Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CB23US075852-2_Granada Lift Station - Creekside HOA - TCE
GRANADA LIFT STATION CREEKSIDE HOA – T CE 921 QUAIL HOLLOW AVENUE DENTON, TEXAS 76210 CBRE GROUP, INC. FILE NO. CB23US075852 -2 MCCARTHY PARTNERS, LLC APPRAISAL REPO RT CBRE VALUATION & ADVISORY SERVICES © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES 500 W 2nd Street, Suite 1700 Austin, TX 78701 T 512-499-4900 F 512-499-4999 www.cbre.com September 25, 2023 Mr. Christopher McCarthy, SR/WA McCarthy Partners, LLC 511 Pleasant Valley Lane Richardson, Texas 75080 RE: Appraisal of: Granada Lift Station Creekside HOA - TCE 921 Quail Hollow Avenue Denton, Denton County, Texas CBRE, Inc. File No. CB23US075852-2 Dear Mr. McCarthy, SR/WA: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is a 7.1190-acre (310,104 sq. ft.) tract of land located at 921 Quail Hollow Avenue in Denton, Texas. The subject property is an open space reserve to be owned and maintained by the Homeowners' Association of Creekside, a subdivision within the City of Denton. The subject property is improved with a community area including a swimming pool, park, and parking lot along with drainage related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction. The proposed temporary construction easement traverses a portion of the northwest corner of the subject. Based on the analysis contained in the following report, the appraiser’s opinion of total compensation is concluded as follows: CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$93,031 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $93,031 Remainder After Consideration of Damages $93,031 Net Damages or Benefits $0 Temporary Easements $121 Total Compensation $121 © 2023 CBRE, Inc. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The appraisal problem, as applied to the subject, is to determine the property’s market value. “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated 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.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) The intended use and user of our report are specifically identified in our report as agreed upon in my contract for services and/or reliance language retained in the appraiser’s workfile. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). The report is not the appraisal but is the reporting of the appraisal to the named client or named intended user. Anyone else who attempts to rely on an appraisal report that is not a named user may be misled by the report. If you are not the client, you have no way of knowing if a later appraisal was done that replaces this report. Any changes will result in a different report date. Accordingly, this document may no longer contain the appraisers’ opinions. Any subsequent reports, with a later report date, voids this document even to the client or intended user. It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Allison Jackson, SR/WA, RWA, R/W-AC Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Vice President Director TX-1380451-G TX-1336636-G © 2023 CBRE, Inc. Aerial 1 Subject Aerial with Acquisition Overlay Aerial View of Subject and Acquisition Magnified Aerial View of Subject and Acquisition Proposed Temporary Construction Easement Subject Subject Proposed Temporary Construction Easement © 2023 CBRE, Inc. Executive Summary 2 Table of Contents Subject Aerial with Acquisition Overlay ................................................................................ 1 Table of Contents ................................................................................................................ 2 Certification ........................................................................................................................ 3 Executive Summary ............................................................................................................. 4 Scope of Work ................................................................................................................... 11 Subject Photographs .......................................................................................................... 13 Area Analysis .................................................................................................................... 14 Neighborhood Analysis ..................................................................................................... 16 Improvements Analysis ...................................................................................................... 27 Zoning .............................................................................................................................. 28 Tax and Assessment Data .................................................................................................. 29 Highest and Best Use ........................................................................................................ 30 Appraisal Methodology ..................................................................................................... 32 Land Value ........................................................................................................................ 34 Reconciliation of Value – Whole Property ........................................................................... 38 Temporary Construction Easement .................................................................................... 39 Summary of Compensation ............................................................................................... 41 Assumptions and Limiting Conditions ................................................................................ 42 ADDENDA A Land Sale Data Sheets B Owner Contact C Project Information D Subject Information E Qualifications © 2023 CBRE, Inc. Executive Summary 3 Certification We certify to the best of our 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 my personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. My engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. 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, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 6. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Texas. 7. 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 Standards of Professional Appraisal Practice of the Appraisal Institute. 8. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 9. As of the date of this report, Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC, has completed the continuing education program for Designated Members of the Appraisal Institute. 10. As of the date of this report, Allison Jackson, SR/WA, RWA, R/W-AC has completed the Standards and Ethics Education Requirements for Candidates of the Appraisal Institute. 11. Allison Jackson, SR/WA, RWA, R/W-AC has made a personal inspection of the property that is the subject of this report. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC, has not made a personal inspection of the property that is the subject of this report. 12. Stacy Ann Brown (Trainee License No. TX-1343526-Trainee) under the supervision of Allison Christine Jackson, SR/WA, RWA, R/W-AC (License No. TX-1380451-G) provided real property appraisal assistance to the person signing this report by gathering subject property data, gathering comparable data, and assisting with the analysis and report writing. 13. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 14. Allison Jackson, SR/WA, RWA, R/W-AC has not and Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC, has not provided any 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 acceptance of this assignment. Allison Jackson, SR/WA, RWA, R/W-AC Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC TX-1380451-G TX-1336636-G © 2023 CBRE, Inc. Executive Summary 4 Executive Summary INTRODUCTION CBRE File No.:CB23US075852-2 Date of the Report September 25, 2023 Effective Date September 18, 2023 Valuation Date Type Current Client The City of Denton through a subcontract with McCarthy Partners, LLC Representative Mr. Christopher McCarthy, SR/WA Address 511 Pleasant Valley Lane Richardson, TX 75080 Parcel Number Granada Lift Station - Creekside HOA - TCE Subject Location 921 Quail Hollow Avenue Denton, Denton County, TX Owner The Reserve at Creekside Homeowners' Association, Inc. Legal Description 7.1190-acre tract of land situated in the T. Lobar Survey, Abstract No. 779 in the City of Denton, Denton County, Texas. Assessor IDs (Impacted Only)741004 Property Rights Appraised Fee Simple Estate subject to existing encumbrances Rights Being Acquired Easement Current Use of Subject Drainage & Utility Highest and Best Use As Vacant Assemblage with the Adjacent Subdivision As Improved The subject is vacant land of Acquisition As part of the Whole Property Estimated Exposure Time 6 - 12 Months Buyer Profile Adjacent Property Owner LAND AREAS Whole Property 7.119 AC 310,104 SF Fee Area 7.119 AC 310,104 SF Part Acquired No Permanent Easement Acquisition Remainder Property Fee Area Remaining 7.119 AC 310,104 SF Remainder Total Size 7.119 AC 310,104 SF TCE 0.046 AC 2,017 SF CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$93,031 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $93,031 Remainder After Consideration of Damages $93,031 Net Damages or Benefits $0 Temporary Easements $121 Total Compensation $121 © 2023 CBRE, Inc. Executive Summary 5 SALIENT POINTS • The subject is a 7.1190-acre (310,104 sq. ft.) tract of land located at 921 Quail Hollow Avenue in Denton, Texas. The subject property is an open space reserve to be owned and maintained by the Homeowners' Association of Creekside, a subdivision within the City of Denton. The subject property is improved with a community area including a swimming pool, park, and parking lot along with drainage related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction. The proposed temporary construction easement traverses a portion of the northwest corner of the subject. • It is assumed that any underground improvements or other improvements which are not known to the appraiser will not be impacted by the project. Any impact to such improvements will require modification of this analysis or separate agreement between the property owner and the client. • The subject does not have the physical characteristics to stand alone as an economic unit and its highest and best use, as vacant, is for use in conjunction with the adjoining tract. As such, for the purposes of this analysis, the appraiser has utilized the Across the Fence Valuation methodology. The across the fence methodology relies on the principal of substitution, assuming a prudent purchaser would not pay more for a property than it would cost to assemble. To estimate the across the fence value, the appraiser has utilized a variation of the sales comparison approach to value. The across the fence process to value for the subject property will be discussed in the Methodology Applicable of the Subject section of this report. MARKET VOLATILITY Commercial real estate market conditions have deteriorated at the macro level. The significant recent increase in the cost of capital and reduced volume of transaction activity is impacting price discovery and creating an increase in uncertainty. Increasing interest rates and subdued economic growth will continue to weigh on commercial real estate fundamentals and investment transaction volumes. This creates a higher degree of uncertainty in general, though the impacts may vary by market and asset class/type. We draw your attention to a combination of inflationary pressures (leading to higher interest rates) and recent failures/stress in banking systems which have significantly increased the potential for constrained credit markets, negative capital value movements and enhanced volatility in property markets over the short-to-medium term. © 2023 CBRE, Inc. Executive Summary 6 Experience has shown that consumer and investor behavior can quickly change during periods of such heightened volatility. Lending or investment decisions should reflect this heightened level of volatility and the potential for deteriorating market conditions. It is important to note that the conclusions set out in this report are valid as at the valuation date only. Where appropriate, we recommend that the valuation is closely monitored, as we continue to track how markets respond to evolving events. CURRENT ECONOMIC CONDITIONS At its July 2023 meeting, the Federal Reserve raised the federal funds rate by 25 basis points to a 22-year-high range of 5.25% to 5.50% and indicated that future changes in monetary policy will depend on incoming data, taking into consideration the lagged impact of tightening monetary policy on the economy. The Fed also noted that it will continue to reduce the size of its balance sheet by $95 billion per month. Inflation is slowing as the pandemic’s impact wears off. The economy has been remarkably resilient in the face of rapid rate hikes and inflation is unlikely to fall to 2.0% with a continued tight labor market and an unemployment rate of only 3.6%. For this reason, another rate hike cannot be ruled out, but we believe that the current rate of 5.25% to 5.50% will be enough to sufficiently weaken the labor market. While opinions vary on future economic issues, the general market consensus at the time of this appraisal is the anticipation of moderating inflation as higher interest rates cool demand. Tighter lending conditions and a weakening economy will keep capital markets activity subdued and reduce leasing demand in the short to medium term. Amid this uncertain and dynamic environment, investment market performance will be uneven across property types. EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS An extraordinary assumption is defined as “an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.” 1 A hypothetical condition is defined as “a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purposes of analysis.” 2 The use of extraordinary assumptions and hypothetical conditions may affect assignment results. 1 The Appraisal Foundation, USPAP 2 The Appraisal Foundation, USPAP © 2023 CBRE, Inc. Executive Summary 7 SPECIAL ASSUMPTIONS •We have relied on the Denton County Appraisal District for the whole property size and the client- provided survey for the temporary construction easement size and we assume these sizes to be correct. Should any relevant contrary information be provided at a later date, the appraisers reserve the right to amend the analysis and conclusions of this appraisal. •CBRE, Inc. is not qualified to detect the existence of potentially hazardous material or underground storage tanks which may be present on or near the site. The existence of hazardous materials or underground storage tanks may affect the value of the property. For this appraisal, CBRE, Inc. has specifically assumed that the property is not affected by any hazardous materials that may be present on or near the property. The use of this assumption may affect the assignment results. •A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. •Based on instructions from the client, it is assumed that any damage to improvements such as fences and structural improvements caused by construction, maintenance, operation, repairing, alteration, replacement, or removal of its facilities shall be repaired or replaced to their as-is condition or better. •It is assumed that any underground improvements or other improvements which are not visible to the appraiser will not be impacted by the project. Any impact to such improvements will require modification of this analysis or separate agreement between the property owner and the client. •The value of the remainder after the acquisition is subject to the Hypothetical Condition that, as of the effective date of appraisal, the proposed project has been constructed according to the specifications provided by the client. •In the appraisal of property for eminent domain, numerous court cases and statutes have established that project influence (both positive and negative) should be disregarded in the value of the property before the acquisition. Therefore, the appraiser has excluded consideration of any effect the project may have on the property. This requires the appraiser to analyze the property based on a condition that is contrary to what currently exists but is accepted appraisal practice. •Certain elements of damage cannot be considered in the appraisal of the remainder although these elements may reduce the value of the remainder tract. This is in accordance with State v. Schmidt, 867 S.W. 2d 769, 781 (Tex. 1993), wherein the Supreme Court ruled that damages due to diversion of traffic, circuitry of travel, increased noise, reduced visibility to passers byes, and inconvenience due to construction activities are non-compensable and are thus not considered in the valuation of the remainder. See also Texas Property Code, Chapter 21, Subchapter C, Section 21.042 (d). EXTRAORDINARY ASSUMPTIONS: uncertain information; could alter conclusions HYPOTHETICAL CONDITIONS: contrary to what is known but used for purpose of analysis © 2023 CBRE, Inc. Subject Photographs 8 IDENTIFICATION OF THE SUBJECT The subject is a 7.1190-acre (310,104 sq. ft.) tract of land located at 921 Quail Hollow Avenue in Denton, Texas. The subject property is an open space reserve to be owned and maintained by the Homeowners' Association of Creekside, a subdivision within the City of Denton. The subject property is improved with a community area including a swimming pool, park, and parking lot along with drainage related site improvements. According to the client, no structural improvements or landscaping will be impacted by the temporary construction easement. Thus, per the client, we have assumed that no structural improvements or landscaping will be impacted by the proposed acquisition. Therefore, the subject is valued as effectively vacant land. The City of Denton intends to acquire a temporary construction. The proposed temporary construction easement traverses a portion of the northwest corner of the subject. Identification of the Larger Parcel The value of a property cannot be estimated without a determination of the property to be appraised. In some cases, multiple tax parcels are utilized together in one use or a larger tract of land may be legally, economically and physically divisible into smaller economic units. The three tests to determine the “larger parcel” to be valued in an appraisal are: • Unity of Title - control by a single entity, individual, or group. Title is largely a legal question. • Unity of Use - an integrated highest and best use separate from surrounding land. Multiple tracts can have the same use but be separate tracts, such as platted lots. Use is an economic question that is dependent upon supply and demand, availability of substitutes and other economic principles. • Proximity - contiguous tracts or proximate tracts that are used together. Subordinate to Unity of Use. In this case, the subject identified for valuation purposes of this assignment is 7.1190 acres, or 310,104 square feet of land that is under the same owner and use. For valuation purposes, and by using the Across the Fence Valuation methodology, a larger assembled tract size of 47.466 acres, which is comprised of the adjacent Creekside subdivision to the west was utilized herein, as will be discussed in the Appraisal Methodology section of this appraisal. This defined economic unit is logical, as the subject 7.119 acres services this developed subdivision and was dedicated at the time of the subdivision plat. An aerial depicting this larger assembled tract is shown on the following page. © 2023 CBRE, Inc. Subject Photographs 9 The image and outlines above are presented to merely assist the reader in visualizing the subject. They are not a legal representation or considered to represent a survey of the subject. 47.466-Assembled Tract (Creekside Subdivision) 7.119-Acre Subject © 2023 CBRE, Inc. Subject Photographs 10 OWNERSHIP Based on our research, the most recent transaction was on March 8, 2022 in which DD Creekside LTD, a Texas limited partnership conveyed approximately 7.1190, or 310,104 SF to The Reserve at Creekside Homeowners’ Association, Inc., a Texas not-for-profit corporation. The appraisers attempted to obtain the sale price from the local multiple listing service; however, it was not listed. In addition, the appraisers were unable to establish contact with the property owner; thus, we could not confirm the details via the property owner either. Prior to this transaction, DD Creekside, LLC, a Texas limited partnership held title to the property in excess of three years. The subject is not known to be listed or under contract for sale or option. To the best of our knowledge, there has been no other ownership transfers of the property during the previous three years. OWNERSHIP SUMMARY Current Owner:The Reserve at Creekside Homeowners' Association, Inc. Date Purchased:Mar 8, 2022 Legal Reference 2022-59567 County/Locality Name:Denton Pending Sale:No Change of Ownership - Past 3 Years Yes Compiled by CBRE OWNER CONTACT The owner was contacted via US Certified Mail on September 5, 2023. The appraisers were unable to establish contact with the property owner. Thus, an inspection was made on September 18, 2023, from the surrounding right of way and public areas. OWNER AND CONTACTS Owner Name The Reserve at Creekside Homeowners' Association, Inc. Owner c/o Guardian Association Management Owner Address 12700 Hillcrest Road, Suite 234 Owner City, State, Zip Dallas, TX 75230 Occupancy Owner Occupied Compiled by CBRE FURNITURE, FIXTURES AND EQUIPMENT (PERSONAL PROPERTY) No items of personal property were noted in the acquisition area. © 2023 CBRE, Inc. Subject Photographs 11 Scope of Work APPRAISAL ASSIGNMENT Guidance - The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), USPAP reporting Standard 2-2, and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. Project Name - Granada Lift Station Project Intended User - This appraisal is to be used by Christopher McCarthy, and no other user may rely on our report unless as specifically indicated in the report. Intended Use - This report is intended only for use in conjunction with property acquisition for the proposed project. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). Parties who receive or might receive a copy of the appraisal are not necessarily intended users. The appraiser’s responsibility is to the intended users identified in the report, not to all readers of the appraisal report. Market Value Definition - “Market Value is the price which the property would bring when it is offered for sale by one who desires, but is not obligated 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.” City of Austin v. Cannizzo, 267 S.W.2d 808 (Tex. 1954) CLIENT The client is the City of Denton through a subcontract with McCarthy Partners, LLC. INTEREST APPRAISED INTERESTS APPRAISED Fee Simple Estate 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. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 73. Temporary Easement An easement granted for a specific purpose and applicable for a specific time period. A construction easement, for example, is terminated after the construction of the improvement and the unencumbered fee interest in the land reverts to the owner. Dictionary of Real Estate Appraisal, Seventh Edition, 2022, page 189 © 2023 CBRE, Inc. Subject Photographs 12 The interest appraised includes the value of the rights to the fee owner, considering existing easements, encumbrances, and restrictions. The value of any mineral estate is excluded from this valuation, unless otherwise stated. Extent to Which the Property is Identified The property is identified through the following sources: • postal address • assessor’s records • legal description Extent to Which the Property is Inspected Allison Jackson, SR/WA, RWA, R/W-AC, personally conducted inspection from the right-of-way and surrounding public areas on September 18, 2023. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC has not personally inspected the subject. Effective Date The effective date is the most recent date of inspection. Type and Extent of the Data Researched The appraiser reviewed the following: • applicable tax data • zoning requirements • flood zone status • demographics • comparable data Type and Extent of Analysis Applied The appraisal was undertaken jointly by Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC, Allison Jackson, SR/WA, RWA, R/W-AC, and Stacy Brown. Under the direction of Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, RWA, R/W-AC, Stacy Brown gathered subject property data and comparable data, and assisted with the analysis and report writing. Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC and Allison Jackson, SR/WA, RWA, R/W-AC provided oversight with respect to appraisal methodology, data selection, analytical processes and report review. The final report is the result of this collective effort. Data Resources Utilized in the Analysis DATA SOURCES Item:Source(s): Site Data Whole Property Denton Central Appraisal District Acquisition Size Survey provided by the client Floodplain FEMA Zoning City of Denton Compiled by CBRE © 2023 CBRE, Inc. Subject Photographs 13 Subject Photographs Primary Improvements (not impacted), looking east from Willow Grove Avenue right-of-way Primary Improvements (not impacted), looking east from Willow Grove Avenue right-of-way In the vicinity of the TCE, facing northeast from Arbor Glen Avenue right-of-way In the vicinity of the TCE, facing northeast from Arbor Glen Avenue right-of-way Arbor Glen Avenue right-of-way, facing west Willow Grove Avenue right-of-way, facing south © 2023 CBRE, Inc. Area Analysis 14 Area Analysis POPULATION Compiled by CBRE; Source: Esri The subject is located in the Dallas-Fort Worth-Arlington,TX Metropolitan Statistical Area. Key information about the area is provided in the following tables. The area has a population of 8,058,326 and a median age of 36,with the largest population group in the 30-39 age range and the smallest population in the 80+ age range. Population has increased by 1,691,784 since 2020,reflecting an increase of 4.8%. Population is projected to increase by an additional 546,689 by 2028,reflecting 1.3% population growth. 6,366,542 8,058,326 8,605,015 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 2020 2023 2028 POPULATION BY YEAR 0 500,000 1,000,000 1,500,000 -79 80+ AREA POPULATION BY AGE © 2023 CBRE, Inc. Area Analysis 15 INCOME EDUCATION EMPLOYMENT Compiled by CBRE; Source: Esri The area includes a total of 4,184,108 employees and has a 3.6% unemployment rate. The top three industries within the area are Health Care/Social Assistance, Retail Trade and Prof/Scientific/Tech Services, which represent a combined total of 31% of the population. The area features an average household income of $115,034 and a median household income of $79,409. Over the next five years, median household income is expected to increase by 11.8%, or $1,881 per annum. A total of 40.4%of individuals over the age of 24 have a college degree,with 26.5% holding a bachelor's degree and 14.0% holding a graduate degree. $79,409 $88,816 $70,000 $75,000 $80,000 $85,000 $90,000 2023 2028 MEDIAN INCOME BY YEAR 26.5% 14.0%59.6% POPULATION BY DEGREE Bachelor's Degree Graduate Degree Other 0%2%4%6%8%10%12% Admin/Support/Waste Mgmt Srvcs Accommodation/Food Services Transportation/Warehousing Finance/Insurance Construction Educational Services Manufacturing Prof/Scientific/Tech Services Retail Trade Health Care/Social Assistance CONCLUSION In summary, the subject is forecasted to experience an increase in population, an increase in household income and an increase in household values. © 2023 CBRE, Inc. Neighborhood Analysis 16 Neighborhood Analysis © 2023 CBRE, Inc. Neighborhood Analysis 17 Location The subject is located in Denton County, Texas in an area known as the DFW Metroplex. General neighborhood characteristics are summarized below. NEIGHBORHOOD CHARACTERISTICS Location:(urban, suburban, rural)Suburban Built-Up:(>75%, 25-75%, <25%)Over 75% Growth Rate / Change:(rapid, stable, slow)Stable Change in Present Land Use:(not likely, likely*, taking place*)Not Likely Neighborhood Boundaries North: South: East: West: Source: CBRE US 380/University Drive FM 1171 Lake Lewis IH-35W Land Use The local land use patterns are summarized as follows. NEIGHBORHOOD LAND USE Commercial Land Use Patterns Primary Commercial Thoroughfares: Major Demand Generators: Source: CBRE Denton is home to The University of North Texas, Texas Women's University, and many other large employers such as Peterbilt Motors, Texas Health Presbyterian Hospital Denton, Medical City Denton, Joster's, Inc., Sally Beauty Supply, Inc., among others. IH-35E, US Highway 377, US-77, FM 2181, SH-288, Surrounding land uses consist of residential, rural residential (residences on acreage) and commercial uses primarily along the major arterial thoroughfares. LAND USE Land uses within the subject neighborhood consist of a mixture of commercial and residential development. The immediate area surrounding the subject is an established area of development, consisting primarily of residential uses with much of the development being built during between 2000 and 2009. The majority of the single-family residential development within a one-mile radius of the subject may be described as homes in the $300,000 to $400,000 price range. The median home value within a one-mile radius is about 360,072. © 2023 CBRE, Inc. Neighborhood Analysis 18 Major commercial developments in the neighborhood include Golden Triangle Mall, University of North Texas, Texas Women’s University, Embassy Suites Hotel & Convention Center, WinCo Foods, Denton Regional Medical Center, Peterbilt Assembly Plant, the Woodlands Apartments, Denton Towne Center, Denton Towne Crossing, Walmart Supercenter, UNT Discovery Park, Aldi Distribution Center, United Copper Plant, and Texas Presbyterian Health Hospital. In addition, there are a number of regional and national free-standing retail buildings, fast food restaurants, gas stations, retail strip centers, bank branches, neighborhood and community shopping centers, grocery anchored shopping centers, and various other retail and commercial uses along the major roadways within the subject’s neighborhood. GROWTH PATTERNS Growth patterns have occurred primarily along major commercial thoroughfares such as Interstate Highway 35W, Interstate Highway 35E, US Highway 377, State Loop 288, and US Highway 380. Growth patterns have also occurred along secondary commercial thoroughfares within the neighborhood such as Mayhill Road, Woodrow Lane, McKinney Street, Locust Street, Elm Street, Mingo Road, and Sherman Drive. ACCESS The subject neighborhood is served by five national/regional highways: Interstate Highway 35W, Interstate Highway 35E, US Highway 377, State Loop 288, and US Highway 380. These arterials provide primary access to the neighborhood and provide good connectivity with the greater highway network throughout the Dallas/Fort Worth area. SURROUNDING LAND USE MAP Subject © 2023 CBRE, Inc. Neighborhood Analysis 19 DEMOGRAPHICS Selected employment demographics in a one-, three-, and five-mile radius from the subject are shown in the following table: 921 Quail Hollow Avenue Denton, TX 76210 Population 2028 Total Population 7,745 65,673 159,112 32,021,944 8,605,015 1,108,673 2023 Total Population 7,217 62,209 150,342 30,506,523 8,058,326 1,002,553 2010 Total Population 5,110 51,138 119,475 25,145,561 6,366,542 662,170 2000 Total Population 3,812 28,349 78,062 20,851,820 5,156,310 432,069 Annual Growth 2023 - 2028 1.42% 1.09% 1.14% 0.97%1.32%2.03% Annual Growth 2010 - 2023 2.69% 1.52% 1.78% 1.50%1.83%3.24% Annual Growth 2000 - 2010 2.97% 6.08% 4.35% 1.89%2.13%4.36% Households 2028 Total Households 2,864 24,465 59,513 11,696,400 3,135,223 405,119 2023 Total Households 2,644 22,977 55,854 11,047,066 2,923,482 364,866 2010 Total Households 1,810 18,597 42,754 8,922,933 2,296,410 240,132 2000 Total Households 1,431 10,993 28,954 7,393,354 1,879,000 158,504 Annual Growth 2023 - 2028 1.61% 1.26% 1.28% 1.15%1.41%2.12% Annual Growth 2010 - 2023 2.96% 1.64% 2.08% 1.66%1.87%3.27% Annual Growth 2000 - 2010 2.38% 5.40% 3.97% 1.90%2.03%4.24% Income 2023 Median Household Income $108,764 $82,977 $75,659 $69,529 $79,409 $101,372 2023 Average Household Income $155,787 $113,604 $108,289 $102,636 $115,034 $136,351 2023 Per Capita Income $58,364 $42,458 $40,445 $37,264 $41,785 $49,653 2023 Pop 25+ College Graduates 2,853 18,663 42,110 6,991,954 2,143,065 334,214 Age 25+ Percent College Graduates - 2023 57.3% 48.9% 47.1% 34.9%40.4%51.1% Source: ESRI SELECTED NEIGHBORHOOD DEMOGRAPHICS Texas Dallas-Fort Worth- Arlington, TX Denton County1 Mile Radius 3 Mile Radius 5 Mile Radius Conclusion As shown above, the population within the subject neighborhood has experienced positive growth since 2000. The neighborhood currently has an average household income of $155,787 within a one-mile radius of the subject. The area is also reflecting a median household income of $108,764 for 2023. The outlook for the neighborhood is for continued growth over the next several years. As a result, the demand for existing developments is expected to be good. © 2023 CBRE, Inc. Site Analysis 20 TAX MAP Source: Denton County Appraisal District Subject © 2023 CBRE, Inc. Site Analysis 21 FLOOD PLAIN MAP Source: FEMA Subject © 2023 CBRE, Inc. Site Analysis 22 PLAT MAP Source: Denton County Public Records Creekside Subdivision Plat Map: North End Subject © 2023 CBRE, Inc. Site Analysis 23 Creekside Subdivision Plat Map: South End Subject © 2023 CBRE, Inc. Site Analysis 24 SITE ANALYSIS The following chart summarizes the salient characteristics of the subject site. SITE SUMMARY AND ANALYSIS Physical Description Gross Site Area - Subject Lot 7.119 Acres 310,104 Sq. Ft. Gross Site Area - Assembled Tract 47.47 Acres 2,067,619 Sq. Ft. Primary Road Frontage - Subject Lot E. Ryan Road 200 Feet Secondary Road Frontage - Subject Lot Creekside Drive 100 Feet Primary Road Frontage - Assembled Tract E. Ryan Road 515 Feet Secondary Road Frontage - Assembled Tract Creekside Drive 100 Feet Shape (Subject & Assembled Tract) Topography (Subject & Assembled Tract) Zoning District (Subject & Assembled Tract) Flood Map Panel No. & Date (Subject & Assembled Tract)48121C0370G 18-Apr-11 Flood Zone (Subject & Assembled Tract)Zone AE Flood Notes (Subject & Assesmbled Tract) Ingress/Egress Points (Subject & Assembled Tract) Utilities Availability Water Yes Sewer Yes Natural Gas Yes Electricity Yes Telephone Yes Other Yes No Unknown Detrimental Easements X Encroachments X Deed Restrictions X Source: Various sources compiled by CBRE Irregular Generally Level PD-15: Planned Development <1% Zone AE, <1% Zone X (Shaded) E. Ryan Road and Creekside Drive City of Denton Various Providers Various Providers Various Providers Provider City of Denton INGRESS/EGRESS The subject property and assembled tract currently have legally permissible access via E. Ryan Road, Creekside Drive, and multiple additional private neighborhood subdivision roadways. E. Ryan Road, at the subject, is a, east/west neighborhood carrier that is improved with one lane of traffic in each direction. Street improvements include asphalt paving. Street parking is not permitted. Creekside Drive, at the subject, is a north/south, divided private road. Street improvements included asphalt paving. Street parking not permitted. © 2023 CBRE, Inc. Site Analysis 25 UTILITY ACCESS The subject and assembled tract have access to public water, sewer, and electric. TOPOGRAPHY AND DRAINAGE The subject and assembled tract have generally level topography. The topography of the site is not seen as an impediment to the development of the property. During our inspection of the site, we observed no drainage problems and assume that none exist. SOILS A soils analysis for the site has not been provided for the preparation of this appraisal. In the absence of a soils report, it is a specific assumption that the site has adequate soils to support the highest and best use. FLOOD ZONE We are not experts in determining flood zone elevations and we were not provided with a flood zone certificate for the subject. The reader is encouraged to consult with a professional engineer to determine the subject's actual flood zone status. Based on our review of FEMA Flood Panel 48121C0370G, less than 1% of the subject and assembled tract are located within the floodway, which is an area that requires flood insurance. Additionally, less than 1% of the subject and assembled tract are located in in Flood Zone X (Shaded) with the remainder located within Zone X (Unshaded), which is an area of minimal flood risk. The flood encumbrance generally borders the eastern property line of the subject and assembled tract. Zones AE and A1-A30 are the flood insurance rate zones used for the 1-percent-annual-chance floodplains that are determined for the FIS by detailed methods of analysis. In most instances, BFEs derived from the detailed hydraulic analyses are shown at selected intervals in this zone. Mandatory flood insurance purchase requirements apply. AE zones are areas of inundation by the 1-percent-annual-chance flood, including areas with the 2-percent wave runup, elevation less than 3.0 feet above the ground, and areas with wave heights less than 3.0 feet. These areas are subdivided into elevation zones with BFEs assigned. The AE zone will generally extend inland to the limit of the 1-percent-annual-chance Stillwater Flood Level (SWEL). Zones B and X (shaded) are areas of 0.2-percent-annual-chance floodplain, areas of 1-percent- annual-chance (base flood) sheet flow flooding with average depths of less than 1 foot, areas of base flood stream flooding with a contributing drainage area of less than 1 square mile, or areas protected from the base flood by levees. No BFEs or depths are shown in this zone, and insurance purchase is not required © 2023 CBRE, Inc. Site Analysis 26 Zones C and X (unshaded) are flood insurance rate zones used for areas outside the 0.2-percent- annual-chance floodplain. No BFEs or depths are shown in this zone, and insurance purchase is not required. EASEMENTS AND ENCROACHMENTS A title commitment was not provided by the client. According to the client-provided survey, there is an existing 16’ Public Utility Easement adjacent to the east of the proposed temporary construction easement. This easement is considered a typical utility easement and is not considered to impact marketability of highest and best use There are no known easements or encroachments impacting the subject or assembled tract that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all easements and encroachments on the property, if any, prior to making a business decision. COVENANTS, CONDITIONS AND RESTRICTIONS As noted previously, per the plat for Creekside subdivision, the subject property is a common area to be used for open space and drainage easement lots to be owned and maintained by the Creekside Homeowners’ Association. The assembled tract is a residential subdivision which includes the subject. There are no other known covenants, conditions or restrictions impacting the site that are considered to affect the marketability or highest and best use. It is recommended that the client/reader obtain a current title policy outlining all covenants, conditions and restrictions on the property, if any, prior to making a business decision. ENVIRONMENTAL ISSUES - SITE The appraiser is not qualified to detect the existence of any potentially hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially hazardous construction materials on or in the improvements. The existence of such substances may affect the value of the property. No hazardous substances which would affect value were noted by the appraiser (see Assumptions and Limiting Conditions). CONCLUSION The subject has an irregular shape and is suitable for its current use as an open space and drainage area for the adjacent subdivision. The assembled tract is suitable for uses commensurate with the surrounding neighborhood. The size of the assembled tract is typical for the area and there are no detrimental uses in the immediate vicinity. Overall, there are no other known factors which are considered to prevent the assembled tract from development to its highest and best use, as vacant. © 2023 CBRE, Inc. Improvement Analysis 27 Improvements Analysis The subject is a 7.1190-acre (310,104 sq. ft.) tract of land located at 921 Quail Hollow Avenue in Denton, Texas. The subject property is improved with a community area including a swimming pool, park, and parking area along with related site improvements. Based on instructions from the client, it is assumed that any damage to improvements such as fences and structural improvements caused by construction, maintenance, operation, repairing, alteration, replacement, or removal of its facilities shall be repaired or replaced to their as-is condition or better; thus, our valuation is limited to the land only. © 2023 CBRE, Inc. Zoning 28 Zoning The subject is not located in the City of Denton and is currently zoned PD: Planned Development related to the residential subdivision the subject is located within. ZONING SUMMARY Current Zoning Legally Conforming Zoning Change Future Land Use Category Category Zoning Requirement Minimum Lot Size 2,500 Sq. Ft. Minimum Lot Width 20 Feet Minimum Setbacks Front Yard 5 Feet Street Side Yard 6 Feet Interior Side Yard 5 Feet Rear Yard 5 Feet Source: Planning & Zoning Dept. PD-15: Planned Development Yes Not likely Low Density Residential It is noted that the subject is slated for Low Density Residential by the City of Denton’s Future Land Use Map. CITY OF DENTON ZONING MAP Source: City of Denton GIS Maps Subject © 2023 CBRE, Inc. Tax and Assessment Data 29 Tax and Assessment Data Based on our research of the Denton County Appraisal District, the subject property has a tax account; however, due to its nature of being owned by the Reserve at Creekside HOA, the tract does not appear to be assessed or have an assessed market value. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 30 Highest and Best Use In appraisal practice, the concept of highest and best use represents the premise upon which value is based. The four criteria the highest and best use must meet are: • legally permissible; • physically possible; • financially feasible; and • maximally productive. The highest and best use analysis of the subject is discussed below. AS IF VACANT Legal Permissibility The legally permissible uses were discussed in the Site Analysis and Zoning Sections. Per the plat for the Creekside subdivision, the subject property is a common area to be used for open space and drainage easement lots to be owned and maintained by the Creekside Homeowners’ Association. As such, the subject site is restricted to drainage and utility and cannot be independently developed outside of this use. Therefore, only drainage and utility use is considered legally permissible. Physical Possibility The subject has access to all utilities and has an adequate size, sufficient access, etc., to be a separately developable site. However, as noted previously, the subject property is a common area to be used for open space and drainage easement lots to be owned and maintained by the Creekside Homeowners’ Association. Due to the site’s configuration, development potential is severely limited to its existing use. Based on physical possibility, the subject would most likely be utilized for drainage and utility use for the adjacent subdivision. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable and physically possible land uses versus the cost to create the uses. Due to the subject’s legal and physical limitations, the most likely use of the site is for drainage and utility use for the adjacent subdivision. The immediate area and adjacent properties to the subject include primarily single-family residences. Given the subject’s physical characteristics, legal restrictions, and surrounding development, it is the appraiser’s opinion that drainage and utility use for the adjacent subdivision is considered financially feasible. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 31 Maximum Productivity - Conclusion The maximally productive use is utilized as the final test and is applied to the use that has been noted as legally permissible, physically possible and financially feasible that yields the highest return to the land. The subject is suited for drainage and utility use. The most likely buyer would be a municipality or other governmental entity. The pool of buyers for the subject property is extremely limited, and a sale of the subject property is not likely. As such, a significant discount has been applied to the Across the Fence (ATF) price per unit to reflect this extremely limited buyer pool. AS IF VACANT, ASSEMBLED TRACT Legal Permissibility Similar to the subject, the assembled tract is located in the city of Denton and is zoned PD-15: Planned Development. In addition, the assembled tract is slated for low density residential by the City of Denton’s Future Land Use Map; thus, only uses as a residential subdivision are considered legally permissible. There are no known easements or encroachments impacting the assembled tract that are considered to affect marketability or highest and best use. There are no known covenants, conditions, or restrictions impacting the Assembled Tract that are considered to affect the marketability or highest and best use. Physical Possibility The assembled tract is adequately served by utilities, is of sufficient size and shape, and has sufficient frontage and access, to be a separately developable site. There are no known physical reasons why the subject site would not support any legally probable development (i.e. it appears adequate for development). Existing structures on similar sites provides additional evidence for the physical possibility of development. Financial Feasibility The determination of financial feasibility is dependent primarily on the relationship of supply and demand for the legally probable and physically possible land uses versus the cost to create the uses. Given the subject’s size, lack of zoning, and its surrounding development, the financially feasible use for the assembled tract is for a residential subdivision. Maximum Productivity - Conclusion The final test of highest and best use of the site, as if vacant, is that the use be maximally productive, yielding the highest return to the land. Based on the information presented above and upon information contained in the Neighborhood Analysis, the highest and best use of the assembled tract, as if vacant, would be for a residential subdivision, time and circumstances warranting. Analysis of the assembled tract and its respective market characteristics indicate the most likely buyer, as vacant, would be a developer. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 32 Appraisal Methodology In appraisal practice, an approach to value is included or omitted based on its applicability to the property type being valued and the quality and quantity of information available. Cost Approach The cost approach is based on the proposition that the informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements that represent the highest and best use of the land, or when it is improved with relatively unique or specialized improvements for which there exist few sales or leases of comparable properties. Sales Comparison Approach The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences, with the final estimate derived based on the general comparisons. Income Capitalization Approach The income capitalization approach reflects the subject’s income-producing capabilities. This approach is based on the assumption that value is created by the expectation of benefits to be derived in the future. Specifically estimated is the amount an investor would be willing to pay to receive an income stream plus reversion value from a property over a period of time. The two common valuation techniques associated with the income capitalization approach are direct capitalization and the discounted cash flow (DCF) analysis. Methodology Applicable to the Subject • CBRE, Inc. analyzed the data gathered through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. The sales comparison approach for land is utilized to develop an opinion of land value because market participants rely on this method. The subject is valued as vacant land so the cost approach is not applicable. The subject is valued as vacant land and so the sales comparison approach for improved property is not applicable. Being valued as vacant land, the income approach for improved property is not applicable. Furthermore, surface rights in this area are not purchased based on income production. • The 'summation method' for valuation of a partial acquisition is utilized, as is required in the State of Texas. Total compensation is estimated as the value of the partial acquisition, plus © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 33 damages to the remainder (which may be offset by special benefits), plus any necessary costs to cure and temporary easements if they are part of the scope of the assignment. As previously discussed, the subject does not have the physical characteristics to stand alone as an economic unit and its highest and best use, as vacant, is for use in conjunction with the adjoining tract to the west. The adjacent tract to the west consists of 40.347-acres. Thus, the assembled tracts would consist of 47.466-acres. It should be noted that the comps utilized and adjustments to the comps utilized have been made relative to the subject assembled tract. Because the subject cannot stand alone as an economic unit, a discount to the unit price is warranted. The discount takes into consideration the subject's pool of potential buyers, the benefit the potential buyers would realize from assemblage, and the likelihood of either assemblage or purchase of the subject alone. In this instance, the subject would be best suited to be sold to the owner of the adjacent property to the south. A discount of 90% is considered appropriate for the subject and is applied to the concluded price per unit in the sales comparison approach. It is worth noting here that the fee simple interest of the subject property is appraised, and unified fee at that. This means that all interests and title are valued together. In reality, the leased fee valuation of the property may be different from the fee simple value because of the terms of existing leases. This appraisal follows the so-called unit rule which includes the valuation of all rights of any parties who may have an interest (such as tenants, life estate holders, remaindermen, leaseholders, etc.) in the subject as one. The exception is consideration of existing easement encumbrances. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 34 Land Value The following map and table summarize the comparable data used in the valuation of the subject site. A detailed description of each transaction is included in the addenda. SUMMARY OF COMPARABLE LAND SALES Actual Sale Adjusted Sale Size Price No.Property Location Type Date Proposed Use Price Price 1 (Acres) Per SF 1 Lakecrest Drive at Eldorado Parkway Lakewood Village, TX 75068 Sale Jun-23 Residential Subdivision $5,500,000 $5,500,000 77.966 $1.62 2 North Side of FM-407, West of Jernigan Road Copper Canyon, TX 75077 Sale May-22 Residential Subdivision $3,082,000 $3,082,000 20.000 $3.54 3 2307 Lake Sharon Drive Corinth, TX 76210 Sale Apr-21 Residential Subdivision $13,600,000 $13,600,000 79.538 $3.93 4 669 Lloyd Road Oak Point, TX 75068 Sale Mar-20 Residential Subdivision $3,612,400 $3,612,400 65.515 $1.27 Subject 921 Quail Hollow Avenue,Denton, Texas ------Assemblage with the Adjacent Subdivision ------47.47 --- 1 Adjusted sale price for cash equivalency and/or development costs (where applicable) Compiled by CBRE Transaction The sales utilized represent the best data available for comparison with the whole property and were selected from the neighborhood. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 35 DISCUSSION OF ADJUSTMENTS As previously discussed, the subject does not have the physical characteristics to stand alone as an economic unit and its highest and best use, as vacant, is for use in conjunction with the adjoining tract to the west. The adjacent tract to the west consists of 40.347-acres. Thus, the assemblage of these two tracts would consist of 47.466-acres. It should be noted that the comps utilized and adjustments to the comps utilized have been made relative to the subject assembled tract. Property Rights Conveyed/Financing/Conditions of Sale All sales were indicated to be cash-to-seller transactions or financed by a third party at market terms and none appeared to occur under duress. As such, no adjustments for cash equivalency were necessary. Furthermore, the sales reflected arm’s length transactions; therefore, no adjustments for conditions of sale were warranted. The rights conveyed in the transactions are typical for this market and property type, warranting no additional adjustment. Market Conditions Based on analysis of market data from NTREIS, the Denton market area, experienced improving market conditions through 2019 and early 2020 prior to the COVID-19 outbreak in March 2020. Demand had been consistent for land since March 2020 through May 2022 with a slowdown since June 2022 as interest rates and inflation began rising. An upward adjustment of 10% annually was applied through May 2022, with a downward adjustment of 5% annually applied since June 2022. The comparables sold between March 2020 and June 2023. Land Sales 1 and 2 received downward adjustments while Land Sales 3 and 4 received upward adjustments. Location Location can have a significant influence on value. All Land Sales are considered similar for location and are not adjusted. Size Land Sales 1, 3, and 4 are larger than the subject assembled tract, warranting upward adjustments. Land Sale 2 is smaller than the subject assembled tract, warranting a downward adjustment. Frontage/Access All Land Sales are considered similar with regard to frontage/access and are not adjusted. Flood/Topography All Land Sales are considered similar with regard to flood/topography and are not adjusted. © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 36 Zoning/Use The subject is zoned PD: Planned Development. Although the sales demonstrate a variety of zonings, they are all intended for residential development. As such, they are considered similar, and no adjustments were warranted. Utilities The subject assembled tract has access to public water, sewer, and electric. Land Sale 4 does not have access to public water or sewer, warranting upward adjustments. All remaining land sales are similar with regard to utility access and are not adjusted. SUMMARY OF ADJUSTMENTS Based on our comparative analysis, the following chart summarizes the adjustments warranted to each comparable. LAND SALES ADJUSTMENT GRID Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4 Grantor First Texas Homes Luane V. Williams and Williams Living Trust F.F Taylor Farms, L.P. and Elmo M. Blount and Darlene S Blount Stevan A. Hammond Grantee CCD LWV, LLC Williams Ranch 2022, LLC Meritage Homes of Texas, LLC 800 Oak Point Investments, LLC Date of Sale May-22 Jun-23 May-22 Apr-21 Mar-20 Address 921 Quail Hollow Avenue Lakecrest Drive at Eldorado Parkway North Side of FM- 407, West of Jernigan Road 2307 Lake Sharon Drive 669 Lloyd Road City, State Denton, TX Lakewood Village, TX Copper Canyon, TX Corinth, TX Oak Point, TX Gross Acres 47.466 77.966 20.000 79.538 65.515 Gross Square Feet 310,104 3,396,205 871,200 3,464,675 2,853,833 Actual Sale Price $5,500,000 $3,082,000 $13,600,000 $3,612,400 Unit Price Per SF $1.62 $3.54 $3.93 $1.27 Property Rights Conveyed Financing Conditions of Sale Market Conditions (Time)10%-1%-6%5%16% Adjusted $/SF $1.60 $3.33 $4.12 $1.47 Location Size 10%-10%10%5% Frontage Topography Zoning/Use Utilities 10% Net Adjustment 10%-10%10%15% Indicated Unit Value $1.76 $3.00 $4.53 $1.69 Estimated Unit Value $3.00 Compiled by CBRE © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 37 CONCLUSION Based on the preceding analysis, each of the sales comparables is considered representative of the assembled tract subsequent adjustment. The adjusted sales indicate a range of approximately $1.69 per SF to $4.53 per SF, and demonstrate a mean and median of $2.75 per SF and $2.38 per SF, respectively. In conclusion, a reconciled value indication slightly above the central tendency was considered most appropriate for the assemblage tract in consideration of the preceding adjustments. As previously discussed in the highest and best use section, the pool of buyers for the subject property is extremely limited, and a sale of the subject property is not likely. As such, a significant discount (approximately 90%) has been applied to the price per SF due to the extremely limited buyer pool and diminished utility/contributory value being limited to the adjacent Creekside subdivision. The following table presents the valuation conclusion for the whole property: CONCLUDED LAND VALUE $ PSF Unrounded Total Fee Area $3.00 x 310,104 x 10%$93,031.20 = $93,031 Compiled by CBRE © 2023 CBRE, Inc. Reconciliation – Whole Property Before Acquisition 38 Reconciliation of Value – Whole Property The value indications from the approaches to value are summarized as follows: SUMMARY OF VALUE CONCLUSIONS Land Value $93,031 Cost Approach N/A Sales Comparison Approach N/A Income Capitalization Approach N/A Compiled by CBRE Based on the foregoing, the market value of the subject property before the acquisition has been concluded as follows: VALUATION SUMMARY - WHOLE PROPERTY Contributory Value of Improvements (Itemized) Total Contributory Value of Improvements $0 Contributory Land Value (Itemized) Fee Area (310,104 SF)$3.00 x 10%$93,031 Reconciled Final Value $93,031 Compiled by: CBRE © 2023 CBRE, Inc. Temporary Construction Easement 39 Temporary Construction Easement Temporary easements are utilized during the duration of a project for construction purposes. They are a temporary lease of the land and do not represent a permanent acquisition of rights. However, they affect the utility of the affected land during the duration of the easement and as such, a lease payment is due for its lifetime. © 2023 CBRE, Inc. Temporary Construction Easement 40 Temporary Construction Easement The intended use of the temporary construction easement shall be used to facilitate the construction of public infrastructure, which shall include use of the easement property for access, construction staging and storage, and other construction activities. The easement area is needed for a construction period of 2 years. The City of Denton indicated that the easement area will be restored to a condition similar to the whole property condition (prior to the project) upon completion of construction. Therefore, no additional compensation beyond the estimated temporary construction easement ground lease is warranted. The temporary construction easement is a rectangularly-shaped area containing ±2,017 SF. Temporary Easement Valuation The temporary construction easement does not have the requisite characteristics to function as independent economic unit due to its small size and shape. The highest and best use of the acquisition area is as an integral part of the whole site. As such, the land value in the part to be acquired is based on same unit value as the whole property. Considering the intended use of the temporary construction easement, encumbrances of this nature are similar to a land lease, which is typically based on a specified annual rate of return on the value of the land. A range of annual returns for all property types from 3.72% to 17.57% was indicated by Realty Rates.com (3rd quarter 2023 data), with an average of 8.90%. A rate higher than the average is applied to the subject due to the nominal value of the temporary easement. Therefore, an annual land lease rate of 10% is considered reasonable and market supported; it is applied to the previously determined unit value, to estimate the value of the easement estate as follows: TEMPORARY WORKSPACE EASEMENT Area $ PSF Rental Rate Temp Esmt Value TCE 2,017 SF $0.30 x 10%@ 2 Yr $121 Compiled by CBRE TermSize © 2023 CBRE, Inc. Summary of Compensation 41 Summary of Compensation In the final accounting, the estimate of total compensation includes the value of the acquisition, the difference between the appraisers’ opinion before and after the acquisition, and any potential curative costs or temporary construction easements. These opinions are based upon market data available as of the effective date of the appraisal. These estimates are totaled to arrive at the opinion of total compensation as follows. CONCLUDED MARKET VALUE Market Value Compensation Larger Parcel (Land and Affected Improvements)$93,031 Part(s) Being Acquired $0 Remainder Before Consideration of Damages $93,031 Remainder After Consideration of Damages $93,031 Net Damages or Benefits $0 Temporary Easements $121 Total Compensation $121 © 2023 CBRE, Inc. Assumptions and Limiting Conditions 42 Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. Unless otherwise expressly noted in the Report, CBRE has assumed that: (i) Title to the subject property is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. CBRE has not examined title records (including without limitation liens, encumbrances, easements, deed restrictions, and other conditions that may affect the title or use of the subject property) and makes no representations regarding title or its limitations on the use of the subject property. Insurance against financial loss that may arise out of defects in title should be sought from a qualified title insurance company. (ii) Existing improvements on the subject property conform to applicable local, state, and federal building codes and ordinances, are structurally sound and seismically safe, and have been built and repaired in a workmanlike manner according to standard practices; all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; and the roof and exterior are in good condition and free from intrusion by the elements. CBRE has not retained independent structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no representations relative to the condition of improvements. CBRE appraisers are not engineers and are not qualified to judge matters of an engineering nature, and furthermore structural problems or building system problems may not be visible. It is expressly assumed that any purchaser would, as a precondition to closing a sale, obtain a satisfactory engineering report relative to the structural integrity of the property and the integrity of building systems. (iii) Any proposed improvements, on or off-site, as well as any alterations or repairs considered will be completed in a workmanlike manner according to standard practices. (iv) Hazardous materials are not present on the subject property. CBRE is not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater, mold, or other potentially hazardous materials may affect the value of the property. (v) No mineral deposit or subsurface rights of value exist with respect to the subject property, whether gas, liquid, or solid, and no air or development rights of value may be transferred. CBRE has not considered any rights associated with extraction or exploration of any resources, unless otherwise expressly noted in the Report. (vi) There are no contemplated public initiatives, governmental development controls, rent controls, or changes in the present zoning ordinances or regulations governing use, density, or shape that would significantly affect the value of the subject property. (vii) All required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be readily obtained or renewed for any use on which the Report is based. (viii) The subject property is managed and operated in a prudent and competent manner, neither inefficiently, nor super-efficiently. (ix) The subject property and its use, management, and operation are in full compliance with all applicable federal, state, and local regulations, laws, and restrictions, including without limitation environmental laws, seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses, building codes, permits, and licenses. (x) The subject property is in full compliance with the Americans with Disabilities Act (ADA). CBRE is not qualified to assess the subject property’s compliance with the ADA, notwithstanding any discussion of possible readily achievable barrier removal construction items in the Report. © 2023 CBRE, Inc. Assumptions and Limiting Conditions 43 (xi) All information regarding the areas and dimensions of the subject property furnished to CBRE are correct, and no encroachments exist. CBRE has neither undertaken any survey of the boundaries of the subject property, nor reviewed or confirmed the accuracy of any legal description of the subject property. Unless otherwise expressly noted in the Report, no issues regarding the foregoing were brought to CBRE’s attention, and CBRE has no knowledge of any such facts affecting the subject property. If any information inconsistent with any of the foregoing assumptions is discovered, such information could have a substantial negative impact on the Report and any conclusions stated therein. Accordingly, if any such information is subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. CBRE assumes no responsibility for any conditions regarding the foregoing, or for any expertise or knowledge required to discover them. Any user of the Report is urged to retain an expert in the applicable field(s) for information regarding such conditions. 4. CBRE has assumed that all documents, data and information furnished by or on behalf of the client, property owner or owner’s representative are accurate and correct, unless otherwise expressly noted in the Report. Such data and information include, without limitation, numerical street addresses, lot and block numbers, Assessor’s Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any error in any of the above could have a substantial impact on the Report and any conclusions stated therein. Accordingly, if any such errors are subsequently made known to CBRE, CBRE reserves the right to amend the Report, which may include the conclusions of the Report. The client and intended user should carefully review all assumptions, data, relevant calculations, and conclusions of the Report and should immediately notify CBRE of any questions or errors within 30 days after the date of delivery of the Report. 5. CBRE assumes no responsibility (including any obligation to procure the same) for any documents, data or information not provided to CBRE, including, without limitation, any termite inspection, survey or occupancy permit. 6. All furnishings, equipment and business operations have been disregarded with only real property being considered in the Report, except as otherwise expressly stated and typically considered part of real property. 7. Any cash flows included in the analysis are forecasts of estimated future operating characteristics based upon the information and assumptions contained within the Report. Any projections of income, expenses and economic conditions utilized in the Report, including such cash flows, should be considered as only estimates of the expectations of future income and expenses as of the date of the Report and not predictions of the future. This Report has been prepared in good faith, based on CBRE's current anecdotal and evidence-based views of the commercial real estate market. Although CBRE believes its views reflect market conditions on the date of this Report, they are subject to significant uncertainties and contingencies, many of which are beyond CBRE's control. In addition, many of CBRE's views are opinion and/or projections based on CBRE's subjective analyses of current market circumstances. Actual results are affected by a number of factors outside the control of CBRE, including without limitation fluctuating economic, market, and property conditions. Actual results may ultimately differ from these projections, and CBRE does not warrant any such projections. Further, other firms may have different opinions, projections and analyses, and actual market conditions in the future may cause CBRE's current views to later change or be incorrect. CBRE has no obligation to update its views herein if its opinions, projections, analyses or market circumstances later change. 8. The Report contains professional opinions and is expressly not intended to serve as any warranty, assurance or guarantee of any particular value of the subject property. Other appraisers may reach different conclusions as to the value of the subject property. Furthermore, market value is highly related to exposure time, promotion effort, terms, motivation, and conclusions surrounding the offering of the subject property. The Report is for the sole purpose of providing the intended user with CBRE’s independent professional opinion of the value of the subject property as of the date of the Report. Accordingly, CBRE shall not be liable for any losses that arise from any investment or lending decisions based upon the Report that the client, intended user, or any buyer, seller, investor, or lending institution may undertake related to the subject property, and CBRE has not been compensated to assume any of these risks. Nothing contained in the Report shall be construed as any direct or indirect recommendation of CBRE to buy, sell, hold, or finance the subject property. 9. No opinion is expressed on matters which may require legal expertise or specialized investigation or knowledge including, but not limited to, environmental, social, and governance principles (“ESG”), beyond that customarily employed by real estate appraisers. Any user of the Report is advised to retain experts in areas that fall outside the scope of the real estate appraisal profession for such matters. © 2023 CBRE, Inc. Assumptions and Limiting Conditions 44 10. CBRE assumes 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. 11. Acceptance or use of the Report constitutes full acceptance of these Assumptions and Limiting Conditions and any special assumptions set forth in the Report. It is the responsibility of the user of the Report to read in full, comprehend and thus become aware of all such assumptions and limiting conditions. CBRE assumes no responsibility for any situation arising out of the user’s failure to become familiar with and understand the same. 12. The Report applies to the property as a whole only, and any pro ration or division of the title into fractional interests will invalidate such conclusions, unless the Report expressly assumes such pro ration or division of interests. 13. The allocations of the total value estimate in the Report between land and improvements apply only to the existing use of the subject property. The allocations of values for each of the land and improvements are not intended to be used with any other property or appraisal and are not valid for any such use. 14. The maps, plats, sketches, graphs, photographs, and exhibits included in this Report are for illustration purposes only and shall be utilized only to assist in visualizing matters discussed in the Report. No such items shall be removed, reproduced, or used apart from the Report. 15. The Report shall not be duplicated or provided to any unintended users in whole or in part without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Exempt from this restriction is duplication for the internal use of the intended user and its attorneys, accountants, or advisors for the sole benefit of the intended user. Also exempt from this restriction is transmission of the Report pursuant to any requirement of any court, governmental authority, or regulatory agency having jurisdiction over the intended user, provided that the Report and its contents shall not be published, in whole or in part, in any public document without the written consent of CBRE, which consent CBRE may withhold in its sole discretion. Finally, the Report shall not be made available to the public or otherwise used in any offering of the property or any security, as defined by applicable law. Any unintended user who may possess the Report is advised that it shall not rely upon the Report or its conclusions and that it should rely on its own appraisers, advisors and other consultants for any decision in connection with the subject property. CBRE shall have no liability or responsibility to any such unintended user. © 2023 CBRE, Inc. Addenda ADDENDA © 2023 CBRE, Inc. Addenda Addendum A LAND SALE DATA SHEETS © 2023 CBRE, Inc. Sale Land - Residential Subdivision No. 1 Property Name Lakewood Village Address Lakecrest Drive at Eldorado Parkway Lakewood Village, TX 75068 County Denton Govt./Tax ID N/A Land Area Net 77.966 ac/ 3,396,205 sf Land Area Gross 77.966 ac/ 3,396,205 sf Site Development Status Raw Utilities All available Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0415G/ Apr 2011 Zoning SF Entitlement Status N/A Transaction Details Type Sale Primary Verification Buyer Interest Transferred Fee Simple Transaction Date 06/20/2023 Condition of Sale None Recording Date N/A Recorded Buyer CCD LWV, LLC Sale Price $5,500,000 Buyer Type Developer Financing Cash to Seller Recorded Seller First Texas Homes Cash Equivalent $5,500,000 Marketing Time N/A Capital Adjustment $0 Listing Broker N/A Adjusted Price $5,500,000 Doc #2023-64438 Adjusted Price / ac and / sf $70,543 / $1.62 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This comparable represents the sale of a 77.97 acre tract of vacant land located along Lakecrest Drive at Eldorado Parkway in Lakewood Village, Texas. The comparable is irregular in shape and has all city utilities available nearby. The site is zoned for single-family residential development and is slated for the development of a 141 single-family lots. The property sold in June 2023 for $5,500,000 or $1.62 per square foot. The site is located proximate to Lake Lewisville and is located in the Little Elm ISD. © 2023 CBRE, Inc. Sale Land - Residential Subdivision No. 2 Property Name Williams Ranch Address North Side of FM-407, West of Jernigan Road Copper Canyon, TX 75077 County Denton Govt./Tax ID N/A Land Area Net 20.000 ac/ 871,200 sf Land Area Gross 20.000 ac/ 871,200 sf Site Development Status Raw Utilities All available Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0530G/ Apr 2011 Zoning TC-1 Entitlement Status N/A Transaction Details Type Sale Primary Verification Buyer Interest Transferred Fee Simple Transaction Date 05/09/2022 Condition of Sale Arm's-Length Recording Date 05/09/2022 Recorded Buyer Williams Ranch 2022, LLC Sale Price $3,082,000 Buyer Type Developer Financing Cash to Seller Recorded Seller Luane V. Williams and Williams Living Trust Cash Equivalent $3,082,000 Marketing Time N/A Capital Adjustment $0 Listing Broker N/A Adjusted Price $3,082,000 Doc #2022-70263 Adjusted Price / ac and / sf $154,100 / $3.54 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This comparable represents a 20.00 acre tract of vacant land located on the north side of FM-407, west of Jernigan Road in Copper Canyon, Texas. The tract is irregular in shape and has all utilities available nearby. The site is zoned TC-1 and is slated for the development of a 35 lot residential subdivision. The property sold in May 2022 for a reported consideration of $3,082,000 or $3.54 per square foot. © 2023 CBRE, Inc. Sale Land - Residential Subdivision No. 3 Property Name 79.538 Acres of Land Address 2307 Lake Sharon Drive Corinth, TX 76210 County Denton Govt./Tax ID N/A Land Area Net 79.538 ac/ 3,464,675 sf Land Area Gross 79.538 ac/ 3,464,675 sf Site Development Status Raw Utilities Public Water, Sewer, and Electric Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0389H/ Jun 2020 Zoning PD-57: Planned Development Entitlement Status N/A Transaction Details Type Sale Primary Verification Listing Broker, Heather Konopka Interest Transferred Fee Simple Transaction Date 04/13/2021 Condition of Sale Arms-Length Recording Date 04/14/2021 Recorded Buyer Meritage Homes of Texas, LLC Sale Price $13,600,000 Buyer Type N/A Financing Cash to Seller Recorded Seller F.F Taylor Farms, L.P. and Elmo M. Blount and Darlene S Blount Cash Equivalent $13,600,000 Marketing Time N/A Capital Adjustment $0 Listing Broker Heather Konopka (817) 715-1932 Adjusted Price $13,600,000 Doc #66255 and 66579 Adjusted Price / ac and / sf $170,987 / $3.93 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This sale represents approximately 79.538 acres of land at 2307 Lake Sharon Drive in Corinth, Texas. The site has generally level topography, contains no areas of floodplain, has public water, sewer, and electric available, and is currently zoned PD-57: Planned Development. The property sold in April 2021 for a reported sale price of $13,600,000, or $3.93 per square foot. © 2023 CBRE, Inc. Sale Land - Residential Subdivision No. 4 Property Name 65.515 Acres of Land Address 669 Lloyd Road Oak Point, TX 75068 County Denton Govt./Tax ID R38240 Land Area Net 65.515 ac/ 2,853,833 sf Land Area Gross 65.515 ac/ 2,853,833 sf Site Development Status Raw Utilities None Maximum FAR N/A Min Land Bldg Ratio N/A Shape Irregular Topography Generally Level Flood Zone Class Zone X (Unshaded) Flood Panel No./ Date 48121C0405G/ Apr 2011 Zoning Not Zoned Entitlement Status N/A Transaction Details Type Sale Primary Verification Listing Broker, Ben McCutchin 214.238.8000 Interest Transferred Fee Simple Transaction Date 03/02/2020 Condition of Sale None Recording Date 03/02/2020 Recorded Buyer 800 Oak Point Investments, LLC Sale Price $3,612,400 Buyer Type Developer Financing Cash to Seller Recorded Seller Stevan A. Hammond Cash Equivalent $3,612,400 Marketing Time 71 Month(s)Capital Adjustment $0 Listing Broker Ben McCutchin 214.238.8000 Adjusted Price $3,612,400 Doc #2020-27656 Adjusted Price / ac and / sf $55,139 / $1.27 Adjusted Price/ FAR N/A Adjusted Price/ Unit N/A Comments This comparable represents the sale of 65.515 acres of vacant land located at 669 Lloyd Road in an unincorporated area of Denton County (Oak Point ETJ), Texas. The site shape is rectangular, and its topography is generally level. The site is not zoned and no city utilities are available to the site. The intended use at the time of sale was for development of a residential subdivision. This area is in the Denton ISD. © 2023 CBRE, Inc. Addenda Addendum B OWNER CONTACT © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES CBRE, Inc. 301 Commerce Street Suite 3131 Fort Worth, Texas 76102 Allison Jackson, SR/WA, RWA, R/W-AC Vice President September 5, 2023 The Reserve at Creekside Homeowner's Association 12700 Hillcrest Road, Suite 234 Dallas, Texas 76210 RE: Appraisal for the City of Denton Granada Lift Project in Denton County, Texas Temporary Construction Easement 921 Quail Hollow Avenue Denton, Texas 76210 Dear Owner/Owner Representative: CBRE has been contracted by McCarthy Partners to appraise the above referenced property on the City of Denton Granada Lift Project in Denton County, Texas. The purpose of the appraisal is to estimate the market value of the portion of the property needed for various easements at this particular location. According to Denton County Appraisal District, you are the owner/representative of the above referenced property, which has been identified as part of the proposed right-of-way project. As part of the appraisal process and according to our engagement agreement, it is necessary we contact the property owner in conjunction with the appraisal. We would like to extend to you, or your designated representative, the opportunity to accompany us on the inspection and to disclose any information about the property that you consider pertinent. Your presence is not mandatory during the inspection, but it is necessary that we contact you either via email or phone. This will give us the best chance to address your concerns and identify relevant property characteristics. If you cannot accompany us during the inspection, you can grant permission to inspect unaccompanied or an inspection will be made from the roadway. Please fill-out and return the following CBRE Questionnaire. In addition, please contact Allison Jackson, SR/WA, RWA, R/W-AC (allison.jackson@cbre.com) or 817-899-6440 to schedule a specific time to meet. We greatly appreciate your prompt attention to this matter. We look forward to hearing from you or your representatives, and we appreciate your cooperation during this project. Best regards, CBRE, INC. Valuation & Advisory Services Allison Jackson, SR/WA, RWA, R/W-AC Vice President TX-1380217-G © 2023 CBRE, Inc. VALUATION & ADVISORY SERVICES CBRE, Inc. 301 Commerce Street Suite #3131 Fort Worth, Texas 76102 www.cbre.com Please complete and return the following by mail or email (allison.jackson@cbre.com). Subject Property: 921 Quail Hollow Avenue Type of Easement: Temporary Construction Easement Client: McCarthy Partners Project: City of Denton Granada Lift Project Owner: The Reserve at Creekside Homeowner's Association Check applicable boxes: I am the owner of the referenced property You may inspect unaccompanied Please contact before inspection I would like to be present at the inspection The property is currently listed for sale for $____________________ Permission Granted by: Phone Number: Email: Point of Contact for Entry (if different from above): Relationship of Point of Contact: __________________________________________________ _____________________ Signature Date © 2023 CBRE, Inc. Addenda Addendum C PROJECT INFORMATION © 2023 CBRE, Inc. © 2023 CBRE, Inc. © 2023 CBRE, Inc. © 2023 CBRE, Inc. Addenda Addendum D SUBJECT INFORMATION © 2023 CBRE, Inc. © 2023 CBRE, Inc. © 2023 CBRE, Inc. Addenda Addendum E QUALIFICATIONS © 2023 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL – FORT WORTH Allison Jackson, SR/WA, RWA, R/W-AC Vice President, Fort Worth, TX T +1 817 806 1042 M +1 817 899 6440 E Allison.jackson@cbre.com Lic. TX 1380451-G Professional Experience Allison Jackson, SR/WA, RWA, R/W-AC, is a Vice President of the Valuation & Advisory Services Group within the South-Central Region. Located in the Fort Worth office, Ms. Jackson has over a decade of real estate appraisal and consulting experience throughout the State of Texas, with a primary focus on right of way valuations and expert witness testimony support. Prior to joining CBRE in 2018, Ms. Jackson was with JLL after their 2016 acquisition of her previous employer, Integra Realty Resources. Ms. Jackson was with Integra Realty Resources for over eight years serving as an Analyst before being promoted to Senior Analyst. During her tenure, she assisted in valuation and consulting services on various property types, working extensively on eminent domain assignments. Ms. Jackson’s experience in appraisal includes projects for the Texas Department of Transportation (TxDOT), various local municipalities, Trinity River Authority (TRA), ONCOR, Dallas Area Rapid Transit, Tarrant Regional Water District, TEXRail and various other pipeline and electrical transmission line companies. Ms. Jackson is a senior right of way professional within the International Right of Way Association as she holds the SR/WA, RWA and R/W-AC designations. In addition, Ms. Jackson is a Candidate for Designation within the Appraisal Institute actively pursuing her MAI designation. Pro Affiliations / Accreditations ‒ Certified General Appraiser, State of Texas ‒ International Right of Way Association, Chapter 36 Member (SR/WA, RWA, R/W- AC Designations) ‒ Appraisal Institute, Candidate for Designation Education ‒ Texas A&M University, College Station, Texas ‒ Master of Real Estate (2009) ‒ Bachelor of Business Administration, Marketing (2008) ‒ Successfully completed numerous real estate related courses and seminars sponsored by the International Right of Way and the Appraisal Institute © 2023 CBRE, Inc. Appraiser: Allison Christine Jackson License #: TX 1380451 G License Expires: 06/30/2025 Chelsea BuchholtzCommissioner Certified General Real Estate Appraiser Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov. ALLISON CHRISTINE JACKSON 301 COMMERCE STREET SUITE 3131 FORT WORTH, TX 76102 © 2023 CBRE, Inc. 1 ©2022 CBRE, INC. PROFILES RIGHT OF WAY APPRAISAL TEAM LEAD / TEXAS Catherine A. Thomas, MAI, SRA, AI-GRS, R/W-AC Director, Austin, TX T +1 512 499 4911 E cathy.thomas@cbre.com Lic. TX 1336636 G Professional Experience Catherine Thomas is a Director with CBRE’s Valuation & Advisory Services group in Austin, Texas and co-manages the Texas Right of Way Appraisal Team. Ms. Thomas has more than nineteen years of real estate appraisal and consulting experience with the majority of her experience being in right-of-way. Her appraisal background includes analysis and appraisal of properties for lending, litigation, right-of-way and other purposes under eminent domain. She is a MAI, SRA and AI-GRS designated member of the Appraisal Institute and holds the Right-of-Way Appraiser certification (R/W-AC) of the International Right of Way Association (IRWA). Ms. Thomas has served on the board of directors for IRWA Austin Chapter 74 since 2014 and was elected Chapter Secretary in 2021 and Chapter Treasurer in 2022; she currently serves as Chapter Vice President in 2023. Ms. Thomas is well versed in providing litigation support for ongoing cases and has provided expert testimony in numerous special commissioners’ hearings across Texas; her eminent domain experience includes appraisal of full and partial fee and easement acquisitions for numerous utility providers, municipalities and governmental entities, as well as property owners, throughout Texas. Awards IRWA Chapter 74 Professional of the Year (2020) Pro Affiliations / Accreditations ‒ Certified General Appraiser, State of Texas ‒ Appraisal institute, Designated Member (MAI, SRA, AI-GRS) ‒ International Right of Way Association (R/W-AC) ‒ Certified Department of Transportation Appraiser, State of Texas ‒ American Taekwondo Association, 3rd Degree Black Belt Education ‒ St. Edward’s University, Master of Arts in Human Services ‒ The University of Texas at Austin, Bachelor of Arts ‒ Continuing Education, various Appraisal Courses © 2023 CBRE, Inc. Appraiser: Catherine A Thomas License #: TX 1336636 G License Expires: 01/31/2025 Chelsea BuchholtzCommissioner Certified General Real Estate Appraiser Having provided satisfactory evidence of the qualifications required by the Texas Appraiser Licensing and Certification Act, Occupations Code, Chapter 1103, authorization is granted to use this title: Certified General Real Estate Appraiser For additional information or to file a complaint please contact TALCB at www.talcb.texas.gov. CATHERINE A THOMAS 500 W 2ND STREET, SUITE 1700 AUSTIN, TX 78701 © 2023 CBRE, Inc.