HomeMy WebLinkAbout24.1024-C - Victor SSE ReportAn Appraisal Report
of
A Proposed Partial Acquisition of
A 15.049 Acre Tract of Land
Located at the Southwest Corner of Airport
Road and I-35W Frontage Road,
Denton, Denton County, Texas 76207
TPA File #: 24.1024-C – Victor Technologies Addition
Client Ref #: 8257-17
As of
October 29, 2024
Prepared for
City of Denton
Attention: Mr. Mark Mastroleo
Development Services Building
401 N Elm St
Denton, Texas 76201
Prepared by
2301 Ohio Drive, Suite 150
Plano, Texas 75093
(214) 297-9000
www.ToddPropertyAdvisors.com
2301 Ohio Drive, Suite 150 ▲ Plano, Texas 75093 ▲ www.ToddPropertyAdvisors.com
TELEPHONE: (214) 297-9000 ▲ E-MAIL: mitchell@toddpa.com
October 31, 2024
Mr. Mark Mastroleo
City of Denton
Development Services Building
401 N Elm St
Denton, Texas 76201
RE: An appraisal regarding the potential acquisition of a 0.010 acre (418 square foot)
sanitary sewer easement on a 15.049 acre tract of land physically located at the
southwest corner of Airport Road and I-35W Frontage Road in Denton, Denton
County, Texas 76207.
Dear Mr. Mastroleo:
We have personally inspected the above-referenced property and have prepared an opinion of
value in accordance with your request. The purpose of this appraisal is to provide an opinion of
market value of the fee simple estate of the subject property in “as is” condition and recommended
compensation for the parts to be acquired and damages to the remainder, if any, as of the effective
date of appraisal. The potential acquisitions involve a sanitary sewer easement by the City of
Denton.
All data considered pertinent to the preparation of this appraisal has been investigated and
analyzed and the results of the analysis together with our conclusions may be found within the
following report. The definition of market value has been included within the accompanying report.
Market value is defined as follows: “Market Value is the price which the property would bring when
it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is
under no necessity of buying it, taking into consideration all of the uses to which it is reasonably
adaptable and for which it either is or in all reasonable probability will become available within the
reasonable future.”
This appraisal report sets forth the identification of the subject property, information regarding the
subject property and its surrounding area, comparable sales data, the results of the investigations
and analyses, and the reasoning leading to our conclusions. This appraisal involves an appraisal
report in compliance with the Scope of Work Rule of the 2024 Edition of the Uniform Standards
of Professional Appraisal Practice (USPAP) as provided by the Appraisal Foundation. It involves
the application of the Sales Comparison Approach to value, as well as a Certification. All
methodology utilized to arrive upon the opinion of market value can be found in The Appraisal of
Real Estate, Fifteenth Edition, as published by The Appraisal Institute.
Mr. Mark Mastroleo
October 31, 2024
Page Two
In our professional opinion, and after careful consideration of the various factors influencing this
appraisal, the following illustrates the “as is” market value for the subject property and the
recommended compensation, as of the effective date of appraisal, October 29, 2024:
Opinions of Recommended Compensation
Value of the Whole Property: $4,221,238
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Remainder Before Acquisition: $4,219,775
Remainder After Acquisition: $4,219,775
Enhancements: $0
Damages: $0
Cost to Cure: $0
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Total Recommended Compensation: $1,463
Extraordinary Assumption: An extraordinary assumption has been made that any site
improvements impacted by the acquisition will be restored to their current or superior
condition by the City of Denton upon completion of the project at no cost to the property
owner. The use of this assumption could affect the results of this assignment and if found
to be incorrect could necessitate re-analysis.
Further, these opinions of value are contingent upon the subject property being free of any
hazardous wastes deposited thereupon by the present or previous owners/tenants of the site
which would adversely affect the value of the property. The existence of any such materials was
not observed upon the physical inspection of the property. However, we are not qualified to detect
these substances and it is recommended that an expert in this field be obtained if the client has
suspicion of these materials and substances existing on the property.
It is also assumed there is full compliance with all requirements of Title III, of the Americans with
Disabilities Act (ADA) which became effective January 26, 1992. No responsibility is assumed by
the appraisers for any such conditions, or for any expertise of architectural/design knowledge and
cost required identifying such non-compliance.
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
Mr. Mark Mastroleo
October 31, 2024
Page Three
There was no information required or deemed pertinent to the completion of this appraisal, which
was not available to the undersigned unless otherwise stated in this report. Additionally, the value
conclusions found within this report are exclusive of any personal property, fixtures, or intangible
items that are not real property. Thus, the reported values within this report pertain to the real
property only. In order for the opinion of value set forth herein to be considered valid this letter of
transmittal must not be considered separately or independently of the attached appraisal report,
and this appraisal report must be used in its entirety and must not be separated into parts.
Should any questions regarding this appraisal arise, please contact us.
Respectfully submitted,
Mitchell B. Todd, MAI Michael A. Keane, MAI
President Senior Vice President
State Certification #TX-1323514-G State Certification #TX-1380384-G
mitchell@toddpa.com michael@toddpa.com
Jonathan D. Martin
Appraisal Associate
State Certification #TX-1381200-G
jonathan@toddpa.com
TABLE OF CONTENTS
Section I - Introduction
Executive Summary .............................................................................................................2
Identification of the Property ................................................................................................5
Objective of the Appraisal ....................................................................................................5
Identification of the Appraisal Problem ................................................................................6
Date of Value Opinion ..........................................................................................................6
Date of Report ......................................................................................................................6
Appraisal Report Option ......................................................................................................6
Intended Use/Intended User ................................................................................................6
Statement of Prior Services Rendered ................................................................................6
Property Rights Appraised ...................................................................................................7
Definition of Market Value....................................................................................................7
Statement of Ownership ......................................................................................................8
Scope of Work .....................................................................................................................8
History of the Subject Property ............................................................................................9
Estimate of Exposure Time..................................................................................................9
Estimate of Marketing Time .............................................................................................. 10
Section II – External Influences
Regional Analysis ............................................................................................................. 13
City/Neighborhood Analysis ............................................................................................. 22
Section III - Factual Descriptions and Analyses
Site Description and Analysis ........................................................................................... 28
Zoning and Land Use Restrictions ................................................................................... 34
Tax Analysis ...................................................................................................................... 36
Subject Property Photographs .......................................................................................... 37
Subject Property Photographs .......................................................................................... 38
Highest and Best Use Analysis ........................................................................................ 41
The Appraisal Process ...................................................................................................... 44
Section IV – Land Valuation
Land Valuation .................................................................................................................. 46
Comparable Land Sales Presentation .............................................................................. 47
Land Sales Analysis.......................................................................................................... 54
Conclusion of Land Value ................................................................................................. 61
Section V - Valuation Conclusion
Final Opinion of Value ...................................................................................................... 64
Section VI – Certification & Assumptions & Limiting Conditions
Assumptions and Limiting Conditions .............................................................................. 71
Section VII - Addendum
Qualifications & Certifications of the Appraisers
SECTION I - INTRODUCTION
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 2
EXECUTIVE SUMMARY
SALIENT FACTS & CONCLUSIONS
Property Appraised: A 15.049 acre (655,534 square feet) tract of land
improved with an office warehouse and other site
improvements. The source of the land size is the
Vesting Deed (Doc. No. 2017-124619). According to
the survey provided by Teague Nall and Perkins, the
portion of the site from which property rights will
potentially be acquired involve a 0.010 acre (418
square foot) sanitary sewer easement.
Property Type: Land improved with an office warehouse and other
site improvements
Location: Southwest corner of Airport Road and I-35W
Frontage Road, Denton, Denton County, Texas
Date of Inspection: October 29, 2024
Date of Valuation: October 29, 2024
Date of Report: October 31, 2024
Property Rights Appraised: Fee Simple Estate
Ownership: NM CLFX, L.P.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 3
Land Size: Total Land: 15.049 acres (655,534 square feet)
Sanitary Sewer Easement: 0.010 acres (418 square
feet)
Status of Property: As of the date of the appraisal, the subject property
consists of a 15.049 acre (655,534 square foot) tract
of land improved with an office warehouse and other
site improvements. The subject is physically located
at the southwest corner of Airport Road and I-35W
Frontage Road in Denton, Denton County, Texas.
According to the survey provided by Teague Nall
and Perkins, the portion of the site from which
property rights will potentially be acquired involve a
0.010 acre (418 square foot) sanitary sewer
easement. The subject property currently has
access to all utilities. Furthermore, we determined
that the use of the main improvements will not be
affected by the proposed acquisition as the
acquisition is located a sufficient distance from the
main improvements and will not negatively affect
internal circulation, drainage, ingress/egress, or
utility of the remainder. Therefore, only the land
value has been estimated.
Zoning: LI, Light Industrial
HIGHEST AND BEST USE:
As If Vacant: Industrial Development
SCOPE OF WORK
Appraisal Problem Identification: To provide an opinion of market value of the fee
simple estate of the subject property in “as is”
condition and recommended compensation for the
parts to be acquired and damages to the remainder,
if any, as of the effective date of appraisal (October
29, 2024).
Objective of the Appraisal: To provide an opinion of market value of the fee
simple estate of the subject property in “as is”
condition and recommended compensation for the
parts to be acquired and damages to the remainder,
if any, as of the effective date of appraisal (October
29, 2024). It is our understanding that this opinion of
value will be utilized by the client to assist in
determining compensation regarding the potential
acquisitions by the City of Denton.
Intended User: The City of Denton and its affiliates and/or assigns
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 4
Client: The City of Denton
Valuation Approaches Used: Sales Comparison Approach
CONCLUSION OF VALUES
Opinions of Recommended Compensation
Value of the Whole Property: $4,221,238
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Remainder Before Acquisition: $4,219,775
Remainder After Acquisition: $4,219,775
Enhancements: $0
Damages: $0
Cost to Cure: $0
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Total Recommended Compensation: $1,463
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 5
IDENTIFICATION OF THE PROPERTY
As of the date of the appraisal, the subject property consists of a 15.049 acre (655,534 square
foot) tract of land improved with an office warehouse and other site improvements. The subject is
physically located at the southwest corner of Airport Road and I-35W Frontage Road in Denton,
Denton County, Texas. According to the survey provided by Teague Nall and Perkins, the portion
of the site from which property rights will potentially be acquired involve a 0.010 acre (418 square
foot) sanitary sewer easement. The subject property currently has access to all utilities. A
summary of the legal description of the subject tract is located below followed by an aerial
photograph of the subject property.
Lot 1R, in Block A, of Victor Technologies Addition, an addition to the City of Denton,
Denton County, Texas, according to the Map or Plat thereof recorded in/under
Document Number 2015-295, Map/Plat Records, Denton County, Texas.
*Aerial photograph provided by the Denton Central Appraisal District. The purple lines depict the boundaries of the subject tract. The
red lines depict the boundaries of the proposed sanitary sewer easement. Boundaries are approximations based on the survey
provided and may not be exact.
OBJECTIVE OF THE APPRAISAL
To provide an opinion of market value of the fee simple estate of the subject property in “as is”
condition and recommended compensation for the parts to be acquired and damages to the
Sanitary Sewer
Easement
0.010 acres (418 SF)
Subject Tract
15.049 Acres (655,534 SF)
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 6
remainder, if any, as of the effective date of appraisal (October 29, 2024). It is our understanding
that this opinion of value will be utilized by the client to assist in determining compensation
regarding the potential acquisitions by the City of Denton.
IDENTIFICATION OF THE APPRAISAL PROBLEM
The appraisal problem of this report is to provide an opinion of the market value of the fee simple
estate of the subject tract and recommended compensation for the parts to be acquired and
damages to the remainder, if any, as of the date of appraisal (October 29, 2024).
DATE OF VALUE OPINION
An inspection of the property was conducted on October 29, 2024. The effective date of valuation
is October 29, 2024.
DATE OF REPORT
The transmittal date of this appraisal is October 31, 2024.
APPRAISAL REPORT OPTION
This is an Appraisal Report that complies with the reporting requirements set forth under
Standards Rule 2-2 (a) of the Uniform Standards of Professional Appraisal Practice (USPAP). As
such, it presents sufficient information to enable the client and other intended users as identified
to understand it properly. The depth of discussion contained in this report is specific to the needs
of the client and the intended use of the appraisal as noted herein.
INTENDED USE/INTENDED USER
This appraisal report has been prepared for and is intended to be used by the City of Denton. The
intended use of this appraisal report has been identified by the appraisers based on
communications with the client, at the time of the assignment to assist in determining
compensation regarding the potential acquisitions by the City of Denton. Therefore, the intended
users of this report is the City of Denton. 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 Jonathan D. Martin
have rendered no services as an appraiser or in any other capacity regarding this property within
the three-year period immediately preceding acceptance of this assignment.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 7
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. “In appraisal practice,
the lessor’s, or landlord’s, position is referred to as the leased fee. The rights of the lessor (the
leased fee owner) and the lessee (leaseholder) are specified by contract terms contained in the
lease". 2 Easement ownership is defined as “the right to use another’s land for a stated purpose”.
3
The fee simple estate of the subject is being appraised, due to the lack of existence of any lease
agreements, which would encumber the property. This ownership interest is subject to any zoning
ordinances, easements, restrictions of record and other applicable codes and ordinances of
record.
DEFINITION OF MARKET VALUE
The definition of value which will be referred to in this report is "market value". The following
definition of market value is used by agencies that regulate federally insured financial institutions
in the United States. The definition of market value utilized in this report complies with Title 12,
Code of Federal Regulations, Subpart C – Subsection 34.42(g), Department of the Treasury,
Office of the Comptroller of the Currency; USPAP; and FIRREA. According to Section 34 of Title
12, Code of Federal Regulations, “market value” means:
The most probable price which a property should bring in a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller each acting prudently and
knowledgeable, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from
seller to buyer under conditions whereby:
1) Buyer and seller are typically motivated,
2) Both parties are well informed or well advised and acting in what they consider their
own best interest,
3) A reasonable time is allowed for exposure in the open market,
4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto, and,
1 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 73.
2 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 62.
3 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 58.
TODD PROPERTY ADVISORS
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5) The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale. 4
STATEMENT OF OWNERSHIP
According to information provided by the Denton Central Appraisal District and the vesting deed
records, title of the subject is vested in NM CLFX, L.P..
SCOPE OF WORK
The scope of work is defined as the type and extent of research and analysis in an assignment.
The scope of this appraisal assignment is to provide a credible opinion of the market value of the
subject property in “as is” condition and recommended compensation for the parts to be acquired
and damages to the remainder, if any, as of the effective date of appraisal (October 29, 2024). In
compliance with the 2024 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. 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 sanitary sewer easement purposes and our knowledge of the local market, we are
competent to complete this appraisal assignment.
The subject appraisal research began with a review of the three year history of the subject
property prior to the date of appraisal by conducting research of the Denton County public records.
This research was facilitated by several on-line resources including CoStar.com, the Denton
Central Appraisal District, and Loopnet.com, as well as several other resources including owners,
buyers, lenders and other parties knowledgeable of the subject property. The Regional, City, and
Neighborhood Analyses are presented in a summarized format and include information gathered
through inspection of the areas, review of published secondary data, such as that provided by the
4 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 49.
TODD PROPERTY ADVISORS
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24.1024-C 9
North Central Texas Council of Governments, and a variety of resources available from the Cities
of Dallas, Fort Worth, and other surrounding communities comprising the Metroplex.
The site analysis included an inspection by the appraisers and a review of FEMA flood insurance
rate maps, and aerial photographs via satellite. The property inspection included a visual survey
of the subject on October 29, 2024. The applicable zoning ordinance of the subject property was
verified with the zoning records of the City of Denton. The tax rates, assessed values, and
information regarding the subject's tax debt were verified by the Denton Central Appraisal District
and the individual taxing jurisdictions via the appraisal district’s website.
Primary data regarding the subject submarket and the immediate surrounding area was verified
by the appraisers through an inspection of the area, and interviews conducted with owners, real
estate brokers, and management company representatives. To complete this appraisal
assignment, the Sales Comparison Approach was considered and utilized. All data gathered
within this approach regarding properties similar to the subject have been previously verified with
either the Grantor, the Grantee, or their representatives through their respective sources. A more
detailed explanation of the methods and techniques employed in these approaches is located in
the Valuation Process section of this report.
Furthermore, we determined that the use of the main improvements will not be affected by the
proposed acquisition as the acquisition is located a sufficient distance from the main
improvements and will not negatively affect internal circulation, drainage, ingress/egress, or utility
of the remainder. Therefore, only the land value has been estimated.
HISTORY OF THE SUBJECT PROPERTY
The subject property sales history was researched through a search available from the Denton
Central Appraisal District property records, CoStar.com, and Loopnet.com among various other
sources. According to the Denton County Deed Records, title of the subject is vested in NM CLFX,
L.P.. No arm’s length conveyances have been uncovered regarding the subject during the last
three years. Furthermore, to the best of our knowledge, the subject was not under contract to be
sold at the time of this appraisal.
ESTIMATE OF EXPOSURE TIME
A reasonable exposure period is the amount of time necessary to expose a property to the open
market in order to achieve a sale. According to USPAP 2024, exposure time is defined as, “an
estimated length of time that the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date
of the appraisal.” It is our opinion that a period of six to nine months, with a contract period of 90
days is reasonable. This results in a total exposure time until closing at a title company of nine to
twelve months. We performed due diligence in estimating the exposure period for the subject
property by surveying the marketing period for comparable properties which had recently sold or
were placed under contract. Additionally, the brokers contacted in verifying the comparable
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 10
improved sales within this report generally indicated that exposure times during the last twelve
months have typically ranged from six to twelve months.
It was observed that properties are often marketed for several months or years with very little
interest shown in the property. However, they eventually sell after significant price reductions. A
common tendency among the majority of these sales is that once these properties experience
price reductions, which are believed to bring them into alignment with the rest of the market, their
exposure time was typically less than one year. The price reductions and recognition of market
derived values is reflected in the comparables' sales prices. This is to the extent that the sales
price as represented by the value conclusion for the subject is attractive to an investor today.
Thus, this attractive price should result in a normal exposure of less than one year. Therefore, it
is our opinion that had the subject property been marketed at or very near the "as is" value
conclusion contained herein, it would have been sufficiently attractive to entice an investor to
purchase the property within a nine to twelve month exposure period.
ESTIMATE OF MARKETING TIME
Marketing time is defined as “An opinion of the amount of time to sell a property interest at the
concluded market value or at a benchmark price during the period immediately after the effective
date of an appraisal. Marketing time differs from exposure time, which precedes the effective date
of an appraisal.” 5 Thus, marketing time is an estimate of the amount of time necessary to sell a
property after the date of appraisal, which differs from exposure time which is a retrospective
estimate of the amount of time necessary to achieve a sale prior to the effective date of appraisal.
It is our opinion that a marketing period of six to nine months, with a contract period of 90 days is
reasonable. This results in a total marketing time until closing at a title company of nine to twelve
months. We performed due diligence in estimating the marketing period for the subject property
by surveying the marketing period for comparable properties which had recently sold or were
placed under contract. A common tendency among the majority of the sales is that once these
properties experience price reductions which are believed to bring them into alignment with the
rest of the market, their marketing period is typically less than one year. For example, properties
are often marketed for several years with very little interest shown in the property. However, they
eventually sell after significant price reductions. The price reductions and recognition of market
derived values is reflected in the comparables' sales prices. This is to the extent that the sales
price as represented by the value conclusion for the subject is attractive to an investor today.
Thus, this attractive price should result in a normal marketing period of less than one year.
Therefore, it is our opinion that if the subject property is marketed at or very near the value
5 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 117.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
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conclusion contained herein, it will be sufficiently attractive to entice an investor or user to
purchase the property within a twelve month marketing period.
SECTION II – EXTERNAL INFLUENCES
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 13
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.
Dallas-Fort Worth-Arlington Consolidated Metropolitan Statistical Area (CMSA) encompasses
approximately 9,289 square miles in north central Texas. The Dallas-Fort Worth-Arlington CMSA
is comprised of 12 counties: Collin, Dallas, Denton, Tarrant, Johnson, Kaufman, Parker, Rockwall,
Hunt, Wise, Delta and Ellis. This CMSA, which is also referred to as the D/FW area or Metroplex,
is located 203 miles northeast of Austin, 240 miles northwest of Houston and 206 miles south of
Oklahoma City. On a national level, the Metroplex is located in the southern central sector of the
country. The Dallas/Fort Worth area is located approximately equidistant from both coasts and
from the four major concentrations of population in North America: New York, Chicago, Los
Angeles and Mexico City. The following is a discussion of the aforementioned forces that exert
influence on property value.
Subject Property
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Environmental
The Dallas-Fort Worth climate is humid subtropical with hot summers. It is also considered to be
continental, characterized by a wide annual temperature range. The amount of precipitation
usually varies and ranges from less than 20" to more than 50". D/FW winters are somewhat mild,
but occasionally there are sudden drops in temperature. Periods of extreme cold that occasionally
occur are short-lived, so that even in January mild weather occurs frequently. During the summer,
the high temperatures are associated with fair skies, westerly winds, and low humidity’s. Average
high and low temperatures range from 37 F in January to 98 F in August. Rainfall occurs
throughout the year, but usually occurs more frequently during the night and also during the
spring. Usually, periods of rainy weather last for only a day or two, and are followed by several
days with fair skies. Moderate hail may occur on about two or three days a year, only causing
slight and scattered damage. However, windstorms occurring during thunderstorm activity may
be destructive. Snowfall is rare. The average length of the warm seasons (freeze-free period) is
about 249 days, or about 8 months. Thus, the local climate is very conducive of real estate
development.
The area's topography is basically level in the northern sector to gently rolling in the southern
portion. The rolling terrain of the southern sector is due to a geologic formation known as the
escarpment. This escarpment consists of a chalky soil that rests on top of shales causing unstable
building foundations. The shale soil presents shrink-swell problems for the foundations of
buildings that are constructed on it, and the chalk is an unstable soil that crumbles easily, resulting
in minor landslides.
Transportation
As stated above, on a national basis, the Dallas/Fort Worth Metroplex is centrally located, which
has resulted in the development of a major transportation network that connects the Metroplex
with the rest of the country. This network consists of major thoroughfares, railroad lines and air
carriers. In regards to roadways, the Dallas/Fort Worth region is located at the convergence of
four Interstate Highways: north-south access is provided by Interstate Highways 35 and 45 (IH-
35 and IH-45); east-west access is provided by IH-20 and IH-30. Two major outer loops provide
internal accessibility to the region. LBJ Freeway (IH-635) surrounds Dallas, and IH-820
encompasses Fort Worth. Both of these arteries connect with the interstate highways as well as
local streets, thus affording the cities regional as well as internal access. In recent years, greater
access and mobility have been expanded to the Metroplex’s surrounding communities. The
President George Bush Toll Road (SH-190) is a loop encircling IH-635 that connects IH-30 in
Garland/Rockwall to IH-20 in Grand Prairie traversing the communities of Rowlett, Mesquite,
Garland, Richardson, Plano, Carrollton, Coppell, Irving, Arlington and Grand Prairie. Additionally,
the North Texas Tollway Authority (NTTA) recently opened the Chisholm Trail Parkway
connecting the Downtown Fort Worth Business District with communities to the south including
Benbrook, Crowley, Joshua and connecting with SH-67 in Cleburne.
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Two additional toll roads which serve the Metroplex are the Dallas North Tollway and the Sam
Rayburn Tollway (SRT). SH-121(located north of SH-190) has expanded to incorporate and
become the SRT. While SH-121 continues to run east-west from Fort Worth to McKinney
connecting DFW Airport to other areas of the Metropolitan area, the SRT has provided a larger
artery for traffic to flow between the communities of Grapevine, Coppell, Carrollton, Plano, Frisco,
Allen and McKinney. The Dallas North Tollway connects downtown Dallas to the rapidly growing
areas of Frisco and Prosper. The Sam Rayburn Tollway connects central Collin County to the
vicinity of the DFW International Airport.
Reference may be made to Mobility 2040 which was adopted by the Regional Transportation
Council in March of 2016. This long range strategic plan aims to define the vision for the Region’s
transportation system and identify solutions and options. The goals of the plan are to improve
mobility, quality of life, and air quality concerns for the cities of Dallas and Fort Worth as well as
the surrounding areas. In addition, properties located along or near new or improved
thoroughfares should benefit from this plan through better access and exposure. It is worthy to
note that the region is also serviced by multiple public transportation services including bus, rail
and light rail. These services include Dallas Area Rapid Transit (DART), DART Light Rail, the Fort
Worth Transportation Authority (FWTA or The T), the Trinity Railway Express (TRE), and the
Denton County Transportation Authority (DCTA).
In addition to the various modes of ground transportation, the Metroplex is serviced by a major
international airport as well as several other local and regional airports. D/FW International Airport,
located midway between Dallas and Fort Worth, has the 2nd largest land area of any other airport
in the nation with 17,207 acres and the fourth largest in the world. In 2016, D/FW was responsible
for 65,670,697 passengers reaching their destinations, making it the world’s 11th busiest airport
in number of passengers, with service provided by 9 international and 11 domestic airlines. As of
December 2018 DFW Airport provides transportation to more than 244 destinations including 62
international and 182 domestic destinations with the number of daily flights just under 3,000
including passenger and freight. Additionally, DFW is one of 3 domestic airports and 11 globally
providing service to more than 200 destinations around the world.
The City of Dallas owns and operates Dallas Love Field. The airfield is located six miles northwest
of the downtown central business district and is managed by the City's Department of Aviation.
Southwest Airlines is the predominant user of Love Field; however, Alaska Airlines and Delta
Airlines also utilize Love Field. In 1963, several airlines had all agreed to seek full repeal of the
Wright Amendment; which restricted direct flights to other states from Love Field. In 2008, the
airport handled approximately 8,060,000 passengers. On October 13, 2014, the Wright
Amendment had been repealed and new non-stop service to several cities began. This has led
to significant increases in passenger traffic. Southwest Airlines added numerous other cities in
the beginning of 2015. In 2016, the airport handled approximately 15,563,000 passengers. To
accommodate the increase in traffic construction on a new parking garage was constructed and
opened in 2018.
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Commercial air freight service is provided to the region by the Alliance International Centre which
is the first development of its type in the world. This Fort Worth based facility comprises a 3,000-
acre cargo airport/industrial park. Meacham Field (Fort Worth), Addison Airport (North Dallas) and
several other municipal airports, provide for the area’s general aviation needs.
Social
According to The Appraisal of Real Estate, Fifteenth Edition, social forces studied by appraisers
primarily relate to population characteristics. Because the demographic composition of the
population reveals the potential demand for real estate, proper analysis and interpretation of
demographic trends are required. Real property values are affected not only by population
changes and characteristics, but also by the entire spectrum of human activity. The total
population, its composition by age and gender, and the rate of household formation and
dissolution strongly influence real property values. Social forces are also manifest in attitudes
toward education, law and order, and lifestyle options. This section of the report will identify all
social forces that may have an effect on the value of the subject property.
According to the North Central Texas Council of Governments (NCTCOG) 2023 population
estimates, North Central Texas estimated that the region had added approximately 161,433 new
residents between 2022 and 2023 for a total population of 8,284,892. A chart detailing the
individual county growth rates is located below included the most recent year over year data.
The estimated January 1, 2023, population for the NCTCOG region is 8,284,892. Last year the
region added 161,433 people, over 4,000 more residents than were added in 2021. Fort Worth
(18,943) added more population than any other city, almost double compared to the next closest
city. Celina (9,787), Frisco (7,602), Arlington (5,861) and Mansfield (5,245) round out the top 5
growth cities. For the second straight year, Collin County added more than 40,000 new residents
while Denton County and Tarrant County each added over 30,000 new people. Since 2020,
453,000 new residents now call north Texas home.”
County Name
2012 Est.
Pop.
Apr. 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
2021 Est.
Pop.
Jan. 1
2022 Est.
Pop.
Jan. 1
2023 Est.
Pop.
Jan. 1
Jan. 2022
to Jan.
2023 Abs.
Change
Jan. 2022
to Jan.
2023 %
Change
Collin 795,390 827,780 851,920 873,840 901,170 932,530 969,780 1,010,330 1,039,540 1,082,760 1,135,058 1,175,974 40,916 3.60%
Dallas 2,383,790 2,415,060 2,435,800 2,455,050 2,478,970 2,502,270 2,529,150 2,554,770 2,593,570 2,619,040 2,656,297 2,675,009 18,712 0.70%
Denton 677,880 714,000 736,900 761,040 784,840 814,560 844,260 874,240 902,190 933,220 975,158 1,006,492 31,334 3.21%
Ellis 152,570 158,070 161,200 165,010 168,690 173,410 183,360 189,820 198,640 206,810 207,623 218,125 10,502 5.06%
Erath 38,340 40,700 41,010 41,460 43,540 43,850 44,200 44,700 45,670 46,180 43,322 43,287 (35)-0.08%
Hood 53,670 58,880 61,680 64,400 64,620 64,840 65,060 65,960 66,890 66,920 62,116 62,511 395 0.64%
Hunt 87,840 90,070 91,240 92,530 93,110 94,350 95,960 97,410 99,300 101,510 104,903 109,127 4,224 4.03%
Johnson 151,790 155,240 156,710 158,880 161,670 164,970 169,160 173,700 178,260 185,180 193,494 201,427 7,933 4.10%
Kaufman 104,050 106,400 108,120 109,300 113,530 116,140 119,670 124,850 128,520 132,250 153,130 158,672 5,542 3.62%
Navarro 47,940 48,470 48,590 48,900 49,030 49,170 49,740 50,250 50,870 51,670 53,612 55,639 2,027 3.78%
Palo Pinto 28,290 28,420 28,590 28,710 28,660 28,660 28,710 28,820 28,960 29,360 28,776 29,277 501 1.74%
Parker 118,040 120,640 121,830 124,630 127,980 130,150 131,210 134,620 136,600 139,180 152,928 155,607 2,679 1.75%
Rockwall 79,570 83,400 85,900 88,200 90,570 93,130 97,990 101,020 107,780 113,350 119,897 124,734 4,837 4.03%
Somervell 8,550 8,690 8,800 8,950 9,230 9,420 9,640 9,820 9,980 10,190 9,662 9,899 237 2.45%
Tarrant 1,832,660 1,875,930 1,899,900 1,922,470 1,945,320 1,966,440 1,989,810 2,024,030 2,064,340 2,091,320 2,157,741 2,188,951 31,210 1.45%
Wise 59,600 60,920 61,690 61,970 62,240 62,460 62,700 64,060 65,300 66,010 69,741 70,159 418 0.60%
16-County Region 6,619,970 6,792,670 6,899,880 7,005,340 7,123,170 7,246,350 7,390,400 7,548,400 7,716,410 7,874,950 8,123,458 8,284,890 161,432 1.99%
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Economic
Economic forces have a direct and obvious effect on property values. The condition of an area's
economy in great measure determines the growth or decline of the population, as well as its
purchasing power, which affect the demand for goods and services. If an area's economy is in a
growth stage, construction of new housing, retail centers and expansions of employment centers
occur to accommodate the needs of the population. Conversely, as the unemployment rate rises
because of an area's declining economy, some residents move from the area, and those who
remain may have decreased disposable incomes, both of which result in a diminished demand
for housing as well as goods and services. As occupancy rates for housing, retail facilities, and
employment centers decrease, demand for new construction either decreases or may even cease
altogether. Characteristics that are considered to be demand-oriented include employment levels,
the number and size of basic industries, and the availability of mortgage credit. Economic
characteristics that are considered to be supply-oriented include the stock of available vacant and
improved properties, occupancy rates, and rental rates.
Apartment markets continue to fare better than expected, with occupancy and rents improving in
most Texas metros. According to the 3rd Quarter 2024 CoStar analytics report, the Dallas/Fort
Worth area apartment asking rent has decreased approximately 1.3% (YOY). Additionally, CoStar
reports, “Multifamily demand in Dallas-Fort Worth is rebounding, reflecting greater confidence
among households to sign leases. CoStar reports net absorption of about 15,200 units through
the first half of 2024, outpacing pre-pandemic levels. Even so, the supply/demand imbalance
persists as developers added 21,900 units in the first half of the year, keeping vacancy elevated
at 10.9%, up 110 basis points year-over-year and holding near a 20-year high. In turn, rent growth
remains negative at -1.3%, dampened by supply-heavy submarkets.”
The D/FW Metroplex has an excellent transportation network, a good central U.S. location, and a
relatively low cost of living compared to other parts of the U.S., which attracts major corporate
employers. D/FW is a major product distribution center and it is a major trade hub with Mexico
and other sectors across Latin America. The Emerging Trends in Real Estate markets-to-watch
survey for 2018 revealed the Dallas/Fort Worth market as the number-five market to watch. The
area is considered to continue strong growth due to projected population increases and corporate
relocations. Multiple survey respondents and interviewees mentioned the strong job growth
driving the local economy. (Emerging Trends in Real Estate, United States and Canada 2018,
PricewaterhouseCoopers LLP and Urban Land Institute). D/FW is also known for its large
technology influence, and provides business services such as advertising, data processing,
telecommunications, and other computer services. As mentioned previously, the transportation
industry will continue to play an important part of the economy, due to D/FW International Airport’s
large influence.
According to the NCTCOG Forecast 2040, total employment for the region is anticipated to grow
in excess of 2,750,000 jobs between 2010 and 2040. Dallas County alone is expected to
encounter over 1.3 million new jobs during this time period accounting for more than 45% of the
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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 August
2024 Economic Profiles and is currently the most recent available.
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10/7/2024 12:39:47 PM
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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
Total Nonfarm employment easily erased monthly job losses in June and July with the addition of
78,000 positions in August. This gain brought the series to a record-high level of 14,239,200 and
boosted the annual growth rate to 2.2 percent. Monthly growth was largely driven by gains in the
Total Private sector, which posted an increase of 71,600 jobs in August and also reached a new
record employment level. All 11 major industries added jobs over the month, and 10 major
industries grew over the year. Six private industries achieved new series highs in August.
Leisure and Hospitality employment reached a new series high level in August with a monthly
gain of 15,500 jobs, the largest monthly gain seen in the series since January 2023. The
Accommodation and Food Services subsector posted a gain of 17,000 jobs and a new series high
employment level in August, while Arts, Entertainment, and Recreation shed 1,500 positions over
the month. Professional and Business Services employment partially recovered from two months
of declines with 12,700 positions gained over the month in August. Administrative and Support
and Waste Management and Remediation Services, which drove those previous declines, added
7,400 jobs in August. Trade, Transportation, and Utilities grew by 9,600 positions over the month
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in August to set a new series high. Wholesale Trade set a sixth consecutive series high with the
addition of 4,900 positions.
As illustrated in the recent statistics, the Dallas-Fort Worth-Arlington Metroplex continues to be
one of the fastest growing areas of the United States. This trend is expected to continue in the
future and through the year 2030, as population is expected to reach 9.1 million. More employers
are expected to migrate to D/FW, and therefore provide an increased number of jobs. Dallas/Fort
Worth accounts for over 30 percent of the State’s gross regional product and is a national leader
in the creation of new jobs, corporate relocations, and technology-related businesses. One of the
primary factors in maintaining this employment growth is excellent access to the area provided
by a well-developed highway system and D/FW International Airport, as well as an extensive rail
transportation system. Since the late 1990s, the D/FW economy has shown good signs of growth
and stability. Many experts are guardedly optimistic about the current economic outlook as it
compares favorably to a softening national economy and the last two years of erratic energy
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.
Civilian Labor Force Estimated for Texas and the United States
Seasonally Adjusted (In Thousands)
Yearly Yearly
Aug-24 Jul-24 Aug-23 Change Aug-24 Jul-24 Aug-23 Change
Civilian Labor Force 15,487,812 15,453,836 15,125,794 362,018 Civilian Labor Force 168,763,000 169,723,000 168,049,000 714,000
Employed 14,810,755 14,776,091 14,485,031 325,724 Employed 161,348,000 162,038,000 161,427,000 -79,000
Unemployed 677,057 677,745 640,763 36,294 Unemployed 7,415,000 7,685,000 6,623,000 792,000
Unemployment Rate 4.4%4.4%4.2%0.2%Unemployment Rate 4.4%4.5%3.9%0.5%
TX Labor Force Statistics US Labor Force Statistics
Seasonally Adjusted (In Thousands)
Texas Employment by Industry
Total Nonagricultural 13,760,912 100.0%13,883,314 100.0%13,516,597 100.0%-0.9%1.8%
Total Private 13,267,144 96.4%13,392,340 96.5%13,043,996 96.5%-0.9%1.7%
Goods Producing 2,114,904 15.4%2,104,363 15.2%2,053,567 15.2%0.5%3.0%
Natural Resources and Mining 275,213 2.0%270,649 1.9%268,081 2.0%1.7%2.7%
Construction 870,263 6.3%868,515 6.3%837,194 6.2%0.2%3.9%
Manufacturing 969,428 7.0%965,199 7.0%948,292 7.0%0.4%2.2%
Service Providing 11,646,008 84.6%11,778,951 84.8%11,463,030 84.8%-1.1%1.6%
Trade, Transportation, and Utilities 2,836,345 20.6%2,907,745 20.9%2,817,253 20.8%-2.5%0.7%
Information 233,552 1.7%238,162 1.7%243,885 1.8%-1.9%-4.2%
Financial Activities 900,881 6.5%891,422 6.4%877,417 6.5%1.1%2.7%
Professional and Business Services 2,115,659 15.4%2,158,830 15.5%2,129,952 15.8%-2.0%-0.7%
Education and Health Services 3,198,281 23.2%3,210,444 23.1%3,096,357 22.9%-0.4%3.3%
Leisure and Hospitality 1,493,488 10.9%1,510,425 10.9%1,463,515 10.8%-1.1%2.0%
Other Services 374,034 2.7%370,949 2.7%362,050 2.7%0.8%3.3%
Public Administration 493,768 3.6%490,974 3.5%472,601 3.5%0.6%4.5%0
% of Total % of Total % of Total Quarterly
Change
Yearly
ChangeINDUSTRY TITLE Q1 2024
Employment
Q4 2023
Employment
Q1 2023
Employment
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CITY/NEIGHBORHOOD ANALYSIS
A neighborhood is defined in The Appraisal of Real Estate, Fifteenth Edition, published by the
Appraisal Institute, as a group of complementary land uses. 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 following neighborhood description will include a definition of the boundaries of the subject
neighborhood, a discussion of the primary thoroughfares, types of improvements along these
thoroughfares, the density of development, secondary street infrastructure, and a discussion of
the type of commercial uses within the neighborhood. The subject neighborhood, as defined
herein, is considered to be the immediate competing trade area for the subject property, taking
Subject Property
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into account the various types of land uses present or reasonably probable in the neighborhood,
patterns and rates of growth, traffic patterns and density, and the density of land use, among other
factors considered in the previously suggested steps. All of these factors are considered
influential in the determination of the value of the subject.
Neighborhood Boundaries
The subject site is physically located at the southwest corner of Airport Road and I-35W Frontage
Road in Denton, Denton County, Texas, 76207. The neighborhood is defined as the zip code
76207. The neighborhood has good accessibility given its proximity to U.S 380, Interstate
Highway 35, and the major transportation nodes.
Location
The subject property is located in Denton, Texas, in Denton County. The site is heavily influenced
by the Dallas/Fort Worth Metroplex. The subject property is located approximately 40 miles north
of the Dallas Central Business District. Primary north/south roadways within the neighborhood
include the following: Western Boulevard. Primary east/west roadways include the following: Jim
Christal Road, U.S. 380 and FM 2449.
Population
As can be seen in the following charts provided via the Site to do Business, the 2024 population
estimate was 22,951. The population has grown at a steady rate of 9.06 percent annually since
2020. Population between 2024 and 2029 is expected to grow at a steady rate of 6.78 percent
annually. The charts for population and household growth are located below.
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Income
According to the Site to do Business, the 2024 median household income within the neighborhood
was $85,733, which is above the national average of $79,068. Income is projected to increase at
a relatively steady rate of 2.92% over the next five years. Located below is a chart detailing the
median, average and per capita income for the subject neighborhood.
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Employment
According to the Site to do Business, employment was relatively high with a low unemployment
rate of 3.2%. The main industries within the city include Services, Manufacturing, and Retail
Trade. Approximately 62.0% of residents work in white-collar jobs. Approximately 23.5% of
residents work in blue-collar jobs.
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Conclusion
The neighborhood has been impacted positively by a recovery and growth in the national
economy over the last decade. The progress has continued into 2024 and is anticipated to
continue into the near future. The D/FW market in general experienced economic growth and
remained attractive for investment opportunities. Given this, indications were that market
conditions within this neighborhood were moving in a positive direction.
SECTION III - FACTUAL DESCRIPTIONS AND ANALYSES
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SITE DESCRIPTION AND ANALYSIS
Site description consists of comprehensive factual data, information on land use restrictions, a
legal description, other title and record data, and information on pertinent physical characteristics.
Site analysis goes further. It is a careful study of factual data in relation to the market area
characteristics that create, enhance, or detract from the utility and marketability of specific land
or a given site as compared with other sites that it competes with. 6
Location and Legal Description
The subject is physically located at the southwest corner of Airport Road and I-35W Frontage
Road in Denton, Denton County, Texas. The following is a summarized legal description for the
subject site.
Lot 1R, in Block A, of Victor Technologies Addition, an addition to the City of Denton,
Denton County, Texas, according to the Map or Plat thereof recorded in/under
Document Number 2015-295, Map/Plat Records, Denton County, Texas.
Size and Shape
According to the Denton Central Appraisal District, the subject consists of a tract of land improved
with an office warehouse and other site improvements totaling 15.049 acres (655,534 square
feet). The tract is near rectangular in shape. According to the survey provided by Teague Nall and
Perkins (located below), the portion of the site from which property rights will potentially be
acquired involve a 0.010 acre (418 square foot) sanitary sewer easement.
6 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, page 165.
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Survey of the Acquisition
*The proposed sanitary sewer easement area is highlighted in red
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Access and Exposure
The subject site currently has access to Airport Road and I-35W Frontage Road and is considered
to have good ingress/egress. At the subject, Airport Road is currently a two-lane, bi-directional,
concrete paved primary thoroughfare. At the subject, I-35W Frontage Road is currently a two-
lane, one-way, concrete paved primary thoroughfare. Given the subject property’s location,
access and exposure to the site is considered to be good.
Parcel Map
Subject Property
Topography
The topography of the subject tract is generally level and considered at street grade. Furthermore,
the topography should not limit the use of the property.
Environmental Concerns
The existence of any hazardous substances or materials was not observed upon the physical
inspection of the tract. However, we are not qualified to detect these substances. It should be
noted that the opinions of value found within this report are contingent upon the subject property
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being free of any hazardous wastes deposited thereupon by the present or previous
owners/tenants of the sites, which would adversely affect the value of the property.
Flood Zone
Approximately 16 percent of the whole subject property, and approximately 100 percent of the
proposed sanitary sewer easement acquisition, appears to lie within the 100-year flood zone or
regulatory floodway, according to Community-Panel Number 48121C0360G dated April 18, 2011,
as prepared by the Federal Emergency Management Agency (FEMA) National Flood Insurance
Program. A copy of the FEMA map for the subject property is located as follows:
Subject Property
Soils
Strict attention should be taken to the soils, insofar as preliminary site work preparation and
excavation is concerned, as damage may occur to improvements if proper precautions are not
undertaken. However, these soil characteristics are very common throughout the region and
should not seriously hinder the development potential of the site, provided proper site preparation
and planning is undertaken. Based upon the extent of development in the subject neighborhood,
there is no anticipated difficulty with improvements built upon these subsoil conditions, assuming
proper design and workmanship.
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Surrounding Land Uses
The land usage surrounding the subject property consists of University of North Texas facilities,
vacant land, and industrial uses. University of North Texas facilities are located to the northwest.
Vacant land is located to the north, south, and southwest. Industrial uses are located to the west,
northeast, and southeast. An aerial photograph depicting the subject in relation to surrounding
properties is located as follows.
Subject Property
Easements
According to the survey provided, the subject appears to be encumbered by typical utility
easements along the periphery of the subject. We were not furnished, and it is beyond the defined
scope of our assignment to obtain title work for the subject property. For purposes of this analysis,
we are assuming that only typical utility easements exist and that they would not, and/or have not
adversely affected development of the subject property. If this assumption is not correct it could
necessitate re-analysis.
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Utilities and Public Services
The subject property has access to all utilities. Telephone and electricity services are available
from multiple providers, and natural gas is provided to the area from Atmos Energy. The subject
is also serviced by public services, including police and fire protection.
Conclusion
The subject property is located in the City of Denton in Denton County. The site is comprised of
15.049 acres (655,534 square feet), is near rectangular in shape, and has access to all utilities.
The site has good access/exposure characteristics for an industrial-oriented property. The
topography of the subject tract is level and should not limit the use of the property. Approximately
16 percent of the subject property, and approximately 100 percent of the proposed sanitary sewer
easement acquisition, appears to lie within the 100-year flood zone or regulatory floodway. It
should be noted that the entirety of the proposed sanitary sewer easement lies within the flood
plain. Soil and subsoil conditions are not anticipated to severely restrict the development potential
of the site. The tract does not appear to be encumbered by any severe easements or
encroachments. Furthermore, we determined that the use of the main improvements will not be
affected by the proposed acquisition as the acquisition is located a sufficient distance from the
main improvements and will not negatively affect internal circulation, drainage, ingress/egress, or
utility of the remainder. Therefore, only the land value has been estimated.
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ZONING AND LAND USE RESTRICTIONS
The subject tract is within the corporate limits of the City of Denton. The tract is currently zoned
LI, Light Industrial. According to the Denton Code of Ordinances, the LI, Light Industrial District is
intended “to provide locations for a variety of light industrial and employment uses such as light
manufacturing, assembly, fabrication, warehousing and distributing, indoor and outdoor storage,
and a wide range of supporting commercial uses and activities. The LI district provides a variety
of transportation options for access including transit, bicycle, and pedestrian facilities. The LI
district provides appropriate transitions to surrounding uses and lower-intensity districts, and is
sensitive to the adjacent built and natural context.” It appears the subject is currently a legally
conforming use. A copy of the City of Denton zoning map as well as zoning requirements for the
subject can be found following this paragraph.
Zoning Map
Subject Property
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There are no other known deed restrictions, either public or private, that would further limit the
utilization of the subject property. This statement should not be taken as a guarantee or warranty
that no such restrictions exist. Deed and title examinations by a competent attorney on the
property appraised is recommended if any questions regarding such restrictions should arise.
Deed restrictions are matters legal in character within the State of Texas, and only title
examination by a qualified attorney can result in an informed opinion. Should there be a question
regarding the compliance with any existing deed restrictions, we recommend a title examination
by a licensed and qualified title attorney to the extent assurances to this matter are desired.
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TAX ANALYSIS
The Texas legislature has provided for a unified system of taxation for the assessment and
collection of real property taxes. In each county an appraisal district is established for the purpose
of listing and assessing all real estate within the county. Real property is presumably assessed at
100 percent of market value. Once the taxable value of the property is established by the appraisal
district, each of the individual taxing authorities within the county set their own tax rates. The
subject property is assessed by the Denton Central Appraisal District. The following table depicts
the taxing jurisdictions and historical property tax rates pertaining to the subject property:
As the above table indicates, the overall tax rate for property located within this portion of Denton
County have been decreasing by 4.40 percent per year during the five year period. Tax rates are
anticipated to remain relatively flat in subsequent years. The subject account number and
assessed value are as follows:
The subject has a 2024 assessed value of $23,500,000. This equates to a tax expense of
$448,701 based upon a 2023 tax rate of $1.909367/$100 of taxable value. Based on our “as is”
opinion of value, the land portion of the subject appears to be underassessed.
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SUBJECT PROPERTY PHOTOGRAPHS
Viewing southeast across the subject property
Viewing southwest across the subject property/acquisition area
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SUBJECT PROPERTY PHOTOGRAPHS
Viewing south across the subject property
Viewing southwest across the subject property/acquisition area
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SUBJECT PROPERTY PHOTOGRAPHS
Viewing east down Airport Road from subject
Viewing west down Airport Road from subject
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SUBJECT PROPERTY PHOTOGRAPHS
Viewing south down I-35W Frontage Road from subject
Viewing west down Airport Road from subject
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HIGHEST AND BEST USE ANALYSIS
The economic principles which affect the market value of real property also play a significant role
in forming the property's highest and best use. In all valuation assignments, value opinions are
based upon use. The highest and best use of a property provides the foundation for a thorough
investigation of the competitive positions of market participants. Consequently, highest and best
use can be described as the foundation upon which market value rests. The highest and best use
of a property is defined as follows:
The reasonably probable use of property that results in the highest value. The four
criteria that the highest and best use must meet are legal permissibility, physical
possibility, financial feasibility, and maximum productivity. 7
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. 8
7 The Appraisal Institute, The Dictionary of Real Estate Appraisal (Seventh Edition), Chicago, Illinois, 2022, page 88.
8 Ibid. page 126.
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To test for the most feasible or the highest and best use for land as vacant all logical and feasible
alternatives must be analyzed. All alternative uses must meet four criteria. The criteria are as
follows:
1) The legal use of the site – what uses of the site are permitted under applicable
zoning ordinances and other legal restrictions.
2) The physical use of the site – what potential uses of the site are physically
possible.
3) The feasible use of the site – what possible and legally permissible use of the site
will produce a positive return.
4) The maximum productive use of the site – among the highest financially feasible
uses, the use that provides the highest rate of return, or value (given a constant
rate of return), is the highest and best use.
While some investors/developers seek to maximize their returns, most seem to operate on the
belief that the available information is too imperfect to permit optimization or maximization. It
appears that the typical investor is satisfied if their investment can be expected to return a yield
that will meet their standards. Thus, it is possible for more than one single use to be feasible for
a site if the uses meet an investment criteria of the typical investor/developer for a property.
Generally accepted professional appraisal practice dictates that in appraising improved property,
the highest and best use be estimated under two different premises. First, the highest and best
use of the site “as vacant and available” must be estimated. The second analysis estimates the
highest and best use of the property “as improved or proposed to be improved.”
Highest and Best Use of the Site As If Vacant
The first question to be answered, What uses are legally permissible? requires a review of the
zoning restrictions applicable to the site. As indicated in the Zoning and Land Use Restrictions
section of this report, the subject property is zoned LI, Light Industrial District. According to the
Denton Code of Ordinances, the LI, Light Industrial District is intended “to provide locations for a
variety of light industrial and employment uses such as light manufacturing, assembly, fabrication,
warehousing and distributing, indoor and outdoor storage, and a wide range of supporting
commercial uses and activities. The LI district provides a variety of transportation options for
access including transit, bicycle, and pedestrian facilities. The LI district provides appropriate
transitions to surrounding uses and lower-intensity districts, and is sensitive to the adjacent built
and natural context.” Therefore, various types of uses are considered to be legally permissible
uses of the site.
Addressing the second question, What uses of the site are physically possible? requires a
review of the physical characteristics of the site. The subject tract is near rectangular in shape
and is physically located at the southwest corner of Airport Road and I-35W Frontage Road in
Denton, Texas. The subject property consists of 15.049 acres. The size of a parcel of land is
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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 immediate
surrounding area is predominantly industrial uses, university facilities, and vacant land.
This 15.049 acre site would be physically feasible to develop due to its shape and size. The site
is generally level which is beneficial for most types of development. As discussed previously,
Approximately 16 percent of the whole tract, and approximately 100 percent of the proposed
sanitary sewer easement acquisition, appears to lie within the 100-year flood plain or regulatory
floodway. Given the property's location in a developing community and considering its location
along a primary thoroughfare, the subject site would lend itself well to industrial development.
Answering the third and fourth questions, What uses are financially feasible? and What uses
are maximally productive? requires an analysis of potential income based on demand that could
be expected from all physically possible and legally permissible uses.
Upon inspection of the surrounding neighborhood, the current land sales within the subject
neighborhood have been acquired for either investments or industrial development. Given the
subject’s location along a primary thoroughfare, industrial use appears to be the most likely
potential use of the site and is considered to be financially feasible. Therefore, the highest and
best use of the site is for industrial use.
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THE APPRAISAL PROCESS
The appraisal process represents a logical analysis of the factors that bear upon the present value
of real estate. In this process, three basic approaches are typically used by appraisers: 1) the
Cost Approach, 2) the Income Capitalization Approach, and 3) the Sales Comparison Approach.
The Cost Approach is based upon the proposition that an informed purchaser would pay no more
than the cost of producing a substitute property with the same utility as the subject. First, the
subject's site is valued (as if vacant) by comparing it to the sale of similar sites using the Direct
Sales Comparison Approach. The reproduction cost new is then estimated for the subject
improvements, and from this, an amount is deducted for depreciation from all causes to arrive at
a value via the Cost Approach.
The Sales Comparison Approach is based upon the proposition that an informed purchaser would
pay no more for a property than the cost to him of acquiring a similar property with the same utility.
In this approach, similar properties that have recently sold are compared to the subject. Notable
differences in the utilized comparables are adjusted to the subject in the process. Comparisons
are made and are typically based upon the terms of sale, age, location, size, financing, and
physical characteristics. The adjustments are abstracted from and/or otherwise supported to
represent the actions of buyers and sellers in the market. The value range that is indicated by
the adjusted comparable sales is correlated or reconciled into a final value opinion via this
approach.
The Income Capitalization Approach is the process in which the anticipated flow of future benefits
(dollar income or amenities) is discounted to a present worth figure through a capitalization or
direct discount procedure. All expenses attributable to the real estate are deducted from an
effective gross income estimate to arrive at forecasts of applicable net income streams. The net
income streams are then "capitalized" or discounted into value by market abstracted rates. The
purpose of ownership is to generate income and provide to the owner a sufficient return on his/her
investment to make the purchase of such a property attractive.
The subject property consists of 15.049 acres of land improved with an office warehouse and
other site improvements. Furthermore, we determined that the use of the main improvements will
not be affected by the proposed acquisition as the acquisition is located a sufficient distance from
the main improvements and will not negatively affect internal circulation, drainage, ingress/egress,
or utility of the remainder. Therefore, only the land value has been estimated and we have
provided a value of land via the Sales Comparison Approach utilizing comparable land sales.
SECTION IV – LAND VALUATION
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LAND VALUATION
“Sales comparison is usually the preferred methodology for developing an opinion of site value.
When this method is used, most of the techniques for selecting comparable sales and making
adjustments that are described in Chapter 20 [of The Appraisal of Real Estate, Fifteenth Edition]
can be applied to site valuation. When there are not enough sales of similar parcels for the
application of sales comparison, alternative methods such as market extraction, allocation, land
residual analysis, and various income capitalization techniques may be used.” 9 All of these land
valuation procedures, which are summarized below, are derived from the three traditional
approaches to value.
– Sales Comparison – Sales of similar, vacant parcels are analyzed, compared, and
adjusted to provide a value indication for the land being appraised.
– Market Extraction – An estimate of the contributory value of improvements is deducted
from the total sale price of a property to arrive at an indicated land value for the
comparable. The indicated land values of the comparables are then compared to
provide a value indication for the land being appraised.
– Allocation – A ratio of site value to property value is extracted from comparable sales
in competitive locations and applied to the value of the improved subject property or
comparable properties to develop the site value.
– Direct Capitalization: Land Residual Analysis – The net operating income attributable
to the land is capitalized or the cost to construct an improvement is deducted from the
value as if completed to produce an indication of the land’s contribution to the total
property.
– Direct Capitalization: Ground Rent Capitalization – A market-derived capitalization rate
is applied to the ground rent of the subject property.
– Yield Capitalization: Discounted Cash Flow Analysis-Subdivision Development
Analysis – Direct and indirect costs and entrepreneurial incentive are deducted from
an estimate of the anticipated gross sales price of the finished lots or units, and the
net sales proceeds are discounted to present value at a market-derived rate over the
development and absorption period. If entrepreneurial incentive is not deducted as a
line-item expense, then the discount rate must reflect the full effect of any profit.
When sufficient market data is available, the best method of site valuation is the Sales
Comparison Approach. This method calls for comparison weighing and relating sales data to the
site being appraised. The data can be analyzed and the indications of adjustments for time,
location, physical utility and conditions of sale, can then be applied so as to result in a meaningful
value opinion for the subject site. For a sale to be truly comparable, the highest and best use of
the comparable land should be the same or similar to the appraised site. This is the method of
site valuation, which will be utilized in this report.
9 The Appraisal Institute, The Appraisal of Real Estate (Fifteenth Edition), Chicago, Illinois, 2020, pages 339.
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COMPARABLE LAND SALES PRESENTATION
The subject market was searched for sales of tracts of land most comparable to the subject. After
sales were selected for more analysis, the public records were researched and verification of the
details of the sales was obtained from parties knowledgeable concerning the sales. We then
analyzed the specific differences and made appropriate adjustments, abstracting these
adjustments from the market whenever possible. The final reconciliation of these adjusted sales
indicated a value of the subject property. A map depicting the location of the sales in comparison
to the subject property is located below.
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LAND SALES ANALYSIS
The process of comparing similar market sales to the subject property is fundamental to the sales
comparison approach, and usually provides the most credible and reliable indication of value. If
a comparable property has an element of comparison that is superior to the subject property, a
downward adjustment is made to the comparable sale. If the element of comparison is inferior,
then an upward adjustment is made. The adjustment process is not an exact science. Experience,
knowledge and objectivity are required on the part of the appraiser for the application of the
appropriate level of adjustment. Competent analysis leads us to a narrow range of variance
among the adjusted comparable sales, and to a high degree of confidence in reconciliation. The
analyses of the adjustments we considered relevant are found in the following paragraphs.
Financing Terms
All of the comparable land sales were consummated with the sellers effectively receiving cash in
exchange for their consideration in the property; therefore, no adjustments were required for
advantageous seller financing.
Property Rights Conveyed
This adjustment involves the type of real property interest that is conveyed in a sales transaction.
All of the comparable transactions conveyed fee simple ownership rights; thus, no adjustments
were required for this factor.
Conditions of Sale
Adjustments for this item usually reflect the motivation of the buyer and seller involved with a
transaction. Adjustments would be necessary for transactions where the seller wants to quickly
liquidate his assets or where there is an atypical financial, business, friend or family relationship
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between the principals involved which affect the selling price of the property. All of the
Comparables had similar conditions of sale to that of the subject and will not be adjusted.
Expenditures After Sale
This adjustment accounts for any expenses the purchaser of the property occurs immediately
after the purchase of the property. Some examples of these items could include environmental
clean-up, demolition costs, deferred maintenance, HVAC replacement/repair, renovations,
parking lot repair/replacement, cosmetic upgrades, etc... Adjustments for this item usually reflect
the motivation of the buyer and seller involved with a transaction. Adjustments would be
necessary for transactions where the buyer is aware that such expenditures after the sale must
occur in order to operate the property sufficiently. Any necessary adjustments for Expenditures
After Sale have been made within the individual Comparable write-ups. Therefore, no further
adjustments are necessary.
Market Conditions
This adjustment is generally made after the other transactional adjustments have been made
(property rights conveyed, financing, conditions of sale, and expenditures after sale). This
adjustment addresses potentially differing market conditions between the subject property (date
of appraisal), and the sales dates of the Comparables. As a test, the sales adjusted prices when
compared to the subject were chronologically arrayed by sale date and only adjusted for the
appropriate physical conditions in order to determine if adjustments for changing market
conditions is warranted.
The table below depicts the Price/Sq. Ft. for each comparable which has been adjusted for the
other transactional adjustments (property rights conveyed, financing, conditions of sale, and
expenditures after sale). The % Physical Adjustment column indicates the total adjustments made
for all physical characteristics (location, size, corner, utilities, topography zoning, flood plain, etc.)
as shown in the adjustment grid at the conclusion of this section of the report. The Adjusted
Price/Sq. Ft. is calculated by applying the % Physical Adjustment for each sale to its Price/Sq. Ft.
By analyzing the comparable sales adjusted prices per square foot after all other adjustments
have been made, trends in land prices over the time period may become apparent. However,
given the small sample size, the appraisers’ judgment is also relied upon based upon knowledge
gained from experience in the market over this time period.
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In closely analyzing the market Comparables, there is not a clear trend in sales prices over this
time period. Additionally, market participants indicate that market conditions have been improving
at a rate of approximately 4 to 6 percent per year. Therefore, each Comparable will be adjusted
upwards by 5 percent per year.
Location/Access
The axiom that "location is the most important physical characteristic of real estate" suggests that
this component warrants paramount consideration in the adjustment process. Therefore, the
locations of the Comparables are the first of the physical characteristics to be considered. The
sales researched and included herein involve properties with similar highest and best uses as
that of the subject. The subject property is physically located at the southwest corner of Airport
Road and I-35W Frontage Road in Denton, Texas.
Comparables 1, 4, 5, and 6 are located in inferior areas of development along inferior roadways
and will be adjusted upward 5 percent.
Comparables 2 and 3 are located in similar areas of surrounding development along similar
roadways to the subject; therefore, Comparables 2 and 3 will not be adjusted.
Size
The subject has a total land size of 15.049 acres. Typically, smaller tracts sell for more per unit
than larger sites. In reviewing market trends and the data set, the market appears to recognize a
difference in price for tracts substantially different in size. A market observation witnessed
throughout the Texas market area and most metropolitan areas in the southwest supports an
adjustment of 5 to 15 percent for each halving/doubling in size. In this instance a 5 percent
adjustment for each halving/doubling in size will be utilized.
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The following table illustrates the size adjustments based upon a market derived 5 percent
adjustment per each doubling/halving in size for the land market in the vicinity.
Corner
A tract of land with corner influence can, in many cases, command a higher price per unit than a
tract without corner influence. Corner influence typically becomes a more significant factor on
price with retail and commercial properties situated along two primary thoroughfares in
significantly developed urban areas. Given that the subject, as well as all of the Comparables,
involves industrial land or is otherwise not located on a corner, no adjustments for corner access
are necessary.
Utilities
The next consideration is for the location and adequacy of utilities. The subject currently has
access to all utilities. All of the Comparables have access to all utilities, like the subject, and
therefore no adjustments will be made.
0%-25%0.00%-1.25%
25%-50%1.25%-2.50%
50%-100%2.50%-5.00%
100%-200%5.00%-7.50%
200%-300%7.50%-10.00%
300%-500%10.00%-12.50%
0%-25%0.00%--2.50%
25%-50%-2.50%--5.00%
50%-75%-5.00%--10.00%
75%-more than -10.00%-or moreLargerSmallerIndicated Size Adjustments with a 5%
Adjustment per Doubling / Halving
Variance of Comp
from Subject
Indicated Adjustment
Range
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Topography
This adjustment takes into consideration the topography (terrain) of the subject property and how
developable the site is. The subject has level topography. All of the Comparables have similar
topographical considerations and no adjustments will be made.
Zoning
The zoning classification a property possesses dictates the legally permissible uses that a site
can be developed with, and hence, has a major influence on the value of a property. The subject
site is currently zoned LI, Light Industrial. All of the Comparables have similar zoning restrictions
and/or highest and best uses compared to the subject and will not be adjusted.
Flood Plain
The next consideration is for the adverse influence of a tract being situated within the 100- or 500-
year flood plain. Approximately 16 percent of the whole tract, and approximately 100 percent of
the proposed sanitary sewer easement acquisition, appears to lie within the 100-year flood plain
or regulatory floodway. As discussed previously, the entirety of the proposed sanitary sewer
easement lies within the flood plain. However, this portion of the analysis will be based on the
assumption that no portion of the subject is located within the flood plain. The portion of the
proposed acquisition area located within the flood plain will be addressed in the reconciliation.
Comparables 1, 2, 4, and 6 are located outside of the flood plain and will not be adjusted.
Approximately 31 percent of Comparable 3 is located in the 100-year flood plain and
approximately 29 percent of Comparable 5 is located in the 100-year flood plain. To abstract the
appropriate adjustment for flood plain, paired sales analysis for several flood plain sales identified
in the North Texas region have been displayed in the following table. These flood plain sales are
correlated with a very similar non-flood plain sale.
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%10218 Teagarden Rd, Dallas, Texas Sept 2015 16.373 $14,658 --
100%9000 Teagarden Rd, Dallas, Texas Oct 2015 20.000 $5,000 -65.9%
Divided by Percentage in Flood Plain:100%
Indicated Adjustment:-65.9%
Flood Plain Paired Comparison #1
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%Merit Dr, Dallas, Texas1 Feb 2014 1.400 $980,910 --
50%Forest Ln, Dallas, Texas Sept 2014 6.420 $778,816 -20.6%
Divided by Percentage in Flood Plain:50%
Indicated Adjustment:-41.2%
Flood Plain Paired Comparison #2
1This non-flood sale has been adjusted downward 10 percent for size.
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% 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
% of Tract in Size Price/
Flood Plain Location Date (Acres)Acre % Variance
0%FM 548, Forney, Texas July 2021 22.000 $40,910 --
80%FM 548, Forney, Texas Under Contract 21.000 $31,000 -24.2%
Divided by Percentage in Flood Plain:80%
Indicated Adjustment:-30.3%
Flood Plain Paired Comparison #8
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These paired comparisons indicated a range of roughly -23 percent to -92 percent and a mean of
approximately -52.5 percent. Therefore, a -50 percent adjustment will be utilized for the difference
in the value of land located within the 100-year flood plain, compared to land that is not located
within a flood plain.
Given that approximately 31 percent of Comparable 3 is encumbered by 100-year flood plain, an
upward adjustment of 62 percent (31% of 50% = 62%) will be applied for the portion of
Comparable 3 located within the 100-year flood plain.
Given that approximately 29 percent of Comparable 5 is encumbered by 100-year flood plain, an
upward adjustment of 58 percent (29% of 50% = 58%) will be applied for the portion of
Comparable 5 located within the 100-year flood plain.
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CONCLUSION OF LAND VALUE
Located below is an adjustment grid for the subject tract, followed by the range, mean (average),
and standard deviation of the adjusted sales prices per square foot.
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All of the Comparables had a mean of $6.55 per square foot, while the mean of data without high
and low extremes is $6.82 per square foot, and the data with the least absolute adjustments (<=
65%) had a mean of $6.51 per square foot. Therefore, considering the foregoing analysis and
giving additional emphasis to Comparable 2, a market value opinion of $7.00 per square foot is
considered to be reasonable for the portion of the subject tract located outside of the flood plain.
Additionally, 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. Therefore,
a market value opinion of $3.50 per square foot is considered to be reasonable for the portion of
the subject tract located inside of the flood plain.
Thus, the “as is” market value opinion for the subject property, land only, as of the effective date
of the appraisal is calculated below:
Outside Flood Plain: 550,534 square feet x $7.00 per square foot = $3,853,738
Inside Flood Plain: 105,000 square feet x $3.50 per square foot = $ 367,500
Total: 655,534 square feet = $4,221,238
SECTION V - VALUATION CONCLUSION
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 64
FINAL OPINION OF VALUE
VALUE OF THE WHOLE PROPERTY
The subject property consists of 15.049 acres (655,534 square feet) of land improved with an
office warehouse and other site improvements. The highest and best use is industrial use. Further,
any potential limitations to use would be outweighed by the enhancement of value of the site by
the road/infrastructure improvements. Thus, the highest and best use after the proposed
acquisition is industrial use. Therefore, there are no permanent damages to the remainder
property, only limitations caused by temporary interruption of the ingress/egress of this property
during construction. Therefore, the market value of the whole property before the proposed
acquisitions as of the effective date of appraisal (October 29, 2024) was:
"As Is" Market Value
($4,221,238)
VALUE OF THE PARTS TO BE ACQUIRED
The portion of the site from which property rights will potentially be acquired involves a 0.010 acre
(418 square foot) sanitary sewer easement.
Value of Proposed Sanitary Sewer Easement:
As discussed previously, the entirety of the proposed sanitary sewer easement lies within the
flood plain. The concluded market value opinion of $7.00 per square foot is the value for the
portions of the subject property which lie outside the flood plain. Furthermore, as discussed
previously, 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. Therefore,
the portions of the proposed sanitary sewer easements which lie within the flood plain have a land
value of $3.50 per square foot ($7.00 per square foot x 50%).
Additionally, the easement acquisition encumbers some, but not all of the property rights of the
land (fee simple interest) comprising the easement.
The Easement Valuation Matrix located as follows provides a guide for allocating value of the fee
simple interest between the easement estate (dominant estate) and the landowner’s estate
(servient estate). This exhibit was provided by an article entitled “Valuation of Easements” by
Donald Sherwood, SR/WA, published in the November/December 2014 edition of Right of Way
Magazine.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 65
The easement is not located across a non-usable area of the tract, but is located along a property
line, and may be used as required open space and building set back areas. However, the owner
would not be permitted to construct vertical improvements within the easement area. According
to the easement valuation matrix located above, sanitary sewer easements encumber 26 percent
to 50 percent of the fee interest in the property. Therefore, utilizing the easement valuation matrix
as a guide, the easement is considered to comprise 50 percent of the fee simple value of the
encumbered land, and the value of the part to be acquired. As such, the remaining 50 percent of
the use rights/fee simple value of this portion of the tract remains with the current landowner.
However, as discussed previously, the entirety of the proposed sanitary sewer easement lies
within the flood plain. Therefore, the proposed sanitary sewer easement has a land value of $3.50
per square foot ($7.00 per square foot x 50%).
Therefore, the value of the sanitary sewer easement is calculated as follows:
0.010 acres (418 SF) x $3.50 per square foot x 50% = $1,463
DAMAGES/ENHANCEMENTS
State law requires that enhancements to a remainder property in a condemnation acquisition be
determined and used as an offset to any damages to the remainder property to calculate net
damages. The highest and best use is for industrial use. The proposed acquisition does not
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 66
damage the remainder of the site. Further, any potential limitations to use would be outweighed
by the enhancement of value of the site by the road/infrastructure improvements. Thus, the
highest and best use after the proposed acquisitions is considered to be industrial use. It is
determined that there are no net damages to the remainder property.
COSTS TO CURE
Costs to cure involve the contributory value of the site improvements acquired and costs to
relocate site improvements which can be salvaged. There are no site improvements affected by
the proposed acquisition.
Opinions of Recommended Compensation
Value of the Whole Property: $4,221,238
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Remainder Before Acquisition: $4,219,775
Remainder After Acquisition: $4,219,775
Enhancements: $0
Damages: $0
Cost to Cure: $0
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Total Recommended Compensation: $1,463
SECTION VI – CERTIFICATION & ASSUMPTIONS & LIMITING CONDITIONS
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 68
CERTIFICATION
The undersigned hereby certifies that, to the best of their knowledge and belief:
1) The statements of fact contained in this report are true and correct.
2) The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions, and are the personal, impartial unbiased professional
analyses, opinions, and conclusions of the undersigned.
3) Neither the undersigned, nor any associate of the appraiser, have any present or
prospective interest in the property that is the subject of this report, and have no personal
interest with respect to the parties involved.
4) The undersigned have no bias with respect to the property that is the subject of this report
or to the parties involved with this assignment.
5) The engagement of the undersigned in this assignment was not contingent upon developing
or reporting predetermined results.
6) All analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with the Uniform Standards of Professional Appraisal Practice.
7) All analyses, opinions, and conclusions were developed, and this report has been prepared,
in conformity with Title XI of the Federal Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) and its regulations; in conformity with the Interagency
Appraisal and Evaluation guidelines issued by the Office of the Comptroller of the Currency
(OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit
Insurance Corporation (FDIC), the Office of Thrift Supervisions (OTS), and the National
Credit Union Administration (NCUA) on December 2, 2010.
8) The reported analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the Code of Professional Ethics and Standards of Professional
Appraisal Practice of the Appraisal Institute.
9) The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
10) No one provided significant real property appraisal assistance in the preparation of this
appraisal report to the person(s) signing this certification.
11) As of the date of this report, Mitchell B. Todd, MAI and Michael A. Keane, MAI have
completed the continuing education program for Designated Members of The Appraisal
Institute.
12) The undersigned's compensation for completing this assignment is not contingent upon the
development or reporting of a predetermined value or direction in value that favors the cause
of the client, the amount of the value opinion, the attainment of a stipulated result, or the
occurrence of a subsequent event directly related to the intended use of this appraisal.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 69
13) The appraisal report was not based on a requested minimum valuation, a specific valuation,
or the approval of a loan.
14) Neither the undersigned nor any associate of the appraisers considered race, color, religion,
sex, national origin, handicap, or familial status in determining the value of the subject
property.
15) Todd Property Advisors, Mitchell B. Todd, MAI, Michael A. Keane, MAI, and Jonathan D.
Martin 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.
16) Michael A. Keane, MAI and Jonathan D. Martin made a personal inspection of the property
that is the subject of this report on October 29, 2024.
17) In our opinion, and after careful consideration of the various factors entering into this
appraisal, the following illustrates the “as is” market value for the subject property and the
recommended compensation as of the effective date of appraisal, October 29, 2024, was:
Opinions of Recommended Compensation
Value of the Whole Property: $4,221,238
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Remainder Before Acquisition: $4,219,775
Remainder After Acquisition: $4,219,775
Enhancements: $0
Damages: $0
Cost to Cure: $0
Value of the Part Acquired (0.010 Acre Sanitary Sewer Easement): $1,463
Total Recommended Compensation: $1,463
18) Extraordinary Assumption: An extraordinary assumption has been made that any
site improvements impacted by the acquisition will be restored to their current or
superior condition by the City of Denton upon completion of the project at no cost to
the property owner. The use of this assumption could affect the results of this
assignment and if found to be incorrect could necessitate re-analysis.
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 70
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
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
Jonathan D. Martin
Appraisal Associate
State Certification #TX-1381200-G
jonathan@toddpa.com
TODD PROPERTY ADVISORS
REAL PROPERTY ANALYSTS, INC.
24.1024-C 71
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.
24.1024-C 72
14) The appraisers are not obligated to provide any other services, including but not limited to, testimony in court
or before any other body charged with interpretation of enforcement of the appraisal.
15) No portion of the appraisal may be reproduced in whole or in part without the prior written consent of the
appraisers. The validity of the appraisal is expressly conditioned upon consideration of its entirety.
16) Due to the nature of real estate valuation and the complexities of external and internal factors which dictate the
market value of any real estate, and the rapid changes and fluctuations with respect to the valuation of real
estate, the opinion of the appraisers set forth in the appraisal concerning the market value of the property is
reliable as of the effective date and should not be considered as reliable at any time thereafter.
17) The appraisers make no guarantee or warranty, whether implied or expressed, concerning the market value
set forth in the appraisal. The appraisal merely sets forth the appraisers opinion of such market value based
upon information obtained by the appraisers and assumptions made by the appraisers with respect to the
property.
18) The appraisers assume no responsibility for any costs or consequences arising due to the need, or the lack of
need for flood hazard insurance. An agent for the Federal Flood Insurance Program should be contacted to
determine the actual need for flood hazard insurance.
19) Subsurface Rights (minerals and oil) were not considered in this appraisal unless otherwise specifically stated.
20) The State of Texas does not have full disclosure laws regarding real estate transactions. Therefore, the
appraisers necessarily confirmed all sales and rental comparables with brokers, property managers, mortgage
brokers, grantors, grantees and other parties familiar with the transaction. The appraiser’s data is limited by the
accuracy of the information supplied by the aforementioned individuals. Whenever possible, the information
was verified by county records.
21) The value conclusion within this report is contingent upon the site being in full compliance with city codes, and
that no contamination has occurred at the site. A Phase I Environmental Study was not provided, and the
appraisers accept no responsibility as to the current status of property with respect to environmental
contaminants. It is recommended that if a Phase I study has not been performed, that an expert in this field be
engaged to identify any hazardous materials and substances existing on the property.
22) It is assumed there is full compliance with all requirements of Title III, of the Americans with Disabilities Act
(ADA) which became effective January 26, 1992 unless non-compliance is stated, defined, and considered in
the appraisal report. No responsibility is assumed by the appraisers for any such conditions, or for any expertise
or architectural/design knowledge and cost required to identify such non-compliance.
23) As used in professional appraisal practice the term “inspection” is “a personal observation of the exterior and/or
interior of the real property that is the subject of an assignment. The purpose of an appraiser’s inspection is to
identify the property characteristics that are relevant to the assignment, such as amenities, general physical
condition, and functional utility.” Inspection is considered a term of art in the appraisal profession and does not
have the same meaning as it might have in other professions such as engineering or architecture or in other
design or construction related professions. Additionally, it does not infer any obligation to investigate.
24) Extraordinary Assumption: An extraordinary assumption has been made that any site improvements
impacted by the acquisition will be restored to their current or superior condition by the City of Denton
upon completion of the project at no cost to the property owner. The use of this assumption could
affect the results of this assignment and if found to be incorrect could necessitate re-analysis.
SECTION VII - ADDENDUM
QUALIFICATIONS OF MITCHELL B. TODD, MAI
─────────────────── • ───────────────────
EXPERIENCE
1/94 to Present President – Todd Property Advisors, Real Property Analysts, Inc.; Plano, Texas
7/92 to 1/94 Vice President - Beer-Wells-Vaughan, Commercial Property Analysts; Dallas, Texas
6/86 to 7/92 Vice President - Noyd & O'Connell, Inc.; Real Estate Appraisers & Consultants; Dallas,
Texas (2/90-7/92); Houston, Texas (6/86-1/90)
During Mr. Todd's tenure as a real estate appraiser, he has prepared numerous valuations on a variety of high profile and
complex income producing real estate developments. Additionally, Mr. Todd has been involved in the valuation of
numerous single family and multi-family residential properties during his career. These assignments required analytical,
communication, and problem-solving skills which Mr. Todd has continually enhanced since his inception into the
profession. During the last several years, as the Dallas/Fort Worth residential market has expanded and mortgage
interest rates have been at attractive levels, Mr. Todd has gained significant experience in the appraisal of single family
residential properties for the purpose of obtaining mortgage financing.
Some of the more complex assignments in which Mr. Todd has completed appraisals involve numerous parcels
assembled by the City of Dallas for the American Airlines Center and the new performing arts center in the Arts District;
Reunion Arena and adjacent parking facilities, The Grand Hotel and the Mercantile Complex in the Dallas CBD; the
proposed Bank One Building in the Fort Worth CBD; the Hughes Aircraft Facility in Las Cruces, New Mexico; the
Stephens Graphics Manufacturing Facility in Dallas, Texas; the Radisson Inn Tulsa Airport in Tulsa, Oklahoma, the
Trophy Club Development (all remaining lots, acreage, and disputed acreage) of Denton County, Texas; the Eldorado
Subdivision (all remaining lots and acreage) in McKinney, Texas; the Stonebriar Community Church in Frisco, Texas; the
Trinity Terrace Retirement Center in Fort Worth, Texas; the San Antonio Savings Association Headquarters Building in
San Antonio, Texas and numerous portfolios of credit tenant retail projects, office buildings, charter schools, full service
car washes and extended stay lodging facilities across Texas and the United States.
PROFESSIONAL LICENSE AND AFFILIATIONS
Designated member of The Appraisal Institute - MAI #9379.
State Certified General Real Estate Appraiser
Texas Certificate # TX-1323514-G
Oklahoma Certificate # 1287CGA
Arkansas Certificate # CG3379
Registered Property Tax Consultant, State of Texas (Registration #00002555).
Licensed Broker by the Texas Real Estate Commission (License #0364803)
Member - Society of Texas A&M Real Estate Professionals
EDUCATION
Master's Degree - Land Economics and Real Estate, Texas A&M University, 1986.
Bachelor of Science Degree - Agricultural Economics, Texas A&M University, 1984.
The Land Economics and Real Estate curriculum at Texas A&M University is one of only three degree programs in the
United States which have been sanctioned by The Appraisal Institute for post-graduate studies in commercial real estate
appraisal. During his pursuit of the Master's degree, Mr. Todd served as a graduate teaching assistant for several
undergraduate courses, including real estate appraisal curriculum. Mr. Todd received the Master's degree in May 1986.
Prior to his post-graduate studies, Mr. Todd received a Bachelor of Science Degree in December 1984, graduating with
Magna Cum Laude honors.
The Appraisal Institute courses completed by Mr. Todd include: Standards of Professional Appraisal Practice, Principles
of Appraisal, Basic Valuation, Capitalization Theory - Part A, Capitalization Theory - Part B, Case Studies in Real Estate
Valuation, Report Writing and Valuation Analysis, and received a passing grade on both the Comprehensive Examination
and the Demonstration Report. Mr. Todd was awarded the designation of MAI in May 1992. The Appraisal Institute
conducts a program of continuing professional education for its designated members. MAI and SRA members who meet
the minimum standards of the program are awarded periodic educational certification. Mr. Todd is currently certified
under this program. Mr. Todd serves on the Region 8 Ethics and Counseling Regional Panel of the Appraisal Institute.
Other college level real estate courses and seminars completed by Mr. Todd include: Real Estate Development Analysis,
Real Property Valuation, Building Construction Practices, Rural Real Estate Appraisal, Understanding Limited Appraisals
and Reporting Options, ASB Informational Meeting, and Texas Property Tax Law.
QUALIFICATIONS OF MICHAEL A. KEANE, MAI
─────────────────── • ───────────────────
EXPERIENCE
8/15 – Present Senior Vice President – Todd Property Advisors, Real Property Analysts, Inc.;
Plano, Texas
10/12 – 8/15 Senior Appraiser – Todd Property Advisors, Real Property Analysts, Inc.; Plano,
Texas
10/09 – 10/12 Appraisal Associate – Beer-Wells-Todd, Real Property Analysts, Inc.; Plano,
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: 11/30/2024
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 JONATHAN D. MARTIN
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EXPERIENCE
01/20 to Present Associate Appraiser – Todd Property Advisors, Real Property Analysts, Inc.;
Plano, Texas
During Mr. Martin's time as a real estate appraiser, he has prepared valuations on a wide variety of real estate
developments. These assignments include single-tenant and multi-tenant office, retail, industrial, and medical
developments, as well as single-family and multi-family residential valuations. Some of the more complex
appraisals Mr. Martin has performed have involved high-rise office buildings in Downtown Dallas, anchored
strip shopping centers, and multi-property portfolios including mixed property types.
Additionally, Mr. Martin has performed appraisal services for more than ten city municipalities, in addition to
imminent domain valuation for the Texas Department of Transportation.
PROFESSIONAL LICENSE AND AFFILIATIONS
Certified General Appraiser
Texas Certificate #TX-1381200-G
EDUCATION
Bachelor of Business Administration – Finance, Texas A&M University, College Station, Texas; 2019
The Bachelor of Business Administration in Finance curriculum at Texas A&M University includes vital
material for the appraisal field. Additionally, Mr. Martin completed all Real Estate specific courses that are
offered through the Mays Business School Finance Department, including Real Estate Decision-Making and
Real Estate Finance. Furthermore, Mr. Martin has completed all qualifying educational requirements to
achieve Certified General Appraiser licensure in the State of Texas.