ST9301A-AL 960904 Price Denton Inc,
Price Den on Inc,
Price ,Denton Inc,
HARRINGTON'S BAIT SHOP
A COMMERCIAL BUILDING ON 1.4817 ACRES OF LAND
ON THE SOUTH SIDE OF SANDY LAKE ROAD
ADJACENT TO THE TRINITY RIVER
COPPELL, DALLAS COUNTY, TEXAS
AS OF:
SEPTEMBER 4, 1996
PREPARED FOR:
-- MR. KENNETH M. GRIFFIN, P.E.
ASSISTANT CITY MANAGER/CITY ENGINEER
CITY OF COPPELL
255 PARKWAY BOULEVARD
COPPELL, TEXAS 75019
PREPARED BY:
-- KATHLEEN PRICE WILKE, MAI, CRE
CRAIG A. CHRISTENSEN, MAI
~ PRICE- DENTON INC.
14800 QUORUM DRIVE, SUITE 330
DALLAS, TEXAS 75240
96-027
- Price Denton Inc,
September 30, 1996
-- Mr. Kenneth M. Griffin, P.E.
Assistant City Manager/City Engineer
CITY OF COPPELL
255 Parkway Boulevard
Coppell, Texas 75019
Re: Appraisal
-- Harrington Bait Shop
1601 Sandy Lake Road
_ Coppell, Dallas County, Texas
Dear Mr. Griffin:
At your request, an inspection has been made of the above-captioned property and we have
-- appraised the market value of the fee simple interest in the property described in this report,
as of September 4, 1996. The accompanying report sets forth our methods, data, reasoning and
conclusions.
The subject property consists of an approximately 2,048 square foot commercial building and
-- two small outbuildings located on a 1.4817 acre site. The improvements were reportedly
constructed in 1975.
In our opinion, the market value of the fee simple interest in the subject property (whole
property), as of September 4, 1996 was:
ONE HUNDRED TWENTY EIGHT THOUSAND DOLLARS
($128,000)
14800 Quorum Drive · Suite 330
Dallas, Texas 75240
(214) 960-1606 · FAX: (214) 960-8906
Mr. Kenneth M. Griffin
September 30, 1996
Page 2
In our opinion, the market value of the part taken, as of September 4, 1996 was:
FOUR THOUSAND NINE HUNDRED FIFTY TWO DOLLARS
($4,952)
In our opinion, the market value of the temporary construction easement, as of September 4,
1996 was:
ONE THOUSAND TWO HUNDRED TWENTY EIGHT DOLLARS
($1,228)
In our opinion, the market value of the fee simple interest in the remainder before the take,
as of September 4, 1996 was:
ONE HUNDRED TWENTY-THREE THOUSAND FORTY-EIGHT DOLLARS
($123,048)
In our opinion, the market value of the fee simple interest in the remainder after the take, as
of September 4, 1996 was:
ONE HUNDRED TWENTY THOUSAND DOLLARS
($120,000)
In our opinion, the damages to the remainder after the take, as of September 4, 1996 was:
THREE THOUSAND FORTY-EIGHT DOLLARS
-- ($3,048)
- Price,Denton Inc,
Mr. Kenneth M. Griffin
-- September 30, 1996
Page 3
The total estimated compensation to the property owner is summarized as follows:
Part Taken in Fee $4,952
_ Part Taken for Temporary Easement 1,228
Damages to Remainder 3,048
Total Estimated Compensation $9,228
-- Our conclusions are based on Limiting Conditions and Assumptions which are found in the
accompanying report. They are also based on projections of future events which may or may
not actually occur, but are believed reasonable in light of available data.
We are happy to answer any questions you may have after reading the report.
PRICE- DENTON I~NC
Kat~ee~lm-"~ice Wilke, C'RE, MAI
President
Texas Certificate #: TX-1320438-G
-- Craig A. Christensen, MAI
Appraiser
Texas Certificate #: TX-1322245-G
- Price.Denton Inc.
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................. 1
CERTIFICATION ................................................... 3
-- APPRAISAL ISSUES ................................................ 5
PROPERTY DESCRIPTION ................................. 5
OWNERSHIP HISTORY ................................... 5
INTEREST APPRAISED ................................... 5
SCOPE OF THE APPRAISAL ............................... 5
PURPOSE AND FUNCTION OF THE APPRAISAL ............... 6
VALUATION DATE AND INSPECTION DATE ................... 6
-- TERMINOLOGY ......................................... 6
EXPOSURE TIME ........................................ 7
LIMITING CONDITIONS AND ASSUMPTIONS ............................ 8
-- DALLAS/FORT WORTH AREA OVERVIEW ............................... 11
-- COPPELL AREA ANALYSIS .......................................... 20
NEIGHBORHOOD ANALYSIS ......................................... 25
SITE ANALYSIS ................................................... 27
IMPROVEMENTS ANALYSIS ......................................... 31
AD VALOREM TAXES ............................................... 35
ZONING AND DEED RESTRICTIONS ................................... 37
HIGHEST AND BEST USE ............................................ 39
- Price.Denton Inc.
VALUATION PROCESS-WHOLE PROPERTY .............................. 42
LAND VALUATION ................................................. 44
COST APPROACH - WHOLE PROPERTY ................................ 58
SALES COMPARISON APPROACH-WHOLE PROPERTY ..................... 62
-- RECONCILIATION AND FINAL ESTIMATE OF VALUE - WHOLE PROPERTY .... 78
DESCRIPTION OF PART TAKEN ...................................... 80
VALUATION OF PART TAKEN ........................................ 81
VALUATION OF REMAINDER BEFORE THE TAKE ........................ 82
CALCULATION OF DAMAGES ........................................ 85
96.027 Price, Denton Inc.
EXHIBITS
SUBJECT PHOTOGRAPHS ................................. Following Page 2
METROPOLITAN LOCATION MAP ............................ Facing Page 11
NEIGHBORHOOD MAP .................................... Facing Page 25
-- FLOODPLAIN MAP ........................................ Facing Page 25
BUILDING SKETCH ....................................... Facing Page 31
ZONING MAP ............................................ Facing Page 37
COMPARABLE LAND SALES MAP ............................ Facing Page 51
IMPROVED PROPERTY SALES MAP .......................... Facing Page 71
PROPOSED ACQUISITION .................................. Facing Page 80
ADDENDA
TEMPORARY CONSTRUCTION EASEMENT
RIGHT-OF-WAY DESCRIPTION
QUALIFICATIONS OF APPRAISERS
PARTIAL LIST OF CLIENTS
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 1 Executive Sumnmry
-- EXECUTIVE SUMMARY
Subject Property Harrington's Bait Shop, a one-story
commercial building situated on a 1.4817 acre
tract of land.
-- Location 1601 Sandy Lake Road (South side of Sandy
Lake Road, adjacent to the Trinity River and
the Coppell city limits, Coppell, Dallas
County, Texas
Legal Description Part of Abstract 1152
Rights Appraised Fee Simple
Zoning R - Retail
Highest and Best Use
-- As Vacant Hold for future development
As Improved Continue use as a commercial building
Effective Date of Valuation September 4, 1996
Proposed Acquisition 4,952 Square Feet
Value Indications:
-- Land Value $ 65,000
Cost Approach - Whole Property $133,000
Sales Comparison Approach-
- Whole Property $123,000
-- Final Estimate of Value-Whole Property $128,000
-- 96.027 Price.Denton Inc,
Harrington - Sandy Lake Rd. 2 Executive Summary
Value of Part Taken
Right-of-way Taking $ 4,952
-- Temporary Construction Easement $ 1,228
Remainder Before Take $123,048
Remainder After Take $120,000
Damages to Remainder $ 3,048
Total Compensation $ 9,228
-- 96.027 Price.Denton Inc,
· PHOTOGRAPHS OF THE SUBJECT PROPERTY
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A southerly view of thc subject
A southeasterly view of thc subject
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I ~.o~, Price.Denton Inc.
PHOTOGRAPHS OF THE SUBJECT PROPERTY (Cont'd)
A northeasterly view of the subject
A southerly view of thc rear part of thc property
Price, Denton Inc,
PHOTOGRAPHS OF THE SUBJECT PROPERTY (Cont'd)
A view of the residential structurc
A view of the storage shed
Price. Denton Inc,
PHOTOGRAPHS OF THE SUBJECT PROPERTY (Cont'd)
An interior view of the sales tloor
A view of thc kitchen area
Price. Denton Inc.
PHOTOGRAPHS OF THE SUBJECT PROPERTY (Cont'd)
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I A westerly view of Sandy Lake Road
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~ easterly view of Sandy Lake Road
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] %.0~ Price,Denton Inc.
Harrington - Sandy Lake Rd. 3 Certification
__ CERTIFICATION
We certify that, to the best of our knowledge and belief,
a) The statements of fact contained in this report are true and correct.
b) The reported analyses, opinions, and conclusions are limited only by the assumptions and
-- limiting conditions set forth herein, and are the personal, unbiased professional analyses,
opinions, and conclusions of the undersigned.
c) We have no present or prospective interest in the property that is the subject of this
report, and no personal interest or bias with respect to the parties involved.
d) Our compensation for this appraisal is not contingent on any action or event resulting
_ from the analyses, opinions, or conclusions in, or the use of, this report. More
specifically, 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.
The appraisal assignment was not based on a requested minimum valuation, a specific
-- valuation, or the approval of a loan.
_ e) The analyses, opinions, and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Uniform Standards of Professional
Appraisal Practice and the Code of Professional Ethics and the Standards of Professional
Practice of the Appraisal Institute, the Uniform Standards of Professional Appraisal
Practice of the Appraisal Foundation and the Rules of the Texas Real Estate
-- Commission.
_ f) The use of this report is subject to the requirements of the Appraisal Institute relating
to review by its duly authorized representatives.
g) As of the date of this report, Kathleen Price Wilke, CRE, MAI and Craig A. Christensen,
MAI, have completed the requirements of the continuing education program of the
-- Appraisal Institute.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 4 Certification
_ h) Kathleen Price Wilke, CRE, MAI, and Craig A. Christensen, MAI have made a personal
inspection of the property that is the subject of this report.
-- i) The comparable sales and lease data used in formulating our value estimate have been
personally verified by Price-Denton Inc. In the interest of confidentiality, the sources'
-- identification has been retained in our files.
One or more of the signatories of this appraisal report is a Member or Candidate of the
Appraisal Institute. The Bylaws and Regulations of the Institute require each Member and
Candidate to control the use and distribution of each appraisal report signed by such Member
-- or Candidate. Therefore, except as hereinafter provided, the party for whom this appraisal
report was prepared may distribute copies of this appraisal report, in its entirety, to such third
-- parties as may be selected by the party for whom this appraisal report was prepared; however,
selected portions of this appraisal report shall not be given to third parties without the prior
written consent of the signatories of this appraisal report. Further, neither all nor any part of
this shall be disseminated to the general public by use of advertising media, public relations
media, news media, sales media or other media for public communication without the prior
- written consent of the signatories of this appraisal report.
-- Respectfully Submitted,
PRIC,E~/~ENTON INC.
President
-- Texas Certificate #: TX-1320438-G
Craig A. Christensen, MAI
Appraiser
-- Texas Certificate #: TX-1322245-G
96.027 Price. Denton Inc,
Harrington - Sandy Lake Rd. 5 Appraisal Issues
__ APPRAISAL ISSUES
PROPERTY DESCRIPTION
-- The subject of this appraisal is identified as being a 1.4817 acre tract of land improved with a
2,048 square foot commercial building as the primary improvement, with an approximately 434
square foot residence and a 315 square foot shed structure as secondary improvements.
According to the present owner and county tax records, the primary improvements were
constructed in 1975. The street address of the property is 1601 Sandy Lake Road, Coppell,
Texas. The property is known locally as Harrington's Bait Shop. Legally, the property can be
briefly described as being part of the Weston Perry Survey, Abstract 1152, Coppell, Dallas
-- County, Texas.
OWNERSHIP HISTORY
According to the owner, title to the subject property has been in the name of James Albert
Harrington since 1983. To the best of our knowledge there have not been any other transfers
of the property since that time.
INTEREST APPRAISED
We have appraised the market value of the fee simple interest, assuming the property to be
leased at a market rent and market occupancy level and assuming the property is free and clear
of liens and subject to normal police powers.
-- SCOPE OF THE APPRAISAL
This appraisal employs two of the three traditional approaches to value: the Sales Comparison
Approach and the Cost Approach. Due to the commercial use of the improvements lacking
utilities, which significantly limit the number of potential uses for the property, the Income
Capitalization Approach was not considered, as this is considered to make the subject a poor
potential investment property, with no lease data or capitalization rate data available for
-- properties lacking utilities service. During the course of this assignment, the appraisers
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 6 Appraisal Issues
researched comparable sales and market trends which was analyzed in the context of the
appropriate approach to arrive at a value estimate. The methodology employed in research and
analysis is set forth in the Valuation Sections of the report.
PURPOSE AND FUNCTION OF THE APPRAISAL
It is the appraisers' understanding that the function of this appraisal is for partial acquisition
by the City of Coppell for improvements to Sandy Lake Road and possible eminent domain
proceedings related to the subject property. The purpose of the appraisal is to estimate the
market value of the fee simple interest in the property that is to be acquired. Since this
acquisition is less than the entire property, any special benefits and damages to the remainder
property will be included in accordance with the laws of Texas.
VALUATION DATE AND INSPECTION DATE
The valuation date is September 4, 1996. The appraisers inspected the property on September
4, 1996.
TERMINOLOGY
The following terminology is needed to understand this appraisal:
Market Value
-- The following definition of Market Value is that definition generally accepted by the courts of
the State of Texas under Texas Law:
"Market value is the price which the property would bring when it is offered for sale by one
who desires, but is not obliged to sell, and is bought by one who is under no necessity of buying
it, taking into consideration all of the uses to which it is reasonable adaptable and for which
it either is or in all reasonable probability will become available within the reasonable future."
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 7 Appraisal Issues
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate; subject only to the four
-- powers of governmenP (eminent domain, escheat, police power, and taxation).
-- Cash Equivalent
A price expressed in terms of cash, as distinguished from a price which is expressed totally or
partly in terms of the face amount of notes or other securities that cannot be sold at their face
amounts.2
EXPOSURE TIME
Sales of retail-zoned land has been relatively active in the Coppell area over the last two years,
following the economic slowdown of the late 1980's and early 1990's. There have been few
commercial building sales of similar small size as the subject property, and none which were
found which have highly similar characteristics to the subject. It is the appraisers' opinion that
-- if the subject property were to be offered for sale, at an appropriate price, the property could
most likely be sold within one year's time.
XThe D&tionary of Real Estate Appraisal, Second Edition (Chicago, Illinois: American Institute of Real
Estate Appraisers, 1989), p. 120.
2The Dictionary of Real Estate Appraisal, Second Edition (Chicago, Illinois: American Institute of Real
Estate Appraisers, 1989), p. 45.
96.027 Price. Denton Inc.
Harrington - Sandy Lake Rd. 8 Limiting Conditions and Assumptions
__ LIMITING CONDITIONS AND ASSUMPTIONS
Unless otherwise stated, the appraisal report is subject to the following assumptions and
limiting conditions:
1. It is assumed that the title of this property is good and marketable. No title search has
been made, nor have we attempted to determine the ownership of the property from
data other than that furnished to us. The value estimate is given without regard to any
question of title, boundaries, encumbrances or encroachments.
2. The legal description of the property which was furnished to us is assumed to be correct.
It has not been verified by legal counsel and should be so verified before being used in
a legal conveyance or document.
3. The valuation estimate reported herein is based on the definition of value, and where
appropriate, explanations of the definition of value as stated within the body of this
report consider the property to be free and clear of all liens, encumbrances, and/or other
assessments or whatsoever might affect the fee simple title, unless otherwise stated,
defined and considered herein.
_ 4. Any maps, plats or other illustrations produced and included in this report are intended
only for the purpose of showing spatial relationships. They are not measured surveys
nor measured maps, and we are not responsible for cartographic or surveying errors.
Dimensions and areas of the subject property and of the comparables were obtained by
various means and are not guaranteed to be exact.
5. Information provided by informed local sources, such as governmental agencies, financial
_. institutions, real estate dealers, buyers and/or sellers, and members of the client
organization was weighed in the light in which it was supplied, and checked by secondary
means where possible; however, no responsibility is assumed for possible misinformation,
inaccuracies or errors regarding such information.
~ 6. The value estimate is made under the assumption that there will be no international or
domestic political, economic or military actions which would affect general real estate
values.
-- 96.027 Price,Denton Inc.
Harrington - Sandy Lake Rd. 9 Limiting Conditions and Assumptions
7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil,
or structures which would affect the subject property's value. No responsibility is
assumed for such conditions or for engineering or other reports which may be required
-- to discover them.
-- Unless otherwise stated in this report, the existence of hazardous material, which may
or may not be present on the property, was not observed by the appraiser. The
appraiser has no knowledge of the existence of such materials on or in the property.
The appraiser, however, is not qualified to detect such substances. 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. No responsibility is assumed for any such conditions, or for
any expertise or engineering knowledge required to discover them. The client is urged
to retain an expert in this field, if desired.
8. The allocation of value between land and improvements if any, is based upon the highest
~ and best use of the land as herein stated, and cannot be applied to any other use.
_ 9. Opinions of value contained herein are estimates. There is no guarantee, written or
implied, that the subject property will actually sell for such amounts.
10. The appraiser(s) will not be required to give testimony or attendance in court or before
other legal authority by reason of this appraisal without prior agreement and
-- arrangement between the client and the appraiser(s).
11. Real estate values are influenced by a large number of external factors. The data
contained herein comprise all the pertinent facts considered necessm3~ to support the
value estimate. We have not knowingly withheld any pertinent facts; however, we do not
guarantee that we have knowledge of all factors which might influence the value of the
subject property.
12. Due to rapid changes in the external factors which influence real estate values, the value
estimate is considered reliable only as of the stated date of valuation.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 10 Limiting Conditions and Assamptions
13. Possession of this report does not carry with it the right of publication. This appraisal
was prepared by Price. Denton Inc. and consists of trade secrets and commercial or
financial information which is privileged, confidential and exempted from disclosure
under 5 U.S.C. 552(b)(4). Please notify Kathleen P. Wilke, MAI of any request for
reproduction of all or any part of this appraisal.
14. The Americans with Disabilities Act (ADA) became effective January 26, 1992.
Price-Denton Inc. has not made a specific compliance survey and analysis of this
property to determine whether or not it is in conformity with the various detailed
requirements of the ADA. It is possible that a compliance survey of the property
together with a detailed analysis of the requirements of the ADA could reveal that the
property is not in compliance with one or more of the requirements of the act. If so,
this fact could have a negative effect upon the value of the property. Since
Price. Denton Inc. has no direct evidence relating to this issue, we did not consider
possible noncompliance with the requirements of ADA in estimating the value of the
property.
- Price.Denton Inc.
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UNIVERSITY
-- PARK
GRAND PRAIRIE , : _~/~o~_ ~
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METROPOLITAN LOCATION MAP
Harrington - Sandy Lake Rd. 11 Dallas/Fort Worth Area Overview
__ DALLAS/FORT WORTH AREA OVERVIEW
Population
-- The Dallas/Fort Worth Consolidated Metropolitan Statistical Area (CMSA) encompasses nine
contiguous counties in the North Central Texas area: Dallas, Collin, Denton, Rockwall,
-- Kaufman, Ellis, Tarrant, Johnson and Parker Counties. The Dallas/Fort Worth CMSA, Dallas
County and Tarrant County estimated population statistics are charted below.
Dallas/For~ Worth CMSA*
Population 1,715,905 2,352,318 2,933,293 3,886,304 4,182,500
Percent Increased 37.1%. 24.7% 32.5% 7.62%
Annual Compound Increase 3.20% 2.23% 2.85% 1.49%
Dallas County*
~ Population 951,527 1,327,695 1,556,385 1~852,810 1,921,400
Percent Increased 39.5%, 17.2% 19.4% 3.70%
~ Annual Compound 3.39% 1.60% 1.76% 0.77%,
hlcrease
Tan,'aut County*
~ Population 538,495 715,587 861,837 1,170,103 1,250,350
Peroent Increased 32.9%. 20.4% 34.3% 6.86%
~ Annual Compound 2.88% 1.88% 3.11% 1.41%
Increase
*SOURCE: North Central Texas Council of Governments-April 1995; U.S. Census
Dallas County makes up 46% of the population in the Dallas/Fort Worth CMSA while Tarrant
County comprises 30% of the population. The remaining seven counties in the CMSA make
-- up the balance of the population (24%).
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 12 Dallas/Fort Worth Area Overview
_ During the early years of the decade, growth in the Dallas/Fort Worth area was somewhat slow
due to the nationwide recession. However, as economic recoveO' occurred, population growth
in the Dallas/Fort Worth CMSA accelerated. Despite the addition of an estimated 83,000 new
residents from January 1994 to January 1995, Dallas County's percentage of the CMSA
population has declined 1.7% since 1990 while Tarrant County's percentage of the overall
- population remains steady at about 30%. This change is attributed to the fast-growing northern
suburban areas of Plano, Carrollton, Lewisville and Flower Mound, which are located in Collin
_ and Denton Counties. In Tarrant County, the growth rate of several of the suburban areas
such as Arlington, Colleyville, Grapevine and Southlake outpaced that of the City of Fort
Worth, but allowed Tarrant County to maintain its percentage of population relative to the
-- region as a whole. Of the counties within the CMSA, Collin County has seen the largest
compound annual growth rate (5.76%), followed by Rockwall County (3.50%) and Denton
-- County (3.21%) during the 1990s.
The area's expanding regional job base has spurred population growth substantially over the
last five years, according to estimates from the North Central Texas Council of Governments.
This reversed the trend of out-migration witnessed in the late 1980's and early 1990's. Since
-- the 1990 census, the region has grown by 302,000 people, with 57% of this growth occurring in
the last two years. By 2010, the Dallas area is projected to be fourth in U.S. population. Four
-- counties -- Collin, Dallas, Denton, and Tarrant Counties -- represent 90% of total regional
growth in the last five years. The largest population gain was in Collin County, with 80,000 new
residents, over 30% of that growth occurring in the last year alone. Nine cities in the region
have grown by more than 30% in the last five years: Frisco (123%), Flower Mound (84%),
Southlake (80%), Highland Village (42%), Coppell (41%), Allen (37%), Rowlett (37%), Plano
-- (32%) and Keller (30%). Plano is the only city in this group with over 35,000 residents, but
the data indicate the strength of the population growth in the Highway 121 corridor.
Employment
The Dallas area is presently considered one of the nation's leading areas for heavy and light
manufacturing, distribution, transportation, electronics, finance, real estate, insurance, defense
-- contracting and energy resources. Dallas/Fort Worth serves as corporate headquarters for many
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 13 Dallas/Fort Worth Area Overview
_ of the country's largest companies. Based on a survey by Forbes Magazine, Dallas/Fort Worth
is home to 17 of the nations 500 largest privately held companies, ranking it third in the nation
after Chicago and New York. According to the 1995 Book of Lists, published by the Dallas
Business Journal, the top publicly-held revenue producers were:
1. Exxon Corporation $111,211 Oil exploration, refining, and marketing
2. JC Penney Company $ 19,578 Retail
3. AMR Corporation $ 15,816 Commercial airline, data management
~ 4. Columbia/HCA $ 10,252 Hospitals
Healthcare Corporation
5. EDS Corporation $ 8,561 Computer, commuflications, and
~ information technology
-- The top five corporate employers in the Dallas/Fort Worth area, according to the 1995 Book
of Lists were:
1. AMR Cor~ration 29,791 Fort Worth Commercial Airlines
2. Texas Instruments 22,500 Dallas Electronics Manufacturer
3. ~ckheed Fort Worth
Corp. (a~uired General 17.000 Calabasas, CA Aerospace Mamtfacturer
Dynamics)
~ 4. EDS Cor~ration 10,500 Dallas Information Technolo~
5. Kroger 9,0~1 Cincinnati. OH Retail (Food and Drug)
Average annual job growth in the Dallas/Fort Worth CMSA was 107,000 new jobs per year
~ be~een 1983 and 1985, but in 1986 the area saw a decline in jobs, losing 10,400 jobs. New job
growth has recovered from 1987 to the present after faltering in 1991 and 1992 as a result of
_ the national recession. %e Bureau of Labor Statistics indicated a solid gain of 92,500 jobs
were added in 1994 to the D/FW area, the second largest gain in the country.
-- 96.027 Price,Dent0n Inc,
Harrington - Sandy Lake Rd. 14 Dallas/Fort Worth Area Overview
A key cause of the increase in job growth between 1987 and 1990 was the trend in corporate
relocations to the area such as JC Penney, GTE and Exxon, attracted by favorable costs of
doing business. The metropolitan Dallas area ranks ninth in the world and sixth in the U.S.
as a headquarters site for multi-national corporations. While the area continues to attract
corporate relocations such as Transamerica Insurance Group, much of the job growth has come
- from the expansion of small businesses.
According to the Third Quarter 1993 American Chamber of Commerce Research Cost of Living
Index, Dallas has a favorable cost of living in comparison to other major cities in the nation.
On a scale in which 100 is the median, living costs in Dallas were at 104.4. This index is based
on cost of housing, groceries, transportation, utilities, health care, and goods and services. It
does not include income tax or property tax, nor does it include insurance costs. When the lack
of a state income tax is considered, the Dallas rating of 104.4 appears very favorable. Fol'
comparison, the following chart shows the overall cost of living index and the housing index,
as well as typical home prices for new, 1,800 square foot, three-bedroom, two-bath suburban
homes in Dallas and eight other major cities.
New York* 214.2 373.7 $415,000
Los Angeles 126.7 181.4 $214,590
Seattle 116.2 145.5 $118,594
Chicago 114.0 154.3 $171,572
Clevela nd 109.1 116.8 $131,764
De nye r 105.9 109.5 $122.255
Atlanta 98.4 97.7 $105,400
Houston 96.7 91.0 $ 98,097
* 1992 Figures
Dallas/Fort Worth benefits from its key location near the exact east-west center of the country
and from being within the Central time zone. Highway access to the area is excellent due to
the convergence of interstate highways from all directions. Distributors can reach more than
32 million Americans by truck within 24 hours; shipments can be anywhere in the continental
United States within 48 hours.
-- 96.027 Price.Denton Inc,
Harrington - Sandy Lake Rd. 15 Dallas/Fort Worth Area Overview
__ Possibly the greatest asset for the area is the enormous capacity of D/FW International Airport.
The 1990 LandauerReal Estate Market Forecast stated that the airport "may rank as the finest
economic development project of the past 25 years in the United States." Located between
Dallas and Fort Worth and completed in the 1970s, D/FW International Airport is no more
than three and one-half hours flight time from any major U.S. city. Through its 17,500-acre
-- facility, D/FW offers 2,400 flights daily, including service to 60 foreign destinations. In 1993,
travelers departing, arriving, or transferring at the airport totaled over 50 million and the
_ airport was ranked the second busiest in the world. The FAA projects that D/FW will surpass
top-ranked Chicago O'Hare International Airport in 1995. Businesses at the airport employ
approximately 37,000 people directly and another 35,000 to 40,000 people indirectly and it has
- an annual economic impact on the area of $6.5 billion. An ambitious $3.5 billion development
plan that could double the airport's capacity over the next 20 years was approved and
construction on the east runway began in late 1993 and is scheduled for completion by mid-
1997.
The Dallas/Fort Worth area is considered to be a very "pro-business" area, encouraging new
businesses to come to the area. Texas is a "right to work" state with relatively low unionization
-- within the work force. The area boasts a strong work ethic and well-educated work force.
There is no state property tax, no state personal income tax, no city income tax and no unitary
-- tax. Area municipal governments offer various incentives to encourage new businesses in the
area, ranging from tax incentives to free economic planning.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 16 Dallas/Fort Worth Area Overview
Real Estate Markets
Office Market Overview
1985 96,876,706 75.97% $18.19 22,505,444 36.44%
1986 110,925,525 69.06% $18.63 7,754,848 53.77%
1987 115,102,775 68.82% $17.05 1,907,259 45.26%
1988 115,794,410 70.29% $14.17 772,000 73.70%
1989 114,859,324 73.06% $13.93 415,000 75.42%
1990 113,288,229 74.21% $ 14.39 2,690,00(} 100%
1991 112,916,928 74.00% $ 13.90 4,300,(100 100%
1992 111,690,057 74.23% $ 13.81 1,522,000 ! 00%
1993 110,761,823 75.48% $ 13.64 N/A
1994 112,615,000 79% $14.02 N/A
1995 111,889,900 82% $15.17 N/A
* Multi-telmnt
Apartmen! Market Overview
1985 89% $0.57 $442 85% $0.50 $390 88% $(I.55 $427
1986 85% $0.55 $430 84% $0.48 $379 85% $(}.53 $416
1987 84% $0.52 $412 S4% $0.47 $368 84% $0.51 $399
1988 86% $0.51 $409 88% $0.46 $363 87% $0.51 $399
1989 90% $0.53 $425 S9% $0.48 $378 90% $0.52 $412
1990 92% $0.58 $463 90% $0.51 $4(}4 91% $0.56 $446
1991 90% $0.58 $465 89% $0.52 $416 90% $0.57 $451
1992 91% $0.60 $475 91% $0.54 $429 91% $0.58 $463
1993 92% $0.62 $495 92% $0.55 $442 92% $0.6(} $481
1994 93% $0.64 $517 92% $0.57 $461 93% $0.63 $504
1995 94% $0.68 $546 94% $0.60 $484 94% $0.66 $529
Price,Denton Inc.
Harrington - Sandy Lake Rd. 17 Dallas/Fort Worth Area Overview
_ Single-Family Market
1994 was a strong year for sales of pre-owned homes, but the most recent data suggest that the
-- Metroplex reached its peak in 1994 in terms of construction and absorption of new homes.
Dallas area absorption fell 16% from the second quarter 1994 to the same quarter in 1995. A
- total of 13,294 homes were sold in the previous 12 months, down 7% from a year earlier.
Absorption also plummeted 15% in Fort Worth for Second Quarter 1995. The Dallas/Fort
Worth area has a 6.5 months' supply of new homes, which is considered to be in relative
balance. The single-family lot inventory is at 3.7 years' supply, and although it is considered
over-supplied, it is at its lowest level since the late 1970's.
Retail Market Overview
~ES~ES~5~?~J~j~E~?~2 ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::
1985 44,915,8~ 87% $12.88 19,238,5~ 87% $10.57 54,154,2~1 87% $12.17
1986 50,528,300 77% $13.16 21.461.0(g} 78% $10.60 71.989.3~ 7S% $12.42
1987 54,248,900 77% $12.79 22.889.6(g} 76% $10.61 77,138,5(~} 77% $12.17
1988 56,146,100 75% $12.65 24.759.0ff} 73% $10.91 80.905,200 75% $12.13
1989 57,013,700 75% $11.84 25.365.7(g~ 74% $10.02 82.379A00 75% 511.29
1990 57,388,200 76% $11.70 25,369,3(B 76% $ 9.76 82.757,50(I 76% $11.11
1991 73,799,5~ 80% $11.39 33~658.3~ 79% $ 9.80 107.457,8(}0 80% $10.90
1992 74,681,8~ 82% $11.41 33,787,2ff~ 81% $10.9S 108,469,000 S2% $10.01
1993 74,984,300 84% $11.52 34,658.400 82% $10.02 109,642,700 83% $11.05
1994 77,086,400 86% $10.96 35.S 19~000 S6% $9.4S 112.905.400 86% $10.49
1995 78,643,400 87% $11.44 36~832,100 86% $10.~ 115,475,500 87% $11.05
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 18 Dallas/Fort Worth Area Overview
Industrial Market Overview
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::5:.~i?~::!:~!?~?.!:;~!!~!:.~i~:!:~:~:~:~:~:~:~:~:~:~:~:~:~:~:~::i ::::::::::::::::::::::::::::::
1989 84% $3.30 87% $3.06 85% $3.23
1990 87% $3.19 83% $3.07 86% $3.16
1991 88% $3.17 84% $2.90 87% $3.10
1992 89% $3.12 87% $2.83 89% $3.04
1993 91% $3.13 88% S2.90 90% $3.06
1994 92% $3.16 94q~ S2.96 93% $3.09
1995 93% $3.27 96% $3.10 94% $3.22
1989 76% $6.37 81% $6.52 77% $6.40
1990 78% $6.36 81% $5.92 78% $6.28
1991 78% S6.29 82'7~ $5.93 79% $6.22
1992 82% S6.14 84% $5.57 82% $6.04
1993 83% $6.08 88% $5.55 84% $5.98
1994 87% $6.18 89% $5.7(I 87% $6.10
1995 89% $6.31 92% $6.07 90% $6.27
Summary
Population and employment growth in the Dallas/Fort Worth area continues. Population has
_ been increasing at an average rate of about 1.5% annually over the last five years. The most
rapidly growing submarkets are shifting north from Dallas.County to select cities in Collin and
Denton Counties. Dallas/Fort Worth's positive business climate, relatively low cost of living,
central location, and well-designed infrastructure have contributed to the robust pace of jobs
creation (second in the nation in 1994). Dallas/Fort Worth ranks third in the nation in the
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 19 Dallas/Fort Worth Area Overview
number of the country's 500 largest companies headquartered in the area. Although the
expansion of the job market is not expected to continue at such a brisk pace, steady population
growth and jobs creation is forecast for the near future, and the overall economic outlook is
-- propitious.
Aided by population growth and an expanding economy, rental rates and occupancies have
increased solidly in most market segments. Many market segments are reflecting increases in
values; Class A properties are typically reflecting improvement in values, while the values of lower
quality properties with ill-advised locations have even begun to improve. Land values have also
begun to show improvement in some markets and have stabilized in most other markets, after
dropping significantly in 1991 and 1992 in certain areas. New construction will be somewhat
cautious for most property types, with the exception of the multi-family market and warehouse
space. As a result, in the near term, general real estate values in the area should continue the
upward trend. The value of prime properties should increase more than the values of secondary
properties, which will rise more slowly.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 20 City Overview
_ COPPELL AREA ANALYSIS
The subject property is located along the south side of Sandy Lake Road in the City of Coppell,
Dallas County, Texas. The City of Coppell is located approximately 17 miles northwest of the
-- Dallas Central Business District.
_ The City of Coppell is located in the northwestern corner of Dallas County, The city comprises
14 square miles. It is surrounded by the cities of Lewisville to the north, Carrollton to the east,
Grapevine to the west and Irving to the south. Coppell primarily serves as a bedroom
community, which has experienced the majority of its growth over the past fifteen years.
-- Coppell is well-located in regard to employment centers and the Dallas/Fort Worth
International Airport. The Las Colinas development, located 5 miles to the south, is a planned
_ development containing almost 13,000,000 square feet of office space. Over the past several
years this development has continued to grow, with the relocation of the corporate headquarters
of Exxon Corporation and Transamerica Group Insurance to the Las Colinas Urban Center.
Located to the north is the 1,100 acre Vista Ridge planned development, originally developed
by Lomas and Nettleton. This development is designed to attract future office, industrial, retail,
-- and multi-family developments. Approximately 30% of this development is located within the
city limits of Coppell. The Vista Ridge Regional Mall, which opened in 1989, is adjacent to
this development. Abutting the city on the southwest side is the Dallas/Fort Worth
International Airport, the location of American Airlines Headquarters, which is the third largest
employer in the Metroplex.
Population Growth
Coppell has experienced its strongest growth period during the 1980's with an average annual
_ growth rate of 34% over this period. The following chart represents growth patterns for the
city.
- Price,Denton Inc.
Harrington - Sandy Lake Rd. 21 City Overview
Coppell Population Growth
Population 666 1,728 3,826 16,881 25,700 33,050
Average Annual Growth Rate N/A 15.95% 12.14% 34.12% 10.51% 5.72%
* City of Coppell - 12/95; North Texas Council of Governments
The 1990 census lists Coppell as the third-fastest-growing city (with population under 50,000)
in the nation. It is also in the top five Dallas area suburbs in percentage growth since 1990.
Future population annual growth rates are projected to decrease, with the average annual
growth rate expected to be far below historical averages. The city has developed a master plan
which will help control growth and limit the total population at approximately 45,000 people.
The population forecast for Coppell for the year 2020 as estimated by the Coppell Economic
Development Partnership is 42,500 persons, for an annual growth rate of 1.27% from 2000 to
2020.
Demographics
According to information from the Chamber of Commerce, the City of Coppell reflects a
median household income of $72,341 as of 1996. This is a 45% increase since 1993.
Coppell's population is comprised of 5,997 households indicating an average household size of
3.29, according to the 1990 census figures. The largest population group is adults 25 to 44 years
old (50.2%) followed by children under 18 years (31.1%). Household size and population
distribution indicates the majority of Coppell's residents are families with children still living
at home. Only 5% of Coppell's population is over 55 years old. Approximately 78% of
Coppell's residents attended college, 54% of the adults are college graduates and 11% hold
advanced degrees. Coupled with the household income estimates, this suggests that the
residents in Coppell are technical and managerial workers.
The median home value in Coppell is $128,696 currently; however, the average price for new
home construction (1995 building permits) was $225,000, indicating the affluence of new
residents to the area.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 22 City Overview
Employment
The following is a list of the major employers in Coppell. As stated previously, residents of
Coppell generally commute to employment centers as few employment opportunities actually
exist within the city limits.
North Texas Mail Processing Ceuter 1,690
Coppell I.S.D. 750
Minyards Corporate Office/Distribution Center 600
MJ Designs S00
Four Seasons, Inc. 200
Nutone, Inc. 157
Texas Stock Tab. Inc. 13(}
Home Interiors & Gifts 110
Craftmade International Iuc. 100
Gulf Bearing Inc. 100
Loue Star Plywood 100
Coppell was chosen in 1994 as the location for the North Texas Mail Center, a 600,000 square
foot bulk mail distribution center. The center now employs approximately 1,690 people.
Approximately one third of Coppell's land area is zoned for business/industrial use. The City
is attempting to attract industry and has a tax abatement program in place and a Freeport
exemption.
-- Education ~i ~> -\v..~~
-- The City of Coppell is served by the Coppell Independent School District. The Coppell ISD
operates out of nine campuses, including a 50 acre high school. Coppell schools provide a
continuous education program from kindergarten through senior high. The Coppell ISD serves
6,330 students with an annual expenditure of $4,733 per pupil.
Higher education is available at Northlake Community College located in Las Colinas, and the
University of North Texas in Denton.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 23 City Overview
City Services
Coppell operates under a Council/Mayor type of government, consisting of 8 councilmen
including the mayor. The community's police department employs 33 officers. The city fire
department operates with 40 paid firemen. The city has a pro-business attitude and is working
to attract industrial development. In addition to the tax abatements previously mentioned, the
city has a flexible permitting process to accommodate developers.
Utility Services
-- Utilities serving the community are provided by the four following authorities.
Water - City of Dallas
_ Gas - Lone Star Gas
Sewer - Trinity River Authority
Electricity - TU Electric
Access
The area is easily accessed from three of the main highway systems in the area. Interstate 635
to the south of the subject provides direct access to the airport and the northern suburbs of
Dallas. Interstate 35 is located approximately 4 miles east of the area, and provides direct
access to the Dallas Central Business District to the south and the City of Denton to the north.
State Highway 121 diagonally crosses the northwest corner of Coppell, connecting the City of
Lewisville from the north to D/FW Airport to the south.
The primary arteries through the City of Coppell are Belt Line Road to the south, MacArthur
_ Boulevard to the east, Sandy Lake Road to the north and Denton Tap Road through central
Coppell. MacArthur Boulevard extends from Round Grove Road in Lewisville, providing direct
access to Las Colinas to the south. MacArthur Boulevard terminates in Grand Prairie at IH-30.
The road extends northward to the Vista Ridge Mall area. Denton Tap Road is a six-lane,
median-divided roadway from Belt Line Road to Sandy Lake Road.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 24 City Overview
Land Uses
Land uses are predominantly residential with supporting commercial and retail development
located primarily along major thoroughfares and intersections in the north and eastern portions
of the city.
Industrial sites are located primarily in the southern and western portions of the city. These
locations are closest to the interstate highway system and the airport.
Summary
Coppell is located in the far northwest sector of the Dallas County. The potential for future
-- growth within the city is strong as road improvements and proximity to employment will
continue to enhance the location. A large percentage of the future growth will be in the form
of single-family housing with supporting commercial development along the primary roadways.
Demographics of the area reflect an increasing population, consisting of mid- to upper-income
families. The city is also actively attempting to recruit industrial development in the area and
-- employment growth in this sector is gaining momentum. With improving market conditions,
the city's policies and Coppell's location, continued growth in the population and employment
-- base can be expected.
- Price.Denton Inc.
Neighborhood Map
inch = 0.80 mile~
I ' I
~ 4~
Scale in Feet
Harrington - Sandy Lake Rd. 25 Neighborhood Analysis
NEIGHBORHOOD ANALYSIS
According to The Appraisal of Real Estate, Tenth Edition, published by the American Institute
of Real Estate Appraisers, a neighborhood is defined as a group of complementary land uses.
The relative uniformity of a neighborhood may result from similarities in 1) physical features,
and physical barriers created by either the terrain or the location of major transportation
arteries; 2) population characteristics; or 3) factors affecting land use and income-producing
potential. Neighborhood Analysis focuses on the four forces that influence value: social,
economic, governmental, and environmental considerations.3
The subject's neighborhood is generally considered to be the Coppell city limits to the north
and south, Denton Tap Road to the west, and 1-35E (Stemmons Freeway) to the east. Much
of the eastern part of the defined neighborhood lies within the floodplain of the Trinity River.
The western part of the neighborhood is primarily single-family subdivisions, with a variety of
commercial and retail uses at the major intersections and along the primary thoroughfares.
'- Access to and from the neighborhood is good. 1-35E is a major north-south freeway through
the greater Dallas area. LBJ Freeway, the area's primary freeway loop is located just south of
-- the neighborhood. Additionally, SH-121, which is being widened through the adjacent city of
Lewisville is located just to the northwest of the neighborhood. Primary east-west streets
through the neighborhood include Belt Line Road and Sandy Lake Road, and each provides
access to 1-35E. The primary north-south streets are MacArthur Boulevard and Denton Tap
Road and these provided good access from the subject neighborhood into and through adjacent
areas.
-- Primary employers for area residents are generally located in industrial parks in the western
part of Coppell, to the east in Carrollton and Farmers Branch, and to the south in Irving. The
high-quality office parks of the Las Colinas area of Irving also is a significant source of
employment for residents. There appears to be an adequate amount of retail sel~,ices in the
area for residents, such as groceries, pharmacies, dry cleaners, restaurants, and typical
-- neighborhood businesses. Demand for additional retail space can be expected to grow along
with the population in the area. The nearest regional mall is Vista Ridge in Lewisville,
3TheAppraisal of Real Estate, Tenth Edition (Chicago: The American Institute of Real Estate Appraisers,
1987), pp. 171 and 172.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 26 Neighborhood Analysis
_ approximately two miles north of the subject neighborhood. Because the primary thoroughfares
through the city of Coppell primarily serve area residents, rather than providing major cross-
regional access, retail uses within the city can be expected to be small in scale, targeted to
-- immediate area residents.
-- There remains a significant amount of available development sites of various sizes fol'
commercial and retail uses throughout the city. The bulk of current commercial development
is occurring along Denton Tap Road, and in the vicinity of MacArthur Boulevard and Belt Line
Road. Based on information provided by the City of Coppell, there are 815 acres of developed
non-residential land and 2,645 acres of undeveloped non-residential land. Much of this land
-- is zoned for either industrial use in the southwest quadrant of the city, or single-family zoning
in the northwest quadrant. The North Central Texas Council of Governments Land Use
-- Inventory, published Fall, 1994, indicates the city overall has 118 acres of developed retail land,
with 61 of those acres located in the subject's census tract, bounded by Sandy Lake Road, the
Trinity River, Belt Line Road, and Denton Tap Road. Because it is unlikely that there are any
suitable locations within the city of Coppell to serve as a regional destination retail
development, continued retail development can be expected to be designed to serve residents
-- of the immediate area for routine neighborhood services. As a result, total demand and
locations for retail development would be limited by population growth and residential
_ development and commuting patterns. Upon expansion, traffic on Sandy Lake Road may grow
as an alternative commuter route to 1-35E, but Belt Line Road, LBJ Freeway, and ultimately
SH-121 will be more likely commercial corridors for com~nuter traffic, as well as having a
greater residential population base in the immediate vicinity.
The subject neighborhood is generally considered to be in a growth phase. Residential demand
remains relatively strong and that has brought associated demand for a variety of retail and
commercial developments to serve area residents. Overall, the near-term outlook for the
neighborhood is positive, as the regional economy continues to expand, providing new
employment opportunities, demand for new residential units, and demand for commercial and
retail services for the growing population. Near-term retail development is most likely to occur
in areas with an adequate residential population base and higher street traffic, which is
generally found in the southern and western parts of the defined neighborhood.
96.027 Price. Denton Inc.
Harrington - Sandy Lake Rd. 27 Site Analysis
SITE ANALYSIS
Location
-- The site is located on the south side of Sandy Lake Road, east of Riverchase Drive, and
adjacent to the Trinity River and the Coppell/Dallas city limits. The street address of the
_ primary improvements is 1601 Sandy Lake Road, Coppell, Texas.
Land Area
According to information provided by the client, the tract contains approximately 64,543 square
-- feet, or 1.4817 acres of land. No site survey was provided and the City reports that the site has
not been platted.
Shape
-- The parcel is generally rectangular in shape.
-- Frontage and Depth
The tract has 140 feet of frontage along Sandy Lake Road. The site has a calculated average
depth of approximately 461 feet, indicating a frontage-to-depth ratio of approximately 0.3:1.
-- Access
-- Access to the property is considered to be average. The site is generally at street grade and
there are no curbs along this section of Sandy Lake Road. Sandy Lake Road is a two-lane
undivided thoroughfare which traverses the neighborhood in an east/west direction and provides
access to the city of Coppell from 1-35E to the east through the developed areas of Coppell,
before splitting into two different streets approximately 1/2 mile east of SH-121. The most
- recent traffic counts from the City of Coppell in the vicinity of the subject property indicate 24-
hour traffic volume as of July, 1994 of 10,682 vehicles.
-- 96.027 Price,Denton Inc,
ZONE" oav£
AE
~'IZONE"
HOLLYWOOD /
ZONE X
ZONE
¢ ZONE X ZONE X ~RROLLTON
DAM
" NEX
ZONE X
PEEBLE
O STON N E X
ZONE X
Harrington - Sandy Lake Rd. 28 Site Analysis
_ Topography, Drainage, and Soils
The topography of the tract is relatively level. The site is generally at street grade, and
drainage appears to be adequate.
-- No soil report specifically concerning the subject site was available for the appraisers' review.
According to the Soil Survey of Dallas County, Texas published by the U. S. Department of
_ Agriculture's Soil Conservation Service in cooperation with the Texas Agricultural Experiment
Station in February 1980, soils that make-up the area in proximity to the subject site are
classified as Frio silty clay, which tends to be located in flood prone areas. These soils are
-- described as typically low slope and well-drained. This soil is further described as having a low
potential for urban uses because of low strength and corrosivity of the soil.
Floodplain
According to the Flood Insurance Rate Map for the City of Dallas, Texas, Community Panel
Number 480170 0010E, dated April 15, 1994, published by the Federal Emergency Management
-- Agency (FEMA), the subject site is not located within a 100 year flood plain. It is, however,
located adjacent to the floodplain in all directions, and to the Trinity River Floodway to the
- east. According to the client, the entire subject site is located outside the floodplain.
Utilities
The tract is served by electricity and telephone service, but does not have water or sanitary/
-- sewer directly available. The nearest location is approximately 2,000 feet to the east at
Riverchase Drive. Extension of service is reportedly the responsibility of the developer and will
-- reportedly not be installed by the City of Coppell. The elevation of the land appears to be
slightly uphill to this location, which would entail a lift station for a sewer line to tie in at this
location. Based on discussions with the city engineering department, a possibility which might
preclude the need for a lift station would be if the subject site could access the sanitary sewer
line in the residential subdivision in preliminary stages of development to the southwest.
-- However, it was reported that the residential sewer lines might be smaller than would be
required for a retail use of the subject tract.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 29 Site Analysis
-- Based on information in the Marshall Valuation Service, the cost of installing water lines and
sewer lines is approximately $20 per linear feet for each line, or a total of $40 per linear foot.
At approximately 2,000 linear feet, this would equate to approximately $80,000. There has been
no reported engineering study to determine a specific cost to provide these utilities to the
subject site, and the appraisers are not qualified to more accurately estimate the cost.
Public Services
Public services available to the site include fire and police provided by the City of Coppell.
-- Street Improvements
Sandy Lake Road is a two-lane undivided street which traverses Coppell in a generally east-west
direction, connecting 1-35E with the western portions of Coppell. Sandy Lake Road is planned
for expansion to a four-lane divided thoroughfare with medians. At the present time, the
subject site is generally at street grade; however, with the expansion of Sandy Lake Road and
reconstruction of the Trinity River bridge, the elevation of the street will be raised
approximately five feet at the subject property's location. Additionally, the median for the
bridge will extend from the east, past the subject property, thus eliminating direct access to the
subject site from the east.
Site Improvements
The subject site is improved with a commercial building, and two outbuildings. The site
-- improvements will be analyzed in the following section.
-- Nuisances and Hazards
There appear to be no nuisances or hazards that would detract from the desirability or utility
of the site.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 30 Site Analysis
Easements and Private Restrictions
According to information provided by the client, there are no adverse easements encumbering
-- the subject property and none were observed on inspection of the property. The northern
portion of the site lies within an undedicated right;of-way for Sandy Lake Road. A title policy
was not provided which would indicate the presence of easements or deed restrictions which
might affect the subject property.
Zoning and Public Restrictions
-- The subject site is zoned R - Retail by the City of Coppell. Reference is made to the Zoning
section of this report for a comprehensive discussion of this topic.
Adjacent Uses
Land immediately adjacent to the subject is unimproved at the present time. A city park is
located to the east across the Trinity River and a residential subdivision is located
-- approximately 1,000 feet southwest of the subject.
-- Conclusion
In conclusion, the subject tract is a relatively level generally rectangular-shaped tract, with a
significant amount of depth relative to its street frontage. The street frontage on Sandy Lake
Road allows for relatively good access. At present, due to the limited development in the
- immediate area, this street is used as a connecting route between 1-35E and the primary
residential areas of Coppell. The lack of utilities service to the site and likelihood of an
-- extended period before adjacent sites are developed and utilities se~ice is extended significantly
limits the current utility of the site.
- Price.Denton Inc.
Bedroom
Bath Bath Sales Floor Kitchen 32
Bedroom
FLOOR PLAN SKETCH
Not to scale
I I i I I I I I ! I I I I I I I i I I
Harrington - Sandy Lake Rd. 31 Improvements Analysis
_ IMPROVEMENTS ANALYSIS
The subject improvements consist of a commercial building containing approximately 2,048
square feet, a small residential structure of approximately 434 square feet, and a storage shed
-- of approximately 315 square feet. The parking lot is an unpaved gravel lot.
_ Construction plans for the project were unavailable. Following is a brief description of the
basic construction components of the improvements based on the appraisers' visual inspection
of the property.
Description of Basic Construction Components
The primary structure on the subject site consists of a residential-style, one-story structure used
_ for both residence and business uses, containing approximately 2,048 square feet, built in 1975.
The interior design includes kitchen and dining area on the west side of the building, with
bedrooms and bathrooms on the east side. The business use is conducted in the center of the
structure. The building foundation consists of a concrete slab with brick veneer exterior walls.
The roof is composition shingles and fi'aming is believed to be wood. Floor coverings in the
-- kitchen and business areas are vinyl floor tile, with carpeting in the residential living areas. The
interior walls and restrooms are typical of residential construction with painted sheetrock walls.
_ The building is served by central heat and air-conditioning. Electrical materials, components,
and workmanship are assumed to meet the building code requirements of the National Electric
Code, the National Board of Fire Unde~vriters and all local codes and requirements. Parking
is on an open gravel lot.
-- The interior design and layout of the improvements has the sales floor in the center, with the
living areas on the east and west sides of the building. This is shown on the sketch on the
_ facing page. The center section of the building, containing approximately 1,024 square feet, is
an open area with a sales counter, a few sales racks and coolers, used for the sale of fishing
supplies and bait. This large room is flanked by two living areas--two bedrooms with baths on
-- the east side and a living/kitchen/dining area on the west. This layout means that the two uses
of the building - retail and residential, are physically integrated with one another.
96.027 Price, Denton Inc.
Harrington - Sandy Lake Rd. 32 Improvements Analysis
Site improvements include a storage shed which totals approximately 315 square feet and a
residential structure of approximately 434 square feet. There are also two butane tanks and
a mobile home situated on the site. Water to the property is provided by an on-site well and
-- sanitary sewer is provided by a septic system. We were not permitted interior access to the
small residential structure or the mobile home.
Functional Utility
The design of the primary improvements - traditional residential-style architecture with
residential and retail uses combined, is rarely found in the Dallas area, as the suburban areas
-- which have grown rapidly have replaced such structures (which may be common in rural areas)
with more modern designs. Properties such as the subject are considered to have an extremely
-- limited market, with little demand for this combination of uses in such a design. As a result,
it is our opinion that the market would anticipate using the entire structure for commercial
uses; either as a retail store or as a business office. Retail users desire a maximum of sales
floor space, with some requirements for storage and administrative areas. The existing design
would allow use of the bedrooms as private offices, but only 50% sales floor area is considered
-- inadequate. Overall, the functional utility of the primary improvements is considered to be
reduced because of the interior design, which fails to maximize the floor area for commercial
uses.
Condition of Improvements
Based on our inspection of the property and conversations with the owner, the property does
- not suffer from major deferred maintenance.
_ The roof is nearing the end of its useful life. The mechanical systems appeared adequate;
however, the appraisers are not qualified to critically inspect mechanical components of the
improvements, and no representations are made herein. All mechanical components are
assumed to be in operational condition and status standard for properties of this type.
Condition of heating, cooling, ventilating, electrical and plumbing equipment are considered
-- to be commensurate with the condition of the balance of the improvements unless otherwise
stated. No judgment is made as to adequacy of insulation, type of insulation or energy
_ efficiency of the improvements or equipment. It is not possible to personally observe conditions
beneath the soil or hidden or unapparent structural or other components. No structural
problems were observed during our inspection.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 33 hnprovelnents Analysis
If subsequent studies identify significant roofing or mechanical problems, or structural problems
caused by shifting soils, the conclusion contained in this report may require review and
adjustment.
Estimate of Building Life and Effective Age
The applicable terms are defined as follows:
Physical Life: The total period a building lasts or is expected to last as opposed to its economic
life)
Economic Life: The period over which improvements to real property contribute to property
_ value.5
Effective Age: The age indicated by the condition and utility of a structure.6
Remaining Economic Life: The estimated period during which improvements will continue to
-- contribute to property value.7
Remaining Physical Life: The physical life projected as of the valuation date.s
Effective age (and subsequently the remaining life) is influenced by both the quality of
construction and the wear the building has exhibited. Economic life is influenced not only by
physical factors, but also by the functional utility of the structure and factors external to the
-- property.
4The Dictionary of Real Estate Appraisal, Second Edition(Chicago: American Institute of Real Estate
Appraisers, 1989), p. 226.
5The Dictionary of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p. 100.
6The Dictionary of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p. 101.
7The Dictionary of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p.252.
SKinnard, William N. Jr., Income Property Valuation (Lexington, Mass: Heath Lexington Books, 1971) p.
202.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 34 Improvements Analysis
The primary improvements were reportedly constructed in 1975 and are in average condition.
Overall, the effective age of the property is considered to be 21 years. According to the
Marshall Valuation Service, the typical life expectancy of properties similar to the subject is 50
years. Therefore, the improvements have an estimated physical life of 50 years and an
estimated effective age of 21 years indicating a remaining physical life of 29 years.
The other site improvements include the storage shed, small residential structure, and the
mobile home. The storage shed and residential structure appear to be in fair condition. The
mobile home on the site is taxed as, and is considered, personal property and was not included
in the valuation process.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 35 Ad Valorem Taxes
AD VALOREM TAXES
The property is subject to taxation by the City of Coppell, the Carrollton-Farmers Branch
Independent School District, Dallas County, the Community College District, and the Hospital
-- District. The Dallas Central Appraisal District has assessing responsibility for all taxing
authorities in the county. In Texas, real property is required by law to be assessed at 100% of
estimated market value.
The following table summarizes the 1995 assessed value for the subject on a component basis
-- based on DCAD records. The size of the land and buildings in the tax records differs
somewhat from that indicated from other sources. The total assessed value equates to $40.06
-- per square foot of gross building area of the main structure. The mobile home is personal
property and not included in the assessment.
Land 36,154 $ 8,300
Improvements 1,432 44.460
$52,760
Land 21,780 $ 5.000
hnprove merits 1,024 24.280
$29.280
Total $82,040
The following chart gives the taxing authority, assessed value, tax rate per $100 valuation, and
the taxes for the subject property for 1995. Tax rates for 1996 will not be officially set until
October, 1996; however, little change is anticipated overall in tax rates.
City of Coppell $82,040 $0.66950 $ 549
Carrollton-Farmers Branch I.S.D. $82.040 $1.43190 $1,175
Dallas County $82,040 $0.47415 S 389
Total Ad Valorem Taxes $82,040 $2.57555 $2,113
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 36 Ad Valorem Taxes
The above taxes equate to $1.03/SF of building area of the main structure. Based on the
foregoing the subject property appears to be equitably assessed; however, the assessed value
of the subject property is low based on the value estimated in this report.
96.027 Price, Denton Inc,
MF2
C''+ SF12
~ A
/
PDl14
SF7 "
SF9
TH1
.... SF12
Harrington - Sandy Lake Rd. 37 Zoning and Deed Restrictions
__ ZONING AND DEED RESTRICTIONS
The subject property is zoned Retail (R) by the City of Coppell Comprehensive Zoning
Ordinance. This classification is intended for neighborhood shopping facilities which provide
-- limited business service and office facilities predominantly for the convenience of residents of
the community. The Retail district allows most retail, office, nursing homes, hospital, as well
as institutional uses. Residential use is not permitted.
Some of the key provisions of the zoning ordinance that affect the use of the subject property
are as follows:
Minimum Front Yard 30 feet, with no front yard parking, and 60 feet with front yard
parking.
Minimum Rear Yard 10 feet unless adjacent to a residential zoning district in which case
20 feet minimum be observed.
Minimum Side Yard 30 feet when adjacent to a street or property line.
Maximum Lot Coverage 40%
Height Restrictions 2.5 stories or 35 feet.
Parking Regulations Retail Use: I space per 200 SF of gross leasable area.
Office Use: 1 space per 300 SF of gross floor area.
Loading Regulations No loading area required for structures less than 5,000 square feet.
Landscaping 10 feet along right of ways, and 5% of the remaining space.
-' Because the subject improvements existed prior to current zoning ordinances, the structure is
considered to be dimensionally non-conforming. Parking is not allowed in the minimum front
-- yard area, and the property does not meet landscaping and paving requirements. A
96.027 Price, Denton Inc.
Harrington - Sandy Lake Rd. 38 Zoning and Deed Restrictions
representative of the zoning department indicated that after the right-of-way taking, some issues
may have to be brought before the Board of Adjustment for approval, such as the number of
designated parking spaces.
There was no information provided to us indicating the presence of deed restrictions affecting
the use of the property. To the best of our knowledge, there are no deed restrictions affecting
or limiting the use of the property. Deed restrictions are a legal matter, and normally only a
title search by a competent title attorney would uncover them. Price Denton, Inc. has not
undertaken such a search, and is not qualified to do so. Thus, there is no warranty that such
restrictions do not exist.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 39 Highest and Best Use
_ HIGHEST AND BEST USE
Highest and best use may be defined as
The reasonably probable and legal use of vacant land or an improved property, which is
physically possible, appropriately supported, financially feasible, and that results in the highest
value.9
The highest and best use of both land as though vacant and property as improved must meet
four criteria. The highest and best use must be 1) physically possible, 2) legally permissible,
3) financially feasible, and 4) maximally productive)°
Many factors enter into a highest and best use analysis. Some of these are: current zoning in
_ the neighborhood, economic levels or present and anticipated growth in the area, accessibility
and change in use. A property is an integral part of its neighborhood and cannot be treated
as an entity separate and apart from its environment. The value of real property is not
-- intrinsic, but flows into the property from the surrounding forces and shares the future with the
neighborhood in which it is located. Highest and best use is shaped by the competitive forces
-- in the marketplace. It is not a subjective determination by the owner or the appraisers, but is
based on economic forces affecting the property.
Highest and Best Use Assuming a Vacant Site
Possible Use
-- The first constraint imposed on the use of a property is the physical limitations of the site. The
subject site consists of a 1.4817 acre tract of land which is located on the south side of Sandy
_ Lake Road at the eastern edge of the city limits of Coppell, Texas. The land is generally level
and is located adjacent to, but above, the floodplain, and adjacent to the Trinity River.
9TheAppraisal ofRealEstate, Tenth Edition (Chicago: American Institute of Real Estate Appraisers, 1987),
p. 275.
~°The Appraisal of Real Estate, Tenth Edition (Chicago: American Institute of Real Estate Appraisers,
1987), p. 280.
96.027 Price. Denton Inc.
Harrington - Sandy Lake Rd. 40 Highest and Best Use
The size of the site is adequate for a variety of small-scale developments. The shape of the site
is generally rectangular, but has a low frontage-to-depth ratio. This physical characteristic is
considered to pose constraints on the type of development which could tltilize the entire site,
thus potentially resulting in an inefficient use of the total land area.
The primary constraint on development at the present time is lack of water and sanitary sewer
service. Without these utilities available, usage of the site would be limited to low-intensity
uses with limited demand on a water well and septic system. The nearest water service is
located at Riverchase Drive, approximately 2,000 feet to the west. Sanitary sewer is also
located here, although it appears to be slightly uphill to this location, which would entail a lift
station for a sewer line to tie in at this location. Based on discussions with the city engineering
department, a possibility which might preclude the need for a lift station would be if the subject
site could access the sanitary sewer line in the residential subdivision in preliminary stages of
development to the southwest. However, it was reported that the residential sewer lines might
be smaller than would be required for a retail use of the subject tract.
The developer of the site would be responsible for providing utilities services to the tract.
Because of the small size of the subject site, it would not be cost effective to unilaterally extend
water and sewer service from Riverchase Drive. Therefore, it is reasonable that these utilities
will not be available to the subject site until the land adjacent to the west is developed. Based
on the limited residential population in the immediate area, demand for retail uses along this
section of Sandy Lake Road can be expected to be delayed for many years.
Permissible Use
Legal restrictions to the use of a site include public restrictions such as zoning and private
restrictions such as easements and deed restrictions.
The subject site is zoned R - Retail by the City of Coppell. This zoning classification allows
a variety of retail uses and office uses. Overall, the zoning would allow the site to be developed
with a wide variety of uses. Residential uses are not permitted in this zoning.
No deed restrictions were apparent in the information furnished to us. However, deed
restrictions are a legal matter and a title search by a competent title attorney is recommended
in order to make a determination as to the existence of any such deed restrictions. For
purposes of this report, it is assumed that no deed restrictions exist.
06.027 Price. Denton Inc,
Harrington - Sandy Lake Rd. 41 Highest and Best Use
Feasible Use
Sites along Sandy Lake Road are predominantly undeveloped in the vicinity of the subject;
-- however, the street is a well-traveled thoroughfare into the primary residential areas of Coppell.
However, the physical constraints discussed previously limit the feasible uses of the site to very
low-intensity development, until such time that water and sewer service is available.
Maximally Productive Use
Given the physical attributes of the subject site, its location, frontage-to-depth ratio, and lack
of water and sanitary sewer service, the maximally productive use of the site is to hold as all
investment for future development.
Highest and Best Use As Improved
The subject site is improved with an approximately 2,048 square foot commercial building, with
two small outbuildings towards the rear of the site. The current use is a iow-intensity
combination retail/residential use which places limited demand on the available water well and
septic system. It is unlikely that a higher-intensity use could be accommodated. There is no
alternative use which would economically justify the removal of the existing improvements.
Therefore, the current use of the site is considered to be the highest and best use of the site
as improved.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 42 Valuation Process-Whole Property
_ VALUATION PROCESS-WHOLE PROPERTY
In estimating the market value of real property~ there are three recognized approaches or
techniques that, when applicable, can be used to process the data considered significant to each
separate value indicator. In all instances, our experience, coupled with objective judgment,
plays a major role in arriving at the conclusions of indicated value. The quantity and quality
of available data and the applicability of each approach are important factors in comparing the
various indications and reconciling them into a final estimate of value.
The three approaches are commonly known as:
Cost Approach: Approach through which an appraiser derives a value indication of the fee
simple interest in a property by estimating the current cost to construct a reproduction of or
replacement for the existing structure, deducting for all evidence of accrued depreciation from
the cost new of the reproduction or replacement structure, and adding the estimated land value
plus an entrepreneurial profit. Adjustments may be made to the indicated fee simple value of
the subject property to reflect the value indication of the property interest being appl'aised.~1
Sales Comparison Approach: Approach through which an appraiser derives a value indication
by comparing the property being appraised to similar properties that have been sold recently,
applying appropriate units of comparison, and making adjustments, based on the elements of
comparison, to the sale prices of the comparables.12
Income Capitalization ApprOach: Approach through which an appraiser derives a value
indication for income-producing property by converting anticipated benefits, i.e., cash flows and
reversions, into property value. This conversion can be accomplished in two ways: One year's
income expectancy or an annual average of several years' income expectancies may be
capitalized at a market-derived capitalization rate or a capitalization rate that reflects a
l~The Dictionary of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p. 72
~2The DictionaO' of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p. 265.
96.027 Price, Denton Inc,
Harrington - Sandy Lake Rd. 43 Vahmtion Process-Whole Property
specified income pattern, return on investment, and change in the value of the investment:
secondly, the annual cash flows may be discounted for the holding period and the reversion at
a specified yield rate.~3
The Cost Approach is most applicable for newer improvements or for improvements which are
unique or specialized in nature and for which there is a lack of comparable income or market
sales data. Due to the difficulty in accurately measuring depreciation, this approach tends to
be less reliable in older properties or in properties which have a great deal of economic
obsolescence due to outside market factors.
The Sales Comparison Approach is considered very reliable when adequate sales data on
properties similar to the subject are available. In a slow market where data on highly
comparable properties is difficult to find, this approach is less reliable.
The Income Capitalization Approach is most applicable to properties that are bought and sold
for investment purposes and is considered very reliable when adequate income and expense
data are available. Information from this approach is also useful in making adjustments in the
Sales Comparison Approach when differences in properties can be measured by rent
differentials, and in the Cost Approach in analyzing functional and economic obsolescence when
these factors cause a rent loss.
Two of the three approaches to value will be utilized in the appraisal of the subject property.
The design as a combination residential/commercial use, and the lack of adequate public
utilities, significantly limit the number of potential uses for the property. The Income
Capitalization Approach was not considered, as these features make the subject a poor
investment property, with no lease data or capitalization rate data available for properties
lacking utilities service.
13The Dictionar3, of Real Estate Appraisal, Second Edition (Chicago: American Institute of Real Estate
Appraisers, 1989), p. 156
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 44 Land Valuation
LAND VALUATION
In estimating the value of the subject site the Sales Comparison Approach was used. The Sales
Comparison Approach to value is based on the principle of substitution; that is, the value of
the property is governed by the prices generally obtained for similar properties. Research is
conducted to obtain data on recent sales of similar properties and then each sale is compared
to the subject for differences in location, physical attributes and legal and economic
characteristics. The unit of comparison will be the sales price per square foot.
Our research covered sales activity in the northwest Dallas County area from January 1994 to
the present.
There were no transactions discovered with all characteristics similar to the subject. After
adjustments, these sales are considered to be indicative of the estimated market value of the
subject. The following pages contain specific information as it was reported to us pertaining
to these sales. Reference is made to the Land Sales Map following the comparables for
locations of the comparables relative to the subject.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 45 Land Valuation
LAND SALE #1
Location: East side of Denton Tap Road, approximately 500 fcct north of Belt Line Road,
Coppell, Dallas County
Mapsco: D 11A-F
Legal Description: Part of Tract 5, Abstract 1054
Grantor: 884 South Denton Tap, Joint Venture
Grantee: Colonial R M C, Inc.
Interest Transferred: Fee Simple
Condition of Sale: Negotiated, arm's length transaction
Date of Sale: February 9, 1996
Recording Data: Volume 96028, Page 43
Purchase Price: $164,462
Purchase Price/SF: $2.25
Terms of the Sale: Cash to seller
Size: 1.678 acres (73,094 square feet)
Configuration: Rectangular
Topography: Level
Utilities: Ali available
Zoning: C - Commercial
Floodplain: None
Intended Use: Expansion of adiacent sell-storage facility.
Verification: Grantor (96-027) CAC
-- 96.027 Price,Denton Inc,
Harrington - Sandy Lake Rd. 46 Land Valuation
LAND SALE #2
Location: West side of MacArthur Boulevard; adjacent to Rivcrchase Drive, Coppell, Dallas
-- County
Mapsco: D 11B-A
Legal Description: Part of Tract 2.1, Abstract 1493 and 1442
Grantor: Dallas Area Affordable Partners IV, LP
Grantee: Sunbelt Self Storage XII, Ltd.
-- Interest Transferred: Fee Simple
Condition of Sale: Negotiated, arm's length transaction
Date of Sale: July 1, 1996
Recording Data: Volume 96128, Page 6502
Purchase Price: $516,588
Purchase Price/SF: $3.25
Terms of the Sale: Cash to seller
-- 1~8,9$0 square feet)
Size: 3.649 acres ( . .
Configuration: Irregular
Topography: Level
Utilities: All available
Zoning: PD - Commercial
-- Floodplain: None
Intended Use: Construction of a self-storage facility.
Verification: Broker (96-027) CAC
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 47 Land Valuation
LAND SALE #3
Location: West side of MacArthur Boulevard, approximately 300 feet north of Riverchasc
Drive, Coppell, Dallas County
Mapsco: D llB-A
Legal Description: Part of Abstract 1493
Grantor: Dallas Area Affordable Partners IV, LP
Grantee: Mason Harrison Jarrard Enterprises
Interest Transferred: Fee Simple
Condition of Sale: Negotiated, arm's length transaction
Date of Sale: July 17, 1996
Recording Data: Volume 96139, Page 3455
Purchase Price: $300,000
Purchase Price/SF: $7.11
Terms of the Sale: Cash to seller
Size: 0.969 acres (42,219 square feet)
Configuration: Generally Rectangular
Topography: Level
Utilities: All available
Zoning: PD - Commercial
Floodplain: None
Intended Use: Construction of a restaurant
Verification: Broker (96-027) CAC
- Price,Denton Inc.
Harrington - Sandy Lake Rd. 48 I~nd Valuation
LAND SALE #4
Location: West side of Denton Tap Road, approximately 385 feet south of Bethel School
Road, Coppell, Dallas County
Mapsco: D llA-A
Legal Description: Part of Tract 9, Abstract 301
Grantor: James W. Butch, etux
Grantee: Kwik Industries Inc.
Interest Transferred: Fee Simple
Condition of Sale: Negotiated, arm's length transaction
Date of Sale: July 3, 1995
Recording Data: Volume 95128, Page 3472
Purchase Price: $200,000
Purchase Price/SF: $5.64
Terms of the Sale: Cash to seller
Size: 0.814 acres (35,444 square feet)
Configuration: Rectangular
Topography: Level
Utilities: All available
Zoning: Commercial
Floodplain: None
Intended Use: Construction of a dry cleaners.
Verification: Broker (96-027) CAC
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 49 Land Valuation
LAND SALE #5
Location: South side of Beltline Road, approximately 1,521 feet east of MacArthur
Boulevard, Coppcll, Dallas County
Mapsco: D 11B-B
Legal Description: Part of Abstract 1493
Grantor: NEC Properties, Inc.
Grantee: Blooming Colors Nursery
Interest Transferred: Fee Simple
Condition of Sale: Negotiated, arm's length transaction
Date of Sale: March 23, 1994
Recording Data: Volume 94055, Page 5967
Purchase Price: $130,680
Purchase Price/SF: $1.50
Terms of the Sale: Cash to seller
Size: 2.000 acres (87,120 square feet)
Configuration: Rectangular
Topography: Level
Utilities: All available
Zoning: Commercial
Floodplain: None
Intended Use: Plant Nursery
Verification: Files
Price. Denton Inc,
Harrington - S.andy Lake Rd. 50 Land Valuation
LAND SALE #6 (Asking)
Location: South side of Sandy Lake Road, east of Riverchase Drive, Coppell, Dallas County
Mapsco: D 1B-Y
Date of Sale: Current Offering
Offering Price: $609,000
Offering Price/SF: $1.92
Terms of the Sale: Cash to seller
Size: 7.284 acres (317,291 square feet)
Configuration: Irregular
Topography: Level
Utilities: Electricity and tclephonc
Zoning: Retail
Floodplain: Yes
Verification: MLS
- Price,Denton Inc.
Comparable Land Sales
1 inch = 0.84 mile~
I [ I ' I i I
0 1700 ~ 5100
Scale in Fee~
ceey~ 1~e6 InlMMe(~, leG.
Mii~ Ce~Tf~hl MIIteee, In(=. LCR ~6054
Harrington - Sandy Lake Rd. 51 Land Valuation
SUMMARY OF COMPARABLE LAND SALES
1 ES of Denton Tap Rd., Coppell 2/96 1.378 AC C Rect. Level $2.25/SF
2 WS of MacArthur Blvd., Coppell 7/96 3.649 AC D Irreg. Level $3.25/SF
3 WS of MacArthur Blvd., Coppell 7/96 0.969 AC PD Reef. Level $7.11/SF
4 WS of Denton Tap Rd., Coppell 7/95 0.814 AC C Reef. Level $5.64/SF
5 SS of Beltline Road, Coppell 3/94 2.000 AC C Reck Level $1.50/SF
6 SS of Sandy Lake Rd., Coppell Off. 7.284 AC R Irreg. Level $1.92/SF
Subject SS of Sandy Lake Rd., Coppell R Rccl. Level
Sale Price Per Square Foot Analysis
-- The comparables ranged in price per square foot from $1.50 to $7.11. This range in price
reflects differences in the locational, physical, legal and economic characteristics of the
_ comparables selected. Further analysis and adjustment for the following factors narrows this
range considerably.
1. Real property rights conveyed
2. Financing terms
-- 3. Conditions of sale
4. Market conditions (time)
_ 5. Location
6. Physical features
In comparison to the subject, upward adjustments are made to the sales price per square foot
of the comparables for inferior characteristics and downward adjustments for superior
characteristics. A detailed analysis involving each of these factors and the final value
conclusions for the subject site follows.
96.027 Price. Denton Inc,
Harrington - Sandy Lake Rd. 52 Land Valuation
Real Property Rights Conveyed
The first adjustment to be considered is for any differences in the property rights being
-- conveyed in the sale. Properties in which less than the full fee simple estate is transferred
frequently sell for a lesser price. Land conveyed as a leased fee may not be immediately
-- developable, or the rents paid under the lease may impact the desirability of a particular site
and hence the price paid. If the leasehold estate is conveyed, any improvements constructed
may exhibit a different expense structure (and net income stream) than an improved property
where land and building are held in common ownership. Because these factors can have an
impact on value, one of the initial steps in the valuation process is a determination of the real
property interests which have been conveyed.
-- The sales comparables conveyed the fee simple title to the site. This is the interest in the
subject site which is being appraised; therefore, no adjustment was required to these sales for
property rights conveyed.
Financing Terms
The transaction price on one property may differ from that of another due to differences in
_ financing arrangements. An adjustment for financing terms is usually warranted if these terms
differ from a cash transaction. Cash equivalency is generally defined as a cash purchase or a
purchase where the seller receives cash and the buyer finances on terms (loan to value ratio,
interest rate, amortization schedule and/or balloon payment) typical for third party conventional
loans for the property type in the area. Atypical financing terms frequently include seller
-- financing, installment sales, assumable and wraparound financing. However, all financing
arrangements must be analyzed in the context of 1) market evidence and 2) terms generally
_ available through conventional sources for the property type and location.
All of the sales were transacted on a cash-to-seller basis with financing, if any provided by third
parties. Therefore, none of the sales required an adjustment for financing terms.
-- Conditions of Sale
_ Adverse conditions of sale can account for a significant discrepancy from the sales price actually
paid compared to that of the market. This discrepancy in price is generally attributed to
unusual motivations of the buyer or seller. Certain conditions of sale are considered to be non-
-- 96.027 Price.Denton Inc,
Harrington - Sandy Lake Rd. 53 Land Valuation
market and may include: a seller acting under duress, a lack of exposure to the open market,
intra-family or intra-business transactions for the sake of family or business interest, unusual
tax considerations, sale at legal auction, or eminent domain proceedings.
All of the sales were reportedly negotiated arms length transactions with neither seller or buyer
acting under duress or with any undue motivation. Therefore none of the actual sales data was
adjusted for conditions of sale. Comparable No. 6 is adjusted downward because it is an asking
price and must reflect the time involved in marketing a property as well as the negotiations
which typically lower an actual sale price from an original asking price.
Market Conditions (Time)
-- Market conditions generally change over time, but the date of the appraisal is a specific time.
In an unstable economy undergoing changes in the value of the dollar, interest rates, and
economic growth or decline require a monitoring of real estate's changing market conditions.
Significant monthly changes in price levels can occur in several areas of a city, while prices in
other areas may remain relatively stable. Although the adjustment for market conditions is
-- often referred to as a "time adjustment," time is not the cause of the adjustment. In examining
the change in market conditions between the time of a comparable sale and the effective date
-- of the appraisal, if the market conditions have not changed, then no time adjustment is
required, even though considerable time may have elapsed.
The sales have occurred over the past two years and there does not appear to be any
adjustment required for changes in market conditions during this time frame.
Location
Location is a strong factor affecting the sales price of land. The properties need not be in the
same neighborhood, but they should be in neighborhoods which offer the same advantages and
have, in general, the same social and economic status.
The sales are located in Coppell; however, there are wide variations in the locations of the sales
based on surrounding influences and the density of development in the immediate vicinity of
each sale property. The subject is in a relatively undeveloped area, and as a result of the
amount of floodplain in the area, will never have a high density of development surrounding
it. Sales No. 2, 3, 4, and 5 are located closer to the core of residential uses in Coppeli.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 54 Land Valuation
Additionally, the southern part of the city is a better location for retail development because
this is the primary commuting pattern for residents. Overall, Sale No. 1 was adjusted slightly
upward because it is in more of an industrial area and Sale No. 5 was adjusted moderately
upward because it is in an area of limited residential development potential due to floodplain.
Comparable No. 6 was adjusted slightly downward, because it is adjacent to the golf course,
which gives it an amenity not offered by the subject, although they are adjacent. Sales 2, 3, and
4 were adjusted moderately downward because of superior locations in high quality, growing
residential areas.
Physical Characteristics
Differences in the physical characteristics of properties can significantly impact their sales
prices; thus requiring a comparison and adjustment to the comparables if necessary. Physical
characteristics that could have an effect on value include size, configuration (frontage-to-depth
and shape), topography/floodplain, and adequacy of utilities.
The subject property is a relatively level and generally rectangular tract of land which contains
1.4817 acres of land.
Size
Size plays a part in the marketplace in creating more or less utility and limiting the market
segment which can afford each property. Therefore, size adjustments are generally required
when there is significant difference in size of two sites. Normally, smaller properties tend to
-- sell for a higher unit price because the overall price is relatively modest in comparison to larger
properties.
The subject falls in the middle of the range of site size. Sale No. 1 is similar in size and is not
considered to require adjustment. Sales 2, 5, and 6 are larger and were adjusted upward, and
Sales 3 and 4 are smaller and were adjusted downward.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 55 Land Valuation
_ Configuration/Topography
The configuration of a site can affect the utility and therefore the market value of a site. An
-- irregular shaped site or one with limited frontage in relation to its depth may be inappropriate
for certain uses. The impact of a site's configuration on value depends on the size of the parcel
-- and its probable use.
_ The subject property has a low frontage-to-depth ratio, indicating that maximizing the
economies of scale for the total site area would be difficult. Most retail uses desire the
maximum street frontage possible. The sales are generally rectangular in shape. Sales 3 and
-- 4 have favorable frontage-to-depth ratios which allow for ease of design and development and
are considered superior to the subject property for this factor. However, Sale No. 4 is below
-- street grade and was adjusted less than Sale No. 3. Sales No. 1 and 2 are considered similar
to the subject and did not require adjustment. Sale No. 5 has an inferior frontage-to-depth
ratio to the subject and was adjusted significantly upward. Comparable No. 6 is slightly inferior
to the subject due to the irregular configuration.
Zoning
-- A major factor affecting the utility of a site is the existing zoning on the property. Zoning can
restrict the uses of a site and thus narrow the demand for the site. A lower allowed
development density limits the return an investor can expect from the land.
The sites are all zoned for commercial and retail uses. The Commercial zoning district is less
restrictive and allows a greater variety of potential uses, particularly those uses which are better
able to utilize a site configuration such as the subject. Therefore, Sales 1 through 5 were
adjusted downward because of superior zoning relative to the subject.
Direct Accessibility
The subject site has direct access available from Sandy Lake Road in both directions. Inferior
-- accessibility would result from a divided street without a median cut immediately adjacent to
provide direct access from both directions. Additionally, a corner location providing access
_ from two streets, or secondary frontage and accessibility would be a similar or superior
characteristic based on the ease of providing direct access to the greatest number of vehicles.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 56 Land Valuation
Sales No. 1 and 6 have access from two directions, which is similar to the subject. The
remaining sales have direct access from only one direction, which is an inferior characteristic
in comparison to the subject. An appropriate adjustment for this factor would best be derived
-- by paired sales analysis. However, the number of other differences between the comparable
sales requires this adjustment to be derived only after making other adjustments. Based on this
-- analysis, an appropriate adjustment for this factor would be 5%.
Frontage/Vi sibility
The visibility of a site and number of vehicles which pass a site is a critical factor in the value
-- of a commercial site in which most businesses derive its revenue from passing consumers.
Therefore, sites which have a clear field of vision from the thoroughfare and the highest volume
-- of traffic in the vicinity of a site would be considered superior for this factor than otherwise
similar sites in less traveled areas.
Sales 2, 3, and 4 are considered moderately superior to the subject based on this factor. Sales
1 and 5 are slightly superior to the subject, and Sale No. 6 is similar to the subject.
Utilities
Adequate utilities availability is required for most properties to maximize the development
potential of a site. All the sales except No. 6 had all utilities service immediately available.
Based on the estimated cost of providing utilities to the subject, a lump sum deduction of
$1.25/SF was made to each of the comparable sales, except Sale No. 6 which is adjacent to the
-- subject and was adjusted downward by only $0.25/SF.
_ Summary of Adjustments and Conclusion
The following chart summarizes the appropriate adjustments applicable to each comparable in
relation to the subject.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 57 Land Valuation
Adjustment Grid
Unadjusted Sale Price/SF $2.25 $3.25 $7.11 $5.64 $1.50 $1.92
Rights Conveyed Adjustment -0- -0- -0- -0- -0- -0-
Financing Adjustment -0- -0- -0- -0- -0- -0-
Conditions of Sale Adj. -0- -0- -0- -0- -0- -25%
Market Conditions Adj. -0- -0- -0- -0- -0- -0-
Adjusted Sale Price (prelim) $2.25 $3.25 $7.11 $5.64 $1.50 $1.44
Location Adjustment + 10% -20% -20% -20% +20% -10%
Physical Characteristics
· Size -0- + 10% -10% -10% + 10% + 10%
· Configuration/Topography -0- -0- -20% -15% +30% +10%
· Zoning -5% -5% -5% -5% -5% -0-
· Direct Accessibility -0- +5% +5% +5% +5% -0-
· FroutageNisibility - 10% -20% -20% - 15% - 10% -0-
Total Physical Adjustment -15% -10% -50% -40% +30% +20%
Net Percentage Adjustment -5% -30% -70% -60% +50% + 10%
Adjusted Value Before $2.14 $2.28 $2.13 $2.26 $2.25 $1.58
Utilities Adjustment
Utilities Adjustment -$1.25/SF -$1.25/SF -$1.25/SF -$1.25/SF -$1.25/SF -$0.25/SF
Final Adjusted Pr,ce ] $0.89 I $1.03 I *0.8 I $1.01 ] $'-00 I '1.3'
After adjustment the sales indicate a range of values from $0.88 per square foot to $1.33 per
square foot. None of the sales comparables is considered highly comparable to the subject;
however, Sales No. 1, 2, and No. 6 required the smallest net adjustments and are considered
-- more reliable indications of value within the indicated range of adjusted sales prices.
-- Based upon the foregoing, it is our opinion that the market value of the fee simple interest in
the subject site is $1.00/SF of land area, and is calculated as follows:
64,543 SF x $1.00/SF = $64,543
-- Rounded to: $65,000
96.027 Price, Denton Inc.
Harrington - Sandy Lake Rd. 58 Cost Approach
COST APPROACH - WHOLE PROPERTY
This approach to value is devoted to an analysis of the physical value of the property, i.e., the
current market value of the land, assuming it is vacant, to which is added the depreciated value
of the improvements.
_ Estimated Cost of Improvements
Our estimate of the cost to build the improvements is based on information regarding current
building costs obtained from market surveys, namely the Marshall Valuation Service, and from
recent construction costs for similar buildings in the Dallas area.
The primary improvements are considered to be a Fair, Class D Residence, as far as
comparison with the Marshall Valuation Service, although part of the interior construction is not
residential. The secondary residential structure is considered a Low Cost Class D Residence,
and the storage shed is considered to be a Low Cost Class D Garage.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 59 Cost Approach
Primary Improvements - 2.048 Square Feet
Base Cost $42.90/SF $ 87,859
Heat/Air-Conditioning 5.85/SF 11,981
Appliance Allowance 1,975
Subtotal $101,815
Floor Area/Shape Multiplier x 0.964
Current Cost Multiplier x 1.000
Local Cost Multiplier x 0.900
Total Reproductiou Cost New $ 88,335
Secondary Residential Structure - 434 Square Feet
Base Cost $33.36/SF $ 14.478
Heat/Air-Conditioning 1.58/SF 686
Subtotal $ 15,164
Floor Area/Shape Multiplier x 1.104
Current Cost Multiplier x 1.000
Local Cost Multiplier x 0.900
Total Reproduction Cosl New $ 15,067
Storage Shed - 315 Square Feet
Base Cost $15.28/SF $ 4.813
Current Cost Multiplier x 1.000
Local Cost Multiplier x 0.900
Total Reproduction Cost New $ 4~332
Total Reproduction Cost New of All huprovemeuts $107,734
-- Physical Deterioration
-- Physical deterioration is a reduction in utility resulting from an impairment of physical
condition and is evidenced by wear and tear, decay, or structural defects.
As mentioned in the Improvement Analysis, the subject was reportedly constructed in 1975.
The estimated useful life of such improvements is considered to be approximately 50 years.
With an actual age of approximately 21 years, and an economic life of 50 years, the indicated
physical depreciation would be 42%. However, structures tend to depreciate more slowly in
-- the early years. Based on the depreciation tables in the Marshall Vah~ation Service, the
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 60 Cost Approach
_ indicated depreciation factor for the subject property would be 25%. Based on our inspection
of the premises and considering these two estimates of depreciation, the appraisers have used
a factor of 33% to calculate physical deterioration for the subject improvements.
Functional Obsolescence
As mentioned in the Improvements Analysis, the functional utility of the primary structure is
reduced because of inadequate sales floor area relative to the total size of the structure.
Therefore, the primary improvements are considered to suffer from functional obsolescence.
It is our opinion that the existing bedrooms could be used by a variety of businesses for typical
-- office, storage, or administrative purposes. Approximately 25% of the building is considered
to have limited utility for commercial users. Some general parameters for this loss in utility can
-- be derived from the comparable sales. Since there are some users that could use the entire
space, or create a way in which to use the existing space as-is, the loss in utility would be a
_ percentage of the actual cost of this space. Overall, the appraisers consider the functional
obsolescence to be 25% of the depreciated cost of the affected portion of the structure. The
estimate of functional obsolescence is therefore the 25% of the structure which suffers the
-- obsolescence times 25% of the physically depreciated reproduction cost. As a cross-check of
the reasonableness of this conclusion, the functional obsolescence could be considered as the
-- cost to remove the kitchen wall and cabinetry, and finish work to create a larger sales floor.
This is calculated as follows:
Estimate of Funclional Obsolescence - Primary Improvements
$88,335 .67 $59,184 x 25 % x 25 % = $3.699
External Obsolescence
External obsolescence is a form of depreciation which is caused by factors external to the
property itself, such as environmental or economic forces which affect supply\demand
-- relationships or otherwise impair the desirability or useful life of the subject property.
-- The subject is not considered to suffer from external obsolescence.
- Price.Dent0n Inc.
Harrington - Sandy Lake Rd. 61 Cost Approach
SUMMARY OF COST APPROACH
Estimated Cost of New Improvements: $107,734
Less: Accrued Depreciation
_ Physical Curable: $ -0-
Physical Incurable: :~J,!~ 35,552
Functional Obsolescence: 3,699
External Obsolescence: -0-
Total Accru ed Depreciation: (39,251)
Depreciated Value of Improvements: $ 68,483
Add Land Value: 65,000
Estimated Value Via Cost Approach: $133,483
Rounded to: $133,000
96.027 Price. Denton Inc.
Harrington - Sandy Lake Rd. 62 Sales Comparison Approach-Whole Property
SALES COMPARISON APPROACH-WHOLE PROPERTY
The Sales Comparison Approach to value is based on the principle of substitution; that is, the
value of the property is governed by the prices generally obtained for similar properties.
Research is conducted to obtain data on recent sales of similar properties and then each sale
is compared to the subject for differences in location, physical attributes and legal and
economic characteristics. The unit of comparison will be the price per square foot of primm3~
building improvements.
-- Our research covered sales activity in the greater Dallas area, focused on locations similar to
the subject, outside the more highly developed urban core, from January 1995 to the present.
-- The subject property, on a fee simple basis as a general commercial use, in an undeveloped
area, would primarily rely on passing commuter traffic for identification, although the location
would tend to make the property a destination, rather than an impulse stop. Therefore, the
sales search concentrated on similar commercial locations.
The following sales were considered reasonably comparable to the subject. These sales were
analyzed in regard to time of sale, location, and age and condition of the building. After
adjustments, these sales are considered to be indicative of the market value of the subject. The
following pages contain specific information as it was reported to us pertaining to these sales.
Reference is made to the Improved Property Sales Map following the comparables for locations
of the comparables relative to the subject.
- Price.Denton Inc,
Harrington - Sandy Lake Rd. 63 Sales Comparison Approach-Whole Property
hnproved Property Sale #1
Ix}cation: 1204 N. Stcmmons Freeway, Lewisvillc, i)cnton ('ounty, Texas
Mapsco: D-65(}-C
Grantor: Dickey Properties
Grantee: Bennic I). l laycs
Date of Sale: August 2, 1995
Recording Data: Volume 95, Page 46072
Sales Price: $390,000 ($95.7 I/SF)
Terms: Cash to seller
Cash Equivalent Price: $390,000 ($95.7 I/SF)
Rights Conveyed: l~eascd Fcc
Price, Den[on Inc.
Harrington - S:tndy Lake Rd. 64 Sales Comlmrison Approach-Whole Property
Physical Description:
Year of Construction: 1985
Type of Construction: Wood siding
Gross Building Area: 4,075 SF
Net Rentable Area: 4,075 SF
Condition: Average
Land Area: 36,080 square feet, or 0.828 acres
Land/Building Ratio: 8.85:1
Occupancy a! Sale: 100%
Comments: This property is located along Stemmons Freeway in north Lewisville. Thc property
is used as a bicycle sales store.
Verification: Seller (96-027) CAC
Price. Denton Inc,
Harrington - Sandy Lake Rd. 65 Sales Comlmrismt Approach-Whole Property
!
hnproved Property Sale #2
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i Location: 506 S. Stemmons Freeway, Lewisville, Denton County, Texas
I Mapsco: D-65 l-J
Grantor: James l~. Iliggins
I Grantee: 506 South Stemmons, l.td.
Date of Sale: August 7, 1995
I Recording Data: Volume 95, Pagc 47357
i Sales Price: $115,000 ($70.16/SF)
Terms: Cash to seller
I Cash Equivalent Price: $115,000 ($7(I. 16/SF)
Rights Conveyed: Fee Simple
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I ~6.0:, Price.Dent0n Inc.
/
Harrington - Sandy Lake Rd. 66 Sales Comparison Approach-Whole Property
I
Physical Description:
I Year of Construction: 1950
Type of Construction: Brick vcnccr
I Gross Building Area: 1,639 SF
Net Rentable Area: 1,639 SI:
Condition: Fair
Land Area: 11,626 square feet, or 0.267 acres
I Land/Building Ratio: 7.09:1
Occupancy at Sale: 100%
I Comments: This property is similar in construction to the subject and is uscd as office spacc.
Verification: Broker (96-027) CAC
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! 96.0_,~ Price.Denton Inc,
Harrington - Sandy Lake Rd. 67 Sales Comparison Approach-Whole Property
I
Improved Property Sale #3
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I Location: 110 Poydras, I.cwisville, Denton County, Texas
I Mapsco: D-651-E
Grantor: Monica l.ouann Barfknccht, et al.
I Grantee: William H. Holsclaw
Date of Sale: May 30, 1996
I Recording Data: Volume 96, Page 40000
Sales Price: $80,000 ($50.00/SF)
I Terms: Cash to seller
I Cash Equivalent Price: $80,000 ($50.00/SF)
Rights Conveyed: Fee Simple
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I ~6.0~7 Price,Dent0n Inc,
/
Harrington - Sandy Lake Rd. 68 Sales Comparison Approach-Whole Property
Physical Description:
Year of Construction: _ 1945
Type of Construction: Stucco
Gross Building Area: 1,600 SF
Net Rentable Area: 1,600 SF
Condition: Fair
Land Area: 1,999 square feet, or 0.046 acres
Land/Building Ratio: 1.25:1
Occupancy at Sale: 0%
Comments: This property is located on a seconda~ street adjacent to old downtown I.ewisvillc
and is used as a retail store.
Verification: Broker (96-027) CAC
Price. Denton Inc.
Harrington - Sandy Lake Rd. 69 Sales Comparison Approach-Whole Property
Improved Property Sale #4
Location: 4000 1-351'i, l.akc Dallas, Denton County, rl'cxas
Mapsco: D-450-S
Grantor: Estate of Mary Gotcher
Grantee: Ten Point Inc.
Date of Sale: November 15, 1995
Recording Data: R0072343
Sales Price: $121,500 ($101.50/SF)
Terms: Seller financed $97,200 (80%) at 8.5~ for ten years
Cash Equivalent Price: $115,500 ($96.49/SF)
Rights Conveyed: Fee Simple
Price. Denton Inc,
Harrington - Sandy Lake Rd. 70 Sales Comparison Approach-Whole Property
Physical Description:
Year of Construction: 1967
Type of Construction: Brick veneer
Gross Building Area: 1,197 SF
Net Rentable Area: 1,197 SF
Condition: Good
Land Area: 40,772 square feet, or 0.936 acres
Land/Building Ratio: 34.1:1
Occupancy at Sale: 0%
Comments: This property fronts 1-35E and consists of a 3 bedroom/I-I/2 bath house. It was
purchased for a fence company's business use.
Verification: Broker (96-027) CAC
- Price.Denton Inc,
'~- , ~ ' Little
Improved Sales Map
I
1 i~ = 3.~ mi~
I i I I i I
0 1~
~~,~ L~4
Harrington - Sandy Lake Rd. 71 Sales Comparison Approach-Whole Property
SUMMARY OF IMPROVED SALES
1 1204 N. Stcmmons Fwy., Lcwisvillc $/95 4,075 SF 1955 $ 95.71/SF
2 506 S. Stcmmons Fwy., Lewisville 8/95 1,639 SF 1950 $ 70.16/SF
3 110 Poydras, Lewisville 5/96 1,999 SF _+ 1945 $ 50.00/SF
4 4000 1-35E, Lake Dallas 11/95 1,197 SF 1967 $101.50/SF
Subject SS of Sandy Lake Rd., Coppell 2,048 SF 1975
Sale Price Per Square Foot Analysis
The sales detailed on the previous pages were selected as those most comparable to the subject.
-- Reference to these comparables, and their locations relative to the subject, can be found on the
facing page.
The basis of adjustment for the subject property in this analysis will be the square footage of
the primary improvements. An adjustment will be made to the comparable sales data for the
contributory value of the subject's site improvements of the storage shed and small residence
building.
The comparables ranged in price per square foot from $50.00 to $101.50. This range in price
-- reflects differences in the locational, physical, legal and economic characteristics of the
comparables selected. Further analysis and adjustment for the following factors narrows this
range considerably.
1. Real property rights conveyed
-- 2. Financing terms
3. Conditions of sale
-- 4. Market conditions (time)
5. Location
6. Physical features of the building
7. Occupancy
-- 96.027 Price,Denton Inc,
Harrington - Sandy Lake Rd. 72 Sales Comparison Approach-Whole Property
In comparison to the subject, upward adjustments are made to the sales price per square foot
of the comparables for inferior characteristics and downward adjustments for superior
characteristics. A detailed analysis involving each of these factors and the final value
-- conclusions for the subject property follows.
-- Real Property Rights Conveyed
The first adjustment to be considered is for any differences in the property rights being
conveyed in the sale. The revenue generating potential of an income-producing property with
existing leases may be significantly different than a property sold in fee simple. A building
-- located on leased land may also exhibit a different expense structure (and net income stream)
than an improved property where land and building are held in common ownership. Because
-- these factors can have an impact on value, one of the initial steps in the valuation process is
a determination of the real property interests which have been conveyed.
Comparable Sales 3 and 4 were fee simple transactions; Comparables 1 and 2 were leased
properties. The subject property is occupied by the owner, thus, the fee simple interest in the
-- property is being appraised. There were no reported significant differences between market
lease rates and actual lease rates among the comparable sales. Therefore, no adjustment was
-- required for property rights conveyed for this sale.
Financing Terms
The transaction price of one property may differ from that of another due to differences in
-- financing arrangements. An adjustment for financing terms is usually warranted if these terms
differ from a cash transaction. Cash equivalency is generally defined as a cash purchase or a
purchase where the seller receives cash and the buyer finances on terms (loan to value ratio,
interest rate, amortization schedule and/or balloon payment) typical for third party conventional
loans for the property type in the area. Atypical financing terms frequently includes seller
financing, installment sales, assumable and wraparound financing. However, all financing
arrangements must be analyzed in the context of 1) market evidence and 2) terms generally
-- available through conventional sources for the property type and location.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 73 Sales Comparison Approach-Whole Property
All of the sales were on a "cash to seller" basis, except Sale No. 4, which was seller financed.
The cash equivalent price was estimated in the specific sale discussion and will be the basis on
which further adjustments are made. Therefore, none of the sales required additional
-- adjustments for financing terms.
-- Conditions of Sale
Adverse conditions of sale can account for a significant discrepancy from the sales price actually
paid compared to that of the market. This discrepancy in price is generally attributed to
unusual motivations of the buyer or seller. Certain conditions of sale are considered to be non-
- market and may include: a seller acting under duress, a lack of exposure to the open market,
intra-family or intra-business transactions for the sake of family or business interest, unusual
_ tax considerations, sale at legal auction, or eminent domain proceedings.
All of the sales were, reportedly, negotiated arms-length transactions with neither buyer or
seller acting under undue motivation. Therefore, there were no adjustments required for this
factor.
Market Conditions (Time)
Market conditions generally change over time, but the date of the appraisal is a specific time.
In an unstable economy undergoing changes in the value of the dollar, interest rates, and
economic growth or decline require a monitoring of real estate's changing market conditions.
Significant monthly changes in price levels can occur in several areas of a city, while prices in
- other areas may remain relatively stable. Although the adjustment for ~narket conditions is
often referred to as a "time adjustment," time is not the cause of the adjustment. In examining
the change in market conditions between the time of a comparable sale and the effective date
of the appraisal, if the market conditions have not changed, then no time adjustment is
required, even though considerable time may have elapsed.
The sales occurred within the last 13 months. Market conditions for these types of properties
-- have not changed significantly during this time period; therefore, there is no adjustment
necessary for market conditions.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 74 Sales Comparison Approach-Whole Property
Location
Location affects the eventual sales price of an improved property in much the same way as it
-- affects the price paid for land. The properties need not be in the same neighborhood, but they
should be in neighborhoods which offer the same advantages and have, in general, the same
- social and economic status.
The sales are generally located in the Lewisville area, which is considered a similar area in
general to Coppell, although residents have a higher overall median income in Coppell.
However, there is a larger commercial base along the Stemmons Freeway corridor. The
-- locations of the building sales are in more densely developed areas and have greater traffic flow
to generate business for the building occupants. Sales No. 1 and 2 are located along Stemmons
-- Freeway, which provides a superior location to the subject, and these sales were adjusted
moderately downward. Sale No. 3 is located in the downtown area, and receives limited street
traffic, but the downtown location is also slightly superior to the subject because of the
shopping identity and adjacency to other retailers. Sale No. 4 also fronts 1-35E, but the more
remote location in Lake Dallas offsets the advantage of the superior visibility, and the overall
-- location is considered similar to the subject.
_ Physical Characteristics
Differences in the physical characteristics of a property can significantly impact the sales price;
-- thus, requiring a comparison and adjustment to the comparables if necessary. Physical
characteristics that could have an effect on value include the building's design, appeal, age,
-- functional utility, condition, size and a property's land-to-building ratio.
_ Age and Condition
The comparable sales were constructed between 1945 and 1985. The subject property was
constructed in 1975 and is considered to be in average condition. Sales No. 2 and 3 are older
than the subject and considered to be in fair condition. These sales were adjusted upward in
-- comparison to the subject. Sale No. 1 is newer and in superior condition compared to the
subject, which required a downward adjustment for this characteristic. Sale No. 4 is considered
to be in slightly superior condition and was adjusted slightly downward.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 75 Sales Comparison Approach-Whole Property
Size
The subject primary improvements total approximately 2,048 square feet. The comparables
range in size from 1,197 square feet to 4,075 square feet. Overall, these are not considered to
be significant differences and no adjustments were necessary for size.
Land-to-Building Ratio
The subject property has a land-to-building ratio of approximately 23:1. This large land-to-
building ratio is a superior characteristic to the sales comparables, as it could allow for
-- expansion of the use or subdivision and sale of a portion of the site area. Therefore, Sales 1,
2, and 3 required upward adjustments in comparison to the subject for this factor. Sale No. 4
-- had a higher land-to-building ratio than the subject and was adjusted slightly downward.
Site Improvements
The subject property has a storage shed and a small residential structure located on the site,
-- which are considered to contribute some value to the total property. However, the parking lot
is unpaved, which is atypical of most commercial properties in the area and of the comparable
-- sales. Therefore, adjustments are required to reflect these factors as they compare to the sales
data. Sales No. 1, 2, and 4 were adjusted slightly upward in comparison to the subject. Sale
No. 3 was adjusted moderately upward.
Exterior/Interior Quality and Utility
This catego~3, reflects the construction quality of the structure and the interior finish-out. Sale
_ No. 3 is considered inferior to the subject for its quality of construction. Sales No. 2 and 4 are
considered similar to the subject for this characteristic. Sale No. 1 has superior utility and
design for commercial use and was adjusted slightly downward.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 76 Sales Comparison Approach-Whole Property
_ Utilities Adjustment
As mentioned, the lack of public water and sanitary sewer service limits the intensity of any
-- potential user of the subject property, although there are some uses which could utilize the
existing water well and septic system. The cost of providing utilities to the site has been
-- previously estimated at approximately $80,000, or approximately $39/SF of building area for the
primary improvements. Additionally, the cost of tying in the existing utilities in the structure
to public utilities must also be considered. Therefore, the cost of providing the existing
-- structure with public utilities setMce has been estimated at $40.00/SF of building area of the
primary improvements. However, to reflect the fact that there could be a user who would be
-- able to conduct the business using the existing water well and septic system rather than public
utilities, the comparable sales have been adjusted downward by 75% of the total estimated cost
of the utilities installation, or an adjustment to the comparable sales of $30.00/SF.
Summary of Adjustments
The following chart summarizes the adjustments discussed on the previous pages. This chart
_ represents our opinion of the appropriate adjustment applicable to each comparable in relation
to the subject.
Unadjusted Sale Price/SF $95.71 $70.16 $50.00 $96.49
Rights Conveyed Adjustment -0- -0- -0- -0-
Financing Adjustment -0- -0- -0- -O-
Conditions of Sale Adj. -0- -0- -0- -0-
Market Conditions Adj. -0- -0- -0- -0-
Adjusted Sale Price (prelim) $95.71 $70.16 $50.0(} $96.49
Location Adjustment -20% -20% -10% -0-
Physical Characteristics
Age/Condition - 10% + 20% + 30% - 10%
Size -0- -0- -0- -0-
Land-to-Building Ratio +20% +20% +40% -10%
Site Improvements + 10% + 10% +20% + 10%
Exterior/Interior Quality -10% -0- + 10% -O-
Total Percentage Adjustments -1(}% +30% +90% -10%
Utilities Adjustment -$30.00/SF -$30.00/SF -$30.00/SF -$30.00/SF
Final Adjusted Price $56.14 $61.21 $65.00 $56.84
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 77 Sales Comparison Approach-Whole Property
Conclusion
The adjusted prices range between $56.14 and $65.00 per square foot. The comparables are
-- generally appropriate for a variety of commercial, retail, and business uses, thus the sales are
considered reasonably comparable and competitive with the subject property. All the sales
-- required a number of adjustments, some with a fairly large magnitude. Sales No. 2 and No.
4 are physically most similar to the subject and are considered to be better indicators of the
value of the subject than any other. In our opinion, the value of the subject property would
reasonably fall in the middle of the range of adjusted sales prices.
-- After careful consideration of each improved sales comparable and the adjustments made, it
is our opinion that the current estimated market value of the fee simple interest in the subject
-- property, based on the square footage of the primary improvements, is calculated as follows:
$ 60.00/SF x 2,048 SF = $122,880
Rounded to: $123,000
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 78 Reconciliation and Final Value-Whole Property
RECONCILIATION AND FINAL ESTIMATE OF VALUE - WHOLE PROPERTY
- In the preceding sections of this report, indications of market value of the fee simple interest
in the subject whole property have been derived from two separate appraisal techniques. A
-- summary of the value estimates by the approaches is as follows:
Cost Approach $133,000
Sales Comparison Approach $123,000
Income Capitalization Approach SN/A
The information utilized in the Sales Comparison Approach was obtained from the marketplace
-- and confirmed by sources deemed to be reliable. Information utilized in the Cost Approach
was obtained from reliable market surveys, from actual cost data on similar properties, and
from conversations with knowledgeable persons doing business in the area.
The Cost Approach is based on the premise that an investor would not pay more for a building
-- than what it would cost to build a comparable new building. The value estimate is arrived at
by calculating the cost to build a new building, subtracting depreciation from all causes, and
-- adding the market value of the site. This approach is often particularly useful in the valuation
of new or nearly new improvements or specialized improvements. The disadvantages to this
technique include the difficulty in obtaining exact construction specifications and costs and the
highly subjective process of estimating depreciation.
-- The Sales Comparison Approach utilizes information regarding other transactions in the market
to arrive at an indication of value. Its major strength is that it is based on actual market
-- activity and allows the appraiser to arrive at a value estimate by observing what buyers are
paying for similar properties in the marketplace. The chief weakness of this approach is that
the comparable sales had diverse dates of sale, location, etc. However, after adjustment, the
value conclusion appears reasonable. Therefore, this approach was given some weight in
arriving at the final value conclusion.
Each approach is considered to have its own merits and limitations in the analysis of the subject
-- property. The analyses in each approach are considered to be reasonable and produce valid
indications of the value of the subject property. Therefore, equal emphasis has been placed on
each indication of value in arriving at a final estimate of value.
- Price,Denton Inc,
Harrington - Sandy Lake Rd. 79 Reconciliation and Final Value-Whole Property
Therefore, it is our opinion that the market value of the fee simple interest in the subject whole
property, as of September 4, 1996, was:
ONE HUNDRED TWENTY-EIGHT THOUSAND DOLLARS
($1Z8,000)
- ,6.o=, Price,Denton Inc.
'~ ~ VOL. 80230, PG. 0510 ~ ..q,L~:---'-'"
D.R.D.C.T. . ....... ._d.
Troffic Si
I ;. r/CAP Lqlt '
67+75.71 STA ~+os.63 NST'59'56"E 140.00'
CENTERIJNE 9.54' RT. _ ...... SJ.R.
: A~TV£MENT -- STA 68+13.44
W/CAP PARCEL 29
i 45,00' RT
~ __ CB=S84'59'14"W
S.I.R. W/CAP
STA
.... STA 68+73.12 E)p
PROP. R-O-I LINE 45.00' RT.
~ I I I I I I ! I I I I J I I
Harrington - Sandy Lake Rd. 80 Description of Park Taken
DESCRIPTION OF PART TAKEN
The total area of the taking is 4,952 square feet. The depth of the taking ranges from
approximately 35 feet on the west to approximately 41 feet on the east. The portion of the
-- subject property affected by the taking primarily consists of undedicated right-of-way. There
are slight differences between the existing right-of-way line and the proposed right-of-way line,
_ primarily around the proposed retaining wall. This can best be understood by examination of
the survey of the right-of-way area on the facing page. Because the new roadway will be
elevated in front of the subject property, a retaining wall is required in order to provide
adequate level parking area for the existing business.
-- The new roadway will be elevated by approximately five feet in the vicinity of the subject
property. This will necessitate a downward sloping entrance drive onto the subject property.
_ The subject's parking area is currently an unpaved gravel lot, which is generally at street grade,
which incorporates part of the current undedicated right-of-way for Sandy Lake Road adjacent
to the street.
The part taken does not constitute an economic unit within itself. Fol' this reason, the
-- estimated Highest and Best Use of the part taken is considered to be as part of the whole
property. The Highest and Best Use of the whole property is for commercial use.
Additionally, a temporary construction easement is required for construction of the retaining
wall. This area encompasses 6,140 square feet and is that area between the primary
-- improvements and the proposed right-of-way line. According to the Dallas County and City
of Coppell Engineering Departments, this temporary construction easement is exclusively for
-- the purpose of building the retaining wall and not for general use by the contractor as part of
the total roadway construction. Although access is required to be maintained at all times, the
_ physical requirements for the contractor to complete the retaining wall and the timing of this
construction are not known by engineers involved with the project. The total road
reconstruction is projected to take approximately two years, and the temporary construction
- easement will be for the duration of the total construction period.
- Price.Denton Inc.
Harrington - Sandy Lake Rd. 81 Valuation of Part Taken
VALUATION OF PART TAKEN
Right-Of-Way Taking
-- The acquisition of the right-of-way consists of gravel-paved land, most of which is previously
undedicated street right-of-way. As mentioned previously, the taking is not considered to be
an economic unit in and of itself, and its highest and best use is as a part of the whole property.
As a result, the unit value of the part taken is the same as estimated for the site as a whole.
Therefore, the value of the taking can be represented as follows:
Part Taken 4,952 SF @ $1.00/SF = $4,952
Temporary Construction Easement
In the case of the temporary construction easement, this area will only be affected during the
course of the construction project, and will revert fully to the property owner at the end of that
-- time. Therefore, the value of a temporary construction easement is less than the value of the
fee interest. In effect, the temporary construction easement area is to be leased from the
-- property owner, while still providing the owner the use of it. The ground lease would also be
based on the fee simple value of the site as a whole, incorporating the construction period and
a reasonable rate of return on the fee simple land value. There were no short-term ground
leases discovered in the vicinity of the subject property. Based on various surveys of ground
lease rates of return, as well as information on other ground leases in the greater Dallas area,
-- an appropriate rate of return on the land is estimated to be 10% per year. Because access to
the property is required to be maintained, the subject property is not considered to be damaged
-- by the temporary construction easement.
Based on this analysis, the value of the temporary construction easement can be represented
as follows:
- Temporary Construction Easement 6,140 SF @ $1.00/SF x 10% x 2 (years) = $1,228
-- 96.027 Price,Denton Inc.
Harrington - Sandy Lake Rd. 82 Value of Remainder Before the Take
VALUATION OF REMAINDER BEFORE THE TAKE
- Therefore, the valuation of the remainder before the taking would be the value of the property
as a whole of $128,000, less the previously estimated value of the right-of-way taking of $4,952.
-- This equates to a value of the remainder before the take, as of September 4, 1996, of $123,058.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake RtL 83 Valuation of Remainder After the Take
VALUATION OF REMAINDER AFI~ER THE TAKE
-- In the valuation of the remainder after the taking, issues of the effect on the property of the
elevated roadway, the possibility of reduced visibility of the property from westbound traffic,
-- and the loss of direct two-way access as a result of the new median which would be constructed
in front of the subject property, all have to be taken into consideration.
Cost Approach
-- The value of the loss of two-way access for the subject property remainder after the take can
be derived from the comparable land sales data. In the land valuation of the report, the
-- comparable sales data which had access from only one direction were adjusted upward by 5%
in comparison to the whole subject property. These sales now become comparable to the
subject remainder after the take, and those sales with two-way direct access would be superior
and require a downward ~idjustment of 5%.
-- The subject site remainder, after the take, will also be below street grade, resulting in the
possibility of some diminished visibility, primarily from westbound traffic, as well as the
-- necessity of a sloping driveway from the street to the parking area. Comparable Land Sale No.
4 is somewhat below grade. It is similar in many respects to Land Sale No. 3, but is considered
_ slightly inferior to Sale No. 3 because it is slightly below grade. Therefore, an additional 5%
adjustment would be appropriate to the comparable land sales to reflect a slightly increased
superiority to reflect the potential loss of visibility and the effect of a below street grade site
-- for the subject property remainder, after the take. Therefore, the concluded per square foot
land value from the previous analysis of the whole property would be reduced by a total of 10%
-- to $0.90/SF. Based on the land area after the take of 59,591 square feet, the estimated land
value of the remainder after the take would equate to $53,632.
After the taking, it is our opiniou that there is adequate parking and drive areas for vehicles
to access the property. Thus, the taking does not create additional functional obsolescence in
-- the improvements or in its relation to the parking area. Therefore, in the Cost Approach, the
contributory value of the improvements are unaffected by the taking.
-- 96.027 Price.Denton Inc.
Harrington - Sandy Lake Rd. 84 Valuation of Remainder After the Take
Therefore, the indicated value of the remainder after the take by the Cost approach is set forth
below.
-- Land $ 53,632
Improvements 68,483
-- Total $122,115
Rounded to: $122,000
Sales Comparison Approach
In the Sales Comparison Approach of the whole property, there is not a particular category in
the adjustment of the sales relevant in the initial analysis to reflect the impact of the taking on
the subject property. The value of the land has been estimated to be adversely affected by 10%
of the unit value before the taking, and the land represents approximately 50% of the total
-- value. This equates to an approximate 5% downward adjustment to the total property value.
The conclusion from the Sales Comparison Approach of $60.00/SF of the primary
-- improvements would therefore be adjusted downward by 5%, for an indicated value after the
take of $57.00/SF of the primary improvements.
2,048 SF x $57.00/SF = $116,736
-- Rounded to: $117,000
Conclusion
The foregoing analysis and conclusions of the value of the remainder after the take produced
-- value indications of $122,000 by the Cost Approach, and $117,000 by the Sales Comparison
Approach. Both indications of value are considered to be reasonably reliable and provide valid
-- indications of the value of the property. Therefore, it is our opinion that the market value of
the fee simple interest in the subject remainder, after the take, as of September 4, 1996 was:
ONE HUNDRED TWENTY THOUSAND DOLLARS
($120,000)
- Price.Denton Inc,
Harrington - Sandy Lake Rd. 85 Calcolation of Damages
_ CALCULATION OF DAMAGES
In this instance the acquisition of the right-of-way portion of the site is considered to cause
damage to the remainder, as the property is left with a smaller parking area, reduced
-- accessibility as a result of the construction of the street median in front of the site, and
constructing the roadway at a raised elevation of approximately five additional feet than the
_ current elevation. Therefore, the damages can be calculated as follows:
Value of Remainder before Take: $123,048
Value of Remainder after Take: $120,000
-- Damages to Property $ 3,048
_ Total compensation is summarized as follows:
Part Taken in Fee $4,952
Part Taken for Temporary Easement 1,228
Damages to Remainder 3,048
Total Estimated Compensation $9,228
96.027 Price. Denton Inc.
ADDENDA
Sandy Lake Road
Project No. 91-838
-- Parcel: 29 TE
May 21, 1996
TEMPORARY CONSTRUCTION EASEMENT
BEING 0.1410-acre tract of land located within the Weston Perry Survey, Abstract Number
1152, City of Coppell, Dallas County, Texas; the subject tract being a portion of a 38.1-acre
-- tract of land as described in Volume 3840, Page 185 Deed Records of Dallas County, Texas
(DRDCT) and a portion of a 1.4817-acre tract of land as conveyed from Pearl C. Harrington,
to James Albert Harrington as recorded in Volume 83077, Page 2161 (DRDCT), the subject
-- tract being part of the proposed construction for Sandy I.ake Road (variable width right-of-way,
Dallas County Project No. 91-838) and the subject tract of land being more particularly
described as follows:
COMMENCING at a found PK nail on the southwesterly most comer of a ll.62-acre and
northwesterly comer of a 3.9-acre tract of land conveyed to the City of Dallas as recorded in
-- Volume 540, Page 21 (DRDCT), and northeasterly comer of the aforementioned 38.1-acre and
1.4871-acre tracts, said point also lying 19.53 feet to the right of the proposed Sandy Lake Road
centerline station 69 + 14.85, said point also lying within the existing pavement of Sandy Lake
Road;
THENCE South 13' 14' 05" East, a distance of 40.72 feet along the common line of
aforementioned 3.9-acre and 1.4817-acre tracts to a 1/2" set iron rod with yellow plastic cap
stamped "HALFF ASSOC. INC." (hereafter referred to as with cap) to a point lying 60.00 feet
south of the proposed centerline of Sandy Lake Road for the POINT OF BEGINNING;
THENCE South 13' 14' 05" East, a distance of 29.28 feet continuing along said common line
_ to a 1/2" set iron rod with cap lying 89.10 feet south of said proposed centerline for comer;
THENCE South 80' 57' 06" West, a distance of 144.51 feet departing said common line to a
1/2" set iron rod with cap lying on the common line of said 1.4871-acre tract and a 7.316-acre
tract as described in Volume 76127, Page 2568 (DRDCT), for comer;
-- THENCE North 08' 44' 57" West, a distance of 51.44 feet along said common line to a 1/2"
set iron rod with cap lying on a curve to the left 45.00 feet south of said proposed centerline and
having a central angle of 00' 37' 43", a radius of 2545.00 feet and a chord bearing North 84'
-- 59' 14" East a chord distance 27.92 feet;
THENCE along said curve and continuing 45.00 feet south of said proposed centerline, an
-- arc distance of 27.92 feet to 1/2" set iron rod with cap for comer;
-- PAGE 1 OF 2 PARCEL 29 TE
THENCE South 05' 19' 37" East a distance of 15.00 feet to a 1/2" set iron rod with cap
_ lying 60.00 feet south of said proposed centerline for comer;
THENCE North 84' 35' 01" EaSt, a distance of 8.00 feet to a 1/2" set iron rod with cap
_ lying 60.00 feet of said proposed centerline for comer;
THENCE North 05' 30' 22" West, a distance of 15.00 feet to a 1/2" set iron rod with cap
-- lying 45.00 feet south of said proposed centerline and on a curve to the left having a central
angle of 01' 22' 04", a radius of 2545.00 feet and a chord bearing of North 83' 48' 36"
East a chord distance 60.76 feet;
THENCE along said curve continuing 45.00 feet south of said proposed centerline an arc
distance of 60.76 feet to a 1/2" set iron rod with cap for the point of tangency;
THENCE North 83' 07' 34" East, a distance of 14.24 feet continuing 45.00 feet south of
said proposed centerline to a 1/2" set iron rod with cap for comer;
THENCE South 06' 52' 26" East, a distance of 19.00 feet to a 1/2" set iron rod with cap
lying 64.00 feet south of said proposed centerline for comer;
THENCE North 83' 07' 34" East a distance of 7.00 feet continuing 64.00 feet south of said
proposed centerline to a 1/2" set iron rod with cap for comer;
THENCE North 06' 52' 26" West a distance of 4.00 feet to a 1/2" set iron rod with cap
_ lying 60.00 feet south of said proposed centerline for comer;
THENCE North 83' 07' 34" East a distance of 25.00 feet continuing 60.00 feet south of said
proposed centerline to the POINT OF BEGINNING and containing 6,140 square feet or
0.1410 acres of land more or less.
_ Note: Bearin~ system is rotated 00' 28' 51" seconds counterclockwise from plat boundary
of Carrollton Dam dated August 25, 1988 and prepared by the City of Dallas Water
Utilities.
Rau~on[[]Jr., P.E./_ ~R.P;L.S.
Texas Sure'eying Re/06tration Number 2958
-- PAGE 2 OF 2 PARCEL 29 TE
Sandy Lake Road
_ Project No. 91-838
Parcel: 29 ROW
May 21, 1996
RIGHT-OF-WAY DESCRIPTION
BEING 0. l137-acre tract of land located within the Weston Perry Survey, Abstract Number
1152, City of Coppell, Dallas County, Texas; the subject tract being a portion of a 38.1-acre
-- tract of land as described in Volume 3840, Page 185 Deed Records of Dallas County, Texas
(DRDCT) and a portion of a 1.4817-acre tract of land as conveyed from Pearl C. Harrington,
to James Albert Harrington as recorded in Volume 83077, Page 2161 (DRDCT), the subject
-- tract being part of the proposed right-of-way for Sandy Lake Road (variable width right-of-way,
Dallas County Project No. 91-838) and the subject tract of land being more particularly
described as follows:
BEGINNING at a found PK nail on the southwesterly most comer of a l l.62-acre and
_ northwesterly comer of a 3.9-acre tract of land conveyed to the City of Dallas as recorded in
Volume 540, Page 21 (DRDCT), and northeasterly comer of the aforementioned 38.1-acre and
1.4871-acre tracts, said point also lying 19.53 feet to the right of proposed Sandy Lake Road
centerline station 69 + 14.85, said point also lying within the existing pavement of Sandy Lake
Road;
THENCE South 13' 14' 05" East, a distance of 40.72 feet along the common line of
~-- aforementioned 3.9-acre and 1.4817-acre tracts to a 1/2" set iron rod with yellow plastic cap
stamped "HALFF ASSOC. INC." (hereafter referred to as with cap) to a point lying 60.00 feet
-- south of the proposed centerline of Sandy Lake Road for comer;
THENCE South 83' 07' 34" West, a distance of 25.00 feet departing said common line and
-- continuing 60.00 feet south of said proposed centerline to a 1/2" set iron rod with cap for
comer;
THENCE South 06' 52' 26" East, a distance of 4.00 feet to a point lying 64.00 feet south of
said proposed centerline to a 1/2" set iron rod with cap for comer;
- THENCE South 83' 07' 34" West, a distance of 7.00 feet continuing 64.00 feet south of said
proposed centerline to a 1/2" set iron rod with cap for comer;
-- THENCE North 06' 52' 26" West, a distance of 19.00 feet to a 1/2" set iron rod with cap lying
45.00 feet south of said proposed centerline for comer;
-- THENCE South 83' 07' 34" West, a distance of 14.24 feet continuing 45.00 feet south of said
proposed centerline to a 1/2" set iron rod with cap lying on a curve to the right having a central
-- PAGE 1 OF 2 PARCEL 29
angle of 01° 22' 04", a radius of 2545.00 feet and a chord bearing South 83' 48' 36" West a
-- chord distance 60.76 feet;
THENCE along said curve and Continuing 45.00 feet south of said proposed centerline, an
-- arc distance of 60.76 feet to 1/2" set iron rod with cap for comer;
THENCE South 05' 30' 22" East, a distance of 15.00 feet to a 1/2" set iron rod with cap
-- lying 60.00 feet south of said proposed centerline for comer;
THENCE South 84' 35' 01" West, a distance of 8.00 feet continuing to a 1/2" set iron rod
-- with cap lying 60.00 feet south said proposed centerline for comer;
THENCE North 05' 19' 37" West a distance of 15.00 feet to a 1/2" set iron rod with cap
-- lying 45.00 feet south of said proposed centerline and on a curve to the right having a central
angle of 00' 37' 43", a radius 2545.00 feet and a chord bearing of South 84' 59' 14" West a
chord distance of 27.92 feet;
THENCE along said curve continuing 45.00 feet south of said proposed centerline an arc-.
distance of 27.92 feet to a 1/2" set iron rod with cap lying on the common line of a 7.316-
-- acre tract as recorded in Volume 76127, Page 2568 (DRDCT) and the aforementioned
1.4817-acre tract;
-- THENCE North 08' 44' 57" West, a distance of 35.55 feet to a point lying within the
existing pavement of Sandy Lake Road for a comer;
~- THENCE North 87' 59' 56" East, a distance of 140.00 feet to the POINT OF BEGINNING
and containing 4,952 square feet or 0.1137 acres of land more or less;
Note: Bearing system is rotated 00' 28' 51" seconds counterclockwise from plat boundary
_ of Carrollton Dam dated August 25, 1988 and prepared by the City of Dallas Water
Utilities.
Texg~ SurOeying Regis~tion Number 2958
-- PARCEL 29
PAGE 2 OF 2
-- PROFESSIONAL QUALIFICATIONS OF
KATHLEEN PRICE WILKE, CRE, MAI
Kathleen Price Wilke, CRE, MAI, is President and Chief Executive Officer of Price · Denton Inc.,
a full-service commercial real estate counseling and valuation firm formed in 1974 and
headquartered in Dallas, Texas. Ms. Wilke has twenty-four years' experience in various aspects
-- of the commercial real estate industpy, including mortgage banking, development and appraising.
She has specialized in counseling and appraisal for the last seventeen years.
Price performs 100+ assignments annually for a select clientele, including banks, real estate
investment trusts, pension funds, developers, governmental agencies, foreign investment firms,
attorneys, accountants, non-real estate corporations and individuals. Ms. Wilke has appraised
virtually all types of income-producing properties, special purpose facilities, and urban land in
-- Texas and other regions of the country. The firm, under her supervision, has handled assignments
in some 43 states.
Ms. Wilke holds the CRE designation (Cert. No. 1560) of The Counselors of Real Estate, a by-
invitation organization of preeminent real estate professionals, and the MAI designation of the
Appraisal Institute (Cert. No. 5983). She is certified by the State of Texas as a General Real
Estate Appraiser (Cert. No. TX-1320438-G). She is founder and past president of the 250-member
-- Dallas CREW (Commercial Real Estate Women), and is a member of other business and civic
organizations, including The Real Estate Council (past board member) and Executive Women of
_ Dallas. She is currently on the Board of Directors of the North Texas Commercial Association of
Realtors and has been appointed to the CID Board of Governors of the Texas Association of
Realtors beginning january 1, 1997.
Ms. Wilke is the Recipient of the 1987 CREW Outstanding Achievement Award, awarded annually
-- to the member "who most exemplifies professionalism and whose performance and productivity in
the commercial real estate field are of the highest level". She has served the Appraisal Institute
_ as Assistant Regional Member for Review and Counseling, member of the Board of Directors,
1988 Vice President and 1989 President of North Texas Chapter #17.
Ms. Wilke testifies frequently in federal, state and lnunicipal court proceedings as an expert witness
in real estate matters, has been an instructor in real estate appraising for The Appraisal Institute
-- and Brookhaven Community College. She has served on the State of Texas Property Tax Board
Appeals Panel. With her husband, Dick Wilke, she also operates The Wilke Company, a retail real
_ estate consulting, asset management and development business.
-- PROFESSIONAL QUALIFICATIONS
CRAIG A. CHRISTENSEN, MAI
EXPERIENCE: Mr. Christensen has been a commercial real estate appraiser since 1985.
-- Prior to joining Price. Denton Inc. work experience included forming
Christensen Commercial Realty Services and was vice president in the
appraisal and consulting division of Grubb & Ellis, one of the largest full-
service real estate firms in the nation.
-- Assignments have included a variety of commercial appraisal and
consulting assignments and market studies including CBD and suburban
_ office buildings, apartments, office/warehouse, office/showroom, high-tech
manufacturing, hotels and motels, shopping centers, golf courses,
automobile dealerships, self-storage warehouses, cold storage facilities and
-- industrial, residential, and mixed use subdivisions.
_ These assignments have included fee simple, leased fee, leasehold, office
building condominium, and minority ownership interests.
-- Computer experience includes Pro-Ject, Argus, Hmward Graphics, Lotus,
Paradox, WordPerfect and various on-line database selMces.
PROFESSIONAL
AFFILIATIONS: Appraisal Institute - MAI #9479
Texas State Certified General Real Estate Appraiser TX-1322245-G
Texas Real Estate Commission Salesman License #382996-25
EDUCATION: Texas A & M University, College Station, Texas.
Bachelor of Business Administration in Finance, May 1985.
-- Primary coursework included real estate, finance, economics, computer
business analysis, investment analysis, and statistics.
_ Currently completed the requirements of the continuing education
program of the Appraisal Institute.
-- PARTIAL LIST OF CLIENTS
-- ATTORNEYS BANKING AND FINANCIAL
INSTITUTIONS
Akin, Gump, Strauss, Hauer & Feld
-- Gardere & Wynne Aetna Realty Advisors
Hosford & Tindall American Express
Jackson & Walker American National Insurance Company
-- Jenkens & Gilchrist Bank One
Locke Purnell Rain Harrell Bank of Boston
_ Thompson & Knight Chase Manhattan Bank
Winstead Secrest & Minick Draper and Kramer
First Interstate Bank of Texas
Household International
ACCOUNTING FIRMS JMB Realty
NationsBank
_ Arthur Andersen & Company PERA
Coopers & Lybrand Principal Financial
Ernst & Young/Kenneth Leventhal Prudential Insurance Company of America
_ Price Waterhouse
Touche Ross & Company
GOVERNMENTAL AGENCIES/OTHER
CORPORATE CLIENTS City of Dallas
City of Grand Prairie
-- Allstate Insurance County of Dallas
A. H. Belo Corporation Dallas Area Rapid Transit
Austin Industries, Inc. Dallas Independent School District
-- Baylor University Medical Center Texas Department of Transportation
Bramalea Texas Department of the Navy
Camden Property Trust FDIC
-- Club Corporation of America General Services Administration
Convex Computers Government of Singapore
Fina Oil and Chemical Company Internal Revenue Service
- Home Interiors and Gifts Texas Turnpike Authority
Hitachi U.S.A. U.S. Justice Department
Lawyers Title U.S. Postal Services
-- Lone Star Gas Company University of Texas at Dallas
Lone Star Properties
Motorola Inc.
-- Property Reserve, Inc.
Rainwater, Inc.
Southwestern Bell
Texaco
U.S. Steel Corporation