IIrI REAL ESTATE APPRAISAL OF Midway Road at Lindberg Drive -Parcell Southeast Corner ofMidway Road and Lindberg Drive Dallas County Town of Addison, Texas 75244 PREPARED FOR: Contract
Land Staff, Inc. Attention: Mr. Leon Boone 800 West Airport Freeway, Suite 420 Irving, Texas 􀀷􀀵􀀰􀁇􀁾 I: LOCAL EXPERTISE.. .NATIONALLY EFFECTIVE DATE OF THE APPRAISAL: October 31,
2000 INTEGRA REALTY RESOURCES DFW FILE NUMBER: 2000C-0575F-Parce11
DALLAS COUNTY DEPARTMENT OF PUBLIC WORKS APPRAISAL REPORT Project No: Midway Road at Lindberg Drive Parcel No.: 1 [ . I! Location: SEC ofMidway Rd and Lindberg Dr., Addison, TX Whole
Acquisition _ Partial Acquisition X Property Owner: Gilford Joint Venture Address: 8411 Preston Rd, #650, Dallas, TX 75225-5523 Occupant's Name: Eagle Supply Address: 15200 Midway Road,
Addison, TX PURPOSE OF THE APPRAISAL The purpose of this appraisal report is to estimate the market value of the fee simple title encumbered by existing easements, if any, which are
not to be extinguished in the purchase of the fee of the subject property. MARKET VALUE Market Value may be defined as follows: 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 ofbuying, taking into consideration all ofthe uses to which it
is reasonably adaptable and for which it either is or, in all reasonable probability, will become available within the reasonable future. AFFIDAVIT OF APPRAISER I have personally inspected
the property herein appraised and to the best ofmy knowledge and belief the statements contained in the appraisal hereinabove set forth are true, and the information upon which the opinions
expressed therein are based is correct. I have no direct or indirect present or contemplated future personal interest in such property or in any benefit from the acquisition of such
property appraised and should I or any employee in my service acquire any interest in or to the property appraised prior tothe acquisition ofthe parcel by the County, I will immediately
notifY the County of such interest or interests; I have not revealed and will not reveal the findings and results of such appraisal to anyone other than the proper officials ofthe County
of Dallas until authorized by County officials to do so or until I am required to do so by due process oflaw or until I am released from this obligation by having publicly testified
as to such findings. My opinion of the fair market value of the acquisition plus damages, if any, as of the 31th day of October, 2000 is $ 1,538 based upon my independent appraisal and
the exercise ofmy professional judgment. THE STATE OF TEXAS)) COUNTY OF DALLAS ) 􀁆􀁊􀀭􀁲􀀧􀁒􀀺􀁃􀁩􀀡􀁾 MURPHY ::;􀀺􀀬􀀧􀀻􀁾􀀧 􀂷􀀮􀁪􀀯􀁾􀁾􀁬􀀡􀀻􀁾􀁴􀀬􀁓 􀁜􀀺􀁾􀁜􀀧 􀁾􀀺􀁕􀀺􀁔􀀧􀀺􀀧􀁮
􀁾􀂷􀀮􀀯􀀮􀀩􀁬􀁲􀁾􀁳 0/􀀬􀀿􀁾 :' .. II' II r -i BEFORE ME, the undersigned authority, in and for Dallas County, Texas, on this day personally appeared DONALD J. SHERWOOD, known to me
to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purpose and consideration therein expressed. 􀀮􀀯􀁾 ,.ty
􀀮􀁾 GIVEN UNDER MY HAND AND SEAL OF OFFICE, This lP=---day of 􀀮􀁾 􀁏􀁾 Notary Public, Dallas C My Commission Expires
II [: SUMMARY & DETERMINATION OF COMPENSATION Parcel #: I Project Name Midway Road at Lindberg Drive Location or Address SEC ofMidway Road at Lindberg Drive, Addison, Dallas County,
TX Character of Acquisition: Whole [ ] Bisection I [] Partial [x] Bisection 11 [ ] Owner Gilford Joint Venture Address 8411 Preston Rd, #650, Dallas, TX 75225-5523 Telephone WHOLE PROPERTY
(from 3-1) AREA ACQUIRED (from 4-1) Area 3.26 Acres, 142,005 Square Feet Area 197 SF (Fee) Value from Information on Whole [x] Highest & Best Use CommercialJIndustrial Value Determined
Independently [ ] Highest & Best Use As Part OfWhole Value by Market Data $1,065,038 Improvements: Value by Cost Approach $ N/A Landscaping $--.2Q Value by Income Approach $ N/A $$ FINAL
VALUE CONCLUSION $1,065,038 (Land Only) TOTAL IMPROVEMENTS $--.2Q Land Fee $ 1,478 Permanent Easement $__0 Temporary Easement $__0 REMAINDER AFTER ACQUISITION (Page 6-1) TOTAL LAND $
1,478 Area 3.256 Acres, 141,808 Square Feet TOTAL ACQUISITION VALUE $1,538 Highest & Best Use Commercial/Industrial REMAINDER BEFORE ACQUISITION (CALC.) Value by Market Data $ 1,063,560
Value by Cost Approach $ N/A Value ofWhole $1,065,038 Value by Income Approach $ N/A LAND Value of Area Acquired $ 1,478 (Land Only) LAND Value of Remainder $1,063,560 FINAL VALUE CONCLUSION
$ 1,063,560 DETERMINATION OF COMPENSATION Value ofArea Acquired (Land 􀁯􀁮􀁬􀁹􀀩􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀁾􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭�
�􀀭􀀭􀀭􀀭􀀭􀀭􀀭 $ 1,478 Value of Remainder Before Acquisition $1,063,560 Value of Remainder After Acquisition $1,063,560 Damages (or Enhancement)------------------------------------------------------
------------------------$__0 Temporary Easement ----------------------------------------------------------------------------------$__0 Permanent Easement ---------------------------------------------
--------------------------------------$__0 Improvements within ACQUISITION AREA ------------------------------------------------------$-----.2Q TOTAL COMPENSATI0 N------------------------------------
----------------------------------------$ 1,538 1-1
rel LEGAL DESCRIPTION OF THE SUBJECT PROPERTY The subject property is legally described as Lot 1 and part of Lot 2, Block D, Addison Airport Industrial District ofthe Town of Addison,
Dallas County, Texas. PROPERTY RIGHTS APPRAISED The property rights being appraised consist of a fee simple estate and/or an easement in the subject property. Fee simple estate is defined
in The Dictionary of Real Estate Appraisal, Third Edition, copyright 1993, page 140, by the Appraisal Institute as being: "Absolute ownership unencumbered by any other interest or estate,
subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat." An easement is defined in The Dictionary of Real Estate Appraisal,
Third Edition, copyright 1993, page 110, by the Appraisal Institute as being: "An interest in property that conveys use, but not ownership of a portion of an owner's property. Access
or right-of-way easements may be acquired by private parties or public utilities." INTENDED USE OF THE REPORT The intended use of this report is to provide an estimate of market value
of the subject property and total compensation due to the owner. The intended user is Dallas County to assist in the acquisition ofright-of-way for a public purpose. Any other use ofthis
report is not authorized. SCOPE OF THE APPRAISAL i-I The scope of the appraisal means the extent of the process of collecting, confirming and reporting data. An estimate of the total
compensation due to the owner of the property as the result of a proposed acquisition from the property is prepared. This will require an appraisal of the Whole Property, the Area Acquired
and the value of the Remainder Before and After the Acquisition. The process included collecting data and information concerning the subject property and an inspection ofthe property.
The appraiser has examined public records including plat and map records such as zoning maps, ordinances, and flood plain data. Upon determination of the subject's Highest and Best Use,
the appraiser has researched public records for recent sales of comparable properties. Factual data collected on the comparable sales included characteristics of the site and improvements,
if any, consideration of the sale price given, extent of financing made available, if any, and dates of sale. 1-2
II II􀁾􀀮 Where applicable, the appraiser has also examined and researched rental rates and expenses in the development of the Income Approach. Where applicable, the Cost Approach has
been developed through the Marshall and Swift Cost Calculator Service, file data and/or interviews with developerslbuilders/contractors. This information has been analyzed and is presented
in the following report. JURISDICTIONAL EXCEPTION This appraisal is intended to conform to the requirements of the USPAP. Jurisdictional exception provides for severability preserving
the balance of USPAP if one or more parts of USPAP are contrary to law or public policy of a jurisdiction. According to USPAP, law means a body of rules with binding legal force established
by controlling governmental authority. This includes federal and state constitutions, legislative and court made law, administrative rules, regulations and ordinances. As appraisals
performed for eminent domain are subject to certain constraints based on statutory and case law regarding compensability, the issue of jurisdictional exception has been invoked in the
preparation of this appraisal and report. DATE OF VALUE ESTIMATE The effective date of this appraisal is the date of the last inspection, October 31, 2000. The date ofthe report is the
date of the signature on the first page of this report. EXPOSURE PERIOD A reasonable exposure period for the subject property is considered to be within twelve months, approaching a
value, and highest and best use, as stated herein. REPORT TYPE Due to the jurisdictional exception granted to governmental agencies with the power of eminent domain, such as Dallas County,
some of the traditional requirements of USPAP are not applicable. As required by Dallas County, standardized forms have been completed and are included herein, along with supplemental
comments when appropriate. In accordance with the USPAP, the appraisal of the subject property is reported in the following text as a summary appraisal report. As such, it represents
a summary summary discussion of the data, reasoning and analyses that were utilized in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning
the data, reasoning and analyses is retained in the appraiser's file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use
stated previously. The appraiser is not responsible for unauthorized use of this report. 1-3
IIIIII \. HISTORY OF SUBJECT PROPERTY The Standards of Professional Appraisal Practice requires full disclosure of any sales or property transfers with the previous three years of the
date of value. A review of public records indicates that ownership of the subject property is currently vested in Gilford Joint Venture. According to deed records, the ownership in the
subject has been vested in Gilford Joint Venture for over three years. The appraisers are not aware of any existing contracts or pending sales on the subject property, nor does it appear
to be listed for sale. ENVIRONMENTAL DISCLAIMER The value estimated in this report is based on the assumption that the property is not negatively affected by the existence of hazardous
substances or detrimental environmental conditions. The appraiser's routine inspection of and inquiries about the subject property did not develop any information that indicated any
apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively. It is possible that tests and inspections made by a qualified
hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its
value. DEFINITION OF MARKET VALUE Market Value is defined by City of Austin v. Cannizzo, 267 S.W. 2d 808 (Tex 1954) as being: "The price the property would bring when offered for sale
by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying, taking into consideration all of the uses to which
it is reasonably adaptable and for which it either is, or in all reasonable probability, will become available within the reasonable future. INSPECTION INFORMATION The subject property
owner, Gilford Joint Venture was notified by certified mail on September 27, 2000. As of the effective date of this appraisal, the property owner has not contacted the appraisers. On
Tuesday, October 31, 2000, Ted Brooks, MAl inspected the subject property. A prior inspection was conducted on October 16, 2000, by Donald J. Sherwood, MAL 1-4
1-5 􀀭􀀫􀀺􀀺􀀱􀀮􀁾􀀱 Slough +Patrick'ooi'
Il·.. ,, (I1I AREA AND NEIGHBORHOOD ANALYSIS LOCATION The subject IS located in the northwest portion of Dallas County, in a submarket area encompassing portions of the Cities of Farmers
Branch, Carrollton, Addison and Dallas. It is part of an older, established mixed-use neighborhood, generally bound by Trinity Mills Road to the north, Dallas North Tollway to the east,
IH-635 (LBJ Freeway) to the south, and Marsh Lane to the west. Stemmons Freeway (IH-35E) is located about two miles west of the subject neighborhood, and Central Expressway (US Highway
75) is situated approximately three miles to the east. North: Trinity Mills Road East: Dallas North Tollway South: IH-635 (LBJ Freeway) West: Marsh Lane ACCESS The subject neighborhood
has excellent access provided by the bounding roadways as well as Alpha Road, Spring Valley Road, Belt Line Road, Inwood Road!Addison Road and a number of smaller collector streets and
feeder streets. Arterials are typically concrete paved or asphalt paved, with concrete curb and gutters. Most streets ani on a north-south/east-west axis.. The subject has ingress/egress
and exposure from Midway Road. Midway Road extends northerly from the Love Field Airport, through North Dallas and Plano to a point just south ofSH-121 and the Frisco city limits. Keller
Springs Road, a nearby traffic carrier, extends from Campbell Road in northern Dallas near Preston Road westward through Dallas, Addison, Carrollton, Coppell and Grapevine before ending
at the Tarrant County/Dallas County line. Along the way, the street name changes from Keller Springs to Whitlock Lane in Carrollton to Sandy Lake Road in Coppell. In the subject locale,
both of these streets are considered major thoroughfares bisecting the neighborhood. Dallas Area Rapid Transit, more commonly known as DART, fully services the subject neighborhood.
The Addison Transit Center, located just south of Addison Airport at the comer of Quorum Drive and Arapaho Road, has recently been completed. This fully staffed transportation center
has a 205-space parking lot and is an important link to 16 bus routes as well as numerous trolley and rail routes. DEMOGRAPHIC FACTORS For a more in depth perspective on the subject
neighborhood, we consulted Market Profile Reports, prepared by Claritas Services. The Market Profile Report contains a comprehensive list of demographic information based on 1990 Census
data updated to reflect 2000 estimates and 1-6
III 2005 projections. The Market Profile Report IS categorized by three geographic areas, delineated, as follows: I· Area 1: Area 2: Area 3: 1 Mile radius from Belt Line Road/Midway
Road 2 Mile radius from Belt Line Road/Midway Road 3 Mile radius from Belt Line Road/Midway Road l.IL IIlII ,,, '? " '" \",P()PUt..A'nONAND HOUSEHOLDS", »),,). :',"",,'.,, :,;,//"•.,",
"," , -'" Area 1 Area 2 Area 3 2005 Population 6,437 127,850 158,921 2000 Population 5,678 116,941 141,222 1990 Population 3,864 96,335 114,523 % Growth 1990-2000 46.9% 21.4% 23.3% 2005
Households 3,601 61,887 158,921 2000 Households 3,154 55,887 141,222 1990 Households 2,139 45,205 114,523 As indicated, all areas are each projected to have a moderate population growth
from 2000 to 2005. In addition to the above information, the Market Profile Report indicates that the median age of the population in the areas is 37.1, 35.8 and 35.7 years, respectively.
About 17% of the population within Area 1 owns their housing, while about 75% represents rental rental occupied property. The indicated average household incomes for 2000 in the areas
averages $74,499, $89,712, and $97,738, respectively. DEVELOPMENT Developed properties within the defined area are primarily improved with a mix of residential, commercial and light
industrial land uses. At the center of the subject neighborhood is the Addison Airport, a small regional facility which provides full service for both commercial and private use. It
is the third largest general aviation airport in the US. Brookhaven College is located in the southwestern quadrant of the defined neighborhood. Along the eastern side of Dallas North
Tollway, the specified eastern neighborhood boundary, lies both the Galleria shopping mall and the Prestonwood Town Center mall. Along the freeways which bound the eastern and southern
portions ofthe neighborhood are numerous Class-A office buildings. The neighborhood is presently approximately 90% built out. Improved properties are primarily commercial in nature,
with pockets of residential in the western and southwestern portions. Public parks and athletic complexes are located throughout the neighborhood. In the area surrounding Brookhaven
College are apartment complexes. Most major thoroughfare corridors are developed with service commercial and retail land uses. The areas nearest the Addison Airport contain a typically
heavy concentration of industrial uses. 1-7
IIl" iI" II The subject area is characterized as being stable, with a modest supply of land available for future development. Recent construction includes development of the Addison
Circle urban district, which is an office/retail/apartment development with over 400,000 square feet in commercial space and 3,500 housing units. The three-phase Millennium office development
will contain 1,000,000 square feet when it is completed. Predominate Age of Improvements 2 to 30 Years Predominate Quality and Condition Average to good Approximate Percent Developed
90% Percent Developed as Single-Family 25% Prevailing Single-Family Price Range $100,000 to $400,000 Life Cycle Stage Stable Infrastructure/Planning Good Predominate Location of Undeveloped
Land Intermittently throughout Prevailing Direction of Growth In-fill Immediate Surrounding Land Use North: Residential/Commercial (Adjacent Neighborhood Characteristics) South: Commercial/Residentia
l East: Commercial West: Residential/Commercial UTILITIES Electricity is supplied to area by TXU Electric, natural gas is supplied by TXU Gas Company, telephone service is provided by
Southwestern Bell Telephone Company, and municipal water and sanitary sewer are provided by the Cities of Carrollton and Farmers Branch, and the Town of Addison. According to municipal
offices, all utilities are available in sufficient quantity and quality to allow typical development ofproperties in the subject neighborhood. EDUCATION The Carrollton Farmers Branch
Independent School District (CFB ISD) and the Dallas Independent School District (DISD) both serve the entire subject neighborhood, with students attending assigned campuses. Both are
competitive school districts offering good quality public education in modem facilities. Within Dallas County, college education is available through Dallas Community College (including
Brookhaven in the subject neighborhood), University of Texas at Dallas, University ofTexas Southwest Medical Center and School, University of Dallas, Southern Methodist University, Dallas
Baptist University, Paul Quinn College, Texas A&M University Research and Extension Center and Dallas Christian College. This network of education opportunities provides a rich pool
of qualified employees for potential employers in the Dallas/Fort Worth Metroplex. Many relocation decisions by major manufacturers and employers have been based, in part, on the ample
supply of qualified employees in the Dallas County area. 1-8
III II. II.·.. II· CONCLUSION The subject neighborhood is a vital economic and business center, and is considerably more than a typical suburban bedroom community to the Greater Dallas
area. This is evidenced by significant amount of office, an4 retail development along major thoroughfares, and the heavy concentration of industrial businesses around Addison Airport.
Extensive new construction is taking place in the northeastern quadrant of the neighborhood and is expected to generate renewed interest throughout the greater North Dallas region. 1-9
NEIGHBORHOOD LOCATION MAP 1-10
PHOTOGRAPHSOFSURJECTPROPERTY Include Each Major Improvement Parcel No.:__---' Local Address: SEC Midway & Lindberg Drive Date Taken: 10/31/2000 Taken By: Fee Appraiser 1. Point from
which taken: Midway Road Looking: Southeast at subject 2. Point from which taken: Lindberg Drive Looking:__---'E""a""s"'-t""a""]o"'-n""g.../p.!..!.r""0-l!-p"'os",e"'dC..jp""r""'o"-'p""er""t,J...y...!
.l'-!.in"",e 1-11
PHOTOGRAPHS OF SUBJECT PROPERTY Include Each Major Improvement Parcel No.:__----'-Local Address: SEC Midway &Lindberg Drive Date Taken: 1013112000 TakcnBy: FecAppraiser 3. Point from
which taken: Midway Road Looking: North along proposed property line 1-12
II!. WHOLE SITE ANALYSIS LOCATION The subject site is located just north of Belt Line Road at the southeast comer of Midway Road and Lindberg Drive. The north property line fronts on
Lindberg Drive and the west property line fronts on Midway Road. In addition, the south property line fronts on the DART rail line. The I subject has a physical address of 15200 Midway
Road, Addison, Texas 75001. i1-LEGAL DESCRIPTION Ii Lot 1 and part of Lot 2, Block D, Addison Airport Industrial District of the Town of Addison, 1_ Dallas County, Texas. ACCESS Access
to the subject site is good via Midway Road, which is a primary north/south traffic artery leading from LBJ Freeway through the neighborhood. Lindberg Drive is considered to be a secondary
roadway. Midway Road is an asphalt paved, four-lane street with curb and gutters. Lindberg Drive is a two lane, asphalt paved street that is considered to be a secondary access road.
PHYSICAL CHARACTERISTICS III I.• Size Shape Frontage Topography Approximately 3.260 Acres, or 142,005 square feet per Dallas County Appraisal District Records. Near-rectangular characteristics.
Approximately 445' along the east side of Midway Road Approximately 262' along the south side of Lindberg Drive Basically level to sloping II II A survey of the whole site was not provided.
The dimensions were taken from a county plat map. The site's shape is functional with adequate frontage for access. OVERALL ACCESSIEXPOSURE The overall access/exposure of the subject
is considered good. The frontage exhibited by the subject allows for adequate ingress/egress to and from the subject site. 2-1
I· FLOOD PLAIN STATUS Drainage appears to be adequate, as the subject is slightly above street grade of the surrounding roads, which appear well drained by gutters along the frontage.
According to FEMA map number 4801670015 F, revised June 4, 1996, the subject does not appear to be located within any flood zoneS. It should be noted that the National Flood Insurance
Program does not indicate whether or not a property will flood, instead it indicates possible effects a certain tributary has to a particular property. Other types of flooding could
occur. It is recommended that a qualified engineer be consulted to determine the effects from any and all sources of flooding of the subject property should the reader or client deem
necessary. I, . UTILITIES Electricity Water Sewer Gas Telephone TXU Electric City ofAddison City ofAddison TXUGas Southwestern Bell Telephone rIt .. , !l !I ZONING The subject is presently
zoned "I-I", Industrial District. This district provides for industrial uses and includes most uses allowed in the commercial districts. Permitted uses include most industrial uses such
as office/warehouses and office/tech buildings. The following table summarizes basic requirements of the zoning classification: Minimum Lot Area N/A Minimum lot Width N/A Minimum front
yard 25 feet, except where variances or exceptions are granted Minimum rear yard 10 feet if adjacent to residential, otherwise 0 feet. Minimum side yard 25 feet for a corner lot. Maximum
building height Six stories SCHOOL DISTRICT Dallas Independent School District. EASEMENTSIENCROACHMENTS No survey of the whole site was provided. However, overhead utility lines are
present along the frontage portions of the site. Markers for underground telephone lines and natural gas lines are also present in this area. These encumbrances are considered typical
and do not hinder the use or development ofthe subject site. No other adverse easements or encroachments were noticeable. 2-2
r, i _ I . \ SURROUNDING LAND USES The surrounding area is generally comprised of mixed commercial or industrial uses. Specific uses surrounding the subject site include office/tech
and industrial buildings on all sides VEGETATION The subject property contains several trees and shrubs on the site. The unimproved area of the subject contains native grass vegetation.
SITE SUMMARY The subject site is a near rectangular shaped tract of land, located at the southeast comer of Midway Road and Lindberg Drive. The site contains approximately 142,005 square
feet, or 3.260 acres. It has availability to municipal utilities and the access of the site is considered good. The topography of the site is generally level and is about grade level
of Midway Road. According to current flood plain maps for the subject property, it does not appear to be located in a flood hazard area. Overall, the subject property is well suited
for legally permissible development based on the size of the parcel and good physical features. 2-3
.' •• , '. " » • ., .. .., • •0".· J, ... .-'.<Ij 􀁾􀀬􀀧􀀭􀀬􀁉􀀢 .:"' . . .'. • 􀁾􀀭􀀪 , 􀁾 :.. ...lIi.,,'!I'''' .." . ·iII·it, • .-" ,. • , .. " ., ..,j • Ii ... 􀁾 '.. "....... t·
,,<it ••. .' ... " 􀁾 -. 􀁾􀀬 ;>. 􀁾 •., . .. .. ... ",-Of ..., ..# " ..... 􀀬􀁾 ., '. .It .. _ 􀁾 iii .. to II <',;_• ;0 , "'_ "... .. •• j-t.-• t I .' '* 􀁾 • .. '" -.-" " ... ,; ..
• .. ., .f • if I L ltJ ',J -',,:.::. ,," C) () C1" ..5T LOlJIS PLATMAP 2-4
sr lOUiS ;,r-II FLOOD PLAIN MAP 2-5
ZONING MAP 2-6
IMPROVEMENT ANALYSIS The subject property is currently improved with an office/warehouse building that was originally constructed in 1971. The building contains approximately 30,240
square feet, with a brick veneer exterior, built up tar and gravel roof, and concrete slab foundation. Other site improvements include a concrete parking area and landscaped areas that
include shrubs, trees, sprinkler system, signage, lighting and grassy areas. As per the client's request, the major building improvements have not been included in the this analysis,
therefore this report is considered to be a limited appraisal. ASSESSMENT AND TAXES The subject property is situated within the taxing jurisdictions of the Dallas Independent School
District, the Town of Addison and Dallas County. According to Dallas County tax records, the following proposed 2000 assessments have been applied to the subject: Account # 10009096090000000
Address 15200 Midway Rd. Improvement SF 30,240 2000 Assessment $990,710 The 2000 tax rates per $100 100 of assessed value for the involved taxing jurisdictions are as follows: Town of
Addison $0.3846000 Dallas Independent School District $1.4605300 Dallas County $0.4476990 Total $2.2928290 Using the 2000 tax rate, the estimated liability for the year can be calculated
as follows: $990,710 x $0.02292829 = $22,715 The subjects tax records show that the 2000 assessment is slightly higher than the 1999 assessment. Prior to the present assessment, the
subject had a total assessment $834,400 in 1999. According to the tax assessor's office, all real estate taxes are current and paid for the subject property as of the date of inspection.
2-7
H1GHEST 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 va1ue.,,1 To have value, a site must have utility that is in demand by prospective purchasers, with utility being defmed
as net income or amenities derived from ownership of the property. The location of the tract, neighborhood characteristics and current market needs and demands set forth the site's highest
and best use. Other considerations that must be weighed in the analysis are the existing zoning ordinances, deed restrictions, topography, shape and size of the tract. To estimate highest
and best use, four elements are considered:Physically Possible Use, Legally Permissible Use, Financially Feasible Use and Maximally Productive Use. ANALYSIS OF SITE "As VACANT" PHYSICALLY POSSIBLE Many physical characteristics
of a site can affect the uses to which it can be put. These characteristics can include size, location, shape, road frontage, topography, easements, utility availability, flood plain,
and surrounding properties. The subject site consists of 3.260 acres or 142,005 square feet of land. Because of the limited land size, large-scale developments would be restricted. As
previously mentioned, an overhead utility and underground telephone easement is present along the frontage portion of the site. The location of the easements is typical and does not
have an adverse affect on the utility of the site. According to the Flood Insurance Rate Maps, the subject property does not lie within any identified flood hazard areas. LEGALLY PERMISSIBLE
Except for legally non-conforming property, the first step in determining what is legally permissible is to analyze private restrictions, zoning, building codes, historic district controls,
and environmental regulations. The subject is located in the Town of Addison and is subject to zoning restrictions. The subj ect is present!y y zoned "1-1", Industrial District. Permitted
uses include most industrial uses including office/warehouse, office/tech buildings and some commercial uses. Some form of industrial or commercial I The Dictionary of Real Estate Appraisal,
Third Edition, American Institute of Real Estate Appraisers, Chicago, Illinois, 1989,p. 171. 2-8
development would be legally pennissible and would have the greatest possibility of being economically viable. FINANCIALLY FEASIBLE The uses that are physically possible and legally
pennissible must be analyzed further to detennine those that are likely to produce some income or return greater than the combined income needed to satisfy operating expenses, financial
expenses, and capital amortization. All uses that are expected to produce a positive return are regarded as financially feasible. As mentioned in the neighborhood analysis, the subject
trade area is considered stable at present. It has been recognized that the majority of existing structures in the subject neighborhood were constructed between the 1970's to 1990's.
The recent construction boom experienced in other areas of the Dallas/Fort Worth Metroplex has eluded most of the immediate area, indicating a maturity of the market. Current rental
rates for commercial properties in the subject neighborhood are generally found to be similar to rental rates paid in surrounding markets. This illustrates sufficient demand at the present
time for the construction of new income-producing properties. The most recent developments in the subject vicinity have involved fast food restaurants, a self-storage facility, and several
owner-occupied industrial buildings. The preponderance of financially feasible developments targeted for the subject market area are owner-occupant or build-to-suit type facilities.
MAxIMALLY PRODUCTIVE Among financially feasible uses, the use that provides the highest rate of return or value (given a constant rate of return), is the highest and best use. Based
upon the previous discussion regarding the physical, legal and financially feasible aspects of the subject site, it has been noted that uses of the subject neighborhood are predominately
commercial and industrial. Given current development in the neighborhood and the present zoning, it would appear the most maximally productive use for the subject, as if vacant, would
be for an industrial or commercial use with an owner-occupant type facility. 2-9
VALUE OF WHOLE PROPERTY Correlation of Approaches to Value: Income Approach $ N/A Cost Approach......................... $ N/A Market Data Approach (Land Only)....... $1,065,038 Discussion:
The Market Data Approach is considered the only appropriate method of valuation and indicates that the value of the subject site is $7.50 per square foot which equates to $1,065,038
for the 142,005 square foot Whole Property. Estimated Land Value of the Whole Property $1,065,038 BREAKDOWN FOR COMPUTATION PURPOSES: Improvements: $$$$$$ Total Improvements Land: Fee
142,005 SF @$ 7.50/SF = $1,065,038 Total Land Value, Whole Property 3-1 $ N/A $1,065,038
COMPARABLE SALES SUMMARY SALE SALES LOCATION DATE PRICE SIZE ZONING SUBJECT SEC Midway & Lindberg N/A N/A 142,005 SF LI Drive, Carrollton, TX 3.26 Acres SALEl SEC Golden Bear & 04/00
$ 5.39/SF 237,533 SF I Belmeade, Carrollton, TX 5.453 Acres SALE 2 16500 Midway Road, 01/00 $ 8.05/SF 58,414 SF 1-3 Addison, TX 1.341 Acres SALE 3 NWC Chenault & Earhart 07/98 $ 4.56/SF
93,175 SF PD Carrollton, TX 2.139 Acres SALE 4 E/S Addison Road, S of 07/98 $lO.Ol/SF 68,825 SF PD Arapaho, Addison, TX 1.58 Acres The adjustments, discussed on page 3-12 ofthis report,
were made to compare each sale to the subject site and are summarized below. VALUATION GRID Represent aflye Comparahie SaIes Subject Comp No.1 Comp No.2 Comp No.3 CompNo.4 Grantor -Trinity
Mills... Maylar, LP Gruen, Ronald.. Daryl Snadon Grantee -Pacific Addax... Sixteen Thous.. Today Keller... Rail Hotels... Date of Sale -4/3/2000 1/31/2000 7/30/1998 7/1/1998 Relative
Location 15200 Midway Road Golden Bear 16500 Midway Chenault Drive Addison Road Unit Price Per SF $5.39 $8.05 $4.56 $10.01 Financing Market Condition of Sale Market Date of Sale October
2000 0% 0% +10% +10% Adjusted Price $5.39 $8.05 $5.02 $11.01 Location +15% +15% -10% Physical Characters +5% +5% Size 142,005 SF -10% -10% -10% Utilities All available Zoning Indicated
Unit Value $6.20 $7.65 $5.27 $9.36 Est. Unit Value -Fee $7.50/SF 142,005 SF .............................................. $1,065,038 Estimated value per square foot for the subject
site is $7.50/SF or $1,065,038 for the 142,005 square foot site. 3-2
Unit Price as Vacant $ 5.39 per square foot Type Utilities Water, Sewer, Electric, Phone ROW Account _ Parcel No.__----'--1 _ Highway __-----"M"-'i""dw!'-!a"-'y....R. ""o""ad"--_ County
---'D"..a"'l.l.a..s"--_ COMPARABLE DATA SUPPLEMENT Land Sale__􀀭􀀭􀀧􀁏􀀧􀀭􀀧􀁬􀁾􀁟􀁉􀁭􀁰􀁲􀁯􀁶􀁥􀁤Sale .Rental Data. _ See Attached PHOTOGRAPH & MAP Grantor/Lessor Trinity Mills Midway
Partners Grantee/Lessee Pacific Addax Company, Inc. Date 4/3/2000 Recording Information DOC 2000065/6298 Key Map 4-J (Dallas) Legal Description Lot 4, Block 4, Texas Highlands Addition,
Carrollton, Dallas County, Texas Confirmed Price $ 1,280,000 Verified with Stewart Smith, Broker (972-713-4787) Terms and Conditions of Sale Arm's length, Cash to seller Rental Data__.o..;N"-'/A"-"--
_ Land Size 237,533 square feet or 5.453 acres Type Street Golden Bear 2-1ane, concrete paved Improvement(s) Description __􀁎􀁾􀀯􀁁􀀢􀀭􀀢􀀭􀀭 _ Improvement(s) Size N/A (GBA) 􀁾􀁎􀁾􀀯􀀮􀀮􀀡􀀮􀀮􀀮􀀲􀁁�
�􀀭􀀭􀀭􀀭__(NRA) Unit Price as Improved $ ""N""/A'-"----_ Condition Condition and Functional Design 􀁾􀁎􀀬􀀭􀀭􀀬􀀭􀀬􀀭􀀬􀀯A-"-_ Current Use vacant land Highest & Best 􀁕􀁳􀁥􀁟􀁾􀁃􀀢􀀢􀁯􀀢􀀢􀁭􀁭􀀽􀁥􀀢
􀀢􀁲􀁟􀀢􀀧􀁣􀁾􀁩􀁡􀀺􀀮􀀺􀀮􀀮􀀮􀁉 _ Date ofInspection 11/10/2000 Zoning I Flood 􀁐􀁬􀁡􀁩􀁮􀀬􀁾􀁚􀀢􀀢􀁯􀀢􀀢􀁮􀀢􀀢􀁥􀁾􀁘􀁾 _ Attach Additional Information This parcel is located at the
southeast comer of Golden Bear Court and Belmeade Drive. The site was purchased for future industrial development. This information was obtained from a broker involved in the transaction.
Il Appraiser Donald J. Sherwood (Typed, not signed) 3-3 11/10/2000 Date
" 􀁐􀁾',-':lC' 􀁾􀀻􀀮􀁕􀁩􀀮􀀮􀀺􀀢􀀧􀁬􀀻􀀡􀀬􀁐􀀨 􀀺􀁴􀁦􀁾􀁙􀁻􀁟􀀢􀁔 􀁾􀀬 􀁉􀀢􀁖􀀧􀀻􀁾 IIQ': _., 􀁴􀀮􀀮􀁾 􀁾􀀧􀀭􀀮􀀻􀀡􀁁􀀺􀀧􀀺􀁾􀀧 I'Ir 􀁾􀁮􀁦􀁲􀀧􀁩􀁩􀁲􀂷 3-4 Photograph Land 11/10/2000
Plat Map Sale Sale 11
I!i ROW Account _ Parcel No.__--'1'----_ Highway __----"M""id"'w"-"a!.Lv...,R""'oa""d'---__ County 􀀭􀀭􀀧􀁄􀁾􀁡􀀢􀀢􀁬􀀱􀁡􀀢􀀢􀁳􀀧􀀭􀀭􀀭 _ COMPARABLE DATA SUPPLEMENT Land Sale__--"O=2'--_Improved
Sale, --'Rental Data'--_ See Attached PHOTOGRAPH & MAP GrantorlLessor Maylar, LP Grantee/Lessee Sixteen Thousand Five Hundred, Inc. Date 1/31/2000 Recording Infonnation DOC 2000020/2714
Key Map 4-P (Dallas) Legal Description Part ofLot I, Block A, Beltwood North-Airport Addition, Addison, DallasCountv, Texas Confinned Price $ 470,000 Verified with Bill Lokey, Broker
(214-476-4053) Tenns and Conditions of Sale Ann's length, Cash to seller Rental Data__N'-'-'-"/A-"-_ Land Size 58,414 square feet or 1.341 acres Unit Price as Vacant $ 8.05 per square
foot Type Street Midway, 4-lane, concrete paved Type Utilities Water, Sewer, Electric, Phone Improvement(s) Description 􀁟􀀭􀀭􀀧􀁎􀁾􀀯􀁾􀁁􀁾 _ Improvement(s) Size N/A (GBA) -----'N"""/-'-'A'--__(NRA)
Unit Price as Improved $ "-'N""'/A-"-_ Condition and Functional Design ----'N""'/""A-"--_ Current Use vacant land Highest & Best 􀁕􀁳􀁥􀁟􀁃􀀽􀁯􀁭􀁭􀁾􀀢􀀢􀁥􀀢􀀢􀁲􀁣􀀢􀀧􀁩􀀢􀀢􀁟􀁡􀁬􀀧􀁟􀁟􀁟􀁟
_ Date ofInspection 10/1 0/2000 Zoning 1-3 Flood 􀁐􀁬􀁡􀁩􀁮􀁾􀁚􀀽􀁯􀀽􀁮􀀽􀁥􀁟􀀽􀁟􀁘􀀢􀁟􀁟 _ Attach Additional Infonnation This parcel is located at 16500 Midway Road, on the east side
of Midway Road, at Commander Drive. This site was purchased for future commercial or industrial development. Infonnation concerning this sale was provided by a broker involved in the
transaction. Appraiser Donald J.Sherwood (Typed, not signed) 3-5 10/10/2000 Date
:. or 3-6 Land 10/10/2000 Photograph Land 10/1012000 Plat Map Sale Sale 22
Unit Price as Vacant $ 4.56 per square foot Type Utilities Water, Sewer, Electric, Phone j -i J ROW Account _ Parcel No.__----'-I _ Highway __----'"'M=id=w=a'-'-v=R""oa=d'--__ County
--"D""a"'lla""s'--_ COMPARABLE DATA SUPPLEMENT Land Sale__--'O'-='3:....-_Improved Sale Rental Data, _ See Attached PHOTOGRAPH & MAP Grantor/Lessor Ronald and Ethel Gruen Grantee/Lessee
Today Keller Springs, LP Date 7/30/1998 Recording Information . DOC 98148/7287 Key Map 4-X (Dallas) Legal Description Lot 2, Block D, Beltwood North Midway Addition, Carrollton, Dallas
County, Texas Confirmed Price $ 425,000 Verified with Beckv Miller, Broker (214-637-1770) Terms and Conditions of Sale Arm's length, Cash to seller Rental Data__"-'N""/A'-"---_ Land
Size 93,175 square feet or 2.139 acre Type Street Chenault, 4-lane, concrete paved Improvement(s) Description 􀁟􀀭􀀭􀀧􀁎􀀧􀀭􀀢􀀯􀁾􀁁􀀭􀀢􀀭􀀭􀀭􀀭 _ Improvement(s) Size N/A (GBA) ----'N""'/-'-2A'----__
(NRA) Unit Price as Improved $ -'-'N'-'-'/A'-"---_ Condition and Functional Design 􀀭􀀭􀀭􀀧􀁎􀀧􀀭􀀢􀀯􀁾􀁁􀀭􀀢􀀭􀀭 _ Current Use Parking lot Highest & Best Use,_""'C""o=mm=-o::e::.:.r""'ci""a.I...
_ Date of Inspection 11110/2000 Zoning PD Flood 􀁐􀁬􀁡􀁩􀁮􀀮􀀭􀀭􀀭􀀭􀀢􀁚􀀢􀀢􀀧􀁯􀁾􀁮􀀢􀀧􀀭􀁥􀀭􀀧􀀭􀁘􀀢􀀭􀀭􀀭 _ Attach Additional Information This parcel is located at the northwest comer
of Chenault Drive and Earhart Drive. This site was purchased to provide additional parking for an adjacent office/showroom building. Information concerning this sale was provided by
a broker involved in the transaction. II Appraiser Donald 1. Sherwood (Typed, not signed) 3-7 11110/2000 Date
􀁩􀁾􀀬 􀁾 􀁲􀀻􀀻􀀻􀀺􀁾...􀁾 􀀻􀀺􀀧􀁬􀀻􀁾􀀺􀂷􀀧􀂷 ,IiIIIIIIlfI> .,-,: 􀁾 ._.• _. 􀀢􀁈􀁾􀀧􀀢 Land Sale 3 11/10/2000 Photograph Land Sale 3 10/10/2000 Plat Map Ii .... III 3-8
Unit Price as Vacant $ 10.01 per square foot Type Utilities Water, Sewer, Electric, Phone JI II J1I ROW Account _ Parcel No.__----'--I _ Highway __-----'-'M"-'.id""w"-'a'-'-v-"'R""oa""d'-----__
County --"D=al""'la""-s _ COMPARABLE DATA SUPPLEMENT Land Sale.__-"O;....:4__.Improved Sale ---'Rental Data _ See Attached PHOTOGRAPH & MAP Grantor/Lessor Daryl N. Snadon GranteelLessee
Rail Hotels Corporation Date 7/1/1998 RecordingInformation DOC 98127/755 Key Map__-"-14..:...---"C,-,(,-",D"-"a",,1l,,,,a,,-,s),--_ Legal Description Lot 1, Block A, Ouorum Centre Addition,
Addison, Dallas County, Texas Confirmed Price $ 688,770 Verified with Jim Durbin, Grantor (972-661-1011) Terms and Conditions of Sale Arm's length, Cash to seller Rental Data__N"--'-'-'/A...o..-_
Land Size 68,825 square feet or 1.58 acre Type Street Addison, 4-1ane, concrete paved Improvement(s) Description _--'N'-'-'-'./A-"----_ Improvement(s) Size N/A (GBA) -----'N-"./.....,A'--__(,NRA)
Unit Price as Improved $ =-N"-'/A'-"-_ Condition and Functional Design ----'N'-"/c.o.A""--_ Current Use Motel Highest & Best 􀁕􀁳􀁥􀁟􀁃􀀽􀁯􀁲􀁮􀁭􀁾􀀢􀀢􀀧􀁥􀀢􀀢􀀧􀀢􀁲􀀢􀀢􀁣􀁩􀀢􀀢􀁡􀀢􀀧􀁟􀁟􀀱
_ Date ofInspection 11/10/2000 Zoning PD Flood Plain,----"Z"-"o'-"n""-e-"-X"----_ Attach Additional Information This parcel is located on the east side of Addison Road, just south of
Arapaho Road. This site was purchased for the construction of a Main Stay Suites motel. This tract also has an access easement to Arapaho Road. Appraiser Donald 1. Sherwood (Typed, not
signed) 3-9 11/10/2000 Date
3-10 Land 11/10/2000 Photograph Land 11/10/2000 Plat Map Sale Sale 44
LAND SALES LOCATION MAP 3-11
EXPLANATION OF ADJUSTMENTS The adjustment process is typically applied through either quantitative or qualitative analysis. Quantitative adjustments are often developed as dollar or
percentage amounts, while qualitative adjustments are simply expressed through relative comparison (i.e. significantly inferior). Quantitative adjustments are most applicable when the
quality and quantity of data allows paired sales or statistical analysis. Given the availability of data and imperfect nature of the real estate market, participants most often rely
on relative or qualitative comparisons. Combining the benefits of both qualitative and quantitative analysis, a blended adjustment I technique has been used. This is accomplished through
pre-assigning quantitative adjustments for . j relative comparison. The following chart illustrates the blended adjustment technique. i ·1 .... j BLENDED ADJUSTMENTS Pre-Assigned Quantitative
Relative Comparisons Adjustment Slight Adjustment 5% Moderate Adjustment 10% Fair Adjustment 15% Significant Adjustment 20% Large Adjustment 25% plus Market participants can often identify
superior or inferior characteristics when comparing properties. Without paired sales or statistical information, applying quantitative adjustments to reflect the differences is often
problematic or subjective. For this analysis, the above listed quantitative adjustments reflect the need for slight, moderate, fair, significant, or large adjustments. EXPLANATION OF
ADJUSTMENTS FORWHOLE PROPERTY -LAND II .. 1iI The previous sales have all been analyzed and adjusted to provide a value indication for the subject property. The unadjusted unit sale
prices range from $4.56/SF to $lO.Ol/SF. The unit prices have been adjusted for the factors indicated in the previous table as follows: FINANCING TERMS This adjustment is generally applied
to a property that transfers with atypical financing such as having assumed an existing mortgage at a favorable interest rate. Conversely, a property may be encumbered with an above-market
mortgage, which has no prepayment clause or a very costly prepayment clause. Such atypical financing often plays a role in the negotiated sale price. Each ofthe sales were cash equivalent
to the seller and no adjustment was required. 3-12
􀁾􀁬I!I CONDITIONS OF SALE This category reflects extraordinary motivations of the buyer and seller to complete the sale. Examples include purchase for assemblage involving anticipated
incremental value, or a quick sale for cash. This adjustment category may also reflect a distress-related sale, or significant buyer expenditures immediately after purchase. The sales
were reported to involve normal conditions ufsale. No adjustment was required. DATE OF SALE Market conditions in the subject neighborhood have been steadily improving with the current
economic conditions of the region. Sales that occurred 12 months prior to the effective date of appraisal warrant an upward adjustment. Sales 3 and 4 are over 12 months old. Based on
conversations with brokers in the market, a 10% upward adjustment was made to each sale. If the previous adjustments are required, they are applied sequentially in the order indicated.
LOCATION Sale No. I is located just north of the subject in an more industrial area. Its location is considered to be inferior to the subject due it being located on secondary roadways.
Thus, this transaction was adjusted upward. Sale 2 is situated just north of the subject on Midway Road. Its location is considered similar to the subject and does not require adjustment.
Sale 3 is situated just southwest of the subject on a secondary roadway. Its location is considered to inferior to the subject and was adjusted upward. Sale 4 is located on Addison Road,
just north of Belt Line Road. Its proximity to Belt Line Road is considered to be superior to the subject and this transaction was adjusted downward. PHYSICAL FEATURES The subject is
rated good with regard to shape, comer orientation, topography, soil characteristics and encumbrances. Sales I and 3 have frontage on two streets like the subject, and do not require
adjustment. Sale 2 has frontage on one side and will be adjusted upward for this factor. Sale 4 does have an access easement to a second roadway, however it is not considered to be a
true comer location and was adjusted upward for this factor. SIZE With respect to size, the market will generally indicate that parcels with a larger number of square feet or acres will
command lower unit sale prices. This is due to the larger market of potential buyers available for the purchase of smaller parcels. Sale 1 was considered to be most similar in size to
the subject and did not require an adjustment. The remaining transactions are smaller in size than the subject and were adjusted downward. 3-13
1\1i II UTILITIES The subject and the sales had access to all utilities, therefore no adjustments were required. ZONINGIUSE Each of the sales is considered to have reasonably similar
commercial or industrial use potential based on the zoning of the sites. Each of the sales are situated in areas that include a mixture of industrial, office and other uses. No differences
in prices paid could be extracted from the market data shown in this analysis. Therefore, no adjustments were required. CONCLUSION Before adjustment, the sales had a unit price ranging
from $4.56/SF to $IO.Ol/SF with a mean of $7.00/SF. After adjustments, the unit sales price ranged from $5.27/SF to $9.36/SF with a mean of $7.12/SF. Sale 2 is located on Midway Road
and overall, is considered to be a good indicator of value for the subject. Listings in the area with similar frontage in the area have also been considered. Currently, the majority
of listings for similar sized parcels have asking prices generally around $10.00 per square foot. Each of the listing brokers for these parcels indicated some activity in the market.
Given the previous adjustments, plus the discussion of additional information above, it is our opinion that a unit value of $7.50 per square foot is appropriate for the subject parcel,
as of October 31, 2000. This indicates a value of $1,065,038 for the whole subject property land (142,005 SF x $7.50/SF). 3-14
1IIIIi -.,-1 -. VALUE OF AREA ACQUIRED Property Description The proposed right-of-way acquisition is located at the northwest comer of the subject whole site. The proposed acquisition
is irregular in shape being approximately 18 feet wide and approximately 50 feet long. The proposed area to be acquired contains approximately 197 square feet, or 0.0045 acres. The survey
map and legal description of the part to be acquired is shown later in this report. Land Value It has been noted that the size of the take is too small to support any development by
itself; however, there is no market evidence that suggest a unit value of a parcel smaller than the whole subject could command a higher unit value than the whole. For the valuation
of the part to be acquired, it is the appraisers' opinion that the comparable land sales used to estimate the market value for the subject property whole land would be applicable to
the part to be acquired. In the valuation of the whole, a unit value estimate of $7.50 per square foot was indicated. Based on 197 square feet in fee ownership, the land value for the
partial acquisition in fee is estimated at $1,478 (197 Square Feet x $7.50/SF). Improvement Value The subject property is currently improved with an office/warehouse building. The main
improvements appear to be sufficiently setback from the front and sides of the site and are therefore unaffected by the proposed acquisition. Because the major improvements are unaffected
by the proposed acquisition, no attempt to value these improvements was made. Therefore, this appraisal is limited in scope. COSTS TO CUREIDAMAGES The appraisers recognize that the proposed
area to be acquired includes some landscaped area. In order to restore the affected site improvements, the subject was appraised as if it were restored to an operative level. Therefore,
any damages or costs to cure any deficiencies must be estimated. General Landscaping -The subject property has approximately 197 square feet of landscaped grass within the part to be
acquired. According to the Marshall and Swift Valuation Service, the depreciated value of the general landscaping was estimated at $0.30 per square foot. Therefore, the estimated value
of the general landscaping in the part to be acquired is $60. Therefore, the total costs to cure and damages are estimated at $60. 4-1
j .;1 , I BREAKDOWN FOR COMPUTATION PURPOSES: Improvements: I .J Landscaping Total Improvements $---..2Q $ 60 Land: Fee 197 SF@.:o:..$7.:....:;.5"-'0::.:...:/S=F'--=$1,478 I ./Total
Land TOTAL AS A UNIT [ oJ "J .1'I 4-2 $1,478 $1,538
Ir IIi LOT 2 􀁾 __􀁾􀁟􀁾􀀢􀀢􀀬􀀮􀀮􀀮􀀬􀀮􀀬􀀮􀀮􀁾..--l ("-t1..*...9r:; DR IVE MAPI'<oc;l>CAiX tr} 􀁾􀁬􀁬 '. , I 􀀮􀁾 I 􀁩􀁾􀀮􀀻􀀮􀀺 II Ir---􀁁􀂷􀁬􀁬􀁌􀁁􀁬􀀧􀁏􀁆􀁁􀀤􀁬􀀮􀁊􀁊􀁗􀂣􀁖􀀮􀀨􀁬􀁆􀁊􀁬􀀮􀀧􀀸􀀮􀀳
􀀤􀁊􀁩􀁱􀀮􀁾 (!!l1.S.F.)JRAC'TCf UWP '.. IN ··THEEDWARD.CO()I(SURI,IEV A8SYRACTNLJMlIESt3t1i erTYOfADl)lSON" DAUASCOUNlY, TEXAS ttGmP f oCl )-6« 􀀮.􀀧..􀀮. 􀁾·E .3;: '0ttl 0'6I"') LOT
1 ADDISON AIRPORT INDUSTRIAL 􀁏􀁴􀁓􀁔􀁒􀁾􀁃􀁔􀀧􀀧􀁂􀁌􀁏􀁃􀁋 D VOL .50,PG. 0207 M.F?D:C. T; GILfORD JOINT VENTURE '\j 􀁴􀁾 "'< ",..J 􀁖􀁏􀁌􀁾􀀴􀁱􀀰􀀱􀁐􀁇􀀮 0206 S \) 􀁾 0 "__."_ D.R,O.
C, 1" . . .••O··.··.¥-..' ":J 􀁾 􀁾􀀨􀀯 CO·· .\-.\0 􀁾􀁬􀀺􀁏􀁜􀀩 . r"\ f:-.Y'. 􀁾􀁶 􀁾 j r::'i) 􀁾􀀧􀀮􀀬.·.C. "B 􀁾 0'1 􀁾 􀁾􀁥 J :?:1 0; V.HI r I 􀁾􀁪 ....n. 􀁾􀁗􀀡􀀭􀂷􀁾􀀭􀁾􀁴􀀭􀂷􀂷􀀧􀀢􀀮􀀯􀁜􀀮􀁾
􀁯􀁡􀀮􀁟􀀮􀁉􀁦􀁬􀀢􀀧􀁾1O!ll",,,",,,k'JfIS 'V 􀀮􀀮􀀮􀀮􀁵􀀱􀁉􀁾􀁟rt,) _ 􀁏􀁦􀀢􀁁􀁁􀁬􀀮􀁯􀀺􀁉􀀯􀀼􀁬􀁉􀁏􀀮􀀧􀁉􀁤􀁾 􀁬􀁾 10TH! 􀁾 _O""D",*""l1" QTY..􀁾􀀢􀀰􀁉􀀧 'o'jJL 􀁾 .....·• ,. 􀀮􀁷􀁬􀀢􀀢􀀱􀁉􀀧􀁩􀀡􀁐�
�􀁬􀀵􀀱􀀢􀀬􀁵􀀮􀁾 __., 􀁾 "uu. or 􀁾􀀭􀁙􀀧􀀭􀁾􀀻 "􀀢u􀁾.t􀀭􀀭_􀀢"􀁾􀀮􀀢􀁔􀀢􀀢􀀧􀀧􀀧􀀧􀀮􀁟.• ''''U JlL'l:DWOMlOU ·,.". ....t. 􀀮􀀭􀀮􀀮􀁷􀁴􀀮􀁟􀀮􀁾􀁬􀀾 􀁬􀀧􀁑􀁯􀁯􀁾􀀱􀀱􀁄􀁉􀁬􀁏􀀭􀀢􀀬 iI
􀁾􀀺􀀺􀁾􀁾􀀭􀀭􀁟􀀮􀀺􀀮􀀮􀀬􀀭􀀺􀀮􀀮􀀬􀀻􀀮􀀻􀀮􀀬􀀮􀀮􀀮􀀻􀀮􀀮􀀮 ...---... 􀁾􀀮􀀮􀀮􀀮􀀮􀀻􀀮􀀮􀀧 ' .... 􀂷􀀬􀁾.....lt.M 􀁩􀀽􀁾 􀁾 􀁾 ._-􀀮􀁾 􀁾􀀢􀀢􀀭 􀁟􀀮􀁾􀁾􀀧􀂷􀀭􀀭􀁉􀁉􀁩􀀭􀀭􀀭􀀮􀀻􀀬 􀀺􀀮􀀮􀁾􀀮􀀢􀀢􀀢
--+-'-\!.. -i9u'l_ 􀁾􀀬􀀯􀁉􀀨__y-.. 􀁾..... .-r. ..._􀁾􀀮 "., ., .._,. 􀁾􀁾 􀁟􀀭􀁾 -.--,-;.-o__-..,.....;. i􀁾-􀀮r􀀭􀀮􀀮􀀮􀀮􀀮􀀮 --"---= 􀁾􀀮􀀧 .... .::====: 􀁾􀁬􀀺􀀨􀁾􀀧􀁾􀀽􀁴􀀺􀀧􀀺􀁾􀀺􀁾􀁏􀁬􀁾_..
􀁾􀀬􀁾􀀢􀁾 ">If 􀀭􀀮􀁾􀀺􀁟􀀮􀀺􀀮􀀭􀀮􀁾􀀬􀁾􀀭􀀬􀀺􀁾􀁽􀁟􀀬 ..􀁾 􀀢􀁦􀁾􀀧􀀢 .. ':"'" 􀁾 ';. 􀀱􀀧􀀮􀁉􀁊􀀡􀁜􀀺􀀺􀁾􀁬􀀮 ..1 1! J ./II ,I ....\ .. PARCELl-SURVEYOFPART To BEACQUIRED 4-3
I\) EXHIBIT "A" County Dallas Parcell Highway Intersection of LindberQ Drive at Midway Road CSJ: Account: Page 1 of 2 􀁄􀁾􀀱􀀵􀀭 June 4,1999 II,J II III JII I] Legal Land Description
for Parcell BEING 18.33 square meters [197 square feet] of land in the Edward Cook Survey, Abstract No. 326 in Dallas County, Texas and being a portion of that 1.31897 hectares [3.2593
acres] parcel of land conveyed to Gilford Joint Venture (Gilford tract) as recorded in Volume 84001, Page 0206 of the Deed Records of Dallas County Texas (D.R.D.C.T.), said Gilford tract
being Lot 1 Block D of the Addison Airport Industrial District Addition as recorded in Volume 50, Page 0207 of the Map Records of Dallas County Texas (M.R.D.C.T.), said 18.33 square
meters [197 square feet] of land, being more particularly described by metes and bounds as follows: COMMENCJNG at the southeast corner of said Gilford tract. THENCE, North, along the
east property line of said Gifford tract. for a distance of 144.524 meters [474.16 feet] to the northeast corner of said Gilford tract on the existing south right-of-way line of Lindberg
Drive, THENCE, West, along the north property line of said Gilford tract and the existing south right-of-way line of Lindberg Drive, for a distance of 79.998 meters [262.46 feet] to
a one half inch iron rod with cap marked AB&A set for corner on the new southerly right-of-way line of Lindberg Drive at the beginning of a curve to the left with a chord that bears
South 52 degrees 56 minutes 47 seconds West, 14.337 meters [47.04 feet], having a radius of 12.600 meters [41.34 feet}, said iron rod being the Point of Beginning of the tract of land
herein described; 1. THENCE, Southerly, along the new southerly right-of-way line of Lindberg Drive and along said curve to the left through a central angle of 69 degrees 21 minutes
04 seconds, for an arc length of 15.251 meters [50.04 feet] to a one half inch iron rod with cap marked AB&A set for corner on the west property line of said Gilford tract and the existing
east right-of-way line of Midway Road at the end of said curve; 2. THENCE, North, along the west property line of said Gilford tract and the existing east right-of-way line of Midway
Road, for a distance of 5.591 meters [18.34 feet] to a point on the west property line of said Gilford tract and the existing east right-ofway line of Midway Road; 3. THENCE, North 63
degrees 26 minutes 07 seconds East, a distance of 6.816 meters [22.36 feet] to a point on the north property line of said Gilford tract and the existing south right-of-way line of Lindberg
Drive; PARCEL 1 -LEGAL DESCRIPTION OF PART To BE ACQUIRED 4-4
EXHIBITUA" County Dallas Parcell -Highway Intersection of Lindberg Drive at Midway Road CSJ: Account: Legal Land Description for Parcell Page 2 of 2 0-15-June 4,1999 \I .J.1,I\ 4. THENCE,
East, along the north property line of said Gilford tract and the existing south right-of-way line of Lindberg Drive, for a distance of 5.346 meters r17.54 feet] to the Point of Beginning.
The above described tract of land contains 18.33 square meters [197 square feet] of land more or less. A plat of even survey date herewith accompanies this legal description. The basis
of bearings for this intersection is the north property line of Volume 84001, Page 0206 D.R.D.C.T. along the existing east right-of-way line of Midway Road. All dimensions are in meters
unless otherwise noted. English units are given for information only. Company Name: Arredondo, Brunz &Associates, Inc. Sy: &LA" t,. 􀁾 Date: C-0 tf-9'l Surveyor's Name: Eddie L. Dunn
R.P.L.S. Registered Professional Land Surveyor Texas Registration No. 4580 PARCEL 1-LEGAL DESCRIPTION OF PART To BE ACQUIRED 4-5
VALUE OF REMAINDER BEFORE ACQUISITION Property Description The remainder of the whole site will contain approximately 141,808 square feet, or 3.256 acres. The remainder property will
be similar in shape to that ofthe whole. Highest and Best Use: Industrial/Commercial Correlation of Approaches to Value: Income Approach Cost Approach Market Data Approach Land: ( )
( ) (X) $ N/A $ N/A $ 1,063,560 Fee 141,808 SF @$ 7.50/SF $1,063,560 Total Land MARKET VALUE, REMAINDER BEFORE THE ACQUISITION: $1,063,560 $1,063,560 Discussion: The value of the Remainder
Before the Acquisition is the mathematical difference between the value ofthe Whole Property and the value ofthe Areas Acquired. $1,065,038 -$1,478 = $ 1,063,560 5-1
VALUE OF REMAINDER AFTER ACQUISITION Property Description The remainder ofthe whole site will contain approximately 141,808 square feet, or 3.256 acres. The remainder property will be
similar in shape to that of the whole. . Highest and Best Use: Industrial/Commercial Correlation of Approaches to Value: Income Approach Cost Approach Market Data Approach ( ) ( ) (X)
$ N/A $ N/A $ 1,063,560 II .J Discussion of Damaging Influences and Method of Valuation: The utility of the subject site will not be negatively affected after the acquisition and it
is the appraiser's opinion that no damages will have occurred. The same comparable sales used to value the Whole Property were used to value the Remainder After the Acquisition. Considering
the use to which the area acquired is to be subjected, the market value ofthe remainder immediately after the acquisition $ 1,063,560 BREAKDOWN FOR COMPUTATION PURPOSES: Improvements:
I .1II f i .. i Land:Fee Total Improvements141,808 SF @$ 7.50/SF $$$$$$ $1,063,560 $ N/A Total Land 6-1 $1,063,560
I . I]II II ADDENDA
·1I . 1ij CERTIFICATION We certify that, to the best of our knowledge and belief; • The statements offact contained in this report are true and correct. • The reported analyses, opinions,
and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions, and conclusions. • We have no present
or prospective interest in the property that is the subject of this report, and we have no personal interest with respect to the parties involved. • We have no bias with respect to the
property that is the subject ofthis report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined
results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of
the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence ofa subsequent event directly related to the intended use if this appraisal. • Our
analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards ofProfessional Appraisal Practice. • Ted Brooks, MAl and
Donald J. Sherwood, MAl have made a personal inspection of the property that is the subject of this report. • No one has provided significant professional assistance to the persons signing
this report. • The reported analyses, opinions, and conclusions were developed, and this report has been developed in conformity with the requirements ofthe Code of Professional Ethics
and the Standards of Professional Appraisal Practice ofthe Appraisal Institute, and the Texas Real Estate License Act. • The use of this report is subject to the requirements of the
Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report, we, Donald 1. Sherwood, MAl and Ted Brooks, MAl, have completed the requirements
under the continuing education program ofthe Appraisal Institute. Donald J herwood, MAl State ofTexas Certification #TX-1320183-G Integra File Number 2000C0575F-Parcell Ted Brooks, MAl
State ofTexas Certification #TX-1320511-G
II III ASSUMPTIONS AND LIMITING CONDITIONS For the purpose of this appraisal, the following assumptions and contingent conditions are made a part hereof: 1. This appraisal has been assigned
to this appraiser with the expressed condition that an appraisal be made of the real property taken and the value of any improvements thereon which are materially affected by the proposed
project. It is intended for the sole use of Dallas County. Others may receive a copy of this report due to legal requirements of disclosure, but the appraiser does not intend use of
this report by entities other than Dallas County. 2. This appraisal is made for the express purpose of establishing just compensation to the landowner by Dallas County; such compensation
being based on fair market value as defined elsewhere in this report. 3. Consideration is given to but no responsibility is assumed by the appraiser for matters of a legal character.
The title is assumed to be marketable. The appraiser has not made a survey of the real estate and does not assume responsibility for accuracy thereof. 4. While it is believed the information,
estimates and analysis contained herein are correct, the appraiser does not guarantee them and assumes no responsibility for errors in fact, analysis or judgment. Information furnished
by others is believed reliable and has been verified where possible but it is not guaranteed to be accurate. 5. Information obtained from the flood prone maps prepared by the U. S. Corp.
of Engineers or other appropriate entities is assumed to be accurate. 6. If condemnation proceedings become necessary, this appraiser will testify to an updated opinion reflecting the
value of the part taken considered as severed land, the value of the entire remainder prior to the taking and the value of the entire remainder after the taking, reflecting any change
in the size or character of the land and/or changes in number and/or conditions ofthe improvements located thereon. 7. The appraiser has no interest either real or implied in the subject
property and his opinion of value was not prejudiced by any influence other than that exerted by the normal procedure of appraisal. 8. The values stated herein are estimates. The appraiser
makes no guarantees written or implied, that the subject will sell for the value stated. 9. The supplied information indicates the size of the Whole Property, the Proposed Acquisition
and the Remainder Property. The appraiser used this information, which is assumed to be correct, to value the subject property. 10. The appraiser has made no investigations into the
presence or absence of hazardous materials. The appraiser is not qualified to detect hazardous material and assumes no liability in such regard. Environmental liability may greatly affect
the value of the property and should be determined by a competent environmental professional. 11. The State of Texas does not have full disclosure laws regarding real estate transactions.
Therefore the appraiser had to confirm all sales with brokers, property managers, mortgage brokers, grantors,
I] .. J ...􀁾 grantees and other parties familiar with the transaction. The appraiser's results are limited by the accuracy of the information supplied by the aforementioned individuals.
12. Appraisers for Dallas County are required to estimate values of fractional portions of ownership and establish compensation for property taken for public use. If any part of the
Uniform Standards of . Professional Appraisal Practice is contrary to the policy of Dallas County, the policy of Dallas County shall prevail, but only for that part of the USPAP that
is directly affected under the Jurisdictional Exception clause.
I .1I PROFESSIONAL QUALIFICATIONS OF DONALD J. SHERWOOD, MAl EXPERIENCE Director of the Fort Worth office of Integra Realty Resources-DFW, a full service real estate consulting and appraisal
firm. Mr. Sherwood has been an appraiser of all types of real property since December 1978. Mr. Sherwood has performed appraisals on various properties including, but not limited to,
shopping centers, apartment complexes, industrial facilities, a nuclear bomb storage site, an air force base, automobile race track, raw and developed land, office complexes, motels,
hotels, marinas, cemeteries, bowling alleys, amusement parks and mixed use developments. He is qualified in Federal and Texas State Courts as an expert on real estate values. He was
appointed Special Commissioner for County District Court in 1980. He served as a member of the Tarrant Appraisal District Review Board from 1984 to 1986. As a graduate student, he spent
one and a half years as a research assistant involved in real estate research for the Texas Real Estate Center at Texas A&M University. He was a staff appraiser with James K. Norwood,
Inc. from 1978 to 1986. In 1986, he opened the firm of Sherwood & Associates. In 1996, Mr. Sherwood merged his firm with Loughry Appraisal Company, Inc. to form Appraisal/Data Services.
PROFESSIONAL ACTIVITIES 1I ! Member President Vice President Licensed Member Vice Chairman Adjunct Professor Member Member STATE LICENSE Appraisal Institute -Designated MAl (Member of
Appraisal Institute), Certificate No. 6791, President of Central Texas Chapter, 1989-1990 International Right-of-Way Association, President of Chapter 36, 1998 􀁾􀁯􀁣􀁩􀁥􀁴􀁹 of Texas
A&M Real Estate Professionals, Vice President 1979, 1980 Texas Real Estate Broker, License No. 214402 Fort Worth Board of Realtors Board of Zoning Adjustments -City of Mansfield, Texas
Texas Christian University, Department of Finance Appraisal Institute, Member of National Faculty IRWA, Member ofNational Faculty .j Texas State Certified General Real Estate Appraiser,
Certificate Certificate No. TX-1320183G EDUCATION Bachelor of Business Administration Southwestern University, Georgetown, Texas 1976 Master of Agriculture, Specializing in Land Economics
& Real Estate Texas A&M University, College Station, Texas 1978 CERTIFICATION Currently certified by the Appraisal Institute's program of continuing education for its designated members.
1---------------------III .. 1 TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD BE IT'KNOWN THAT DONALD JAMES SHERWOOD HAVING PROVIDED SATISFACI'ORY EVIDENCE OF THE QUALIFICATIONS REQUIRED
BY THE TEXAS APPRAISER LICENSING AND CERTIFICATION ACI', ARTICLE 6573a.2, VERNON'S TEXAS CIVIL STATUTES, IS AUTHORIZED TO USE THE TITLE " -II jII STATE CERTIFIED GENERAL REAL ESTATE
APPRAISER Number: TX-1320183-G Date of Issue: January 23, 2001 Date of Expiration: March 31, 2003 Renil C. Liner, Conunissioner Debra S. Runyan, Chair Benjamin E. Barnett L. W. (Wayne)
Mayo James M. Synatzske, Vice-Chair Douglas Oldmixon Robert A. Seale, Jr. Jacqueline G. Humphrey, Secretary Eduardo A. Lopez Elroy Carson
I ,. IIJ PROFESSIONAL QUALIFICATIONS OF TED BROOKS, MAl EXPERIENCE Senior Analyst with the Fort Worth office of Integra Realty Resources-DFW, a full service real estate consulting and
appraisal firm. Mr. Brooks has been an appraiser of all types of real property since January 1985. Mr. Brooks has performed appraisals on various properties including, but not limited
to, shopping centers, apartment complexes, industrial facilities, a nuclear bomb storage site, an air force base, raw and developed land, office complexes, motels, hotels, marinas, bowling
alleys, amusement parks and mixed use developments. He is qualified in Federal and Texas State Courts as an expert on real estate values. He was appointed as a Board Member of the City
of Bedford Zoning Board of Adjustment in 1997. As a graduate student, he spent one year as a research/teaching assistant involved in real estate research for the Texas Real Estate Center
at Texas A&M University. He was an appraisal office with Texas Commerce Bank, Inc. from 1985 to 1989. He was also a review appraiser with Guaranty Federal Bank from 1989 to 1990, and
a senior appraiser with Noyd and O'Connell from 1990 to 1995. In 1995, he joined Loughry Appraisal Company, Inc., which is now part of Integra Realty Resources DFW. PROFESSIONAL ACTIVITIES
Member Treasurer Licensed Board Member Board Member Appraisal Institute -Designated MAl (Member of Appraisal Institute), Certificate No. 8442 Society of Texas A&M Real Estate Professionals,
19881992 Texas Real Estate Broker, License No. 0339193 Zoning Board of Adjustments, Vice Chairman -City of Bedford, Texas Tarrant County Community Development Corporation STATE LICENSE
Texas State Certified General Real Estate Appraiser, Certificate No. TX-1320511G EDUCATION Bachelor of Business Administration Texas A&M University, College Station, Texas 1983 Master
ofAgriculture, Specializing in Land Economics & Real Estate Texas A&M University, College Station, Texas 1984 CERTIFICATION Currently certified by the Appraisal Institute's program of
continuing education for its designated members.
TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD BE ITKNOWN THAT TED DANIEL BROOKS Renil C. Liner, Commissioner In Witness Thereof Date of Issue: February 18, 1999 .Date of Expiration:
Apri130;'2001 Number: TX-1320511-G HAVING PROVIDED SATISFACTORY EVIDENCE OF THE QUALIFICATIONS REQUIRED BY THE TEXAS APPRAISER LICENSINGAND CERTIFICATION ACT, ARTICLE 6573a,2, VERNON'S
TEXAS CIVIL STATUTES, IS AUTHORIZED TO USE THE TITLE STATE CERTIFIED GENERAL REAL ESTATE APPRAISER II Bonj,mm E. B=ett. CMir Deb" 8. R"""",. '(ire-CMir ],"lu,lin, G. Humphrey. 8""'''''y
Leonel Garza, Jr, David Gloier Eduardo A. Lopez \ R.o.b.ert.A..,.s.eal.e,.Jllllr. J.a.m.ellllls.M.,s_y_na.tzs.ke 􀁉􀁉􀁉􀁂􀁾􀁟􀁧􀁬􀁩􀁬􀁩􀁥􀁟􀁶􀁬􀁬􀁬􀁬􀀯.􀁬 􀁗•􀁨􀀮􀁩􀀮􀁴􀁥􀁟􀁉􀀡􀁭􀁉􀀡􀀡􀁉􀁾􀁾
]iI