC>DA4 ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C *>C0;(42><<4=343><?4=B0C8>= %?8=8>=B>5(42><<4=343><?4=B0C8>= Mr. Buddy Minett & Mr. Matthew Hutto March 5, 2025 Page Three There was no information required or deemed pertinent to the completion of this appraisal, which was not available to the undersigned unless otherwise stated in this report. Additionally, the value conclusions found within this report are exclusive of any personal property, fixtures, or intangible items that are not real property. Thus, the reported values within this report pertain to the real property only. In order for the opinion of value set forth herein to be considered valid this letter of transmittal must not be considered separately or independently of the attached appraisal report, and this appraisal report must be used in its entirety and must not be separated into parts. Should any questions regarding this appraisal arise, please contact us. Respectfully submitted, Mitchell B. Todd, MAI Michael A. Keane, MAI President Senior Vice President State Certification #TX-1323514-G State Certification #TX-1380384-G mitchell@toddpa.com michael@toddpa.com TABLE OF CONTENTS Section I - Introduction Executive Summary .............................................................................................................2 Identification of the Property ................................................................................................5 Objective of the Appraisal ....................................................................................................5 Identification of the Appraisal Problem ................................................................................6 Date of Value Opinion ..........................................................................................................6 Date of Report ......................................................................................................................6 Appraisal Report Option ......................................................................................................6 Intended Use/Intended User ................................................................................................6 Statement of Prior Services Rendered ................................................................................6 Property Rights Appraised ...................................................................................................6 Definition of Market Value....................................................................................................7 Statement of Ownership ......................................................................................................7 Scope of Work .....................................................................................................................7 History of the Subject Property ............................................................................................8 Estimate of Exposure Time..................................................................................................9 Estimate of Marketing Time .................................................................................................9 Hypothetical Conditions .................................................................................................... 10 Extraordinary Assumptions ............................................................................................... 10 Section II – External Influences Regional Analysis ............................................................................................................. 12 City/Neighborhood Analysis ............................................................................................. 22 Section III - Factual Descriptions and Analyses Site Description and Analysis ........................................................................................... 28 Zoning and Land Use Restrictions ................................................................................... 37 Tax Analysis ...................................................................................................................... 39 Subject Property Photographs .......................................................................................... 40 Subject Property Photographs .......................................................................................... 41 Highest and Best Use Analysis ........................................................................................ 43 The Appraisal Process ...................................................................................................... 46 Section IV – Land Valuation Land Valuation .................................................................................................................. 48 Comparable Land Sales Presentation .............................................................................. 49 Land Sales Analysis.......................................................................................................... 55 Conclusion of Land Value – Whole Property ................................................................... 65 Section V - Valuation Conclusion Final Opinion of Value ...................................................................................................... 70 Section VI – Certification & Assumptions & Limiting Conditions Assumptions and Limiting Conditions .............................................................................. 76 Section VII - Addendum Qualifications & Certifications of the Appraisers Survey SECTION I - INTRODUCTION TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 2 EXECUTIVE SUMMARY SALIENT FACTS & CONCLUSIONS Property Appraised: A 19.860 acre (865,118 square foot) tract of land. The source of the land size is the survey provided by Westwood Professional Services, Inc. According to the survey, the portions of the site from which property rights will potentially be acquired involve a 9.860 acre (429,521 square foot) fee simple acquisition and a 0.474 acre (20,635 square foot) drainage easement. Property Type: Vacant land Location: East line of Hinkle Drive, north of US 380, Denton, Denton County, Texas 76201 Date of Inspection: January 20, 2025 Date of Valuation: January 20, 2025 Date of Report: March 5, 2025 Property Rights Appraised: Fee Simple Estate Ownership: Seyed Moosavi TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 3 Land Size: Total Land: 19.860 acres (865,118 square feet) Fee Simple Acquisition: 9.860 acres (429,521 square feet) Drainage easement #1: 0.474 acres (20,635 square feet) Status of Property: As of the date of the appraisal, the subject property consists of a 19.860 acre (865,118 square foot) tract of land. The source of the land size is the survey provided by Westwood Professional Services, Inc. The subject is located at 2100 Hinkle Drive in Denton, Denton County, Texas. According to the survey, the portions of the site from which property rights will potentially be acquired involve a 9.860 acre (429,521 square foot) fee simple acquisition and a 0.474 acre (20,635 square foot) drainage easement. The subject property currently has access to all utilities. Zoning: MN, Mixed-Use Neighborhood HIGHEST AND BEST USE: As If Vacant: Commercial Development SCOPE OF WORK Appraisal Problem Identification: To provide an opinion of market value of the fee simple estate of the subject property in “as is” condition and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the effective date of appraisal (January 20, 2025). Objective of the Appraisal: To provide an opinion of market value of the fee simple estate of the subject property in “as is” condition and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the effective date of appraisal (January 20, 2025). It is our understanding that this opinion of value will be utilized by the client to assist in determining compensation regarding the potential acquisitions by the City of Denton. Intended User: Specialty Land Services, LLC, and The City of Denton Client: Specialty Land Services, LLC Valuation Approaches Used: Sales Comparison Approach TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 4 CONCLUSION OF VALUES ,0;D4>5C74-7>;4&A>?4ACG ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C (4<08=34A45>A42@D8B8C8>= (4<08=34A5C4A2@D8B8C8>= =70=24<4=CB 0<064B >BCC>DA4 ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C *>C0;(42><<4=343><?4=B0C8>= %?8=8>=B>5(42><<4=343><?4=B0C8>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 5 IDENTIFICATION OF THE PROPERTY As of the date of the appraisal, the subject property consists of a 19.860 acre (865,118 square foot) tract of land. The subject is physically located along the east line of Hinkle Drive, north of US 380 and has a municipal address of 2100 Hinkle Drive in Denton, Denton County, Texas. According to the survey, the portions of the site from which property rights will potentially be acquired involve a 9.860 acre (429,521 square foot) fee simple acquisition and a 0.474 acre (20,635 square foot) drainage easement. The subject property currently has access to all utilities. A summary of the legal description of the subject tract is located below followed by an aerial photograph of the subject property. All that certain tract or parcel of land lying and being situated in the R. Beaumont Survey, Abstract No. 31, Denton County, Texas. *Aerial photograph provided by Google Earth. The orange lines depict the boundaries of the subject tract. The red lines depict the boundaries of the proposed fee simple acquisition, and the blue lines depict the boundaries of the proposed drainage easement. Boundaries are approximations based on the information provided and may not be exact. OBJECTIVE OF THE APPRAISAL To provide an opinion of market value of the fee simple estate of the subject property in “as is” condition and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the effective date of appraisal (January 20, 2025). It is our understanding Subject Tract 19.860 acres (865,118 SF) Fee Simple Acquisition 9.860 acres (429,521 SF) Drainage Easement 0.474 acres (20,635 SF) TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 6 that this opinion of value will be utilized by the client to assist in determining compensation regarding the potential acquisitions by the City of Denton. IDENTIFICATION OF THE APPRAISAL PROBLEM The appraisal problem of this report is to provide an opinion of the market value of the fee simple estate of the subject tract and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the date of appraisal (January 20, 2025). DATE OF VALUE OPINION An inspection of the property was conducted on January 20, 2025. The effective date of valuation is January 20, 2025. DATE OF REPORT The transmittal date of this appraisal is March 5, 2025. APPRAISAL REPORT OPTION This is an Appraisal Report that complies with the reporting requirements set forth under Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents sufficient information to enable the client and other intended users as identified to understand it properly. The depth of discussion contained in this report is specific to the needs of the client and the intended use of the appraisal as noted herein. INTENDED USE/INTENDED USER This appraisal report has been prepared for and is intended to be used by Specialty Land Services, LLC, and the City of Denton, their counsel, and assigns. The intended use of this appraisal report has been identified by the appraisers based on communications with the client, at the time of the assignment to assist in determining compensation regarding the potential acquisitions by the City of Denton. Therefore, the intended users of this report are Specialty Land Services, LLC, and the City of Denton, their counsel, and assigns. Use of this report by others is not intended by the appraisers. No one other than the intended users should rely on the opinion of value or any other conclusions contained in this report. STATEMENT OF PRIOR SERVICES RENDERED Todd Property Advisors, Mitchell B. Todd, MAI and Michael A. Keane, MAI provided appraisal services regarding this property in January 2025. PROPERTY RIGHTS APPRAISED The fee simple estate is defined as "absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 7 domain, police power, and escheat"1 This differs from the leased fee estate. “In appraisal practice, the lessor’s, or landlord’s, position is referred to as the leased fee. The rights of the lessor (the leased fee owner) and the lessee (leaseholder) are specified by contract terms contained in the lease". 2 Easement ownership is defined as “the right to use another’s land for a stated purpose”. 3 The fee simple estate of the subject is being appraised, due to the lack of existence of any lease agreements, which would encumber the property. This ownership interest is subject to any zoning ordinances, easements, restrictions of record and other applicable codes and ordinances of record. DEFINITION OF MARKET VALUE The appropriate definition of market value for this assignment is as follows: “Market Value” is the price the property would bring when offered for sale by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying, taking into consideration all those 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) STATEMENT OF OWNERSHIP According to information provided by the Denton Central Appraisal District and the vesting deed records, title of the subject is vested in Seyed Moosavi. SCOPE OF WORK The scope of work is defined as the type and extent of research and analysis in an assignment. The scope of this appraisal assignment is to provide a credible opinion of the market value of the subject property in “as is” condition and recommended compensation for the part to be acquired and damages to the remainder, if any, as of the effective date of appraisal (January 20, 2025). In compliance with the 2024-2025 Edition of the Uniform Standards of Professional Appraisal Practice (USPAP), and upon the request of the client, an appraisal report has been prepared utilizing the Scope of Work Rule. The Scope of Work Rule within USPAP emphasizes the requirements for problem identification, determining the appropriate scope of work, and disclosure of the scope of work that was performed in appraisal, appraisal review, and appraisal consulting assignments. The following is a discussion of the scope of work undertaken within the context of this report. 1 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 73. 2 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 62. 3 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 58. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 8 The scope of work for this appraisal was determined by the complexity of the assignment and the reporting requirements of this appraisal report type, including: the definition of market value, real property interests valued, assumptions and limiting conditions, and certifications. The appraisers considered this scope of work to be adequate to complete a credible appraisal of the subject property. The appraisers believe that this scope of work would meet the expectations and needs of parties who are regular intended users for similar assignments and that this scope of work is substantially similar to what an appraiser’s peers actions would be in performing the same or similar assignment. Based upon our education and experience appraising similar properties for drainage easement purposes and our knowledge of the local market, we are competent to complete this appraisal assignment. The subject appraisal research began with a review of the three year history of the subject property prior to the date of appraisal by conducting research of the Denton County public records. This research was facilitated by several on-line resources including CoStar.com, the Denton Central Appraisal District, and Loopnet.com, as well as several other resources including owners, buyers, lenders and other parties knowledgeable of the subject property. The Regional, City, and Neighborhood Analyses are presented in a summarized format and include information gathered through inspection of the areas, review of published secondary data, such as that provided by the North Central Texas Council of Governments, and a variety of resources available from the Cities of Dallas, Fort Worth, and other surrounding communities comprising the Metroplex. The site analysis included an inspection by the appraisers and a review of FEMA flood insurance rate maps, and aerial photographs via satellite. The property inspection included a visual survey of the subject on January 20, 2025. The applicable zoning ordinance of the subject property was verified with the zoning records of the City of Denton. The tax rates, assessed values, and information regarding the subject's tax debt were verified by the Denton Central Appraisal District and the individual taxing jurisdictions via the appraisal district’s website. Primary data regarding the subject submarket and the immediate surrounding area was verified by the appraisers through an inspection of the area, and interviews conducted with owners, real estate brokers, and management company representatives. To complete this appraisal assignment, the Sales Comparison Approach was considered and utilized. All data gathered within this approach regarding properties similar to the subject have been previously verified with either the Grantor, the Grantee, or their representatives through their respective sources. A more detailed explanation of the methods and techniques employed in these approaches is located in the Valuation Process section of this report. HISTORY OF THE SUBJECT PROPERTY The subject property sales history was researched through a search available from the Denton Central Appraisal District property records, CoStar.com, and Loopnet.com among various other sources. According to the Denton County Deed Records, title of the subject is vested in Seyed TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 9 Moosavi. Furthermore, to the best of our knowledge, the subject was not listed for sale or under contract to be sold at the time of this appraisal. ESTIMATE OF EXPOSURE TIME A reasonable exposure period is the amount of time necessary to expose a property to the open market in order to achieve a sale. According to USPAP 2024-2025, exposure time is defined as, “an estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.” It is our opinion that a period of six to nine months, with a contract period of 90 days is reasonable. This results in a total exposure time until closing at a title company of nine to twelve months. We performed due diligence in estimating the exposure period for the subject property by surveying the marketing period for comparable properties which had recently sold or were placed under contract. Additionally, the brokers contacted in verifying the comparable improved sales within this report generally indicated that exposure times during the last twelve months have typically ranged from six to twelve months. It was observed that properties are often marketed for several months or years with very little interest shown in the property. However, they eventually sell after significant price reductions. A common tendency among the majority of these sales is that once these properties experience price reductions, which are believed to bring them into alignment with the rest of the market, their exposure time was typically less than one year. The price reductions and recognition of market derived values is reflected in the comparables' sales prices. This is to the extent that the sales price as represented by the value conclusion for the subject is attractive to an investor today. Thus, this attractive price should result in a normal exposure of less than one year. Therefore, it is our opinion that had the subject property been marketed at or very near the "as is" value conclusion contained herein, it would have been sufficiently attractive to entice an investor to purchase the property within a nine to twelve month exposure period. ESTIMATE OF MARKETING TIME Marketing time is defined as “An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal.” 4 Thus, marketing time is an estimate of the amount of time necessary to sell a property after the date of appraisal, which differs from exposure time which is a retrospective estimate of the amount of time necessary to achieve a sale prior to the effective date of appraisal. 4 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 117. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 10 It is our opinion that a marketing period of six to nine months, with a contract period of 90 days is reasonable. This results in a total marketing time until closing at a title company of nine to twelve months. We performed due diligence in estimating the marketing period for the subject property by surveying the marketing period for comparable properties which had recently sold or were placed under contract. A common tendency among the majority of the sales is that once these properties experience price reductions which are believed to bring them into alignment with the rest of the market, their marketing period is typically less than one year. For example, properties are often marketed for several years with very little interest shown in the property. However, they eventually sell after significant price reductions. The price reductions and recognition of market derived values is reflected in the comparables' sales prices. This is to the extent that the sales price as represented by the value conclusion for the subject is attractive to an investor today. Thus, this attractive price should result in a normal marketing period of less than one year. Therefore, it is our opinion that if the subject property is marketed at or very near the value conclusion contained herein, it will be sufficiently attractive to entice an investor or user to purchase the property within a twelve month marketing period. HYPOTHETICAL CONDITIONS According to the 2024-2025 USPAP, a hypothetical condition is “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis.” There were no hypothetical conditions utilized within this report. EXTRAORDINARY ASSUMPTIONS According to the 2024-2025 USPAP, an extraordinary assumption is “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” There were no extraordinary assumptions utilized within this report. SECTION II – EXTERNAL INFLUENCES TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 12 REGIONAL ANALYSIS Real Estate is an immobile asset, which is dependent upon the exterior environment for economic viability. The economic climate in which a property is located is both general (the region or area in which a property is located) and specific (the neighborhood). Four forces continually exert influence on real estate values within any environment: social, economic, environmental and governmental. The purpose of this section is to consider all pertinent forces that will have an effect on the use and value of the subject property. The Dallas-Fort Worth-Arlington Consolidated Metropolitan Statistical Area (CMSA) encompasses approximately 9,289 square miles in north central Texas. The Dallas-Fort Worth- Arlington CMSA is comprised of 12 counties: Collin, Dallas, Denton, Tarrant, Johnson, Kaufman, Parker, Rockwall, Hunt, Wise, Delta and Ellis. This CMSA, which is also referred to as the D/FW area or Metroplex, is located 203 miles northeast of Austin, 240 miles northwest of Houston and 206 miles south of Oklahoma City. On a national level, the Metroplex is located in the southern central sector of the country. The Dallas/Fort Worth area is located approximately equidistant from both coasts and from the four major concentrations of population in North America: New York, Chicago, Los Angeles and Mexico City. The following is a discussion of the aforementioned forces that exert influence on property value. Subject Property TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 13 Environmental The Dallas-Fort Worth climate is humid subtropical with hot summers. It is also considered to be continental, characterized by a wide annual temperature range. The amount of precipitation usually varies and ranges from less than 20" to more than 50". D/FW winters are somewhat mild, but occasionally there are sudden drops in temperature. Periods of extreme cold that occasionally occur are short-lived, so that even in January mild weather occurs frequently. During the summer, the high temperatures are associated with fair skies, westerly winds, and low humidity’s. Average high and low temperatures range from 37 F in January to 98 F in August. Rainfall occurs throughout the year, but usually occurs more frequently during the night and also during the spring. Usually, periods of rainy weather last for only a day or two, and are followed by several days with fair skies. Moderate hail may occur on about two or three days a year, only causing slight and scattered damage. However, windstorms occurring during thunderstorm activity may be destructive. Snowfall is rare. The average length of the warm seasons (freeze-free period) is about 249 days, or about 8 months. Thus, the local climate is very conducive of real estate development. The area's topography is basically level in the northern sector to gently rolling in the southern portion. The rolling terrain of the southern sector is due to a geologic formation known as the escarpment. This escarpment consists of a chalky soil that rests on top of shales causing unstable building foundations. The shale soil presents shrink-swell problems for the foundations of buildings that are constructed on it, and the chalk is an unstable soil that crumbles easily, resulting in minor landslides. Transportation As stated above, on a national basis, the Dallas/Fort Worth Metroplex is centrally located, which has resulted in the development of a major transportation network that connects the Metroplex with the rest of the country. This network consists of major thoroughfares, railroad lines and air carriers. In regards to roadways, the Dallas/Fort Worth region is located at the convergence of four Interstate Highways: north-south access is provided by Interstate Highways 35 and 45 (IH- 35 and IH-45); east-west access is provided by IH-20 and IH-30. Two major outer loops provide internal accessibility to the region. LBJ Freeway (IH-635) surrounds Dallas, and IH-820 encompasses Fort Worth. Both of these arteries connect with the interstate highways as well as local streets, thus affording the cities regional as well as internal access. In recent years, greater access and mobility have been expanded to the Metroplex’s surrounding communities. The President George Bush Toll Road (SH-190) is a loop encircling IH-635 that connects IH-30 in Garland/Rockwall to IH-20 in Grand Prairie traversing the communities of Rowlett, Mesquite, Garland, Richardson, Plano, Carrollton, Coppell, Irving, Arlington and Grand Prairie. Additionally, the North Texas Tollway Authority (NTTA) recently opened the Chisholm Trail Parkway connecting the Downtown Fort Worth Business District with communities to the south including Benbrook, Crowley, Joshua and connecting with SH-67 in Cleburne. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 14 Two additional toll roads which serve the Metroplex are the Dallas North Tollway and the Sam Rayburn Tollway (SRT). SH-121(located north of SH-190) has expanded to incorporate and become the SRT. While SH-121 continues to run east-west from Fort Worth to McKinney connecting DFW Airport to other areas of the Metropolitan area, the SRT has provided a larger artery for traffic to flow between the communities of Grapevine, Coppell, Carrollton, Plano, Frisco, Allen and McKinney. The Dallas North Tollway connects downtown Dallas to the rapidly growing areas of Frisco and Prosper. The Sam Rayburn Tollway connects central Collin County to the vicinity of the DFW International Airport. Reference may be made to Mobility 2040 which was adopted by the Regional Transportation Council in March of 2016. This long range strategic plan aims to define the vision for the Region’s transportation system and identify solutions and options. The goals of the plan are to improve mobility, quality of life, and air quality concerns for the cities of Dallas and Fort Worth as well as the surrounding areas. In addition, properties located along or near new or improved thoroughfares should benefit from this plan through better access and exposure. It is worthy to note that the region is also serviced by multiple public transportation services including bus, rail and light rail. These services include Dallas Area Rapid Transit (DART), DART Light Rail, the Fort Worth Transportation Authority (FWTA or The T), the Trinity Railway Express (TRE), and the Denton County Transportation Authority (DCTA). In addition to the various modes of ground transportation, the Metroplex is serviced by a major international airport as well as several other local and regional airports. D/FW International Airport, located midway between Dallas and Fort Worth, has the 2nd largest land area of any other airport in the nation with 17,207 acres and the fourth largest in the world. In 2016, D/FW was responsible for 65,670,697 passengers reaching their destinations, making it the world’s 11th busiest airport in number of passengers, with service provided by 9 international and 11 domestic airlines. As of December 2018 DFW Airport provides transportation to more than 244 destinations including 62 international and 182 domestic destinations with the number of daily flights just under 3,000 including passenger and freight. Additionally, DFW is one of 3 domestic airports and 11 globally providing service to more than 200 destinations around the world. The City of Dallas owns and operates Dallas Love Field. The airfield is located six miles northwest of the downtown central business district and is managed by the City's Department of Aviation. Southwest Airlines is the predominant user of Love Field; however, Alaska Airlines and Delta Airlines also utilize Love Field. In 1963, several airlines had all agreed to seek full repeal of the Wright Amendment; which restricted direct flights to other states from Love Field. In 2008, the airport handled approximately 8,060,000 passengers. On October 13, 2014, the Wright Amendment had been repealed and new non-stop service to several cities began. This has led to significant increases in passenger traffic. Southwest Airlines added numerous other cities in the beginning of 2015. In 2016, the airport handled approximately 15,563,000 passengers. To accommodate the increase in traffic construction on a new parking garage was constructed and opened in 2018. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 15 Commercial air freight service is provided to the region by the Alliance International Centre which is the first development of its type in the world. This Fort Worth based facility comprises a 3,000- acre cargo airport/industrial park. Meacham Field (Fort Worth), Addison Airport (North Dallas) and several other municipal airports, provide for the area’s general aviation needs. Social According to The Appraisal of Real Estate, Fifteenth Edition, social forces studied by appraisers primarily relate to population characteristics. Because the demographic composition of the population reveals the potential demand for real estate, proper analysis and interpretation of demographic trends are required. Real property values are affected not only by population changes and characteristics, but also by the entire spectrum of human activity. The total population, its composition by age and gender, and the rate of household formation and dissolution strongly influence real property values. Social forces are also manifest in attitudes toward education, law and order, and lifestyle options. This section of the report will identify all social forces that may have an effect on the value of the subject property. According to the North Central Texas Council of Governments (NCTCOG) 2023 population estimates, North Central Texas estimated that the region had added approximately 161,433 new residents between 2022 and 2023 for a total population of 8,284,892. A chart detailing the individual county growth rates is located below included the most recent year over year data. The estimated January 1, 2023, population for the NCTCOG region is 8,284,892. Last year the region added 161,433 people, over 4,000 more residents than were added in 2021. Fort Worth (18,943) added more population than any other city, almost double compared to the next closest city. Celina (9,787), Frisco (7,602), Arlington (5,861) and Mansfield (5,245) round out the top 5 growth cities. For the second straight year, Collin County added more than 40,000 new residents while Denton County and Tarrant County each added over 30,000 new people. Since 2020, 453,000 new residents now call north Texas home.” >D=CG$0<4 BC &>? ?A BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= BC &>? 0= 0= C> 0= 1B 70=64 0= C> 0= 70=64 >;;8= 795,390 827,780 851,920 873,840 901,170 932,530 969,780 1,010,330 1,039,540 1,082,760 1,135,058 1,175,974 40,916 3.60% 0;;0B 2,383,790 2,415,060 2,435,800 2,455,050 2,478,970 2,502,270 2,529,150 2,554,770 2,593,570 2,619,040 2,656,297 2,675,009 18,712 0.70% 4=C>= 677,880 714,000 736,900 761,040 784,840 814,560 844,260 874,240 902,190 933,220 975,158 1,006,492 31,334 3.21% ;;8B 152,570 158,070 161,200 165,010 168,690 173,410 183,360 189,820 198,640 206,810 207,623 218,125 10,502 5.06% A0C7 38,340 40,700 41,010 41,460 43,540 43,850 44,200 44,700 45,670 46,180 43,322 43,287 (35) -0.08% >>3 53,670 58,880 61,680 64,400 64,620 64,840 65,060 65,960 66,890 66,920 62,116 62,511 395 0.64% D=C 87,840 90,070 91,240 92,530 93,110 94,350 95,960 97,410 99,300 101,510 104,903 109,127 4,224 4.03% >7=B>= 151,790 155,240 156,710 158,880 161,670 164,970 169,160 173,700 178,260 185,180 193,494 201,427 7,933 4.10% !0D5<0= 104,050 106,400 108,120 109,300 113,530 116,140 119,670 124,850 128,520 132,250 153,130 158,672 5,542 3.62% $0E0AA> 47,940 48,470 48,590 48,900 49,030 49,170 49,740 50,250 50,870 51,670 53,612 55,639 2,027 3.78% &0;>&8=C> 28,290 28,420 28,590 28,710 28,660 28,660 28,710 28,820 28,960 29,360 28,776 29,277 501 1.74% &0A:4A 118,040 120,640 121,830 124,630 127,980 130,150 131,210 134,620 136,600 139,180 152,928 155,607 2,679 1.75% (>2:F0;; 79,570 83,400 85,900 88,200 90,570 93,130 97,990 101,020 107,780 113,350 119,897 124,734 4,837 4.03% )><4AE4;; 8,550 8,690 8,800 8,950 9,230 9,420 9,640 9,820 9,980 10,190 9,662 9,899 237 2.45% *0AA0=C 1,832,660 1,875,930 1,899,900 1,922,470 1,945,320 1,966,440 1,989,810 2,024,030 2,064,340 2,091,320 2,157,741 2,188,951 31,210 1.45% -8B4 59,600 60,920 61,690 61,970 62,240 62,460 62,700 64,060 65,300 66,010 69,741 70,159 418 0.60% >D=CG(468>= 6,619,970 6,792,670 6,899,880 7,005,340 7,123,170 7,246,350 7,390,400 7,548,400 7,716,410 7,874,950 8,123,458 8,284,890 161,432 1.99% TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 16 Economic Economic forces have a direct and obvious effect on property values. The condition of an area's economy in great measure determines the growth or decline of the population, as well as its purchasing power, which affect the demand for goods and services. If an area's economy is in a growth stage, construction of new housing, retail centers and expansions of employment centers occur to accommodate the needs of the population. Conversely, as the unemployment rate rises because of an area's declining economy, some residents move from the area, and those who remain may have decreased disposable incomes, both of which result in a diminished demand for housing as well as goods and services. As occupancy rates for housing, retail facilities, and employment centers decrease, demand for new construction either decreases or may even cease altogether. Characteristics that are considered to be demand-oriented include employment levels, the number and size of basic industries, and the availability of mortgage credit. Economic characteristics that are considered to be supply-oriented include the stock of available vacant and improved properties, occupancy rates, and rental rates. Apartment markets continue to fare better than expected, with occupancy and rents improving in most Texas metros. According to the 3rd Quarter 2024 CoStar analytics report, the Dallas/Fort Worth area apartment asking rent has decreased approximately 1.3% (YOY). Additionally, CoStar reports, “Multifamily demand in Dallas-Fort Worth is rebounding, reflecting greater confidence among households to sign leases. CoStar reports net absorption of about 15,200 units through the first half of 2024, outpacing pre-pandemic levels. Even so, the supply/demand imbalance persists as developers added 21,900 units in the first half of the year, keeping vacancy elevated at 10.9%, up 110 basis points year-over-year and holding near a 20-year high. In turn, rent growth remains negative at -1.3%, dampened by supply-heavy submarkets.” The D/FW Metroplex has an excellent transportation network, a good central U.S. location, and a relatively low cost of living compared to other parts of the U.S., which attracts major corporate employers. D/FW is a major product distribution center and it is a major trade hub with Mexico and other sectors across Latin America. The Emerging Trends in Real Estate markets-to-watch survey for 2018 revealed the Dallas/Fort Worth market as the number-five market to watch. The area is considered to continue strong growth due to projected population increases and corporate relocations. Multiple survey respondents and interviewees mentioned the strong job growth driving the local economy. (Emerging Trends in Real Estate, United States and Canada 2018, PricewaterhouseCoopers LLP and Urban Land Institute). D/FW is also known for its large technology influence, and provides business services such as advertising, data processing, telecommunications, and other computer services. As mentioned previously, the transportation industry will continue to play an important part of the economy, due to D/FW International Airport’s large influence. According to the NCTCOG Forecast 2040, total employment for the region is anticipated to grow in excess of 2,750,000 jobs between 2010 and 2040. Dallas County alone is expected to encounter over 1.3 million new jobs during this time period accounting for more than 45% of the TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 17 projected growth. Collin and Denton counties will account for 18% of the region’s total growth by adding approximately 314,000 and 196,000 new jobs respectively between 2010 and 2040. Tarrant County is anticipated to add approximately 713,000 new jobs during this time period as well. Employment is expected to increase tremendously over the next 20+ years which will only continue to contribute to the growing economy of the region. The following page contains an economic snapshot of the Dallas-Fort Worth-Arlington Metropolitan District (Dallas, Tarrant, Collin, Denton, Rockwall, Johnson, Ellis, Hunt, Kaufman, Wise, Parker, Hood, and Somervell Counties). This information was provided by the Texas Workforce Commission from their December 2024 Economic Profiles and is currently the most recent available. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 18 Dallas-Fort Worth-Arlington MSA December 2024 Ellis Wise Hunt Collin DallasParker Denton Tar rant Kaufman Johnson Hood Somervell Rockwall MSA Labor Force Statistics Dec-24 Nov-24 Dec-23 Yearly Change Civilian Labor Force 4,529,229 4,535,548 4,389,083 140,146 Employed 4,372,817 4,356,364 4,244,664 128,153 Unemployed 156,412 179,184 144,419 11,993 Unemployment Rate 3.5% 4.0% 3.3% 0.2% Texas Labor Force Statistics Dec-24 Nov-24 Dec-23 Yearly Change Civilian Labor Force 15,591,398 15,620,707 15,090,824 500,574 Employed 15,012,362 14,965,379 14,564,917 447,445 Unemployed 579,036 655,328 525,907 53,129 Unemployment Rate 3.7% 4.2% 3.5% 0.2% US Labor Force Statistics Dec-24 Nov-24 Dec-23 Yearly Change Civilian Labor Force 167,746,000 168,164,000 166,661,000 1,085,000 Employed 161,294,000 161,456,000 160,754,000 540,000 Unemployed 6,452,000 6,708,000 5,907,000 545,000 Unemployment Rate 3.8% 4.0% 3.5% 0.3% Historical Unemployment Rates Dec-14Feb-15Apr-15Jun-15Aug-15Oct-15Dec-15Feb-16Apr-16Jun-16Aug-16Oct-16Dec-16Feb-17Apr-17Jun-17Aug-17Oct-17Dec-17Feb-18Apr-18Jun-18Aug-18Oct-18Dec-18Feb-19Apr-19Jun-19Aug-19Oct-19Dec-19Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21Jun-21Aug-21Oct-21Dec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Feb-23Apr-23Jun-23Aug-23Oct-23Dec-23Feb-24Apr-24Jun-24Aug-24Oct-24Dec-240% 2% 4% 6% 8% 10% 12% 14% 16% Texas US Dallas-Fort Worth-Arlington Employment by Size Class (3rd Quarter 2024) Wages by Industry (in millions) (3rd Quarter 2024) QCEW Employment by Size Class data for MSA profiles will be available here in the first quarter of 2025. Current data and chart can be found in the QCEW tab of Popular Downloads athttps://texaslmi.com/Home/PopularDownloads. QCEW Wages by Industry data for MSA profiles will be available here in the first quarter of 2025. Current data and chart can be found in the QCEW tab of Popular Downloads athttps://texaslmi.com/Home/PopularDownloads or the QCEW section of LMI by Category at https://texaslmi.com/LMIbyCategory/QCEW Annual Growth Rate Total Non-agricultural employment Dec-14Feb-15Apr-15Jun-15Aug-15Oct-15Dec-15Feb-16Apr-16Jun-16Aug-16Oct-16Dec-16Feb-17Apr-17Jun-17Aug-17Oct-17Dec-17Feb-18Apr-18Jun-18Aug-18Oct-18Dec-18Feb-19Apr-19Jun-19Aug-19Oct-19Dec-19Feb-20Apr-20Jun-20Aug-20Oct-20Dec-20Feb-21Apr-21Jun-21Aug-21Oct-21Dec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Feb-23Apr-23Jun-23Aug-23Oct-23Dec-23Feb-24Apr-24Jun-24Aug-24Oct-24Dec-24-15% -10% -5% 0% 5% 10% 15% Rate Employment by Industry (December 2024) Employment by Industry (December 2024) Industry Current Month Employment %Monthly Change %Yearly Change Total Nonfarm 4,371,500 0.1% 1.6% Mining, Logging and Construction 256,500 -0.5% 1.9% Manufacturing 315,500 0.2% 1.4% Trade, Transportation, and Utilities 941,000 1.1% 1.0% Information 92,400 -0.1% 1.8% Financial Activities 383,900 0.1% 4.0% Professional and Business Services 791,700 0.3% 0.9% Private Education and Health Services 524,900 -0.5% 2.6% Leisure and Hospitality 428,700 -0.4% 0.4% Other Services 140,700 -1.0% 1.1% Government 496,200 0.0% 1.9% Mining, Loggingand Construction 5.9% Manufacturing 7.2% Trade, Transportation,and Utilities 21.5% Information 2.1%FinancialActivities 8.8% Professional andBusiness Services 18.1% Private Education andHealth Services 12.0% Leisure andHospitality 9.8% OtherServices 3.2% Government 11.4% 2/27/2025 11:03:36 AMPage1of1 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 19 Governmental Although the Metroplex is governed by state and county agencies, the most direct influence on properties lies with the municipalities. The majority of the cities within the nine county area have council-manager forms of government. County and city governments are financed by a combination of property taxes, sales taxes, and miscellaneous taxes, fees, and fines. Property taxes are collected by the various taxing districts based upon market value assessments determined each year by county appraisal districts. No personal or corporate income taxes are levied by any city or county in the CMSA. The state of Texas does impose Franchise Taxes which are an indirect form of corporate income tax. The City of Dallas has a council-manager form of government with the mayor selected at-large, 14 single member district council members, and one city manager. In a council-city management form of government, council members represent the people in their geographic districts. The City Manager is responsible to the council for the administration of business policies that the council has established. Services provided by the city include complete fire protection, police protection, water, sewer and garbage disposal. Electric service is provided by Oncor Electric Company while natural gas is provided by Atmos Energy. Telephone service is provided by AT&T. Fort Worth, like Dallas, utilizes a Council-City Management form of government. The Fort Worth City Council consists of an appointed City Manager, an at-large elected mayor and eight council members. The City manager is the Chief Administrator of the city and is appointed by and accountable to the council. Also, like Dallas, water, sanitation, sewer services, and police and fire protection, as well as street and bridge maintenance are all provided by the City government. The other utility carriers of electricity, gas and telephone are all provided by the companies serving Dallas. Conclusion Total Nonfarm employment expanded by 37,500 positions in December on the heels of a revised gain of 3,600 jobs in November. This brought the series to a record-high level for the third time in the last five months and raised the annual growth rate by one-tenth of a point to 2.0 percent. Monthly growth was almost completely driven by gains in the private sector, which posted an increase of 35,500 jobs and also reached a record-high employment level. Eight of the 11 major industries added jobs over the month, and 10 grew over the year. Five of the 10 private industries achieved new series highs in December. Professional and Business Services led all major industries with 17,800 positions gained over the month in December and achieved the third series employment high in the past five months. All three subsectors added jobs on both a monthly and an annual basis. Trade, Transportation, and Utilities employment hit a seventh new series employment high in eight months with 10,400 jobs gained over the month in December. Leisure and Hospitality employment reached a new series high level in December with an over-the-month gain of 3,700 jobs. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 20 The Texas unemployment rate was unchanged at 4.2 percent in December and rose by three tenths of a point over the year. December marked 35 straight months of rates at or below 4.2 percent beginning February 2022. The U.S. unemployment rate declined slightly to 4.1 percent, increasing by three tenths of a point since December 2023. The Texas civilian labor force grew for a 12th consecutive month with 39,900 persons added in December. The number of employed increased in December by 37,700, while the number of unemployed increased by 2,200. The U.S. civilian labor force grew by 243,000 individuals in December, while the number of employed nationally increased by 478,000 over the month. As illustrated in the recent statistics, the Dallas-Fort Worth-Arlington Metroplex continues to be one of the fastest growing areas of the United States. This trend is expected to continue in the future and through the year 2030, as population is expected to reach 9.1 million. More employers are expected to migrate to D/FW, and therefore provide an increased number of jobs. Dallas/Fort Worth accounts for over 30 percent of the State’s gross regional product and is a national leader in the creation of new jobs, corporate relocations, and technology-related businesses. One of the primary factors in maintaining this employment growth is excellent access to the area provided by a well-developed highway system and D/FW International Airport, as well as an extensive rail transportation system. Since the late 1990s, the D/FW economy has shown good signs of growth and stability. Many experts are guardedly optimistic about the current economic outlook as it compares favorably to a softening national economy and the last two years of erratic energy Civilian Labor Force Estimated for Texas and the United States Seasonally Adjusted (In Thousands) /40A;G /40A;G 42 $>2 42 70=64 D6 D; D6 70=64 8E8;80="01>A >A24 15,575,888 15,536,014 15,130,593 445,295 8E8;80="01>A >A24 168,547,000 168,304,000 167,451,000 1,096,000 <?;>G43 14,922,197 14,884,542 14,542,809 379,388 <?;>G43 161,661,000 161,183,000 161,183,000 478,000 +=4<?;>G43 653,391 651,472 587,784 65,607 +=4<?;>G43 6,886,000 7,121,000 6,268,000 618,000 +=4<?;>G<4=C(0C4 4.2% 4.2% 3.9% 0.3%+=4<?;>G<4=C(0C4 4.1% 4.2% 3.7% 0.4% *."01>A >A24)C0C8BC82B +)"01>A >A24)C0C8BC82B Seasonally Adjusted (In Thousands) Texas Employment by Industry *>C0;$>=06A82D;CDA0;13,867,237 100.0% 13,903,934 100.0% 13,676,434 100.0% -0.3% 1.4% *>C0;&A8E0C4 13,363,541 96.4% 13,403,788 96.4% 13,188,997 96.4% -0.3% 1.3% >>3B&A>3D28=6 2,150,233 15.5% 2,140,428 15.4% 2,095,451 15.3% 0.5% 2.6% $0CDA0;(4B>DA24B0=3#8=8=6 277,135 2.0% 278,989 2.0%271,390 2.0% -0.7% 2.1% >=BCAD2C8>=895,621 6.5% 886,234 6.4% 862,295 6.3% 1.1% 3.9% #0=D502CDA8=6 977,477 7.0% 975,205 7.0% 961,766 7.0% 0.2% 1.6% )4AE824&A>E838=6 11,717,004 84.5% 11,763,506 84.6% 11,580,983 84.7% -0.4% 1.2% *A034*A0=B?>AC0C8>=0=3+C8;8C84B 2,849,474 20.5% 2,840,344 20.4% 2,837,032 20.7% 0.3% 0.4% =5>A<0C8>=233,207 1.7% 234,389 1.7% 240,486 1.8% -0.5% -3.0% 8=0=280;2C8E8C84B 915,076 6.6% 908,983 6.5% 890,895 6.5% 0.7% 2.7% &A>54BB8>=0;0=3DB8=4BB)4AE824B 2,139,662 15.4% 2,131,682 15.3% 2,140,439 15.7% 0.4% 0.0% 3D20C8>=0=3 40;C7)4AE824B 3,152,395 22.7% 3,206,717 23.1% 3,087,073 22.6% -1.7% 2.1% "48BDA40=3 >B?8C0;8CG 1,545,950 11.1% 1,559,295 11.2% 1,531,715 11.2% -0.9% 0.9% %C74A)4AE824B 377,544 2.7% 381,950 2.7%365,906 2.7% -1.2% 3.2% &D1;823<8=8BCA0C8>=503,696 3.6% 500,146 3.6% 487,437 3.6% 0.7% 3.3% >5*>C0; >5*>C0; >5*>C0; 'D0AC4A;G 70=64 /40A;G 70=64 $+)*(/* *"' <?;>G<4=C ' <?;>G<4=C ' <?;>G<4=C TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 21 prices. Dallas/Fort Worth is larger today in population than 27 states, and is a major economic, social, and political center of both Texas and the United States. Due to the changing demographics, the regional economy in general, and the continued stability of the local government, expectations for the region’s future are optimistic. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 22 CITY/NEIGHBORHOOD ANALYSIS A neighborhood is defined in The Appraisal of Real Estate, Fifteenth Edition, published by the Appraisal Institute, as a group of complementary land uses. 5 Land uses within a neighborhood are not necessarily homogeneous, as in a district, but are related in that property values are affected by the same factors. Neighborhood boundaries identify the physical area that influences the value of a subject property. These boundaries may coincide with observable changes in prevailing land use or occupant characteristics. Physical features such as the type of structures, street patterns, terrain, vegetation, and lot sizes tend to identify land use districts. Transportation arteries, bodies of water, and changing elevation can also be significant boundaries. To identify the neighborhood boundaries, we have followed the following four steps (summarized), as recommended within The Appraisal of Real Estate: 1) Examine the subject property; 2) Examine the area's physical characteristics, 3) Determine preliminary boundaries on a map; and 4) Determine how well the preliminary boundaries correspond to the demographic data.6 5 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 138. 6 Ibid. page 141-142. Subject Property TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 23 The following neighborhood description will include a definition of the boundaries of the subject neighborhood, a discussion of the primary thoroughfares, types of improvements along these thoroughfares, the density of development, secondary street infrastructure, and a discussion of the type of commercial uses within the neighborhood. The subject neighborhood, as defined herein, is considered to be the immediate competing trade area for the subject property, taking into account the various types of land uses present or reasonably probable in the neighborhood, patterns and rates of growth, traffic patterns and density, and the density of land use, among other factors considered in the previously suggested steps. All of these factors are considered influential in the determination of the value of the subject. Neighborhood Boundaries The subject site is physically located along the east line of Hinkle Drive, north of US 380 in Denton, Texas. The neighborhood is defined as the city limits of Denton. The neighborhood has good accessibility given its proximity to Interstate 35E and Interstate 35W and the major transportation nodes. Location The subject property is located in the City of Denton, Texas, in Denton County. The site is heavily influenced by the Dallas/Forth Worth Metroplex. The subject property is located approximately 30-35 miles northwest of the Dallas Central Business District. Primary access to and from Denton is provided by IH-35W from Fort Worth and IH-35E from Dallas. Major thoroughfares surrounding Denton include Loop 288 to the north and east of Denton, and IH-35 to the south and west. North/south access through Denton is provided by U.S. Highway 77 while major east/west thoroughfares include McKinney, Oak, and Hickory Streets as well as University Drive. Population As can be seen in the following charts provided via the Site to do Business, the 2023 population estimate was 149,125. The population has grown at a steady rate of 1.99%/annually since 2020. Population between 2023 and 2028 is expected to grow at a steady rate of 2.47%/annually. The charts for population and household growth are located below. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 24 Income According to the Site to do Business, the 2023 median household income within the neighborhood was $67,380, which is slightly below the national average of $72,603. Income is projected to grow at a relatively steady rate of 2.96% over the next five years. Located below is a chart detailing the median, average and per capita income for the subject neighborhood. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 25 Employment According to the Site to do Business, employment was relatively high with an unemployment rate of 4.1%. The main industries within the city include Management/Business/Financial, Professional and Services. Approximately 64.8% of residents work in white-collar jobs. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 26 Conclusion In recent years, the neighborhood has been impacted positively by a recovery and growth in the local and national economy. The progress has continued into 2025 and is anticipated to continue into the near future. The D/FW market in general experienced economic growth and remained attractive for investment opportunities. Given this, indications are that market conditions within this neighborhood are moving in a positive direction. SECTION III - FACTUAL DESCRIPTIONS AND ANALYSES TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 28 SITE DESCRIPTION AND ANALYSIS Site description consists of comprehensive factual data, information on land use restrictions, a legal description, other title and record data, and information on pertinent physical characteristics. Site analysis goes further. It is a careful study of factual data in relation to the market area characteristics that create, enhance, or detract from the utility and marketability of specific land or a given site as compared with other sites that it competes with. 7 Location and Legal Description The subject is located along the east line of Hinkle Drive, north of US 380 in Denton, Denton County, Texas. The following is a summarized legal description for the subject site. All that certain tract or parcel of land lying and being situated in the R. Beaumont Survey, Abstract No. 31, Denton County, Texas. Size and Shape According to the Denton Central Appraisal District, the subject consists of a tract of land totaling 19.860 acres (865,118 square feet). The tract is rectangular in shape. According to the surveys (located below), the portions of the site from which property rights will potentially be acquired involve a 9.860 acre (429,521 square foot) fee simple acquisition and a 0.474 acre (20,635 square foot) drainage easement. 7 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 165. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 29 Proposed Fee Simple Acquisition Survey TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 30 Proposed Fee Simple Acquisition Survey TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 31 Proposed Easement Survey TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 32 Proposed Easement Survey TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 33 Access and Exposure The subject site currently has access to Hinkle Drive and is considered to have average ingress/egress. At the subject, Hinkle Drive is a two-lane, bi-directional, concrete paved secondary thoroughfare. Therefore, the subject is considered to have average access and exposure characteristics. Parcel Map Subject Property Topography The topography of the subject tract is generally level and considered at street grade. Furthermore, the topography should not limit the use of the property. Environmental Concerns The existence of any hazardous substances or materials was not observed upon the physical inspection of the tract. However, we are not qualified to detect these substances. It should be noted that the opinions of value found within this report are contingent upon the subject property being free of any hazardous wastes deposited thereupon by the present or previous owners/tenants of the sites, which would adversely affect the value of the property. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 34 Flood Zone Approximately 60 percent of the subject tract appears to lie within the 100 year flood plain and/or regulatory floodway, according to Community-Panel Number 48121C0360G dated April 18, 2011, as prepared by the Federal Emergency Management Agency (FEMA) National Flood Insurance Program. Additionally, due to the shape of the parcel and the location of the flood zone, the northeast corner appears undevelopable, due to the shape of the tract and the location of the flood plain area. This northeast corner represents an additional approximately 12 percent of the subject property. A copy of the FEMA map for the subject property is located as follows: Subject Property Soils Strict attention should be taken to the soils, insofar as preliminary site work preparation and excavation is concerned, as damage may occur to improvements if proper precautions are not undertaken. However, these soil characteristics are very common throughout the region and should not seriously hinder the development potential of the site, provided proper site preparation and planning is undertaken. Based upon the extent of development in the subject neighborhood, TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 35 there is no anticipated difficulty with improvements built upon these subsoil conditions, assuming proper design and workmanship. Surrounding Land Uses The land usage surrounding the subject property predominantly consists of commercial and single-family residential uses. Single-family residential uses are located to the southwest and west. An assisted living community is located to the north. The North Texas Fair and Rodeo is located to the east. Commercial uses are located to the south. An aerial photograph depicting the subject in relation to surrounding properties is located as follows. Subject Property Easements According to the survey provided, it appears that there is a drainage easement that bisects the property running in a northwesterly direction from the southeast corner of the subject. Furthermore, there is a public utility easement and an additional drainage easement located in the southeast quadrant of the subject. It should be noted that the portion of the subject which lies within an existing drainage easement is located within the regulatory floodway. Therefore, the presence of this drainage easement does TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 36 not adversely affect the developability of this portion of the subject above and beyond the adverse influence of the regulatory floodway. Aside from the aforementioned easements, for purposes of this analysis, we are assuming that only typical easements exist and that they would not, and/or have not adversely affected development of the subject property. If this assumption is not correct it could necessitate re- analysis. We were not furnished, and it is beyond the defined scope of our assignment to obtain title work for the subject property. Utilities and Public Services The subject property has access to all utilities. Telephone and electricity services are available from multiple providers, and natural gas is provided to the area from Atmos Energy. The subject is serviced by public services, including police and fire protection. Conclusion The subject property is located in the City of Denton in Denton County. The site is comprised of 19.860 acre (865,118 square feet), is rectangular in shape, and has access to all utilities. The site has average access/exposure characteristics for a commercial-oriented property. The topography of the subject tract is level and should not limit the use of the property. Approximately 60 percent of the subject tracts appears to lie within the 100 year flood plain and/or regulatory floodway. Additionally, due to the shape of the parcel and the location of the flood zone, the northeast corner appears undevelopable, even though it is not included in the flood zone. This northeast corner represents an additional approximately 12 percent of the subject property. Soil and subsoil conditions are not anticipated to severely restrict the development potential of the site. According to the survey, the tract appears to be encumbered by several easements or encroachments. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 37 ZONING AND LAND USE RESTRICTIONS The subject tract is located within the corporate city limits of Denton, Texas and is currently partially zoned MN, Mixed-Use Neighborhood. According to the City of Denton Code of Ordinances, the purpose of MN, Mixed-Use Neighborhood is “to support compatibility between higher-intensity mixed-use areas and adjacent residential and commercial areas. This district contributes to a vibrant environment for pedestrians and bicyclists and includes varying densities of residential, neighborhood-serving retail, restaurants, commercial, and office uses that are sensitive to the surrounding built and natural context in scale and form”. This zoning district allows for a variety of commercial uses. A copy of the City of Denton zoning map for the subject can be found following this paragraph. Zoning Map Subject Property Furthermore, there are no other known deed restrictions, either public or private, that would further significantly limit the utilization of the subject property. This statement should not be taken as a guarantee or warranty that no such restrictions exist. Deed and title examinations by a competent attorney on the property appraised is recommended if any questions regarding such restrictions should arise. Deed restrictions are matters legal in character within the State of Texas, and only title examination by a qualified attorney can result in an informed opinion. Should there be a question regarding the compliance with any existing deed restrictions, we recommend a title TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 38 examination by a licensed and qualified title attorney to the extent assurances to this matter are desired. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 39 TAX ANALYSIS The Texas legislature has provided for a unified system of taxation for the assessment and collection of real property taxes. In each county an appraisal district is established for the purpose of listing and assessing all real estate within the county. Real property is presumably assessed at 100 percent of market value. Once the taxable value of the property is established by the appraisal district, each of the individual taxing authorities within the county set their own tax rates. The subject property is assessed by the Denton Central Appraisal District. The following table depicts the taxing jurisdictions and historical property tax rates pertaining to the subject property: As the above table indicates, the overall tax rate for property located within this portion of Denton County have been decreasing by 3.47 percent per year during the five year period. Tax rates are anticipated to remain relatively flat in subsequent years.The subject account number and assessed 2024 values are as follows: The subject has a 2024 assessed value of $570,547. This equates to a tax expense of $11,013 based upon the 2024 tax rate of $1.930189/$100 of assessed value. The subject property appears to be under assessed. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 40 SUBJECT PROPERTY PHOTOGRAPHS Viewing northwest across the subject property Viewing northeast across the subject property TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 41 SUBJECT PROPERTY PHOTOGRAPHS Viewing west along the subject property’s southern boundary Viewing southeast across the subject property TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 42 SUBJECT PROPERTY PHOTOGRAPHS Viewing north down Hinkle Drive Viewing south down Hinkle Drive TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 43 HIGHEST AND BEST USE ANALYSIS The economic principles which affect the market value of real property also play a significant role in forming the property's highest and best use. In all valuation assignments, value opinions are based upon use. The highest and best use of a property provides the foundation for a thorough investigation of the competitive positions of market participants. Consequently, highest and best use can be described as the foundation upon which market value rests. The highest and best use of a property is defined as follows: The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 8 With regard to vacant land, the highest and best use is generally regarded as that use among all reasonable, alternative uses, which yields the highest present land value, after payments are made for labor, capital, and coordination. It is to be recognized that in cases where a site has existing improvements on it, the highest and best use may very well be determined to be different from the existing use. Analysis of the highest and the best use of a property as improved implies that the existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one. Furthermore, the existing use will continue, unless and until land value in its highest and best use exceeds the total value of the property in its existing use. Implied within this definition is recognition of the contribution of that specific use to community environment or to community development goals in addition to wealth maximization of individual property owners. In appraisal practice, the concept of highest and best use represents the premise upon which value is based. In the context of most probable selling price (market value) another appropriate term to reflect highest and best use would be most probable use. The most probable use is defined as follows: 1) The use to which a property will most likely be put based on market analysis and the highest and best use conclusion. The most probable use is the basis for the most probable selling price of the property. 2) Highest and best use in the context of market value. 9 8 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 88. 9 Ibid. page 126. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 44 To test for the most feasible or the highest and best use for land as vacant all logical and feasible alternatives must be analyzed. All alternative uses must meet four criteria. The criteria are as follows: 1) The legal use of the site – what uses of the site are permitted under applicable zoning ordinances and other legal restrictions. 2) The physical use of the site – what potential uses of the site are physically possible. 3) The feasible use of the site – what possible and legally permissible use of the site will produce a positive return. 4) The maximum productive use of the site – among the highest financially feasible uses, the use that provides the highest rate of return, or value (given a constant rate of return), is the highest and best use. While some investors/developers seek to maximize their returns, most seem to operate on the belief that the available information is too imperfect to permit optimization or maximization. It appears that the typical investor is satisfied if their investment can be expected to return a yield that will meet their standards. Thus, it is possible for more than one single use to be feasible for a site if the uses meet an investment criteria of the typical investor/developer for a property. Generally accepted professional appraisal practice dictates that in appraising improved property, the highest and best use be estimated under two different premises. First, the highest and best use of the site “as vacant and available” must be estimated. The second analysis estimates the highest and best use of the property “as improved or proposed to be improved.” Highest and Best Use of the Site As If Vacant The first question to be answered, What uses are legally permissible? requires a review of the zoning restrictions applicable to the site. As indicated in the Zoning and Land Use Restrictions section of this report, the tract is zoned MN, Mixed-Use Neighborhood. According to the City of Denton Code of Ordinances, the purpose of MN, Mixed-Use Neighborhood is “to support compatibility between higher-intensity mixed-use areas and adjacent residential and commercial areas. This district contributes to a vibrant environment for pedestrians and bicyclists and includes varying densities of residential, neighborhood-serving retail, restaurants, commercial, and office uses that are sensitive to the surrounding built and natural context in scale and form”. This zoning district allows for a variety of uses. Given the subject’s current zoning, various types of commercial and residential uses are considered to be a legally permissible use of the site. Addressing the second question, What uses of the site are physically possible? It requires a review of the physical characteristics of the site. The subject tract is rectangular in shape and is physically located along the east line of Hinkle Drive, north of US 380 in Denton, Denton County, Texas. The subject property consists of 19.860 acres. The size of a parcel of land is important in terms of feasible development alternatives, and, ultimately, the value of the land. Optimal size is TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 45 that which allows the highest marginal returns on investment after development. A tract of land which is too large is worth more in subdivided parcels whereas a tract which is too small for development is worth more when combined with contiguous sites. A less than optimally sized small tract may be further constrained if contiguous tracts are currently developed to their highest and best use. In such a case, assemblage may not be a viable alternative. The immediate surrounding area is predominantly residential and commercial uses. This 19.860 acre site would be physically feasible to develop due to its shape and size. The site is generally level which is beneficial for most types of development. Approximately 60 percent of the subject appears to lie within the flood plain and/or regulatory floodway, with an additional 12 percent that appears undevelopable due to the shape of the tract. As discussed previously, the portion of the subject which lies within an existing drainage easement is located within the regulatory floodway. Therefore, the presence of this drainage easement does not adversely affect the developability of this portion of the subject above and beyond the adverse influence of the regulatory floodway. Given the property's location along a secondary thoroughfare, the subject site would lend itself well to commercial development. Answering the third and fourth questions, What uses are financially feasible? and What uses are maximally productive? requires an analysis of potential income based on demand that could be expected from all physically possible and legally permissible uses. Upon inspection of the surrounding neighborhood, the current land sales within the subject neighborhood have been acquired for either investments or commercial development. Given the subject’s location along a secondary thoroughfare commercial use appears to be the most likely potential use of the site and is considered to be financially feasible. Therefore, the highest and best use of the site is for commercial use. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 46 THE APPRAISAL PROCESS The appraisal process represents a logical analysis of the factors that bear upon the present value of real estate. In this process, three basic approaches are typically used by appraisers: 1) the Cost Approach, 2) the Income Capitalization Approach, and 3) the Sales Comparison Approach. The Cost Approach is based upon the proposition that an informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject. First, the subject's site is valued (as if vacant) by comparing it to the sale of similar sites using the Direct Sales Comparison Approach. The reproduction cost new is then estimated for the subject improvements, and from this, an amount is deducted for depreciation from all causes to arrive at a value via the Cost Approach. The Sales Comparison Approach is based upon the proposition that an informed purchaser would pay no more for a property than the cost to him of acquiring a similar property with the same utility. In this approach, similar properties that have recently sold are compared to the subject. Notable differences in the utilized comparables are adjusted to the subject in the process. Comparisons are made and are typically based upon the terms of sale, age, location, size, financing, and physical characteristics. The adjustments are abstracted from and/or otherwise supported to represent the actions of buyers and sellers in the market. The value range that is indicated by the adjusted comparable sales is correlated or reconciled into a final value opinion via this approach. The Income Capitalization Approach is the process in which the anticipated flow of future benefits (dollar income or amenities) is discounted to a present worth figure through a capitalization or direct discount procedure. All expenses attributable to the real estate are deducted from an effective gross income estimate to arrive at forecasts of applicable net income streams. The net income streams are then "capitalized" or discounted into value by market abstracted rates. The purpose of ownership is to generate income and provide to the owner a sufficient return on his/her investment to make the purchase of such a property attractive. The subject property consists of 19.860 acres of vacant land. Therefore, we have provided a value of land via the Sales Comparison Approach utilizing comparable land sales. SECTION IV – LAND VALUATION TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 48 LAND VALUATION “Sales comparison is usually the preferred methodology for developing an opinion of site value. When this method is used, most of the techniques for selecting comparable sales and making adjustments that are described in Chapter 20 [of The Appraisal of Real Estate, Fifteenth Edition] can be applied to site valuation. When there are not enough sales of similar parcels for the application of sales comparison, alternative methods such as market extraction, allocation, land residual analysis, and various income capitalization techniques may be used.” 10 All of these land valuation procedures, which are summarized below, are derived from the three traditional approaches to value. – Sales Comparison – Sales of similar, vacant parcels are analyzed, compared, and adjusted to provide a value indication for the land being appraised. – Market Extraction – An estimate of the contributory value of improvements is deducted from the total sale price of a property to arrive at an indicated land value for the comparable. The indicated land values of the comparables are then compared to provide a value indication for the land being appraised. – Allocation – A ratio of site value to property value is extracted from comparable sales in competitive locations and applied to the value of the improved subject property or comparable properties to develop the site value. – Direct Capitalization: Land Residual Analysis – The net operating income attributable to the land is capitalized or the cost to construct an improvement is deducted from the value as if completed to produce an indication of the land’s contribution to the total property. – Direct Capitalization: Ground Rent Capitalization – A market-derived capitalization rate is applied to the ground rent of the subject property. – Yield Capitalization: Discounted Cash Flow Analysis-Subdivision Development Analysis – Direct and indirect costs and entrepreneurial incentive are deducted from an estimate of the anticipated gross sales price of the finished lots or units, and the net sales proceeds are discounted to present value at a market-derived rate over the development and absorption period. If entrepreneurial incentive is not deducted as a line-item expense, then the discount rate must reflect the full effect of any profit. When sufficient market data is available, the best method of site valuation is the Sales Comparison Approach. This method calls for comparison weighing and relating sales data to the site being appraised. The data can be analyzed and the indications of adjustments for time, location, physical utility and conditions of sale, can then be applied so as to result in a meaningful value opinion for the subject site. For a sale to be truly comparable, the highest and best use of the comparable land should be the same or similar to the appraised site. This is the method of site valuation, which will be utilized in this report. 10 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, pages 339. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 49 COMPARABLE LAND SALES PRESENTATION The subject market was searched for sales of tracts of land most comparable to the subject. After sales were selected for more analysis, the public records were researched and verification of the details of the sales was obtained from parties knowledgeable concerning the sales. We then analyzed the specific differences and made appropriate adjustments, abstracting these adjustments from the market whenever possible. The final reconciliation of these adjusted sales indicated a value of the subject property. A map depicting the location of the sales in comparison to the subject property is located below. S TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 50 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 51 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 52 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 53 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 54 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 55 LAND SALES ANALYSIS The process of comparing similar market sales to the subject property is fundamental to the sales comparison approach, and usually provides the most credible and reliable indication of value. If a comparable property has an element of comparison that is superior to the subject property, a downward adjustment is made to the comparable sale. If the element of comparison is inferior, then an upward adjustment is made. The adjustment process is not an exact science. Experience, knowledge and objectivity are required on the part of the appraiser for the application of the appropriate level of adjustment. Competent analysis leads us to a narrow range of variance among the adjusted comparable sales, and to a high degree of confidence in reconciliation. The analyses of the adjustments we considered relevant are found in the following paragraphs. Financing Terms All of the comparable land sales were consummated with the sellers effectively receiving cash in exchange for their consideration in the property; therefore, no adjustments were required for advantageous seller financing. Property Rights Conveyed This adjustment involves the type of real property interest that is conveyed in a sales transaction. All of the comparable transactions conveyed fee simple ownership rights; thus, no adjustments were required for this factor. Conditions of Sale Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the seller wants to quickly liquidate his assets or where there is an atypical financial, business, friend or family relationship between the principals involved which affect the selling price of the property. All of the Comparables had similar conditions of sale to that of the subject and will not be adjusted. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 56 Expenditures After Sale This adjustment accounts for any expenses the purchaser of the property occurs immediately after the purchase of the property. Some examples of these items could include environmental clean-up, demolition costs, deferred maintenance, HVAC replacement/repair, renovations, parking lot repair/replacement, cosmetic upgrades, etc... Adjustments for this item usually reflect the motivation of the buyer and seller involved with a transaction. Adjustments would be necessary for transactions where the buyer is aware that such expenditures after the sale must occur in order to operate the property sufficiently. Any necessary adjustments for Expenditures After Sale have been made within the individual Comparable write-ups. Therefore, no further adjustments are necessary. Market Conditions This adjustment is generally made after the other transactional adjustments have been made (property rights conveyed, financing, conditions of sale, and expenditures after sale). This adjustment addresses potentially differing market conditions between the subject property (date of appraisal), and the sales dates of the Comparables. As a test, the sales adjusted prices when compared to the subject were chronologically arrayed by sale date and only adjusted for the appropriate physical conditions in order to determine if adjustments for changing market conditions is warranted. The table below depicts the Price/Sq. Ft. for each comparable which has been adjusted for the other transactional adjustments (property rights conveyed, financing, conditions of sale, and expenditures after sale). The % Physical Adjustment column indicates the total adjustments made for all physical characteristics (location, size, corner, utilities, topography zoning, flood plain, etc.) as shown in the adjustment grid at the conclusion of this section of the report. The Adjusted Price/Sq. Ft. is calculated by applying the % Physical Adjustment for each sale to its Price/Sq. Ft. By analyzing the comparable sales adjusted prices per square foot after all other adjustments have been made, trends in land prices over the time period may become apparent. However, given the small sample size, the appraisers’ judgment is also relied upon based upon knowledge gained from experience in the market over this time period. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 57 In closely analyzing the market Comparables, there is not a clear trend in sales prices over this time period. Additionally, market participants indicate that market conditions have been improving. Therefore, each Comparable will be adjusted upwards by 5 percent per year. Therefore, in our opinion, the market conditions adjustments are considered reasonable. Location/Access The axiom that "location is the most important physical characteristic of real estate" suggests that this component warrants paramount consideration in the adjustment process. Therefore, the locations of the Comparables are the first of the physical characteristics to be considered.The sales researched and included herein involve properties with similar highest and best uses as that of the subject. The subject is located along the east line of Hinkle Drive, north of US 380 in Denton, Denton County, Texas. Comparables 1 and 2 have superior locations and/or access and will be adjusted downward 15 percent. Comparables 3 and 5 are located in similar areas of development but receive slightly superior access; therefore, Comparables 3 and 5 will be adjusted downward 5 percent. Comparable 4 is located in a similar area of development but receives inferior access; therefore, Comparable 4 will be adjusted upward 10 percent. Size The subject has a total land size of 19.860 acres. Typically, smaller tracts sell for more per unit than larger sites. In reviewing market trends and the data set, the market appears to recognize a difference in price for tracts substantially different in size. A market observation witnessed throughout the Texas market area and most metropolitan areas in the southwest supports an adjustment of 5 to 15 percent for each halving/doubling in size. In this instance a 5 percent adjustment for each halving/doubling in size will be utilized. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 58 The following table illustrates the size adjustments based upon a market derived 5 percent adjustment per each doubling/halving in size for the land market in the vicinity. Corner A tract of land with corner influence can, in many cases, command a higher price per unit than a tract without corner influence. Corner influence typically becomes a more significant factor on price with retail and commercial properties situated along two primary thoroughfares in significantly developed urban areas. In order to abstract the appropriate adjustment for the presence of a corner, the following paired sales analysis will be utilized. In each of the paired sales, a tract with corner frontage has been paired with a similar tract without corner frontage. 0% - 25% 0.00% - 1.25% 25% - 50% 1.25% - 2.50% 50% - 100% 2.50% - 5.00% 100% - 200% 5.00% - 7.50% 200% - 300% 7.50% - 10.00% 300% - 500% 10.00% - 12.50% 0% - 25% 0.00% - -2.50% 25% - 50% -2.50% - -5.00% 50% - 75% -5.00% - -10.00% 75% - -10.00% - LargerSmaller =3820C43 )8H4 39DBC<4=CB F8C7 0 39DBC<4=C ?4A >D1;8=6 0;E8=6 Variance of Comp from Subject Indicated Adjustment Range TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 59 Size Price/ Corner Location Date (Acres) Sq. Ft. No1 N Line of US 380, E of Oak Grove Ln, Little Elm, TX September 2016 0.888 $16.73 Yes NWC of US 380 & Oak Grove Ln, Little Elm, Texas April 2016 1.073 $19.47 =3820C4339DBC<4=C >A=4A&08A43><?0A8B>= 1This sale has been adjusted downward 2% for increasing market conditions and downward 2% for the difference in size ($17.42/SF x 0.98 x 0.98 = $16.73). TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 60 Size Price/ Corner Location Date (Acres) Sq. Ft. No1 N Line of US 380, W of Hardin Blvd, McKinney, TX August 2017 4.840 $22.80 Yes NWC of US 380 & Hardin Blvd, McKinney, TX July 2019 2.105 $25.00 =3820C4339DBC<4=C 1This sale has been adjusted upward 8% for increasing market conditions and upward 6% for the difference in size ($19.92/SF x 1.08 x 1.06 = $22.80). >A=4A&08A43><?0A8B>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 61 These paired comparisons indicate a range of adjustment of approximately +10 to +16 percent. Therefore, an upward adjustment of 10 percent is considered reasonable for the difference between corner and non-corner tracts. The subject property is not located on a corner. Comparable 3 is located on a corner and will be adjusted downward 10 percent. Comparable 5 is not located on a corner; however, it does receive access from two roads. Therefore, Comparable 5 will be adjusted downward 5 percent. Like the subject, Comparables 1, 2, and 4 are not located on corners and will not be adjusted. Utilities The next consideration is for the location and adequacy of utilities. The subject currently has access to all utilities. All of the Comparables have access to all utilities like the subject and will not be adjusted. Size Price/ Corner Location Date (Acres) Sq. Ft. No1 N Line of US 380, E of Hardin Blvd, McKinney, Texas April 2018 1.171 $22.38 Yes NWC of US 380 & Hardin Blvd, McKinney, Texas July 2019 2.105 $25.00 =3820C4339DBC<4=C 1This sale has been adjusted upward 5% for increasing market conditions and downward 4% for the difference in size ($22.20/SF x 1.05 x 0.96 = $22.38). >A=4A&08A43><?0A8B>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 62 Topography This adjustment takes into consideration the topography (terrain) of the subject property and how developable the site is. The subject has level topography. All of the Comparables have similar topographical considerations and no adjustments will be made. Zoning The zoning classification a property possesses dictates the legally permissible uses that a site can be developed with, and hence, has a major influence on the value of a property. The subject site is zoned MN, Mixed-Use Neighborhood. All of the Comparables have similar zoning restrictions and/or highest and best uses compared to the subject and will not be adjusted. Flood Plain The next consideration is for the adverse influence of a tract being situated within the 100 year flood plain. Approximately 60 percent of the subject tract appears to lie within the 100 year flood plain and/or regulatory floodway, with an additional 12 percent that appears undevelopable due to the shape of the tract. Thus, a total of approximately 72 percent of the subject lies within the 100 year flood plain, regulatory floodway, existing drainage easement, or is undevelopable due to the shape of the tract and the location of the flood plain area. However, this portion of the analysis will be based on the assumption that no portion of the subject is located within the flood plain. The portion of the subject located within the flood plain will be accounted for in the reconciliation. Comparables 2, 3, and 4 are located outside of the flood plain. Additionally, approximately 40 percent of Comparable 1, and 20 percent of Comparable 5 is located in the 100 year flood plain. To abstract the appropriate adjustment for flood plain, paired sales analysis for several flood plain sales identified in the North Texas region have been displayed in the following table. These flood plain sales are correlated with a very similar non-flood plain sale. % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% 10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 -- 100% 9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Merit Dr, Dallas, Texas 1 Feb 2014 1.400 $980,910 -- 50% Forest Ln, Dallas, Texas Sept 2014 6.420 $778,816 -20.6% Divided by Percentage in Flood Plain: 50% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= 1This non-flood sale has been adjusted downward 10 percent for size. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 63 % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0%Senlac Dr, Farmers Branch1 Sept 2014 3.975 $188,757 -- 100% Crescent Dr, Carrollton June 2013 1.342 $144,560 -23.4% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= 1This non-flood sale has been adjusted upward 5 percent for size and downward 5 percent for a corner location for a totalnet adjustment of 0 percent. % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Dena Dr, Frisco Dec 2013 4.440 $152,461 -- 78% Meadow Hill Dr, Frisco Jan 2013 5.750 $43,478 -71.5% Divided by Percentage in Flood Plain: 78% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain LocationDate(Acres)Acre% Variance 0% CR 95, Celina July 2003 35.330 $15,000 -- 95% Business 289, Celina Oct 2002 34.820 $8,186 -45.4% Divided by Percentage in Flood Plain: 95% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% McAlister Rd, Burleson April 2001 15.000 $14,500 -- 100% FM 1187, Burlseon July 2002 22.380 $5,362 -63.0% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Great SW Pkwy, Grand Prairie May 2000 43.720 $21,386 -- 100% MacArthur Blvd, Grand Prairie Jan 2002 41.550 $9,266 -56.7% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% FM 548, Forney, Texas July 2021 22.000 $40,910 -- 80% FM 548, Forney, Texas Under Contract 21.000 $31,000 -24.2% Divided by Percentage in Flood Plain: 80% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 64 These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of approximately -52.5 percent. Therefore, a -50 percent adjustment will be utilized for the difference in the value of land located within a flood plain, compared to land that is not located within a flood plain. Therefore, Comparables 2, 3, and 4, which are located outside of the flood plain, will not be adjusted. Given that approximately 40 percent of Comparable 1 is encumbered by flood plain, an upward adjustment of 20 percent ((40% of 50%) = 20%) will be applied. Given that approximately 20 percent of Comparable 5 is encumbered by flood plain, an upward adjustment of 10 percent ((20% of 50%) = 10.0%) will be applied. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS,INC. 25.0245 65 CONCLUSION OF LAND VALUE –WHOLE PROPERTY Located below is an adjustment grid for the subject tract, followed by the range, mean (average), and standard deviation of the adjusted sales prices per square foot. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 66 All of the Comparables had a mean of $6.47 per square foot, while the mean of data without high and low extremes is $6.15 per square foot, and the data with the least absolute adjustments (<= 30%) had a mean of $5.87 per square foot. Therefore, considering the foregoing analysis, a market value opinion of $6.25 per square foot is considered to be reasonable for the subject tract, land only. However, as discussed previously, approximately 60 percent of the subject tract appears to lie within the 100 year flood plain, regulatory floodway, existing drainage easement, or is undevelopable due to the shape of the tract and the location of the flood plain area. Thus, a total of approximately 72 percent of the subject lies within the 100 year flood plain and/or regulatory floodway or is undevelopable due to the shape of the tract and the location of the flood plain area. To abstract the appropriate adjustment for flood plain, paired sales analysis for several flood plain sales identified in the North Texas region have been displayed in the following table. These flood plain sales are correlated with a very similar non-flood plain sale. % of Tract in Size Price/ Flood Plain Location Date (Acres)Acre% Variance 0% 10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 -- 100% 9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres)Acre % Variance 0%Merit Dr, Dallas, Texas1 Feb 2014 1.400 $980,910 -- 50% Forest Ln, Dallas, Texas Sept 2014 6.420 $778,816 -20.6% Divided by Percentage in Flood Plain: 50% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= 1This non-flood sale has been adjusted downward 10 percent for size. % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Senlac Dr, Farmers Branch 1 Sept 2014 3.975 $188,757 -- 100% Crescent Dr, Carrollton June 2013 1.342 $144,560 -23.4% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= 1This non-flood sale has been adjusted upward 5 percent for size and downward 5 percent for a corner location for a total net adjustment of 0 percent. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 67 These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of approximately -52.5 percent. However, given that the subject is encumbered by a combination of the 100 year flood plain, the regulatory floodway, and/or an existing drainage easement, an adjustment above the mean of the paired comparisons, or 65 percent is considered reasonable. Thus, a -65 percent adjustment will be utilized for the difference in the value of land located within the encumbered areas, compared to land that is not located within these areas. As such, the total % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Dena Dr, Frisco Dec 2013 4.440 $152,461 -- 78% Meadow Hill Dr, Frisco Jan 2013 5.750 $43,478 -71.5% Divided by Percentage in Flood Plain: 78% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% CR 95, Celina July 2003 35.330 $15,000 -- 95% Business 289, Celina Oct 2002 34.820 $8,186 -45.4% Divided by Percentage in Flood Plain: 95% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% McAlister Rd, Burleson April 2001 15.000 $14,500 -- 100% FM 1187, Burlseon July 2002 22.380 $5,362 -63.0% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% Great SW Pkwy, Grand Prairie May 2000 43.720 $21,386 -- 100% MacArthur Blvd, Grand Prairie Jan 2002 41.550 $9,266 -56.7% Divided by Percentage in Flood Plain: 100% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= % of Tract in Size Price/ Flood Plain Location Date (Acres) Acre % Variance 0% FM 548, Forney, Texas July 2021 22.000 $40,910 -- 80% FM 548, Forney, Texas Under Contract 21.000 $31,000 -24.2% Divided by Percentage in Flood Plain: 80% =3820C4339DBC<4=C ;>>3&;08=&08A43><?0A8B>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 68 “as is” market value opinion for the subject property, land only, as of the effective date of the appraisal is calculated below: Therefore, the market value of the whole property is $2,876,517 Outside Flood Plain: 242,233 SF x $6.25 PSF = $1,513,956 Inside Flood Plain/Undevelopable: 622,885 SF x $6.25 PSF x 35% = $1,362,561 Total: 865,118 SF = $2,876,517 SECTION V - VALUATION CONCLUSION TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 70 FINAL OPINION OF VALUE VALUE OF THE WHOLE PROPERTY The subject property consists of 19.860 acres (865,118 square feet) of vacant land. The highest and best use is commercial use. Further, any potential limitations to use would be outweighed by the enhancement of value of the site by the road/infrastructure improvements. Thus, the highest and best use after the proposed acquisition is commercial use. Therefore, there are no permanent damages to the remainder property, only limitations caused by temporary interruption of the ingress/egress of this property during construction. Therefore, the market value of the whole property before the proposed acquisitions as of the effective date of appraisal (January 20, 2025) was: "As Is" Market Value ($2,876,517) VALUE OF THE PARTS TO BE ACQUIRED The portions of the site from which property rights will potentially be acquired involve a 9.860 acre (429,521 square foot) fee simple acquisition and a 0.474 acre (20,635 square foot) drainage easement. Value of Proposed Fee Simple Acquisition: The portion of the property proposed to be acquired for a fee simple acquisition involves 9.860 acres (429,521 square feet). It should be noted that all of the proposed fee simple acquisition appears to be located within the 100 year flood plain, regulatory floodway, existing drainage easement, or is undevelopable due to the shape of the tract and the location of the flood plain area. Therefore, applying the per square foot value of the portion of the whole subject tract that is impacted by these factors to the part to be acquired results in a value of the part to be acquired for the fee simple acquisition calculated as follows: Value of Proposed Drainage Easement Acquisition: The portion of the property proposed to be acquired for a drainage easement involves a 0.474 acre (20,635 square foot) drainage easement. The easement acquisition encumbers some, but not all of the property rights of the land (fee simple interest) comprising the easement. The Easement Valuation Matrix located as follows provides a guide for allocating value of the fee simple interest between the easement estate (dominant estate) and the landowner’s estate (servient estate). This exhibit was provided by an article entitled “Valuation of Easements” by Donald Sherwood, SR/WA, published in the November/December 2014 edition of Right of Way Magazine. Fee Simple Acquisition: 429,521 SF x $6.25 PSF x 35% = $939,577 TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 71 The easement is not located across a non-usable area of the tract and may be used as required open space, building set back areas, and for landscaping and other site improvements. However, the owner would not be permitted to construct vertical improvements within the easement area. According to the easement valuation matrix located above, drainage easements encumber 75 percent to 89 percent of the fee interest in the property. Therefore, utilizing the easement valuation matrix as a guide, these easements are considered to comprise 85 percent of the fee simple value of the land. As such, the remaining 15 percent of the use rights/fee simple value of these portions of the tract remains with the current landowner. It should be noted that all of the proposed drainage easement acquisition appears to be located within the 100 year flood plain. Therefore, applying the per square foot value of the portion of the whole subject tract that is impacted by the flood plain ($6.25 x 50%) to the part to be acquired results in a value of the drainage easement to be acquired of: Drainage Easement Acquisition: 20,635 SF x $6.25 PSF x 50% x 85% = $54,812 DAMAGES/ENHANCEMENTS State law requires that enhancements to a remainder property in a condemnation acquisition be determined and used as an offset to any damages to the remainder property to calculate net damages. The highest and best use is for commercial use. The proposed fee simple acquisition and easement does not damage the remainder of the site due to the size and the shape of the tract remaining sufficient for commercial use. Further, any potential limitations to use would be TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 72 outweighed by the enhancement of value of the site by the road/infrastructure improvements. Thus, the highest and best use after the proposed acquisitions is considered to be commercial use. It is determined that there are no net damages to the remainder property. COSTS TO CURE Costs to cure involve the contributory value of the site improvements acquired and costs to relocate site improvements which can be salvaged. No improvements appear to be impacted by the proposed acquisition. ,0;D4>5C74-7>;4&A>?4ACG ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C (4<08=34A45>A42@D8B8C8>= (4<08=34A5C4A2@D8B8C8>= =70=24<4=CB 0<064B >BCC>DA4 ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C *>C0;(42><<4=343><?4=B0C8>= %?8=8>=B>5(42><<4=343><?4=B0C8>= SECTION VI – CERTIFICATION & ASSUMPTIONS & LIMITING CONDITIONS TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 74 CERTIFICATION The undersigned hereby certifies that, to the best of their 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 the personal, impartial unbiased professional analyses, opinions, and conclusions of the undersigned. 3) Neither the undersigned, nor any associate of the appraiser, have any present or prospective interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved. 4) The undersigned have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5) The engagement of the undersigned in this assignment was not contingent upon developing or reporting predetermined results. 6) All analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 7) All analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with Title XI of the Federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) and its regulations; in conformity with the Interagency Appraisal and Evaluation guidelines issued by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervisions (OTS), and the National Credit Union Administration (NCUA) on December 2, 2010. 8) The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 9) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10) No one provided significant real property appraisal assistance in the preparation of this appraisal report to the person(s) signing this certification. 11) As of the date of this report, Mitchell B. Todd, MAI and Michael A. Keane, MAI have completed the continuing education program for Designated Members of The Appraisal Institute. 12) The undersigned's 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. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 75 13) The appraisal report was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 14) Neither the undersigned nor any associate of the appraisers considered race, color, religion, sex, national origin, handicap, or familial status in determining the value of the subject property. 15) Todd Property Advisors, Mitchell B. Todd, MAI and Michael A. Keane, MAI provided appraisal services regarding this property in January 2025. 16) Michael A. Keane, MAI made a personal inspection of the property that is the subject of this report on January 20, 2025, and other dates. 17) In our opinion, and after careful consideration of the various factors entering into this appraisal, the following illustrates the “as is” market value for the subject property and the recommended compensation as of the effective date of appraisal, January 20, 2025, was: 18) Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Denton will not permanently limit ingress/egress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re-analysis. Respectfully submitted, Mitchell B. Todd, MAI Michael A. Keane, MAI President Senior Vice President State Certification #TX-1323514-G State Certification #TX-1380384-G mitchell@toddpa.com michael@toddpa.com ,0;D4>5C74-7>;4&A>?4ACG ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C (4<08=34A45>A42@D8B8C8>= (4<08=34A5C4A2@D8B8C8>= =70=24<4=CB 0<064B >BCC>DA4 ,0;D4>5C74&0AC2@D8A43 2A4 44)8<?;42@D8B8C8>= ,0;D4>5C74&0AC2@D8A43 2A4A08=0640B4<4=C *>C0;(42><<4=343><?4=B0C8>= %?8=8>=B>5(42><<4=343><?4=B0C8>= TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 76 ASSUMPTIONS AND LIMITING CONDITIONS 1) No responsibility is assumed for matters legal in character or nature, nor matters of survey, nor of any architectural, structural, mechanical or engineering nature. No opinion is rendered as to the title of the subject property, which is presumed to be good and marketable. The legal description is assumed to be correct as used in this report. 2) The property is appraised as though free and clear of any or all liens or encumbrances unless stated. 3) The property is assumed to be under responsible ownership and competent management. 4) The appraisers have not independently verified all of the information furnished or assumptions made with respect to the appraisal unless otherwise indicated and therefore is not responsible for their content or their effect on the market value of the property. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5) All engineering is assumed to be correct. The maps or other illustrative materials included in this report are intended only to depict spatial relationships. They are not measured survey nor measured maps, and the appraiser is not responsible for cartographic or surveying errors. Dimensions and areas of the subject property and of the comparables were obtained by various means and are not guaranteed to be exact. 6) The appraisal is based on there being no hidden, unapparent, or apparent conditions of the property site, subsoil, or structures or toxic materials which would render it more or less valuable. No responsibility is assumed for any such conditions or for any expertise or engineering to discover them. 7) The appraisal is based on the premise that there is full compliance with all applicable federal, state and local environmental regulations and laws unless otherwise stated in this report. 8) This appraisal is based on the assumption that all applicable zoning, building, and use restrictions for all types have been complied with, unless a nonconformity has been stated, defined, and considered in report. 9) The assumption has been made that all required licenses, consents, permits or other legislative or administrative authority, local, state, federal and/or private entity or organization have been or can be obtained or renewed for any use considered in the value estimate. 10) Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraisers, however, are not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is not such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field of environmental impacts upon real estate if so desired. 11) This appraisal is based on the assumption that the use of the land and improvements is within the boundaries of the subject property and there is no trespass or encroachment unless otherwise noted in the report. 12) The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 13) Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for other than its intended use. The Bylaws and Regulations of the Appraisal Institute require each Member and Candidate to control the use and distribution of each appraisal report signed by such Member or Candidate; this appraisal report shall not be given to third parties without the prior written consent of the signatory of this appraisal report. Neither all nor any part of this appraisal report shall be disseminated to the general public by use of advertising media, public relations, news, sales or other media for public communication without the prior written consent of the appraisers. TODD PROPERTY ADVISORS REAL PROPERTY ANALYSTS, INC. 25.0245 77 14) The appraisers are not obligated to provide any other services, including but not limited to, testimony in court or before any other body charged with interpretation of enforcement of the appraisal. 15) No portion of the appraisal may be reproduced in whole or in part without the prior written consent of the appraisers. The validity of the appraisal is expressly conditioned upon consideration of its entirety. 16) Due to the nature of real estate valuation and the complexities of external and internal factors which dictate the market value of any real estate, and the rapid changes and fluctuations with respect to the valuation of real estate, the opinion of the appraisers set forth in the appraisal concerning the market value of the property is reliable as of the effective date and should not be considered as reliable at any time thereafter. 17) The appraisers make no guarantee or warranty, whether implied or expressed, concerning the market value set forth in the appraisal. The appraisal merely sets forth the appraisers opinion of such market value based upon information obtained by the appraisers and assumptions made by the appraisers with respect to the property. 18) The appraisers assume 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. 19) Subsurface Rights (minerals and oil) were not considered in this appraisal unless otherwise specifically stated. 20) The State of Texas does not have full disclosure laws regarding real estate transactions. Therefore, the appraisers necessarily confirmed all sales and rental comparables with brokers, property managers, mortgage brokers, grantors, grantees and other parties familiar with the transaction. The appraiser’s data is limited by the accuracy of the information supplied by the aforementioned individuals. Whenever possible, the information was verified by county records. 21) The value conclusion within this report is contingent upon the site being in full compliance with city codes, and that no contamination has occurred at the site. A Phase I Environmental Study was not provided, and the appraisers accept no responsibility as to the current status of property with respect to environmental contaminants. It is recommended that if a Phase I study has not been performed, that an expert in this field be engaged to identify any hazardous materials and substances existing on the property. 22) It is assumed there is full compliance with all requirements of Title III, of the Americans with Disabilities Act (ADA) which became effective January 26, 1992 unless non-compliance is stated, defined, and considered in the appraisal report. No responsibility is assumed by the appraisers for any such conditions, or for any expertise or architectural/design knowledge and cost required to identify such non-compliance. 23) As used in professional appraisal practice the term “inspection” is “a personal observation of the exterior and/or interior of the real property that is the subject of an assignment. The purpose of an appraiser’s inspection is to identify the property characteristics that are relevant to the assignment, such as amenities, general physical condition, and functional utility.” Inspection is considered a term of art in the appraisal profession and does not have the same meaning as it might have in other professions such as engineering or architecture or in other design or construction related professions. Additionally, it does not infer any obligation to investigate. 24) Extraordinary Assumption: An extraordinary assumption has been made that the acquisitions by the City of Denton will not permanently limit ingress/egress to and from the subject property. The use of this assumption could affect the results of this assignment and if found to be incorrect could necessitate re-analysis. SECTION VII - ADDENDUM ─────────────────── ─────────────────── @;%>1?1:@ G(;00%>;<1>@E0B5?;>?&1-8%>;<1>@E:-8E?@? :/ %8-:;(1D-? @; 11>+188?*-A34-:;991>/5-8%>;<1>@E:-8E?@?-88-?(1D-? @; #;E0$;::188 :/ &1-8?@-@1<<>-5?1>?;:?A8@-:@?-88-? (1D-? ;A?@;:(1D-? 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'"%(%)*' " "++' % ' !!"# $ % & ' ( ( ) ***+ +++ HINKLE DRIVE(VARIABLE WIDTH RIGHT-OF-WAY)ASPHA LTPAVEMENTGUARD RA IL CONCRETEPAVEM ENT ASPHALTPAVEMENT GRAVEL GRAVELGRAVEL 6' WOOD FENC E(3.7' OFF PROPERTY L INE)4' CHA IN-L INK FENCE(0.4' ON PRO PERTY )4' META L F ENCE FENCE POST FOUNDFOR CORNER1/2" IRON ROD FOUNDBEARS N 89°27 " W ,A D ISTANCE OF 0.24 ' FIB ER OPT IC E FIB ER OPT IC FIBER OPTIC FI BER OPT IC o XXXXXX X X X X X X X X X X X X X X X X X XXXXXXXXXXXXXXXXPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOH POHPOHPOHPOHPOH0.65 ' CONCRETEHEADWALLCONCRETE CONCRETECONCRETEVARIABLE WIDTHUTILITY EASEMENT(DOC. NO . 2015-251 )25' DRA INAGE EASEMENT (DOC . NO. 2015-251)11.99 '5.94 'LOT 1LOT 34LOT 1LOT 32LOT 180' DRAINAGE EASEMENT (CC# 96-0077724)PUBLIC UTILITY EASEMENT(VOL. 592, PG. 697 )DRAINAGE EASEMENT(VOL. 2487 , PG. 503)GTE SOUTHWEST EASEMENT(CC# 94-0051722)24' DRA INAGEEASEMENT(CAB. M, PG. 163 )LOT 11C, BLOCK 1INFINITY STRATAADDITION(CAB. M, PG. 163)DRAINAGE EASEMENT(VOL. 2123 , PG. 343)NORTH TEXAS STATEFAIR ASSOCIATION(VOL. 346 , PG. 199)16' UTIL ITY EASEMENT (VOL. 746 , PG . 807)LOT 1RDENTON CENTER - PHASE II(DOC. NO. 2015-251)DRAINAGE EASEMENT(VOL. 2487, PG. 503 )1,253.32'N00°37'18"E 875.56 1,295.11' 1,305.00'639.48'FENCE POST FOUND BIKE LANE BIKE LANE BIKE LANE 149.55'49.88' 35.3 6 ' 125.00'125.00'35.35'49.98' 148.87'7.89'74.05'86.91 ' 150.00'62.00 '35.34'125.00'125.00'22.64'64.41' 144.93'95.10 ' 125.00' 35. 3 7 '70.01'1/2" IRON ROD W/"4857" CAP FOUNDBEARS S 55°12" EA D ISTANCE OF 0 .24 'BLOCK IVNORTH UNIVERSITYPLACE ADDITION(CAB. A, PG . 65)BLOCK VNORTH UNIVERSITYPLACE ADDITION(CAB. A, PG. 65)BLOCK IIINORTH UNIVERSITYPLACE ADDITION(CAB. A, PG . 65)ZONE "AE" - FLOODWAY AREAS(SEE NOTE 2)ZONE "AE" -FLOODWAY AREAS(SEE NOTE 2)ZONE "AE"(SEE NOTE 2)ZONE "AE"(SEE NOTE 2)ZO N E " X " - O T H E R F L O O D A R E A S (SE E N O T E 2 )ZONE "X"(SEE NOTE 2)ZONE "X"(SEE NOTE 2)ZONE "AE"(SEE NOTE 2)ZONE "AE"(SEE NOTE 2)ZONE "AE"(SEE NOTE 2)ZONE "X" - OTHERFLOOD AREAS(SEE NOTE 2)DRAINAGE EASEMENT(CAB M , PG. 341)4' CONCR ETE SIDEWALK 4' CONCRE TESIDEWA LK ASPHALTPAVEMENT ASPHALTPAVEMENT BIKE LANE BIKE LANE 4' CHAIN -LINK FENCE (0. 4' ON PROPERTY ) S00°12'47"W 870.53 1/2- INCH IRONROD FOUND6' WOOD FENCE(2.1 ' O FF PROPE RTY LINE )6' WOOD FENCE (3.3' OFF PROPERTY L IN E)END 6' WOOD FENCE(0.8' ON PROPER TY)6' WOOD FENCE(ON PROP ERTY LINE )EDGE OF CONCRET E S IDEWA LK(1.3' OF F PROPER TY LINE )EDGE O F CONCRETE S ID EWALK (1.7 ' OFF PROPERTY L IN E)UTILITY EASEMENT(CC# 97-R0034793 )16' UTILITY EASEMENT(VOL. 746 , PG . 807)PUBLIC UTILITY EASEMENT(VOL. 592 , PG . 697)103.04N89°26'57"W 610.00TRACT 1POINT OF BEGINNINGTRACT 2POINT OF COMMENCINGSIRS89°09'23"E 189.47GREENBRIAR STREET(60' WIDE RIGHT-OF-WAY)TULANE DRIVE(60' WIDE RIGHT-OF-WAY)BRYN MAWR PLACE(50' W IDE R IGHT-OF-WAY)RPI DENTON CENTER, LTD(CC NO . 97-0045517) S00°37'18"W 376.52 SEYED MOOSAVI(VOL. 2017, PG. 31975)ADDRESS: 2100 HINKLE DRIVE10.000 AC(435,597 SF)SEYED MOOSAVI(VOL. 2017, PG. 31975)ADDRESS: 2100 HINKLE DRIVE9.860 AC(429,521 SF)SIRBIKE LANEBIKE LANEBIKE LANEBIKE LANE ZONE "X" - OTHERFLOOD AREAS(SEE NOTE 2) ±1,075 FEET TO THE INTERSECTIONOF WEST UNIVERSITY DRIVE 10' UT ILITY EASEMENT(DOC. NO . 2015-251 )4' CHA IN-L INK F ENCE(0.9' INSIDE PROPERTY L INE)879.67558.70'S89°09'23"E 798.376.50'989.23N89°26'57"W 384.04TRACT 2POINT OF BEGINNINGSIR147.23'723.30'TRACT 1TRACT 2L=351.70CH=351.20CHB=S 42°00'32" ER=1916.13Δ=10°30'59"S36°45'03"E 300.95PUBLIC UTILITY EASEMENT(VOL. 592, PG. 697 )NO BUILDINGS EXIST ON PROPERTYAT THE T IME OF SURVEYNO BUILD INGS EXIST ON PROPERTYAT THE TIME OF SURVEYSIR MPLOT 1R, BLOCK 1GOOD SAMARITAN VILLAGE(DOC. NO. 2011-20)EV LUTHERAN GOOD SAMARITAN SEC(CC NO. 94-0041506)NORTH TEXAS STATEFAIR ASSOCIATION(CC NO. 96-0062124)RPI DENTON CENTER, LTD(CC NO. 97-0045517 )L=351.70CH=351.20CHB=N 42°00'32" WR=1916.13Δ=10°30'59"N36°45'03"W 300.95N00°37'18"E 376.52SIR SIRSHEET NUMBER:DATE:OFFIELD WORK DATE: FIELD CREW: DRAWN: CHECKED: PROJECT:INITIAL ISSUE:REVISIONS:PREPARED FOR: Phone (972) 235-3031 7557 RAMBLER ROAD, STE 1400DALLAS, TX 75231 TBPELS ENGINEERING FIRM REGISTRATION NO. 11756TBPELS SURVEYING FIRM REGISTRATION NO. 10074301 N:\0052050.00\06 CAD\DWG\SURVEY C3D\ALTA SURVEY\0052050.00AS.DWG 1DENTON, TEXAS12/18/2024DENTON NEIGHBORHOOD 5B A 10.000 ACRE TRACT OF LAND ANDA 9.860 ACRE TRACT OF LANDPART OF SEYES MOOSAVI TRACTRECORDED IN VOLUME 2017, PAGE 31975OF THE DEED RECORDS OF DENTON COUNTY, TEXAS1 R0052050.00 CTP/JWW AMY 12/12/2024 PO BOX 660150DENTON, TEXAS 76205 CITY OF DENTON © 2017 Westwood Professional Services, Inc.0'50' 100' 150 '1" = 50 ' JS 9/6/2024PROJECT NUMBER: R0052050.00(NOT TO SCALE )VICINITY MAPCreekBOWLING GREENHASSARDCORDELLTULANEGREENBRIARWINDSORNORTH LAKESPARKSIDEWESTCHESTERCORDELL UNIV E R S I T YAMHURSTCORNELL BOWLINGFORDHAMGEORGETOWNBELHAVEN GREENAUBURN STRATAWINDSORCARROLEMERYWESTWAYSUNSET BOLIVERHENRYFAINROSSDENISONWEST HINKLE MESQUITEHEADLEEMIMOSAMAGNOLIANORTHRIDGEParkCITY OF DENTONSITESURVEYOR'S CERTIFICATETo: The C ity o f Denton ;Seyed Moosav i;Chicago T it le Insurance Company ;Chicago T it le of Texas , LLC;This is to ce rti fy that this map o r plat and the su rvey on which it is based were made in accordance w ith the2021 Minimum Standa rd Detai l Requi rement s for ALTA/NSPS Land Ti tle Surveys, jo intly estab lished andadopted by ALTA and NSPS , and inc ludes items 1, 2 , 3 , 4, 7b(1), 7 (c) , 8, 9, 13 , 14, o f Tab le A thereof . The f ieldwork was comp le ted on 09 /06/2024.Justin W . Wa ld rip, R .P.L .S. Date: 12/18/2024Tx License No . 6179 ju stin .waldr ip@westwoodps.comPRELIMINARY10f. The Publ ic Uti lity Easemen t to the Ci ty o f Denton, recorded in Volume 592, Page 697 o f the Rea l Property Records o f Denton County,Texas, does a ffect the sub ject proper ty and is shown hereon;10g. The Dra inage Easement to the C ity of Denton recorded in Vo lume 2487 , Page 503 of the Rea l Property Records o f Denton Coun ty , Texas ,does affec t the sub ject p roper ty and is shown hereon;10h. The GTE Southwes t Ea semen t to GTE Sou thwest , INC. re co rded in Document No. 94-R0051722, of the Real Proper ty Records of DentonCounty, Texas, does affec t the sub ject p roper ty and i s shown hereon ;10i. The 80 ' Dra inage Easement to the C ity of Den ton , recorded in Document No. 96-R0077724, o f the Rea l P rope rty Re co rd s of DentonCounty, Texas, does affec t the sub ject p roper ty and i s shown hereon ;NOTES ADDRESSING SCHEDULE "B" EXCEPTIONSDESCRIPTION OF PROPERTY SURVEYEDTRACT 1DESCRIPTION, o f a 10 .00 ac re (435,597 square foot ) t ract of land si tua ted in the Robert Beumont Survey , Abs tract No. 31 , in the Cityof Denton, Denton County , Texas; said t rac t being part of that tract of land desc ribed in Specia l Warranty Deed w ith Vendor 's L iento Seyes Moosavi, recorded in Documen t No . 2017 -91975 of the O ff icial Records o f Denton Coun ty, Texas ; sa id 10.000 acre (435 ,597square foot) tract be ing more part icu lar ly described as fol lows:BEGINNING, at a 1 /2- inch iron rod w ith “WESTWOOD PS” cap set in the ea st r ight -o f-way line of Hinkle Drive (a variab le widthright-of-way) ; sa id po int being the nor thwest corner o f the said Seyes Moosavi tract ;THENCE, South 89 deg rees , 09 m inutes , 23 seconds Eas t, depart ing the sa id east r igh t-of-way line of Hink le Dr ive and a long thesouth l ine o f Lot 1R , Block 1 , Good Samar itan Vi llage, an add ition to the Ci ty of Den ton , according to the plat recorded in DocumentNo. 2011-20, of the sa id O ffic ial Records of Denton County , Texas, and the nor th l ine o f the sa id Seyed Moosavi trac t, a t a dis tanceof 6.50 feet pass ing the sou thwest co rner of sa id Lot 1 , Block 1 , continu ing in al l a total d istance of 189 .47 feet to a 1/2- in ch iron rodwith “WESTWOOD PS” cap set fo r corner ; Said point be ing the beg inn ing of a non-tangen t curve to the r igh t;THENCE, depart ing the said south l ine o f Lot 1R, B lock 1 and the sa id nor th l ine of the Seyed Moosavi , over and acro ss the saidSeyed Moosavi tract the fo llow ing three (3 ) ca lls :In a sou theaste rly d irect ion , along said non-tangen t curve to the r igh t, hav ing a central ang le of 10 degrees, 30 m inutes , 59 seconds,a radius of 1 ,916 .13 feet , a chord bea ring and d istance of South 42 degrees , 00 m inutes , 00 seconds Eas t, 351 .20 feet, and an arcdistance of 351 .70 feet to a 1/2- inch iron rod wi th “WESTWOOD PS” cap set at the end of sa id curve;South 36 degrees , 45 m inu tes , 03 seconds East , a d istance of 300 .95 feet to a 1/2- inch iron rod wi th “WESTWOOD PS” cap set forcorne r;South 00 degrees, 37 minutes , 18 seconds We st, a distance of 376 .52 feet to a 1/2-inch iron rod w ith “WESTWOOD PS” cap set forcorne r in the no rth line of Lo t 1R, Denton Center - Phase II , Lot 1R, an add it ion to the Ci ty of Den ton , according to the plat recordedin Document No . 2015-251 , of the said Off icia l Prope rty Records, and the sou th l ine of the said Seyed Moosavi tract ;THENCE, North 89 degrees, 26 minutes , 57 seconds We st, along the said north line o f Lot 1R (2015-251 ) and the said south line ofthe Seyed Moosavi tract , at a d istance of 605.19 fee t passing the northwes t corner of sa id Lot 1R, from wh ich, a 1 /2 -inch i ron rodwith “4857 ” cap found bears South 55 degrees, 12 minutes Eas t, a distance of 0 .24 feet , continuing in al l, a total distance of 610.00feet to a po in t for corner in the sa id east r igh t-of-way l ine of H ink le D rive , from which , a 1/2-inch iron rod found , bea rs Nor th 89degrees, 27 m inu te s West , a d istance of 0 .24 feet ; sa id po int being the southwe st corner o f the sa id Seyed Moosav i t rac t;THENCE, North 00 degrees, 37 minutes, 18 seconds East , a long the sa id east right-of-way l ine o f H inkle Drive and the west line ofthe said Seyed Mooravi trac t, a distance of 875 .56 feet to the POINT OF BEGINNING ;CONTAINING: 435 ,597 square feet or 10.000 acres o f land, more or less .TRACT 2DESCRIPTION, o f a 9 .860 ac re (429,521 square foot ) t ract of land si tua ted in the Robert Beumont Survey , Abs tract No. 31 , in the Cityof Denton, Denton County , Texas; said t rac t being part of that tract of land desc ribed in Specia l Warranty Deed w ith Vendor 's L iento Seyes Moosav i, recorded in Document No. 2017-31975 o f the Off icia l Records o f Denton Coun ty , Texas ; said 9 .860 acre (429,521square foot) tract be ing more part icu lar ly described as fol lows:COMMENCING, at a 1 /2 -inch i ron rod wi th “WESTWOOD PS” cap set in the eas t r ight-o f-way line of Hink le D rive (a variable widthright-of-way) ; sa id po int being the nor thwest corner o f the said Seyes Moosavi tract ;THENCE, South 89 deg rees , 09 m inutes , 23 seconds Eas t, depart ing the sa id east r igh t-of-way line of Hink le Dr ive and a long thesouth l ine o f Lot 1R , Block 1 , Good Samar itan Vi llage, an add ition to the Ci ty of Den ton , according to the plat recorded in DocumentNo. 2011-20, o f the sa id Of fic ial Records and the no rth l ine of the sa id Seyed Moosavi tract , at a d istance of 6 .50 feet pass in g thesouthwest corner o f sa id Lo t 1, Block 1, con tinuing in all a tota l dis tance o f 189.47 fee t to a 1 /2 -inch i ron rod w ith “WESTWOOD PS”cap set fo r the POINT OF BEGINNING ;THENCE, South 89 degrees, 09 minutes , 23 seconds Ea st, cont inu ing along the said south line o f Lot 1R, B lock 1 and the said northline o f the Seyed Moo sav i tract, at a d istance of 696.71 feet passing the southeast co rne r of sa id Lo t 1R, B lo ck 1 and the southwestcorne r of Lot 11C, B lock 1, Inf in ity St rata Add ition, an addi tion to the C ity of Denton , according to the p lat recorded in Cabinet M,Page 163 or the P lat Records of Den ton Coun ty, Texas , con tinuing in a ll a total d istance of 798.37 fee t to a 1/2- inch iron rod with“WESTWOOD PS” cap set for corner ; sa id po int being a reent ran t corner of said Lot 11C and the northeast corner o f the sa id SeyedMoosavi t ract;THENCE, South 00 degrees, 12 minutes , 47 seconds West , along the southernmost west line of said Lot 11C, the wes t line of a tractof land descr ibed in Deed to North Texas S tate Fai r Assoc iat ion , recorded in Volume 346, Page 199 of the Deed Reco rd s of Den tonCounty, Texa s, a t a dis tance o f 147.23 feet pa ssing the southernmost southwes t corner of said Lot 11C and the northwe st corner ofthe said North Texas State Fa ir Associat ion tract , continuing in al l a tota l distance of 870 .53 feet to a fence post found fo r corner;said point being the southwest corner of the sa id Nor th Texas S tate Fai r As soc iation t ract, the no rthwest corner o f a t rac t of landdescribed in Specia l War ran ty Deed to RP I Den ton Center , LTD , reco rded in County C lerk No . 97-0045517 of the sa id Publ ic Records,the northeast corner o f sa id Lo t 1R, Denton Cen te r - Phase II , Lot 1R , and the southeast corner of the said Seyed Moo sav i tract ;THENCE, North 89 degrees, 26 minutes , 57 seconds We st, along the said north line o f Lot 1R (2015-251 ) and the said south line ofthe Seyed Moosav i t rac t, a dis tance o f 384.04 feet to a 1 /2 -inch iron rod w ith “WESTWOOD PS” cap set for corner ;THENCE, depart ing the sa id nor th l ine o f Lot 1R and the sa id sou t h line o f the Seyed Moo sav i tract, ove r and across the sa id SeyedMoosavi t ract, into and across the sa id Seyed Moosavi trac t, the fol lowing th ree (3) cal ls:North 00 degrees, 37 minutes , 18 seconds East , a d istance of 376.52 fee t to a 1/2- inch iron rod w ith “WESTWOOD PS” cap set forcorne r;North 36 degrees, 45 minutes , 03 seconds We st, a distance of 300 .95 feet to a 1/2-inch iron rod w ith “WESTWOOD PS” cap se t forcorne r; sa id point be ing the beg inn ing o f a tangent curve to the left ;In a northwesterly d irect ion a long sa id tangent curve to the lef t, hav ing a cent ral angle of 10 degrees, 30 m inu tes, 59 seconds, aradius of 1,916 .13 feet , a cho rd bear ing and dis tance o f North 42 degrees, 00 m inu tes, 32 second s West, 351 .20 feet, and an arcdistance of 351 .70 feet to the PO INT OF BEGINNING ;CONTAINING: 429 ,521 square feet or 9.860 acres o f land , more or less .GUY WIRESANITARY MANHO LE POWER POLESIGN OVERHEAD POWER L IN E WATER VALV E HAND HO LE/ JUNCT ION BOXTELEPHONE BOXFENCE L INE CURB & GUTTERASPHALT SUR FAC EGRAVEL SURFAC EPOHSTXEASEM ENT L INELOT LIN E BOUNDARY LINE POWER POLE W ITH LIGHT BMPWPLEGENDBOLLARDCONCRETE SURFACEMETAL PO STWOOD POST1/2- INCH IRON ROD WITH "WE STWOOD PS " CAP SE T FOUND MONUMENT FORCORNER (SE E LA BEL)1. Bearing system for th is su rvey i s based on observat ions made on the C ity of Denton Control Po int Numbers 15 , 55, 164 and 2011 on August20, 2024 . Distances repo rted have been sca led using a comb ined scale factor o f 1 .0001368728 .2. Subjec t prope rty is shown on the Nat iona l Flood In su rance P rogram Flood Insurance Rate Map for Denton County , Texas and IncorporatedAreas, Map No . 48121C0360G, Communi ty-Pane l No . 480194 0360 G, Revi sed Date : Apri l 18, 2011. A ll o f the subjec t property is shown tobe located in Zone "X" , Zone "X" - Other F lood Areas , Zone AE , and Zone "AE" - Floodway Areas on sa id map. Re levan t zones are defined onsaid map as fol lows:Zone "X" : Areas of 0.2% annual chance flood; a reas of 1% annua l chance f lood w ith average depths o f le ss than 1 foot or w ith drainage areas less than 1 square mile ; and areas p rotected by levees from 1% annual chance flood.Zone "X" - Other A rea s: Areas o f 0.2% annual chance flood; a rea s of 1% annual chance flood w ith average depths o f les s than 1 f ootor w ith drainage areas less than 1 square m ile ; and areas p ro tected by levees from 1% annual chance flood.Zone "AE": Base Flood E leva tions dete rmined.Zone "AE" - Floodway Areas : The f loodway is the channel o f a stream p lus any adjacent floodplain areas that must be kep t free of encroachment so that the 1% annua l chance f lood can be car ried without subs tan tial increases in flood heights .3. Thi s survey is based on deeds , easement s and/o r recorded plats and o the r records furnished by the c lient and/or the cl ient's representativeas well as signif icant vis ible monumen ts found on the subjec t p roper ty and adjacent propert ies, field measuremen ts and evidence ofboundaries found on the g round. Howeve r, this survey shal l not represen t war ranty of t itle or guaran tee of owne rship. The surveyor did notabstrac t the subjec t prope rty. Th is survey was pe rformed with the benef it of a cur ren t ti tle abst rac t provided by Ch icago T itle Insuran ceCompany, GF No . CTCP62- -KH , ef fect ive date September 17 , 2024, issued Septembe r 25, 2024.4. Thi s survey doe s no t provide a determ ina tion or opinion concerning the loca tion or exi stence of we tland s, fau ltl ines, toxic or hazardouswaste areas, subsidence , subsurface and environmental cond it ions o r geological issues . No statement is made conce rn ing the sui tability of the sub ject tract for any intended use, pu rpose or development .5. Square footage totals shown hereon or referenced herein are ba sed on mathemati ca l closures and do not necessari ly represent thepositional accuracy of the boundary monuments .6. The word "cer tify " or "ce rti ficate " as shown and used hereon means an express ion of profes siona l opin ion rega rd ing the fac ts of the surveyand does not cons ti tu te a wa rranty or guarantee , expressed or implied .7. Except a s speci fica lly s tated or shown on thi s plat , th is su rvey doe s not purport to re flec t any of the fol lowing which may be app licable to thesubject tract : easement s; build ing setback l ine s; res tric tive covenants ; subd ivis ion res tric tions ; zoning or o the r land-use regulation s;Agreements; Lease Agreements ; and ownersh ip t itle evidence.8. Any dec larat ion made hereon or here in is made to the or iginal purchaser o f the survey. It is not transferable to add it iona l institut ion s orsubsequent owner s.9. The su rveyo r did not ob serve ev idence o f recent earth mov ing work on si te at the t ime of the su rvey .GENERAL NOTESALTA/NSPS LANDTITLE SURVEY