HomeMy WebLinkAboutTXDOT Appraisal P 13Form ROW-A-5
(Rev. 08/11)
Page 1
REAL ESTATE APPRAISAL REPORT - TEXAS DEPARTMENT OF TRANSPORTATION
Address of Property: S Line of Jim Christal Rd, W of S Masch Branch Rd, Denton, Denton
County, Texas
District: Dallas
Property Owners: City of Denton, a Texas home-rule municipal corporation Parcel: 13 - (P00054469)
Address of Property Owners: 215 E McKinney St., Denton, Texas 76201 ROW CSJ: 2250-02-024
Occupant’s Name: Denton Energy Center Federal Project No: N/A
Whole: Partial: Acquisition Highway: SL 288 County: Denton
Purpose of the Appraisal
The purpose of this appraisal is to estimate the market value of the fee simple title to the real property to be acquired, encumbered by any easements
not to be extinguished, less oil, gas and sulphur. If this acquisition is of less than the whole property, then any special benefits and /or damages to the
remainder property must be included in accordance with the laws of Texas.
Market Value
Market value is defined as follows: “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not
obliged to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable
and for which it either is or in all reasonable probability will become available within the reasonable future.”
Certificate of Appraiser
I hereby certify:
That it is my opinion the total compensation for the acquisition of the herein described property is $1,022,206 as of November 6, 2020, based upon
my independent appraisal and the exercise of my professional judgment;
That on November 6, 2020, and other dates, I personally inspected in the field the property herein appraised; that I afforded City of Denton, a Texas
home-rule municipal corporation, the property owner, the opportunity to accompany me at the time of the inspection (the property owners were not
present at the time of inspection);
That the comparables relied upon in making said appraisal were as represented by the photographs contained in the appraisal report and were
inspected on December 11, 2020;
That I have not revealed and will not reveal the findings and results of such appraisal to anyone other than the proper officials of the Texas Department
of Transportation or officials of the Federal Highway Administration until authorized by State officials to do so, or until I am required to do so by due
process of law, or until I am released from this obligation by having publicly testified to such findings;
That my compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.
The appraiser has considered access damages in accordance with Section 21.042(d) of the Texas Property Code, as amended by SB18 of the Texas
82nd Regular Legislative Session and finds as follows:
1.Is there a denial of direct access on this parcel? No
2.If so, is the denial of direct access material? N/A
3.The lack of any access denial or the material impairment of direct access on or off the remaining property affects the market value of the
remaining property in the sum of $0.00
I certify to the best of my knowledge and belief:
That the statements of fact contained in this report are true and correct;
That the reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal,
unbiased professional analyses, opinions, and conclusions;
That I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to
the parties involved;
That my analyses, opinions and conclusions were developed, and this report has been prepared in conformity with the appropriate State laws,
regulations, and policies and procedures applicable to the appraisal of right of way for such purposes, and that to the best of my knowledge no portion
of the value assigned to such property consists of items which are noncompensable under the established law of said State, and any decrease or increase
in the fair market value of subject real property prior to the date of valuation caused by the public improvement for which such property is to be
acquired, or by the likelihood that the property would be acquired for such improvement, other than that due to the physical deterioration within the
reasonable control of the owner, has been disregarded in estimating the compensation for the property.
To the best of my knowledge, the value does not include any items
which are not compensable under State law. Appraiser Signature
Ben Cervenka Jr., MAI – TX-1320341-G
Certification Number
March 23, 2021
Date Reviewing Appraiser Date
Charles Stearman TX 1335388 G April 22, 2021
TABLE OF CONTENTS
Section One
Identification of the Property ......................................................................................................... 1.1
Economic Unit .............................................................................................................................. 1.2
Identification of the Appraisal Problem ......................................................................................... 1.2
Date of Value Opinion .................................................................................................................. 1.3
Date of Report .............................................................................................................................. 1.3
Appraisal Report Option ............................................................................................................... 1.3
Definition of Market Value ............................................................................................................ 1.3
Intended Use/Intended User ........................................................................................................ 1.3
Statement of Prior Services Rendered ......................................................................................... 1.3
Property Rights Appraised ........................................................................................................... 1.4
Statement of Ownership ............................................................................................................... 1.4
Scope of Work .............................................................................................................................. 1.4
Covid-19 Statement ...................................................................................................................... 1.6
History of the Subject Property ..................................................................................................... 1.6
Estimate of Exposure Time .......................................................................................................... 1.6
Estimate of Marketing Time .......................................................................................................... 1.7
Project Description ....................................................................................................................... 1.8
Hypothetical Conditions .............................................................................................................. 1.10
Extraordinary Assumptions ........................................................................................................ 1.10
Section Two
Photographs of Subject Property ................................................................................................. 2.0
Regional Analysis ......................................................................................................................... 2.2
City/Neighborhood Analysis ....................................................................................................... 2.11
Site Description and Analysis ..................................................................................................... 2.19
Zoning and Other Land Use Restrictions ................................................................................... 2.33
Tax Analysis ............................................................................................................................... 2.36
Neighborhood Industrial Market Analysis ................................................................................... 2.37
Section Three
Property Valuation Summary ....................................................................................................... 3.0
Highest and Best Use Analysis – Whole Property ....................................................................... 3.2
Sales Comparison Approach ........................................................................................................ 3.5
Land Sales Presentation .............................................................................................................. 3.6
Land Sales Analysis – Economic Unit 1 ..................................................................................... 3.11
Land Sales Analysis – Economic Unit 2 ..................................................................................... 3.21
Cost Approach ............................................................................................................................ 3.29
Discussion of Cost Approach – Whole Property ........................................................................ 3.30
Sales Comparison Approach ...................................................................................................... 3.31
Income Approach ....................................................................................................................... 3.32
Section Four
Part to be Acquired ....................................................................................................................... 4.0
Remainder Before The Acquisition ............................................................................................... 4.0
Highest and Best Use – Part Acquired ......................................................................................... 4.1
Legal Description of the Proposed Fee Simple Acquisition Area ................................................. 4.3
Section Five
Property Valuation Summary ....................................................................................................... 5.0
Highest and Best Use Analysis – Remainder Tract ..................................................................... 5.2
Sales Comparison Approach – Remainder Economic Unit 1 ....................................................... 5.5
Land Sales Analysis – Remainder Economic Unit 1 .................................................................... 5.6
Sales Comparison Approach – Remainder Economic Unit 2 ..................................................... 5.15
Land Sales Analysis - Remainder Economic Unit 2 ................................................................... 5.16
Cost Approach ............................................................................................................................ 5.25
Sales Comparison Approach ...................................................................................................... 5.26
Income Approach ....................................................................................................................... 5.27
Section Six
Compensation Summary .............................................................................................................. 6.0
Certification .................................................................................................................................. 6.1
Assumptions and Limiting Conditions .......................................................................................... 6.3
Addenda
Appraiser’s Qualifications and Certifications
Pre-Appraisal Contact with Property Owners
Inspection Letter
USPS Certified Mail Receipt
Five Year Sales History
SECTION ONE
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.1
IDENTIFICATION OF THE PROPERTY
The subject property is located along the south line of Jim Christal Road, just west of South Masch Branch
Road in Denton, Denton County, Texas, and has municipal addresses of 8161, Jim Christal Road, 8201
Jim Christal Road, and 5581 Jim Christal Road, Denton, Texas 76201. According to the Vesting Deed
Records ( ), and the survey provided by Pacheco Koch Consulting Engineers, Inc., the
subject property consists of a tract of land comprising 340.4690 acres (14,830,830 square feet). However,
based upon our research of the market data available and discussions with market participants, a typical
economic unit for the most likely use of the subject property is between 100 to 200 acres. Thus, the subject
will comprise two economic units, whereby Economic Unit 1 contains 172.7647 acres (7,525,630 square
feet) located on the western portion of the subject and Economic Unit 2 contains 167.7043 acres (7,305,199
square feet) located on the eastern portion of the subject. Additionally, both economic units will have direct
access to Jim Christal Road and SL 288. The subject is currently being utilized as the Denton Energy
Center, a natural gas power plant.
Furthermore, approximately 0.9085 acres (based upon measurements taken via Google Earth) of
Economic Unit 1 lies within a street easement, and approximately 0.6531 acres of Economic Unit 2 lies
within a street easement. The portion of the site to be acquired is a 32.1821 acre (1,401,852 square foot)
tract for right-of-way use. Additionally, 15.5367 acres (676,780 square feet) of the part to be acquired are
located within Economic Unit 1 and 16.6454 acres (725,072 square feet) of the part to be acquired are
located within Economic Unit 2. Furthermore, according to the Railroad Commission of Texas, natural gas
gathering lines managed by Enlink Midstream Services, LLC and Atmos Pipeline - Texas, bisect the
proposed acquisition. To comply with depth regulations, the gathering lines will need to be reconstructed
at a greater depth before the proposed SL 288 can be constructed. A cost to cure for this item has not been
included in this report as this cure item will be addressed through TxDOT's utility relocation process. This
portion of the subject property is being acquired for the construction of traffic lanes and shoulders on SL
288. We determined that the use of the main improvements will not be affected by the proposed acquisition
as the acquisition is located a sufficient distance from the main improvements and will not negatively affect
internal circulation, drainage, ingress/egress, or utility of Remainder Economic Unit 1 (157.2280 acres) or
Remainder Economic Unit 2 (151.0589 acres). Additionally, this appraisal report pertains to real property
only, and any personal property located upon the subject has not been valued within this report. It should
be noted, any gas wells and related appurtenances are also considered personal property. A summary of
the legal description and an aerial photo of the subject property are as follows:
Being a tract of land located in the Moses H. Davis Survey, Abstract No. 377, the William
Wilburn Survey, Abstract No. 1419, and they Meyers & Brunnett Survey, Abstract No. 1699,
City of Denton, Denton County, Texas, Being a tract of land described in Special Warranty
Deed to the City of Denton, Recorded in Instrument No. 2016-143882 of the Official Real
Property Records of Denton County, Texas (ORPRDCT)
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.2
Image courtesy of Denton CAD (Image Capture Date: November 2020). The light purple highlighted area depicted in the aerial photograph
outlines the whole property. The yellow highlighted area depicts the outline of the proposed acquisition. The green line is the Enlink Midstream Services, LLC’s natrual gas line, and the red line depicts the location of the street easement.These boundaries are approximations based upon
our best estimates given the surveys provided.
ECONOMIC UNIT
The definition of an economic unit is as follows: A portion of a larger (parent) parcel, vacant or improved,
that can be described and valued as a separate and independent parcel. Physical characteristics such as
location, access, size, shape, existing improvements, and current use are considered when identifying an
economic unit. The economic unit should reflect marketability characteristics similar to other properties in
the market area. In appraisal, the identification of economic units is essential in highest and best use
analysis of a property. 1
IDENTIFICATION OF THE APPRAISAL PROBLEM
The appraisal problem of this report is to provide a credible opinion of the market value of the fee simple
estate and recommended compensation regarding the part to be acquired and damages to the remainder,
if any, as of the effective date of appraisal (November 6, 2020).
1 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, pages 72-
73.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.3
DATE OF VALUE OPINION
The subject property was inspected on November 6, 2020, and other dates by Ben Cervenka, Jr., MAI,
Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Katherine E. Braden. The effective date of valuation is
November 6, 2020. The appraisers afforded the property owners the opportunity to accompany us on the
appraisal inspection. The property owners were not present at the time of inspection.
DATE OF REPORT
The report date of this appraisal is March 23, 2021.
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 properly understand it. 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.
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)
INTENDED USE/INTENDED USER
This appraisal report has been prepared for, and is intended to be used by the Texas Department of
Transportation, their counsel, and assigns. The intended use of this appraisal report has been identified by
the appraisers based on communications with the client, the Texas Department of Transportation, at the
time of the assignment to assist in determining recommended compensation for the part to be acquired and
damages to the remainder, if any, of the subject property regarding the potential acquisition by the Texas
Department of Transportation. Therefore, the intended user of this report is the Texas Department of
Transportation, 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, Ben Cervenka, Jr., MAI, Mitchell B. Todd, MAI, Michael A. Keane, MAI, and
Katherine E. Braden have rendered no services as appraisers or in any other capacity, regarding the
property that is the subject of this report within the three-year period immediately preceding acceptance of
this assignment.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.4
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 domain, police
power, and escheat" 2 This differs from the leased fee estate which is defined as "the lessor’s, or landlord’s,
interest. A landlord holds specified rights that include the right of use and occupancy conveyed by lease to
others. The rights of the lessor (the leased fee owner) and the lessee (leaseholder) are specified by contract
terms contained in the lease". 3 Easement ownership is defined as “the right to use another’s land for a
stated purpose”. 4
The fee simple estate of the subject is being appraised. This ownership interest is subject to any zoning
ordinances, easements, restrictions of record and other applicable codes and ordinances of record.
STATEMENT OF OWNERSHIP
According to the surveys and the Denton County Deed Records, title of the subject is vested in City of
Denton, a Texas home-rule municipal corporation.
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 the recommended compensation as of the effective date of appraisal (November 6,
2020). In compliance with the 2020-2021 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.
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 which will satisfy its intended
use. 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 right-of-way acquisition
purposes and our knowledge of the local market, we are competent to complete this appraisal assignment.
2 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 90.
3 The Appraisal Institute, The Appraisal of Real Estate (Fourteenth Edition), Chicago, Illinois, 2013, page 72.
4 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 71.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.5
Our research began with a review of the five-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 sources including CoStar.com, Denton CAD, and NTREIS.net, as well as several other resources
including owners, buyers, lenders, and other parties knowledgeable of the subject property. The Regional
and Neighborhood Analyses 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 Fort Worth, Dallas, and other communities comprising
the Metroplex.
The site analysis included an inspection of the property by the appraisers, a review of the survey of the part
to be acquired, plat map, zoning maps, and FEMA flood insurance rate maps. The subject was inspected
on November 6, 2020, and other dates. The inspection was conducted by Ben Cervenka, Jr., MAI, Mitchell
B. Todd, MAI, Michael A. Keane, MAI, and Katherine E. Braden, of Todd Property Advisors. The effective
date of the market value opinion is November 6, 2020. The applicable zoning ordinance of the subject
property was verified with the zoning records of the surrounding cities. The tax rates, assessed values, and
information regarding the subject's tax debt were verified by the Denton CAD and the individual taxing
jurisdictions via the appraisal district’s website (www.dentoncad.com).
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 utilized to value the subject property (land only). As of the effective date of the appraisal, the
subject property consists of a tract of land comprising 340.4690 acres (14,830,830 square feet). However,
based upon our research of the market data available and discussions with market participants, a typical
economic unit for the most likely use of the subject property is between 100 to 200 acres. Thus, the subject
will comprise two economic units, whereby Economic Unit 1 contains 172.7647 acres (7,525,630 square
feet) located on the western portion of the subject and Economic Unit 2 contains 167.7043 acres (7,305,199
square feet) located on the eastern portion of the subject. Additionally, both economic units will have direct
access to Jim Christal Road and SL 288. The subject is currently being utilized as the Denton Energy
Center.
Furthermore, approximately 0.9085 acres (based upon measurements taken via Google Earth) of
Economic Unit 1 lies within a street easement, and approximately 0.6531 acres of Economic Unit 2 lies
within a street easement. The portion of the site to be acquired is a 32.1821 acre (1,401,852 square foot)
tract for right-of-way use. Additionally, 15.5367 acres (676,780 square feet) of the part to be acquired are
located within Economic Unit 1 and 16.6454 acres (725,072 square feet) of the part to be acquired are
located within Economic Unit 2. Furthermore, according to the Railroad Commission of Texas, natural gas
gathering lines managed by Enlink Midstream Services, LLC and Atmos Pipeline - Texas, bisect the
proposed acquisition. To comply with depth regulations, the gathering lines will need to be reconstructed
at a greater depth before the proposed SL 288 can be constructed. A cost to cure for this item has not been
included in this report as this cure item will be addressed through TxDOT's utility relocation process. This
portion of the subject property is being acquired for the construction of traffic lanes and shoulders on SL
288. We determined that the use of the main improvements will not be affected by the proposed acquisition
as the acquisition is located a sufficient distance from the main improvements and will not negatively affect
internal circulation, drainage, ingress/egress, or utility of Remainder Economic Unit 1 (157.2280 acres) or
Remainder Economic Unit 2 (151.0589 acres). As permitted by USPAP Standard Rule 1-2 (e)(v), only the
land and affected site improvements (gravel paving) are valued within this appraisal. Therefore, we have
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.6
provided a value of land only via the Sales Comparison Approach and we have provided a value of the site
improvements (gravel paving) located within the part to be acquired via the Cost Approach. The land value
via the Sales Comparison Approach is added to the contributory value of the site improvements within the
acquisition via the Cost Approach to arrive at a value opinion of the whole property. The Cost, Sales
Comparison, and Income Approaches as related to improved property are not considered applicable and
have been excluded.
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.
COVID-19 STATEMENT
This report does not portend to fully quantify the impact of the recently declared COVID-19 pandemic and
its potential impact on local and/or national economic conditions. Todd Property Advisors continues to
strive to understand the potential impacts of COVID-19 on real property values. In performing due diligence
in these extraordinary times, we have referred to the Appraisal Institute’s Guide Note 10, Appraising in the
Aftermath of a Disaster, and Guide Note 12, Analyzing Market Trends. Many of the suggestions within
these two guide notes have been considered and applied when relevant within this appraisal.
Given that an appraisal report’s credibility relies on current market conditions, the coronavirus pandemic’s
impact on market conditions must be considered. However, in most markets it is not yet clear to what extent,
if any, market conditions are affected. Related and complicating factors include continued high demand for
some product types in geographic submarkets as well as investor demand for stabilized investment
properties and historically low mortgage interest rates and abundant equity capital pursuing yields and
stability.
Our client is encouraged to conduct their own due diligence and analysis regarding current market
conditions which could be impacted by the COVID-19 pandemic and how these potential impacts may relate
to the subject property and their interest in it.
HISTORY OF THE SUBJECT PROPERTY
The subject property sales history was researched through a search available from Denton CAD property
records, CoStar.com, and NTREIS.net among various other sources. According to Denton County Deed
Records, title of the subject is vested in City of Denton, a Texas home-rule municipal corporation since
November 2016. However, details of this transaction, including the purchase price and whether or not it
was an arm’s length transaction, were not available to the appraisers. To our knowledge, the subject was
not listed for sale or under contract to be sold at the time of this appraisal. No arm’s length conveyances
have been uncovered regarding the subject during the last five years.
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 2020-2021, exposure time is defined as, “an opinion, based
on supporting market data, of the 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
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.7
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 it might take to sell a real or personal property
interest at the concluded market value level during the period immediately after the effective date of an
appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective
date of an appraisal.” 5 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.
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.
5 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 140.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.8
PROJECT DESCRIPTION
The proposed SL 288 project includes the construction of a four-lane new location frontage road system
from I-35W south of Denton to I-35 north of Denton, in Denton County, Texas, and is approximately 9.0
miles in length. The proposed project right of way (ROW) would include a median that would accommodate
future construction of an ultimate mainlane roadway. Construction of the ultimate mainlane roadway would
be based on projected traffic and funding and would require additional environmental analysis prior to
construction. At this time, only the construction of the frontage road system is planned.
The new location SL 288 frontage road system would include a northbound and southbound frontage road
facility. For rural areas, the roadway would consist of two travel lanes (one 12-foot-wide lane and one 14-
foot-wide lane for bicycle accommodation) and 8-foot-wide inside and outside shoulders in each direction,
with open ditch drainage. For urbanized areas, the roadway would consist of two travel lanes (one 12-foot-
wide lane and one 14-foot-wide lane for bicycle accommodation) in each direction, with curb and gutter
drainage. The roadway would also include 6-foot-wide sidewalks along both sides of the road throughout
the project limits. The proposed project ROW would include a median (variable width) that would
accommodate the future construction of an ultimate mainlane roadway.
The project area includes approximately 26.6 acres of existing roadway ROW, 401.5 acres of proposed
ROW, 1.2 acres of proposed permanent drainage easements, and 13.2 acres of proposed ROW by others.
The proposed project would, subject to final design considerations, displace five single-family residences
and one commercial property.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
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TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
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JURISDICTIONAL EXCEPTIONS
According to the 2020-2021 Uniform Standards of Professional Appraisal Practice (USPAP), a
Jurisdictional Exception is “an assignment condition established by applicable law or regulation, which
precludes an appraiser from complying with a part of USPAP.” It is the appraisers understanding that based
upon previously established public policy, the appraisal of real property for eminent domain purposes
regarding a public improvement project must exclude any value enhancement or loss in value due to the
public improvement project which is contrary to Standards Rule 1-4(f) of USPAP. Therefore, for the
purposes of this assignment we have not considered the effect on value of the whole property and the part
to be acquired caused by the public improvement project, which invokes a jurisdictional exception.
However, the public project is not considered to have influenced the value of the comparables utilized or
the subject property. The market value indicated by the sales comparables is reflective of a minimal level
of knowledge of the project by market participants. However, it is our opinion that the sales prices of the
comparable sales and the market value and compensation estimated within this report are exclusive of
significant project influence to the best level possible.
HYPOTHETICAL CONDITIONS
According to the 2020-2021 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.” The remainder property after the acquisition
has been appraised under the hypothetical condition that the public project is complete and in place and
the part acquired has been put to the use for which it was acquired as of the date of appraisal. This
hypothetical condition is consistent in keeping with previously established public policy. The use of this
hypothetical condition may affect the results of this assignment.
EXTRAORDINARY ASSUMPTIONS
According to the 2020-2021 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 TWO
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PHOTOGRAPHS OF SUBJECT PROPERTY
Include Each Major Improvement
Parcel No.: 13 - (P00054469) Local Address: S Line of Jim Christal Rd, W of S
Masch Branch Rd, Denton, Denton County, Texas
Date Taken: November 6, 2020 Taken By: Michael A. Keane, MAI
1. Point from which taken: Existing ROW along Jim Christal
Rd
Looking: South towards the acquisition area
2. Point from which taken: Existing ROW along Jim Christal
Rd
Looking: South towards the acquisition area
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PHOTOGRAPHS OF SUBJECT PROPERTY
Include Each Major Improvement
Parcel No.: 13 - (P00054469) Local Address: S Line of Jim Christal Rd, W of S
Masch Branch Rd, Denton, Denton County, Texas
Date Taken: November 6, 2020 Taken By: Michael A. Keane, MAI
3. Point from which taken: Existing ROW along Jim Christal
Rd
Looking: West along Jim Christal Rd, subject at left
4. Point from which taken: Existing ROW along Jim Christal
Rd
Looking: East along Jim Christal Rd, subject at right
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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 northwest of Austin, 240 miles northeast 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.
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
Subject Property
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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.
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
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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.
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
Social forces, as defined in The Appraisal of Real Estate, Fourteenth Edition, published by The Appraisal
Institute and 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) 2020 population estimates, North
Central Texas estimated that the region had added approximately 1,174,280 new residents between 2010
and 2020 for a total population of 7,714,230. A chart detailing the individual county growth rates is located
below included the most recent year over year data.
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According to NCTCOG’s 2020 Population Estimates document: “The estimated January 1, 2020 population
for the NCTCOG region is 7,714,230. Last year, the region added 159,480 people. In 2019, 12 cities grew
by 10% or more. Fort Worth led the region in growth, adding more than 24,000 people last year while Dallas
grew by more than 12,000, followed by Frisco (Collin County) with 11,290. Collin, Denton, Dallas, and
Tarrant counties each added more than 25,000 people last year, accounting for 83% of the regional growth.
The region has added almost 1.2 million new residents since 2010.”
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 CoStar, Dallas/Fort Worth area apartment rents were up approximately 2.0
percent in January 2020 when compared to January 2019. Additionally, CoStar reports “the Dallas-Fort
Worth multifamily market continues to perform well, benefiting from healthy demand for new apartments
amid an ongoing supply wave. Two key demand drivers for the apartment market are continuous in-
migration and job growth during this expansion. Last year, the region added 139,000 new residents, more
than any other metro in the country. The same is true regarding employment: North Texas added just over
119,500 new jobs in 2019, with sustained growth of about 3%. With around 739,000 units, Dallas-Fort Worth
is the third-largest market in the United States, with assets valued at just over $102 billion.”
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
County Name
2010 Est.
Pop. Apr. 1
2011 Est.
Pop. Jan. 1
2012 Est.
Pop. Jan. 1
2013 Est.
Pop. Jan. 1
2014 Est.
Pop. Jan. 1
2015 Est.
Pop. Jan. 1
2016 Est.
Pop. Jan. 1
2017 Est.
Pop. Jan. 1
2018 Est.
Pop. Jan. 1
2019 Est.
Pop. Jan. 1
2020 Est.
Pop. Jan. 1
Jan. 2019
to Jan.
2020 Abs.
Change
Jan. 2019
to Jan.
2020 %
Change
Collin 782,341 792,150 795,390 827,780 851,920 873,840 901,170 932,530 969,780 1,010,330 1,043,140 32,810 3.25%
Dallas 2,368,139 2,380,510 2,383,790 2,415,060 2,435,800 2,455,050 2,478,970 2,502,270 2,529,150 2,554,770 2,591,820 37,050 1.45%
Denton 662,614 669,930 677,880 714,000 736,900 761,040 784,840 814,560 844,260 874,240 901,120 26,880 3.07%
Ellis 149,610 151,030 152,570 158,070 161,200 165,010 168,690 173,410 183,360 189,820 197,780 7,960 4.19%
Erath 37,890 38,340 38,340 40,700 41,010 41,460 43,540 43,850 44,200 44,700 45,670 970 2.17%
Hood 51,182 51,420 53,670 58,880 61,680 64,400 64,620 64,840 65,060 65,960 66,890 930 1.41%
Hunt 86,129 86,860 87,840 90,070 91,240 92,530 93,110 94,350 95,960 97,410 99,280 1,870 1.92%
Johnson 150,934 151,440 151,790 155,240 156,710 158,880 161,670 164,970 169,160 173,700 177,900 4,200 2.42%
Kaufman 103,350 103,440 104,050 106,400 108,120 109,300 113,530 116,140 119,670 124,850 128,520 3,670 2.94%
Navarro 47,735 47,940 47,940 48,470 48,590 48,900 49,030 49,170 49,740 50,250 50,870 620 1.23%
Palo Pinto 28,111 28,180 28,290 28,420 28,590 28,710 28,660 28,660 28,710 28,820 28,960 140 0.49%
Parker 116,927 117,570 118,040 120,640 121,830 124,630 127,980 130,150 131,210 134,620 136,600 1,980 1.47%
Rockwall 78,337 78,990 79,570 83,400 85,900 88,200 90,570 93,130 97,990 101,020 106,340 5,320 5.27%
Somervell 8,490 8,550 8,550 8,690 8,800 8,950 9,230 9,420 9,640 9,820 9,980 160 1.63%
Tarrant 1,809,034 1,818,240 1,832,660 1,875,930 1,899,900 1,922,470 1,945,320 1,966,440 1,989,810 2,024,030 2,064,060 40,030 1.98%
Wise 59,127 59,540 59,600 60,920 61,690 61,970 62,240 62,460 62,700 64,060 65,300 1,240 1.94%
16-County Region 6,539,950 6,584,130 6,619,970 6,792,670 6,899,880 7,005,340 7,123,170 7,246,350 7,390,400 7,548,400 7,714,230 165,830 2.20%
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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 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 October 2020 Economic
Profiles and is currently the most recent available.
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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
After a revised over-the-month increase of 48,100 jobs in September, Total Nonagricultural Wage and
Salary Employment grew at a faster pace in October with 118,100 jobs added. The private sector added
136,300 jobs after a gain of 46,800 positions in September. Overall, ten of the 11 major industries added
jobs over the month. Since October 2019, Texas shed 499,200 jobs including 459,200 private sector
positions. Despite this, Total Nonfarm employment grew by 786,000 jobs since April 2020. Two major
industries achieved positive annual growth in October, the most since March 2020 when widespread
closures related to COVID-19 began.
Professional and Business Services employment grew for the sixth consecutive month reporting a series-
high gain of 45,200 jobs in October. Professional, Scientific, and Technical Services reached a series-high
employment level of 874,700 jobs in October, while Administrative and Support and Waste Management
and Remediation Services added a record 29,300 jobs over the month. Leisure and Hospitality added
27,700 positions over the month. Accommodation and Food Services gained 21,500 jobs with Arts,
Entertainment, and Recreation adding 6,200 jobs. Trade, Transportation, and Utilities added 19,300
positions in October following a slight decrease in September.
The Texas unemployment rate dropped from 8.3 percent in September to 6.9 percent in October. The
Texas unemployment rate increased by 3.4 percentage points since October 2019. The U.S. rate
decreased 1.0 percentage points over the month to 6.9 percent in October. The U.S. unemployment rate
rose by 3.3 percentage points from an October 2019 reading of 3.6 percent.
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The Texas civilian labor force (CLF) decreased by 128,600 persons in October following a decrease of
167,200 persons in September. The CLF decreased by 70,000 people over the year. The number of
employed increased by 66,100 over the month, while the number of unemployed fell by 194,700.
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 prior to the COVID-19 pandemic. 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 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.
At the beginning of 2020, the Dallas/Fort Worth region had been impacted positively by a resurgence in the
national economy since the Great Recession of 2008. The resurgence continued throughout 2019 and was
anticipated to continue into the near future. The D/FW market in general gained economic growth and
remained attractive for investment opportunities. Given this, indications were that market conditions within
this region were moving in a positive direction; however, the forgoing is subject to the COVID-19 statement
Civilian Labor Force Estimated for Texas and the United States
Seasonally Adjusted (In Thousands)
Yearly Yearly
Oct-20 Sep-20 Oct-19 Change Oct-20 Sep-20 Oct-19 Change
Civilian Labor Force 14,094,292 14,198,955 14,161,315 -67,023 Civilian Labor Force 161,053,000 160,073,000 164,576,000 -3,523,000
Employed 13,144,000 13,035,174 13,686,986 -542,986 Employed 150,433,000 147,796,000 159,067,000 -8,634,000
Unemployed 950,292 1,163,781 474,329 475,963 Unemployed 10,620,000 12,277,000 5,510,000 5,110,000
Unemployment Rate 6.7%8.2%3.3%3.4%Unemployment Rate 6.6%7.7%3.3%3.3%
TX Labor Force Statistics US Labor Force Statistics
Seasonally Adjusted (In Thousands)
Texas Employment by Industry
Total Nonagricultural 11,556,632 100.0%12,638,421 100.0%12,559,578 100.0%-8.6%-8.0%
Total Private 11,089,132 96.0%12,170,008 96.3%12,097,839 96.3%-8.9%-8.3%
Goods Producing 1,867,630 16.2%2,005,595 15.9%2,026,943 16.1%-6.9%-7.9%
Natural Resources and Mining 247,672 2.1%291,151 2.3%311,677 2.5%-14.9%-20.5%
Construction 761,406 6.6%804,619 6.4%806,541 6.4%-5.4%-5.6%
Manufacturing 858,552 7.4%909,825 7.2%908,725 7.2%-5.6%-5.5%
Service Providing 9,689,002 83.8%10,632,826 84.1%10,532,635 83.9%-8.9%-8.0%
Trade, Transportation, and Utilities 2,444,585 21.2%2,597,887 20.6%2,570,925 20.5%-5.9%-4.9%
Information 199,153 1.7%217,851 1.7%217,547 1.7%-8.6%-8.5%
Financial Activities 772,066 6.7%792,256 6.3%778,747 6.2%-2.5%-0.9%
Professional and Business Services 1,701,797 14.7%1,827,290 14.5%1,796,512 14.3%-6.9%-5.3%
Education and Health Services 2,790,442 24.1%2,985,413 23.6%2,922,817 23.3%-6.5%-4.5%
Leisure and Hospitality 1,030,807 8.9%1,399,611 11.1%1,437,194 11.4%-26.4%-28.3%
Other Services 282,652 2.4%344,105 2.7%347,154 2.8%-17.9%-18.6%
Public Administration 467,500 4.0%468,413 3.7%461,739 3.7%-0.2%1.2%0
% of Total % of Total % of Total Quarterly
Change
Yearly
ChangeINDUSTRY TITLE Q2 2020
Employment
Q1 2019
Employment
Q2 2019
Employment
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discussed previously in this report. It remains our contention at this time it is impossible to fully quantify the
impact of the COVID-19 pandemic, subsequent lockdowns and economic disruptions on the commercial
real estate market. However, it is our opinion that if there were to be a quick rebounding of the local and
national economies post COVID-19, it would result in only a minimal loss in value, if any, to the subject,
due to the strong Dallas/Fort Worth economy leading into the pandemic.
.
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CITY/NEIGHBORHOOD ANALYSIS
A neighborhood is defined in The Appraisal of Real Estate, Fourteenth Edition, published by the Appraisal
Institute, as a group of complementary land uses. 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.
The boundaries of the subject neighborhood are approximately outlined in blue.
The following neighborhood description will include 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.
Location
The subject neighborhood is considered to be the western portion of Denton County and includes the
outlying areas of the Cities of Denton, Bolivar, and Sanger, the Cities of Ponder, Dish, and Krum, and the
Subject Property
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surrounding unincorporated areas. The subject property lies in the southeastern portion of this
neighborhood. The neighborhood will be defined as follows:
North: FM 455
South: FM 407
East: I35W
West: Denton County Line
Neighborhood Development
The neighborhood is primarily developed with agricultural and rural residential development along
secondary roadways and commercial and industrial development along major thoroughfares. The
neighborhood is currently in the growth stage of the neighborhood life cycle as the neighborhood is
experiencing increasing demand and construction of residential and commercial uses. The subject
neighborhood is bisected by Hickory Creek which runs east/west through the subject neighborhood.
Additionally the Gulf, Colorado and Santa Fe Railroad bisects the subject neighborhood. Furthermore, the
Denton Enterprise Airport is located in the eastern portion of the neighborhood along FM 1515.
Demographic Profile
According to a study prepared utilizing The CCIM Site to do Business, the neighborhood is projected to
experience a population growth of 5.81 percent annually from 2020-2025. Current population for the
neighborhood is 33,760 persons and has increased from 22,434 in 2010. The population is anticipated to
grow to 44,776 in 2025. Median household income for the neighborhood is $87,553 and is anticipated to
grow to $94,844 in 2025. The following reports were generated by The CCIM Site to do Business for the
subject neighborhood.
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The subject property is located approximately 35-40 miles northwest of the Dallas Central Business District.
Primary north/south roadways within the neighborhood include the following: I-35W, I-35, FM 2450, and
FM 156. Primary east/west roadways include the following: US 380, FM 2449, FM 1173 and FM 407.
The subject’s immediate area has experienced a significant amount of recent and on-going commercial
along primary roadways (US 380 and I-35) with residential and agricultural development along secondary
roadways.
Conclusion
The neighborhood has been impacted positively by a recovery and growth in the national economy since
the end of the Great Recession. The progress continued throughout 2019 and into the first quarter of 2020
and was 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 were that market
conditions within this neighborhood were moving in a positive direction; however, the forgoing is subject to
the COVID-19 statement discussed previously in this report.
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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. 6
LOCATION AND LEGAL DESCRIPTION
The subject property is located along the south line of Jim Christal Road, just west of South Masch Branch
Road, in Denton, Denton County, Texas. A summarized legal description of the subject property is as follows:
Being a tract of land located in the Moses H. Davis Survey, Abstract No. 377, the William
Wilburn Survey, Abstract No. 1419, and they Meyers & Brunnett Survey, Abstract No. 1699,
City of Denton, Denton County, Texas, Being a tract of land described in Special Warranty
Deed to the City of Denton, Recorded in Instrument No. 2016-143882 of the Official Real
Property Records of Denton County, Texas (ORPRDCT)
SIZE AND SHAPE
A parcel map and a survey of the part to be acquired for the subject tract are located on the following pages.
According to the Vesting Deed Records ( ), and the survey provided by Pacheco Koch
Consulting Engineers, Inc., the subject property consists of a tract of land comprising 340.4690 acres
(14,830,830 square feet). However, based upon our research of the market data available and discussions
with market participants, a typical economic unit for the most likely use of the subject property is between
100 to 200 acres. Thus, the subject will comprise two economic units, whereby Economic Unit 1 contains
172.7647 acres (7,525,630 square feet) located on the western portion of the subject and Economic Unit 2
contains 167.7043 acres (7,305,199 square feet) located on the eastern portion of the subject. The subject
is considered irregular in shape. The portion of the site to be acquired is a 32.1821 acre (1,401,852 square
foot) tract for right-of-way use. Additionally, 15.5367 acres (676,780 square feet) of the part to be acquired
are located within Economic Unit 1 and 16.6454 acres (725,072 square feet) of the part to be acquired are
located within Economic Unit 2. This portion of the subject property is being acquired for the construction
of SL 288.
The definition of an economic unit is as follows: A portion of a larger (parent) parcel, vacant or improved,
that can be described and valued as a separate and independent parcel. Physical characteristics such as
location, access, size, shape, existing improvements, and current use are considered when identifying an
economic unit. The economic unit should reflect marketability characteristics similar to other properties in
the market area. In appraisal, the identification of economic units is essential in highest and best use
analysis of a property. 7
6 The Appraisal Institute, The Appraisal of Real Estate (Fourteenth Edition), Chicago, Illinois, 2013, page 190.
7 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, pages 72-
73.
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ACCESS AND EXPOSURE
The subject parcel can be accessed from most areas of the Metroplex by traveling northwest on I-35W. The
motorist would then take the exit to FM 1515/Airport Road. Then turn left onto West Oak Street (Jim Christal
Road), travelling west for approximately 2.40 miles before arriving at the subject to the south. The subject
tract has access from FM Jim Christal Road with approximately 4,150 feet of frontage along Jim Christal
Road (measured via Denton CAD). The subject property also has approximately 1,990 feet of frontage
along Tom Cole Road. All of the frontage is useable. After the proposed acquisition, a portion of Jim Christal
Road will be removed. Remainder Economic Unit 1 will have access from the proposed SL 288 southbound
frontage road and Remainder Economic Unit 2 will have access from the proposed SL 288 northbound
frontage road. Thus, the subject is considered to have good access and good exposure characteristics for
future development.
PARCEL MAP
Image courtesy of the Denton CAD (Image Capture Date: December 2020). The approximate boundary of the subject is outlined in light blue.
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SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue and the street easement is highlighted in red. All of the highlighted areas lie
within the proposed acquisition.
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SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue
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SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue
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RIGHT-OF-WAY IMPROVEMENTS AND ELEVATION CHANGES TO SL 288 AFTER ACQUISITION
The SL 288 project by the Texas Department of Transportation is to create the right-of-way of SL 288 and
expand the right-of-way several intersecting roadways. According to elevation schematics below and on
the following pages, the proposed construction of SL 288 at the subject will not be elevated significantly
compared to current elevation along the subject tract. The elevation of the proposed northbound and
southbound frontage roads will vary between approximately 0 - 5 feet above current elevation for the
majority of the subject property. The frontage roads will be approximately 10 - 20 feet above the current
elevation through the existing regulatory floodway portion of the subject property. However, the slope to
access the new roadway is considered to be typical. Thus, the elevation change will not negatively affect
the utility or value of the remainder of the subject property.
Subject Property
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Subject Property
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PROPOSED NORTHBOUND FRONTAGE LANES
The light blue line represents the approximate southern boundary of the subject property.
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The light blue line represents the approximate northern boundary of the subject property.
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PROPOSED SOUTHBOUND FRONTAGE LANES
The light blue line represents the approximate southern boundary of the subject property.
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The light blue line represents the approximate northern boundary of the subject property
TOPOGRAPHY
The topography of the subject tract is considered to be level. The topography of the site should not limit the
use of the property provided proper site work is undertaken.
SOILS
Strict attention should be taken to the soils, insofar as preliminary site work preparation and excavation is
concerned, as damage may occur to the improvements if proper precautions are not undertaken. However,
these soil characteristics are common throughout the Metroplex and should not seriously hinder the
development potential of the site, provided proper site preparation and planning is undertaken. Based upon
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the extent of development in the subject neighborhood, there is no anticipated difficulty with improvements
built upon these subsoil conditions, assuming proper design and workmanship.
EXISTING EASEMENTS
The subject tract appears to be encumbered by typical utility easements, pipeline easements and access
easements. Furthermore, approximately 0.9085 acres (based upon measurements taken via Google Earth)
of Economic Unit 1 lies within a street easement, and approximately 0.6531 acres of Economic Unit 2 lies
within a street easement. This street easement is located along the northern property line of the subject
property. The existing street easement has a negative effect on the subject tract, as this easement grants
virtually no use rights to the property owner. Furthermore, approximately 0.2496 acres of this street
easement lies within the proposed acquisition area of Economic Unit 1, while approximately 0.3277 acres
of this street easement lies within the proposed acquisition area of Economic Unit 2. We were not furnished,
and it is beyond the scope of our assignment to obtain a survey depicting the location of all existing
easements on the subject property. However, based on the title documents provided, it appears that these
easements are fairly typical in the market area and no easements exist that adversely affect development
of the subject property.
UTILITIES AND PUBLIC SERVICES
The subject property appears to have access to all utilities. Telephone service is available to the area as
well as police and fire protection (from the City of Denton).
FLOOD ZONE
Our analysis of floodplain considerations was conducted through a review of Community-Panel Number
48121C0355G, dated April 18, 2011 as prepared by the Federal Emergency Management Agency (FEMA)
National Flood Insurance Program. A copy of the FEMA map for the subject property is located following
this paragraph. After careful inspection of the property and analysis of floodplain maps, it appears that
approximately 8 percent (~28.5 acres) of the subject property lies within the 100-year floodplain and
approximately 9 percent (~30.5 acres) of the subject property lies within the regulatory floodway.
Approximately 8.5 acres of Economic Unit 1 lies within the 100-year flood plain, while approximately 16.5
acres of Economic Unit 1 lies within the floodway. Additionally, approximately 20.0 acres of Economic Unit
2 lies within the 100-year flood plain, while approximately 14.0 acres of Economic Unit 2 lies within the
floodway.
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FLOODPLAIN MAP
Subject Property
SURROUNDING LAND USES
The land uses immediately surrounding the subject include vacant land, single-family residential
development, and industrial development to the north, vacant land and the Denton Enterprise Airport to the
east and south, and vacant land and single-family residential development to the west. An aerial photo
depicting the surrounding land is located following this paragraph.
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SURROUNDING LAND USES MAP
SFR Development Industrial Subject Property Vacant Land Denton Enterprise Airport
Aerial Photograph courtesy of Google Earth (Image Capture Date: December 2020)
CONCLUSION
The subject property is located along the south line of Jim Christal Road, just west of South Masch Branch
Road in Denton, Denton County, Texas and comprises a total of 340.4690 acres. The subject is considered
irregular in shape and has frontage along FM 4229, Underwood Road, and Tom Cole Road. The tract has
good access and good exposure and has all utilities available. Approximately 8 percent (~28.5 acres) of
the subject property lies within the 100-year floodplain and approximately 9 percent (~30.5 acres) of the
subject property lies within the regulatory floodway. The property is located in the western portion of Denton
County and is within an area with predominately single-family residential and industrial uses along primary
thoroughfares. Based upon the size, location, and nature of surrounding land uses, it is considered to best
lend itself to future industrial development. Based upon the physical characteristics of the site and
surrounding land uses, the desirability of the subject tract for future industrial development is considered to
be good. The subject is currently improved with the Denton Energy Center and site improvements. The
improvements are in average condition.
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ZONING AND OTHER LAND USE RESTRICTIONS
According to the City of Denton’s zoning map, approximately 95 percent the subject property is zoned (PF)
Public Facilities and approximately 5 percent of the northwest portion of the subject property is zoned (HI)
Heavy Industrial and is subject to the City of Denton’s zoning ordinance. According to Hayley Zagurski, a
representative for the City of Denton Planning office, the Public Facilities designation “in most instances
was applied to land owned either by the City or another governmental or quasi-governmental entity such
as Denton ISD. It is possible that property zoned PF could be owned by another entity or sold, though, and
in those instances the proposed rezoning would be weighed against the criteria for approval. One of the
most important criteria is consistency with the comprehensive plan, including the Future Land Use Map.”
Additionally, according to Hayley Zagurski, rezoning requests are analyzed based upon several factors,
including compatibility with zoning and use of surrounding properties and the City's comprehensive plan.
The subject has a future land use designation of Industrial Commerce which allows for several industrial
uses. The subject appears to be in compliance with the zoning requirements. The full zoning ordinance for
the subject property is located in the addendum of this report.
There are no known deed restrictions, either public or private, that would further 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 examination by a licensed and qualified title attorney to the extent assurances to this matter are desired.
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CITY OF DENTON ZONING MAP
Subject Property
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CITY OF DENTON FUTURE LAND USE MAP
Subject Property
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TAX ANALYSIS
The subject property is located in Denton County and is assessed by the Denton CAD. In each county, an
appraisal district is established for the purpose of listing and assessing all real estate within the county.
Theoretically, real property is 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 following table depicts historical property tax rates for the subject property.
As the above table indicates, the taxes for properties located within this area of Denton County have been
decreasing by 2.62 percent per year during the five-year period. Tax rates are anticipated to remain
relatively stable. The 2020 certified assessed value is listed following this paragraph:
Based upon the 2020 tax rate of $2.223039 per $100 of assessed value and the subject property’s certified
2020 assessed value of $9,325,058, the subject had an estimated total tax liability of $207,300 for 2020.
Based upon the market value conclusion of the subject within this report, the subject property appears to
be under assessed.
Compound
Rate of Change
Tax Authority 2020 2016-2020
Denton County $0.2484090 $0.2378120 $0.2255740 $0.2252780 $0.2249850 -2.45%
City of Denton 0.6833400 0.6378560 0.6204770 0.5904540 0.5904540 -3.59%
Denton ISD 1.5400000 1.5400000 1.5400000 1.4700000 1.4076000 -2.22%
Total Tax Rate $2.471749 $2.415668 $2.386051 $2.285732 $2.223039 -2.62%
Denton County Tax Rates
Improvement Total Market
Tax I.D. Number Land Value Value Value
36616 $2,504,900 $2,504,900
98162 $134,218 $134,218
36713 $2,060,158 $2,124,150 $4,184,308
36554 $334,170 $334,170
173408 $82,337 $82,337
173442 $129,163 $129,163
36607 $1,707,566 $64,404 $1,771,970
524209 $32,711 $32,711
619961 $46,179 $46,179
161790 $40,698 $64,404 $105,102
Total Assessment:$7,072,100 $2,252,958 $9,325,058
Tax Summary
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NEIGHBORHOOD INDUSTRIAL MARKET ANALYSIS
As we will discuss in the highest and best use section of this report, the most likely use of the subject
property is future industrial use. This is based upon the zoning of the subject, its location, and surrounding
land uses. Therefore, a Level A Market Analysis of the subject industrial market has been performed. A
Level A Market Analysis involves an inferred analysis of supply and demand for the whole neighborhood
utilizing surveyed data provided by third party sources and comparables. The boundaries of the market
utilized are defined as the subject neighborhood boundaries.
Chart provided by CoStar
Vacancy Rates
The vacancy rate in the subject neighborhood industrial market has fluctuated slightly over the past five
years. Overall, the rates have ranged from approximately 3.50 to 9.50 percent over the past 5 years.
Furthermore, the vacancy rate currently stands at 5.20 percent, compared to 5.30 percent in the 1st quarter
of 2015. The five-year average vacancy rate is 5.29 percent.
Chart provided by CoStar
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Absorption
The subject neighborhood industrial market has absorbed 142,836 square feet of industrial space over the
past 12 months. The net absorption has been mostly positive over the last five years with a few periods of
slightly negative absorption. The five-year average absorption rate is 417,555 square feet.
Chart provided by CoStar
Rental Rates
The average rental rate for the subject neighborhood industrial market currently stands at $7.30 per square
foot, and the five-year average rental rate is $6.47 per square foot. The average rental rate has been
steadily increasing each year over the past five years even with fluctuating vacancy rates.
Chart provided by CoStar
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Conclusion
As detailed on the previous pages, overall the subject neighborhood has been experiencing increasing
rental rates with fairly steady absorption rates and vacancy rates over the past five years. Current demand
is considered stable and the market is anticipated to experience steady growth over the next 3-5 years.
This conclusion is subject to the COVID-19 statement contained in this report.
SECTION THREE
Form ROW-A-5 Rev. 8/11 T
Each approach developed follows this page and is sequenced as shown below.
Land Value,
pg 3.4-3.28
Cost Approach,
pg 3.29-30
Sales Comparison Approach,
pg 3.31
Income Approach,
pg 3.32
PVS 3.0
PROPERTY VALUATION SUMMARY
Whole: Part to be Acquired: Remainder After:
HIGHEST AND BEST USE ANALYSIS:
The Highest and Best Use analysis should consider the reasonably probable and legal use of vacant land or improved property
considering legally permissible, physically possible, financially feasible, and maximally productive. See Page 3.1
Given the subject’s zoning, location, and current agricultural development taking place in the area, the highest and best use of the subject
tract as vacant is for future industrial development.
VALUATION APPROACHES
The subject property involves a 340.4690 acre tract of land improved with the Denton Energy Center, a natural gas power plant, and
site improvements. Based on market information, the subject will comprise two economic units, whereby Economic Unit 1 contains
172.7647 acres (7,525,630 square feet) located on the western portion of the subject and Economic Unit 2 contains 167.7043 acres
(7,305,199 square feet) located on the eastern portion of the subject. Furthermore, approximately 0.9085 acres (based upon
measurements taken via Google Earth) of Economic Unit 1 lies within a street easement, and approximately 0.6531 acres of Economic
Unit 2 lies within a street easement. The proposed right-of-way acquisition involves land improved with gravel paving. We determined
that the use of the main improvements will not be affected by the proposed acquisition as the acquisition is located a sufficient distance
from the main improvements and will not negatively affect internal circulation, drainage, ingress/egress, or utility of Remainder
Economic Unit 1 or Remainder Economic Unit 2. As permitted by USPAP Standard Rule 1-2 (e)(v), only the land and affected site
improvements (gravel paving) are valued within this appraisal. Therefore, we have provided a value of land only via the Sales
Comparison Approach and we have provided a value of the site improvements (gravel paving) located within the part to be acquired via
the Cost Approach. The land value via the Sales Comparison Approach is added to the contributory value of the site improvements
within the acquisition via the Cost Approach to arrive at a value opinion of the whole property.
172.7648 AC
167.7042 AC
$6,064,386
$5,718,040
0.5952 AC @ $3,900
$159,404
$2,547
Total Land Value 340.4690 AC $11,782,426
0.6531 AC
Total Land Value: EU 1
0.1624 AC @ $1,950 /AC $317
EU 1 - Land Value in St
Esmt (Outside FP & FW)
EU 1 - Land Value in St
Esmt (In 100 Yr FP)
EU 1 - Land Value in St
Esmt (In FW)
EU 2 - Land Value in St
Esmt (Outside FP & FW)@ $3,900 /AC
EU 1 - Land Value in Fee
(In FW)16.3491 AC
@8.3376 AC
$9,750
133.0511 AC
EU 1 - Land Value in Fee
(In 100 Yr FP)
EU 2 - Land Value in Fee
(Outside FP & FW)
0.1509 AC @ $975
@
@
$39,000
/AC
/AC$19,500
$39,000
/AC
/AC
$162,583
$5,188,993
/AC $2,321
$147
Reconciled Final Value (Whole Property)…………………………….....………………………………………………$11,801,830
/AC $136,500
$390,000
@ $9,750
@ $19,500 /AC
EU 2 - Land Value in Fee
(In FW)14.0000 AC
EU 2 - Land Value in Fee
(In 100 Yr FP)20.0000 AC
Total Land Value: EU 2
Total Contributory Value of Improvements
147.1696 AC $5,739,614@
$19,404
/AC
N/A
EU 1 - Land Value in Fee
(Outside FP & FW)
Cost Approach…………………………………………….....………………..$11,801,830
Sales Comparison Approach…………………………………….....…………N/A
Gravel Paving (49,755 SF)$19,404
Contributory Value of Improvements (Itemized)
Income Approach………………………………………………….....…….…
Reconciliation of Approaches to Value:Based upon our analysis of the market data available,the market value of the whole subject property is
$11,801,830.
*The calculation of the value per unit estimate of the flood plain and/or floodway and street easement portion of the subject part to be acquired can be found on pages 3.17-
3.18 & 3.27-3.28 of this report.
Form ROW-A-5 Rev. 8/11 T
Each approach developed follows this page and is sequenced as shown below.
Land Value,
pg 3.4-3.28
Cost Approach,
pg 3.29-30
Sales Comparison Approach,
pg 3.31
Income Approach,
pg 3.32
PVS 3.1
172.7648 AC
167.7042 AC
$6,064,386
$5,718,040
0.5952 AC @ $3,900
$159,404
$2,547
Total Land Value 340.4690 AC $11,782,426
0.6531 AC
Total Land Value: EU 1
0.1624 AC @ $1,950 /AC $317
EU 1 - Land Value in St Esmt (Outside FP & FW)EU 1 - Land Value in St
Esmt (In 100 Yr FP)
EU 1 - Land Value in St
Esmt (In FW)
EU 2 - Land Value in St
Esmt (Outside FP & FW)@ $3,900 /AC
EU 1 - Land Value in Fee
(In FW)16.3491 AC
@8.3376 AC
$9,750
133.0511 AC
EU 1 - Land Value in Fee (In 100 Yr FP)
EU 2 - Land Value in Fee
(Outside FP & FW)
0.1509 AC @ $975
@
@
$39,000
/AC
/AC$19,500$39,000
/AC
/AC
$162,583
$5,188,993
/AC $2,321
$147
Reconciled Final Value (Whole Property)…………………………….....………………………………………………$11,801,830
/AC $136,500
$390,000
@ $9,750
@ $19,500 /AC
EU 2 - Land Value in Fee
(In FW)14.0000 AC
EU 2 - Land Value in Fee
(In 100 Yr FP)20.0000 AC
Total Land Value: EU 2
Total Contributory Value of Improvements147.1696 AC $5,739,614@$19,404/ACN/AEU 1 - Land Value in Fee (Outside FP & FW)Cost Approach…………………………………………….....………………..$11,801,830Sales Comparison Approach…………………………………….....…………N/AGravel Paving (49,755 SF)$19,404Contributory Value of Improvements (Itemized)Income Approach………………………………………………….....…….…Reconciliation of Approaches to Value:Based upon our analysis of the market data available,the market value of the whole subject property is$11,801,830.
*The calculation of the value per unit estimate of the flood plain and/or floodway and street easement portion of the subject part to be acquired can be found on pages 3.17-
3.18 & 3.27-3.28 of this report.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.2
HIGHEST AND BEST USE ANALYSIS – WHOLE PROPERTY
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
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.
8 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 109.
9 Ibid. page 152
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.3
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, 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 subject property is zoned Planned Facilities (PF) and Heavy Industrial (HI) and is subject to the City of
Denton’s zoning ordinance. Therefore, a wide variety of uses are allowed, such as industrial, residential,
and agricultural. Thus, future industrial development is considered to be indicative of the most likely and
legally permissible uses of the site.
Addressing the second question, What uses of the site are physically possible? requires a review of the
physical characteristics of the site. The subject consists of 340.4690 acres. However, based upon our
research of the market data available and discussions with market participants, a typical economic unit for
the most likely use of the subject property is between 100 to 200 acres. Thus, the subject will comprise two
economic units, whereby Economic Unit 1 contains 172.7647 acres (7,525,630 square feet) located on the
western portion of the subject and Economic Unit 2 contains 167.7043 acres (7,305,199 square feet)
located on the eastern portion of the subject. Furthermore, approximately 0.9085 acres (based upon
measurements taken via Google Earth) of Economic Unit 1 lies within a street easement, and approximately
0.6531 acres of Economic Unit 2 lies within a street easement. The subject is physically located along the
south line of Jim Christal Road, just west of South Masch Branch Road in Denton County, Texas. 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 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 subject tract is considered to have good
exposure and access and be of adequate size for future industrial development. The immediate surrounding
area is predominantly industrial and residential development.
The topography of the subject tract is considered to be level. Drainage appears to be adequate. This
topography is conducive for most types of industrial development. Additionally, soil and subsoil conditions
are not considered to significantly hinder the development potential of the site. The site has access to all
utilities, and the site appears to be encumbered by a street easement along the north property line, which
is considered to be detrimental to property development. Approximately 8 percent (~28.5 acres) of the
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.4
subject property lies within the 100-year floodplain and approximately 9 percent (~30.5 acres) of the subject
property lies within the regulatory floodway. Based upon an analysis of land uses within the subject
neighborhood, and given the access the site will have to Jim Christal Road, as well as the surrounding land
uses in the immediate vicinity, it is our reasoned opinion that the subject can be used for future industrial
development, which appears to be the most likely potential use of the site.
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, there is currently a significant amount of industrial,
agricultural, and residential development within the immediate vicinity of the subject. The current land sales
within the subject neighborhood have been acquired for either speculative investments or residential
development. Given the subject’s size, zoning, location, and current industrial development taking place in
the area, the highest and best use of the subject tract is for future industrial development. The most likely
purchaser would be an investor. This conclusion pertains to both Economic Unit 1 and Economic Unit 2.
Form ROW-A-5 Rev. 8/11 T
SCA 3.5
SALES COMPARISON APPROACH
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID – ECONOMIC UNIT 1 Representative Comparable Sales
See Land Data Presentation and Land Sales Analysis on the following pages
Grantor
Grantee
Date of Sale
Unit Price ($/Acre)
Relative Location
Rights Conveyed
Financing
AC AC AC AC AC
SF SF SF SF SF
Conditions of Sale
Market Conditions
Adjusted Price ($/Acre)
Physical Characteristics
Location
AC
SF
Corner
Utilities
Topography
Zoning
Shape
Flood Plain
Net Adjustment
Unit Value ($/Acre)
0%
+14%
$36,695 $61,324 $23,710 $45,484
Arm's Length
Public Facilities (PF)
& Heavy Industrial -5%-5%-5%-10%
0%-10%0%0%
0%
No
-10%
Arm's Length
Size
Land Size 3,395,0661,630,1893,947,1027,525,630
5%/Year 0%+2%+12%
Good 0%-10%0%
172.7647
7,525,630 -5%-10%-5%
Arm's Length Arm's Length
172.7647 90.6130 37.4240
Indicated Unit Value $40,731 $52,125 $26,081 $36,387
$39,000
+11%-15%+10%-20%
All Available 0%0%0%0%
0%0%0%0%Level
Rectangular
5% FP 10% FW
0%0%0%0%
+21%+20%+20%
77.9400 50.9800
2,220,689
Fee Simple Fee Simple Fee Simple Fee Simple
Cash to the Seller Cash to the Seller Cash to the Seller Cash to the Seller
$36,695 $60,122 $21,170 $39,898
0.8 Miles SE 1.7 Miles SE 0.8 Miles E 3.0 Miles NE
Virginia Fryman
Chester Properties
Limited, a Texas
limited Partnership
Brenda Bradford
Head, Beverly
Bradford Fletcher,
John M. Bradford,
and Melissa Bradford
Williams
Foster Real Estate,
Ltd.
Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4
N/A
US Trinity Holdings,
LLC, a Texas limited
liability company
Mar-Properties,
LTD., a Texas limited
partnership
Deeper Life Bible
Church, Inc.
Under Contract July 1, 2020 May 22, 2018 February 9, 2018
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.6
LAND SALES PRESENTATION
A search was made for sales of tracts of land most comparable to the subject area. After sales were
selected for more analysis, the public records were researched and verification of the details of the sales
were 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. Details of the land comparables
used are found on the following pages. A map depicting the location of the Sales in comparison to the
subject is located below.
Date Sales
Map #of Sale Price/Acre
1 Under Contract $36,695
2 7/1/20 $60,122
3 5/22/18 $21,170
4 2/9/18 $39,898
-340.4690 (Whole)Subject
Map Comparable Summary
Size (Acres)
90.6130
37.4240
77.9400
50.9800
Form ROW-A-5S
(Rev. 11/11)
Page 1 of 4
Page 3.7
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 13 - (P00054469) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #1
March 23, 2021
Grantor/Lessor:Grantee/Lessee:
Date:Key Map:N/A
Address/Location:Zip Code:76207
Legal Description:
Confirmed Price:Verified with:
Rental Data:
Land Size:90.6130 AC, or 3,947,102 $36,695 /Acre
Type Street:Utilities:
Year Built:
Improvement(s) Size:
Condition and Functional Design:
Current Use:
Date of Inspection:Zoning:Flood Plain:
Additional Information:
Appraiser:
This property is located along the south line of Jim Christal Road,just east of South Masch Branch Road in Denton,Denton County,Texas.
According to Randy Smith,the listing broker,this property is reportedly under contract for "within 5 percent"of the list price of $3,500,000.
Therefore,a price of $3,325,000 has been utilized,resulting in a price per acre of $36,695.Additionally,the listing broker reported that the
buyer intends to construct a large industrial facility on the site.
Randy Smith, Listing Broker
Unit Price as Vacant:
Secondary Thoroughfare All Available
Improvement(s) Description:N/A N/A
N/A
Vacant Land
N/A N/A
23% FW
8% FP
(HI) Heavy IndustrialDecember 11, 2020
Unit Price as Improved:
Highest and Best Use:Industrial
N/A
S Line of Jim Christal Rd, E of S Masch Branch Rd, Denton, Denton County, Texas
90.613 acres in the J. Scott Survey, Abs. No. 1222, Denton, Denton County, Texas
Virginia Fryman
Under Contract N/ARecording Information:
Cash to the Seller
N/A
$3,325,000
Terms and Conditions of Sale:
SF
Michael A. Keane, MAI
Form ROW-A-5S
(Rev. 11/11)
Page 2 of 4
Page 3.8
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 13 - (P00054469) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #2
March 23, 2021
Grantor/Lessor:Grantee/Lessee:
Date:Key Map:N/A
Address/Location:Zip Code:76207
Legal Description:
Confirmed Price:Verified with:
Rental Data:
Land Size:37.4240 AC, or 1,630,189 $60,122 /Acre
Type Street:Utilities:
Year Built:
Improvement(s) Size:
Condition and Functional Design:
Current Use:
Date of Inspection:Zoning:Flood Plain:
Additional Information:
Appraiser:
SEC of Airport Rd & Westcourt Rd, Denton, Denton County, Texas
W. Neill Survey, Abst. Number 970, Denton County, Texas and being a part of a called 63.436 acre tract of land
$2,250,000 Don Frazier, Listing Broker
Chester Properties Limited, a Texas limited Partnership US Trinity Holdings, LLC, a
Texas limited liability company
July 1, 2020 Recording Information:2020-96143
Secondary Thoroughfare All Available
Improvement(s) Description:N/A N/A
Unit Price as Improved:
Terms and Conditions of Sale:
SF Unit Price as Vacant:
Cash to the Seller
N/A
N/A N/A
Approximately 10%of this tract is located in the 100 year flood plain,~5%is located in the 500 year flood plain,and ~20%is located in the
floodway. This tract was listed for sale since May 2018 with an asking price of $2.00 PSF.
Michael A. Keane, MAI
N/A
Vacant Land Highest and Best Use:Industrial
December 16, 2020 (HI) Heavy Industrial ~10% 100,
~5% 500,
~20% FW
Form ROW-A-5S
(Rev. 11/11)
Page 3 of 4
Page 3.9
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 13 - (P00054469) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #3
March 23, 2021
Grantor/Lessor:Grantee/Lessee:
Date:Key Map:N/A
Address/Location:Zip Code:76207
Legal Description:
Confirmed Price:Verified with:
Rental Data:
Land Size:77.9400 AC, or 3,395,066 $21,170 /Acre
Type Street:Utilities:
Year Built:
Improvement(s) Size:
Condition and Functional Design:
Current Use:
Date of Inspection:Zoning:Flood Plain:
Additional Information:
Appraiser:
$1,650,000 Graham Stiles, Listing Broker
Terms and Conditions of Sale:
SF Unit Price as Vacant:
Brenda Bradford Head, Beverly Bradford Fletcher, John M.
Bradford, and Melissa Bradford Williams
Mar-Properties, LTD., a Texas
limited partnership
N Line of Jim Christal Rd, E of S Masch Branch Rd, Denton, Denton County, Texas
77.94 acres in the William Bryan Survey, Abs. No. 148, Denton, Denton County, Texas
May 22, 2018 Recording Information:2018-59934
Cash to the Seller
N/A
23% FW
5% FP
N/A
Vacant Land Highest and Best Use:Industrial
December 11, 2020 (LI) Light Industrial
Secondary Thoroughfare All Available
Improvement(s) Description:N/A N/A
Unit Price as Improved:N/A N/A
This property is located along the north line of Jim Christal Road,just east of South Masch Branch Road in Denton,Denton County,Texas.
This property reportedly sold on May 22, 2018, for a purchase price of $1,650,000, or approximately $21,170 per acre.
Michael A. Keane, MAI
Form ROW-A-5S
(Rev. 11/11)
Page 4 of 4
Page 3.10
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 13 - (P00054469) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #4
March 23, 2021
Grantor/Lessor:Grantee/Lessee:
Date:Key Map:N/A
Address/Location:Zip Code:76207
Legal Description:
Confirmed Price:Verified with:
Rental Data:
Land Size:50.9800 AC, or 2,220,689 $39,898 /Acre
Type Street:Utilities:
Year Built:
Improvement(s) Size:
Condition and Functional Design:
Current Use:
Date of Inspection:Zoning:Flood Plain:
Additional Information:
Appraiser:
Foster Real Estate, Ltd.Deeper Life Bible Church, Inc.
N Line of FM 1173, W of I-35, Denton, Denton County, Texas
50.98 acres in the Buffalo Bayou, Brazos, and Colorado Railroad Co. Survey, Abst. No. 141, Denton County, Texas
February 9, 2018 Recording Information:2018-15756
Secondary Thoroughfare All Available
Improvement(s) Description:3,507 SF Residence and Barns 1969
Unit Price as Improved:
$2,034,000 Daphne Zollinger, Listing Broker
Terms and Conditions of Sale:
SF Unit Price as Vacant:
Cash to the Seller
N/A
N/A N/A
The site was improved with a 3,507 square foot residence and several barns/outbuildings totaling 3,306 square feet at the time of sale.The
purchase price was reported at $2,000,000;however,the improvements were reported to contribute no value to the site and a demolition cost of
$34,000 has been added to the purchase price for expenditures after sale based upon a demolition cost of $5.00/SF (6,813 SF of improvements
x $5.00/SF = $34,065 or $34,000, rounded).Michael A. Keane, MAI
N/A
Residential Highest and Best Use:Industrial
December 11, 2020 (RCC-N) Reg Center Comm Neighborhood None
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.11
LAND SALES ANALYSIS – ECONOMIC UNIT 1
Elements of comparison are the characteristics of properties and transactions that cause the prices paid
for real estate to vary. The array of data suggests possible adjustments for various characteristics of each
transaction in comparison with the subject site. The Sales have been compared to the subject for dissimilar
characteristics and adjustments are made on a price per unit basis. Following is a summary table of the
comparable land sales.
Real 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 made for this
factor.
Financing Terms
All of the sales were consummated with the sellers effectively receiving cash in exchange for their
consideration in the property and no adjustments were made for advantageous seller financing.
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 were reported to be arm's-length sales
and did not involve any unusual conditions of sale. Thus, no adjustments were made for this category.
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
Sales
Sale Location Date Size Flood Sales Price/
No.(Address)of Sale (Acres)Utilities Topography Zoning Shape Plain Price Acre
1 90.6130 All Available Level (HI) Heavy Industrial Irregular 23% FW 8% FP $3,325,000 $36,695
2 7/1/20 37.4240 All Available Level (HI) Heavy Industrial Rectangular $2,250,000 $60,122
3 5/22/18 77.9400 All Available Level (LI) Light Industrial Near Rectangular 23% FW 5% FP $1,650,000 $21,170
4 2/9/18 50.9800 All Available Level Irregular None $2,034,000 $39,898
Subject:-172.7647 All Available Level Rectangular None --
Comparable Land Sales
N Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
Summary of
S Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
N Line of FM 1173, W of I-35, Denton,
Denton County, Texas
S Line of Jim Christal Rd, W of S Masch
Branch Rd, Denton, Denton County, Texas
Under
Contract
(RCC-N) Reg Center
Comm Neighborhood
~10% 100, ~5%
500, ~20% FW
Public Facilities (PF) &
Heavy Industrial (HI)
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.12
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 adjustments for property rights conveyed, financing, and conditions
of sale have been made. 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/Unit for each comparable which has been adjusted for the other
transactional adjustments. The % Physical Adjustment column indicates the total adjustments made for all
physical characteristics (location, size, corner, utilities, topography zoning, floodplain, etc.) as shown on
Page SCA 3.4. The Adjusted Price/Unit is calculated by applying the % Physical Adjustment for each sale
to its Price/Unit. By analyzing the comparable sales adjusted prices per unit 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.
In closely analyzing the Comparables, an upward trend is not apparent. However, after talking with market
participants, they indicate that market conditions are increasing in the area. Therefore, the Comparables
will be adjusted upwards by 5 percent per year as follows: Comparable 1 (0 percent upwards), Comparable
2 (2 percent upwards), Comparable 3 (12 percent upwards), and Comparable 4 (14 percent upwards). This
is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the
market conditions adjustments are considered reasonable.
Location
Location is considered to be one of the most important characteristics of real estate; therefore, the location
of the Comparables is the first of the physical characteristics to be considered. The following adjustments
have been made based upon our professional opinion and experience. The subject property is located
along the south line of Jim Christal Road, just west of South Masch Branch Road in Denton County, Texas.
Comparables 1 and 3 have fairly similar locations for industrial development when compared to the subject
and no adjustments will be made. Comparable 2 is located in a superior industrial development within close
proximity to the Denton Enterprise Airport. Therefore, Comparable 2 will be adjusted downward 10 percent
Comparable Date Unadjusted Physical %Adjusted
Number of Sale Price/Acre*Adjustment Price/Acre
Comparable 1 Under Contract $36,695 11%$40,731
Comparable 2 July 1, 2020 $60,122 -15%$51,104
Comparable 3 May 22, 2018 $21,170 10%$23,287
Comparable 4 February 9, 2018 $39,898 -20%$31,918
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.13
for location. Comparable 4 is located in an inferior area for industrial development north of US 380.
However, this Comparable is located in close proximity to I-35 and has superior access and exposure than
the subject. Therefore, Comparable 4 will not be adjusted.
Size
The subject Economic Unit 1 totals 172.7647 acres. The Comparables range in size from 37.4240 to
90.6130 acres. Typically, smaller tracts sell for more per acre than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Therefore,
Comparable 1 (90.6130 acres) and Comparable 3 (77.9400 acres), which are slightly smaller in size
compared to the subject property, will be adjusted downward 5 percent. Comparable 2 (37.4240 acres) and
Comparable 4 (50.9800 acres) are smaller in size than the subject property and will be adjusted downward
10 percent.
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.
Additionally, the presence of a corner influences larger residential tracts as well given the increased
exposure and access a corner provides. The subject property is not located on a corner. Comparables 1,
3, and 4 are not located on a corner and will not be adjusted. Comparable 2 benefits from the presence of
a corner and will be adjusted downward 10 percent.
Utilities
The subject property has all utilities available. All of the Comparables also reportedly had all utilities
available and no adjustments will be made.
Topography
This adjustment takes into consideration the topography (terrain) of the subject property and how
desirable/developable the site is. The topography of the subject tract is considered to be level. The
topography of the site should not limit the use of the property provided proper site work is undertaken. All
of the Comparables have fairly similar topographical considerations, and no adjustments will be made.
Zoning
The zoning a property possesses dictates the legally permissible use(s) to which it can be developed.
Consequently, the value of a property can be significantly influenced by its zoning classification. The subject
property is zoned Planned Facilities (PF) and Heavy Industrial (HI) by the City of Denton and is subject to
the City of Denton’s zoning ordinance. According to Hayley Zagurski, a representative for the City of Denton
Planning office, the Public Facilities designation “in most instances was applied to land owned either by the
City or another governmental or quasi-governmental entity such as Denton ISD. It is possible that property
zoned PF could be owned by another entity or sold, though, and in those instances the proposed rezoning
would be weighed against the criteria for approval. One of the most important criteria is consistency with
the comprehensive plan, including the Future Land Use Map.” Additionally, according to Hayley Zagurski,
rezoning requests are analyzed based upon several factors, including compatibility with zoning and use of
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.14
surrounding properties and the City's comprehensive plan. The subject has a future land use designation
of Industrial Commerce which, allows for several industrial uses. Additionally, a zoning change with a
municipality would involve filing fees, public hearings, and other city planning processes that would further
increase the potential development costs for the subject property. Therefore, Comparables 1, 2, and 3 are
considered slightly superior to the subject property due to these properties already having an industrial
zoning in place at the time of purchase, and they would not have these potential administrative costs
associated with a zoning change. Therefore, Comparables 1, 2, and 3 will be adjusted downward 5 percent
for zoning. Comparable 4 has a superior zoning to Comparables 1, 2, and 3, and will be adjusted downward
10 percent.
Shape
The subject is considered irregular in shape and considered fairly typical in the market. All of the
Comparables are all fairly typical in shape and configuration; therefore, they will not be adjusted.
Floodplain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year
floodplain. Approximately 8 percent (~8.5 acres) of the subject property lies within the 100-year floodplain
and approximately 11 percent (~16.5 acres) of the subject property lies within the regulatory floodway.
However, this portion of the analysis is based on the premise that no part of the subject property lies within
the floodplain. Additionally, the portion of the subject property that lies within the 100-year floodplain and
regulatory floodway will be addressed within the reconciliation. All of the Comparables are located within
the 100-year floodplain. To extract the appropriate adjustment for floodplain, paired sales analysis for
several floodplain sales identified in the North Texas region have been displayed in the following table.
These floodplain sales are correlated with a very similar non-floodplain 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%
Indicated Adjustment:-65.9%
Flood Plain Paired Comparison #1
% 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%
Indicated Adjustment:-41.2%
Flood Plain Paired Comparison #2
1This non-flood sale has been adjusted downward 10 percent for size.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.15
These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of
approximately -56 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. Furthermore
concluding toward the upper end of the range, a -75 percent adjustment will be utilized for the difference in
the value of land located within the floodway, compared to land that is not located within a flood plain. Given
that approximately 8 percent of Comparable 1 is encumbered by the 100-year flood plain and approximately
23 percent is encumbered by the floodway, an upward adjustment of 21 percent (8% of 50% = 4.0%) +
(23% of 75% = 17.25%) will be applied. Given that approximately 10 percent of Comparable 2 is
encumbered by the 100-year flood plain and 20 percent is encumbered by the floodway, an upward
% 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%
Indicated Adjustment:-23.4%
Flood Plain Paired Comparison #3
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.
% 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%
Indicated Adjustment:-91.6%
Flood Plain Paired Comparison #4
% 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%
Indicated Adjustment:-47.8%
Flood Plain Paired Comparison #5
% 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%
Indicated Adjustment:-63.0%
Flood Plain Paired Comparison #6
% 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%
Indicated Adjustment:-56.7%
Flood Plain Paired Comparison #7
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.16
adjustment of 20 percent (10% of 50% = 5.0%) + (20% of 75% = 15.0%) will be applied to Comparable 2.
Given that approximately 5 percent of Comparable 3 is encumbered by the 100-year flood plain and 23
percent is encumbered by the floodway, an upward adjustment of 20 percent (5% of 50% = 2.5%) + (23%
of 75% = 17.25%) will be applied to Comparable 3. None of Comparable 4 is located in the floodplain or
floodway, and no adjustments will be applied.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.17
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $39,000 per acre is considered to be
reasonable. Furthermore, approximately 8 percent (~8.5 acres) of the subject property lies within the 100-
year floodplain and approximately 11 percent (~16.5 acres) of the subject property lies within the regulatory
floodway. As previously mentioned, a -50 percent adjustment will be utilized for the difference in the value
of land located within the 100-year floodplain, compared to land that is not located within a floodplain. This
results in a market value opinion of $19,500 per acre ($39,000 per acre x 50% = $19,500 per acre) for the
portions of the subject property located within the 100-year floodplain. Furthermore, a -75 percent
adjustment will be utilized for the difference in the value of land located within the regulatory floodway,
compared to land that is not located within the regulatory floodway. This results in a market value opinion
of $9,750 per acre ($39,000 per acre x 25% = $9,750 per acre) for the portions of the subject property
located within the regulatory floodway.
Additionally, as previously discussed, approximately 0.9085 acres (based upon measurements taken via
Google Earth) of Economic Unit 1 lies within a street easement. This street easement will be valued based
upon apparent rights remaining to the landowner. In order to estimate the value of the remaining rights of
this portion of the subject, the following Easement Valuation Matrix will be used as a guide for allocating
value of the fee simple interest between the landowner and Denton County for this street easement. This
exhibit was provided by an article entitled “Easement Valuation” by Donald Sherwood, SR/WA, published
in the November/December 2014 edition of Right of Way Magazine.
$/Acre All Data
Range $26,081 -$52,125 $36,387 -$40,731 -
Mean (Average)
Standard Deviation $3,072
All of the Comparables had a mean of $38,831 per acre,while the mean of data without high and low
extremes is $38,559 per acre,and the data with the least absolute adjustments (<=40%)had a mean of
$38,559 per acre.
$40,731
$38,831 $38,559 $38,559
$10,784 $3,072
Data Without Data with Absolute
High and Low Extremes Adjustments <40%
$36,387
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.18
The portion of the subject property Economic Unit 1 that is located within the street easement is
approximately 0.9085 acres. The existing street easement grants virtually no use rights to the property
owner outside of being able to include this area in the setback and land area requirements. Therefore, a
discount at the upper end of the range listed in the matrix would be necessary as there are virtually no other
conceivable uses remaining for the landowner. This easement is estimated to encumber 90 percent of the
use rights/value of this portion of the tract. As such, the remaining 10 percent of the use rights/fee simple
value of this portion of the tract remains with the current landowner. Therefore, an adjustment of 90 percent
will be utilized for the difference in the value of land located within the street easement, compared to land
that is not located within the street easement. This results in a market value opinion of $3,900 per acre
($39,000 per acre x (1-90%) = $3,900 per acre) for the portion of the subject property located within the
street easement. Additionally, portions of the subject property are located within the floodplain and are
encumbered by this street easement.
Thus, the total market value opinion of the whole Economic Unit 1, as of the effective date of the appraisal,
is calculated as follows:
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.19
*It should be noted that these totals may not calculate exactly due to rounding within the program.
/AC
EU 1 - Land Value in Fee
(Outside FP & FW)147.1696 AC $5,739,614@$39,000
/AC $2,321
$147
EU 1 - Land Value in St
Esmt (Outside FP & FW)
EU 1 - Land Value in St
Esmt (In 100 Yr FP)
EU 1 - Land Value in St
Esmt (In FW)/AC
$162,5838.3376 AC
$9,750
EU 1 - Land Value in Fee
(In 100 Yr FP)
0.1509 AC @ $975
Total Land Value: EU 1
0.1624 AC @ $1,950 /AC
@ /AC
EU 1 - Land Value in Fee
(In FW)16.3491 AC
172.7647 AC $6,064,386
0.5952 AC @ $3,900
$159,404
/AC$19,500
$317
@
Form ROW-A-5 Rev. 8/11 T
SCA 3.20
SALES COMPARISON APPROACH
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID – ECONOMIC UNIT 2 Representative Comparable Sales
See Land Data Presentation and Land Sales Analysis on the following pages
Grantor
Grantee
Date of Sale
Unit Price ($/Acre)
Relative Location
Rights Conveyed
Financing
AC AC AC AC AC
SF SF SF SF SF
Conditions of Sale
Market Conditions
Adjusted Price ($/Acre)
Physical Characteristics
Location
AC
SF
Corner
Utilities
Topography
Zoning
Shape
Flood Plain
Net Adjustment
Unit Value ($/Acre)$39,000
+11%-15%+10%-20%
Indicated Unit Value $40,731 $52,125 $26,081 $36,387
12% FP 8% FW +21%+20%+20%0%
Public Facilities (PF)
& Heavy Industrial -5%-5%-5%-10%
Rectangular 0%0%0%0%
All Available 0%0%0%0%
Level 0%0%0%0%
-10%7,305,199
No 0%-10%0%0%
Good 0%-10%0%0%
Size 167.7043 -5%-10%-5%
5%/Year 0%+2%+12%+14%
$36,695 $61,324 $23,710 $45,484
2,220,689
Arm's Length Arm's Length Arm's Length Arm's Length
Land Size 167.7043 90.6130 37.4240 77.9400 50.9800
7,305,199 3,947,102 1,630,189 3,395,066
Fee Simple Fee Simple Fee Simple Fee Simple
Cash to the Seller Cash to the Seller Cash to the Seller Cash to the Seller
July 1, 2020 May 22, 2018 February 9, 2018
$36,695 $60,122 $21,170 $39,898
0.8 Miles SE 1.7 Miles SE 0.8 Miles E 3.0 Miles NE
Comp No. 4
Virginia Fryman
Chester Properties
Limited, a Texas
limited Partnership
Brenda Bradford
Head, Beverly
Bradford Fletcher,
John M. Bradford,
and Melissa Bradford
Williams
Foster Real Estate,
Ltd.
Subject Comp No. 1 Comp No. 2 Comp No. 3
N/A
US Trinity Holdings,
LLC, a Texas limited
liability company
Mar-Properties,
LTD., a Texas limited
partnership
Deeper Life Bible
Church, Inc.
Under Contract
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Page 3.21
LAND SALES ANALYSIS – ECONOMIC UNIT 2
Elements of comparison are the characteristics of properties and transactions that cause the prices paid
for real estate to vary. The array of data suggests possible adjustments for various characteristics of each
transaction in comparison with the subject site. The Sales have been compared to the subject for dissimilar
characteristics and adjustments are made on a price per unit basis. Following is a summary table of the
comparable land sales.
Real 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 made for this
factor.
Financing Terms
All of the sales were consummated with the sellers effectively receiving cash in exchange for their
consideration in the property and no adjustments were made for advantageous seller financing.
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 were reported to be arm's-length sales
and did not involve any unusual conditions of sale. Thus, no adjustments were made for this category.
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
Sales
Sale Location Date Size Flood Sales Price/
No.(Address)of Sale (Acres)Utilities Topography Zoning Shape Plain Price Acre
1 90.6130 All Available Level (HI) Heavy Industrial Irregular 23% FW 8% FP $3,325,000 $36,695
2 7/1/20 37.4240 All Available Level (HI) Heavy Industrial Rectangular $2,250,000 $60,122
3 5/22/18 77.9400 All Available Level (LI) Light Industrial Near Rectangular 23% FW 5% FP $1,650,000 $21,170
4 2/9/18 50.9800 All Available Level Irregular None $2,034,000 $39,898
Subject:-167.7043 All Available Level Rectangular None --
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
N Line of FM 1173, W of I-35, Denton,
Denton County, Texas
S Line of Jim Christal Rd, W of S Masch
Branch Rd, Denton, Denton County, Texas
N Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
(RCC-N) Reg Center
Comm Neighborhood
Public Facilities (PF) &
Heavy Industrial (HI)
~10% 100, ~5%
500, ~20% FW
Under
Contract
Summary of
Comparable Land Sales
S Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
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Page 3.22
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 adjustments for property rights conveyed, financing, and conditions
of sale have been made. 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/Unit for each comparable which has been adjusted for the other
transactional adjustments. The % Physical Adjustment column indicates the total adjustments made for all
physical characteristics (location, size, corner, utilities, topography zoning, floodplain, etc.) as shown on
Page SCA 3.4. The Adjusted Price/Unit is calculated by applying the % Physical Adjustment for each sale
to its Price/Unit. By analyzing the comparable sales adjusted prices per unit 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.
In closely analyzing the Comparables, an upward trend is not apparent. However, after talking with market
participants, they indicate that market conditions are increasing in the area. Therefore, the Comparables
will be adjusted upwards by 5 percent per year as follows: Comparable 1 (0 percent upwards), Comparable
2 (2 percent upwards), Comparable 3 (12 percent upwards), and Comparable 4 (14 percent upwards). This
is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the
market conditions adjustments are considered reasonable.
Location
Location is considered to be one of the most important characteristics of real estate; therefore, the location
of the Comparables is the first of the physical characteristics to be considered. The following adjustments
have been made based upon our professional opinion and experience. The subject property is located
along the south line of Jim Christal Road, just west of South Masch Branch Road in Denton County, Texas.
Comparables 1 and 3 have fairly similar locations for industrial development when compared to the subject
and no adjustments will be made. Comparable 2 is located in a superior industrial development within close
proximity to the Denton Enterprise Airport. Therefore, Comparable 2 will be adjusted downward 10 percent
Comparable Date Unadjusted Physical %Adjusted
Number of Sale Price/Acre*Adjustment Price/Acre
Comparable 1 Under Contract $36,695 11%$40,731
Comparable 2 July 1, 2020 $60,122 -15%$51,104
Comparable 3 May 22, 2018 $21,170 10%$23,287
Comparable 4 February 9, 2018 $39,898 -20%$31,918
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
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Page 3.23
for location. Comparable 4 is located in an inferior area for industrial development north of US 380.
However, this Comparable is located in close proximity to I-35 and has superior access and exposure than
the subject. Therefore, Comparable 4 will not be adjusted.
Size
The subject Economic Unit 1 totals 167.7043 acres. The Comparables range in size from 37.4240 to
90.6130 acres. Typically, smaller tracts sell for more per acre than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Therefore,
Comparable 1 (90.6130 acres) and Comparable 3 (77.9400 acres), which are slightly smaller in size
compared to the subject property, will be adjusted downward 5 percent. Comparable 2 (37.4240 acres) and
Comparable 4 (50.9800 acres) are smaller in size than the subject property and will be adjusted downward
10 percent.
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.
Additionally, the presence of a corner influences larger residential tracts as well given the increased
exposure and access a corner provides. The subject property is not located on a corner. Comparables 1,
3, and 4 are not located on a corner and will not be adjusted. Comparable 2 benefits from the presence of
a corner and will be adjusted downward 10 percent.
Utilities
The subject property has all utilities available. All of the Comparables also reportedly had all utilities
available and no adjustments will be made.
Topography
This adjustment takes into consideration the topography (terrain) of the subject property and how
desirable/developable the site is. The topography of the subject tract is considered to be level. The
topography of the site should not limit the use of the property provided proper site work is undertaken. All
of the Comparables have fairly similar topographical considerations, and no adjustments will be made.
Zoning
The zoning a property possesses dictates the legally permissible use(s) to which it can be developed.
Consequently, the value of a property can be significantly influenced by its zoning classification. The subject
property is zoned Planned Facilities (PF) and Heavy Industrial (HI) by the City of Denton and is subject to
the City of Denton’s zoning ordinance. According to Hayley Zagurski, a representative for the City of Denton
Planning office, the Public Facilities designation “in most instances was applied to land owned either by the
City or another governmental or quasi-governmental entity such as Denton ISD. It is possible that property
zoned PF could be owned by another entity or sold, though, and in those instances the proposed rezoning
would be weighed against the criteria for approval. One of the most important criteria is consistency with
the comprehensive plan, including the Future Land Use Map.” Additionally, according to Hayley Zagurski,
rezoning requests are analyzed based upon several factors, including compatibility with zoning and use of
T
Page 3.24
surrounding properties and the City's comprehensive plan. The subject has a future land use designation
of Industrial Commerce which, allows for several industrial uses. Additionally, a zoning change with a
municipality would involve filing fees, public hearings, and other city planning processes that would further
increase the potential development costs for the subject property. Therefore, Comparables 1, 2, and 3 are
considered slightly superior to the subject property due to these properties already having an industrial
zoning in place at the time of purchase, and they would not have these potential administrative costs
associated with a zoning change. Therefore, Comparables 1, 2, and 3 will be adjusted downward 5 percent
for zoning. Comparable 4 has a superior zoning to Comparables 1, 2, and 3, and will be adjusted downward
10 percent.
Shape
The subject is considered irregular in shape and considered fairly typical in the market. All of the
Comparables are all fairly typical in shape and configuration; therefore, they will not be adjusted.
Floodplain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year
floodplain. Approximately 12% (~20.0 acres) of the subject property lies within the 100-year floodplain and
approximately 8 percent (~14.0 acres) of the subject property lies within the regulatory floodway. However,
this portion of the analysis is based on the premise that no part of the subject property lies within the
floodplain. Additionally, the portion of the subject property that lies within the 100-year floodplain and
regulatory floodway will be addressed within the reconciliation. All of the Comparables are located within
the 100-year floodplain. To extract the appropriate adjustment for floodplain, paired sales analysis for
several floodplain sales identified in the North Texas region have been displayed in the following table.
These floodplain sales are correlated with a very similar non-floodplain 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%
Indicated Adjustment:-65.9%
Flood Plain Paired Comparison #1
% 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%
Indicated Adjustment:-41.2%
Flood Plain Paired Comparison #2
1This non-flood sale has been adjusted downward 10 percent for size.
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Page 3.25
These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of
approximately -56 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. Furthermore
concluding toward the upper end of the range, a -75 percent adjustment will be utilized for the difference in
the value of land located within the floodway, compared to land that is not located within a flood plain. Given
that approximately 8 percent of Comparable 1 is encumbered by the 100-year flood plain and approximately
23 percent is encumbered by the floodway, an upward adjustment of 21 percent (8% of 50% = 4.0%) +
(23% of 75% = 17.25%) will be applied. Given that approximately 10 percent of Comparable 2 is
encumbered by the 100-year flood plain and 20 percent is encumbered by the floodway, an upward
% 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%
Indicated Adjustment:-23.4%
Flood Plain Paired Comparison #3
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.
% 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%
Indicated Adjustment:-91.6%
Flood Plain Paired Comparison #4
% 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%
Indicated Adjustment:-47.8%
Flood Plain Paired Comparison #5
% 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%
Indicated Adjustment:-63.0%
Flood Plain Paired Comparison #6
% 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%
Indicated Adjustment:-56.7%
Flood Plain Paired Comparison #7
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Page 3.26
adjustment of 20 percent (10% of 50% = 5.0%) + (20% of 75% = 15.0%) will be applied to Comparable 2.
Given that approximately 5 percent of Comparable 3 is encumbered by the 100-year flood plain and 23
percent is encumbered by the floodway, an upward adjustment of 20 percent (5% of 50% = 2.5%) + (23%
of 75% = 17.25%) will be applied to Comparable 3. None of Comparable 4 is located in the floodplain or
floodway, and no adjustments will be applied.
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Page 3.27
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $39,000 per acre is considered to be
reasonable. Furthermore, approximately 12% (~20.0 acres) of the subject property lies within the 100-year
floodplain and approximately 8 percent (~14.0 acres) of the subject property lies within the regulatory
floodway. As previously mentioned, a -50 percent adjustment will be utilized for the difference in the value
of land located within the 100-year floodplain, compared to land that is not located within a floodplain. This
results in a market value opinion of $19,500 per acre ($39,000 per acre x 50% = $19,500 per acre) for the
portions of the subject property located within the 100-year floodplain. Furthermore, a -75 percent
adjustment will be utilized for the difference in the value of land located within the regulatory floodway,
compared to land that is not located within the regulatory floodway. This results in a market value opinion
of $9,750 per acre ($39,000 per acre x 25% = $9,750 per acre) for the portions of the subject property
located within the regulatory floodway.
Additionally, as previously discussed, approximately 0.6531 acres (based upon measurements taken via
Google Earth), of Economic Unit 2 lies within a street easement. This street easement will be valued based
upon apparent rights remaining to the landowner. In order to estimate the value of the remaining rights of
this portion of the subject, the following Easement Valuation Matrix will be used as a guide for allocating
value of the fee simple interest between the landowner and Denton County for this street easement. This
exhibit was provided by an article entitled “Easement Valuation” by Donald Sherwood, SR/WA, published
in the November/December 2014 edition of Right of Way Magazine.
$/Acre All Data
Range $26,081 -$52,125 $36,387 -$40,731 -
Mean (Average)
Standard Deviation $3,072
Data Without Data with Absolute
All of the Comparables had a mean of $38,831 per acre,while the mean of data without high and low
extremes is $38,559 per acre,and the data with the least absolute adjustments (<=40%)had a mean of
$38,559 per acre.
$36,387 $40,731
$38,831 $38,559 $38,559
$10,784 $3,072
High and Low Extremes Adjustments <40%
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Page 3.28
The portion of the subject property Economic Unit 2 that is located within the street easement is
approximately 0.6531 acres. The existing street easement grants virtually no use rights to the property
owner outside of being able to include this area in the setback and land area requirements. Therefore, a
discount at the upper end of the range listed in the matrix would be necessary as there are virtually no other
conceivable uses remaining for the landowner. This easement is estimated to encumber 90 percent of the
use rights/value of this portion of the tract. As such, the remaining 10 percent of the use rights/fee simple
value of this portion of the tract remains with the current landowner. Therefore, an adjustment of 90 percent
will be utilized for the difference in the value of land located within the street easement, compared to land
that is not located within the street easement. This results in a market value opinion of $3,900 per acre
($39,000 per acre x (1-90%) = $3,900 per acre) for the portion of the subject property located within the
street easement. Additionally, portions of the subject property are located within the floodplain and are
encumbered by this street easement.
Thus, the total market value opinion of the whole Economic Unit 2, as of the effective date of the appraisal,
is calculated as follows:
*It should be noted that these totals may not calculate exactly due to rounding within the program.
$5,188,993
/AC $136,500
$390,000
@ $9,750
@ $19,500 /AC
EU 2 - Land Value in Fee
(In FW)14.0000 AC
EU 2 - Land Value in Fee
(In 100 Yr FP)20.0000 AC
133.0511 AC
EU 2 - Land Value in Fee
(Outside FP & FW)/AC
EU 2 - Land Value in St
Esmt (Outside FP & FW)@ $3,900 /AC
Total Land Value: EU 2
@ $39,000
167.7043 AC $5,718,040
$2,5470.6531 AC
Form ROW-A-5 Rev. 8/11 T
CA 3.29
COST APPROACH
Whole: Part to be Acquired: Remainder After:
Improvement
$
$
$
$
$
$
$
Gravel Paving SF =$19,405 $19,404
$19,404
$19,404
EU 1 - Land Value in Fee
(Outside FP & FW)147.1696 AC $39,000 /AC $5,739,614
EU 1 - Land Value in St
Esmt (Outside FP & FW)0.5952 AC $3,900 /AC $2,321
EU 1 - Land Value in Fee
(In 100 Yr FP)8.3376 AC $19,500 /AC $162,583
EU 1 - Land Value in St
Esmt (In 100 Yr FP)0.1624 AC $1,950 /AC $317
EU 1 - Land Value in Fee
(In FW)16.3491 AC $9,750 /AC $159,404
EU 1 - Land Value in St
Esmt (In FW)0.1509 AC $975 /AC $147
EU 2 - Land Value in Fee
(Outside FP & FW)133.0511 AC $39,000 /AC $5,188,993
EU 2 - Land Value in St
Esmt (Outside FP & FW)0.6531 AC $3,900 /AC $2,547
EU 2 - Land Value in Fee
(In 100 Yr FP)20.0000 AC $19,500 /AC $390,000
EU 2 - Land Value in Fee
(In FW)14.0000 AC $9,750 /AC $136,500
Total Land Value 340.4690 AC $11,782,426
$11,801,830
Accessory Improvements
Estimated Value by Cost Approach
Contributory Value of the Site Improvements
Contributory Value of all Improvements
Estimated Replacement/Reproduction Cost
Number of units $ per unit Cost New <Depreciation Value
Contributory Value of the Buildings
Contributory Value of the Accessory Improvements
Site Improvements
49,755 $38,809 50.00%$0.78
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.30
DISCUSSION OF COST APPROACH – WHOLE PROPERTY
The subject property is land improved with site improvements, such as gravel paving. Therefore, we have
provided a value of land only via the Sales Comparison Approach, and we have provided a value of the site
improvements located within the part to be acquired via the Cost Approach. The land value via the Sales
Comparison Approach is added to the contributory value of the site improvements within the acquisition via
the Cost Approach to arrive at a value of opinion of the whole property. As permitted by USPAP Standard
Rule 1-2 (e)(v), only the land and any affected site improvements are valued within this appraisal.
The improvements situated within the parts to be acquired involve gravel paving. According to Marshall &
Swift Estimator (Section 66, Page 2): the cost to replace the gravel paving would cost approximately $0.65
per square foot. Upon including an entrepreneurial profit incentive of 20 percent, total replacement cost
new would equate to $0.78 per square foot ($0.65/SF + 20%). Thus, total replacement cost new for the
gravel paving within the acquisition totals $38,809 (49,755 SF x $0.78/SF). The gravel paving improvements
are considered to be of good quality and are in average condition with an effective age of 3 years and a
useful life of 6 years and will therefore be depreciated by 50.00 percent (3 yr age ÷ 6 yr life). After applying
50.00 percent depreciation to the cost of the gravel paving, the total contributory value equates to $19,404.
The site improvements (gravel paving) are of good quality and are in good condition.
Upon adding the contributory value of the site improvements within the acquisition to the land value of the
whole subject tract, a market value of the whole property of $11,801,830 results.
Total Ent. Profit/Total Cost Total Eff.Econ.Total Depreciated
Improvement Cost Cost/Unit Soft Costs New/Unit Cost New Age Life Depreciation Depreciation Cost
Site Improvements
Gravel Paving $32,341 49,755 SF $0.65 20%$0.78 $38,809 3 6 50.00%$19,405 $19,404
Totals:$32,341 $38,809 $19,405 $19,404
of Units
Number
Form ROW-A-5 Rev. 8/11 T
SCA 3.31
SALES COMPARISON APPROACH
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID Representative Comparable Sales Subject Comp. No. Comp. No. Comp. No.
Grantor
Grantee
Date of Sale
Unit Price
Relative Location
Financing
Conditions of Sale
Market Conditions
Physical Characteristics
Indicated Unit Value
$
$
$
Estimated Unit Value
The Sales Comparison Approach as improved is not applicable and is excluded.
Form ROW-A-5 Rev. 8/11 T
IA 3.32
INCOME APPROACH
Whole: Part to be Acquired: Remainder After:
Potential Gross Income ........................... $
Vacancy %
$
Effective Gross Income .......................................................................................... $ Expenses:
Fixed Taxes ................................ $
Insurance .......................... $
Variable Management ..................... $
Other $
$
$
Total Expenses .......................................................................................... $ Net Operating Income .......................................................................................... $ Income Capitalized @ % ................................................. $ Plus: Value of Excess Land (if any) ................................................. $ $ Estimated Value by Income Approach ............................................... $
The Income Approach is not applicable and is excluded.
SECTION FOUR
Form ROW-A-5 Rev. 8/11 T
PVS 4.0
PART TO BE ACQUIRED
REMAINDER BEFORE THE ACQUISITION
AC
AC
Highest and Best Use:The part to be acquired is not considered to be an economic unit which can be independently used apart from the whole
property. Thus, its highest and best use is to be used along with the whole property.
Contributory Value of Improvements (Itemized)
Gravel Paving (49,755 SF)$19,404
Total Contributory Value of Improvements $19,404
Total Contributory Value of Improvements $19,404
=$425,061
EU 1 - Land Value in Fee
(In 100 Yr FP)3.3881
EU 1 - Land Value in Fee
(Outside FP & FW)10.8990 Per Acre$39,000AC@
EU 1 - Land Value in St
Esmt (Outside FP & FW)0.1377 AC @ $3,900 Per Acre =$537
EU 1 - Land Value in Fee
(In FW)1.0000 =
=$66,068
$9,750$9,750 Per Acre
Per Acre$19,500AC@
AC @
$218EU 1 - Land Value in St
Esmt (In 100 Yr FP)
EU 2 - Land Value in Fee
(In 100 Yr FP)1.0000 =$19,500
EU 2 - Land Value in Fee
(Outside FP & FW)11.3177 =
$19,500 Per Acre
$39,000 Per AcreAC@
AC @
EU 2 - Land Value in St
Esmt (Outside FP & FW)
Total Land Value 32.1821 AC $1,002,802 $1,002,802
EU 1 - Land Value in Fee
(In FW)4.0000 =
Total Land Value: EU 2
Total Land Value: EU 1 15.5367
16.6454 $501,168
$501,634
TOTAL VALUE AS A UNIT $1,022,206
$39,000$9,750 Per AcreAC@
*The calculation of the value per unit estimate ofthe flood plain and/or floodway and street easement portion of the subject part to be acquired can be found on pages
3.17-3.18 & 3.27-3.28 of this report.
0.1119 AC @ $1,950 Per Acre =
$1,278
$441,390
0.3277 AC @ $3,900 Per Acre =
Total Contributory Value of Improvements $0
Total Contributory Value of Improvements $0
Remainder Land 308.2869 AC $10,779,624
Contributory Value of Improvements (Itemized)
$10,779,624
TOTAL VALUE AS A UNIT $10,779,624
Total Land Value 308.2869 AC $10,779,624
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.1
HIGHEST AND BEST USE – PART ACQUIRED
The part to be acquired is a 32.1821 acre (1,401,852 square foot) tract of land located down the center of
the subject property. Furthermore, approximately 0.5774 acres, of this proposed acquisition is encumbered
by a street easement. It should be noted no access rights are being acquired as part of the acquisition. The
survey and legal description for the parts to be acquired are located on the following pages. This portion of
the tract is not considered to comprise an economic unit to be independently used apart from the whole
property given its shallow depth and slightly irregular configuration. Given the constraints of this tract due
to the configuration, the highest and best use of this tract is to be used along with the whole property for
industrial use. Therefore, the part to be acquired is valued as a part of the whole property.
Approximately 15.5367 acres (676,780 square feet) of the part to be acquired are located within Economic
Unit 1 and 16.6454 acres (725,072 square feet) of the part to be acquired are located within Economic Unit
2. Furthermore, approximately 0.9085 acres of the street easement lies within Economic Unit 1, and
approximately 0.6531 acres of the street easement lies within Economic Unit 2.
Right-of-Way Acquisition: As previously discussed, the part to be acquired is a 32.1821 acre (1,401,852
square foot) tract of land located down the center of the subject property. The part to be acquired starts at
the northern property line and runs south/southwest parallel with South Masch Branch Road approximately
4,205 feet, then runs north approximately 857 feet, then runs west approximately 322 feet, then runs north
approximately 3,448 feet, then runs east for approximately 1,647 feet to the point of beginning. The part to
be acquired is irregular in shape and is approximately 1,647 feet long along Jim Christal Road. Additionally,
the portion of the part acquired within Economic Unit 1 totals 15.5367 acres (676,780 square feet) and the
portion of the part acquired within Economic Unit 2 totals 16.6454 acres (725,072 square feet).
The land area within the right-of-way acquisition is an integral part of the whole property and has the same
value per square foot as the whole property. The value of land that is located outside of the 100 year
floodplain is estimated to be $39,000/acre, inside the 100 year floodplain is estimated to be $19,500/acre,
and the land inside the regulatory floodway is estimated to be $9,750/acre.
Additionally, approximately 1.5610 acres of this proposed acquisition is encumbered by a street easement
(approximately 0.9085 acres of the street easement lies within Economic Unit 1, and approximately 0.6531
acres of the street easement lies within Economic Unit 2). This street easement has been valued based
upon apparent rights remaining to the landowner based off of information provided by the Easement
Valuation Matrix (located on pages 3.17-3.18 and 3.27-3.28 of this report). The existing street easement
grants virtually no use rights to the property owner outside of being able to include this area in the setback
and land area requirements. This easement is estimated to encumber 90 percent of the use rights/value of
this portion of the tract. Additionally, portions of the part to be acquired are located within the floodplain and
are encumbered by this street easement.
The remaining land area within the right-of-way acquisition is an integral part of the whole property and has
the same value per square foot as the whole property or $39,000/square foot. Thus, the total market value
for the part to be acquired is calculated below:
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.2
Thus, the total land value of the part to be acquired equates to $1,002,802.
Additionally, approximately 49,755 square feet of gravel paving is situated in the proposed acquisition area.
The improvements are considered to be in average condition. The site improvements have been valued
within the value of the whole property via the Cost Approach. Therefore, the contributory value concluded
within the value of the whole property will be used within the value of the part to be acquired. This
contributory value totals $19,404.
Upon adding the land value to the contributory value of the improvements within the part to be acquired a
total value of the part to be acquired equals $1,022,206 ($1,002,802 + $19,404).
Therefore, the value of the remainder of the subject property is calculated by subtracting the value of the
parts to be acquired from the value of the whole property for each economic unit as follows:
Value of the Whole Property: $11,801,830
Minus: Value of the Part to be Acquired: $1,022,206
Equals: Value of the Remainder Before Acquisition: $10,779,624
=$425,061
EU 1 - Land Value in Fee
(In 100 Yr FP)3.3881
EU 1 - Land Value in Fee
(Outside FP & FW)10.8990 Per Acre$39,000AC@
EU 1 - Land Value in St
Esmt (Outside FP & FW)
EU 1 - Land Value in Fee
(In FW)1.0000 =
=$66,068
$9,750$9,750 Per Acre
Per Acre$19,500AC@
AC @
$441,390
EU 2 - Land Value in Fee
(In 100 Yr FP)1.0000 =$19,500
EU 2 - Land Value in Fee
(Outside FP & FW)11.3177 =
$19,500 Per Acre
$39,000 Per AcreAC@
AC @
Total Land Value 32.1821 AC $1,002,802
EU 1 - Land Value in Fee
(In FW)4.0000 =$39,000$9,750 Per AcreAC@
$218
0.1377 AC @ $3,900 Per Acre =$537
EU 1 - Land Value in St
Esmt (In 100 Yr FP)0.1119 AC @ $1,950 Per Acre =
$1,278EU 2 - Land Value in St
Esmt (Outside FP & FW)0.3277 AC @ $3,900 Per Acre =
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.3
LEGAL DESCRIPTION OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.4
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.5
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.6
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.7
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.8
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.9
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.10
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.11
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.12
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.13
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.14
SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue while the street easement is highlighted in red. All of the highlighted areas lie
within the proposed acquisition.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.15
SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.16
SURVEY OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
The proposed fee simple acquisition area is outlined in blue
SECTION FIVE
Form ROW-A-5 Rev. 8/11 T
Each approach developed follows this page and is sequenced as shown below.
Land Value,
pg 5.5-5.24
Cost Approach,
pg 5.25
Sales Comparison Approach,
pg 5.26
Income Approach,
pg 5.27
PVS 5.0
PROPERTY VALUATION SUMMARY
Whole: Part to be Acquired: Remainder After:
HIGHEST AND BEST USE ANALYSIS:
The Highest and Best Use analysis should consider the reasonably probable and legal use of vacant land or improved property
considering legally permissible, physically possible, financially feasible, and maximally productive. See Page 5.2
Given the subject’s lack of zoning, location, and current agricultural residential development taking place in the area, the highest and
best use of the subject tract as vacant is for future industrial development.
VALUATION APPROACHES
As discussed earlier within this report the subject property involves a 340.4690 acre tract of land improved with the Denton Energy
Center, gravel paving, and site improvements. The subject will consist of two remainder tracts. Based on market information, the subject
has been divided into two economic units, whereby Economic Unit 1 contains 172.7647 acres and Economic Unit 2 contains 167.7043
acres. The remainder of Economic Unit 1 consists of 157.2280 acres improved with the Denton Energy Center, gravel paving, and site
improvements, and the remainder of Economic Unit 2 consists of 151.0589 acres improved with gravel paving and site improvements.
Furthermore, approximately 0.6588 acres (based upon measurements taken via Google Earth) of Remainder Economic Unit 1 lies within
a street easement, and approximately 0.3254 acres, of Remainder Economic Unit 2 lies within a street easement. However, the remaining
improvements are not affected by the acquisition and are excluded from the valuation. The Cost, Sales Comparison, and Income
Capitalization Approaches to value improved property have not been included within this analysis given the exclusion of the valuation
of the improvements. Thus, these valuation approaches are not applicable for this assignment. The Sales Comparison Approach utilizing
comparable land sales has been performed to determine the market value of the remainder of the subject land only.
Total Land Value: EU 2
Total Land Value: EU 1 157.2280
151.0589
AC
AC $6,019,472
$6,418,560
*The calculation of the value per unit estimate of the flood plain and/or floodway and street easement portion of the subject part to be acquired can be found on pages 5.12-
5.14 & 5.22-5.24 of this report.
Cost Approach……………………………………………………….....………N/A
Sales Comparison Approach………………………………………….....……$12,438,032
Contributory Value of Improvements (Itemized)
$0
Income Approach…………………………………………………….....……N/A
Reconciliation of Approaches to Value:Based upon our analysis of the market data available,the market value of the remainder subject property is
$12,438,032.
=EU 1 - Rmndr Land Value in
Fee (In 100 Yr FP)
EU 1 - Rmndr Land Value in
Fee (Outside FP & FW)
Total Contributory Value of Improvements $0
$45,000 Per Acre
$111,3644.9495 $22,500 Per Acre
@
@
19.0000 =$427,500
=$112,500@
AC @
$114
AC
$1,464
136.2706 $6,132,177=
Total Contributory Value of Improvements $0
AC
$12,438,032 $12,438,032
EU 1 - Rmndr Land Value in
Fee (In FW)
10.0000
TOTAL VALUE AS A UNIT $12,438,032
Total Land Value 308.2869 AC
AC
AC @
AC @
$2,058
*It should be noted that these totals may not calculate exactly due to rounding within the program.
$11,250 Per Acre
$45,000 Per Acre
$22,500 Per Acre
$11,250 Per Acre
15.3491 =$172,677
EU 2 - Rmndr Land Value in
Fee (In FW)
EU 2 - Rmndr Land Value in
Fee (In 100 Yr FP)
EU 2 - Rmndr Land Value in
Fee (Outside FP & FW)121.7335 =
EU 1 - Rmndr Land Value in
St Esmt (Outside FP & FW)0.4574 AC @ $4,500 Per Acre =
EU 1 - Rmndr Land Value in
St Esmt (In 100 Yr FP)0.0505 AC @ $2,250 Per Acre =
$170
EU 2 - Rmndr Land Value in
St Esmt (Outside FP & FW)0.3254 AC @ $4,500 Per Acre =
$5,478,008
EU 1 - Rmndr Land Value in
St Esmt (In FW)0.1509 @ $1,125 Per Acre =
Form ROW-A-5 Rev. 8/11 T
Each approach developed follows this page and is sequenced as shown below.
Land Value,
pg 5.5-5.24
Cost Approach,
pg 5.25
Sales Comparison Approach,
pg 5.26
Income Approach,
pg 5.27
PVS 5.1
Total Land Value: EU 2
Total Land Value: EU 1 157.2280
151.0589
AC
AC $6,019,472
$6,418,560
*The calculation of the value per unit estimate of the flood plain and/or floodway and street easement portion of the subject part to be acquired can be found on pages 5.12-
5.14 & 5.22-5.24 of this report.
Cost Approach……………………………………………………….....………N/ASales Comparison Approach………………………………………….....……$12,438,032Contributory Value of Improvements (Itemized)$0Income Approach…………………………………………………….....……N/AReconciliationofApproachestoValue:Based upon our analysis of the market data available,the market value of the remainder subject property is$12,438,032.=EU 1 - Rmndr Land Value in Fee (In 100 Yr FP)EU 1 - Rmndr Land Value in Fee (Outside FP & FW)Total Contributory Value of Improvements $0$45,000 Per Acre $111,3644.9495 $22,500 Per Acre@@
19.0000 =$427,500
=$112,500@
AC @
$114
AC
$1,464
136.2706 $6,132,177=Total Contributory Value of Improvements $0AC
$12,438,032 $12,438,032
EU 1 - Rmndr Land Value in
Fee (In FW)
10.0000
TOTAL VALUE AS A UNIT $12,438,032
Total Land Value 308.2869 AC
AC
AC @
AC @
$2,058
*It should be noted that these totals may not calculate exactly due to rounding within the program.
$11,250 Per Acre
$45,000 Per Acre
$22,500 Per Acre
$11,250 Per Acre
15.3491 =$172,677
EU 2 - Rmndr Land Value in
Fee (In FW)
EU 2 - Rmndr Land Value in
Fee (In 100 Yr FP)
EU 2 - Rmndr Land Value in
Fee (Outside FP & FW)121.7335 =
EU 1 - Rmndr Land Value in St Esmt (Outside FP & FW)0.4574 AC @ $4,500 Per Acre =EU 1 - Rmndr Land Value in
St Esmt (In 100 Yr FP)0.0505 AC @ $2,250 Per Acre =
$170
EU 2 - Rmndr Land Value in
St Esmt (Outside FP & FW)0.3254 AC @ $4,500 Per Acre =
$5,478,008
EU 1 - Rmndr Land Value in
St Esmt (In FW)0.1509 @ $1,125 Per Acre =
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.2
Remainder: The remainder tracts comprise 157.2280 acres and 151.0589 acres, calculated below.
Whole Property = 340.4690 AC or 14,830,830 SF
Part Acquired EU 1 = 15.5367 AC or 676,780 SF
Part Acquired EU 2 = 16.6454 AC or 725,072 SF
Remainder EU 1 = 157.2280 AC or 6,848,852 SF
Remainder EU 2 = 151.0589 AC or 6,580,126 SF
*It should be noted that the square footage sizes of the whole property and remainders were calculated by multiplying the acreages by 43,560
square feet. The square footage of the part to be acquired was found on the survey provided by Pacheco Koch Consulting Engineers, Inc.
Valuation of Remainder After the Acquisition:
Remainder Economic Unit 1 is a 157.2280 acre tract improved with the Denton Energy Center, gravel
paving, and site improvements, and Remainder Economic Unit 2 is a 151.0589 acre tract improved with
gravel paving and site improvements. Remainder Economic Unit 1 and Remainder Economic Unit 2 are of
sufficient size and shape to support the highest and best use of the tracts for future industrial development.
The public project is a benefit to all properties in the neighborhood and not specific to a particular property.
Remainder Economic Unit 1 has approximately 3,448 linear feet of useable road frontage along the
southbound frontage road after the acquisition and Remainder Economic Unit 2 has approximately 4,205
linear feet of useable road frontage along the northbound frontage road of SL 288 after the acquisition. The
Sales Comparison Approach is utilized to determine the market value of the remainder tracts after the
acquisition. The use of Remainder Economic Unit 1 as the Denton Energy Center will not be affected by
the proposed acquisition and no damages are anticipated. After the proposed acquisition the subject
Economic Units 1 and 2 will be located at the southwest and southeast corners of SL 288 and Jim Christal
Road, respectively.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.2
HIGHEST AND BEST USE ANALYSIS – REMAINDER TRACT
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. 10
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. 11
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.
10 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 109.
11 Ibid. page 152
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.2
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, 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 subject property is zoned Planned Facilities (PF) and Heavy Industrial (HI) and is subject to the City of
Denton’s zoning ordinance. Therefore, a wide variety of uses are allowed, such as industrial, residential,
and agricultural. Thus, future industrial development is considered to be indicative of the most likely and
legally permissible uses of the site.
Addressing the second question, What uses of the site are physically possible? requires a review of the
physical characteristics of the site. The subject site consists of 308.2869 acres improved with the Denton
Energy Center, gravel paving, and site improvements. Based on market information, the subject has been
divided into two economic units, whereby Economic Unit 1 contains 172.7647 acres and Economic Unit 2
contains 167.7043 acres. The remainder of Economic Unit 1 consists of 157.2280 acres improved with the
Denton Energy Center, gravel paving, and site improvements, and the remainder of Economic Unit 2
consists of 151.0589 acres improved with gravel paving and site improvements. The subject is physically
located along the south line of Jim Christal Road, just west of South Masch Branch Road in Denton County,
Texas. 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 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 subject tract is considered to
have good exposure and access and be of adequate size for future industrial development. The immediate
surrounding area is predominantly industrial and residential development.
The topography of the subject tract is considered to be level. Drainage appears to be adequate. This
topography is conducive for most types of industrial development. Additionally, soil and subsoil conditions
are not considered to significantly hinder the development potential of the site. The site has access to all
utilities, and the site appears to be encumbered by a street easement along the north property line, which
is considered to be detrimental to property development. Approximately 0.6588 acres of Remainder
Economic Unit 1 is located within this street easement and approximately 0.3254 acres of Remainder
Economic Unit 2 is located within this street easement. Additionally, approximately 3 percent (~5.0 acres)
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.2
of Remainder Economic Unit 1 lies within the 100-year floodplain and approximately 9 percent (~15.5 acres)
of Remainder Economic Unit 1 lies within the regulatory floodway. Additionally, approximately 11 percent
(~19.0 acres) of Remainder Economic Unit 2 lies within the 100-year floodplain and approximately 6 percent
(~10.0 acres) of Remainder Economic Unit 2 lies within the regulatory floodway. Based upon an analysis
of land uses within the subject neighborhood, and given the access the site will have to SL 288, as well as
the surrounding land uses in the immediate vicinity, it is our reasoned opinion that the subject remainder
tracts can be used for future industrial development, which appears to be the most likely potential use of
the site.
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, there is currently a significant amount of industrial,
agricultural, and residential development within the immediate vicinity of the subject. The current land sales
within the subject neighborhood have been acquired for either speculative investments or residential
development. Given the subject’s size, zoning, location, and current industrial development taking place in
the area, the highest and best use of the subject remainder tracts is for future industrial development. The
most likely purchaser would be an investor.
Form ROW-A-5 Rev. 8/11 T
SCA 5.5
SALES COMPARISON APPROACH – REMAINDER ECONOMIC UNIT 1
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID – ECONOMIC UNIT 1 Representative Comparable Sales
See Land Sales Analysis on the following page
Grantor
Grantee
Date of Sale
Unit Price ($/Acre)
Relative Location
Rights Conveyed
Financing
AC AC AC AC AC
SF SF SF SF SF
Conditions of Sale
Market Conditions
Adjusted Price ($/Acre)
Physical Characteristics
Location
AC
SF
Corner
Utilities
Topography
Zoning
Shape
Flood Plain
Net Adjustment
Unit Value ($/Acre)$45,000
+21%-5%+20%-10%
Indicated Unit Value $44,401 $58,258 $28,452 $40,936
3% FP 9% FW +21%+20%+20%0%
Public Facilities (PF)
& Heavy Industrial -5%-5%-5%-10%
Rectangular 0%0%0%0%
All Available 0%0%0%0%
Level 0%0%0%0%
-10%6,848,850
Yes +10%0%+10%+10%
Good 0%-10%0%0%
Size 157.2280 -5%-10%-5%
5%/Year 0%+2%+12%+14%
$36,695 $61,324 $23,710 $45,484
2,220,689
Arm's Length Arm's Length Arm's Length Arm's Length
Land Size 157.2280 90.6130 37.4240 77.9400 50.9800
6,848,850 3,947,102 1,630,189 3,395,066
Fee Simple Fee Simple Fee Simple Fee Simple
Cash to the Seller Cash to the Seller Cash to the Seller Cash to the Seller
July 1, 2020 May 22, 2018 February 9, 2018
$36,695 $60,122 $21,170 $39,898
0.8 Miles SE 1.7 Miles SE 0.8 Miles E 3.0 Miles NE
Comp No. 4
Virginia Fryman
Chester Properties
Limited, a Texas
limited Partnership
Brenda Bradford
Head, Beverly
Bradford Fletcher,
John M. Bradford,
and Melissa Bradford
Williams
Foster Real Estate,
Ltd.
Subject Comp No. 1 Comp No. 2 Comp No. 3
N/A
US Trinity Holdings,
LLC, a Texas limited
liability company
Mar-Properties,
LTD., a Texas limited
partnership
Deeper Life Bible
Church, Inc.
Under Contract
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.6
LAND SALES ANALYSIS – REMAINDER ECONOMIC UNIT 1
Elements of comparison are the characteristics of properties and transactions that cause the prices paid
for real estate to vary. The array of data suggests possible adjustments for various characteristics of each
transaction in comparison with the subject site. The Sales have been compared to the subject for dissimilar
characteristics and adjustments are made on a price per unit basis. Following is a summary table of the
comparable land sales.
Real 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.
Financing Terms
All of the sales were consummated with the sellers effectively receiving cash in exchange for their
consideration in the property and no adjustments were made for advantageous seller financing.
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 were reported to be arm's-length sales
and did not involve any unusual conditions of sale. Thus, no adjustments are necessary for this category.
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
Sales
Sale Location Date Size Flood Sales Price/
No.(Address)of Sale (Acres)Utilities Topography Zoning Shape Plain Price Acre
1 90.6130 All Available Level (HI) Heavy Industrial Irregular 23% FW 8% FP $3,325,000 $36,695
2 7/1/20 37.4240 All Available Level (HI) Heavy Industrial Rectangular $2,250,000 $60,122
3 5/22/18 77.9400 All Available Level (LI) Light Industrial Near Rectangular 23% FW 5% FP $1,650,000 $21,170
4 2/9/18 50.9800 All Available Level Irregular None $2,034,000 $39,898
Subject:-157.2280 All Available Level Rectangular None --
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
N Line of FM 1173, W of I-35, Denton,
Denton County, Texas
S Line of Jim Christal Rd, W of S Masch
Branch Rd, Denton, Denton County, Texas
N Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
(RCC-N) Reg Center
Comm Neighborhood
Public Facilities (PF) &
Heavy Industrial (HI)
~10% 100, ~5%
500, ~20% FW
Under
Contract
Summary of
Comparable Land Sales
S Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.7
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 adjustments for property rights conveyed, financing, and conditions
of sale have been made. 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/Unit for each comparable which has been adjusted for the other
transactional adjustments. The % Physical Adjustment column indicates the total adjustments made for all
physical characteristics (location, size, corner, utilities, topography zoning, floodplain, etc.) as shown on
Page SCA 5.5. The Adjusted Price/Unit is calculated by applying the % Physical Adjustment for each sale
to its Price/Unit. By analyzing the comparable sales adjusted prices per unit 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.
In closely analyzing the Comparables, an upward trend is not apparent. However, after talking with market
participants, they indicate that market conditions are increasing in the area. Therefore, the Comparables
will be adjusted upwards by 5 percent per year as follows: Comparable 1 (0 percent upwards), Comparable
2 (2 percent upwards), Comparable 3 (12 percent upwards), and Comparable 4 (14 percent upwards). This
is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the
market conditions adjustments are considered reasonable.
Location
Location is considered to be one of the most important characteristics of real estate; therefore, the location
of the Comparables is the first of the physical characteristics to be considered. The following adjustments
have been made based upon our professional opinion and experience. The subject property is located at
the southwest corner of SL 288 and Jim Christal Road in Denton County, Texas. Comparables 1 and 3
have fairly similar locations for industrial development when compared to the subject and no adjustments
will be made. Comparable 2 is located in a superior industrial development within close proximity to the
Denton Enterprise Airport. Therefore, Comparable 1 will be adjusted downward 10 percent for location.
Comparable Date Unadjusted Physical %Adjusted
Number of Sale Price/Acre*Adjustment Price/Acre
Comparable 1 Under Contract $36,695 21%$44,401
Comparable 2 July 1, 2020 $60,122 -5%$57,116
Comparable 3 May 22, 2018 $21,170 20%$25,404
Comparable 4 February 9, 2018 $39,898 -10%$35,908
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.8
Comparable 4 is located in an inferior area for industrial development north of US 380. However, this
Comparable is located in close proximity to I-35 and has superior access and exposure than the subject.
Therefore, Comparable 4 will not be adjusted.
Size
Remainder Economic Unit 1 totals 157.2280 acres. The Comparables range in size from 37.4240 to
90.6130 acres. Typically, smaller tracts sell for more per acre than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Therefore,
Comparable 1 (90.6130 acres) and Comparable 3 (77.9400 acres), which are slightly smaller in size
compared to the subject property, will be adjusted downward 5 percent. Comparable 2 (37.4240 acres) and
Comparable 4 (50.9800 acres) are smaller in size than the subject property and will be adjusted downward
10 percent.
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.
Additionally, the presence of a corner influences larger residential tracts as well given the increased
exposure and access a corner provides. The remainder subject property is located on a corner.
Comparables 1, 3, and 4 are not located on a corner and will be adjusted upward 10 percent. Comparable
2 also benefits from the presence of a corner and will not be adjusted.
Utilities
The subject property has all utilities available. All of the Comparables also reportedly had all utilities
available and no adjustments will be made.
Topography
This adjustment takes into consideration the topography (terrain) of the subject property and how
desirable/developable the site is. The topography of the subject tract is considered to be level. The
topography of the site should not limit the use of the property provided proper site work is undertaken. All
of the Comparables have fairly similar topographical considerations, and no adjustments will be made.
Zoning
The zoning a property possesses dictates the legally permissible use(s) to which it can be developed.
Consequently, the value of a property can be significantly influenced by its zoning classification. The subject
property is zoned Planned Facilities (PF) and Heavy Industrial (HI) by the City of Denton and is subject to
the City of Denton’s zoning ordinance. According to Hayley Zagurski, a representative for the City of Denton
Planning office, the Public Facilities designation “in most instances was applied to land owned either by the
City or another governmental or quasi-governmental entity such as Denton ISD. It is possible that property
zoned PF could be owned by another entity or sold, though, and in those instances the proposed rezoning
would be weighed against the criteria for approval. One of the most important criteria is consistency with
the comprehensive plan, including the Future Land Use Map.” Additionally, according to Hayley Zagurski,
rezoning requests are analyzed based upon several factors, including compatibility with zoning and use of
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.9
surrounding properties and the City's comprehensive plan. The subject has a future land use designation
of Industrial Commerce which, allows for several industrial uses. Additionally, a zoning change with a
municipality would involve filing fees, public hearings, and other city planning processes that would further
increase the potential development costs for the subject property. Therefore, Comparables 1, 2, and 3 are
considered slightly superior to the subject property due to these properties already having an industrial
zoning in place at the time of purchase, and they would not have these potential administrative costs
associated with a zoning change. Therefore, Comparables 1, 2, and 3 will be adjusted downward 5 percent
for zoning. Comparable 4 has a superior zoning to Comparables 1, 2, and 3, and will be adjusted downward
10 percent.
Shape
The subject is considered irregular in shape and considered fairly typical in the market. All of the
Comparables are also irregular in shape and configuration; therefore, they will not be adjusted.
Floodplain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year
floodplain. Approximately 3 percent (~5.0 acres) of the subject property lies within the 100-year floodplain
and approximately 9 percent (~15.0 acres) of the subject property lies within the regulatory floodway.
Additionally, the portion of the subject property that lies within the 100-year floodplain and regulatory
floodway will be addressed within the reconciliation. All of the Comparables are located within the 100-year
floodplain. To extract the appropriate adjustment for floodplain, paired sales analysis for several floodplain
sales identified in the North Texas region have been displayed in the following table. These floodplain sales
are correlated with a very similar non-floodplain 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%
Indicated Adjustment:-65.9%
Flood Plain Paired Comparison #1
% 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%
Indicated Adjustment:-41.2%
Flood Plain Paired Comparison #2
1This non-flood sale has been adjusted downward 10 percent for size.
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REAL PROPERTY ANALYSTS, INC.
Page 5.10
These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of
approximately -56 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. Furthermore
concluding toward the upper end of the range, a -75 percent adjustment will be utilized for the difference in
the value of land located within the floodway, compared to land that is not located within a flood plain. Given
that approximately 8 percent of Comparable 1 is encumbered by the 100-year flood plain and approximately
23 percent is encumbered by the floodway, an upward adjustment of 21 percent (8% of 50% = 4.0%) +
(23% of 75% = 17.25%) will be applied. Given that approximately 10 percent of Comparable 2 is
% 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%
Indicated Adjustment:-23.4%
Flood Plain Paired Comparison #3
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.
% 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%
Indicated Adjustment:-91.6%
Flood Plain Paired Comparison #4
% 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%
Indicated Adjustment:-47.8%
Flood Plain Paired Comparison #5
% 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%
Indicated Adjustment:-63.0%
Flood Plain Paired Comparison #6
% 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%
Indicated Adjustment:-56.7%
Flood Plain Paired Comparison #7
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.11
encumbered by the 100-year flood plain and 20 percent is encumbered by the floodway, an upward
adjustment of 20 percent (10% of 50% = 5.0%) + (20% of 75% = 15.0%) will be applied to Comparable 2.
Given that approximately 5 percent of Comparable 3 is encumbered by the 100-year flood plain and 23
percent is encumbered by the floodway, an upward adjustment of 20 percent (5% of 50% = 2.5%) + (23%
of 75% = 17.25%) will be applied to Comparable 3. None of Comparable 4 is located in the floodplain or
floodway, and no adjustments will be applied.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.12
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $45,000 per acre is considered to be
reasonable. Furthermore, approximately 3 percent (~5.0 acres) of the subject property lies within the 100-
year floodplain and approximately 9 percent (~15.0 acres) of the subject property lies within the regulatory
floodway. As previously mentioned, a -50 percent adjustment will be utilized for the difference in the value
of land located within the 100-year floodplain, compared to land that is not located within a floodplain. This
results in a market value opinion of $22,500 per acre ($45,000 per acre x 50% = $22,500 per acre) for the
portions of the subject property located within the 100-year floodplain. Furthermore, a -75 percent
adjustment will be utilized for the difference in the value of land located within the regulatory floodway,
compared to land that is not located within the regulatory floodway. This results in a market value opinion
of $11,250 per acre ($45,000 per acre x 25% = $11,250 per acre) for the portions of the subject property
located within the regulatory floodway.
Additionally, as previously discussed, approximately 0.6588 acres (based upon measurements taken via
Google Earth) of Remainder Economic Unit 1 lies within a street easement. This street easement will be
valued based upon apparent rights remaining to the landowner. In order to estimate the value of the
remaining rights of this portion of the subject, the following Easement Valuation Matrix will be used as a
guide for allocating value of the fee simple interest between the landowner and Denton County for this
street easement. This exhibit was provided by an article entitled “Easement Valuation” by Donald Sherwood,
SR/WA, published in the November/December 2014 edition of Right of Way Magazine.
$/Acre All Data
Range $28,452 -$58,258 $40,936 -$44,401 -
Mean (Average)
Standard Deviation $2,450
Data Without Data with Absolute
All of the Comparables had a mean of $43,012 per acre,while the mean of data without high and low
extremes is $42,669 per acre,and the data with the least absolute adjustments (<=50%)had a mean of
$47,865 per acre.
$40,936 $58,258
$43,012 $42,669 $47,865
$12,257 $9,166
High and Low Extremes Adjustments <50%
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.13
The portion of Remainder Economic Unit 1 that is located within the street easement is approximately
0.6588 acres. The existing street easement grants virtually no use rights to the property owner outside of
being able to include this area in the setback and land area requirements. Therefore, a discount at the
upper end of the range listed in the matrix would be necessary as there are virtually no other conceivable
uses remaining for the landowner. This easement is estimated to encumber 90 percent of the use
rights/value of this portion of the tract. As such, the remaining 10 percent of the use rights/fee simple value
of this portion of the tract remains with the current landowner. Therefore, an adjustment of 90 percent will
be utilized for the difference in the value of land located within the street easement, compared to land that
is not located within the street easement. This results in a market value opinion of $4,500 per acre ($45,000
per acre x (1-90%) = $4,500 per acre) for the portion of the subject property located within the street
easement. Additionally, portions of the subject property are located within the floodplain and are
encumbered by this street easement.
Thus, the total market value opinion of Remainder Economic Unit 1, as of the effective date of the appraisal,
is calculated as follows:
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.14
=EU 1 - Rmndr Land Value in
Fee (In 100 Yr FP)
EU 1 - Rmndr Land Value in
Fee (Outside FP & FW)$45,000 Per Acre
$111,3644.9495 $22,500 Per Acre
@
@
$114
AC
136.2706 $6,132,177=AC
$6,418,560
EU 1 - Rmndr Land Value in
Fee (In FW)
Total Land Value 157.2280 AC
AC @
$2,058
$11,250 Per Acre15.3491 =$172,677
EU 1 - Rmndr Land Value in
St Esmt (Outside FP & FW)0.4574 AC @ $4,500 Per Acre =
EU 1 - Rmndr Land Value in
St Esmt (In 100 Yr FP)0.0505 AC @ $2,250 Per Acre =
EU 1 - Rmndr Land Value in
St Esmt (In FW)0.1509 @ $1,125 Per Acre =$170
Form ROW-A-5 Rev. 8/11 T
SCA 5.15
SALES COMPARISON APPROACH – REMAINDER ECONOMIC UNIT 2
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID – ECONOMIC UNIT 2 Representative Comparable Sales
See Land Sales Analysis on the following pages
Grantor
Grantee
Date of Sale
Unit Price ($/Acre)
Relative Location
Rights Conveyed
Financing
AC AC AC AC AC
SF SF SF SF SF
Conditions of Sale
Market Conditions
Adjusted Price ($/Acre)
Physical Characteristics
Location
AC
SF
Corner
Utilities
Topography
Zoning
Shape
Flood Plain
Net Adjustment
Unit Value ($/Acre)$45,000
+21%-5%+20%-10%
Indicated Unit Value $44,401 $58,258 $28,452 $40,936
11% FP 6% FW +21%+20%+20%0%
Public Facilities (PF)
& Heavy Industrial -5%-5%-5%-10%
Rectangular 0%0%0%0%
All Available 0%0%0%0%
Level 0%0%0%0%
-10%6,580,127
Yes +10%0%+10%+10%
Good 0%-10%0%0%
Size 151.0589 -5%-10%-5%
5%/Year 0%+2%+12%+14%
$36,695 $61,324 $23,710 $45,484
2,220,689
Arm's Length Arm's Length Arm's Length Arm's Length
Land Size 151.0589 90.6130 37.4240 77.9400 50.9800
6,580,127 3,947,102 1,630,189 3,395,066
Fee Simple Fee Simple Fee Simple Fee Simple
Cash to the Seller Cash to the Seller Cash to the Seller Cash to the Seller
July 1, 2020 May 22, 2018 February 9, 2018
$36,695 $60,122 $21,170 $39,898
0.8 Miles SE 1.7 Miles SE 0.8 Miles E 3.0 Miles NE
Comp No. 4
Virginia Fryman
Chester Properties
Limited, a Texas
limited Partnership
Brenda Bradford
Head, Beverly
Bradford Fletcher,
John M. Bradford,
and Melissa Bradford
Williams
Foster Real Estate,
Ltd.
Subject Comp No. 1 Comp No. 2 Comp No. 3
N/A
US Trinity Holdings,
LLC, a Texas limited
liability company
Mar-Properties,
LTD., a Texas limited
partnership
Deeper Life Bible
Church, Inc.
Under Contract
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.16
LAND SALES ANALYSIS - REMAINDER ECONOMIC UNIT 2
Elements of comparison are the characteristics of properties and transactions that cause the prices paid
for real estate to vary. The array of data suggests possible adjustments for various characteristics of each
transaction in comparison with the subject site. The Sales have been compared to the subject for dissimilar
characteristics and adjustments are made on a price per unit basis. Following is a summary table of the
comparable land sales.
Real 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.
Financing Terms
All of the sales were consummated with the sellers effectively receiving cash in exchange for their
consideration in the property and no adjustments were made for advantageous seller financing.
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 were reported to be arm's-length sales
and did not involve any unusual conditions of sale. Thus, no adjustments are necessary for this category.
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
Sales
Sale Location Date Size Flood Sales Price/
No.(Address)of Sale (Acres)Utilities Topography Zoning Shape Plain Price Acre
1 90.6130 All Available Level (HI) Heavy Industrial Irregular 23% FW 8% FP $3,325,000 $36,695
2 7/1/20 37.4240 All Available Level (HI) Heavy Industrial Rectangular $2,250,000 $60,122
3 5/22/18 77.9400 All Available Level (LI) Light Industrial Near Rectangular 23% FW 5% FP $1,650,000 $21,170
4 2/9/18 50.9800 All Available Level Irregular None $2,034,000 $39,898
Subject:-151.0589 All Available Level Rectangular None --
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
N Line of FM 1173, W of I-35, Denton,
Denton County, Texas
S Line of Jim Christal Rd, W of S Masch
Branch Rd, Denton, Denton County, Texas
N Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
(RCC-N) Reg Center
Comm Neighborhood
Public Facilities (PF) &
Heavy Industrial (HI)
~10% 100, ~5%
500, ~20% FW
Under
Contract
Summary of
Comparable Land Sales
S Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.17
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 adjustments for property rights conveyed, financing, and conditions
of sale have been made. 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/Unit for each comparable which has been adjusted for the other
transactional adjustments. The % Physical Adjustment column indicates the total adjustments made for all
physical characteristics (location, size, corner, utilities, topography zoning, floodplain, etc.) as shown on
Page SCA 5.16. The Adjusted Price/Unit is calculated by applying the % Physical Adjustment for each sale
to its Price/Unit. By analyzing the comparable sales adjusted prices per unit 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.
In closely analyzing the Comparables, an upward trend is not apparent. However, after talking with market
participants, they indicate that market conditions are increasing in the area. Therefore, the Comparables
will be adjusted upwards by 5 percent per year as follows: Comparable 1 (0 percent upwards), Comparable
2 (2 percent upwards), Comparable 3 (12 percent upwards), and Comparable 4 (14 percent upwards). This
is subject to the COVID-19 statement discussed previously in this report. Therefore, in our opinion, the
market conditions adjustments are considered reasonable.
Location
Location is considered to be one of the most important characteristics of real estate; therefore, the location
of the Comparables is the first of the physical characteristics to be considered. The following adjustments
have been made based upon our professional opinion and experience. The subject property is located at
the southeast corner of SL 288 and Jim Christal Road in Denton County, Texas. Comparables 1 and 3 have
fairly similar locations for industrial development when compared to the subject and no adjustments will be
made. Comparable 2 is located in a superior industrial development within close proximity to the Denton
Enterprise Airport. Therefore, Comparable 1 will be adjusted downward 10 percent for location. Comparable
Comparable Date Unadjusted Physical %Adjusted
Number of Sale Price/Acre*Adjustment Price/Acre
Comparable 1 Under Contract $36,695 21%$44,401
Comparable 2 July 1, 2020 $60,122 -5%$57,116
Comparable 3 May 22, 2018 $21,170 20%$25,404
Comparable 4 February 9, 2018 $39,898 -10%$35,908
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.18
4 is located in an inferior area for industrial development north of US 380. However, this Comparable is
located in close proximity to I-35 and has superior access and exposure than the subject. Therefore,
Comparable 4 will not be adjusted.
Size
Remainder Economic Unit 2 totals 151.0589 acres. The Comparables range in size from 37.4240 to
90.6130 acres. Typically, smaller tracts sell for more per acre than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Therefore,
Comparable 1 (90.6130 acres) and Comparable 3 (77.9400 acres), which are slightly smaller in size
compared to the subject property, will be adjusted downward 5 percent. Comparable 2 (37.4240 acres) and
Comparable 4 (50.9800 acres) are smaller in size than the subject property and will be adjusted downward
10 percent.
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.
Additionally, the presence of a corner influences larger residential tracts as well given the increased
exposure and access a corner provides. The remainder subject property is located on a corner.
Comparables 1, 3, and 4 are not located on a corner and will be adjusted upward 10 percent. Comparable
2 benefits from the presence of a corner and will not be adjusted.
Utilities
The subject property has all utilities available. All of the Comparables also reportedly had all utilities
available and no adjustments will be made.
Topography
This adjustment takes into consideration the topography (terrain) of the subject property and how
desirable/developable the site is. The topography of the subject tract is considered to be level. The
topography of the site should not limit the use of the property provided proper site work is undertaken. All
of the Comparables have fairly similar topographical considerations, and no adjustments will be made.
Zoning
The zoning a property possesses dictates the legally permissible use(s) to which it can be developed.
Consequently, the value of a property can be significantly influenced by its zoning classification. The subject
property is zoned Planned Facilities (PF) and Heavy Industrial (HI) by the City of Denton and is subject to
the City of Denton’s zoning ordinance. According to Hayley Zagurski, a representative for the City of Denton
Planning office, the Public Facilities designation “in most instances was applied to land owned either by the
City or another governmental or quasi-governmental entity such as Denton ISD. It is possible that property
zoned PF could be owned by another entity or sold, though, and in those instances the proposed rezoning
would be weighed against the criteria for approval. One of the most important criteria is consistency with
the comprehensive plan, including the Future Land Use Map.” Additionally, according to Hayley Zagurski,
rezoning requests are analyzed based upon several factors, including compatibility with zoning and use of
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.19
surrounding properties and the City's comprehensive plan. The subject has a future land use designation
of Industrial Commerce which, allows for several industrial uses. Additionally, a zoning change with a
municipality would involve filing fees, public hearings, and other city planning processes that would further
increase the potential development costs for the subject property. Therefore, Comparables 1, 2, and 3 are
considered slightly superior to the subject property due to these properties already having an industrial
zoning in place at the time of purchase, and they would not have these potential administrative costs
associated with a zoning change. Therefore, Comparables 1, 2, and 3 will be adjusted downward 5 percent
for zoning. Comparable 4 has a superior zoning to Comparables 1, 2, and 3, and will be adjusted downward
10 percent.
Shape
The subject is considered irregular in shape and considered fairly typical in the market. All of the
Comparables are also irregular in shape and configuration; therefore, they will not be adjusted.
Floodplain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year
floodplain. Approximately 11 percent (~19.0 acres) of the subject property lies within the 100-year floodplain
and approximately 6% (~10.0 acres) of the subject property lies within the regulatory floodway. Additionally,
the portion of the subject property that lies within the 100-year floodplain and regulatory floodway will be
addressed within the reconciliation. All of the Comparables are located within the 100-year floodplain. To
extract the appropriate adjustment for floodplain, paired sales analysis for several floodplain sales identified
in the North Texas region have been displayed in the following table. These floodplain sales are correlated
with a very similar non-floodplain 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%
Indicated Adjustment:-65.9%
Flood Plain Paired Comparison #1
% 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%
Indicated Adjustment:-41.2%
Flood Plain Paired Comparison #2
1This non-flood sale has been adjusted downward 10 percent for size.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.20
These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of
approximately -56 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. Furthermore
concluding toward the upper end of the range, a -75 percent adjustment will be utilized for the difference in
the value of land located within the floodway, compared to land that is not located within a flood plain. Given
that approximately 8 percent of Comparable 1 is encumbered by the 100-year flood plain and approximately
23 percent is encumbered by the floodway, an upward adjustment of 21 percent (8% of 50% = 4.0%) +
(23% of 75% = 17.25%) will be applied. Given that approximately 10 percent of Comparable 2 is
% 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%
Indicated Adjustment:-23.4%
Flood Plain Paired Comparison #3
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.
% 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%
Indicated Adjustment:-91.6%
Flood Plain Paired Comparison #4
% 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%
Indicated Adjustment:-47.8%
Flood Plain Paired Comparison #5
% 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%
Indicated Adjustment:-63.0%
Flood Plain Paired Comparison #6
% 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%
Indicated Adjustment:-56.7%
Flood Plain Paired Comparison #7
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.21
encumbered by the 100-year flood plain and 20 percent is encumbered by the floodway, an upward
adjustment of 20 percent (10% of 50% = 5.0%) + (20% of 75% = 15.0%) will be applied to Comparable 2.
Given that approximately 5 percent of Comparable 3 is encumbered by the 100-year flood plain and 23
percent is encumbered by the floodway, an upward adjustment of 20 percent (5% of 50% = 2.5%) + (23%
of 75% = 17.25%) will be applied to Comparable 3. None of Comparable 4 is located in the floodplain or
floodway, and no adjustments will be applied.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.22
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $45,000 per acre is considered to be
reasonable. Furthermore, approximately 11 percent (~19.0 acres) of the subject property lies within the
100-year floodplain and approximately 6% (~10.0 acres) of the subject property lies within the regulatory
floodway. As previously mentioned, a -50 percent adjustment will be utilized for the difference in the value
of land located within the 100-year floodplain, compared to land that is not located within a floodplain. This
results in a market value opinion of $22,500 per acre ($45,000 per acre x 50% = $22,500 per acre) for the
portions of the subject property located within the 100-year floodplain. Furthermore, a -75 percent
adjustment will be utilized for the difference in the value of land located within the regulatory floodway,
compared to land that is not located within the regulatory floodway. This results in a market value opinion
of $11,250 per acre ($45,000 per acre x 25% = $11,250 per acre) for the portions of the subject property
located within the regulatory floodway.
Additionally, as previously discussed, approximately 0.3254 acres (based upon measurements taken via
Google Earth), of Remainder Economic Unit 2 lies within a street easement. This street easement will be
valued based upon apparent rights remaining to the landowner. In order to estimate the value of the
remaining rights of this portion of the subject, the following Easement Valuation Matrix will be used as a
guide for allocating value of the fee simple interest between the landowner and Denton County for this
street easement. This exhibit was provided by an article entitled “Easement Valuation” by Donald Sherwood,
SR/WA, published in the November/December 2014 edition of Right of Way Magazine.
$/Acre All Data
Range $28,452 -$58,258 $40,936 -$44,401 -
Mean (Average)
Standard Deviation $2,450
Data Without Data with Absolute
All of the Comparables had a mean of $43,012 per acre,while the mean of data without high and low
extremes is $42,669 per acre,and the data with the least absolute adjustments (<=50%)had a mean of
$47,865 per acre.
$40,936 $58,258
$43,012 $42,669 $47,865
$12,257 $9,166
High and Low Extremes Adjustments <50%
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.23
The portion of Remainder Economic Unit 2 that is located within the street easement is approximately
0.3254 acres. The existing street easement grants virtually no use rights to the property owner outside of
being able to include this area in the setback and land area requirements. Therefore, a discount at the
upper end of the range listed in the matrix would be necessary as there are virtually no other conceivable
uses remaining for the landowner. This easement is estimated to encumber 90 percent of the use
rights/value of this portion of the tract. As such, the remaining 10 percent of the use rights/fee simple value
of this portion of the tract remains with the current landowner. Therefore, an adjustment of 90 percent will
be utilized for the difference in the value of land located within the street easement, compared to land that
is not located within the street easement. This results in a market value opinion of $4,500 per acre ($45,000
per acre x (1-90%) = $4,500 per acre) for the portion of the subject property located within the street
easement. Additionally, portions of the subject property are located within the floodplain and are
encumbered by this street easement.
Thus, the total market value opinion of Remainder Economic Unit 2 property, as of the effective date of the
appraisal, is calculated as follows:
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.24
19.0000 =$427,500
=$112,500@
AC @
$6,019,472
10.0000
Total Land Value 151.0589 AC
AC
AC @ $45,000 Per Acre
$22,500 Per Acre
$11,250 Per AcreEU 2 - Rmndr Land Value in
Fee (In FW)
EU 2 - Rmndr Land Value in
Fee (In 100 Yr FP)
EU 2 - Rmndr Land Value in
Fee (Outside FP & FW)121.7335 =
$1,464EU 2 - Rmndr Land Value in
St Esmt (Outside FP & FW)0.3254 AC @ $4,500 Per Acre =
$5,478,008
Form ROW-A-5 Rev. 8/11 T
CA 5.25
COST APPROACH
Whole: Part to be Acquired: Remainder After:
Estimated Replacement/ Reproduction Cost
Improvement Number of sq ft $ per sq ft Cost New <Depreciation
>
Value Main Building
$ Other
$ Contributory Value of the Buildings $ Accessory Improvements
$
$
$ Contributory Value of the Accessory Improvements $ Site Improvements Paving
$ Fencing (l.f.)
$ Landscaping
$ Other
$
$
$
$
$
$ Contributory Value of the Site Improvements $ Contributory Value of all Improvements $ Land Value
$ Estimated Value by Cost Approach $
The Cost Approach as improved is not applicable and is excluded.
Form ROW-A-5 Rev. 8/11 T
SCA 5.26
SALES COMPARISON APPROACH
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID Representative Comparable Sales Subject Comp. No. Comp. No. Comp. No.
Grantor
Grantee
Date of Sale
Unit Price
Relative Location
Financing
Conditions of Sale
Market Conditions
Physical Characteristics
Indicated Unit Value
$
$
$
Estimated Unit Value
The Sales Comparison Approach as improved is not applicable and is excluded.
Form ROW-A-5 Rev. 8/11 T
IA 5.27
INCOME APPROACH
Whole: Part to be Acquired: Remainder After:
Potential Gross Income ........................... $
Vacancy
%
$
Effective Gross Income
..........................................................................................
$
Expenses:
Fixed Taxes ................................
$
Insurance ..........................
$
Variable Management .....................
$
Other
$
$
$
Total Expenses
..........................................................................................
$
Net Operating Income
..........................................................................................
$
Income Capitalized @
%
.................................................
$
Plus: Value of Excess Land (if any)
.................................................
$
$
Estimated Value by Income Approach
...............................................
$
The Income Approach is not applicable and is excluded.
SECTION SIX
Form ROW-A-5 Rev. 8/11 T
Page 6.0
EXPLANATION OF DAMAGES (if any): The acquisition is not considered to negatively impact the potential use of the site.
Additionally, the acquisition does not limit the use or access of the remainder tract. Therefore, the highest and best use of Remainder
Economic Unit 1 and Remainder Economic Unit 2 is not negatively impacted by the acquisition.
COMPENSATION SUMMARY
*It should be noted that the remainder enhancement is not deducted against the value of the part acquired or against the cost to cure.
WHOLE PROPERTY:
The market value of the whole property is……………………………….....……………….....$11,801,830
The value of the remainder immediately before the taking is……………………….....…...……$10,779,624
PART TO BE ACQUIRED:
Considered as severed land, the fee simple estate to the part being acquired
for highway purposes (less oil, gas and sulphur and subject to existing easements,
if any which are not to be extinguished) is……………………………………………………….....…...……………...…$1,022,206
REMAINING PROPERTY:
Considering the uses to which the part taken is to be subjected
to, the market value of the remainder immediately after
on or off the remaining property affects the market value of the remaining
the acquisition is…………………………………………………………………….....………$12,438,032
NET DAMAGES OR ENHANCEMENTS, if any………………………………………………….....…………………………($1,658,408)*
ACCESS:
The lack of any access denial or the material impairment of direct access
TOTAL COMPENSATION………………………………………………………………………………….....………………..$1,022,206
property in the sum of………………………………………………………….....…………..$0
COST TO CURE:………………………………………………………………...………….....……...…$0
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.1
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) 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.
8) The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
9) Katherine E. Braden provided significant real property appraisal assistance in the preparation of this
appraisal report to the person(s) signing this certification.
10) As of the date of this report Ben Cervenka, Jr., MAI, Mitchell B. Todd, MAI and Michael A. Keane,
MAI have completed the continuing education program for Designated Members of The Appraisal
Institute.
11) 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.
12) The appraisal report was not based on a requested minimum valuation, a specific valuation, or the
approval of a loan.
13) 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.
14) Todd Property Advisors, and Ben Cervenka, Jr., MAI, Mitchell B. Todd, MAI, Michael A. Keane, MAI,
and Katherine E. Braden have rendered no services as an appraiser or in any other capacity
regarding this property within the three-year period immediately preceding acceptance of this
assignment.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.2
Appraisal Institute General Demonstration of Knowledge - Capstone Program
Admissions Department
March 14, 2018
Page Two
Based on the data rendered via a physical inspection of the subject, as well as other pertinent
information, it is my opinion that the market value of the fee simple interest in the subject
property, as of March 6, 2018, is:
“As Is" Market Value:
ONE MILLION SEVEN HUNDRED FORTY THOUSAND DOLLARS
($1,740,000)
Such opinion is subject to the general assumptions and limiting conditions found on page
?????. This letter must remain attached to the report, which contains ????? pages, in order for
the value opinion set forth to be considered valid. Particulars and supporting data are provided
in the accompanying report.
Respectfully submitted,
Michael A. Keane
State Certification #TX-1380384-G
michaelakeane@me.com
15) Ben Cervenka, Jr., MAI, Mitchell B. Todd, MAI, Michael A. Keane, MAI and Katherine E. Braden
made a personal inspection of the property that is the subject of this report on October 21, 2020, and
other dates.
16) Hypothetical Condition: According to the 2020-2021 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.” The remainder property after the acquisition has been appraised under the
hypothetical condition that the public project is complete and in place and the part acquired
has been put to the use for which it was acquired as of the date of appraisal. This hypothetical
condition is consistent in keeping with previously established public policy. The use of this
hypothetical condition may affect the results of this assignment.
Respectfully submitted,
Ben Cervenka Jr., MAI Michael A. Keane, MAI
State Certification #TX-1320341-G Senior Vice President
benny02@flash.net State Certification #TX-1380384-G
michael@toddpa.com
___________________________
Mitchell B. Todd, MAI
President
State Certification #TX-1323514-G
mitchell@toddpa.com
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.3
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 surveys 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.
Page 6.4
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) Hypothetical Condition: According to the 2020-2021 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.” The remainder
property after the acquisition has been appraised under the hypothetical condition that the public
project is complete and in place and the part acquired has been put to the use for which it was acquired
as of the date of appraisal. This hypothetical condition is consistent in keeping with previously
established public policy. The use of this hypothetical condition may affect the results of this
assignment.
ADDENDA
QUALIFICATIONS OF BEN CERVENKA, JR., MAI
Affiliations:
MAI - Member of Appraisal Institute (#8612)
State Certified General Real Estate Appraiser (Certificate #TX-1320341-G)
Real Estate Broker: Texas License #369107
Educational Background:
M. Agr. Degree in Land Economics and Real Estate - Texas A&M University
B.S. Degree Agronomy - Texas A&M University
Real Estate Courses Completed:
Land Economics - TAMU
Land-Oil and Gas Law - TAMU
Rural Real Estate Appraisal & Organization - TAMU
Real Estate Development Analysis - TAMU
Real Estate Market Development Research Theory - TAMU
Analysis of Real Estate Decisions - TAMU
Real Property Valuation - TAMU
Appraisal of Land and Public Utilities - TAMU
Construction Document Interpretation - TAMU
Appraisal Institute Course - Standards of Professional Practice
Appraisal Institute Course - Real Estate Appraisal Principles (1A1)
Appraisal Institute Course - Basic Valuation Procedures (1A2)
Appraisal Institute Course - Cap. Theory and Techniques (1BA and 1BB)
Appraisal Institute Course - Case Studies (2-1)
Appraisal Institute Course - Valuation Analysis and Report Writing (2-2)
Recent CEC Courses - 25th Annual Outlook for Texas Land Markets (4/15); Business Practice & Ethics
(5/15); Online Cool Tools: New Technology for Real Estate Appraisers (10/15); 26th Annual Outlook for Texas
Land Markets (4/16); 27th Annual Outlook for Texas Land Markets (4/17); 2018-2019 National USPAP Update
(2/18); 28th Annual Outlook for Texas Land Markets (4/18); 29th Annual Outlook for Texas Land Markets (4/19)
Employment/Experience:
President/owner of Cervenka & Associates, Inc.
Specializing in real estate appraisal from March 1986 to present. I have testified as an expert
witness in eminent domain and bankruptcy proceedings in Harris, Fort Bend, Montgomery, Victoria,
DeWitt, Hill, Bell, Anderson, Austin, Henderson, Falls, Grimes, Polk, Burleson, Wharton, Matagorda,
and McLennan Counties. My eminent domain experience includes both property owners and
condemning authorities. I have served as Special Commissioner in eminent domain hearings for Harris
County Civil Courts at Law. My real estate appraisal experience includes the following types:
Multi-family Industrial Single-family
Retail Subdivision Commercial Development
Office Raw Land Agricultural/Recreational
Certification:
I am currently certified under the continuing education program of the Appraisal Institute and the
State of Texas.
Biographical Background:
Born in El Campo, Texas. Completed primary and secondary education in the El Campo I.S.D.,
May 1979. Received B.S. Degree from Texas A&M University in December of 1983 and M. Agr.
Degree in December of 1985. Residence is in Bellaire, Texas.
Douglas E. Oldmixon
Commissioner
Texas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification BoardTexas Appraiser Licensing and Certification Board
P.O. Box 12188 Austin, Texas 78711-2188
Certified General Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required by the
Texas Appraiser Licensing and Certification Act, Texas Occupations Code,
Chapter 1103, is authorized to use this title, Certified General Real Estate
Appraiser.
Number:
Issued:
1320341
Expires:03/31/2021
Appraiser:
01/18/2019
BEN JOHN CERVENKA JR
TX G
QUALIFICATIONS OF MITCHELL B. TODD, MAI
─────────────────── • ───────────────────
EXPERIENCE
1/94 to Present President – Todd Property Advisors, Real Property Analysts, Inc.; Dallas, Texas
7/92 to 1/94 Vice President - Beer-Wells-Vaughan, Commercial Property Analysts; Dallas, Texas
6/86 to 7/92 Vice President - Noyd & O'Connell, Inc.; Real Estate Appraisers & Consultants; Dallas,
Texas (2/90-7/92); Houston, Texas (6/86-1/90)
During Mr. Todd's tenure as a real estate appraiser, he has prepared numerous valuations on a variety of high profile and
complex income producing real estate developments. Additionally, Mr. Todd has been involved in the valuation of
numerous single family and multi-family residential properties during his career. These assignments required analytical,
communication, and problem-solving skills which Mr. Todd has continually enhanced since his inception into the
profession. During the last several years, as the Dallas/Fort Worth residential market has expanded and mortgage interest
rates have been at attractive levels, Mr. Todd has gained significant experience in the appraisal of single family residential
properties for the purpose of obtaining mortgage financing.
Some of the more complex assignments in which Mr. Todd has completed appraisals involve numerous parcels
assembled by the City of Dallas for the American Airlines Center and the new performing arts center in the Arts District;
Reunion Arena and adjacent parking facilities, The Grand Hotel and the Mercantile Complex in the Dallas CBD; the
proposed Bank One Building in the Fort Worth CBD; the Hughes Aircraft Facility in Las Cruces, New Mexico; the Stephens
Graphics Manufacturing Facility in Dallas, Texas; the Radisson Inn Tulsa Airport in Tulsa, Oklahoma, the Trophy Club
Development (all remaining lots, acreage, and disputed acreage) of Denton County, Texas; the Eldorado Subdivision (all
remaining lots and acreage) in McKinney, Texas; the Stonebriar Community Church in Frisco, Texas; the Trinity Terrace
Retirement Center in Fort Worth, Texas; the San Antonio Savings Association Headquarters Building in San Antonio,
Texas and numerous portfolios of credit tenant retail projects, office buildings, charter schools, full service car washes and
extended stay lodging facilities across Texas and the United States.
PROFESSIONAL LICENSE AND AFFILIATIONS
Designated member of The Appraisal Institute - MAI #9379.
State Certified General Real Estate Appraiser
Texas Certificate # TX-1323514-G
Oklahoma Certificate # 1287CGA
Arkansas Certificate # CG3379
Registered Property Tax Consultant, State of Texas (Registration #00002555).
Licensed Broker by the Texas Real Estate Commission (License #0364803)
Member - Society of Texas A&M Real Estate Professionals
EDUCATION
Master's Degree - Land Economics and Real Estate, Texas A&M University, 1986.
Bachelor of Science Degree - Agricultural Economics, Texas A&M University, 1984.
The Land Economics and Real Estate curriculum at Texas A&M University is one of only three degree programs in the
United States which have been sanctioned by The Appraisal Institute for post-graduate studies in commercial real estate
appraisal. During his pursuit of the Master's degree, Mr. Todd served as a graduate teaching assistant for several
undergraduate courses, including real estate appraisal curriculum. Mr. Todd received the Master's degree in May 1986.
Prior to his post-graduate studies, Mr. Todd received a Bachelor of Science Degree in December 1984, graduating with
Magna Cum Laude honors.
The Appraisal Institute courses completed by Mr. Todd include: Standards of Professional Appraisal Practice, Principles of
Appraisal, Basic Valuation, Capitalization Theory - Part A, Capitalization Theory - Part B, Case Studies in Real Estate
Valuation, Report Writing and Valuation Analysis, and received a passing grade on both the Comprehensive Examination
and the Demonstration Report. Mr. Todd was awarded the designation of MAI in May 1992. The Appraisal Institute
conducts a program of continuing professional education for its designated members. MAI and SRA members who meet
the minimum standards of the program are awarded periodic educational certification. Mr. Todd is currently certified under
this program. Mr. Todd serves on the Region 8 Ethics and Counseling Regional Panel of the Appraisal Institute.
Other college level real estate courses and seminars completed by Mr. Todd include: Real Estate Development Analysis,
Real Property Valuation, Building Construction Practices, Rural Real Estate Appraisal, Understanding Limited Appraisals
and Reporting Options, ASB Informational Meeting, and Texas Property Tax Law.
Appraiser: Mitchell Brian Todd
License #: TX 1323514 G License Expires: 08/31/2022
Chelsea Buchholtz
Commissioner
Certified General
Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required
by the Texas Appraiser Licensing and Certification Act, Occupations
Code, Chapter 1103, authorization is granted to use this title:
Certified General Real Estate Appraiser
For additional information or to file a complaint please contact TALCB
at www.talcb.texas.gov.
MITCHELL BRIAN TODD6849 ELM STREETFRISCO, TX 75034
QUALIFICATIONS OF MICHAEL A. KEANE, MAI
─────────────────── • ───────────────────
EXPERIENCE
8/15 – Present Senior Vice President – Todd Property Advisors, Real Property Analysts, Inc.;
Frisco, Texas
10/12 – 8/15 Senior Appraiser – Todd Property Advisors, Real Property Analysts, Inc.; Frisco,
Texas
10/09 – 10/12 Appraisal Associate – Beer-Wells-Todd, Real Property Analysts, Inc.; Frisco,
Texas
During Michael's tenure as a real estate appraiser and appraisal research assistant, he has assisted in
the preparation and market research for numerous valuations on a variety of commercial real estate
developments. These properties consisted of various single and multiple tenant industrial, general office,
medical office, and retail facilities as well as residential subdivision developments, multifamily
developments, and user specific and special purpose properties such as automotive repair/service, full
and self-serve car wash facilities, airplane hangars, fixed base operations, flight schools, marinas, ice
skating rinks, and bill board properties. Michael has also appraised properties for eminent domain/partial
taking purposes.
Michael’s responsibilities involve performing property inspections as well as analyzing market trends,
collecting and analyzing market data, analyzing subject property income and expense information,
estimating reproduction costs and depreciation as well as utilizing all aforementioned data to perform real
property appraisals.
PROFESSIONAL LICENSE AND AFFILIATIONS
Designated Member of The Appraisal Institute - MAI
State Certified General Real Estate Appraiser
Texas Certificate # TX-1380384-G
EDUCATION
Master’s Degree - Land Economics and Real Estate - Texas A&M University, 2008
Bachelor of Science Degree – Sport Management - Texas A&M University, 2007.
Minor in Business Administration
The Land Economics and Real Estate curriculum at Texas A&M University is one of only three degree
programs in the United States which have been sanctioned by The Appraisal Institute for post-graduate
studies in commercial real estate appraisal. During his pursuit of the Master's degree, Michael
completed various real estate and financial oriented courses including Real Property Valuation I & II,
Real Property Finance, Real Estate Development, Financing Real Estate Investments, Money and
Capital Markets, and Commercial Real Estate Law. Michael received the Master's degree in December
2008. Prior to his post-graduate studies, Michael received a Bachelor of Science Degree in August
2007.
Texas Appraiser Licensing and Certification Board certified courses completed by Michael include:
Appraisal Principles, Appraisal Procedures, Sales Comparison Approach, Income Approach Parts 1 & 2,
Finance Statistics and Valuation Modeling, Site Valuation and Cost Approach, Business Practices and
Ethics, and Uniform Standards of Professional Appraisal Practice receiving a passing grade on all course
examinations.
Appraiser: MICHAEL ANDREW KEANE
License #: TX 1380384 G License Expires: 11/30/2022
Chelsea Buchholtz
Commissioner
Certified General
Real Estate Appraiser
Having provided satisfactory evidence of the qualifications required
by the Texas Appraiser Licensing and Certification Act, Occupations
Code, Chapter 1103, authorization is granted to use this title:
Certified General Real Estate Appraiser
For additional information or to file a complaint please contact TALCB
at www.talcb.texas.gov.
MICHAEL ANDREW KEANE712 S WEATHERRED DRRICHARDSON, TX 75080
Form ROW-A-PAC
(Rev. 06/11) Page 1 of 2
PRE-APPRAISAL CONTACT WITH PROPERTY OWNERS
1. County: Denton 2. ROW CSJ No.: 2250-02-024 3. Parcel No.: 13
4. District: Dallas
5.Whole Taking Partial Taking x 6. Other:
7. Address of Property: 8161 Jim Christal Rd, Denton, Denton County, Texas
8. Property Owner: City of Denton 9. Phone:
10. Occupant’s Name:11. Phone:
12. Type of Improvements:
13. Hazardous Materials:
14. Underground Improvements:
15. Fence Ownership (100% & Partnership Interests):
16. Use of Improvements:
17.Number of Lots Under Common Usage and Location Relative to Subject:
18. Leases:
19. Liens:
20. Contract of Sale:
21. Are there any advertising signs or billboards on the property? Yes No
If YES, answer questions on page 2. If NO, disregard page 2 and do not attach.
22. Describe ownership and lease terms:
23. Remarks:
Date By
X
December 31, 2020 Compiled by Ben Cervenka, Jr., MAI, based on information
available, not signed by property owner
Form ROW-A-PAC (Rev. 06/11) Page 2 of 2
The following applies ONLY if the answer to #21 on page 1 is YES:
1. If an advertising sign is located within the right of way being acquired (including the overhead portion
encroaching out over the right of way, even when the base is outside of the right of way:
• Is the sign owned by the landowner? Yes No
• Is the sign used only to advertise a business being conducted on the property? Yes No
2. If the sign is not owned by the landowner, obtain the following information and detail here:
• By what authority or authorization is the sign allowed upon the property?
• If authorized by written agreement, obtain a copy of such agreement (lease agreement usually). If
unable to obtain a copy of a written agreement, obtain as much information as possible regarding any
agreement authorizing the sign (such as whether there is in fact a written agreement, even though a
copy may not be obtained from the landowner or the sign owner, how long the sign has been on the
property, and when does the current agreement expire).
• Check the sign structure for the presence of a permit number and verify with the District Sign personnel to determine if the sign at this location has a current valid sign permit.
• If the sign is located within a municipality that is certified by TXDOT to issue its own sign permits,
such verification should be made with the municipality.
• If the parcel is only a partial acquisition, so there is a remainder, is the property owner willing to allow
the sign owner to move and relocate the sign onto the remainder? Yes No
6849 Elm Street▲ Frisco, Texas 75034 ▲ www.ToddPropertyAdvisors.com
TELEPHONE: (214) 297-9000 ▲ FAX: (469) 365-9127 ▲ E-MAIL: mitchell@toddpa.com
October 9, 2020
City of Denton
215 E Mckinney St
Denton, Texas 76201
Re: Proposed inspection of the property located at 8161 Jim Christal Rd, Denton, Denton County, Texas.
To Whom It May Concern:
The purpose of this letter is to inform you of our proposed appraisal inspection of the referenced property, owned by City
of Denton. We have been engaged by the Texas Department of Transportation (TxDOT) to appraise the property and
proposed acquisition related to the SL 288 project. We are planning to inspect several properties in this area during the
week of October 19, 2020 and would like the opportunity to meet with you and inspect your property. This is an opportunity
for you to deliver to us any information you feel is important, or you feel will help us better understand the value or
uniqueness of the property. The following is a list of the items we would like to obtain for this property:
1) Sales history of the property for the last 5 years (Please provide the sales price and details for any portion
of the property which has been purchased).
2) List of improvements and/or renovations made to the property recently and the cost of each item.
3) Listing details if the property is available for sale.
4) Any leases that encumber the property and/or rent roll.
5) Historical profit and loss statements if the property is leased.
6) Current occupancy rate.
7) Any site plan of the property and/or floor plan of the building.
Please let us know as soon as possible if you would like to accompany us on our property inspection and if you can
provide the requested documents. We have enclosed a copy of the survey and field notes regarding the proposed
acquisition. Additionally, we have enclosed a property owner information sheet. Please fill out this form and return it
to us in the envelope included. If you wish to accompany us on our property inspection or have any questions, please call my associate, Katherine E.
Braden, at (214) 297-9000 ext. 1011 or send an email to katie@toddpa.com if you have any questions. Please reference
Parcel #13 when responding to this letter.
Respectfully,
Ben Cervenka, Jr., MAI
President
Page 1 of 2
FIVE YEAR SALES DATA
THE STATE OF TEXAS
COUNTY OF DENTON
RCSJ: 2250-02-024
Project/Highway: SL 288
Project Limits: US380 W Denton-IH35@Loop288
Parcel: 13
We certify that we have searched the records in the office of the County Clerk of DENTON County, Texas, since
September 17, 2015 for deeds which affect title to the following described property, to wit:
SEE EXHIBIT “A” ATTACHED HERETO AND MADE A PART HEREOF
and that we find the following deed(s) filed for record:
Deed Type: Special Warranty Deed
Grantors: Eagle Farms, Inc. and John Porter Auto Sales, Inc.
Grantees: City of Denton
Recorded: November 14, 2016
Recording No: (book) 2016-143882, of Official Records
“Consideration shown is that indicated in the public records.”
We certify that the above and foregoing is a true and correct showing of the deeds found which affect title to the
above described property, but it is expressly understood that the undersigned assumes no financial liability for this
showing.
WITNESS the signature of the undersigned at Irving, Texas, on September 28, 2020.
WFG National Title Company of Texas
________________________________
Roland Pelt
Page 2 of 2
EXHIBIT "A"
County: Denton
Highway: SL 288
STA. 303+52.45 to STA. 342+93.59
R.C.S.J: 2250-02-024
Description for Parcel 13
(Aug. 2020, Rev. Dec. 2020))
BEING, a 1,401,852 square foot (32.1821 acre) tract of land located in the Moses H. Davis Survey, Abstract No.
377, the William Wilburn Survey, Abstract No. 1419, and the Myers & Brunnett Survey, Abstract No. 1699, City of
Denton, Denton County, Texas, and being part of a called 340.469 acre tract of land described in Special Warranty
Deed to the City of Denton recorded in Instrument No. 2016-143882 of the Official Real Property Records of
Denton County, Texas (ORPRDCT); said 32.1821 acre tract being more particularly described by metes and
bounds as follows:
See Sch C for Field Notes
NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement
in the above legal description of the area or quantity of land is not a representation that such area or quantity is
correct, but is made only for information and/or identification purposes and does not override Item 2 of Schedule B
hereof.
12/31/2020 Denton, TX Development Code
1/4
A.
B.
3.5.3 - HI - Heavy Industrial.
Purpose. The HI district is intended to provide locations suitable for development and operation
of indoor and outdoor industrial, distribution, and manufacturing uses. The HI district applies to
areas primarily west of Highway I-35 W near the Denton Enterprise Airport that supports the most
intense industrial uses and may require access to major rail, truck, or aircraft shipping facilities.
The HI district applies to areas that can accommodate the intensity of uses while also being
sensitive to the adjacent built and natural context.
Figure 3.5-C: HI District Dimensional Standards
HI District Dimensional Standards.
Table 3.5-C: HI District Dimensional Standards
Dimensional Standards Additional Standards
Lot Dimensions (minimum)
A Lot area 20,000
sq. ft.
3.7.2A: Minimum Lot Dimensions
12/31/2020 Denton, TX Development Code
2/4
A.
B Lot width 100
feet
C Lot depth 200
feet
Setbacks (Minimum)
D Front yard 10 feet 3.7.3: Setbacks
E Side yard 20 feet
[1]
F Rear yard 20 feet
[1]
Other Standards
G Building height (maximum)75 feet 3.7.5: Building Height
Building coverage (maximum)85
percent
3.7.6: Building Coverage
Notes:
[1] When adjacent to a zoning district in the Residential category pursuant to Table 3.1-A:
Zoning District Designations, the minimum setback shall be 200 feet.
3.5.4 - PF - Public Facilities.
Purpose. The PF district is intended to provide adequate lands for public and quasi-public
community uses and services, including but not limited to fire stations, schools, libraries,
community centers, hospitals, civic buildings, open space, parks, utilities, and other public-related
facilities.
12/31/2020 Denton, TX Development Code
3/4
B.
Figure 3.5-D: PF District Dimensional Standards
PF District Dimensional Standards.
Table 3.5-D: PF District Dimensional Standards
Dimensional Standards Additional Standards
Lot Dimensions (minimum)
A Lot area None 3.7.2A: Minimum Lot Dimensions
B Lot width None
C Lot depth None
Setbacks (Minimum)
D Front yard None 3.7.3: Setbacks
12/31/2020 Denton, TX Development Code
4/4
E Side yard 5 feet
[1]
F Rear yard 10 feet
[1]
Other Standards
G Building height (maximum)100
feet [1]
3.7.5: Building Height
Building coverage (maximum)90
percent
3.7.6: Building Coverage
Notes:
[1] Buildings adjacent to a Residential zoning district shall comply with the standards in
Subsection 7.10.6: Building Height in Transition Areas.