HomeMy WebLinkAboutTXDOT Appraisal P10Form ROW-A-5
(Rev. 08/11)
Page 1
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
REAL ESTATE APPRAISAL REPORT - TEXAS DEPARTMENT OF TRANSPORTATION
Address of Property: W Line of Tom Cole Rd, ~1.0 Miles S of Jim Christal Rd, Denton, Denton
County, Texas
District: Dallas
Property Owners: City of Denton, Texas, a Texas home rule municipal corporation Parcel: 10 - (P00054466)
Address of Property Owners: 215 E McKinney Street, Denton, Texas 76201 ROW CSJ: 2250-02-024
Occupant’s Name: Vacant Land 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 $921,815 as of October 21, 2020, based upon my
independent appraisal and the exercise of my professional judgment;
That on October 21, 2020, and other dates, I personally inspected in the field the property herein appraised; that I afforded City of Denton, Texas, a
Texas home rule municipal corporation, the property owner, the opportunity to accompany me at the time of the inspection (the property owner was
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
Michael A. Keane, MAI – TX-1380384-G
Certification Number
April 13, 2021
Date Reviewing Appraiser Date
Charles Stearman TX 1335388 G April 14, 2021
TABLE OF CONTENTS
Section One
Identification of the Property ......................................................................................................... 1.1
Identification of the Appraisal Problem ......................................................................................... 1.2
Date of Value Opinion ................................................................................................................... 1.2
Date of Report ............................................................................................................................... 1.2
Appraisal Report Option ................................................................................................................ 1.2
Definition of Market Value ............................................................................................................. 1.3
Intended Use/Intended User ......................................................................................................... 1.3
Statement of Prior Services Rendered ......................................................................................... 1.3
Property Rights Appraised ............................................................................................................ 1.3
Statement of Ownership ............................................................................................................... 1.4
Scope of Work .............................................................................................................................. 1.4
Covid-19 Statement ...................................................................................................................... 1.5
History of the Subject Property ..................................................................................................... 1.6
Estimate of Exposure Time ........................................................................................................... 1.6
Estimate of Marketing Time .......................................................................................................... 1.6
Project Description ........................................................................................................................ 1.7
Hypothetical Conditions ................................................................................................................ 1.9
Extraordinary Assumptions ........................................................................................................... 1.9
Section Two
Photographs of Subject Property .................................................................................................. 2.0
Regional Analysis ......................................................................................................................... 2.3
City/Neighborhood Analysis ........................................................................................................ 2.12
Site Description and Analysis ..................................................................................................... 2.20
Zoning and Other Land Use Restrictions .................................................................................... 2.32
Tax Analysis ................................................................................................................................ 2.35
Neighborhood Industrial Market Analysis ................................................................................... 2.36
Section Three
Property Valuation Summary ........................................................................................................ 3.0
Highest and Best Use Analysis – Whole Property ........................................................................ 3.1
Sales Comparison Approach ........................................................................................................ 3.4
Land Sales Presentation ............................................................................................................... 3.5
Land Sales Analysis .................................................................................................................... 3.10
Cost Approach ............................................................................................................................ 3.18
Discussion of Cost Approach – Whole Property ......................................................................... 3.19
Sales Comparison Approach ...................................................................................................... 3.20
Income Approach ........................................................................................................................ 3.21
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 .................................................. 4.2
Survey of the Proposed Fee Simple Acquisition Area .................................................................. 4.8
Section Five
Property Valuation Summary ........................................................................................................ 5.0
Highest and Best Use Analysis – Remainder Tract 1 ................................................................... 5.2
Sales Comparison Approach – Remainder Tract 1 ...................................................................... 5.5
Land Sales Analysis – Remainder Tract 1 .................................................................................... 5.6
Highest and Best Use Analysis – Remainder Tract 2 ................................................................. 5.12
Sales Comparison Approach – Remainder Tract 2 .................................................................... 5.15
Land Sales Analysis – Remainder Tract 2 .................................................................................. 5.16
Cost Approach ............................................................................................................................ 5.24
Sales Comparison Approach ...................................................................................................... 5.25
Income Approach ........................................................................................................................ 5.26
Section Six
Compensation Summary .............................................................................................................. 6.0
Cost To Cure ................................................................................................................................. 6.1
Certification ................................................................................................................................... 6.2
Assumptions and Limiting Conditions ........................................................................................... 6.4
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 west line of Tom Cole Road, approximately 1.0 miles south of Jim
Christal Road in Denton, Denton County, Texas (as of the date of appraisal, it has not been assigned a
municipal address). According to the Vesting Deed Records (2012-147183) and the survey provided by
Pacheco Koch Consulting Engineers, Inc., the subject property consists of 141.6500 acres (6,170,274
square feet) of land improved with a barn and shed with significant deferred maintenance. Furthermore,
approximately 1.8485 acres of the subject property lies within a street easement (Tom Cole Road). The
portion of the site to be acquired is a 22.1262 acre (963,819 square foot) tract for right-of-way use. The
location of the proposed acquisitions creates two remainder tracts. Additionally, according to the Railroad
Commission of Texas, natural gas gathering lines managed by Bedrock Production, LLC, 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.
Additionally, there is barbed wire and field fencing, concrete and gravel paving, and a water tower for
livestock located within the proposed right-of-way acquisition. This portion of the subject property is being
acquired for the construction of traffic lanes and shoulders on SL 288. The proposed acquisition will not
negatively affect the improvements, drainage, ingress/egress, or utility of remainder 1 (96.3189 acres) or
remainder 2 (23.2049 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 David Davis Survey, Abstract No. 356, City of Denton,
Denton County, Texas, and being a called 141.6500 acre tract of Land described in General
Warranty Deed recorded in Instrument No. 2012-147183 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: Decemeber 2020). The light purple highlighted area depicted in the aerial photograph outlines the
whole subject property, while the yellow highlighted area depicts the outline of the proposed acquisition. The green lines are the Targa Midstream
Services, LLC’s natrual gas line. These boundaries are approximations based upon our best estimates given the surveys provided.
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 (October 21, 2020).
DATE OF VALUE OPINION
The subject property was inspected on October 21, 2020, and other dates by Mitchell B. Todd, MAI, Michael
A. Keane, MAI, and Lauren N. Espey. The effective date of valuation is October 21, 2020. The appraisers
afforded the property owner the opportunity to accompany us on the appraisal inspection. The property
owner was not present at the time of inspection. Thus, the inspection was conducted from the existing ROW
of Tom Cole Road.
DATE OF REPORT
The report date of this appraisal is April 13, 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.
Gathering Line Affected
by Proposed Acquisition
Remainder Tract 1
96.3189 Acres (4,195,650 SF)
Subject Property
141.6500 Acres (6,170,274 SF)
Remainder Tract 2
23.2049 Acres (1,010,805 SF)
Acquisition Area
22.1262 Acres (963,819 SF)
Street Easement
1.8485 Acres
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.3
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, Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Lauren N. Espey 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.
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" 1 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". 2 Easement ownership is defined as “the right to use another’s land for a
stated purpose”. 3
The fee simple estate of the subject is being appraised. This ownership interest is subject to any zoning
ordinances, easements, restrictions of record and other applicable codes and ordinances of record.
1 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 90.
2 The Appraisal Institute, The Appraisal of Real Estate (Fourteenth Edition), Chicago, Illinois, 2013, page 72.
3 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 71.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.4
STATEMENT OF OWNERSHIP
According to the surveys and the Denton County Deed Records, title of the subject is vested in City of
Denton, Texas, 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 (October 21,
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.
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.
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
October 21, 2020, and other dates. The inspection was conducted by Mitchell B. Todd, MAI, Michael A.
Keane, MAI, and Lauren N. Espey, of Todd Property Advisors. The effective date of the market value
opinion is October 21, 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).
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.5
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 141.6500 acres (6,170,274 square feet) of land improved. The portion of the
site to be acquired is a 22.1262 acre (963,819 square foot) tract for right-of-way use. The location of the
proposed acquisitions creates two remainder tracts. Additionally, according to the Railroad Commission of
Texas, natural gas gathering lines managed by Bedrock Production, LLC, 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. The proposed
acquisition will not negatively affect drainage, ingress/egress, or utility of remainder 1 (96.3189 acres) or
remainder 2 (23.2049 acres). Therefore, as permitted by USPAP Standard Rule 1-2 (e)(v), only the land
and affected site improvements (barbed wire and field fencing, concrete and gravel paving, and a water
tower for livestock) 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) located within
the part to be acquired (barbed wire and field fencing, concrete and gravel paving, and a water tower for
livestock) 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. Given the existing improvements are not negatively affected by the proposed
acquisition, a Cost Approach, Income Approach, and Sales Comparison Approach as related to the
improvements are not considered relevant and have not been included within this report.
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.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.6
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, Texas, a Texas home rule municipal corporation
since December 2012. 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
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.” 4 Thus, marketing time is an estimate of the amount of time necessary to sell a
property after the date of appraisal, which differs from exposure time which is a retrospective estimate of
the amount of time necessary to achieve a sale prior to the effective date of appraisal.
4 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 140.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.7
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.
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.
Page 1.8
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 1.9
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
Form ROW-A-5 Rev. 8/11 T
Page 2.0
PHOTOGRAPHS OF SUBJECT PROPERTY
Include Each Major Improvement
Parcel No.: 10 - (P00054466) Local Address: W Line of Tom Cole Rd, ~1.0 Miles
S of Jim Christal Rd, Denton, Denton County, Texas
Date Taken: October 21, 2020 Taken By: Michael A. Keane, MAI
1. Point from which taken: Existing ROW along Tom Cole Rd Looking: West toward the acquisition area
2. Point from which taken: Existing ROW along Tom Cole Rd Looking: West toward the acquisition area
Not within Acquisition
Form ROW-A-5 Rev. 8/11 T
Page 2.1
PHOTOGRAPHS OF SUBJECT PROPERTY
Include Each Major Improvement
Parcel No.: 10 - (P00054466) Local Address: W Line of Tom Cole Rd, ~1.0 Miles
S of Jim Christal Rd, Denton, Denton County, Texas
Date Taken: October 21, 2020 Taken By: Michael A. Keane, MAI
2. Point from which taken: Existing ROW along Tom Cole Rd Looking: West toward the acquisition area
3. Point from which taken: Existing ROW along Tom Cole Rd Looking: West toward the acquisition area
Water Tower within Acquisition
Form ROW-A-5 Rev. 8/11 T
Page 2.2
PHOTOGRAPHS OF SUBJECT PROPERTY
Include Each Major Improvement
Parcel No.: 10 - (P00054466) Local Address: W Line of Tom Cole Rd, ~1.0 Miles
S of Jim Christal Rd, Denton, Denton County, Texas
Date Taken: October 21, 2020 Taken By: Michael A. Keane, MAI
4. Point from which taken: Existing ROW along Tom Cole Rd Looking: South along Tom Cole Rd, subject at right
5. Point from which taken: Existing ROW along Tom Cole Rd Looking: North along Tom Cole Rd, subject at left
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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 130,000 new residents, more
than any other metro in the country. The same is true regarding employment: North Texas added just over
120,000 new jobs in 2019, with sustained growth of about 3%. With around 740,000 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. Specifically,
Clairmont estates, Hopkins meadows, Bent Rail Farms, and Stonehenge are residential communities
currently under construction offering new single-family residences in the neighborhood. 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. 5
LOCATION AND LEGAL DESCRIPTION
The subject property is located along the west line of Tom Cole Road, approximately 1.0 miles south of Jim
Christal 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 David Davis Survey, Abstract No. 356, City of Denton,
Denton County, Texas, and being a called 141.6500 acre tract of Land described in General
Warranty Deed recorded in Instrument No. 2012-147183 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.
The subject property consists of land totaling approximately 141.6500 acres, or 6,170,274 square feet. The
subject property is considered near rectangular in shape. The portion of the site to be acquired by TxDOT
is a 22.1262 acre (963,819 square foot) tract for right-of-way use. This portion of the subject property is
being acquired for the construction of SL 288.
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 2449. Then turn left onto FM 2449, travelling west for approximately
2.8 miles then turn traveling north on C. Wolf Road for approximately 1.5 miles before turning right on Tom
Cole Road. The motorist would then travel for approximately 1.5 miles before arriving at the subject to the
west. The subject tract has access from Tom Cole Road with approximately 2,400 feet of frontage along
Tom Cole Road (measured via Denton CAD). Furthermore, the tract has access via a private driveway
along the majority of the northern portion of the tract Road from Tom Cole Road. All of the frontage is
useable. After the proposed acquisition, the subject will also have access from the proposed SL 288
northbound and southbound frontage roads. Thus, the subject is considered to have good access and good
exposure characteristics for future development.
5 The Appraisal Institute, The Appraisal of Real Estate (Fourteenth Edition), Chicago, Illinois, 2013, page 190.
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PARCEL MAP
Image courtesy of the Denton CAD (Image Capture Date: December 2020). The approximate boundary of the subject property 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
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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 the current elevation along the subject tract. The elevation of the proposed northbound and
southbound frontage roads will vary between approximately 0 - 10 feet above current elevation at the east
end 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 South end of the subject property
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The light blue line represents the approximate north end of the subject property
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PROPOSED SOUTHBOUND FRONTAGE LANES
The light blue line represents the approximate south end of the subject property
The light blue line represents the approximate north end 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
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.
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EXISTING EASEMENTS
The subject tract appears to be encumbered by typical utility easements, pipeline easements and access
easements. Additionally, based upon the surveys provided by SURVTEX, LLC, there is a street easement
(Tom Cole Road) (containing approximately 1.84485 acres) located along the east property line of the
subject property. A street easement does provide access to the property. However, the existing street
easement has a negative effect on the subject tract, as the easement grant virtually no use rights to the
property owner. 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 electric utilities. A well would be required for water and a
septic system would be required for sewage. Telephone service is available to the area as well as police
and fire protection (from the City of Denton).
FLOOD ZONE
Our analysis of flood plain 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 analysis of flood plain maps, it appears that approximately 4 percent (5.0000
acres) of the subject lies within the floodplain and approximately 28 percent (40.0000 acres) lies within the
regulatory floodway.
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FLOOD PLAIN MAP
Subject Property
SURROUNDING LAND USES
The land uses immediately surrounding the subject include vacant land to the north, south and vacant land
and the Denton Municipal Airport to the east. An aerial photo depicting the surrounding land is located
following this paragraph.
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SURROUNDING LAND USES MAP
Vacant Land Subject Property Airport Comm./Ind. Dev.
Aerial Photograph courtesy of Google Earth (Image Capture Date: December 2020)
CONCLUSION
The subject property is located along the west line of Tom Cole Road, approximately 1.0 miles south of Jim
Christal Road in Denton, Denton County, Texas and comprises a total of 141.6500 acres. The subject
property is considered near rectangular in shape and has frontage along Tom Cole Road. The tract has
good access and good exposure and has electric utilities available. Approximately 4 percent (5.0000 acres)
of the subject lies within the floodplain and approximately 28 percent (40.0000 acres) or floodway. The
property is located in the western portion of Denton County and is within an area with predominately
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 a barn and a shed with
significant deferred maintenance site improvements. The site improvements are considered to be in
average condition.
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ZONING AND OTHER LAND USE RESTRICTIONS
According to the City of Denton’s zoning map, the subject property is zoned (PF) Public Facilities. Due to
this zoning classification, the property 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. Located below and on the following pages are the zoning ordinances for the
districts, the zoning map, and the future land use map.
The subject appears to be in compliance with the zoning requirements. 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
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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.
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.
However, the subject tract is identified (Parcel ID#: 36643) by the Denton CAD as being exempt from
paying property taxes. Thus, no further tax analysis is warranted.
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
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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 3.4-3.17
Cost Approach,
pg 3.18-19
Sales Comparison Approach,
pg 3.20
Income Approach,
pg 3.21
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 141.6500 acre tract of land improved with site improvements. The proposed right-of-way acquisition
involves land improved with barbed wire and field fencing, concrete and gravel paving, and a water tower for livestock. We determined
the proposed acquisition and proposed drainage easement will not negatively affect drainage, ingress/egress, or utility of remainder 1
(96.3189 acres) or remainder 2 (23.2049 acres). As permitted by USPAP Standard Rule 1-2 (e)(v), only the land and affected site
improvements (barbed wire fencing) 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 (barbed wire fencing) 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.
141.6500 AC $3,762,023
Land Value in Fee
(In 100 Yr FP)5.0000 AC $17,500 $87,500
@
@ /AC
$35,000 $3,318,053
Reconciled Final Value (Whole Property)…………………………….....………………………………………………$3,776,662
/AC $6,470
$350,000
@ $3,500
@ $8,750 /AC
Land Value in St Esmt 1.8485 AC
Land Value in Fee
(In FW)40.0000 AC
Total Land Value:
Land Value in Fee
(Outside FP & FW)
Total Contributory Value of Improvements
94.8015 AC
Field Fencing (390 LF)
$14,639
$1,638
Water Tower (1 Unit)$3,845
/AC
N/A
Cost Approach…………………………………………….....………………..$3,776,662
Sales Comparison Approach…………………………………….....…………N/A
Gravel Paving (5,598 SF)$2,183
Barbed Wire Fencing (738 LF)$2,657
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
$3,776,662.
*The calculation of the value per unit estimate of the street easement portion of the subject whole property can be found on page 3.16 of this report.
*The calculation of the value per unit estimate of the flood plain and/or floodway portions of the subject whole property can be found on page 3.15 of this report.
Concrete Paving (654 SF)$4,316
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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. 6
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. 7
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.
6 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Sixth Edition), Chicago, Illinois, 2015, page 109.
7 Ibid. page 152
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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 Public Facilities 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. Therefore, a wide variety of industrial uses are allowed. Thus,
future industrial development is considered to be indicative of the most likely and legally permissible use 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 property consists of 141.6500 acres, which is considered to
be an economic unit typical for the market. The subject is physically located along the west line of Tom Cole
Road, approximately 1.0 miles south of Jim Christal 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 residential development. Additionally, soil and subsoil conditions
are not considered to significantly hinder the development potential of the site. The site has access to
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electric utilities, and the site does appear to be encumbered by pipeline and access easements; however,
it appears that these easements are fairly typical in the market area and no easements exist that adversely
affect development of the subject property. However, a portion of the subject property lies within a street
easement (Tom Cole Road). The portion of the subject property that lies within the street easement total
approximately 1.8485 acres (based upon information provided by Pacheco Koch Consulting Engineers and
measurements via the Denton CAD). The street easements to provide access to the property. However,
the existing street easements have a negative effect on the subject tract, as this easement grants virtually
no use rights to the property owner. Approximately 4 percent (5.0000 acres) of the subject lies within the
100-year floodplain and approximately 28 percent (40.0000 acres) lies within the regulatory floodway.
Based upon an analysis of land uses within the subject neighborhood, as well as the immediate vicinity,
and given the proximity of the site to U.S. 380, I-35 North, and the Denton Enterprise Airport, 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,
residential, and agricultural within the immediate vicinity of the subject. The majority of the current land
sales within the subject neighborhood have been acquired for either speculative investments or industrial
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.
Form ROW-A-5 Rev. 8/11 T
SCA 3.4
SALES COMPARISON APPROACH
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID 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)
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
$36,695 $60,122 $21,170 $39,898
1.25 Miles SE 1 Mile SE 1.50 Miles NE 1.1 Miles NE
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
Electric Only -10%-10%-10%-10%
0%0%0%0%Level
Near Rectangular
4% FP & 28% FW
0%0%0%0%
+21%+20%+20%
$31,839
$35,000
+1%-25%0%-30%
Indicated Unit Value $37,062 $45,993 $23,710
Size
Land Size 3,395,0661,630,1893,947,1026,170,274
5%/Year 0%+2%+12%
Good 0%-10%0%
141.6500
6,170,274 -5%-10%-5%
Arm's Length Arm's Length
141.6500 90.6130 37.4240
0%
+14%
$36,695 $61,324 $23,710 $45,484
Arm's Length
(PF) Public Facilities -5%-5%-5%-10%
0%-10%0%0%
0%
No
-10%
Arm's Length
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.5
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
-141.6500 (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 3.6
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 10 - (P00054466) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #1
April 13, 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:Michael A. Keane, MAI
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
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:
Primary 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
Form ROW-A-5S
(Rev. 11/11)
Page 2 of 4
Page 3.7
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 10 - (P00054466) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #2
April 13, 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:
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
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
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
Form ROW-A-5S
(Rev. 11/11)
Page 3 of 4
Page 3.8
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 10 - (P00054466) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #3
April 13, 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:
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
23% FW
5% FP
N/A
Vacant Land Highest and Best Use:Industrial
December 11, 2020 (LI) Light Industrial
Primary Thoroughfare All Available
Improvement(s) Description:N/A N/A
Unit Price as Improved:N/A N/A
$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
Form ROW-A-5S
(Rev. 11/11)
Page 4 of 4
Page 3.9
COMPARABLE DATA SUPPLEMENT
District: Dallas Parcel No.: 10 - (P00054466) Highway: SL 288
County: Denton ROW CSJ: 2250-02-024
Land Sale #4
April 13, 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:
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
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
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
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.10
LAND SALES ANALYSIS
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:-141.6500 Electric Only Level (PF) Public Facilities Near Rectangular 4% FP & 28% FW --
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
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
W Line of Tom Cole Rd, ~1.0 Miles S of Jim
Christal Rd, Denton, Denton County, Texas
~10% 100, ~5%
500, ~20% FW
(RCC-N) Reg Center
Comm Neighborhood
Under
Contract
Comparable Land Sales
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.11
adjustments for Expenditures After Sale have been made within the individual Comparable write-ups.
Therefore, no further adjustments are necessary.
Market Conditions
This adjustment is generally made after the other transactional adjustments have been made (property
rights conveyed, financing, conditions of sale, and expenditures after sale). This adjustment addresses
potentially differing market conditions between the subject property (date of appraisal), and the sales dates
of the Comparables. As a test, the sales adjusted prices when compared to the subject were chronologically
arrayed by sale date and only adjusted for the appropriate physical conditions in order to determine if
adjustments for changing market conditions is warranted.
The table below depicts the Price/Ac. for each comparable which has been adjusted for the other
transactional adjustments (property rights conveyed, financing, conditions of sale, and expenditures after
sale). The % Physical Adjustment column indicates the total adjustments made for all physical
characteristics (location, size, corner, utilities, topography zoning, flood plain, etc.) as shown in the
adjustment grid at the conclusion of this section of the report. The Adjusted Price/Ac. is calculated by
applying the % Physical Adjustment for each sale to its Price/Ac. By analyzing the comparable sales
adjusted prices per square foot after all other adjustments have been made, trends in land prices over the
time period may become apparent. However, given the small sample size, the appraisers’ judgment is also
relied upon based upon knowledge gained from experience in the market over this time period.
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 west line of Tom Cole Road, approximately 1.0 miles south of 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
Comparable Date Unadjusted Physical %Adjusted
Number of Sale Price/Acre*Adjustment Price/Acre
Comparable 1 Under Contract $36,695 1%$37,062
Comparable 2 July 1, 2020 $60,122 -25%$45,092
Comparable 3 May 22, 2018 $21,170 0%$21,170
Comparable 4 February 9, 2018 $39,898 -30%$27,929
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.12
within close proximity to the Denton Enterprise Airport. Therefore, Comparable 2 will be adjusted downward
10 percent 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 tract totals 141.6500 acres. The Comparables range in size from 37.4240 to 90.6130 acres.
Typically, smaller tracts sell for more per square foot than larger sites. In reviewing market trends, the
market appears to recognize a difference in price for tracts substantially different in size. Comparables 1
(90.6130 acres) and 3 (77.940 acres) are smaller in size when compared to the subject and will be adjusted
downward 5 percent. Comparables 2 (37.4240 acres) and 4 (50.9800 acres) are significantly smaller in size
when compared to 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 electric utilities available. All of the Comparables reportedly had all utilities
available and will be adjusted downward 10 percent.
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 (PF) Public Facilities 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
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.13
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 is zoned RCC-N
(Regional Center Commercial Neighborhood), which allows for more land uses compared to industrial
zoning. Therefore, Comparable 4 will be adjusted downward 10 percent for zoning.
Shape
The subject property is considered near rectangular 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.
Flood Plain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year flood
plain. None of the subject property is located within the floodplain or floodway. Comparables 1, 2, and 3 are
partially located within the 100-year flood plain and floodway. To extract the appropriate adjustment for flood
plain, paired sales analysis for several flood plain sales identified in the North Texas region have been
displayed in the following table. These flood plain sales are correlated with a very similar non-flood plain
sale.
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 --
100%9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9%
Divided by Percentage in Flood Plain:100%
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 3.14
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 3.15
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 3.16
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $35,000 per acre is considered to be
reasonable. However, approximately 4.0 percent (5.0000 acres) of the subject lies in the 100-year flood
plain and approximately 28 percent (40.0000 acres) of the subject 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 flood plain, compared to land that is not located within a flood plain. This results in a
market value opinion of $17,500 per acre ($35,000 per acre x 50% = $17,500 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 $8,750 per acre
($35,000 per acre x 25% = $8,750 per acre) for the portions of the subject property located within the
regulatory floodway.
Additionally, based upon the surveys provided by SURVTEX, LLC, there is a street easement (containing
approximately 1.8485 acres) located along the west property line of the subject property. 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 provides
a guide for allocating value of the fee simple interest between the easement estate (dominant estate) and
the landowner’s estate (servient estate). This exhibit was provided by an article entitled “The Valuation of
Easements” by Donald Sherwood, SR/WA, MAI, FRICS, published in the November/December 2014
edition of Right of Way Magazine.
$/Acre All Data
Range $23,710 -$45,993 $31,839 -$37,062 -
Mean (Average)
Standard Deviation $3,693
All of the Comparables had a mean of $34,651 per acre,while the mean of data without high and low
extremes is $34,451 per acre,and the data with the least absolute adjustments (<=45%)had a mean of
$34,451 per acre.
$37,062
$34,651 $34,451 $34,451
$9,346 $3,693
Data Without Data with Absolute
High and Low Extremes Adjustments <45%
$31,839
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.17
The portion of the subject property that is located within the street easement is approximately 1.8485 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 $3,500 per acre ($35,000 per acre x (1-90%) = $3,500
per acre) for the portion of the subject property located within the street easement. Thus, the total market
value opinion of the whole subject property, as of the effective date of the appraisal, is calculated below:
Land Value in Fee (Outside FP & FW): 94.8015 acres x $35,000/acre = $3,318,053
Land Value in Fee (In 100 Yr FP): 5.0000 acres x $17,500/acre = $87,500
Land Value in Fee (In FW): 40.0000 acres x $8,750/acre = $350,000
Land Value in Street Easement: 1.8485 acres x $3,500/acre = $6,470
Total: 141.6500 acres $3,762,023
Form ROW-A-5 Rev. 8/11 T
CA 3.18
COST APPROACH
Whole: Part to be Acquired: Remainder After:
Improvement
$
$
$
$
$
$
$
Barbed Wire Fencing LF =$2,657 $2,657
Gravel Paving SF =$2,183 $2,183
Concrete Paving SF =$4,317 $4,316
Field Fencing LF =$1,638 $1,638
Water Tower Unit =$5,767 $3,845
$14,639
$14,639
Land Value in Fee
(Outside FP & FW)94.8015 AC $35,000 /AC $3,318,053
Land Value in Fee
(In 100 Yr FP)5.0000 AC $17,500 /AC $87,500
Land Value in Fee
(In FW)40.0000 AC $8,750 /AC $350,000
Land Value in St Esmt 1.8485 AC $3,500 /AC $6,470
$3,776,662
1 $9,612 60.00%$9,612.00
654
Estimated Replacement/Reproduction Cost
Number of units $ per unit Cost New <Depreciation Value
5,598 $4,366 50.00%$0.78
Contributory Value of the Buildings
Contributory Value of the Accessory Improvements
Site Improvements
738 $5,314 50.00%$7.20
$8,633 50.00%
390 $3,276 50.00%
$13.20
$8.40
Accessory Improvements
Estimated Value by Cost Approach
Contributory Value of the Site Improvements
Contributory Value of all Improvements
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 3.19
DISCUSSION OF COST APPROACH – WHOLE PROPERTY
The improvements situated within the parts to be acquired involve barbed wire and field fencing, concrete
and gravel paving, and a water tower for livestock. According to fencing contractors: Thurman Fencing and
T&T Fencing, the cost to replace the barbed wire fence would be approximately $5.00 to $7.00 per linear
foot and the cost to replace the field fencing would be approximately $6.00 to $8.00 per linear foot.
Therefore, a cost of $6.00 per linear foot is estimated for barbed wire fencing and a cost of $7.00 per linear
foot is estimated for field fencing. Upon including an entrepreneurial profit incentive of 20 percent, total
replacement cost new equates to $7.20 per linear foot ($6.00/LF + 20%) for the barbed wire fencing and
$8.40 per linear foot ($7.00/LF + 20%) for the field fencing. Furthermore, regarding the concrete paving,
the Marshall & Swift Cost Manual indicated a range between $8.50 to $12.00 PSF for 6 inch thick concrete
with metal bar reinforcement and base material. In addition, Don Smith, a project manager with Pavecon
Inc, quoted $10.00-$12.00 PSF for the high demand DFW area. Therefore, $11.00 PSF for concrete paving
will be utilized. Additionally, the water tower was estimated utilizing the Marshal and Swift Cost Manual and
supplemented with online research from sites such as Tanksandbarrel.com. and Scafco.com. The water
tower was estimated to be a 500 gallon galvanized steel tank on a 12 foot tower. According to the Marshal
and Swift Cost Manual, a 500 gallon tank would cost approximately $1,610, which is in line with
tanksandbarrels.com. Furthermore, a 12 foot tower frame would cost approximately $6,400, which is in line
with Scafco®. Thus, the water tower is estimated to have a replacement cost new of $8,010. Upon including
an entrepreneurial profit incentive of 20 percent, total replacement cost new equates to $9,612 ($8,010/unit
+ 20%) for a 500 gallon water tank on a 12 foot tower frame.
The site improvements (barbed wire and field fencing, concrete and gravel paving, and a water tower for
livestock) are of good quality and are in average condition. Thus, the contributory value of the site
improvements equals $14,639 (rounded).
Upon adding the contributory value of the site improvements within the acquisition to the land value of the
whole subject tract ($3,762,023), a market value of the whole property of $3,776,662 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
Barbed Wire Fencing $4,428 738 LF $6.00 20%$7.20 $5,314 10 20 50.00%$2,657 $2,657
Gravel $3,639 5,598 SF $0.65 20%$0.78 $4,366 3 6 50.00%$2,183 $2,183
Concrete $7,194 654 SF $11.00 20%$13.20 $8,633 15 30 50.00%$4,317 $4,316
Field fencing $2,730 390 LF $7.00 20%$8.40 $3,276 10 20 50.00%$1,638 $1,638
Water Tower $8,010 1 Unit $8,010.00 20%$9,612.00 $9,612 30 50 60.00%$5,767 $3,845
Totals:$26,001 $31,201 $16,562 $14,639
of Units
Number
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 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 3.21
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
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.
Gravel (5,598 SF)$2,183
Contributory Value of Improvements (Itemized)
Barbed Wire Fencing (738 LF)$2,657
Water Tower (1 Unit)$3,845
Concrete (654 SF)$4,316
Field Fencing (390 LF)$1,638
Total Contributory Value of Improvements $14,639
Total Contributory Value of Improvements $14,639
=$774,417Land Value in Fee
(Outside FP & FW)22.1262 Per Acre$35,000AC@
Total Land Value 22.1262 AC $774,417 $774,417
TOTAL VALUE AS A UNIT $789,056
$2,987,606
TOTAL VALUE AS A UNIT $2,987,606
Total Land Value 119.5238 AC $2,987,606
Contributory Value of Improvements (Itemized)
$2,987,606Remainder Land 119.5238 AC
Total Contributory Value of Improvements $0
Total Contributory Value of Improvements $0
$0
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.1
HIGHEST AND BEST USE – PART ACQUIRED
The part acquired is a 22.1262 acre (963,819 square foot) tract located in the eastern part of the subject
property. It should be noted no access rights are being acquired as part of the acquisition. The survey and
legal description for the part 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 configurations. 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.
Right-of-Way Acquisition: As previously discussed, the part acquired comprises 22.1262 acres, or
963,819 square feet that bisects the property. The part to be acquired bisects the property tract and is
approximately 353 feet wide at the southern end of the acquisition and is approximately 385 feet wide at
the northern end of the acquisition and runs approximately an average of 2,415 feet in length. The part to
be acquired is nearly rectangular in shape.
Barbed wire and field fencing, concrete and gravel paving, and a water tower for livestock are 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 $14,639. 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, or
$35,000/acre. Thus, the total land value of the part to be acquired equates to $774,417.
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 $789,056 ($14,639 + $774,417).
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 as follows:
Value of the Whole Property: $3,776,662
Minus: Value of the Part to be Acquired: $789,056
Equals: Value of the Remainder Before Acquisition: $2,987,606
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.2
LEGAL DESCRIPTION OF THE PROPOSED FEE SIMPLE ACQUISITION AREA
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 4.3
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
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 4.9
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 5.5-5.23
Cost Approach,
pg 5.24
Sales Comparison Approach,
pg 5.25
Income Approach,
pg 5.26
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 zoning and future zoning designation, location, and current development taking place in the area, the highest and
best use of the subject tract as vacant is for industrial development.
VALUATION APPROACHES
As discussed earlier within this report the subject property involves a 141.6500 acre tract of land improved with barbed wire and field
fencing, concrete and gravel paving, and a water tower for livestock. The subject will consist of two remainder tracts. Remainder tract
1 consists of 96.3189 acres improved with barbed wire fencing and concrete and gravel paving. Remainder tract 2 consists of 23.2049
acres improved with barbed wire fencing, concrete and gravel fencing. 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 (Tract 1)96.3189 AC $2,297,480
Total Land Value (Tract 2)23.2049 AC $603,155
*It should be noted that these totals may not calculate exactly due to rounding within the program.
$9,000 Per Acre
$28,000 Per Acre
$2,800 Per Acre
40.0000 =$360,000
Rmndr Land Value in St Esmt
(Tr 2)
Rmndr Land Value in Fee -
Outside FP & FW (Tr 2)21.3564 =$597,979
$2,900,635 $2,900,635
Rmndr Land Value in Fee - In
FW (Tr 1)
TOTAL VALUE AS A UNIT $2,900,635
Total Land Value (Tracts 1 & 2)119.5238 AC
AC @
AC @
51.3189 $1,847,480=
Total Contributory Value of Improvements $0
AC
@
1.8485 =$5,176AC@
=Rmndr Land Value in Fee - In
FP (Tr 1)
Rmndr Land Value in Fee -
Outside FP & FW (Tr 1)
Total Contributory Value of Improvements $0
$36,000 Per Acre
$90,0005.0000 $18,000 Per Acre
@
AC
*The calculation of the value per unit estimate of the flood plain and/or floodway portion of the subject remainder can be found on page 5.11 & 5.23 of this report.
Cost Approach……………………………………………………….....………N/A
Sales Comparison Approach………………………………………….....……$2,900,635
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
$2,900,635.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.1
Remainder: The remainder tracts comprise 96.3189 acres (4,195,651 square feet) and 23.2049 acres
(1,010,805 square feet), calculated below.
Whole Property = 141.6500 AC or 6,170,274 SF
Part Acquired = 22.1262 AC or 963,819 SF
Remainder Tract 1 = 96.3189 AC or 4,195,651 SF
Remainder Tract 2 = 23.2049 AC or 1,010,805 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:
The subject will consist of two remainder tracts. Remainder tract 1 consists of 96.3189 acres improved with
barbed wire fencing and remainder tract 2 consists of 23.2049 acres improved with barbed wire fencing
and concrete and gravel paving. Furthermore, approximately 1.8485 acres of the remainder tract 2 lies
within a street easement (Tom Cole Road). Remainder tracts 1 and 2 are of sufficient size to support the
highest and best use of the tract for future industrial development. The public project is a benefit to all
properties in the neighborhood and not specific to a particular property. After the acquisition, remainder
tract 1 has approximately 2,424 linear feet of useable road frontage along the southbound frontage road of
SL 288, and remainder tract 2 has approximately 2,406 linear feet of useable road frontage along the
northbound frontage road of SL 288. The Sales Comparison Approach is utilized to determine the market
value of the remainder tracts after the acquisition.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.2
HIGHEST AND BEST USE ANALYSIS – REMAINDER TRACT 1
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 5.3
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 Public Facilities 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. Therefore, a wide variety of industrial uses are allowed. Thus,
future industrial development is considered to be indicative of the most likely and legally permissible use 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 96.3189 acres, which is considered to be an
economic unit typical for the market. The subject is physically located along the west line of SL 288,
approximately 1.0 miles south of Jim Christal 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 subject remainder tract 1 is considered to be level. Drainage appears to be adequate.
This topography is conducive for most types of residential development. Additionally, soil and subsoil
conditions are not considered to significantly hinder the development potential of the site. The site has
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.4
access electric, and the site does appear to be encumbered by numerous pipeline and access easements,
however, it appears that these easements are fairly typical in the market area and no easements exist that
adversely affect development of the subject property. Approximately 5 percent (5.0000 acres) of the subject
lies within the 100-year floodplain and approximately 42 percent (40.0000 acres) lies within the regulatory
floodway. Based upon an analysis of land uses within the subject neighborhood, as well as the immediate
vicinity, and given the proximity of the site to U.S. 380, I-35 North, and the Denton Enterprise Airport, 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,
residential, and agricultural within the immediate vicinity of the subject. The majority of the current land
sales within the subject neighborhood have been acquired for either speculative investments or industrial
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.
Form ROW-A-5 Rev. 8/11 T
SCA 5.5
SALES COMPARISON APPROACH – REMAINDER TRACT 1
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID 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)$36,000
+6%-20%+5%-25%
Indicated Unit Value $38,897 $49,059 $24,896 $34,113
5% FP & 42% FW +21%+20%+20%0%
(PF) Public Facilities -5%-5%-5%-10%
Near Rectangular 0%0%0%0%
Electric Only -10%-10%-10%-10%
Level 0%0%0%0%
-5%4,195,650
No 0%-10%0%0%
Good 0%-10%0%0%
Size 96.3189 0%-5%0%
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 96.3189 90.6130 37.4240 77.9400 50.9800
4,195,650 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
1.25 Miles SE 1 Mile SE 1.50 Miles NE 1.1 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 TRACT 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(RCC-N) Reg Center Comm NeighborhoodIrregular None $2,034,000 $39,898
Subject:-96.3189 Electric Only Level (PF) Public Facilities Near Rectangular 5% FP & 42% FW --
Summary of
Comparable Land Sales
S Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
Under
Contract
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
N Line of FM 1173, W of I-35, Denton,
Denton County, Texas
W Line of SL 288, ~1.0 Miles S of Jim
Christal Rd, Denton, Denton County, Texas
N Line of Jim Christal Rd, E of S Masch
Branch Rd, Denton, Denton County, Texas
~10% 100, ~5%
500, ~20% FW
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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, flood plain, 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
along the west line of SL 288, approximately 1.0 miles south of 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 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 6%$38,897
Comparable 2 July 1, 2020 $60,122 -20%$48,098
Comparable 3 May 22, 2018 $21,170 5%$22,229
Comparable 4 February 9, 2018 $39,898 -25%$29,924
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
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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 remainder tract 1 totals 96.3189 acres. The Comparables range in size from 37.4240 to 90.6130
acres. Typically, smaller tracts sell for more per square foot than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Comparables
1 (90.6130 acres) and 3 (77.940 acres) are fairly similar in size when compared to the subject property and
will not be adjusted. Comparables 2 (37.4240 acres) and 4 (50.9800 acres) are smaller in size when
compared to the subject and will be adjusted downward 5 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 electric utilities available. All of the Comparables reportedly had all utilities
available and will be adjusted downward 10 percent.
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 (PF) Public Facilities 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
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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 is zoned RCC-N
(Regional Center Commercial Neighborhood), which allows for more land uses compared to industrial
zoning. Therefore, Comparable 4 will be adjusted downward 10 percent for zoning.
Shape
The subject property is considered near rectangular 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.
Flood Plain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year flood
plain. None of the subject property is located within the floodplain or floodway. Comparables 1, 2, and 3 are
partially located within the 100-year flood plain and floodway. To extract the appropriate adjustment for flood
plain, paired sales analysis for several flood plain sales identified in the North Texas region have been
displayed in the following table. These flood plain sales are correlated with a very similar non-flood plain
sale.
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 --
100%9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9%
Divided by Percentage in Flood Plain:100%
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.
% 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.
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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
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.
% 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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Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $36,000 per acre is considered to be
reasonable. Therefore, given the foregoing analysis, a market value opinion of $36,000 per acre is
considered to be reasonable. However, approximately 4.0 percent (5.0000 acres) of the subject lies in the
100-year flood plain and approximately 42 percent (40.0000 acres) of the subject 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 flood plain, compared to land that is not located within a flood plain. This
results in a market value opinion of $18,000 per acre ($36,000 per acre x 50% = $18,000 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 $9,000 per acre ($36,000 per acre x 25% = $9,000 per acre) for the portions of the subject property
located within the regulatory floodway. Thus, the total market value opinion of the remainder subject
property, as of the effective date of the appraisal, is calculated below:
Remainder Land Value in Fee (Outside FP & FW): 51.3189 acres x $36,000/acre = $1,847,480
Remainder Land Value in Fee (In 100 Yr FP): 5.0000 acres x $18,000/acre = $90,000
Remainder Land Value in Fee (In FW): 40.0000 acres x $9,000/acre = $360,000
Total: 96.3189 acres $2,297,480
$/Acre All Data
Range $24,896 -$49,059 $34,113 -$38,897 -
Mean (Average)
Standard Deviation $3,383
All of the Comparables had a mean of $36,741 per acre,while the mean of data without high and low
extremes is $36,505 per acre,and the data with the least absolute adjustments (<=40%)had a mean of
$36,505 per acre.
$34,113 $38,897
$36,741 $36,505 $36,505
$10,060 $3,383
High and Low Extremes Adjustments <40%
Data Without Data with Absolute
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HIGHEST AND BEST USE ANALYSIS – REMAINDER TRACT 2
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:
3. 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.
4. 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
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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 Public Facilities 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. Therefore, a wide variety of industrial uses are allowed. Thus,
future industrial development is considered to be indicative of the most likely and legally permissible use 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 23.2049 acres, which is considered to be an
economic unit typical for the market. The subject is physically located along the west line of Tom Cole Road,
east line of SL 288, and approximately 1.0 miles south of Jim Christal 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 remainder tract 2 is considered to be level. Drainage appears to be adequate.
This topography is conducive for most types of residential development. Additionally, soil and subsoil
conditions are not considered to significantly hinder the development potential of the site. The site has
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access electric, and the site does appear to be encumbered by numerous pipeline and access easements,
however, it appears that these easements are fairly typical in the market area and no easements exist that
adversely affect development of the subject property. However, a portion of the subject property lies within
a street easement (Tom Cole Road). The portion of the subject property that lies within the street easement
total approximately 1.8485 acres (based upon information provided by Pacheco Koch Consulting Engineers
and measurements via the Denton CAD). The street easements to provide access to the property. However,
the existing street easements have a negative effect on the subject tract, as this easement grants virtually
no use rights to the property owner. None of the subject lies within the floodplain or floodway. Based upon
an analysis of land uses within the subject neighborhood, as well as the immediate vicinity, and given the
proximity of the site to U.S. 380, I-35 North, and the Denton Enterprise Airport, 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,
residential, and agricultural within the immediate vicinity of the subject. The majority of the current land
sales within the subject neighborhood have been acquired for either speculative investments or industrial
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.
Form ROW-A-5 Rev. 8/11 T
SCA 5.15
SALES COMPARISON APPROACH – REMAINDER TRACT 2
Whole: Part to be Acquired: Remainder After:
Land: Improved:
VALUATION GRID 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)
0%
+14%
$36,695 $61,324 $23,710 $45,484
Arm's Length
(PF) Public Facilities -5%-5%-5%-10%
0%-10%0%0%
0%
No
+5%
Arm's Length
Size
Land Size 3,395,0661,630,1893,947,1021,010,805
5%/Year 0%+2%+12%
Good 0%-10%0%
23.2049
1,010,805 +10%+5%+10%
Arm's Length Arm's Length
23.2049 90.6130 37.4240
Indicated Unit Value $31,558 $36,794 $20,154 $25,016
$28,000
-14%-40%-15%-45%
Electric Only -10%-10%-10%-10%
0%0%0%0%Level
Narrow
None
-30%-30%-30%-30%
+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
1.25 Miles SE 1 Mile SE 1.50 Miles NE 1.1 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
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LAND SALES ANALYSIS – REMAINDER TRACT 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:-23.2049 Electric Only Level (PF) Public Facilities Narrow 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
E Line of SL 288, ~1.0 Miles S of Jim Christal
Rd, Denton, Denton County, Texas
~10% 100, ~5%
500, ~20% FW
(RCC-N) Reg Center
Comm Neighborhood
Under
Contract
SEC of Airport Rd & Westcourt Rd, Denton,
Denton County, Texas
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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, flood plain, etc.) as shown on
Page SCA 5.10. 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 east line of SL 288, approximately 1.0 miles south of 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 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 -14%$31,558
Comparable 2 July 1, 2020 $60,122 -40%$36,073
Comparable 3 May 22, 2018 $21,170 -15%$17,995
Comparable 4 February 9, 2018 $39,898 -45%$21,944
*Inclusive of any necessary transactional adjustments
Market Conditions Comparison
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Page 5.18
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 remainder tract 2 totals 23.2049 acres. The Comparables range in size from 37.4240 to 90.6130
acres. Typically, smaller tracts sell for more per square foot than larger sites. In reviewing market trends,
the market appears to recognize a difference in price for tracts substantially different in size. Comparables
1 (90.6130 acres) and 3 (77.940 acres) are larger in size when compared to the subject and will be adjusted
upward 10 percent. Comparables 2 (37.4240 acres) and 4 (50.9800 acres) are slightly larger in size when
compared to the subject and will be adjusted upward 5 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 electric utilities available. All of the Comparables reportedly had all utilities
available and will be adjusted downward 10 percent.
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 (PF) Public Facilities 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
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.19
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 is zoned RCC-N
(Regional Center Commercial Neighborhood), which allows for more land uses compared to industrial
zoning. Therefore, Comparable 4 will be adjusted downward 10 percent for zoning.
Shape
The remainder subject property is long and narrow in shape; the long narrow shape renders the site more
difficult to develop given its shallow depth. All of the Comparables are fairly typical in shape for industrial
oriented properties. The following paired data will be utilized to determine an appropriate adjustment for the
remainder tract 2 subject’s irregular shape
% of Tract with
Irregular Shape Location Date Size (Acres)Price/SF %Variance
0%NEC US 75 & Davis Rd., Melissa, TX 5/23/2017 48.103 4.50$ --
18%SWC Hwy 121 & Hwy 5, Melissa, TX 9/21/2016 38.8 Net 4.28$ -4.89%
Divided by % of Tract with Irregular Shape 18%
Indicated Adjustment -27.16%
% of Tract with
Irregular Shape Location Date Size (Acres)Price/SF %Variance
0%I-30, N. of FM 1903, Caddo Mills, TX 10/30/2015 5.7 0.57$ --
100%I-30, S. of FM 2500, Caddo Mills, TX 5/5/2016 13.52 0.47$ *-17.54%
Divided by % of Tract with Irregular Shape 100%
Indicated Adjustment -17.54%
* This sale was adjusted upward by 10 percent for its larger size.
Irregular Shape Paired Comparison #1
NEC US 75 & Davis Rd SWC Hwy 121 & Hwy 5
Irregular Shape Paired Comparison #2
I-30, N of FM 1903 SWC Hwy 121 & Hwy 5
18%
Triangular
100%
Irregular
(Narrow & Deep)
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.20
The paired data indicate an adjustment for very irregular shape ranging from 17.54 percent to 35 percent
with an average of 26.57 percent. Given the shallow depth of the entire remainder tract, an adjustment
towards the upper end of the paired comparisons, or 30 percent will be utilized. Therefore, All of the
Comparables will be adjusted downward 30 percent.
% of Tract withIrregular Shape Location Date Size (Acres)Price/SF %Variance0%NEC US 75 & Davis Rd., Melissa, TX 5/23/2017 48.103 4.50$ -- 18%SWC Hwy 121 & Hwy 5, Melissa, TX 9/21/2016 38.8 Net 4.28$ -4.89%Divided by % of Tract with Irregular Shape 18%Indicated Adjustment -27.16%
% of Tract with
Irregular Shape Location Date Size (Acres)Price/SF %Variance
0%I-30, N. of FM 1903, Caddo Mills, TX 10/30/2015 5.7 0.57$ --
100%I-30, S. of FM 2500, Caddo Mills, TX 5/5/2016 13.52 0.47$ *-17.54%
Divided by % of Tract with Irregular Shape 100%
Indicated Adjustment -17.54%
* This sale was adjusted upward by 10 percent for its larger size.
Irregular Shape Paired Comparison #1NEC US 75 & Davis Rd SWC Hwy 121 & Hwy 5
Irregular Shape Paired Comparison #2
I-30, N of FM 1903 SWC Hwy 121 & Hwy 5
18% Triangular
100%
Irregular
(Narrow & Deep)
% of Tract with
Irregular Shape Location Date Size (Acres)Price/SF %Variance
0%NWC Lamar & Wood, Dallas, TX 12/28/2016 0.74 140.00$ --
100%NWC Wood & Record, Dallas, TX 5/5/2016 0.087 91.00$ -35.00%
Divided by % of Tract with Irregular Shape 100%
Indicated Adjustment -35.00%
Irregular Shape Paired Comparison #3
NWC Lamar & Wood NWC Wood & Record
100%
Triangular
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.21
Flood Plain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-year flood
plain. None of the subject property is located within the floodplain or floodway. Comparables 1, 2, and 3 are
partially located within the 100-year flood plain and floodway. To extract the appropriate adjustment for flood
plain, paired sales analysis for several flood plain sales identified in the North Texas region have been
displayed in the following table. These flood plain sales are correlated with a very similar non-flood plain
sale.
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 --
100%9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9%
Divided by Percentage in Flood Plain:100%
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.
% 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
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 5.22
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
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.
% 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 5.23
Reconciliation
Therefore, given the foregoing analysis, a market value opinion of $28,000 per acre is considered to be
reasonable. Therefore, given the foregoing analysis, a market value opinion of $38,000 per acre is
considered to be reasonable. However, as previously mentioned, approximately 1.8485 acres of the
remainder tract 2 is located within a street easement. 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 $2,800 per acre ($28,000 per acre x (1-90%) = $2,800 per acre) for the portion of the subject
property located within the street easement. Thus, the total market value opinion of the remainder subject
property, as of the effective date of the appraisal, is calculated below:
Land Value in Fee (Outside FP & FW): 21.3564 acres x $28,000/acre = $597,979
Land Value in Street Easement: 1.8485 acres x $2,800/acre = $5,176
Total: 23.2049 acres $603,155
$/Acre All Data
Range $20,154 -$36,794 $25,016 -$31,558 -
Mean (Average)
Standard Deviation $4,626
All of the Comparables had a mean of $28,381 per acre,while the mean of data without high and low
extremes is $28,287 per acre,and the data with the least absolute adjustments (<=80%)had a mean of
$28,287 per acre.
$31,558
$28,381 $28,287 $28,287
$7,300 $4,626
Data Without Data with Absolute
High and Low Extremes Adjustments <80%
$25,016
Form ROW-A-5 Rev. 8/11 T
CA 5.24
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 5.25
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 5.26
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 remainder
tracts 1 and 2. Additionally, the acquisition does not limit the use or access of the remainder tracts. Therefore, the highest and best use
of the remainder tract 1 is not negatively impacted by the acquisition. However, given the narrow shape of remainder tract 2, damages
to the remainder are estimated to be $86,971. Furthermore, the barbed wire and field fencing, and the water tower will need to be
replaced on the remainder tract. Thus, a cost to cure has been estimated for the site improvements on the following page.
COMPENSATION SUMMARY
WHOLE PROPERTY:
The market value of the whole property is……………………………….....……………….....$3,776,662
The value of the remainder immediately before the taking is……………………….....…...……$2,987,606
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……………………………………………………….....…...……………...…$789,056
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…………………………………………………………………….....………$2,900,635
NET DAMAGES OR ENHANCEMENTS, if any………………………………………………….....…………………………$86,971
ACCESS:
The lack of any access denial or the material impairment of direct access
TOTAL COMPENSATION………………………………………………………………………………….....………………..$921,815
property in the sum of………………………………………………………….....…………..$0
COST TO CURE:………………………………………………………………...………….....……...…$45,788
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.1
COST TO CURE
The part to be acquired includes barbed wire and field fencing, concrete and gravel paving, and a water
tower for livestock. After the acquisition, approximately 4,830 linear feet of barbed wire fencing and
approximately 390 linear feet of field fencing will need to be constructed on the remainder property (along
the new ROW). In addition, the site will need to be surveyed again for the property owner to know where
the new fencing should be located. According to Justin Waldrip, with Pacheco Koch, a new survey would
cost $1,000 for the first 1,000 linear feet and an additional $0.80 for every linear foot over 1,000. The water
tower will also need to be replaced. As discussed previously within the value of the whole property,
according to fencing contractors: Thurman Fencing and T&T Fencing, the cost to replace the barbed wire
fence is approximately $6.00 per linear foot, and the cost to replace the field fencing is approximately $7.00
per linear foot. Additionally, the water tower is estimated to have a replacement cost new of $8,010. Upon
including an entrepreneurial profit of 20 percent, the total replacement cost new equates to $7.20 per linear
foot ($6.00/LF + 20%) for the barbed wire fencing, $8.40 per linear foot ($7.00/LF + 20%) for the field
fencing, and $9,612 per unit for the water tower. The table below illustrates the cost to cure the fencing and
water tower. Please note that the compensation given within the part to be acquired has been deducted
from the cost new to arrive at the cost to cure this item. Therefore, the total cost to cure, as shown in the
following table, is estimated to be $45,788.
Contributory
#Item Cost/Unit Total Cost Value
1 New Survey 5,220 LF $1.20 $6,264 $0 $6,264
2 Barbed Wire Fencing 4,830 LF $7.20 $34,776 $2,657 $32,119
3 Field Fencing 390 LF $8.40 $3,276 $1,638 $1,638
4 Water Tower 1 Unit $9,612.00 $9,612 $3,845 $5,767
Total:$45,788
Quantity Item Acquired
Cost to Cure
Less Value of
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.2
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) No one 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 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 Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Lauren N. Espey
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.
15) Mitchell B. Todd, MAI, Michael A. Keane, MAI and Lauren N. Espey made a personal inspection of
the property that is the subject of this report on October 21, 2020, and other dates.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.3
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
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.
17) Extraordinary Assumption: 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.
Respectfully submitted,
Mitchell B. Todd, MAI Michael A. Keane, MAI
President Senior Vice President
State Certification #TX-1323514-G State Certification #TX-1380384-G
mitchell@toddpa.com michael@toddpa.com
___________________________
Lauren N. Espey
Associate Vice President
State Certification #TX-1381032-G
lauren@toddpa.com
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
Page 6.4
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 6.5
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.
25) Extraordinary Assumption: 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.
ADDENDA
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
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
Louisiana Certificate # G4174
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 BuchholtzCommissioner
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 TODD
6849 ELM STREET
FRISCO, TX 75034
Appraiser: Lauren Nicole Espey
License #: TX 1381032 G License Expires: 09/30/2022
Chelsea BuchholtzCommissioner
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.
LAUREN NICOLE ESPEY
3915 STOCKTON LN
DALLAS, TX 75287
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.: 10
4. District: Dallas
5.Whole Taking Partial Taking x 6. Other:
7. Address of Property: W line of Tom Cole Rd (FM 1515), E of C Wolfe Rd, Denton, Denton County, Texas
8. Property Owner: City of Denton, Texas, A Texas Home Rule
Municipal Corporation 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
Compiled by Michael A. Keane, MAI, based on information
available, not signed by subject owner.December, 31, 2020
Unknown
Unknown
100%
Cattle
Gas Pipelines
Unknown
None
N/A
x
6849 Elm Street▲ Frisco, Texas 75034 ▲ www.ToddPropertyAdvisors.com
TELEPHONE: (214) 297-9000 ▲ FAX: (469) 365-9127 ▲ E-MAIL: mitchell@toddpa.com
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
October 9, 2020
City of Denton, Texas, A Texas Home Rule Municipal Corporation
215 E McKinney St
Denton, Texas 76201
Re: Proposed inspection of the property located at W line of Tom Cole Rd (FM 1515), E of C Wolfe 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, Texas, A Texas Home Rule Municipal Corporation. 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, Lauren N.
Espey, at (214) 297-9000 ext. 1017 or send an email to Lauren@toddpa.com if you have any questions. Please
reference Parcel #10 when responding to this letter.
Respectfully,
Michael A. Keane, MAI
Senior Vice 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: 10
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:
None
“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 24, 2020.
WFG National Title Company of Texas
________________________________
Roland Pelt
Page 2 of 2
EXHIBIT "A"
County: Denton
Highway: SL 288
STA. 269+46.29 to STA. 293+78.08
R.C.S.J.: 2250-02-024
Description for Parcel 10
(July 31, 2020)
BEING, a 963,819 square foot (22.1262 acre) tract of land located in the David Davis Survey, Abstract No. 356,
City of Denton, Denton County, Texas, and being part of a called 141.65 acre tract of land described in General
Warranty Deed to the City of Denton recorded in Instrument No. 2012-147183 of the Official Real Property
Records of Denton County, Texas (ORPRDCT); said 22.1262 acre tract being more particularly described by metes
and bounds as follows:
See Sch. C for Vesting Deeds and Parcel Survey
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.