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HomeMy WebLinkAboutA-25-07-7787 - 9.4 Ac C Poullalier Survey Ab 1007 Denton_McMath Final TM APPRAISAL ASSOCIATES Real Estate Appraisers & Consultants 101 S. Locust, Ste. 600 P.O. Box 158 Denton, Texas 76202 Phone: (940) 243-2387 tracy@tma-appraisal.com www.tma-appraisal.com TMA File #: A-25-07-7787 This is an Appraisal Report intended to comply with the reporting requirements set forth under Standards Rule 2-2 of the USPAP. The report presents practical explanations of the data, reasoning, and analysis incorporated in the appraisal process to develop the opinion of value, and includes descriptions of the subject property, the regional and local property market, and the opinion of highest and best use. The firm is not responsible for unauthorized use of this report. Specific/extraordinary assumptions and/or hypothetical conditions utilized in the value opinion:  It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value.  It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report.  It is a specific assumption of this report that the land size(s) reported for the subject are sufficiently correct as to not adversely affect the value opinion.  It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report.  It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. CLIENT: Denton ISD C/o Crystle Abbott, CTSBO P.O. Box 2387 Denton, TX 76202 SUBJECT PROPERTY: A Vacant Tract Located Behind McMath Middle School 9.4 acres in the C. Poullalier Survey, Ab. No. 1007, City of Denton, Tx DATE OF REPORT: August 21th, 2025 DATE OF VALUE: August 19th, 2025 INTENDED USE: Real Estate Portfolio Valuation INTENDED USER(S): Denton ISD DEFINITION OF MARKET VALUE The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised c. a reasonable time is allowed for exposure in the open market d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements com- parable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 PURPOSE OF APPRAISAL Estimate the market value of the fee simple interest of the subject property in “as vacant” condition as of the date(s) of value subject to the Assumptions and Limiting Conditions set forth herein. SCOPE OF WORK Conduct a visual survey of the subject, regional area and market area. Analyze secondary data sources to assist in assessing market conditions, zoning and tax information in the market area. Estimate the highest and best use of the property. Research market data of comparable properties confirmed by participants in the regional market area. Develop a credible opinion of the defined value for the subject property utilizing the applicable approaches to value. Present the opinion in the appropriate format. 1 Federal Reserve System, 12 CFR Part 225, FDIC 12 CFR 323 and OCC 12 CFR 34 VALUATION METHODOLOGY Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment are summarized as follows: Approaches to Value Approach Applicability to Subject Uses in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized The sales comparison approach is considered applicable as there are numerous similar land sales in the market and sufficient sales data for comparison. The cost approach is not applicable as the subject is appraised as vacant land. No improvements were noted during the visual inspection. The income capitalization approach is not applicable as the subject is considered vacant land and is not typically bought and sold for income producing abilities. RESEARCH AND ANALYSIS The extent of research and analysis conducted is detailed in the individual sections of this assignment. However, the steps can be summarized as follows: Researched area market unimproved, and improved sales and listing, researched replacement cost data, income, expense data, rates of returns, researched zoning, tax, property history, reviewed and researched property and comparable data site, improvement and other characteristics, and reviewed and research other relevant information pertaining to the subject, data used in analysis, and the market area. INSPECTION Jana Newburn and Tracy Runnels conducted an exterior inspection from the roadway on August 19th, 2025. County plat maps, aerials, and online mapping were also viewed throughout the appraisal process. PRIOR SERVICES STATEMENT USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuations, consulting, property management, brokerage, and any other services. We have not performed any services, as an appraiser or in any other capacity, regarding the subject property of this report within the three- year reporting period immediately preceding acceptance of this assignment COMPETENCY OF APPRAISER(S) Tracy Runnels has been active in real estate appraisal in North Texas since 2005. She obtained her Texas Certified General Real Estate Appraiser’s license in 2008. She has 20 years of experi- ence with Tommy Marshall & Associates/TM Appraisal Associates and has appraised properties throughout North Central Texas and Oklahoma. Her expertise and competency encompass 19+ years of appraisal in religious facilities, manufacturing, single and multi-family residential, hotel/mo- tel, farm/ranch, industrial, single family subdivision developments, retail, and office buildings. Jana Newburn has been active in real estate appraisal in North Texas since 2000. She obtained her Texas Certified General Real Estate Appraiser’s license in 2002 and has over 24 years of experience appraising and reviewing both commercial and residential real estate. She began her career with Tommy Marshall & Associates in 2000 and has recently returned to TM Appraisal Associates. She has worked for a variety of institutions over the years, including banks, mortgage lenders, AMCs, private lending institutions, attorneys, and individuals. Her expertise and competency include a variety of commercial and residential properties, including 1-4 family, farm/ranch, commercial land, religious facilities, light industrial, office, retail, development analysis, and eminent domain and right-of-way analysis. TM APPRAISAL ASSOCIATES Section A SECTION A SUBJECT PROPERTY OVERVIEW TM APPRAISAL ASSOCIATES Section A EXECUTIVE SUMMARY TMA File #: A-25-07-7786 Property Type: Vacant Land - 9.4 ac (409,464 SF +\-) Address: No Physical Address - The site is physically located directly south of Londonderry Lane/McMath Middle School & Adjacent to South Lakes Park, in the City of Denton. County/State: Denton/Texas Location: The site is located ~ 760 ft south of Londonderry Lane, and ~ 500’ east of Teasley Lane (per a GIS measurement); adjacent to McMath Middle School and South Lake Parks Legal Description: 9.4 Acres in the C. Poullalier Survey, Ab. No. 1007, City of Denton, Texas Date of Report: August 21st, 2025 Date of Value: August 19th, 2025 Highest and Best Use: Hold for development Estimated Marketing Time: 12-24 Months *Lines are approximate Purpose of Appraisal: Estimate the market value of the fee simple interest in “as vacant” condition for real estate valuation purposes Appraisers: Tracy Runnels, Principal Jana Newburn, Associate SITE DATA SUMMARY Land Area: 9.4 ac (409,464 SF +/-) per survey provided Zoning: “PF” – Public Facilities Shape: Irregular Topography: Near Level, gently sloping to street Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: Access to All city utilities Flood Plain: Zone X; Not adversely affected; FEMA Map 48121C070G, dated 4/18/2011 Improvements: None/Vacant Land Frontage: Jason Drive Private Road Access adjacent to McMath Middle School & South Lakes Park Value Conclusion 9.4 Acres +\- Cost Approach Sales Comparison Income Approach NA $1,740,000 NA Final Opinion of Value – 9.4 Acres +\- $1,740,000 TM APPRAISAL ASSOCIATES Section A PHOTOGRAPHS OF SUBJECT PROPERTY TM APPRAISAL ASSOCIATES Section A HISTORY OF THE SUBJECT PROPERTY As required by the Code of Professional Ethics and Standards of Professional Appraisal Practice established by the Appraisal Institute, the appraisal report must consider and analyze any current agreement of sale, options, listings, and any prior sales within the past three years. This analysis should reasonably disclose and verify: a. Grantor(s) - Grantee(s) b. Sale Date(s) c. Sale Price(s) and terms of financing, discounting the sale to a cash equivalent, when necessary. d. Any interrelated parties to each transaction. The subject data is reported in compliance with USPAP and no other pertinent information was noted other than is reported below. The data should not be used in lieu of a title search and is not a guarantee to the chain of title. The subject of this report is a tract of land utilized as the McMath Middle School track and is currently part of a larger parent tract of land. The subject site is being appraised “as vacant” as the track improvements belong to Denton ISD. Below is a brief description of the subject, the parent tract, and the history of ownership. According to the Denton Central Appraisal District the subject tract is currently part of the larger parent tract owned by the City of Denton, known as South Lakes Park. The parent tract is ~185.5098 acres +\-, the subject tract is ~9.4 acres +\-. The parent tract has been owned by the City of Denton for a period exceeding 3 years. According to NTREIS MLS & Costar, as well as a general Google search the parent tract has not been listed for sale or have sold in the prior 3 years. No listings or sales were found during our research. The parent tract is assessed under account no. 34591. Deed history indicates the parent has been entitled to the City of Denton since 6/23/1992; recorded in Vol. 3257, Pg. 971. The purpose of this appraisal is to provide market value of the subject parcel (9.4 acres) for consideration of a land swap between the City Denton and Denton ISD. The subject parcel would need to be re-platted and assigned its own account number upon reaching an agreement. A survey of the subject 9.4 acres tract was provided by DISD and is located in the site section for the reader’s reference. TM APPRAISAL ASSOCIATES Section B SECTION B SUBJECT PROPERTY ANALYSIS TM APPRAISAL ASSOCIATES Section B MARKET AREA ANALYSIS The subject market area is considered to be the City of Denton, the county seat of Denton County. The market area is 70-80% developed and the area is in the slow growth stage of the real estate cycle. New construction is occurring, and land uses consist of retail/commercial on primary thoroughfares and in the city center, light industrial uses near railroad spurs and airports, recreational uses located on nearby lakes, and residential on acreage and agricultural uses located in the ETJ and in unincorporated Denton County. No external adverse conditions were noted in the area. The market area is bound by the Denton city limits to the north, south, east, and west. MARKET AREA MAP TM APPRAISAL ASSOCIATES Section B North Texas Council of Governments Population Summary TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B Denton County Profile Summary: Denton County, Texas, is a rapidly growing and diverse area located in the Dallas-Fort Worth metropolitan region. Here’s a detailed community profile of Denton County: General Information Population: As of 2023, Denton County's population is approximately 1.1 million, making it one of the fastest-growing counties in Texas. Location: Denton County is situated in North Texas, bordered by Cooke County to the north, Collin County to the east, Tarrant County to the south, and Wise County to the west. Economy Industry: The economy of Denton County is diverse, with strong sectors in education, technology, manufacturing, and healthcare. The area has seen substantial growth in business and industry due to its proximity to the Dallas-Fort Worth metroplex. Employment: Major employers include the University of North Texas, Texas Woman’s University, and several large corporations in technology and manufacturing. Education Schools: The county is served by multiple independent school districts (ISDs), including Denton ISD, Lewisville ISD, and Flower Mound ISD, among others. The schools are known for their strong academic programs and extracurricular activities. Higher Education: Denton County is home to several higher education institutions, including the University of North Texas (UNT) and Texas Woman’s University (TWU) in Denton, as well as campuses of Collin College. Culture and Recreation Parks and Recreation: The county offers numerous parks, trails, and recreational facilities. Lake Lewisville and Lake Ray Roberts are popular spots for boating, fishing, and outdoor activities. Cultural Attractions: Denton County has a vibrant cultural scene with various museums, theaters, and music venues. The city of Denton is particularly known for its music festivals and historic downtown area. Community Events: The county hosts a range of community events and festivals throughout the year, celebrating local culture, arts, and heritage. Housing and Real Estate Housing Market: The real estate market in Denton County is diverse, with options ranging from suburban neighborhoods to rural properties. The county has seen a surge in new residential developments due to its growing population. TM APPRAISAL ASSOCIATES Section B Development: New housing and commercial developments are ongoing, with a focus on accommodating the increasing demand from new residents and businesses. Transportation Roads: Denton County is well connected by major highways, including Interstate 35E, which provides access to Dallas and other areas of the metroplex. State highways and local roads also facilitate regional travel. Public Transit: The county is served by the Denton County Transportation Authority (DCTA), which provides bus and commuter rail services connecting Denton to neighboring areas, including Dallas. Community and Lifestyle Demographics: Denton County is diverse, with a mix of urban, suburban, and rural populations. It attracts a range of residents, from young professionals and families to retirees. Lifestyle: The county offers a blend of suburban and rural lifestyles, with access to urban amenities and a high quality of life. The area is known for its strong community spirit, good schools, and recreational opportunities. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community. Its strong economy, educational institutions, and quality of life make it a desirable place to live and work. City of Denton, Texas - Community Profile Denton, Texas, located in the northern part of the Dallas-Fort Worth (DFW) metroplex, is a growing city with a rich history, vibrant community, and strong economic prospects. Here's an overview of the community: Population & Demographics: Population: Denton has an estimated population of around 160,000 as of 2023, making it one of the larger cities in North Texas. The city has experienced consistent growth in recent years, fueled by its proximity to the DFW metro area, local universities, and expanding job opportunities. Demographics: The population is diverse, with a median age of about 29 years, reflecting the large student population. Denton is home to two major universities: the University of North Texas (UNT) and Texas Woman’s University (TWU), contributing to a significant portion of its residents being students. Economy & Employment: Key Industries: Denton's economy is driven by education, healthcare, retail, and manufacturing. UNT and TWU are major employers, along with Denton Independent School District and various healthcare providers. TM APPRAISAL ASSOCIATES Section B Employment Growth: The city's employment base is steadily growing, with opportunities in higher education, government, and healthcare leading the way. Its proximity to DFW International Airport and other key hubs also supports logistics and transportation industries. Education: Higher Education: The University of North Texas is a leading public research university with over 40,000 students, and Texas Woman's University focuses on healthcare and education programs. These institutions play a significant role in shaping Denton's cultural and economic landscape. Public Schools: Denton is served by the Denton Independent School District, known for its quality education offerings and serving over 30,000 students across the city and surrounding areas. Housing & Cost of Living: Housing: Denton offers a range of housing options, from single-family homes in suburban neighborhoods to student apartments near the university campuses. The median home price is around $355,000, making it relatively affordable compared to other parts of DFW. Cost of Living: While housing prices are on the rise, Denton remains more affordable than central Dallas or Fort Worth. The overall cost of living in Denton is about 5-10% lower than the national average, with lower housing costs but slightly higher transportation expenses due to its suburban nature. Culture & Recreation: Cultural Scene: Denton is known for its music and arts scene, often called the "Austin of North Texas" because of its vibrant live music culture. The city hosts the annual Denton Arts & Jazz Festival, which draws thousands of visitors. Parks and Recreation: Denton offers numerous parks, trails, and outdoor activities, including Lake Ray Roberts and Clear Creek Natural Heritage Center. The city is also working to expand its green spaces and recreational facilities as its population grows. Transportation: Connectivity: Denton is well-connected via Interstate 35, providing easy access to Dallas, Fort Worth, and Oklahoma. The Denton County Transportation Authority (DCTA) operates bus and rail services, including the A-train, which connects Denton to the DFW light rail system. TM APPRAISAL ASSOCIATES Section B Outlook: Denton continues to experience strong population and economic growth. It retains its small-town charm while offering the amenities of a larger urban center, driven by its universities, arts, and evolving infrastructure. Denton’s blend of education, affordability, and cultural vibrancy makes it a desirable place to live for students, professionals, and families alike. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community TM APPRAISAL ASSOCIATES Section B SITE ANALYSIS The subject of this report is a tract of land utilized as the McMath Middle School track and is currently part of a larger parent tract of land. The subject site is being appraised “as vacant” as the track improvements belong to Denton ISD. Please note: It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. For description purposes and to assist the reader, the subject site characteristics are described below. Summary of Salient Facts: Property Type: Vacant Land - 9.4 ac (409,464 SF +\-) Address: No Physical Address - The site is physically located directly south of Londonderry Lane/McMath Middle School & Adjacent to South Lakes Park, in the City of Denton. County/State: Denton/Texas Location: The site is located ~ 760 ft south of Londonderry Lane, and ~ 500’ east of Teasley Lane (per a GIS measurement); adjacent to McMath Middle School and South Lake Parks Legal Description: 9.4 Acres in the C. Poullalier Survey, Ab. No. 1007, City of Denton, Texas Land Area: 9.4 ac (409,464 SF +/-) per survey provided Zoning: “PF” – Public Facilities Shape: Irregular Topography: Near Level, gently sloping to street Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: Access to All city utilities Flood Plain: Zone X; Not adversely affected; FEMA Map 48121C070G, dated 4/18/2011 Improvements: None/Vacant Land Frontage: Jason Drive Private Road Access adjacent to McMath Middle School & South Lakes Park TM APPRAISAL ASSOCIATES Section B The site does not currently have a physical address. It is physically located directly south of Londonderry Lane/McMath Middle School & Adjacent to South Lakes Park, in the City of Denton, and is legally described as 9.4 Acres in the C. Poullalier Survey, Ab. No. 1007, City of Denton, Texas. The subject of this report is a tract of land utilized as the McMath Middle School track and is currently part of a larger parent tract of land. The subject site is being appraised “as vacant” as the track improvements belong to Denton ISD. The site does not offer public road frontage; it is currently accessed by private drive (Jason Dr). Jason drive is a private road that is accessed by Londonderry Lane. Londonderry Lane is an interior concrete paved roadway in the city of Denton with adequate visibility, traffic, and access. Londonderry Land has concrete curbs and drainage with partial concrete sidewalks. According to the survey provided, the subject physical is located adjacent to McMath Middle School (directly south). The site consists of 9.4 acres (409,494 SF +\-) of land and is considered irregular shaped and is gently sloping to South Lakes Park The frontage-to-depth ratio and ingress/egress are considered below average due to no public roadway access. The site offers adequate utility availability in sufficient quantities for development with all city utilities and services available to site. Currently the City of Denton has the site zoned “PF” Public Facilities. The surrounding land uses are primarily multi-family residential, municipal/institutional, and some mixed-use commercial scattered through the area. There is minimal vacant land and/or redevelopment land scattered throughout the area. The subject is located directly across from south of McMath Middle School and is being utilized for recreation (running track) purposes for the school. Typical utility and right-of-way easements are assumed to located along the site borders. Utility easements are considered typical and not considered to adversely affect the property and the shared access easement is typical of similar development properties. No adverse external influences were observed in close proximity. According to available FEMA flood maps no portion of the subject is located in the floodplain and indicates the subject site is in Zone X, outside the flood area (see flood map and discussion on the following pages). We have made the specific assumption that the subject site is not affected by flood area and drainage is adequate. No subsurface and/or mineral rights have been valued in this report or are included and none of the comparable sales included any subsurface and/or mineral rights. Site Improvements include track and field improvements which are of average design and have adequate upkeep. The subject of this report is a tract of land utilized as the McMath Middle School track and is currently part of a larger parent tract of land. The subject site is being appraised “as vacant” as the track improvements belong to Denton ISD. TM APPRAISAL ASSOCIATES Section B The following table is a high-level summary of the site characteristics. Site Characteristic Summary Item Description Land Area: 9.4 ac (409,464 SF+\-) Source of Site Area: Provided Survey Shape: Irregular shaped, Conducive to development Access: Private Drive Topography: Gently sloping to South Lake Park Drainage: No issues observed during onsite inspection. Environmental Hazards: None reported or observed during site inspection Flood Map: Date: Description: 48121C0370G April 18th, 2011 Zone X outside 100-year flood Zoning PF – Public Facilities Utilities: Electric Water Sewer Trash Telephone Gas City of Denton City of Denton City of Denton City of Denton Multiple providers Unable to confirm; however, generally the city of Denton is serviced by ATMOS Energy TM APPRAISAL ASSOCIATES Section B Subject Site Survey – 9.4Ac +\- TM APPRAISAL ASSOCIATES Section B We have used the survey provided for the site size. It is a specific assumption of this report that the land size(s) reported for the subject is sufficiently correct as to not adversely affect the value opinion. Typical utilities are assumed to be located along site borders. It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. No adverse external influences were observed in close proximity. TM APPRAISAL ASSOCIATES Section B Does not appear to be affected by flood hazard area. Drainage appears to be adequate as of the effective date of value. It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. The applicable map number is FEMA Map 48121C0370G dated April 18th, 2011. Tract 1 Flood Map is presented below. Flood Map TM APPRAISAL ASSOCIATES Section B ZONING ANALYSIS Municipalities typically regulate land use within their municipal jurisdiction by the implementation and enforcement of zoning ordinances. Zoning ordinances purportedly screen and control urban development, promote consistency, compatibility, and contribution to the community, and define the quality and character of the neighborhood area. The subject site is situated in the City of Denton zoning and planning jurisdiction. After reviewing city GIS maps & municipal code the subject is located in the “PF” – Public Facilities. Below is a brief description of the PF purpose as outlined in the City of Denton’s municipal code. PF Purpose - “This district is intended to provide an alternative zoning district and development process to accommodate substantial development for residential, commercial, professional, recreational, industrial, or other activities, including combinations of uses appropriately requiring flexibility under controlled conditions, not otherwise attainable under conventional base zoning districts.” According to the City of Denton municipal code “PF” would allow for a variety of higher density mixed use, office, and commercial uses. This is a permitted use of the subject site. It is a specific assumption of this report that any future intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. As noted in the Site Section of this report the surrounding land uses are primarily multi-family residential, municipal/institutional, and some mixed-use commercial scattered through the area. There is minimal vacant land and/or redevelopment land scattered throughout the area. See the zoning maps on the following page for a depiction of location, layout, and zoning. TM APPRAISAL ASSOCIATES Section B CITY OF DENTON ZONING MAP SUBJECT LOCATION TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TAX AND ASSESSMENT ANALYSIS The subject property is within the tax jurisdictions of the City of Denton, Denton County, and Denton Independent School District. According to Denton CAD, the subject is currently assessed under account number 34591 (Parent Tract). Size Assessed Value Land 8,080,807 $4,040,404 $0.50 / SF Improvements 0 $0 $0.00 / SF Market Assessed Value $4,040,404 $0.50 / SF Tax Rate Assessed Value City $0.58542000 $4,040,404 $23,653 School $1.15690000 $4,040,404 $46,743 County $0.18786900 $4,040,404 $7,591 Estimated Tax Liability $1.93018900 $4,040,404 $77,987 Segment Tax Jurisdiction AV/unit Tax Liability We utilized the 2024 tax rates, and the 2025 assessed value. The site has a total assessed value of $77,978. The assessed value for 2024 is inclusive of the parent tract’s market value, which is ~185.5098 acres. Based on the assed values, the 2025 estimate of ad valorem taxes for the subject parent tract is approximately ~$77,987 annually. Based on our opinion of market value of $1,740,000 of the subject 9.4-acre tract and utilizing the 2024 tax rates (2025 tax rates are not yet established), the estimated tax liability for the subject site “As Vacant” for 2025 is ~$33,585. Please see the Sales Comparison Approach, Section C of this report for details. TM APPRAISAL ASSOCIATES Section B HIGHEST AND BEST USE The concept of Highest and Best Use can be defined as being: “The reasonably probable use of property that results in the highest value.” “To be reasonably probable, traditionally a use must meet certain conditions:  The use must be physically possible (or it is reasonably probable to render it so).  The use must be legally permissible (or it is reasonably probable to render it so).  The use must be financially feasible. Uses that meet the three criteria of reasonably probable uses are tested for economic productivity, and the reasonably probable use with the highest value is the highest and best use.” 2 The site does not currently have a physical address. It is physically located directly south of Londonderry Lane/McMath Middle School & Adjacent to South Lakes Park, in the City of Denton, and is legally described as 9.4 Acres in the C. Poullalier Survey, Ab. No. 1007, City of Denton, Texas. The site does not offer public road frontage; it is currently accessed by private drive (Jason Dr). Jason drive is a private road that is accessed by Londonderry Lane. Londonderry Lane is an interior concrete paved roadway in the city of Denton with adequate visibility, traffic, and access. Londonderry Land has concrete curbs and drainage with partial concrete sidewalks. According to the survey provided the subject physical is located adjacent to McMath Middle School (directly south). The site consists of 9.4 acres (409,494 SF +/-) of land and is considered irregular shaped and is gently sloping to South Lakes Park The frontage-to-depth ratio and ingress/egress are considered below average due to no public roadway access. The site offers adequate utility availability in sufficient quantities for development with all city utilities and services available to site. Currently the City of Denton has the site zoned “PF” Public Facilities. The surrounding land uses are primarily multi-family residential, municipal/institutional, and some mixed-use commercial scattered through the area. There is minimal vacant land and/or redevelopment land scattered throughout the area. The subject is located directly across from south of McMath Middle School and is being utilized for recreation (running track) purposes for the school. Typical utility and right-of-way easements are assumed to be located along the site borders. Utility easements are considered typical and not considered to adversely affect the property and the shared access easement is typical of similar development properties. No adverse external influences were observed in close proximity. According to available FEMA flood maps no portion of the subject is located in the floodplain and indicates the subject site is in Zone X, outside the flood area. 2The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, 2020, Pages 305-315 TM APPRAISAL ASSOCIATES Section B No subsurface and/or mineral rights have been valued in this report or are included and none of tomparable sales included any subsurface and/or mineral rights. Site Improvements include track and field improvements which are of average design and have adequate upkeep. The subject of this report is a tract of land utilized as the McMath Middle School track and is currently part of a larger parent tract of land. The subject site is being appraised “as vacant” as the track improvements belong to Denton ISD. Considering the surrounding influences, the subject’s zoning, as well as the subject’s site size and shape, it is considered to offer a variety of public or institutional uses. The highest and best use of the subject site “As Vacant” is to hold for development with a public or institutional use. T SECTION C VALUATION ANALYSIS TM APPRAISAL ASSOCIATES Section C APPROACHES TO VALUE The estimation of value involves a systematic process in which the problem is defined; the work necessary to solve the problem is planned; and the data required is acquired, classified, analyzed and interpreted into an estimate of value. In this process, three basic approaches: the Cost Approach, the Income Approach, and the Sales Comparison Approach. When one or more of these approaches is not applicable in the appraisal process, justification is warranted. A brief explanation of each approach follows: In the Cost Approach, the appraiser must first estimate the value of the subject site by comparing it to similar sites that have recently sold or are currently offered for sale. The replacement cost new of the improvements, as determined by comparison to similarly constructed properties, is then estimated. Depreciation from all sources is determined and subtracted from the replacement cost new of the improvements, to arrive at their present worth. The present worth of all improvements is added to the estimated site value with the result being the indicated value by this approach. The age/condition and/or design may render this approach inapplicable due to the subjectivity of the estimation of depreciation. The Income Approach is a process in which the anticipated flow of future benefits (actual dollar income or amenities) is discounted to a present worth figure through the capitalization process. The appraiser is primarily concerned with the future benefits resulting from net income. Net income is the remainder after deduction of expenses of operation from effective gross income. The steps in this approach include estimating potential gross income by comparison with competing properties and estimating expenses (derived from historical and/or market experience) to determine a projected net income stream. The income stream is then capitalized into an indication of value by using capitalization rates extracted from competitive properties in the market or by using other techniques when applicable. The Sales Comparison Approach involves the comparison of similar properties that have recently sold or similar properties that are currently offered for sale, with the subject property. These properties are compared to the subject with regard to differences or similarities in market conditions, age/condition, location, physical characteristics, and any conditions influencing the sale. The notable differences in the comparable properties are then adjusted from the subject property to indicate a value range for the property being appraised. When sufficient sales data is available, these adjustments are best determined by the actions of typical buyers and sellers in the subject's market. This value range, as indicated by the adjusted comparable properties, is then correlated into a final indicated value for the subject property by this approach. The value estimates, as indicated by the applicable approaches, are reconciled into a final value estimate of the property's worth. The sales comparison approach is considered applicable as there are numerous similar land sales in the market and sufficient sales data for comparison. The cost approach is not applicable as the subject is vacant land. No improvements were noted during the visual inspection. The income capitalization approach is not applicable as the subject is considered vacant land and is not typically bought and sold for income producing abilities. The Sales Comparison Approach is applicable and developed in the following pages. TM APPRAISAL ASSOCIATES Section C SALES COMPARISON APPROACH This approach to value, also termed the Market Approach, requires a comparison of similar competitive properties that have recently sold to the subject property. In this market area, the most typically used unit of comparison is the Sale Price per Square Foot (SP/SF). The unit of comparison is obtained by dividing the property's sale price by the applicable unit. Since this unit of comparison involves a comparison of physical attributes, adjustments must be made for any differences that affect sale prices. These differences include financing conditions, market conditions, location, size, and various utility attributes. This is a reliable unit of comparison, assuming a high degree of comparability. The sales comparison approach is considered applicable as there are numerous similar land sales in the market and sufficient sales data for comparison. Recent sales of relatively similar properties within the market area are analyzed as a basis for valuation of the subject property. Those sales, which are considered to be the most reliable and comparable to the subject, are presented on the following pages. TM APPRAISAL ASSOCIATES Section C Sales Comparable Summary and Adjustment Table TM APPRAISAL ASSOCIATES Section C Comparable Sales Location Map TM APPRAISAL ASSOCIATES Section C LAND SALES DETAIL PAGES TM APPRAISAL ASSOCIATES Section C COMPARABLE LAND SALE NUMBER 1 Lines are approximate Address: TBD Springhill Drive City: Aubrey County/State: Denton/Texas 2024 DCAD GIS Aerial *Lines Are Approximate SALES DATA Grantor: Steven & Kristin Kenley Grantee: Aubrey ISD Sale Date: 3/20/23 Sale Price: $$1,100,000 Site Size: 6.25 acres (272,250 SF +\-) SP/SF: $4.04/SF Terms of Sale: Market Zoning/Use: Similar Utilities: All available Verified By: Public Record/office files, DCAD, Deed 2023-28514 Flood Plain: None – Zone X Improvements: None Easements: Typical Utility Easements assumed Other: Accessed by private roadway or drive. No direct public access. TM APPRAISAL ASSOCIATES Section C COMPARABLE LAND SALE NUMBER 2 Lines are approximate Address:2250 Hunters Creek City: Denton County/State: Denton/Texas *2021 DCAD GIS Aerial *Lines are Approximate SALES DATA Grantor: Marksman Hunters Creek Grantee: Fund V HC Apartments LLC Sale Date: 11/27/2023 Sale Price: $2,100,000 Site Size: 8.044 acre (350,397 SF +\-) SP/SF: $5.99/SF Terms of Sale: Market Zoning: Similar Utilities: All available Verified By: DCAD, Deed 2023-125754/SVN Broker/Office Files Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section C COMPARABLE LAND SALE NUMBER 3 Lines are approximate Address: NWQ Lake Sharon & Parkridge City: Denton County/State: Denton/Texas *2021 DCAD GIS Aerial *Lines Are Approx. SALES DATA Grantor: Foy Taylor Sons Farms etal Grantee: TDI GP LLC Sale Date: 6/22/2022 Sale Price: $2,400,000 Site Size: 9.52 acre (414,691SF +\-) SP/SF: $5.79/SF Terms of Sale: Market Zoning: Similar Utilities: All available Verified By: DCAD, Deed 2022-92273, Office files Flood Plain: None – Zone X Improvements: None of Contributory Value Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section C Analysis of Comparable Sales The adjustments of the comparable sales utilized in the adjustment grid are discussed below. The unit of comparison developed in this approach from the comparable sales to estimate value is considered to be one primarily utilized by market participants for this property type. Property Rights Conveyed: Each of the comparable sales involved the sale of a fee simple interest similar to the subject. When considering the subject property rights appraised, adjustment for property rights conveyed of the comparable sales is not warranted. Financing Terms: All of the sales are reported to have market terms or cash to seller transactions; therefore, adjustment consideration is not warranted. Conditions of Sale: All of the sales utilized in this analysis are reported to be arms-length transactions warranting no adjustment consideration for conditions of sale. Market Conditions: The comparable sales are considered to have transacted in current market conditions in 2022-2023 and do not warrant adjustment consideration. Location/Site/View: The subject site is an interior site located with private road/drive access considered inferior to Sales 2-3 in regard to location related characteristics warranting downward adjustments accordingly. Sale 1 is considered the most similar in location characteristics and similar private access. No adjustment is applied. Size: Smaller properties tend to sell for more per unit than similar larger properties due to the economies of scale. The subject consists of 409,464 SF (9.4 acres) of gross land area. Sale 1 is slightly smaller than the subject, warranting downward adjustment for the smaller site size. The remaining sales are the most similar in terms of size and are not adjusted. Zoning/Use: The subject site is zoned PF/Public Facilities which allows for a wide variety of uses governmental, commercial, office, and some retail uses subject to approval by the City of Denton. The sales and pending sale are zoned for similar uses and no adjustments are applied. Utilities: The subject has all municipal utilities in sufficient quantities for development onsite. The sales are considered to offer similar utility availability warranting no adjustment consideration. Flood Hazard Area/Easements: The subject property is considered to be not affected by flood hazard area. The sales are similar to the subject with no adjustment consideration due to flood hazard. Shape/Topography: The subject property has adequate shape and topography for development. All three sales are considered to have similar utility of shape and topography conducive to development overall, similar to the subject and do not warrant adjustment consideration. TM APPRAISAL ASSOCIATES Section C Value Conclusion by Unit of Comparison The Sales Price per SF Method (SP/SF Method) is utilized to develop an opinion of the subject property value in this approach. The adjusted range of comparable sales is approximately $4.17/SF to $4.80/SF with an average price per SF of $4.53/SF and median price per SF of $4.63/SF. Placing weighted emphasis on Sale 1 due to lack of direct public access, a price per square foot of $4.25/SF is felt to be appropriate for the subject property due to the lack of direct road frontage and utility of the subject site. Site Area (SF) +/- SP/SF Value Indication 409,464 x $4.25 =$1,740,222 Value Rounded $1,740,000 TRACT 1 - VALUE INDICATION BY UNIT OF COMPARISON After consideration of the adjusted vacant land sales data, the estimated market value of the subject site in “as vacant” condition as of the effective date of value is $1,740,000 rounded. SECTION D MARKETING, RECONCILATION, ASSUMPTIONS & CERTIFICATIONS TM APPRAISAL ASSOCIATES Section D MARKETING PERIOD/EXPOSURE TIME Per USPAP the exposure period for the subject property must be analyzed. Five factors must be considered in the exposure period, the ability of those marketing the property, the type of property, the listing price, the size and location of the market and the comparability of available market data. An adept marketer will tend to move the property in a shorter period than will an average one and an inept marketer may require twice as much. Exposure period must be assessed in terms of whether the property was originally listed reasonably close to its true value as perceived by the market. Any property listed significantly above its true value will tend to attract no interested parties due to the perception that it is a waste of time pursuing its purchase. Further, a property listed noticeably below the market's perception of the value will tend to sell in a shorter period than may otherwise be required and therefore distort the concept of "reasonable marketing period". A study by M/PF, a real estate market research firm in Dallas, polled real estate brokers as to the "reasonable marketing period" for various types of real estate. The response was 9 - 12 months. Implicit in this response is that the property is listed reasonably close to the market's perception of its true value. Historically, purchasers of any property which is considered by the market to have value are available regardless of product oversupply, availability of financing or lack thereof. The definition of market value specifically requires that there exists a potential buyer and potential seller, each acting prudently and knowledgeably and implies a consummation of a sale. Therefore, an additional factor to be considered in analyzing the marketing period is the size and location of the market. For very large industrial properties or for very specialized properties such as petrochemical refining, large granaries, etc., the market may be relatively small, specialized and national or international rather than local or regional. More typical real estate such as apartments, shopping centers, office buildings and vacant land has a market that is local, regional national or international implying a shorter marketing period and exposure time. The date of the comparable sales must be considered. If no data is available to indicate current expectations of current market conditions and is only available for market conditions unlike current conditions, the value indicated by the data may not necessarily reflect current expectations and the analysis must include these circumstances. Properties similar to the subject in the market area are marketable to a wide group of potential purchasers in the local region, state, and nation. Exposure time is considered to be twelve months. Without exception, all real estate offices contacted expressed, if offered at or near market value and had the property been correctly exposed to the market for the past twelve months, the property should sell for a reasonable price. After development of the preceding pages of market data, it is our opinion that had the property been offered at or slightly above the market value conclusion an exposure period from 9 - 12 months is considered necessary for the property to potentially consummate a sale closer to the appraised market value. An exposure period of twelve to eighteen months or less is considered applicable for the subject property. TM APPRAISAL ASSOCIATES Section D RECONCILIATION AND FINAL OPINION OF VALUE Cost Approach Not Developed Sales Comparison Approach $1,740,000 Income Approach Not Developed The Cost Approach utilizes replacement cost estimated by using actual costs for comparable facilities and/or Marshall and Swift Valuation Services. Indirect costs associated with property are also determined. The land value is estimated by analyzing current land sales within the area. The estimated land value is added to indicate the value estimate by this approach. This approach is considered inapplicable due to the subject being appraised as vacant land with no improvements. The Sales Comparison Approach is considered a generally reliable method because the units of comparison are market based. The units of comparison are direct, which renders the comparison highly indicative of market behavior and the primary approach utilized by market participants. Overall, this approach is applicable and utilized in this analysis since the property type is typically traded in the market area. The Income Approach is generally considered to be an appropriate valuation method when the property has rental income-producing potential. The potential gross income, stabilized vacancy rate and operating expenses are estimated from market data. The income capitalization approach is not applicable as the subject is considered vacant land and is not typically bought and sold for income producing abilities. TM APPRAISAL ASSOCIATES Section D The value estimates as indicated by the applicable approaches are reconciled into a final value estimate of fair market value. Utilizing the Sales Comparison approach as it best indicates the actions of buyers and sellers in the marketplace, the estimated market value of the fee simple interest for the subject property in “as vacant” condition subject to the Basic Assumptions and Limiting Conditions as of August 21th, 2025, is: FINAL OPINION OF VALUE OF THE SUBJECT PROPERTY “AS VACANT” - - ONE MILLION SEVEN HUNDRED FORTY THOUSAND DOLLARS - - - -$1,740,000- - We appreciate the opportunity to provide this appraisal for you. Should you have any questions regarding the appraisal, contact the firm at (940) 243-2387. TM APPRAISAL ASSOCIATES Section D ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 2. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 3. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 4. 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. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been reported, stated, defined, and/or considered in this appraisal report. 9. It is assumed that all required license, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 10. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. 11. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. TM APPRAISAL ASSOCIATES Section D 12. The firm is not qualified to detect hazardous waste and/or toxic materials. Any comment by the firm that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The descriptions and comments are the result of the routine observations made during the appraisal process. 13. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with disabilities act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility. 14. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications. 15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 16. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the firm, and in any event, only with proper written qualification and only in its entirety. Specific/extraordinary assumptions and/or hypothetical conditions utilized in the value opinion:  It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value.  It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report.  It is a specific assumption of this report that the land size reported for the subject is sufficiently correct as to not adversely affect the value opinion.  It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report.  It is a specific assumption of this report that the intended usage meets or exceeds the specifications set forth by any applicable zoning ordinance. TM APPRAISAL ASSOCIATES Section D CERTIFICATION OF THE APPRAISER(S) I certify that, to the best of my 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 personal, unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. 4. The compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. The appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6. The analyses, opinions, and conclusions are developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 7. I, Jana Newburn, have made a personal inspection of the property that is the subject of this report. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. As of the date of report, I, Jana Newburn, am a State Certified General Real Estate Appraiser. 10. As of the date of report, I, Tracy Runnels, am a State Certified General Real Estate Appraiser. 11. The appraisers have not appraised or provided other valuation services for the subject property in the past three years. 12. The value estimate is not valid unless this certification is included in the appraisal. 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