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HomeMy WebLinkAboutApparisal Edwards and SEC MayhillTM APPRAISAL ASSOCIATES Real Estate Appraisers & Consultants 101 S. Locust, Ste. 600 P.O. Box 158 Denton, Texas 76202 Phone: (940) 243-2387 tracy@tma-appraisal.com www.tma-appraisal.com TMA File #: A-25-10-7852 This is an Appraisal Report intended to comply with the reporting requirements set forth under Standards Rule 2-2 of the USPAP. The report presents practical explanations of the data, reasoning, and analysis incorporated in the appraisal process to develop the opinion of value, and includes descriptions of the subject property, the regional and local property market, and the opinion of highest and best use. The firm is not responsible for unauthorized use of this report. Specific/extraordinary assumptions and/or hypothetical conditions utilized in the value opinion: i It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. i It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. i It is a specific assumption of this report that the land size reported for the subject is sufficiently correct as to not adversely affect the value opinion. i It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. CLIENT: Zachry Construction C/O Paul Kramer/paul.kramer@zachrycorp.com SUBJECT PROPERTY: ~2.164 Ac +\- of Vacant Land SWC Mayhill Rd. & Edwards Rd. Denton, Texas 76208 DATE OF REPORT: October 31st, 2025 DATE OF VALUE: October 21st, 2025 INTENDED USE: Decision Making Purposes INTENDED USER: Zachry Construction C/O Paul Kramer/paul.kramer@zachrycorp.com DEFINITION OF MARKET VALUE The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised c. a reasonable time is allowed for exposure in the open market d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 PURPOSE OF APPRAISAL Estimate the market value of the fee simple interest of the subject property in “as is” condition as of the date(s) of value subject to the Assumptions and Limiting Conditions set forth herein for decision making purposes. SCOPE OF WORK Conduct a visual survey of the subject, regional area and market area. Analyze secondary data sources to assist in assessing market conditions, zoning and tax information in the market area. Estimate the highest and best use of the property. Research market data on comparable properties confirmed by participants in the regional market area. Develop a credible opinion of the defined value for the subject property utilizing the applicable approaches to value. Present the opinion in the appropriate format. 1 Federal Reserve System, 12 CFR Part 225, FDIC 12 CFR 323 and OCC 12 CFR 34 VALUATION METHODOLOGY Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment are summarized as follows: Approaches to Value Approach Applicability to Subject Uses in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized The sales comparison approach is considered applicable as there are similar land sales in the market and sufficient sales data for comparison. The cost approach is not applicable as the subject as there are no existing improvements. The subject is vacant land. The income capitalization approach is not applicable as the subject is vacant land and is not typically bought and sold for income producing abilities. RESEARCH AND ANALYSIS The extent of research and analysis conducted is detailed in the individual sections of this assignment. However, the steps can be summarized as follows: Researched area market unimproved, and improved sales and listing, researched replacement cost data, income, expense data, rates of returns, researched zoning, tax, property history, reviewed and researched property and comparable data site, improvement and other characteristics, and reviewed and research other relevant information pertaining to the subject, data used in analysis, and the market area. INSPECTION Jana Newburn and conducted an exterior inspection of the subject property from the roadway on October 21st, 2025. PRIOR SERVICES STATEMENT USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuations, consulting, property management, brokerage, and any other services. We have not performed any services, as an appraiser or in any other capacity, regarding the subject property of this report within the three-year reporting period immediately preceding acceptance of this assignment COMPETENCY OF APPRAISER(S) Jana Newburn has been active in real estate appraisal in North Texas since 2000. She obtained her Texas Certified General Real Estate Appraiser’s license in 2002 and has over 24 years of experience appraising and reviewing both commercial and residential real estate. She began her career with Tommy Marshall & Associates in 2000 and has recently returned to TM Appraisal Associates. She has worked for a variety of institutions over the years, including banks, mortgage lenders, AMCs, private lending institutions, attorneys, and individuals. Her expertise and competency include a variety of commercial and residential properties, including 1-4 family, farm/ranch, commercial land, religious facilities, light industrial, office, retail, development analysis, and eminent domain and right-of-way analysis. SECTION A SUBJECT PROPERTY OVERVIEW TM APPRAISAL ASSOCIATES Section A EXECUTIVE SUMMARY TMA File #: A-25-10-7852 Property Type: 2.164 Ac +\- Land Address: TBD Mayhill Rd. & Edwards Rd. County/State: Denton County/Texas Location: SWC of Mayhill Rd. Edwards Rd., Denton, Texas Legal Description: A total of 2.164 acres of Land in the D. Hough Survey, Ab. No. 646, & Providence Place II, Block F, Lot1R(ROW), City of Denton, Denton County, Texas Date of Report: October 31st, 2025 Date of Value: October 21st, 2025 *Lines are Approx. Purpose of Appraisal: Estimate the market value of the fee simple interest of the subject “as is”. Appraisers: Jana Newburn, Associate Estimated Marketing Time: 12 Months SITE DATA Land Area: 2.164 ac +\- (94,264 SF +\-). Current Zoning: “MR” – Mixed Use Regional Shape: Slightly Irregular /Slightly Triangular Road Frontage: Approx. 800 feet along the east side of Mayhill Rd. & Approx. 650 Ft. along west side of Edward Rd. * Estimate per GIS measurement. However, this portion of Mayhill & Edwards is new construction, and the GIS are not fully updated. We have estimated the frontage to the best of our ability. Please rely on survey for accuracy Topography: Generally, Level to Gently rolling and sloping to the street Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: All city utilities available. Flood Plain: None; Zone X, Outside Flood, per FEMA Map 48121C0387G, June 10th, 2020 VALUE CONCLUSIONS Cost Approach Not Developed Sales Comparison Approach $1,460,000 Income Approach Not Developed FINAL OPINION OF VALUE $1,460,000 TM APPRAISAL ASSOCIATES Section A PHOTOGRAPHS OF SUBJECT PROPERTY TM APPRAISAL ASSOCIATES Section A HISTORY OF THE SUBJECT PROPERTY As required by the Code of Professional Ethics and Standards of Professional Appraisal Practice established by the Appraisal Institute, the appraisal report must consider and analyze any current agreement of sale, options, listings, and any prior sales within the past three years. This analysis should reasonably disclose and verify: a. Grantor(s) - Grantee(s) b. Sale Date(s) c. Sale Price(s) and terms of financing, discounting the sale to a cash equivalent, when necessary. d. Any interrelated parties to each transaction. The subject data is reported in compliance with USPAP and no other pertinent information was noted other than is reported below. The data should not be used in lieu of a title search and is not a guarantee to the chain of title. According to the Denton Central Appraisal District, the subject property is owned by the City of Denton, who purchased the subject from Kevin Nelms & Richard Greb on or about 4/15/2021, recorded in deed 2021-73208 for an undisclosed price. No additional sales or transfers were recorded with the Denton CAD in the previous three-year period. No listings were found on NTREIS MLS or Costar. The subject is assessed under accounts: 975295, 99105, and 635301. The subject is not listed for sale and no contract for sale on the property is known to exist for the subject as of the date of value. The intended use of the appraisal report is to establish market value. TM APPRAISAL ASSOCIATES Section B SECTION B SUBJECT PROPERTY ANALYSIS TM APPRAISAL ASSOCIATES Section B MARKET AREA ANALYSIS The subject market area is considered to be the City of Denton, the county seat of Denton County. The market area is 70-80% developed and the area is in the slow growth stage of the real estate cycle. New construction is occurring and land uses consist of retail/commercial on primary thoroughfares and in the city center, light industrial uses near railroad spurs and airports, recreational uses located on nearby lakes, and residential on acreage and agricultural uses located in the ETJ and in unincorporated Denton County. No external adverse conditions were noted in the area. The market area is bound by the Denton city limits to the north, south, east, and west. MARKET AREA MAP TM APPRAISAL ASSOCIATES Section B North Texas Council of Governments Population Summary TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B TM APPRAISAL ASSOCIATES Section B Denton County Profile Summary: Denton County, Texas, is a rapidly growing and diverse area located in the Dallas-Fort Worth metropolitan region. Here’s a detailed community profile of Denton County: General Information Population: As of 2023, Denton County's population is approximately 1.1 million, making it one of the fastest-growing counties in Texas. Location: Denton County is situated in North Texas, bordered by Cooke County to the north, Collin County to the east, Tarrant County to the south, and Wise County to the west. Economy Industry: The economy of Denton County is diverse, with strong sectors in education, technology, manufacturing, and healthcare. The area has seen substantial growth in business and industry due to its proximity to the Dallas-Fort Worth metroplex. Employment: Major employers include the University of North Texas, Texas Woman’s University, and several large corporations in technology and manufacturing. Education Schools: The county is served by multiple independent school districts (ISDs), including Denton ISD, Lewisville ISD, and Flower Mound ISD, among others. The schools are known for their strong academic programs and extracurricular activities. Higher Education: Denton County is home to several higher education institutions, including the University of North Texas (UNT) and Texas Woman’s University (TWU) in Denton, as well as campuses of Collin College. Culture and Recreation Parks and Recreation: The county offers numerous parks, trails, and recreational facilities. Lake Lewisville and Lake Ray Roberts are popular spots for boating, fishing, and outdoor activities. Cultural Attractions: Denton County has a vibrant cultural scene with various museums, theaters, and music venues. The city of Denton is particularly known for its music festivals and historic downtown area. Community Events: The county hosts a range of community events and festivals throughout the year, celebrating local culture, arts, and heritage. Housing and Real Estate Housing Market: The real estate market in Denton County is diverse, with options ranging from suburban neighborhoods to rural properties. The county has seen a surge in new residential developments due to its growing population. TM APPRAISAL ASSOCIATES Section B Development: New housing and commercial developments are ongoing, with a focus on accommodating the increasing demand from new residents and businesses. Transportation Roads: Denton County is well connected by major highways, including Interstate 35E, which provides access to Dallas and other areas of the metroplex. State highways and local roads also facilitate regional travel. Public Transit: The county is served by the Denton County Transportation Authority (DCTA), which provides bus and commuter rail services connecting Denton to neighboring areas, including Dallas. Community and Lifestyle Demographics: Denton County is diverse, with a mix of urban, suburban, and rural populations. It attracts a range of residents, from young professionals and families to retirees. Lifestyle: The county offers a blend of suburban and rural lifestyles, with access to urban amenities and a high quality of life. The area is known for its strong community spirit, good schools, and recreational opportunities. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community. Its strong economy, educational institutions, and quality of life make it a desirable place to live and work. City of Denton, Texas - Community Profile Denton, Texas, located in the northern part of the Dallas-Fort Worth (DFW) metroplex, is a growing city with a rich history, vibrant community, and strong economic prospects. Here's an overview of the community: Population & Demographics: Population: Denton has an estimated population of around 160,000 as of 2023, making it one of the larger cities in North Texas. The city has experienced consistent growth in recent years, fueled by its proximity to the DFW metro area, local universities, and expanding job opportunities. Demographics: The population is diverse, with a median age of about 29 years, reflecting the large student population. Denton is home to two major universities: the University of North Texas (UNT) and Texas Woman’s University (TWU), contributing to a significant portion of its residents being students. Economy & Employment: Key Industries: Denton's economy is driven by education, healthcare, retail, and manufacturing. UNT and TWU are major employers, along with Denton Independent School District and various healthcare providers. TM APPRAISAL ASSOCIATES Section B Employment Growth: The city's employment base is steadily growing, with opportunities in higher education, government, and healthcare leading the way. Its proximity to DFW International Airport and other key hubs also supports logistics and transportation industries. Education: Higher Education: The University of North Texas is a leading public research university with over 40,000 students, and Texas Woman's University focuses on healthcare and education programs. These institutions play a significant role in shaping Denton's cultural and economic landscape. Public Schools: Denton is served by the Denton Independent School District, known for its quality education offerings and serving over 30,000 students across the city and surrounding areas. Housing & Cost of Living: Housing: Denton offers a range of housing options, from single-family homes in suburban neighborhoods to student apartments near the university campuses. The median home price is around $355,000, making it relatively affordable compared to other parts of DFW. Cost of Living: While housing prices are on the rise, Denton remains more affordable than central Dallas or Fort Worth. The overall cost of living in Denton is about 5-10% lower than the national average, with lower housing costs but slightly higher transportation expenses due to its suburban nature. Culture & Recreation: Cultural Scene: Denton is known for its music and arts scene, often called the "Austin of North Texas" because of its vibrant live music culture. The city hosts the annual Denton Arts & Jazz Festival, which draws thousands of visitors. Parks and Recreation: Denton offers numerous parks, trails, and outdoor activities, including Lake Ray Roberts and Clear Creek Natural Heritage Center. The city is also working to expand its green spaces and recreational facilities as its population grows. Transportation: Connectivity: Denton is well-connected via Interstate 35, providing easy access to Dallas, Fort Worth, and Oklahoma. The Denton County Transportation Authority (DCTA) operates bus and rail services, including the A-train, which connects Denton to the DFW light rail system. TM APPRAISAL ASSOCIATES Section B Outlook: Denton continues to experience strong population and economic growth. It retains its small-town charm while offering the amenities of a larger urban center, driven by its universities, arts, and evolving infrastructure. Denton’s blend of education, affordability, and cultural vibrancy makes it a desirable place to live for students, professionals, and families alike. Overall, Denton County is a dynamic and growing region that combines the benefits of proximity to the Dallas-Fort Worth metroplex with a diverse and thriving local community TM APPRAISAL ASSOCIATES Section B SITE ANALYSIS According to the DCAD, the subject site consists of 3 contiguous tracts of land totaling (Referred to as Lots 1-3) 2.164 acres +\- or approximately 94,264 SF +/- of land. The subject site is located on the SWC of Mayhill Road & Edwards Road, in the City of Denton. The subject does not have a physical address as of the effective date of value. For the purpose of this report, we will refer to the subject site at times as “Lots 1-3”. Property Type: 2.164 Ac +\- or 94,264 SF +\- of Land Address: TBD Mayhill Rd & Edwards Road, City of Denton County/State: Denton County/Texas Location: SWC of Mayhill Rd. & Edwards Rd., Denton, Texas Legal Description: A total of 2.164 acres of Land in the D. Hough Survey, Ab. No. 646, & Providence Place II, Block F, Lot1R(ROW), City of Denton, Denton County, Texas Land Area: 2.164 ac +\- (94,2646 SF +\-). *For the Purposes of this report the subject site is referred to as Lots 1-3. The lots are contiguous, and total size is ~2.164 acres. Current Zoning: “MR” – Mixed Use Regional Shape: Slightly Irregular /Slightly Triangular Road Frontage: Approx. 800 feet along the east side of Mayhill Rd. & Approx. 650 Ft. along west side of Edward Rd. *Estimate per GIS measurement. However, this portion of Mayhill & Edwards is new construction, and the GIS are not fully updated. We have estimated the frontage to the best of our ability. Please rely on survey for accuracy. *It is a specific assumption of this report that the land size reported for the subject is sufficiently correct as to not adversely affect the value opinion. Topography: Generally, Level to Gently rolling and sloping to the street Soil Conditions: Assumed adequate; rely on geo-technical report Utilities: All city utilities available. Flood Plain: None; Zone X, Outside Flood, per FEMA Map 48121C0387G, June 10th, 2020 Highest and Best Use: “As Vacant” – Hold for Development with small to medium scale mixed use/commercial development. TM APPRAISAL ASSOCIATES Section B The subject site is physically located on SWC of Mayhill Rd & Edwards Rd., Denton, Texas. The site is legally described as total of 2.1 64 acres of Land in the D. Hough Survey, Ab. No. 646, & Providence Place II, Block F, Lot1R(ROW), City of Denton, Denton County, Texas. The site offers approximately 415 feet along the east side of Mayhill Road, and approximately 420 along the north side of E. McKinney Street (Per GIS Estimate). The subject property is situated at the intersection of two roads, a primary & secondary neighborhood thoroughfare — Mayhill Road (primary) and Edwards Rd (secondary) both feature concrete curbs and sidewalks, with a lighted signal at the intersection. Mayhill Road is a four-lane, median-divided thoroughfare, while Edwards consists of two lanes. Both roadways experience above-average traffic volumes and offer excellent visibility, providing strong exposure for commercial development. The immediate and surrounding area is characterized by ongoing mixed- use development, including commercial, institutional, and light industrial uses. Single family is primary located along secondary and interior roadways. According to the North Central Texas Council of Governments, traffic counts average approximately 17,000 vehicles per day along Mayhill Road and approximately 9500 vehicles along Edwards (a visual representation is included in the addenda). The site’s frontage provides above- average visibility and accessibility, supporting a variety of potential uses. Considering the site’s size (2.164 acres), surrounding zoning, and the continued transition and growth in the area, it is the appraiser’s opinion that the property’s highest and best use is to hold for near-term development with a small- to medium-scale mixed-use project. The site consists of 3 contiguous tracts (referenced as Lots 1-3) and is considered slightly irregular/triangular with near gently rolling to level topography which slopes to street grade, with native grass, rock, and some tree cover. The frontage-to-depth ratio and ingress/egress are considered good for commercial or mixed use. The site offers adequate utility availability in sufficient quantities for development with all city services provided by the City of Denton. Utility availability is considered to be offered in sufficient quantities for commercial, institutional, light industrial, or a mixed-use development. DCAD is the source of land size and provided in the following pages to aid the reader in size, topography, and site layout. It is a specific assumption of this report that the land size reported for the subject is sufficiently correct as to not adversely affect the value opinion. Lots 1-3 total land size is estimated at ~2.164 acres according to available public record. The site is assumed to have typical utility & right of way easements along the site border at the street. The subject site does not appear to have any adverse easements or encroachments. However, the reader should rely on a survey. It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. The immediate surrounding land uses include commercial, institutional, light industrial along primary roadways, and single family and vacant land scattered throughout the area. No adverse external influences were observed in close proximity. TM APPRAISAL ASSOCIATES Section B AERIAL PHOTOGRAPH TM APPRAISAL ASSOCIATES Section B The subject property is located outside the 100-year flood zone, in Zone X. It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. The applicable map is FEMA Map 48121C0387G, June 20, 2020. FLOOD PLAIN MAP TM APPRAISAL ASSOCIATES Section B IMPROVEMENT ANALYSIS The subject site is 3 contiguous vacant tracts of land with no improvements noted during our visual inspection from the roadway. No improvements are listed per DCAD. ZONING The City of Denton regulates land use within their municipal jurisdiction by the implementation and enforcement of zoning ordinances. Zoning ordinances purportedly screen and control urban development, promote consistency, compatibility and contribution to the community, and define the quality and character of the neighborhood area. The subject property is situated within the City of Denton in an area currently zoned “MR” – Mixed Use Regional. The immediately surrounding the subject zoning is primary for mixed used development and planned development. MR Purpose – “Purpose. The MR district is intended to provide a walkable urban center to augment the regional draw and image of Denton. Development may include national retailers, employment, restaurants, entertainment venues, and housing at the highest levels of scale and density within the city. This district ensures that development will complement and embrace existing viable uses and raise the standard of design to increase regional draw, accommodate greater connectivity and mobility options, and create a sense of place. The MR district may be established in areas with the greatest regional access and is sensitive to the adjacent built and natural context. The subject property is situated at the intersection of two roads, a primary & secondary neighborhood thoroughfare—Mayhill Road (primary) and Edward Rd (secondary)— both feature concrete curbs and sidewalks, with a lighted signal at the intersection. Mayhill Road is a four-lane, median-divided thoroughfare, while Edwards consists of two lanes. Both roadways experience above-average traffic volumes and offer excellent visibility, providing strong exposure for commercial development. The immediate and surrounding area is characterized by ongoing mixed- use development, including commercial, institutional, and light industrial uses. Single family is primary located along secondary and interior roadways. According to the North Central Texas Council of Governments, traffic counts average approximately 17,000 vehicles per day along Mayhill Road and approximately 9,500 vehicles along Edwards (a visual representation is included in the addenda). The site’s frontage provides above-average visibility and accessibility, supporting a variety of potential uses. Considering the site’s size (2.164 acres), surrounding zoning, and the continued transition and growth in the area, it is the appraiser’s opinion that the property’s highest and best use is to hold for near-term development with a small- to medium-scale mixed-use project. TM APPRAISAL ASSOCIATES Section B Surrounding land uses include commercial, institutional, industrial and mixed uses along primary roadways, with single family and vacant land scattered throughout the area. Considering these influences, the site is considered to offer characteristics for small to medium scale commercial/mixed-use development. ZONING MAP TM APPRAISAL ASSOCIATES Section B TAX AND ASSESSMENT DATA The subject property is within the tax jurisdictions of the Denton Independent School District, City of Denton, and Denton County. According to the Denton CAD, the subject is assessed under account numbers: 975295, 991005, and 635301. The 2025 tax rates and 2025 assessed values were utilized in this analysis. The site’s total assessed value for 2025 is reported at only $210, which is considered nominal and attributed to its current public (City) ownership. If the property were privately owned, the assessed value would reflect market value. Therefore, applying the 2025 tax rates to the concluded market value of $1,460,000, as developed in the Sales Comparison Approach, results in an estimated annual property tax burden of approximately $28,181, which is considered a reasonable indication under market conditions and private ownership. TM APPRAISAL ASSOCIATES Section B HIGHEST AND BEST USE The concept of Highest and Best Use can be defined as being: “The reasonably probable use of property that results in the highest value.” “To be reasonably probable, traditionally a use must meet certain conditions: x The use must be physically possible (or it is reasonably probable to render it so). x The use must be legally permissible (or it is reasonably probable to render it so). x The use must be financially feasible. Uses that meet the three criteria of reasonably probable uses are tested for economic productivity, and the reasonably probable use with the highest value is the highest and best use.” 2 The subject site is physically located on SWC of Mayhill Rd & Edwards Rd., Denton, Texas. The site offers approximately 415 feet along the east side of Mayhill Road, and approximately 420 along the north side of E. McKinney Street (Per GIS Estimate). As of the effective date of value the subject does not have a physical address. The subject property is situated at the intersection of two primary neighborhood thoroughfares— Mayhill Road and Edward Rd— both feature concrete curbs and sidewalks, with a lighted signal at the intersection. Mayhill Road is a four-lane, median-divided thoroughfare, while Edwards consists of two lanes. Both roadways experience above-average traffic volumes and offer excellent visibility, providing strong exposure for commercial development. The immediate and surrounding area is characterized by ongoing mixed-use development, including commercial, institutional, and light industrial uses. The site consists of three contiguous tracts and is considered slightly irregular/triangular with near gently rolling to level topography which slopes to street grade, with native grass, rock, and some tree cover. The frontage-to-depth ratio and ingress/egress are considered good for commercial or mixed use. The site offers adequate utility availability in sufficient quantities for development with all city services provided by the City of Denton. Utility availability is considered to be offered in sufficient quantities for commercial, institutional, light industrial, or a mixed-use development. Drainage appears to be adequate and no issues with drainage were noted during our onsite inspection, as of the effective date of this inspection. The subject property is not located in a flood hazard area. It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. The applicable map is FEMA Map 48121C0387G, June 10th, 2020. The site is assumed to have typical utility & right of way easements along the site border at the street. The subject site does not appear to have any adverse easements or encroachments. However, the reader should rely on a survey. 2The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, 2020, Pages 305-315 TM APPRAISAL ASSOCIATES Section B The immediate surrounding land uses include commercial, institutional, light industrial along primary roadways, and single family and vacant land scattered throughout the area. No adverse external influences were observed in close proximity. The subject property is situated within the City of Denton in an area currently zoned “MR” – Mixed- Use Regional. The immediately surrounding the subject zoning is primary for mixed used development and planned development. Due to the size of the site (2.164 ac), the growing area, surrounding adjacent zoning, as well as the ongoing change in use and patterns of development, it is our opinion the subject highest and best use is to hold for development with a small to medium scale commercial development with a mixed-use development in the near future. The subject is located on a two primary neighborhood thoroughfares (Mayhill Rd. & Edwards Rd.) in an ongoing developing mixed-use area. Both Mayhill & Edwards Rd. are primary thoroughfares at the subject site with mostly commercial and mixed-use commercial, institutional, and industrial located in and around the area. Traffic levels and visibility are considered above average with North Central Council of Governments reporting traffic counts between approximately 17K daily vehicles along Mayhill Rd, and approximately 9500 vehicles along Edwards daily (a visual representation is presented in the addenda. Considering these influences, the site is considered to offer characteristics for small to medium scale mixed-use development. The highest and best use of the subject site “As Vacant” – Hold for Development with small to medium scale mixed-use development. TM APPRAISAL ASSOCIATES Section D SECTION C VALUATION ANALYSIS TM APPRAISAL ASSOCIATES Section D APPROACHES TO VALUE The estimation of value involves a systematic process in which the problem is defined; the work necessary to solve the problem is planned; and the data required is acquired, classified, analyzed and interpreted into an estimate of value. In this process, three basic approaches: the Cost Approach, the Income Approach, and the Sales Comparison Approach. When one or more of these approaches is not applicable in the appraisal process, justification is warranted. A brief explanation of each approach follows: In the Cost Approach, the appraiser must first estimate the value of the subject site by comparing it to similar sites that have recently sold or are currently offered for sale. The replacement cost new of the improvements, as determined by comparison to similarly constructed properties, is then estimated. Depreciation from all sources is determined and subtracted from the replacement cost new of the improvements, to arrive at their present worth. The present worth of all improvements is added to the estimated site value with the result being the indicated value by this approach. The age/condition and/or design may render this approach inapplicable due to the subjectivity of the estimation of depreciation. The Income Approach is a process in which the anticipated flow of future benefits (actual dollar income or amenities) is discounted to a present worth figure through the capitalization process. The appraiser is primarily concerned with the future benefits resulting from net income. Net income is the remainder after deduction of expenses of operation from effective gross income. The steps in this approach include estimating potential gross income by comparison with competing properties and estimating expenses (derived from historical and/or market experience) to determine a projected net income stream. The income stream is then capitalized into an indication of value by using capitalization rates extracted from competitive properties in the market or by using other techniques when applicable. The Sales Comparison Approach involves the comparison of similar properties that have recently sold or similar properties that are currently offered for sale, with the subject property. These properties are compared to the subject with regard to differences or similarities in market conditions, age/condition, location, physical characteristics, and any conditions influencing the sale. The notable differences in the comparable properties are then adjusted from the subject property to indicate a value range for the property being appraised. When sufficient sales data is available, these adjustments are best determined by the actions of typical buyers and sellers in the subject's market. This value range, as indicated by the adjusted comparable properties, is then correlated into a final indicated value for the subject property by this approach. TM APPRAISAL ASSOCIATES Section D The value estimates, as indicated by the applicable approaches, are reconciled into a final value estimate of the property's worth. The sales comparison approach is considered applicable as there are a number of similar land sales in the market and sufficient sales data for comparison. The cost approach is not applicable as the subject is vacant land with no improvements. The income capitalization approach is not applicable as the subject is considered vacant land and is not typically bought and sold for income producing abilities. The Sales Comparison Approach is applicable and developed in the following pages. TM APPRAISAL ASSOCIATES Section D SALES COMPARISON APPROACH This approach to value, also termed the Market Approach, requires the comparison of similar competitive properties that have recently sold to the subject property. In this market area, the most typically used unit of comparison is the Sale Price per Square Foot (SP/SF). The unit of comparison is obtained by dividing the property's sale price by the applicable unit. Since this unit of comparison involves a comparison of physical attributes, adjustments must be made for any differences that affect sale prices. These differences include financing conditions, market conditions, location, size, and various utility attributes. This is a reliable unit of comparison, assuming a high degree of comparability. The sales comparison approach is considered applicable as there are numerous similar land sales in the market and sufficient sales data for comparison. Recent sales of relatively similar properties within the market area are analyzed as a basis for valuation of the subject property. Those sales, which are considered to be the most reliable and comparable to the subject, are presented on the following pages. TM APPRAISAL ASSOCIATES Section D Summary and Adjustment Grid - Comparable Land Sales TM APPRAISAL ASSOCIATES Section D Location Map - Comparable Land Sales TM APPRAISAL ASSOCIATES Section D LAND SALES DETAIL PAGES TM APPRAISAL ASSOCIATES Section D COMPARABLE LAND SALE NUMBER 1 Lines are approximate Address: Lot 4A Loop 288 City: Denton County/State: Denton/Texas SALES DATA Grantor: 100 North Loop 288, LLC Grantee: Waffle House Inc Sale Date: 9/18/2024 Sale Price: $550,000 Site Size: 0.5740 Acre/25,003 SF +/- SP/SF: $22.00/SF Terms of Sale: Market Zoning/Use: SC/Similar Utilities: All available Verified By: DCAD, Deed 2024-102055/SVN Broker/Office Files Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section D COMPARABLE LAND SALE NUMBER 2 Lines are approximate Address: 824 Teasley Lane City: Denton County/State: Denton/Texas SALES DATA Grantor: Denton West Joint Venture Grantee: Grindstone Denton LLC (Dutch Bros) Sale Date: 5/8/2024 Sale Price: $775,000 Site Size: 0.89 ac/38,899 SF +\- SP/SF: $19.92/SF Terms of Sale: Market Zoning/Use: SC/Similar Utilities: All available Verified By: DCAD, Deed 2024-48563/SVN Broker/Office Files Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section D COMPARABLE LAND SALE NUMBER 3 Lines are approximate Address: 2301 Hunters Creek Rd (NWC Hunters & Teasley) City: Denton County/State: Denton/Texas SALES DATA Grantor: Denton West Venture Grantee: City of Denton Sale Date: 012/12/2023 Sale Price: $2,000,000 Site Size: 3.158 Acre/137,56 SF +\- SP/SF: $14.54/SF Terms of Sale: Market Zoning/Use: PF/Similar Utilities: All available Verified By: DCAD; Deed 2023-131462/ SVN Broker/Office Files Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section D COMPARABLE LAND SALE NUMBER 4 Lines are approximate Address: TBD Teasley/Lot 2C, Blk A, Denton West Joint Venture Addition City: Denton County/State: Denton/Texas SALES DATA Grantor: Denton West Joint Venture Grantee: Shops at Teasley Lane LLC Sale Date: 12/18/2024 Sale Price: $1,360,000 Site Size: 2.45Acre/106,722 SF +\- SP/SF: $12.74/SF Terms of Sale: Market Zoning/Use: PD/Similar Utilities: All available Verified By: DCAD, Deed 2024-137922, Broker- Greg Johnson Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section D COMPARABLE LAND SALE NUMBER Lines are approximate Address: NEC US 377 & Country Club Rd City: Denton County/State: Denton/Texas SALES DATA Grantor: Vandesmith Developers Ltd Grantee: Vaulk IV LLC Sale Date: 3/7/2024 Sale Price: $$1,202,000 Site Size: 1.84 acre/80,155 SF +\- SP/SF: $15.00 Terms of Sale: Market Zoning/Use: SC/Similar Utilities: All available Verified By: DCAD, Deed 2024-24138, Broker- Greg Johnson Flood Plain: None – Zone X Improvements: None Easements: Typical Utility and Right-of-way Easements assumed TM APPRAISAL ASSOCIATES Section D Analysis of Comparable Sales “As Is” The unit of comparison developed in this approach from the comparable sales to estimate value is considered to be one primarily utilized by market participants for this property type. The adjustments warranted for the comparable sales are discussed below. Property Rights Conveyed: Each of the comparable sales involved the sale of a fee simple interest. When considering the subject property rights appraised, adjustment for property rights conveyed of the comparable sales is not warranted. Financing Terms: All of the sales are reported to have market terms or cash to seller transactions; therefore, adjustment consideration is not warranted. Conditions of Sale: All of the sales utilized in this analysis are reported to be arms-length transactions with no known adverse or extraordinary conditions affecting the sale. Therefore, none of the sales warrant adjustment consideration for conditions of sale. Market Conditions: The sales transacted in 2023-2024 in current market conditions and do not warrant adjustment consideration. Location/Site/Access/Exposure/Traffic: The subject site is physically located on SWC of Mayhill Rd & Edwards Rd., Denton, Texas. The site offers approximately 415 feet along the east side of Mayhill Road, and approximately 420 along the north side of E. McKinney Street (Per GIS Estimate). The subject property is situated at the intersection of two roads, a primary & secondary neighborhood thoroughfare — Mayhill Road (primary) and Edward Rd (secondary) both feature concrete curbs and sidewalks, with a lighted signal at the intersection. Mayhill Road is a four-lane, median-divided thoroughfare, while Edwards consists of two lanes. Both roadways experience above- average traffic volumes and offer excellent visibility, providing strong exposure for commercial development. The immediate and surrounding area is characterized by ongoing mixed-use development, including commercial, institutional, and light industrial uses. Sales 3 and 5 are considered the most similar in traffic, visibility and exposure – both are corner access. With Sale 5 being a lighted corner. Both have high traffic and visibility. No adjustment is considered necessary. Sale 1 is located north, along SH Loop 288. Although, located just off the corner SH Loop has slightly higher traffic and exposure. A 5% downward adjustment was applied. Sales 2 & 4 are located along Teasley with similar traffic and exposure. However slightly inferior access, both being interior lots. A 3% upward adjustment is applied to each. TM APPRAISAL ASSOCIATES Section D Size: Smaller properties tend to sell for more per unit than similar larger properties due to the economies of scale. The subject consists of 94,264 SF +\- (2.164 acres) of total land area. Sales 4 & 5 are the most similar to the subject in size warranting no adjustment. Sales 1 & 2 are moderately smaller at approximately 25,003 SF +\-, and 38,899 SF +\-, respectively. They are adjusted downward 20% due to economies of scale. Sale 3 is modestly larger at 137,562 SF; it is adjusted upward 10% to account for economies of scale. Zoning/Use: The subject and comparable sales all have similar intended use. No adjustment is necessary. Utilities: The subject and comparable sales all have similar access to utilities warranting no adjustment. Flood Hazard Area/Easements: The subject and comparable sales do not exhibit flood area, and all have similar utility. No adjustment is necessary. Improvements: The subject and comparable sales are all vacant lots. No adjustment is necessary. Shape/Topography: The subject property has adequate shape and topography for development being primarily level above street grade to gently sloping to street grade and is slightly irregular to slightly triangular in shape. All of the comparable sales are considered to have utility of shape and topography conducive to development overall, similar to the subject and do not warrant adjustment consideration. Value Indication by Unit of Comparison “As Is” The comparable sales have an unadjusted range of $12.74 to $22.00 per SF, and an adjusted range of $13.13 to $16.54 per SF. The average per square is $15.43 and the median is $16.00. All five sales are considered to be representative of the subject property’s value after adjustments are taken into consideration. Equal emphasis on all five sales as they all are considered the good representation once adjustments are taken into consideration. Therefore, we have reconciled a value per SF of $15.50/SF based on our analysis. The value estimate is calculated below. Gross Land Area (SF) SP/SF Value Indication 94,264 x $15.50 = $1,461,090 Value Estimate $1,460,000 VALUE INDICATION BY UNIT OF COMPARISON Value Conclusion by the Sales Comparison Approach The estimated market value of the fee simple interest in the subject property “As is” is $1,460,000. TM APPRAISAL ASSOCIATES Section D SECTION D FINAL RECONCILIATION, MARKETING TIME, ASSUMPTIONS, LIMITING CONDITIONS, AND CERTIFICATION OF APPRAISERS TM APPRAISAL ASSOCIATES Section D RECONCILIATION AND FINAL OPINION OF VALUE Cost Approach Not Applicable Sales Comparison Approach $1,460,000 Income Approach Not Applicable The Cost Approach utilizes replacement cost estimated by using actual costs for comparable facilities and/or Marshall and Swift Valuation Services. Indirect costs associated with property are also determined. The land value is estimated by analyzing current land sales within the area. The estimated land value is added to indicate the value estimate by this approach. The Sales Comparison Approach is considered a generally reliable method because the units of comparison are market based. The units of comparison are direct, which renders the comparison highly indicative of market behavior and the primary approach utilized by market participants. The Income Approach is generally considered to be an appropriate valuation method when the property has rental income-producing potential. The potential gross income, stabilized vacancy rate and operating expenses are estimated from market data. The Cost Approach is not applicable as the subject is vacant land. The Sales Comparison Approach is considered applicable as there are numerous similar land sales in the market and sufficient sales data for comparison. The Income Capitalization approach is not applicable as the subject is considered primary vacant land and is not typically bought and sold for income producing abilities. TM APPRAISAL ASSOCIATES Section D Utilizing the Sales Comparison Approach to value as it best represents the actions of buyers and sellers in the market, the estimated market value of the fee simple interest for the subject property in "as is" condition subject to the Assumptions and Limiting Conditions, as of October 21st, 2025: FINAL OPINION OF VALUE OF THE SUBJECT PROPERTY “AS IS” - - ONE MILLION FOUR HUNDRED SIXTY THOUSAND DOLLARS - - - -$1,460,000 - - We appreciate the opportunity to provide this appraisal for you. Should you have any questions regarding the appraisal, contact the firm at (940) 243-2387. Respectfully submitted, TM APPRAISAL ASSOCIATES Section D MARKETING PERIOD/EXPOSURE TIME Per USPAP the exposure period for the subject property must be analyzed. Five factors must be considered in the exposure period, the ability of those marketing the property, the type of property, the listing price, the size and location of the market and the comparability of available market data. An adept marketer will tend to move the property in a shorter period than will an average one and an inept marketer may require twice as much. Exposure period must be assessed in terms of whether the property was originally listed reasonably close to its true value as perceived by the market. Any property listed significantly above its true value will tend to attract no interested parties due to the perception that it is a waste of time pursuing its purchase. Further, a property listed noticeably below the market's perception of the value will tend to sell in a shorter period than may otherwise be required and therefore distort the concept of "reasonable marketing period". A study by M/PF, a real estate market research firm in Dallas, polled real estate brokers as to the "reasonable marketing period" for various types of real estate. The response was 9 - 12 months. Implicit in this response is that the property is listed reasonably close to the market's perception of its true value. Historically, purchasers of any property which is considered by the market to have value, are available regardless of product oversupply, availability of financing or lack thereof. The definition of market value specifically requires that there exist a potential buyer and potential seller, each acting prudently and knowledgeably and implies a consummation of a sale. Therefore, an additional factor to be considered in analyzing the marketing period is the size and location of the market. For very large industrial properties or for very specialized properties such as petrochemical refining, large granaries, etc., the market may be relatively small, specialized and national or international rather than local or regional. More typical real estate such as apartments, retail, office and vacant land has a market that is local, regional national or international implying a shorter marketing period and exposure time. The date of the comparable sales must be considered. If no data is available to indicate current expectations of current market conditions and is only available for market conditions unlike current conditions, the value indicated by the data may not necessarily reflect current expectations and the analysis must include these circumstances. Properties similar to the subject in the market area are marketable to a wide group of potential purchasers in the local region, state, and nation. Exposure time is considered to be twelve months. Without exception, all real estate offices contacted expressed, if offered at or near market value and had the property been correctly exposed to the market for the past twelve months, the property should sell for a reasonable price. After development of the preceding pages of market data, it is our opinion that had the property been offered at or slightly above the market value conclusion an exposure period from 9 - 12 months is considered necessary for the property to potentially consummate a sale closer to the appraised market value. An exposure period of twelve months or less is considered applicable for the subject property. TM APPRAISAL ASSOCIATES Section D ASSUMPTIONS AND LIMITING CONDITIONS 1. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 2. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 3. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 5. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. 7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. 8. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a non-conformity has been reported, stated, defined, and/or considered in this appraisal report. 9. It is assumed that all required license, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 10. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. 11. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. TM APPRAISAL ASSOCIATES Section D 12. The firm is not qualified to detect hazardous waste and/or toxic materials. Any comment by the firm that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The descriptions and comments are the result of the routine observations made during the appraisal process. 13. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with disabilities act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property’s value, marketability, or utility. 14. Any proposed improvements are assumed to be completed in a good workmanlike manner in accordance with the submitted plans and specifications. 15. The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 16. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the firm, and in any event, only with proper written qualification and only in its entirety. TM APPRAISAL ASSOCIATES Section D Specific/extraordinary assumptions and/or hypothetical conditions utilized in the value opinion: i It is a specific assumption of this report that the subject has no environmental or structural conditions which could adversely affect its marketability or market value. i It is a specific assumption of this report that the subject is not adversely affected by a flood hazard area or drainage area other than is indicated in this report. i It is a specific assumption of this report that the land size reported for the subject is sufficiently correct as to not adversely affect the value opinion. i It is a specific assumption of this report that the subject is not adversely affected by encroachment, easement, or restriction other than is indicated in this report. TM APPRAISAL ASSOCIATES Section D CERTIFICATION OF THE APPRAISER(S) We certify that, 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 personal, unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. 4. The compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 5. The appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 6. The analyses, opinions, and conclusions are developed, and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. 7. I, Jana Newburn, have made a personal inspection of the property that is the subject of this report. 8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of report, I, Jana Newburn, am a State Certified General Real Estate Appraiser. 11. TM Appraisal Associates or Tommy Marshall & Associates have not appraised or provided valuation services for the subject property in the preceding three-year period. 12. The value estimate is not valid unless this certification is included in the appraisal. Respectively Submitted, SECTION E ADDENDA APPRAISER QUALIFICATIONS APPRAISER LICENSES NCTCOG HISTORICAL TRAFFIC COUNT – MAYHILL & EDWARDS https://trafficcounts.nctcog.org/ AG APPRAISAL AGREEMENT PAGE 1 APPRAISAL AGREEMENT PAGE 2