Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Bishani 2023 Appraisal
APPRAISAL REPORT of ±20.553 acres located at the SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas Property Owner: City of Denton CAD Parcel Number: 38376, 705700 & 705701 Legal Description: Land in the N. Britton Survey, Abstract No. 51, and the T. Labar Survey, Abstract No. 779, Denton County, Texas Submitted To: Captoria M. Brown Sr. Real Estate Specialist City of Denton 401 N Elm St Denton, TX 76205 Prepared By: ATRIUM REAL ESTATE SERVICES 14425 Falcon Head Blvd D-100 Austin, Texas 78738 Effective Date of Appraisal: June 8, 2023 June 9, 2023 Captoria M. Brown Sr. Real Estate Specialist City of Denton 401 N Elm St Denton, TX 76205 RE: Appraisal Report of ±20.553 acres located at the SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas. Project Name: Bishani - Ryan Rd Property Owner: City of Denton CAD Parcel Number: 38376, 705700 & 705701 Legal Description: Land in the N. Britton Survey, Abstract No. 51, and the T. Labar Survey, Abstract No. 779, Denton County, Texas Dear Captoria M. Brown: As requested, an appraisal has been completed on the above referenced property. The purpose of the appraisal is to estimate the market value of the fee simple interest of the subject whole property. The following appraisal and final estimate of value have been based upon the inspection of the property and upon research into various factors which influence value. The effective date of this appraisal was June 8, 2023. The analysis and results of the investigation are submitted in the accompanying report which has been prepared in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the APPRAISAL INSTITUTE, the Uniform Standards of Professional Appraisal Practice as promulgated by the APPRAISAL FOUNDATION, as well as the requirements of the STATE OF TEXAS for State-Certified General Real Estate Appraisers. MARKET VALUE ESTIMATE -The market value of fee simple interest in the subject property as of June 8, 2023, as if vacant, was as follows: $1,343,000 ONE MILLION THREE HUNDRED FORTY THREE THOUSAND DOLLARS ______________________________________________________________________________________________________________ ii Page 2 June 9, 2023 ATRIUM REAL ESTATE SERVICES appreciates the opportunity to be of service to you. Should you have any questions, or if we can be of further assistance, please contact our office. Respectfully submitted, ATRIUM REAL ESTATE SERVICES Lory R. Johnson, MAI, SR/WA President & CEO Texas Certified Appraiser #TX-1321640-G CERTIFICATION OF THE APPRAISER _________________________________________________________________________________________________________________ iii CERTIFICATION OF THE APPRAISERS The undersigned do hereby certify that, to the best of my knowledge and belief: x the statements of fact contained in this report are true and correct. x the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. x I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved. I have not performed appraisal services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three- year period immediately preceding the agreement to perform this assignment. x I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. x My engagement in this assignment was not contingent upon developing or reporting predetermined results. x My 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, the occurrence of a subsequent event directly related to the intended use of this appraisal. x the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the APPRAISAL INSTITUTE. The report also conforms to the Uniform Standards of Professional Appraisal Practice as promulgated by the APPRAISAL FOUNDATION, as well as the requirements of the STATE OF TEXAS for State-Certified General Real Estate Appraisers. x Lory R. Johnson, MAI, SR/WA and Jay Sterling have made a personal inspection of the property that is the subject of this report. x Jay Sterling provided significant real property appraisal assistance to the persons signing this certification. x the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Lory R. Johnson, MAI, SR/WA has completed the continuing education program for Designated Members of the Appraisal Institute. x this appraisal report sets forth all limiting conditions (imposed by the terms of the assignment or by the undersigned) affecting the analyses, opinions, and conclusions expressed herein. x the appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. x the market data contained within this report, has been accumulated from various sources and, where possible, personally examined and verified as to details, motivation, and validity. ATRIUM REAL ESTATE SERVICES Lory R. Johnson, MAI, SR/WA President & CEO Texas Certified Appraiser #TX-1321640-G Date Signed: June 9, 2023 TABLE OF CONTENTS _________________________________________________________________________________________________________________ iv CERTIFICATION OF THE APPRAISERS ............................................................................................................III INTRODUCTION SUBJECT PROPERTY PHOTOGRAPHS................................................................................................................ 2 EXECUTIVE SUMMARY ........................................................................................................................................... 7 DATE OF VALUE........................................................................................................................................................ 2 OWNER CONTACT.................................................................................................................................................... 2 PURPOSE/INTENDED USE OF THE APPRAISAL ............................................................................................. 2 PERSONAL PROPERTY............................................................................................................................................ 2 SCOPE OF WORK...................................................................................................................................................... 2 PROPERTY RIGHTS APPRAISED.......................................................................................................................... 3 DEFINITION OF MARKET VALUE......................................................................................................................... 4 LEGAL DESCRIPTION.............................................................................................................................................. 4 DESCRIPTIONSNEIGHBORHOOD DESCRIPTION........................................................................................................................ 6 SITE DESCRIPTION............................................................................................................................................... 14 IMPROVEMENT DESCRIPTION .......................................................................................................................... 17 HIGHEST AND BEST USE ANALYSIS ............................................................................................................... 19 APPRAISAL PROCESS ........................................................................................................................................... 21 THE SALES COMPARISON APPROACH (LAND ONLY)................................................................................ 23 RECONCILIATION & QUALIFICATIONS RECONCILIATION OF VALUE INDICATIONS................................................................................................ 40 ASSUMPTIONS AND LIMITING CONDITIONS.............................................................................................. 41 QUALIFICATIONS OF LORY R JOHNSON, MAI, SR/WA ............................................................................ 43 ADDENDUM SURVEY INTRODUCTION INTRODUCTION _________________________________________________________________________________________________________________ 2 SUBJECT PROPERTY PHOTOGRAPHS AERIAL PHOTOGRAPH Source: Google Maps Blue: Subject property boundary (estimated by the appraiser) INTRODUCTION _________________________________________________________________________________________________________________ 3 SUBJECT PROPERTY PHOTOGRAPHS AERIAL PHOTOGRAPH Source: Google Maps Blue: Subject property boundary (estimated by the appraiser) INTRODUCTION _________________________________________________________________________________________________________________ 4 SUBJECT PROPERTY PHOTOGRAPHS Subject property Date photo taken: 06/08/23 Subject property Date photo taken: 06/08/23 Subject property Date photo taken: 06/08/23 INTRODUCTION _________________________________________________________________________________________________________________ 5 SUBJECT PROPERTY PHOTOGRAPHS Subject Property Date photo taken: 06/08/23 Subject property Date photo taken: 06/08/23 Subject property entrance gate Date photo taken: 06/08/23 INTRODUCTION _________________________________________________________________________________________________________________ 6 SUBJECT PROPERTY PHOTOGRAPHS Subject Property Date photo taken: 06/08/23 Along E Ryan Rd (subject on left) Date photo taken: 06/08/23 Along proposed Monteceito Dr (subject on right) Date photo taken: 06/08/23 INTRODUCTION _________________________________________________________________________________________________________________ 7 EXECUTIVE SUMMARY Property Owner:City of Denton Property Location:SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas PROPERTY COMPONENT SUMMARY Component Acres SF Whole Property ±20.553 acres ±895,282 SF Highest & Best Use- As if Vacant: Residential. Highest & Best Use As Improved:Not applicable. Shape:Irregular. Topography:Generally level with slope towards Fletcher Branch Creek. Floodplain %:±60%in the floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain) Utilities:All utilities available. Additional Public Services:Fire, emergency medical services, and police protection are provided by the Denton County. Zoning:NA - Denton ETJ Easements/Encumbrances:Per the deed, no restrictions or easement are known to negatively impact the developability of the property. No adverse easements or encumbrances noted. Improvements (Whole):Vacant land. Appraisal Issues:No site improvements are impacted. The subject property is located ±60% in the FEMA floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain). According to the Denton County Floodplain Development Regulations (2019), properties within the FEMA floodway are prohibited from being built upon due to the heightened risk of flooding and the potential for damage to structures. However, the FEMA 100-year floodplain guidelines outline specific requirements for new construction within this area. These guidelines include: 1) ensuring that all new structures are designed and adequately anchored to withstand hydrodynamic and hydrostatic loads and prevent floatation, collapse, or lateral movement; 2) constructing buildings using methods and practices that minimize flood damage; 3) utilizing materials that are resistant to flood damage; 4) placing electrical, heating, ventilation, plumbing, and HVAC equipment and other service facilities in a manner that prevents water from entering or accumulating within them during flooding conditions; 5) designing water supply systems to minimize or eliminate infiltration of floodwaters; 6) designing sanitary sewage systems to prevent infiltration of floodwaters and discharge into floodwaters; and INTRODUCTION _________________________________________________________________________________________________________________ 8 7) locating on-site waste disposal systems to avoid impairment or contamination during flooding events. Additionally, a dedicated roadway extension of Monteceito Drive is planned along the eastern/southeastern portion of the subject property. However, according to the City of Denton's online database, no completion date for the roadway has been specified. The dedicated roadway (Vol. 1609, Pg. 940), will be 90' wide and will not encroach on the subject property. The presence of this proposed roadway extension may potentially impact the subject property in terms of accessibility, traffic flow, and future development opportunities. Effective date of Appraisal:June 8, 2023 Date of the Report:June 9, 2023 Appraiser:Lory R. Johnson, MAI, SR/WA Value Estimate:$1,343,000 INTRODUCTION _________________________________________________________________________________________________________________ 2 DATE OF VALUE The property was inspected on June 8, 2023, with this date serving as the effective date of the appraisal. OWNER CONTACT PURPOSE/INTENDED USE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the fee simple interest of the subject whole property. The definitions of these value estimates are included herein. The client is the City of Denton, and the intended users of this report is the City of Denton.Use of this report by others is not intended by the appraisers. This report is intended only for use in the estimation of market value. PERSONAL PROPERTY The value conclusions contained within this report do not include any items considered to be personal property. Please refer to the following chart for any items noted as personal property, which have not been valued herein. SCOPE OF WORK As outlined, the purpose of this appraisal is to estimate the market value of the fee simple interest of the subject whole property. Ownership information and a survey was provided. Using this information as well as additional information secured from the County Deed Records and the Central Appraisal District, the size of the property and its legal description were established. All information provided is assumed to be correct and has been considered in the following valuation analysis. The whole property size utilized herein is ±20.553 acres. The property is vacant land. The subject property is located ±60% in the FEMA floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain). According to the Denton County Floodplain Development Regulations (2019), properties within the FEMA floodway are prohibited from INSPECTION SUMMARY Date of inspection:June 8, 2023 Letter sent to:NA Date of Atrium letter:NA Owner rep at inspection:NA Comments: Client did not request to meet with appraiser upon inspection. The subject property was inspected from the right of way unaccompanied. Atrium appraisers:Lory R. Johnson, MAI, SR/WA Jay Sterling PERSONAL PROPERTY Type:Description: None NA INTRODUCTION _________________________________________________________________________________________________________________ 3 being built upon due to the heightened risk of flooding and the potential for damage to structures. However, the FEMA 100-year floodplain guidelines outline specific requirements for new construction within this area. These guidelines include: 1) ensuring that all new structures are designed and adequately anchored to withstand hydrodynamic and hydrostatic loads and prevent floatation, collapse, or lateral movement; 2) constructing buildings using methods and practices that minimize flood damage; 3) utilizing materials that are resistant to flood damage; 4) placing electrical, heating, ventilation, plumbing, and HVAC equipment and other service facilities in a manner that prevents water from entering or accumulating within them during flooding conditions; 5) designing water supply systems to minimize or eliminate infiltration of floodwaters; 6) designing sanitary sewage systems to prevent infiltration of floodwaters and discharge into floodwaters; and 7) locating on-site waste disposal systems to avoid impairment or contamination during flooding events. Additionally, a dedicated roadway extension of Monteceito Drive is planned along the eastern/southeastern portion of the subject property. However, according to the City of Denton's online database, no completion date for the roadway has been specified. The dedicated roadway (Vol. 1609, Pg. 940), will be 90' wide and will not encroach on the subject property. The presence of this proposed roadway extension may potentially impact the subject property in terms of accessibility, traffic flow, and future development opportunities. In analyzing the area economy, data from the various sources was obtained. In addition, we inspected the subject property and surrounding properties, analyzed the area and subject neighborhood, formulated an opinion regarding the highest and best use, made a search for comparable sales and listings, and all other available pertinent information used in developing an opinion of value. This data is based upon research in the market area. In all cases, the data is verified with buyer, seller, landlord, tenant, agent, and/or broker, and cross-checked through public records. In the valuation analysis of the subject property, the Cost, Sales Comparison and Income Capitalization Approaches to value were considered. The property is vacant land. As such, the Sales Comparison Approach (land only) has been developed to estimate the land value. The Cost Approach, the Sales Comparison Approach- As Improved and the Income Approach were not considered applicable and have not been developed. This Appraisal Report is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice. As such, it presents only summary discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated herein. The appraiser is not responsible for unauthorized use of this report. The appraisal was undertaken jointly by Jay Sterling who performed initial research, inspection and comparable data selection. Lory R. Johnson, MAI, SR/WA provided input with respect to appraisal methodology, data selection, analytical processes and report review. The final report is the result of this collaborative effort. PROPERTY RIGHTS APPRAISED The property rights appraised are the fee simple interest in the whole subject property. Fee simple estate is an absolute ownership unencumbered by any other interest or estate, subject INTRODUCTION _________________________________________________________________________________________________________________ 4 only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.1 DEFINITION OF MARKET VALUE Market value, as used in this appraisal report, is defined as being: "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."2 LEGAL DESCRIPTION The following legal description was obtained from the County Deed Records and is assumed to be correct. It has not been verified by legal counsel, nor has an independent survey of the parcel been commissioned. Therefore, it is suggested that the legal description be verified before being used in a legal document or conveyance. Land in the N. Britton Survey, Abstract No. 51, and the T. Labar Survey, Abstract No. 779, Denton County, Texas. 1 The Appraisal of Real Estate, 15th Edition, (Chicago: Appraisal Institute, 2020) pg. 60.2 City of Austin vs. Cannizzo, et a,. 267 S. W.2d 808,815 (1954) DESCRIPTIONS NEIGHBORHOOD DESCRIPTION ___________________________________________________________________________________________________________________ 6 NEIGHBORHOOD MAP The subject property is located on the SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas. The subject neighborhood can best be defined properties within the City of Denton and the City of Denton ETJ. IH-35 E and IH-35 W provide the north-south routes through Denton. Hwy 380 provides the main east-west access through the neighborhood with Loop 288 providing additional access to the major thoroughfares. Various other roads provide secondary access to the neighborhood area and surrounding areas. Overall land uses in the neighborhood are predominantly a mix of retail, office, industrial and commercial uses along the major arterials with residential and agricultural on secondary roads. The neighborhood has vacant tracts available for development along with industrial and commercial uses. SITE DESCRIPTION _________________________________________________________________________________________________________________ 7 SUBJECT PLAT Source: Denton County Appraisal District Blue: Subject property boundary (estimated by the appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 8 FLOODPLAIN MAP Source: FEMA Yellow: Subject property boundary (estimated by the appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 9 TOPOGRAPHY MAP Source: Denton County Appraisal District Blue: Subject property boundary (estimated by appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 10 ZONING MAP Source: City of Denton Blue: Subject property boundary (estimated by the appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 11 WETLANDS MAP Source: US Fish and Wildlife Service – National Wetlands Inventory Yellow: Subject property boundary (estimated by appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 12 FUTURE LAND USE MAP Source: City of Denton Blue: Subject property boundary (estimated by appraiser) SITE DESCRIPTION _________________________________________________________________________________________________________________ 13 SURVEY Source: Survey Blue: Subject property boundary Yellow: Dedicated roadway SITE DESCRIPTION _________________________________________________________________________________________________________________ 14 Location:SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas Legal Description:Land in the N. Britton Survey, Abstract No. 51, and the T. Labar Survey, Abstract No. 779, Denton County, Texas PROPERTY COMPONENT SUMMARY Component Acres SF Whole Property ±20.553 acres ±895,282 SF Whole Property Size (Per Survey): ±20.553 acres. The whole property size utilized herein is ±20.553 acres. Whole Property Size (Per CAD): ±20.553 acres. Shape:Irregular. Frontage:E Ryan Rd:±758 feet Montecito Dr:±608 feet Current Roadway Design:E Ryan Rd is a secondary street. Montecito Dr is a dedicated right of way. Access/Visibility:Accessible via E Ryan Rd. Adequate visibility from roadway(s). Topography:Generally level with slope towards Fletcher Branch Creek. Subsoil Conditions and Drainage: An engineering study to determine the soil and subsoil conditions has not been furnished. Upon inspection of the subject and surrounding improvements, soil conditions appear adequate to support development of the subject property with adequate engineering. Floodplain:Federal Emergency Management Agency (FEMA) Flood Insurance Rate Map Panel # and date: FEMA Map Panel 48121C0386H, effective June 19, 2020 for Denton County, Texas and Incorporated areas FEMA Zone:Zone X and Zone AE an area determined to be inside and outside the floodway/100-year floodplain. Floodplain %: ±60% in the floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain) Wetlands:According to the National Wetlands Inventory compiled by the US Fish and Wildlife Service, ±11% of the subject property (estimated by appraiser) is encumbered by a riverine, freshwater forested/shrub and freshwater pond wetland. Jurisdiction:Denton County Utilities:All utilities available. Water:City of Denton Electricity:Multiple suppliers available SITE DESCRIPTION _________________________________________________________________________________________________________________ 15 Sewer:City of Denton Septic:None Gas:None Additional Public Services:Fire, emergency medical services, and police protection are provided by the Denton County. Zoning:NA - Denton ETJ. Development Setbacks:Front:None Side:None Rear None Minimum Size:None Landscaping requirements: None Comments:Per Denton County Development Regulations (2009), any construction of residential purposes must have a plat submitted to the county. The plat must show the required setbacks as determined by development. Future Land Use:The City of Denton Land Use Plan 2040 (Dated 03/2022) denotes the subject property as being Low Residential. This designation includes the city’s predominately single-family neighborhoods, with lot sizes ranging from one acre or more in rural fringe areas up to five units per acre gross density throughout many of the city’s suburban subdivisions. Land Use Restrictions:There are no known deed restrictions, either public or private, that would 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 examination by a competent attorney is recommended should any questions arise regarding restrictions. Easements/ Encumbrances: Per the deed, no restrictions or easement are known to negatively impact the developability of the property. No adverse easements or encumbrances noted. Environmental/Toxic Waste: Any environmental issues, including endangered species and endangered species natural habitats, which would pertain to the subject property are unknown. Typically, real estate appraisers are not qualified nor are they experts in detecting hazardous materials, radiological materials, archeological resources, etc.; therefore, an expert in these fields should be consulted for opinions on these matters. This report assumes no environmental hazards or special resources exist within or on the subject property. History/Current Listing:Grantor:Gazmend Ahmeti Grantee:Kreshnik Bishani and Joana Bishani Date of Transaction:April 23, 2021 SITE DESCRIPTION _________________________________________________________________________________________________________________ 16 Recording Info:2021-76204 Comments: Consideration for this transaction is unknown. Per Jim Hanking (05/2023), listing agent with Stag Real Estate, as of the effective date of this appraisal the property is listed for $2,200,000 ($2.46/SF). Surrounding Properties:North:E Ryan Rd with residential beyond South:Residential East:Montecito Dr (dedicated roadway) with residential beyond West:Residential Real Estate Taxes:Taxing jurisdictions per CAD: (38376, 705700 & 705701) Denton Central Appraisal District Denton County Denton ISD 2022 CAD land value:$1,147,612 ($1.28/SF) 2022 CAD improvement value:$0 2022 Total assessed value:$781 IMPROVEMENT DESCRIPTION _________________________________________________________________________________________________________________ 17 Improvement:As of the effective date, the subject is vacant land. No site improvements are impacted.The site improvements on the property (if any) are listed below. Site Improvements:None Proximity to ROW:NA ANALYSIS OF DATA HIGHEST & BEST USE _________________________________________________________________________________________________________________ 19 Highest and Best Use can be defined as: "The reasonably probable and legal use of vacant land or an improved property, that is physically possible, appropriately supported, financially feasible, and that results in the highest value."3 The highest and best use involves consideration of land use as though vacant, and as improved. The potential uses of the subject are affected by the real estate economic forces of the area and neighborhood. The available uses are restricted by four criteria including physically possible, legally permissible, financially feasible and maximally productive. Highest and Best Use, As If Vacant Physically Possible The first constraint is dictated by the physical attributes of the property itself. The subject property is located at the SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas. The subject whole property contains ±20.553 acres. It is generally level with slope towards Fletcher Branch Creek. The shape is irregular. According to available maps, ±60% in the floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain) of the site is within the floodplain. According to the National Wetlands Inventory compiled by the US Fish and Wildlife Service, ±11% of the subject property (estimated by appraiser) is encumbered by a riverine, freshwater forested/shrub and freshwater pond wetland. The subject property has all utilities available. Therefore, based on the physical characteristics of the site, the floodplain creates a significant detriment to the developability of the subject property. Legally Permissible Legal restrictions, as they apply to the subject are private restrictions such as easements, and public restrictions such as zoning. There are no known deed restrictions, either public or private, that would limit the utilization of the subject property. With respect to easements and encumbrances, per the deed, no restrictions or easement are known to negatively impact the developability of the property. No adverse easements or encumbrances noted. In consideration of zoning, the subject property is currently zoned NA - Denton ETJ. The City of Denton Land Use Plan 2040 (Dated 03/2022) denotes the subject property as being Low Residential. This designation includes the city’s predominately single-family neighborhoods, with lot sizes ranging from one acre or more in rural fringe areas up to five units per acre gross density throughout many of the city’s suburban subdivisions. Also considered in the context of Legally Permissible is conformity with surrounding properties. “Conformity is the appraisal principle that holds that real property value is created and sustained when the characteristics of a property conform to the demands of the market.”4 As discussed in the Neighborhood Description section, residential development is predominant throughout the neighborhood. The subject is vacant land. Surrounding development is predominately residential and commercial. In summary, due to the subjects location, floodplain, zoning, compatibility and surrounding uses, the legally permissible component of the highest and best use analysis is considered to point toward residential. 3 The Appraisal of Real Estate, 15th Edition, (Chicago: Appraisal Institute, 2020), p.306. 4 The Appraisal of Real Estate, 15th Edition, (Chicago: Appraisal Institute, 2020), p.27 4 The Appraisal of Real Estate, 15th Edition, (Chicago: Appraisal Institute, 2020), p.27. HIGHEST & BEST USE _________________________________________________________________________________________________________________ 20 Financially Feasible and Maximally Productive This section requires that the forces of supply and demand be in balance, and that the property developed will provide sufficient income to return profit to the land. The most reasonable use of the site that generates the highest return to the land is residential. Highest and Best Use Conclusion, As If Vacant Considering all of the factors which influence highest and best use, it is our opinion that the highest and best use of the subject site, if vacant, is residential. Highest and Best Use Conclusion, As Improved As previously noted, the property is vacant land. As such, the highest and best use, as improved is not applicable. APPRAISAL PROCESS _________________________________________________________________________________________________________________ 21 In estimating the value of real property, there are three recognized approaches or techniques that, when applicable, can be used to process the data considered significant to each into separate value indications. In all instances the experience of the appraisers, coupled with objective judgment, plays a major role in arriving at the conclusions of indicated value from which the final estimate of value is made. The three approaches are commonly known as: The Cost Approach - An estimate of the present reproduction cost of the improvements, less accrued depreciation, plus land value. Depreciation includes all loss in value of the improvements due to physical deterioration, functional obsolescence, and economic obsolescence. The Sales Comparison Approach - Comparison with similar properties that have sold in the market. This Approach can be applied to land alone or to improved properties. Income Capitalization Approach - Capitalization of the net income that the property can produce. This Approach is applicable only to income producing properties. In the valuation analysis of the subject property, the Cost, Sales Comparison and Income Capitalization Approaches to value were considered. The subject is vacant land. As such, the Sales Comparison Approach (land only) has been developed to estimate the land value. The Cost Approach, the Sales Comparison Approach- As Improved and the Income Approach were not considered applicable and have not been developed. THE SALES COMPARISON APPROACH – LAND VALUE THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 23 The Sales Comparison Approach will be utilized to estimate the fee simple value of the subject site. This approach is considered the most valid indicator in estimating the market value of unimproved land not typically leased in the marketplace. In valuing property via this approach, as many land sales as possible are gathered and the most comparable are used for comparison. Since properties are seldom identical, the comparable sales must be adjusted to the subject for differences in time, location, and physical characteristics to indicate a value for the subject tract. When valuing real estate via the Sales Comparison Approach, the subject and comparables must be broken down into units of comparison. Units of comparison for vacant land include price per front foot, price per lot, price per acre (buildable or total), price per square foot (buildable or total) and price per buildable unit. The method of comparison is based on the method typically used to purchase vacant tracts in a given area. The price per SF appears prevalent in the area. In undertaking our research efforts, a diligent search was made of the subject's neighborhood for properties that had sold or that were under contract. Our research included searching for vacant land tracts that exhibited similar characteristics. Included on the following page is a summary of the documented land sales that have been used in estimating the value of the subject. A location map has also been included. THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 24 LAND SALES MAP LAND SALES SUMMARY #LOCATION DATE OF SALE $/SF LAND SIZE (ACRES) 1 EL of Copper Canyon Rd, S of Ranch Rd (750 Copper Canyon Rd), Copper Canyon, Denton County, TX 02/26/21 $1.89 ±4.374 acres 2 At the terminus of Wildflower Place, E of Fort Worth Dr (2792 Wildflower Place), Argyle, Denton County, TX 03/28/22 $1.86 ±5.870 acres 3 NL of Corbin Rd, E of IH 35 W (2990 Corbin Rd), Denton County, TX 03/01/21 $0.85 ±7.414 acres 4 At the terminus of Deer Path, W of Meadow Rd (795 Deer Path), Copper Canyon, Denton County, TX 05/25/21 $1.88 ±6.299 acres 5 SL of Sanders Rd, E of Country Club Rd (217 Sanders Rd), Denton, Denton County,TX 07/13/22 $2.06 ±9.240 acres Subject SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas ±20.553 acres Source: Atrium Real Estate Services 05/2023 THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 25 LAND SALE NO. 1 Property Identification Record ID 3326 Property Type Residential Address EL of Copper Canyon Rd, S of Ranch Rd (750 Copper Canyon Rd), Copper Canyon, Denton County, TX Tax ID 746139 Sale Data Grantor Donna Karen Welsh Grantee Jeremy French and Cassie C. French Sale Date February 26, 2021 Deed Book/Page 2021-34048 Financing Cash to seller Deed Reviewed 05/16/23 LRJ/JKS; Inspected 05/17/23 LRJ/JKS Verification Peyton Inge, listing agent, 940-241-1200, May 15, 2023; Confirmed by: JKS Sale Price $360,000 Land Data Zoning R2 – Residential Topography Generally level Utilities Electricity and water available, septic required Shape Rectangular Flood Info ±55% of the site is located within the floodplain (0% in the floodway and ±55% in the 100-year floodplain) Easements No adverse easements noted Improvements Vacant Intended/Current Use Residential/Vacant Land Size Information Gross Land Size 4.374 acres or 190,531 SF Front Footage Copper Canyon Rd: Secondary street Indicators Sale Price/Gross SF $1.89 Legal Description Lot 4, Block A, Briarwood Retreat Addition, Denton County, Texas. Remarks The site was vacant at the time of sale. The site has electricity and water available, septic is required.The site is rectangular in shape and ±55% of the site is located within the floodplain (0% in the floodway and ±55% in the 100-year floodplain). According to the National Wetlands Inventory, as compiled by the US Fish and Wildlife, ±2% of the whole property (as estimated by the appraiser) is encumbered by a riverine wetland. As of May 2023, the site is vacant. THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 26 LAND SALE NO. 1 (cont.) THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 27 LAND SALE NO. 2 Property Identification Record ID 3327 Property Type Residential Address At the terminus of Wildflower Place, E of Fort Worth Dr (2792 Wildflower Place), Argyle, Denton County, TX Tax ID 64747 & 64759 Sale Data Grantor Corinne V. Thompson and Robert Thompson Grantee Aaron Stubenazy and Melissa Stubenazy Sale Date March 28, 2022 Deed Book/Page 2022-46008 Financing Cash to seller Deed Reviewed 05/16/23 LRJ/JKS; Inspected 05/17/23 LRJ/JKS Verification April Shoffit, listing agent, 469-450-9512, May 16, 2023; Confirmed by: JKS Sale Price $475,000 Land Data Zoning A – Agriculture Topography Generally level Utilities All utilities available Shape Irregular Flood Info ±95% of the site is in the FEMA floodplain (±60% in the FEMA floodway and ±35% in the FEMA 100-year floodplain) Easements No adverse easements noted Improvements Improved with a dilapidated residence Intended/Current Use Residential/Residential Land Size Information Gross Land Size 5.870 acres or 255,697 Front Footage Wildflower Place: Secondary street Indicators Sale Price/Gross SF $1.86 Legal Description Land in the WM Hudson Survey, Tract Number 15, Denton County, Texas. Remarks The site was improved with a dilapidated residence at time of sale. Per the listing agent, the improvement did not contribute value to the subject and the property sold for land value only. The site has all utilities available. The site is rectangular in shape and ±95% of the site is in the FEMA floodplain (±60% in the FEMA floodway and ±35% in the FEMA 100-year floodplain). According to the National Wetlands Inventory, as compiled by the US Fish and Wildlife, ±2% of the whole property (as estimated by the appraiser) is encumbered by a riverine wetland. As of May 2023, the site is improved with a dilapidated residence. THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 28 LAND SALE NO. 2 (cont.) THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 29 LAND SALE NO. 3 Property Identification Record ID 3328 Property Type Residential Address NL of Corbin Rd, E of IH 35 W (2990 Corbin Rd), Denton County, TX Tax ID 983856 Sale Data Grantor Wali Khan and Karla Khan Grantee Brian J. Wright and Daniella M. Wright Sale Date March 1, 2021 Deed Book/Page 2021-39400 Financing Cash to seller Deed Reviewed 05/16/23 LRJ/JKS; Inspected 05/17/23 LRJ/JKS Verification Angela Hornburg, listing agent, 682-422-3812, May 15, 2023; Confirmed by: JKS Sale Price $275,000 Land Data Zoning R2 – Residential Topography Generally level with slope towards creek Utilities Electricity available, well and septic required Shape Irregular Flood Info ±70 in FEMA floodplain (0% in FEMA floodway and ±70% in FEMA 100-year floodplain) Easements No adverse easements noted Improvements Vacant Intended/Current Use Residential/Residential Land Size Information Gross Land Size 7.414 acres or 322,954 SF Front Footage Corbin Rd: Secondary street Indicators Sale Price/Gross SF $0.85 Legal Description Land in the O.S. Brewster Survey, Abstract Number 56, Denton County, Texas. Remarks The site was vacant at time of sale. Per the listing agent, the developability was affected by the floodplain located on the property and plans would need to be made to be able to fully develop the whole site. The site is irregular in shape. ±70% of the site is in the FEMA floodplain (0% in the FEMA floodway and ±70% in the FEMA 100-year floodplain). According to the National Wetlands Inventory compiled by the US Fish and Wildlife Service, ±5% of the whole property (as estimated by the appraiser) is encumbered by a riverine wetland. Electricity is available to the site, well and septic are required. As of May 2023, the site is improved with a single family residence. THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 30 LAND SALE NO. 3 (cont.) THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 31 LAND SALE NO. 4 Property Identification Record ID 3329 Property Type Residential Address At the terminus of Deer Path, W of Meadow Rd (795 Deer Path), Copper Canyon, Denton County, TX Tax ID 661753 Sale Data Grantor Raymond Stone and Stephanie Stone with Katheryne S. Stone and Kent Douglas Stone Grantee Ian Denholm Sale Date May 25, 2021 Deed Book/Page 2021-97550 Financing Cash to seller Deed Reviewed 05/16/23 LRJ/JKS; Inspected 05/17/23 LRJ/JKS Verification Dianne Kay, listing agent, 214-500-5939, May 15, 2023; Confirmed by: JKS Sale Price $515,000 Land Data Zoning R2 – Residential Topography Generally level Utilities Electricity and water available, septic required Shape Irregular Flood Info ±65% in the FEMA floodplain (0% in the FEMA floodway and ±65% in the FEMA 100-year floodplain) Easements No adverse easements noted Improvements Vacant Intended/Current Use Residential/Vacant Land Size Information Gross Land Size 6.299 acres or 274,385 SF Front Footage Deer Path: Secondary street Indicators Sale Price/Gross SF $1.88 Legal Description Lot 1A, Block B. Final Plat of Hidden Creek Estates, Denton County, Texas Remarks The property was vacant at the time of sale. The site has electricity and water available with septic required. The site is irregular in shape and ±65% in the FEAM floodplain (0% in the FEMA floodway with ±65% in the FEMA 100-year floodplain). According to the National Wetlands Inventory, as compiled by the US Fish and Wildlife, ±5% of the whole property (as estimated by the appraiser) is encumbered by a riverine wetland. As of May 2023 the site is vacant. THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 32 LAND SALE NO. 4 (cont.) THE SALES COMPARISON APPROACH –LAND VALUE _________________________________________________________________________________________________________________ 33 LAND SALE NO. 5 Property Identification Record ID 3330 Property Type Residential Address SL of Sanders Rd, E of Country Club Rd (217 Sanders Rd), Denton, Denton County, TX Tax ID 39114 & 98812 Sale Data Grantor Toby Edward Thomason and Judith Ann Thomason Grantee Honey Farm Estates, LLC Sale Date July 13, 2022 Deed Book/Page 2022-105335 Financing Cash to seller Deed Reviewed 05/16/23 LRJ/JKS; Inspected 05/17/23 LRJ/JKS Verification Amy Conine, listing agent, 940-368-2160, May 15, 2023; Confirmed by: JKS Sale Price $830,000 Land Data Zoning R2 – Residential Topography Generally level Utilities Electricity and water available, sewer available by extension Shape Irregular Flood Info 0% in the FEMA floodplain Easements No adverse easements noted Improvements Improved with dilapidated manufactured home Intended/Current Use Residential/Residential Land Size Information Gross Land Size 9.240 acres or 402,494 SF Front Footage Sanders Rd: Secondary street Indicators Sale Price/Gross SF $2.06 Legal Description Land in the T.J. Martin Survey, Abstract No. 900, Denton County, Texas Remarks The site was improved with a dilapidated manufactured home. Per the listing agent, the property sold for land value only and the dilapidated manufactured home did not contribute to the sales price. The site has electricity and water available with sewer available by extension. The site is irregular in shape and none of the site is located in the FEMA floodplain. According to the National Wetlands Inventory, as compiled by the US Fish and Wildlife,the site is not encumbered by a wetland. As of May 2023, the site is improved with a dilapidated manufactured home. THE SALES COMPARISON APPROACH –LAND VALUE _____________________________________________________________________________________________ 34 LAND SALE NO. 5 (cont.) THE SALES COMPARISON APPROACH –LAND VALUE _____________________________________________________________________________________________ 35 THE ADJUSTMENT PROCESS In order to narrow the range of sale prices indicated by the comparable sales, adjustments will be made to the sales for differing characteristics. The adjustment process will begin with a discussion of the property rights. Property Rights Conveyed - The transaction price of a sale is always based on the real property interest conveyed. In this instance, an adjustment for this attribute is not considered necessary. Terms of Sale/Financing - The sales gathered for this report reflected cash to seller transactions or the financing terms were reported to be at market. Therefore, an adjustment for cash equivalency is not necessary. Conditions of Sale - The sales reflected properties that are concluded to be arm’s length transactions. No adjustments for conditions of sale appear to be warranted. Market Conditions/Time - The sale comparables utilized in the present analysis ranged in date of sale from 02/26/21 to 07/13/22. Considering the general market conditions in the area, an adjustment of 3% per year is considered reasonable. Location - The following table summarizes the location ratings. LOCATION RATINGS Sale Location Rating 1 EL of Copper Canyon Rd, S of Ranch Rd (750 Copper Canyon Rd), Copper Canyon, Denton County, TX Similar/0.0 2 At the terminus of Wildflower Place, E of Fort Worth Dr (2792 Wildflower Place), Argyle, Denton County, TX Inferior/1.0 3 NL of Corbin Rd, E of IH 35 W (2990 Corbin Rd), Denton County, TX Inferior/1.0 4 At the terminus of Deer Path, W of Meadow Rd (795 Deer Path), Copper Canyon, Denton County, TX Inferior/1.0 5 SL of Sanders Rd, E of Country Club Rd (217 Sanders Rd), Denton, Denton County, TX Similar/0.0 Subject SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas Based on the general location characteristics of the properties, an adjustment for location appears necessary. Considering the general location differences of the comparables and the subject, an adjustment of 10% per rating category has been utilized. Physical Characteristics: Included in the physical characteristics adjustments are various categories including the size of the property, age/condition, quality of construction, additional amenities, etc. The following summarizes those characteristics which may require adjustment. THE SALES COMPARISON APPROACH –LAND VALUE _____________________________________________________________________________________________ 36 Size – The size of the property is ±20.553 acres, while the sales range in size from ±4.374 acres to ±7.414 acres. Considering the variations in the properties, an adjustment for size is considered necessary. The sales have been adjusted at 5% per rating. Considering the configuration and size of the subject property, the tract could potentially be developed into smaller tracts. As such, the size adjustment has been tapered for this characteristic. Floodplain /Topography:The subject tract is generally level with slope towards Fletcher Branch Creek. ±60% in the floodplain (±40% in the FEMA floodway and ±20% in the FEMA 100-year floodplain) of the site is within the floodplain. According to the National Wetlands Inventory compiled by the US Fish and Wildlife Service, ±11% of the subject property (estimated by appraiser) is encumbered by a riverine, freshwater forested/shrub and freshwater pond wetland. The following chart illustrates the floodplain description for each comparable: FLOODPLAIN/TOPOGRAPHY CHARACTERISTICS Description Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Floodplain (total)±60%±55%±95%±70%±65%0% FEMA Floodway ±40%0%±60%0%0%0% FEMA 100-year flood ±20%±55%±35%±70%±65%0% Floodplain location Western portion Northern portion All of tract Western portion Western portion NA Wetlands ±11%±2%±2%±5%±5%0% Topography Sloping toward creek Similar Similar Similar Similar Similar The following chart illustrates the adjustments warranted for each comparable: FLOODPLAIN/TOPOGRAPHY CHARACTERISTICS Adjustment Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Floodplain -15%+10%-15%-15%-30% Floodplain location 0%0%0%0%0% Wetlands 0%0%0%0%0% Topography -5%-5%-5%-5%-5% Net Adjustment -20%+5%-20%-20%-35% Zoning/restrictions: The subject property is zoned NA - Denton ETJ. All sales have a similar highest and best use, and an adjustment is not necessary. SIZE RATINGS Sale Size Rating 1 ±4.374 acres Superior/2.0 2 ±5.870 acres Superior/2.0 3 ±7.414 acres Superior/2.0 4 ±6.299 acres Superior/2.0 5 ±9.240 acres Superior/1.0 Subject ±20.553 acres ------ THE SALES COMPARISON APPROACH –LAND VALUE _____________________________________________________________________________________________ 37 Utilities: The subject property has all utilities available. Sales 1 and 4 have electricity and water available, septic required. The sales are considered inferior and have been adjusted +10%. Sale 2 has all utilities available and is considered similar. An adjustment is not necessary. Sale 3 has electricity available, well and septic required. The sale is considered inferior and has been adjusted +20%. Sale 5 has electricity and water available with sewer available by extension. The sale is considered similar and an adjustment is not necessary. Corner/Frontage: The subject property is located at the SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, Texas. All sales are not located on corners and do not have a dedicated roadway for additional access. Therefore, all sales are considered inferior and have been adjusted +5%. Other Characteristics:The subjects shape puts a limit on the developability of the property. Sales 1, 4 and 5 are not hindered by the shape of the property and are considered superior. The sales have been adjusted -5%. Sales 2 and 3 do have a shape that limits the developability of the subject property and are considered similar. An adjustment is not necessary. Additional adjustment for other characteristics are not considered necessary. The following adjustment grid illustrates the adjustments applied to the sales. THE SALES COMPARISON APPROACH –LAND VALUE _____________________________________________________________________________________________ 38 VALUATION GRID Representative Comparable Sales Subject Comp No 1 Comp No 2 Comp No 3 Comp No 4 Comp No 5 Grantor Welsh Thompson Khan Stone Thomason Grantee French Stubenazy Wright Denholm Honey Farm Estates LLC Date of Sale 6/8/2023 Effective date 2/26/21 3/28/22 3/1/21 5/25/21 7/13/22 Relative Location SL of E Ryan Rd and the WL of Montecito Dr (dedicated roadway) E of Andrew Ave, Denton County, TX EL of Copper Canyon Rd, S of Ranch Rd (750 Copper Canyon Rd), Copper Canyon, Denton County, TX At the terminus of Wildflower Place, E of Fort Worth Dr (2792 Wildflower Place), Argyle, Denton County, TX NL of Corbin Rd, E of IH 35 W (2990 Corbin Rd), Denton County, TX At the terminus of Deer Path, W of Meadow Rd (795 Deer Path), Copper Canyon, Denton County, TX SL of Sanders Rd, E of Country Club Rd (217 Sanders Rd), Denton, Denton County, TX Size (acres)20.553 4.3740 5.8700 7.4140 6.2990 9.2400 Unit Price $/SF $1.89 $1.86 $0.85 $1.88 $2.06 Property Rights 0%0%0%0%0% Adjusted $SF $1.89 $1.86 $0.85 $1.88 $2.06 Financing 0%0%0%0%0% Adjusted $SF $1.89 $1.86 $0.85 $1.88 $2.06 Conditions of Sale 0%0%0%0%0% Adjusted $SF $1.89 $1.86 $0.85 $1.88 $2.06 Market Conditions/Time +7%+4%+7%+6%+3% Adjusted $SF $2.02 $1.93 $0.91 $1.99 $2.12 Location Adjustment 0%+10%+10%+10%0% Physical Adjustment Size adjustment 895,282 SF -10%-10%-10%-10%-5% Flood/Topo adjustment -20%+5%-20%-20%-35% Zoning adjustment 0%0%0%0%0% Utilities Adjustment +10%0%+20%+10%0% Corner Adjustment +5%+5%+5%+5%+5% Other Adjustment -10%0%0%-10%-10% Net Location & Physical Characteristics Adjustment -25%+10%+5%-15%-45% Indicated Unit Value $1.52 $2.12 $0.96 $1.69 $1.17 Estimated Unit Value $1.50 Estimated Total Value $1,342,923 Reconciliation and Value Estimate In estimating the fee simple value of the subject via this approach, data was analyzed and adjusted, suggesting a value estimate for the subject property between $0.96/SF and $2.12/SF. For purposes of this analysis, a reconciled indicated unit estimate of $1.50/SF has been utilized. Therefore, the following is the estimate of the market value of the fee simple interest in the subject property, as vacant: ±20.553 acres (±895,282 SF) x $1.50/SF = $1,342,923 RECONCILIATIONS & QUALIFICATIONS RECONCILIATION & QUALIFICATIONS _________________________________________________________________________________________________________________ 40 In the valuation analysis of the subject property, the Cost, Sales Comparison and Income Capitalization Approaches to value were considered. Please refer to the Scope of Work and the Appraisal Process for discussions regarding the valuation approaches. The following table summarizes the values estimated in this appraisal: Approaches to Value Indicated Value Sales Comparison Approach (land only)$1,342,923 Subject Property Value (Rounded)$1,343,000 ASSUMPTIONS & LIMITING CONDITIONS _________________________________________________________________________________________________________________ 41 This appraisal report is subject to underlying assumptions and limiting conditions qualifying the information contained in the report as follows: The valuation estimate applies only to the property specifically identified and described in the ensuing report. Information and data contained in the report, although obtained from public record and other reliable sources and, where possible, carefully checked, is accepted as satisfactory evidence upon which rests the final expression of property value. No legal survey has been commissioned by the appraisers; therefore, reference to a sketch, plat, diagram, or survey appearing in the report is only for the purpose of assisting the reader to visualize the property. It is assumed that all information known to the client and relative to the valuation has been accurately furnished and that there are no undisclosed leases, agreements, liens, or other encumbrances affecting the use of the property. Ownership and management are assumed to be competent and in responsible hands. No responsibility beyond reason is assumed for matters of a legal nature, whether existing or pending. Information identified as being furnished or prepared by others is believed to be reliable, but no responsibility for its accuracy is assumed. Any appraiser, by reason of this appraisal, shall not be required to give testimony as an Expert Witness in any legal hearing or before any court of law unless justly and fairly compensated for such services. By reason of the purpose of this appraisal and function of the report herein set forth, the value reported is only applicable to the property rights appraised, and the appraisal report should not be used for any other purpose. Information regarding toxic wastes or hazardous materials which might affect the subject property, has not been proved; thus, the existence of toxic waste which may or may not be present in the property, has not been considered. Soil or drainage tests have not been performed, nor have soil or drainage test results been provided. Therefore, it is assumed that there are no subsoil or drainage conditions which would adversely affect the subject or their final valuation. This report assumes no soil contamination exists within or on the subject site. The valuation is subject to modification if any such potentially hazardous materials were detected by a qualified expert in these areas. The appraisers reserve the right to modify this valuation if so warranted. One (or more) of the signatories of this appraisal report is a member (or candidate) of the Appraisal Institute. The Bylaws and Regulations of the Institute require each member and candidate to control the use and distribution of each appraisal report signed by such member or candidate. Neither all nor any part of this appraisal report shall be disseminated to the general public by the use of advertising media, public relations media, news media, sales media or other media for public communication without the prior written consent of the signatories of this appraisal report. ASSUMPTIONS & LIMITING CONDITIONS _________________________________________________________________________________________________________________ 42 No endangered species and endangered species natural habitats were evident upon site inspection. This report assumes that the subject is not encumbered by any environmental factors which would affect value. Typically, real estate appraisers are not qualified, nor are they experts in detecting hazardous materials, radiological materials, archeological resources, etc., therefore, an expert in these fields should be consulted for opinions on these matters. This appraisal report is based on the condition of local and national economies, purchasing power of money, and finance rates prevailing at the effective date of value. QUALIFICATIONS OF LORY R. JOHNSON, MAI, SR/WA ASSOCIATIONS/STATE CERTIFICATIONS Texas Certified General Real Estate Appraiser #TX-1321640-G MAI Designation- Appraisal Institute, #81057 Appraisal Institute – Austin - President 2002, Director/Officer 1999-2006 Appraisal Institute – Austin - Chair of the Education Committee Appraisal Institute - Reg VIII Rep/Nom Committee, Reg Ethics & Counseling Panel Appraisal Institute - General Demonstration Reports Subcommittee Appraisal Institute – Candidate Advisor for Designation 2019-2021 International Right of Way Association (IRWA) SR/WA Member IRWA – Austin – President 2010, Director/Officer 2006-2011 IRWA – Austin – Newsletter Chair/Valuation Chair IRWA – Austin – Professional of the Year 2006 IRWA – Austin – Atrium Real Estate Services – Employer of the Year 2010 Austin Board of Realtors Designated Member Texas Real Estate Broker's License #354928 Texas Department of Transportation Pre-Certified Appraiser Texas Department of Transportation PREAS Appraiser EDUCATION Texas A&M University, 1986 - Bachelor of Science Degree Agricultural Economics with an emphasis in Finance and Real Estate Appraisal Institute professional courses as well as a variety of real estate appraisal related and project management continuing education courses and seminars. Graduate courses in Masters of Business Administration, St. Edwards University. PROFESSIONAL BACKGROUND October 1991 to present: President/CEO of Atrium Real Estate Services, a full service commercial and residential real estate appraisal and consulting company. Nov 1986 to August 1991: Appraiser w/commercial appraisal firms in Austin area. Atrium Real Estate Services (a woman owned company) was founded in 1991 by Lory R. Johnson, MAI, SR/WA. Our 30 th year is 2021! Atrium features a team of 15 appraisers/trainees and administrative staff to deliver complex transportation and utility infrastructure appraisals and reviews on multi-parcel projects. Appraisal background includes consulting, analysis/valuation and expert testimony of various properties for eminent domain purposes including single and multi-parcel right of way transportation expansion and multi-parcel easement acquisition projects (conservation, temporary construction, ingress/egress, utility, subsurface, drainage, inundation, etc.). Background also includes valuing special purpose and properties associated with federal flood buy-out programs on multi-parcel projects. Lory R. Johnson, MAI, SR/WA testifies in condemnation proceedings and is qualified as a real estate expert in the State of Texas. In 2020, Atrium diversified into a complete right of way acquisition company including project management of large scale transportation projects. ADDENDUM SURVEYORS CERTIFICATION:To:I hereby certify that this survey substantially conforms to the current Texas Society ofProfessional Land Surveyors Standards and Specifications for Category 1A Condition IIISurvey.Survey Date: August 30, 2016___________________________________Sylviana GunawanRegistered Professional Land Surveyor No. 6461Kimley-Horn and Associates, Inc.5750 Genesis Court Suite 200Frisco, Texas 75034Ph. 972-335-3580sylviana.gunawan@kimley-horn.comNo. DATE REVISION DESCRIPTION1.Copyright © 2016Kimley-Horn and Associates, Inc.All rights reservedDWG NAME: K:\FRI_SURVEY\069306714-RYAN RANCH\DWG\069306714 TRACT 1B SURVEY.DWG PLOTTED BY GUNAWAN, SYLVIANA 9/13/2016 1:33 PM LAST SAVED 9/1/2016 4:09 PMScaleDrawn bySG1" = 100'Checked byDateProject No.Sheet No.Frisco, Texas 750345750 Genesis Court, Suite 200 Tel. No. (972) 335-3580Fax No. (972) 335-3779FIRM # 10193822KHA 08/24/ 2 OF 2LAND TITLE SURVEY20.553 ACREST. LOBAR SURVEY, ABSTRACT NO. 779N. BRITTON SURVEY, ABSTRACT NO. 51ETJ OF CITY OF DENTON,DENTON COUNTY, TEXASPRELIMINARYTHIS DOCUMENT SHALLNOT BE RECORDED FORANY PURPOSE ANDSHALL NOT BE USED ORVIEWED OR RELIEDUPON AS A FINALSURVEY DOCUMENTLEGAL DESCRIPTIONBEING a tract of land situated in the N. Britton Survey, Abstract No. 51, and the T. Lobar Survey, Abstract No. 779, DentonCounty, Texas, also being a portion of a called 21.83 acre tract (Tract 1), a portion of a called 16.999 acre tract (Tract 2), anda portion of a called 21.83 acre tract (Tract 3) described in the deed to Ryan Capital Partners, recorded in Instrument No.2008-84484, Official Records of Denton County, Texas, and being more particularly described as follows:BEGINNING at a 1/2 inch iron pipe found at the southeast corner of said Tract 2, common to a re-entrant corner on thewesterly line of Lot 1, Block A of Lake Forest Good Samaritan Village, an addition to the City of Denton according to the platthereof recorded in Cabinet F, Page 36, Plat Records of Denton County, Texas;THENCESouth 89°32'55" West, along the southerly line of said Tract 2 and the northerly line of said Lot 1, Block A of LakeForest Good Samaritan Village, a distance of 580.45 feet to a 1/2 inch iron rod found for the southwest corner of said Tract 2,common to the northerly southeast corner of said Tract 1;THENCESouth 89°17'27" West, continuing along the northerly line of said Lot 1, Block A of Lake Forest Good SamaritanVillage and along the southerly line of said Tract 1, a distance of 43.78 feet to a 5/8 inch iron rod with plastic cap stamped“KHA” set for the southerly northwest corner of said Lot 1, Block A of Lake Forest Good Samaritan Village, common to are-entrant corner on the easterly line of said Tract 1, from which a 60-D nail found for witness bears North 37°06'05” West,3.81 feet;THENCESouth 02°12'23" East, along the easterly line of said Tract 1 and the westerly line of said Lot 1, Block A of LakeForest Good Samaritan Village, passing en route the northwest corner of Lot 1, Block A, Lake Forest Park Addition, accordingto the plat thereof recorded in Cabinet W, Page 349 of the Plat Records of Denton County, Texas, and continuing along thesame course and along the westerly line of said Lot 1, Block A, Lake Forest Park Addition, for a total distance of 678.62 feetto a 1/2 inch iron rod found for the southeast corner of said Tract 1, common to the northeast corner of Lot 39, Block J of RyanRanch Phase I, according to the plat thereof recorded in Cabinet S, Page 120 of the Plat Records of Denton County, Texas;THENCESouth 88°35'43" West, along the southerly line of said Tract 1, the northerly line of said Lot 39, and the northerly lineof Block J of Ryan Ranch Phase II, according to the plat thereof recorded in Cabinet T, Page 333 of the Plat Records ofDenton County, Texas, a distance of 134.61 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;THENCE departing the southerly line of said Tract 1 and the northerly line of said Block J of Ryan Ranch Phase II, andcrossing said Tract 1 and aforesaid Tract 3, the following courses:North 04°41'39" West, a distance of 461.90 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 36°09'59" West, a distance of 288.89 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 2°10'18" West, a distance of 147.36 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 15°02'28" West, a distance of 209.26 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 3°36'06" East, a distance of 91.55 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 25°20'49" West, a distance of 135.03 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 19°24'07" West, a distance of 123.20 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 3°41'43" West, a distance of 103.02 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 39°50'14" West, a distance of 184.25 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 14°39'52" West, a distance of 125.32 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 89°56'58" West, a distance of 107.34 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 41°25'28" West, a distance of 227.52 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner onthe northerly line of said Tract 3 and the southerly right-of-way line of Ryan Road, an apparent public right-of-way (NoRecord Found);THENCE along the northerly line of said Tract 3, the northerly line of said Tract 1, and the southerly right-of-way line of saidRyan Road, the following courses:South 88°55'01" East, a distance of 33.39 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 88°04'56" East, a distance of 155.52 feet to a 1/2 inch iron rod found for corner;North 86°46'51" East, a distance of 100.69 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;North 87°29'03" East, a distance of 501.53 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;THENCE departing the northerly line of said Tract 1 and the southerly right-of-way line of said Ryan Road, and crossing saidTract 1 and aforesaid Tract 2, the following courses:South 02°02'21" East, a distance of 357.25 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;South 20°24'49" East, a distance of 649.37 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner;South 89°41'49" East, a distance of 480.00 feet to a 5/8 inch iron rod with plastic cap stamped “KHA” set for corner onthe easterly line of said Tract 2 and the westerly line of aforesaid Lot 1, Block A of Lake Forest Good Samaritan Village;THENCE South 00°18'11" West, along the easterly line of said Tract 2 and the westerly line of said Lot 1, Block A of LakeForest Good Samaritan Village, a distance of 286.31 feet to the POINT OF BEGINNINGand containing 20.553 acres(895,282 square feet) of land, more or less.