ST16-01A-ES220310 (1)Prestonwood Property Analysis
October 14, 2019
Ms. Tina Chao
American First National Bank.N.A.
9999 Bellaire Boulevard
Houston. Texas 77036
Re: Appraisal Report
A 991 Square Foot (NRA) Convenience Store
With Fueling Services (Chevron Brand)
101 East Belt Line Road
Coppell. Dallas County, Texas 75019
File No. 2019-1920.AFNB
Dear Ms. Chao:
At your request, we have personally inspected the above-captioned property in order to estimate
the market values "as is" of the fee simple real estate interest as of September 19, 2019. The
report date is October 14, 2019.The purpose of this appraisal is to estimate the value opinions
for the following:
As Is" market value of the fee simple interest in the real estate for subject
property at 101 East Belt Line Road,Coppell,Texas 75019.
A description of the subject, together with the sources of information and bases of the
conclusions, is stated in the accompanying sections of this report.This report was prepared in
accordance with the appraisal standards of the Appraisal Institute, the Uniform Standards of
Professional Appraisal Practice of the Appraisal Foundation,and follows the requirements of the
Financial Institutions Reform,Recovery, and Enforcement Act (FIRREA). Additionally, the
report conforms to the SBA SOP 50-10-5 (K)implemented by the Office of Financial
Assistance. The report was prepared in accordance with the minimum standards as set forth by
the client.
To report the assignment results,we used the Appraisal Report format of Standards Rule 2-2 of
USPAP. This report contains all information significant to the solution of the appraisal problem.
The appraisal includes:a personal inspection of the property and influencing environ; a review of
historical ownership regarding the subject,review of surveys, building plans/specifications,
plats, maps, etc. as available;research into market activity including sales, current listings,
inspection of comparables; research into investor motivations; and analysis of the above. Based
upon our inspection, the subject does not appear to contain any significant natural,cultural,
recreation, or scientific value.
)0d iroperty Analysis
DCAD MAP
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-46 -
Prestonwood Property Analysis
AERIAL VIEW OF SUB.JECT
Subject
-47
Prestonwood Property Analysis
FLOOD MAP
Prepared for: Prestonwood Property
InterFlood 101 E Belt Line Rd yaa node
Coppell,TX 75019-4704
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FEMA Special Flood Hazard Area:No Areas inundated by 500-year floodingMap Number:48113C015SK Protected Areas
Zone: X Areas Inundated by 100-yoor flooding FloodwayMapDate: July 07,2014 Velocity Hozard Subject Area FIPS: 48113
-48 -
Prestonwood Property Analysis
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LAND VALUATION
In order to estimate the value of subject site,the sales comparison approach (method)is used.
The sales comparison approach is based primarily upon the principle of substitution which
implies that a prudent individual will pay no more for a property than it would cost the individual
to purchase a comparable substitute property. The approach recognizes that a typical buyer will
compare asking prices and seek to purchase the property which meets his wants and needs for the
lowest cost. The steps involved in developing the sales comparison approach are: 1) research the
market to obtain information pertaining to sales, listings and sometimes offerings of property
Similar to the property being appraised; 2) investigate the market data to determine if the data is
factually accurate and to determine if each sale represents an arm's length transaction; 3)
determine relevant units of comparison (i.e. sales price per square foot) and develop a
comparative analysis for each; 4) compare the subject and comparable sales according to the
elements of comparison and then adjust each sale as appropriate; and 5) reconcile the multiple
value indications that result from the adjustment of the comparables into a single value
indication.
Units of comparison are defined as "the components into which a property may be divided for
purposes of comparison."In the case of vacant land,property is normally bought and sold on the
basis of price per acre, or price per square foot.All appropriate units of comparison should be
analyzed for the property type being appraised, and the resulting value indications reconciled to a
single indicated value or value range.
Adjustments are usually required to compare the sale properties to the subject property. The
adjustments may either be applied to the total sales price,or to the unit or units of comparison.
The sales are adjusted for differences in elements of comparison, which are defined as "the
characteristics of properties and transactions that cause the prices paid for real estate to vary."
The following elements of comparison should be considered in the sales comparison approach:
1) real property rights conveyed; 2) financing terms; 3) conditions of sale; 4) date of sale; 5)
location, and 6) physical characteristics.
Adjustments may be made in terms of percentages,or in dollar amounts. Either the total sales
price of the sales may be adjusted, or the adjustments can be applied to one or more units of
comparison. The adjustments should be made in sequential order, with the adjustment for real1
property rights always made first,the adjustment for financing terms then made to the sales price
adjusted for real property rights conveyed,etc. The exception is that adjustments for location and
physical characteristics can be grouped together as a single cumulative adjustment amount or
percentage.
Sales having a highest and best use similar to that of the subject have been researched and
verified with brokers or principals involved in the sales. The sales utilized in this process are
found by a search of deed records and/or obtained through brokers and other real estate
professionals.Factual data relating to each of the sales has been verified to the fullest extent
possible with principals involved in the sales, or brokers or other individuals having specific
knowledge of a transaction. The available recent land sales are presented on the following pages:
69-
Land Sale No. 1
Location: 508 Silicon Drive
City/County/State: Southlake, Tarrant County Texas 76092
Sale Data
Grantor:Carbium Capital LLC
Fat Cat, LLC
October 6, 2017
42073225
Grantee:
Sale Date:
Tax No:
Property Rights:
Conditions of Sale:
Fee Simple
Arm's Length Transaction
Cash to Seller Financing
Sale History:None in prior three years
Confidential Verification:
Property Data:
Gross Land Size: 0.6395 acres; 27,855 square feet
$712,810
$25.59 per square foot
Commercial Use
Sales Price:
Sales Price Per SF:
Zoning/Current Use:
Proposed Use (if known):
Road Frontage:
Topography:
Flood Plain:
Office/Retail
Silicon Drive
Level
Zone X
Utilities: All utilities available to site
Shape:
Highest & Best Use:
Easements/Encumbrances:
Rectangular
Commercial / retail
Typical utility easements on perimeter of site
200Dayson Market:
Comments: Proposed use is a office/retail development.
-70 -
PLAT MAP NO. 1
SALE NO. 1
0T
****
-71
Land Sale No. 2
5699 State Highway 121
The Colony,Denton County Texas 75056
Location:
City/County/State:
Sale Data:
Grantor:Colony 5 Partners, LLC
Hyungkyu, Inc.
December 12,2017
Grantee:
Sale Date:
Document No: 17-152224
Property Rights:
Conditions of Sale:
Fee Simple
Arm's Length Transaction
Cash to Seller Financing:
Sale History:
Verification:
None in prior three years
Confidential
Property Data:
Gross Land Size: 1.3211 acres; 57,547 square feet
$1,064,000
$18.49 per square foot
Commercial Use
Sales Price:
Sales Price Per SF:
Zoning/Current Use:
Proposed Use (if known):
Road Frontage:
Retail
211 FF on north side of SH 121 and 265 FF on west
side of South Colony Boulevard.
Level Topography:
Flood Plain: Zone X
All utilities available to site Utilities:
Rectangular
Commercial / retail Shape:
Highest & Best Use:
Easements/Encumbrances: Typical utility easements on perimeter of site
Proposed use is a retail/commercial development. Comments:
72
PLAT MAP NO. 2
4/47
SALE NO.2
ig one Te
Septembe 25. 2019
A 07
-73 -
Land Sale No. 3
524 S. Coppell Road
Coppell,Dallas County,Texas 75019
Location:
City/County/State
Sale Data:
Benson Family Special Needs Trust
My Adjuster, LLC
August 2, 2018
18002360010030000
Grantor:
Grantee:
Sale Date
Tax ID:
Property Rights:
Conditions of Sale:
Fee Simple
Arm's Length
Cash to Seller Financing:
Sale History:None in prior three years
Property Data:
Gross Land Size:
Sales Price: 0.55 acre; 23,958 square feet
$350,000
$14.61 per square foot
Retail Use/Vacant site
Unknowm
Sales Price Per SF:
Zoning/Current Use:
Proposed Use (if known):
Road Frontage:
Topography:
Flood Plain:
Coppell Drive
Level
Zone X
All utilities available to site
Utilities:
Shape:
Highest & Best Use:
Easements/Encumbrances:
Rectangular
Commercial/ retail
Typical utility easements on perimeter of site 95
Days on Market:
Comments: Located just north of Justin Road.
-74
PLAT MAP NO. 3
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132.07 AR
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239.97
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990 1OWNHOM ES
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91.94
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15
Land Sale No. 4
Location: 1300-1311 Meridian DriveCity/County/State: Irving, Dallas County Texas 75038
Sale Data:
Q Hotels,LLC
Blue Star Land, L.P.
March 29,2019
323225900A02A0000
Grantor:
Grantee:
Sale Date
Tax ID:
Property Rights:
Conditions of Sale: Fee Simple
Arm's Length Transaction
Cash to Seller Financing
Sale History:None in prior three years
Confidential Verification:
Property Data:
Net Land Size:
Sales Price:
Sales Price Per SF:
Zoning/Current Use:
Proposed Use (if known):
Road Frontage:
4.01 acres; 174,676 square feet
$3,267,000
$18.70 per square foot
Commercial Use
Mixed use
577 FF along north side of Meridian Drive and 371 FF along the east side of High Point Drive Level
Zone X
All utilities available to site
Topography:
Flood Plain:
Utilities:
Shape:
Highest & Best Use:
Easements/Encumbrances:
Triangular
Commercial / retail
Typical utility easements Days on Market:
112
Comments: Future commercial or retail development. parcel represents an assemblage, as the buyer owns several adjoining parcels.
This
-76
PLAT MAP NO. 4
Date of copy: /26/2019DCAD ID: 3232250004 02A 00oa
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-77
LAND SALES MAP
SALE 2
Lewisvilla
1218)
Flower Mound
BTack Mark Strip
Shikoh 2 Hebron
Eower Mound
Windml Hill
Hilliard Landing
Area
Air Park-Dala
win Coves Park
Murrell Park
NonhshaLe
SAMAYBURNJoLLWAY
tuve adoeea Part
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Rockledge Park
Oak Grove Park
Addison
190 Addison
SALE 3 Carrollton
Southlake Val ENORTHWEST ÁWY
SUBJECT
HNW CARPENTER:FWY Worih Lake
SALE I 114B IRA E
Farmers Branch
p835
Pallas/F Worth Intl
LYNDON!840HNSON AWY
5E
SALE 4
Minters'Chapel
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-78-
Price/SF
S25.59
S18.49
Sale Date Size (Ac) Zoning Comparable
|508 Silicon Drive,Southlake Oct-2017 0.64
Dec-2017| 1.325699 State Hwy 121,The Colony
| 524 S. Coppell Road,Coppell
1300-1311 Meridian Road,Irving
Aug-2018 0.55 S14.61
Mar-20199 4.01 S18.70
NA 0.7019 C Subject 101 E Belt Line Road
|Average
Maximum Unadjus ted Value_
Minimum Unadjus ted Value
Percent Difference
$19.35
$25.59
$14.61
75.2%
In addition to the closed sales we investigated the following comparable listing of commercial
property in the vicinity of the subject:
COMPARABLE LISTING
Location Size Asking Price Zoning Site
City, State Zip Acres Per SF Shape Comments
Frontage on Denton Tap Road, going toward
LBJ Freeway
885 Denton Tap Road @ E. Belt
Line Road 1.76 $15.0 PD Irregular
Coppell,TX
Comments on Market Data
The site is comprised of a total of 0.7019 acres or 30,573 square feet tract located on the
southeast corner of East Belt Line Road and South Belt Line Road in the south portion of the
City of Coppell.The preceding data was screened and selected on the basis of location and
physical similarities with the subject.All sites were purchased for the purpose of commercial
development use. The comparables were the best contirmed and verifiable data available to the
appraiser. Sites in proximity to the subject were either ground leased or the sales transaction was
not verifiable.
All sites have full access to municipal utilities and services.
Non-Physical Adjustment Criteria
The common unit of comparison was the sales price per square foot (Price/SF) indicator. Non-
physical elements of comparison or adjustment criteria are addressed as follows:Property Rights
Conveyed -All sales involved the conveyance of leased fee interests, no adjustments required;
Financing Terms -All sales were reported as "cash to seller"of "cash equivalent", no
adjustments required; Conditions of Sale-All sales were reported as being "arm's length"with
no atypical buyer/seller motivations; Market Conditions As far as we can ascertain, the sales
are recent enough that no significant variances could be attributable to timing,no adjustments
required.
-79
Location/Physical Adjustment Criteria
Adjustments for location and physical variances are made cumulatively to the non-physical
adjustment criteria. Location components include configuration, visibility and exposure,
surrounding and adjacent land uses,access,the reputation and character of the micr0
local/neighborhood. etc. Location adjustments are typically based on paired data sets tempered
by appraiser judgment and experience. First we will adjust for the differences in location.
Location: Location is one of the most important factors which contribute to the value of a parcel
of land.All of the sales are located in the northern tier of the D/FW metro area. Each sale is
located along a commercial corridors or commercial development. Sale No. 1 is located in the
city of Southlake within a planned commercial development just south of Highway 121 and is
considered superior requiring an adjustment downward by -20%. Sale Nos. 2 and 4 are located
in more developed areas and within proximity to Highway 121 with greater ease of access.These
two sales are adjusted downward -5% and -10%, respectively.
Physical adjustments include size,shape,adequacy of utilities & services, topography, soil
conditions. etc. The subject is a 0.7019 acres tract of land. The sales ranged in size from 0.75
acre to 4.01 acres. An analysis of the land sales was conducted to determine what adjustments, if
any. are required in order to compensate for differences between the sizes of the sales and the
subject property. Typically, smaller tracts sell for more per unit than larger size tracts.It is
difficult to mathematically isolate the effect of varying size.It is an established principle that
there is a relationship between the marginal utility and price differential for each unit added (SF,
acres. etc.) to a parcel of land.
proportional effect on the overall size and, theretore, the price adjustment per unit is required.
For each unit added (marginal unit) from an optimal size there is a decrease in overall percentage
and impact of each additional unit on the utility and fee simple of the existing units.This
phenomenon must be taken into consideration in establishing the effect of size in comparing
sales to the subject property.
For each additional unit, added there is a diminishing
As mentioned earlier,the sales ranged from 0.64 acre to 4.01 acres,the subject is a 0.7019 acres
tract of land.Larger size tracts of land generally sell less per unit than smaller tracts of land.
Within the range of the comparable sales, only Sale 2 (1.32 acres)and Sale 4 (4.01) acres were
determined to require an upward adjustment.
The subject shape is roughly rectangular in shape but functional for
Shape and Zoning:
development. All of the sales have similar shapes and present the same appeal and function to the
market.
The following grid reflects the respective measurable ditferences when compared to the subject
site:
80-
Land Sale Adjustment Chart
Total Adj. $/SF
$20.47
Size Other S/SF
$25.59
Comparable Loc#
0%
5%
0%
508 Silicon Drive,South lake 20%0%| 20%|
$18.49
$14.61
$17.77
-5%0%
0%
5699 State Hwy 121,The Colony $18.49 0%
524 S. Coppell Road,Coppell $14.61 0% 0% 1300-1311 Meridian, Irving $18.70 -10%5%| 0% 5%
Adjusted Values Per Square Foot
Average Adjusted Value/SF
Adjusted High Value/SF
|Adjusted Low Value/SF
S17.83
$20.47
$14.61 Percent Difference
40%| Unadjus ted Values Per Square Foot
Average Unadjusted Value/SF
Unadjusted High Value/SF
Unadjusted Low Value/SF
$19.35
$25.59
S14.61|Percent Difference
75%
The unadjusted indicators varied between $14.61l per square foot and $25.59 per square foot.The mean was $9.35 per square foot and the variance was 75%.After adjustment, the range was S14.61/SF to $20.47/SF. The mean was $17.83 per square foot and the variance was 40%.
The appraiser relied on all sales for determination of the final market value.The average of the four sales is $17.83 per square foot.Conclusion -consideration of the actual sales, a point estimate Fee Simple interest market value for the subject site was $18.00 per SF or $ 550,000(rounded):
FEE SIMPLE ESTIMATE
30,573 square feet x $18.00 per square foot $550,314Roundedto S 550,000