2012-113 - 1101 cooks lane...1101 cooks lane fort worth, texas 76120 dear mr. silverman we are...

717 Cordes Drive, Venus, Texas 76084

Office: 972-268-6695

Federal Tax ID: 45-1275091

Invoice

File Number: 2012-113

Date of Invoice: 12/20/2012

Bill To/Client:

Don Silverman c/o Joe Park Hebron LLC 14801 Quorum Drive, Suite 160 Dallas, Texas 75254

Job Information Amount

File Number: 2012-113

Restricted Use Appraisal Report

Vacant Land

1101 Cooks Lane

Fort Worth, Texas 76120

Appraisal Services $600.00

Total Due Per This Invoice: $600.00

Terms: Net 30

Make check payable to: AW Appraisals and Review Services

Please note file number on check.

A RESTRICTED USE APPRAISAL REPORT 1101 Cooks Lane Vacant Land 1101 Cooks Lane Fort Worth, Tarrant County, Texas 76120 PREPARED FOR: Don Silverman Joe Park Hebron, LLC 14801 Quorum Drive Ste 160 Dallas, Texas 75254 EFFECTIVE DATE OF THE APPRAISAL: 12/20/2012

EXPERTISE WHEN IT COUNTS

717 CORDES DRIVE VENUS, TEXAS 76084

OFFICE: 972-268-6696, CELL : 214-755-3023 AW.APPRAISALS @YAHOO.COM

December 20, 2012 Don Silverman Joe Park Hebron, LLC 14801 Quorum Drive Ste 160 Dallas, Texas 75254 SUBJECT: Appraisal of Vacant Land 1101 Cooks Lane Fort Worth, Texas 76120 Dear Mr. Silverman We are pleased to transmit this appraisal report that was prepared on the above-referenced property. The intended use of this appraisal is for internal management decision-making purposes. The appraisal is not intended for any other use or users. The effective date of the appraisal and the date of the report is 12/20/2012. The report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and the Standards of Professional Practice of the Appraisal Institute. Our opinion of market value is premised upon the Assumptions and Limiting Conditions cited in the addenda of this report. To report the assignment results, I used the restricted use appraisal report option of Standards Rule 2-2 of USPAP. Accordingly, this report contains summary information and analyses that are used in the appraisal process whereas supporting documentation is retained in my work file. The depth of discussion contained in this report is specific to the needs of the client and the intended use of the appraisal. The whole property is a 5.500 acres, 239,580-square foot vacant tract of land. Based on the analysis and conclusions in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed herein, it is my opinion of value as of 12/20/2012, is

$660,000 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, AW Appraisals and Review Services

Aaron H. Wright Certified General Real Estate Appraiser State Certificate #TX-1337782-G

1101 COOKS LANE PHOTO

Vacant Land 1101 Cooks Lane

Fort Worth, Texas

1101 COOKS LANE TABLE OF CONTENTS

TOC

TABLE OF CONTENTS PAGE NO.

1 GENERAL INFORMATION ................................................................................................................................................................................ 1 Summary of Salient Facts and Conclusions .......................................................................................................................................................... 1 Identification of Subject ......................................................................................................................................................................................... 2 Current Ownership and Sales History .................................................................................................................................................................. 2 Real Estate Tax Assessment ................................................................................................................................................................................... 2 Inspection Information, Effective Date and Date of Report ................................................................................................................................ 2 Prior Subject Property Services ............................................................................................................................................................................ 2 Identification of the Client, Intended Users and Intended Use ........................................................................................................................... 3 Objective of the Assignment .................................................................................................................................................................................. 3 Appraisal Report Option........................................................................................................................................................................................ 3 Property Rights Appraised .................................................................................................................................................................................... 3 Extraordinary Assumptions ................................................................................................................................................................................... 3 Jurisdictional Exceptions ....................................................................................................................................................................................... 3 Hypothetical Conditions ......................................................................................................................................................................................... 3 Competency Provision ............................................................................................................................................................................................ 3 Environmental Statement ...................................................................................................................................................................................... 4 Scope of Work ......................................................................................................................................................................................................... 4 Market Area Map ................................................................................................................................................................................................... 5 Description and Analysis of the Land ................................................................................................................................................................... 6 Zoning ...................................................................................................................................................................................................................... 7 Other Legal and Regulatory Constraints ............................................................................................................................................................. 7

2 WHOLE PROPERTY ANALYSIS ........................................................................................................................................................................ 8 Highest and Best Use Analyses – Whole Property ............................................................................................................................................... 8 Valuation Methodology .......................................................................................................................................................................................... 8 Sales Comparison Approach – Land ......................................................................................................................................................................... 9 Conclusion of Value – Whole Property .................................................................................................................................................................. 12

ADDENDA Certification, Qualifications of Appraiser(s), Assumptions and Limiting Conditions .......................................................... Addendum A Definitions ................................................................................................................................................................................. Addendum B Survey Maps and Exhibits ........................................................................................................................................................ Addendum C Property Information ................................................................................................................................................................ Addendum D

1101 COOKS LANE GENERAL INFORMATION

Page 1

1General Information

Summary of Salient Facts and Conclusions

5.500 ACRES, 239,580-SQUARE FOOT VACANT SITE

Location 1101 Cooks Lane, Fort Worth, Tarrant County, Texas.

Legal Description The subject is legally described as being: Tracts 1 and 2 in the John Howard Survey, Abstract No. 816, in the City of Fort Worth, Tarrant County, Texas.

Zoning Designation F – General Commercial

Effective Date of the Appraisal 12/18/2012

Date of the Report 12/18/2012

Owner of Record TRA Cooks Towne Crossing, LP

Land Area The subject consists of approximately 5.500 acres, or 239,580 square feet of land.

Topography Sloping

Floodplain Map Panel and Date 48439C0220K effective September 25, 2009

Floodplain Designation Zone X – Outside of the 100 year flood

Highest and Best Use As Vacant Commercial Use

Property Rights Appraised Fee simple estate


Page 2

Identification of Subject

The subject is vacant tract of land containing 5.500 acres, or 239,580 square feet. The subject is located at 1101 Cooks Lane, Fort Worth Texas 76106.

Current Ownership and Sales History

The Uniform Standards of Professional Appraisal Practice (USPAP) requires full disclosure of any sales or property transfers with the previous three years of the date of value.

According to public records, the owner of record is TRA Cooks Towne Crossing, LP. This party acquired the property on June 23, 2010 for $1,200,000, according to the property representative. The seller was CLFW Development Inc, who had been in ownership since 2008. To the best of our knowledge, no other sale or transfer of ownership has occurred within the past three years.

Real Estate Tax Assessment

Real estate tax assessments are estimated by jurisdiction on a county basis for the subject. The property is located in Tarrant County. Real estate taxes in this state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property may be determined by dividing the assessed value for a property by 100, then multiplying by the composite rate.

Property Tax ID Number(s)Land Assessment $219,128Building Assessment $0Total Assessment $219,128

Tax Rate 2.83787%Indicated Tax Liability $6,219

01824732; 05309816

Tax records do not have the size of the property. The assessed values and the rate are for 2012.

Inspection Information, Effective Date and Date of Report

The property was inspected on 12/20/2012. The reported contact information for the subject property is:

Primary Contact Alternate ContactNameCompanyAddressCity, State, ZipEmailPhone 1 (972) 980-8806 Work - 0

Joe Park Hebron, LLC TRA Cooks Town Crossing, LPDon Silverman RMB Investments, INC

[email protected] 0Dallas, Texas 75254 Richardson, Texas 75081-287714801 Quorum Drive Ste 160 903 N. Bower Road Ste 170

The effective date of this report is the most recent date of inspection, or 12/20/2012. The date of the report is 12/20/2012.

Prior Subject Property Services

I have not provided services regarding the subject property as an appraiser or in any other capacity within the prior three years.


Page 3

Identification of the Client, Intended Users and Intended Use

Joe Park Hebron, LLC is the client and intended users. The intended use is for internal management decision-making purposes. The appraisal is not intended for any other use or user.

Objective of the Assignment

The objective of the assignment is to develop an opinion of real property value in fee simple interest of the subject property. This report will ignore any project influence from IH 35W widening project that has been proposed.

Appraisal Report Option

This is a Restricted Use Appraisal Report that complies with the reporting requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice (USPAP). As such, it presents sufficient information to enable the client to understand it properly. The depth of discussion contained in this report is specific to the needs of the client and the intended use of the appraisal as noted herein.

Property Rights Appraised

The property rights being appraised in this report consist of a fee simple estate. Fee Simple Estate is defined by The Dictionary of Real Estate Appraisal, Fourth Edition, copyright 2002, page 113, 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."

Extraordinary Assumptions

An extraordinary assumption is something that is assumed to be true, but it is not certain. If it turns out to be untrue, the value conclusion could be impacted. Extraordinary assumptions are those assumptions that are specific to the assignment, as opposed to general assumptions, which could be applicable to any assignment. In this assignment, we have assumed typical general assumptions and limiting conditions as cited in the addenda of this report.

Jurisdictional Exceptions

The Jurisdictional Exception Rule allows “an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.” This includes federal and state constitutions, legislative and court made law, administrative rules, regulations and ordinances. In this assignment, there are no known conflicts of law or public policy that disregard a part of USPAP.

Hypothetical Conditions

A hypothetical condition is “that which is contrary to what exists but is supposed for the purpose of analysis.” The use of hypothetical conditions derived from public policy and case law does not result in a process that is limited or renders the results no longer credible. The following hypothetical conditions are evoked for this assignment:

The subject is locate along IH-35W, which is currently is the planning stages for widening. This report ignores any influence of the future project. At this time it is unclear if the subject will be affected by the proposed widening.

Competency Provision

I am competent to accept this appraisal assignment based on my education and experience in appraising office properties. Significant time has been spent in the collection and analysis of sales, rents, local costs, and demographics in order to obtain the necessary understanding of the local market.


Page 4

Environmental Statement

A non-scientific inspection of the subject property indicated no evidence of underground storage tanks, soil contamination, or environmental hazards. However, the appraiser is not qualified to detect the presence of environmental hazards, and the client is urged to retain an expert in this field if there is any question as to the existence of hazardous materials or environmental problems. The value determined in the appraisal is based on the assumption that no hazardous materials or environmental problems are present on or in the property.

Scope of Work

To perform this assignment, we took the following steps to gather, confirm, and analyze relevant data:

� Collected factual information about the property and the surrounding market

� Performed a highest and best use analysis of the subject site as vacant and as improved when applicable.

� Gathered market information on comparable land sales

� Analyzed market information and developed indications of value under the necessary approaches to value for a credible assignment result.

o The appraisal of real estate typically employs three traditional valuation methods: the sales comparison approach, the cost approach, and the income approach. The subject is vacant land and only the sales comparison approach to land is utilized.

� Prepared an appraisal report summarizing our analyses, opinions and conclusions.


Page 5

Market Area Map


Page 6

Description and Analysis of the Land

The property is legally described as Being all of Lot 1 and Lot 2, Block 1, of Allen Subdivision, an addition to the City of Fort Worth, Tarrant County, Texas.

Physical Features

Land Area 5.500 acres, or 239,580 square feet per survey.

Topography Sloping

Flood Plain Panel # 48439C0220K - Effective September 25, 2009

Flood Zone Zone X - Outside of 100 year flood

Flood Insurance Not required for Zone X

UTILITIES

Utility Provider

Water City of Fort Worth

Sewer City of Forth Worth

Electricity TXU Electric, plus others

Natural Gas Atmos Energy

Local Telephone AT & T, plus others

STREETS, ACCESS, FRONTAGE

Street Cooks Lane Sumac Hill Drive

Frontage Feet +/- 120 feet +/- 970 feet

Driveways None One


Page 7

Zoning

The subject is zoned F which is for general commercial use.

Other Legal and Regulatory Constraints

Easements, Encumbrances, and Restrictions

Although a title report was not provided for review, we are not aware of any easements, encumbrances, or restrictions that would adversely affect the use of the site. A title search is recommended to determine whether any adverse conditions exist. We assume that there are no easements, encumbrances, or restrictions that would restrict the property from being developed to its highest and best use.

Encroachments

We were not provided a survey; however, an inspection of the site revealed no apparent encroachments. It is assumed that the property is free and clear of encroachments.

Other Land Use Regulations; Development Moratoriums

We are not aware of any land use regulations other than zoning that would affect the property, nor are we aware of any moratoriums on development.

1101 COOKS LANE HIGHEST AND BEST USE ANALYSES – WHOLE PROPERTY

Page 8

2Whole Property Analysis Highest and Best Use Analyses – Whole Property

Before an opinion of value can be developed, there must be a determination of the highest and best use of the property. The highest and best use must be:

� Legally permissible under the zoning laws and other restrictions that apply to the site.

� Physically possible for the site.

� Financially feasible.

� Capable of producing the highest value from among the permissible, possible, and financially feasible uses.

Legally Permissible

The site is zoned F – General Commercial which is for commercial uses. There are no other legal or regulatory restrictions that would limit the potential uses of the property.

Physically Possible

The physical characteristics of the site should reasonably accommodate any use that is not restricted by its size of 5.500 acres, or 239,580 square feet. It is noted that the subject has a narrow shape, however, it is still developable.

Financially Feasible

There is currently adequate demand for commercial use in the market area. Therefore, commercial use is financially feasible.

Maximally Productive

Considering all reasonably probable development scenarios and potential values that could be created versus the cost of development of each, we conclude that no use of the site would be as profitable as industrial use.

Conclusion

Commercial use is the only use that meets the four tests of highest and best use. Accordingly, it is concluded to be the highest and best use of the property.

Valuation Methodology

The traditional methods of processing market data into a value indication include:

� Cost Approach

� Sales Comparison Approach

� Income Capitalization Approach

Applicability of Valuation Approaches

Since the subject is vacant land, only the sales comparison approach for land is utilized.

1101 COOKS LANE SALES COMPARISON APPROACH – LAND

Page 9

Sales Comparison Approach – Land

Aerial Map Description Land Sale 1

Vacant Land1020 Cooks LaneFort Worth, Texas 76120

Sale (Deed) Date 12/8/2010Grantor (Seller) Hudgins Realty I, Ltd.Grantee (Buyer) Inspiring Temple of Praise ChuRecording DOC D210304445Zoning E - Neighborhood CommercialHighest and Best Use CommercialUtilities All AvailableFlood Plain NoneLand Size (SF) 408,070Land Size (Acres) 9.3680Sale Price $1,000,000Sale Price Per SF $2.45Price Per Acre $106,746


Vacant Land5900 Ramey Ave.Fort Worth, Texas 76112

Sale (Deed) Date 2/1/2010Grantor (Seller) Warner C Lusardi Family TrustGrantee (Buyer) Tarrant County College DistricRecording DOC D210032850Zoning E - Neighborhood CommercialHighest and Best Use CommercialUtilities All AvailableFlood Plain NoneLand Size (SF) 177,724Land Size (Acres) 4.0800Sale Price $592,375Sale Price Per SF $3.33Price Per Acre $145,191


Vacant LandNEC of Euless Blvd and Debra DriveEuless, Texas 76040

Sale (Deed) Date 11/2/2010Grantor (Seller) Donald H. DilmoreGrantee (Buyer) Mad Triangle, LLCRecording DOC D210279836Zoning TX - 10Highest and Best Use CommercialUtilities All AvailableFlood Plain NoneLand Size (SF) 234,920Land Size (Acres) 5.3930Sale Price $556,760Sale Price Per SF $2.37Price Per Acre $103,237


Vacant Land1900 L Don DodsonBedford, Texas 76021

Property was purchased by the neighboring office to controlland in the area.

Sale (Deed) Date 6/14/2012Grantor (Seller) JP Morgan Chase BankGrantee (Buyer) State National Insurance CompaRecording DOC D212142985Zoning S - Service CommercialHighest and Best Use CommercialUtilities All AvailableFlood Plain NoneLand Size (SF) 252,648Land Size (Acres) 5.8000Sale Price $1,073,754Sale Price Per SF $4.25Price Per Acre $185,130


Page 10

Comparable Land Sales Map


Page 11

The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data that can be verified from authoritative sources. The sales comparison approach is less reliable in an inactive market, or when estimating the value of properties for which no real comparable sales data is available. It is also questionable when sales data cannot be verified with principals to the transaction.

Subject Comp No. 1 Comp No. 2 Comp No. 3 Comp No. 4

Grantor - Hudgins Real… Warner C Lus… Donald H. Di… JP Morgan Ch…

Grantee - Inspiring Te… Tarrant Coun… Mad Triangle… State Nation…

Date of Sale 12/20/2012 12/8/2010 2/1/2010 11/2/2010 6/14/2012

Relative Location 1101 Cooks Lane Fort Worth Fort Worth Euless Bedford

Size (Acres) 5.500 9.368 4.080 5.393 5.800

Size (Square Feet) 239,580 408,070 177,724 234,920 252,648

Sale Price - $1,000,000 $592,375 $556,760 $1,073,754

Unit Price Per SF $2.45 $3.33 $2.37 $4.25

Property Rights 0% 0% 0% 0%

Financing 0% 0% 0% 0%

Condition of Sale 0% 0% 0% -10%

Date of Sale (Annual Adjustment) 0% 0% 0% 0%

Adjusted Price Per SF $2.45 $3.33 $2.37 $3.83

Location -10% -5%

Physical Characteristics

Size 5% 0%

Utilities 0% 0% 0% 0%

Zoning 0% 0% 0% 0%

Shape -5% -5% -5% -5%

Total Adjustments 0% -15% -10% -5%

Indicated Unit Value $2.45 $2.83 $2.13 $3.64

Estimated Unit Value $2.75

VALUATION GRID Representative Comparable Sales

Land Value Conclusion – Whole Property

In addition to the sales above, the property located at 7950 John T White road, approximately 200 feet north of the subject, sold in 3/18/2008 for $4.03 per SF. Each of the sales have been adjusted and the comparable sales provide a range of value indications from $2.13 to $3.64 Per SF with an average of $2.76 Per SF. With roughly equal weight on all sales, it is our opinion that the applicable unit value is $2.75 Per SF. This results in a concluded land value as follows:

Unit Price (Per SF) $2.75Land Area (SF) 239,580Indicated Land Value $658,845

Fee Area

1101 COOKS LANE CONCLUSION OF VALUE

Page 12

CONCLUSION OF VALUE – WHOLE PROPERTY

Reconciliation involves the analysis of alternative value indications to determine a final value conclusion. The value indicated by the traditional approaches is as follows:

Cost Approach N/A

Sales Comparison Approach (Land Only) $658,845

Income Capitalization Approach N/A

CONCLUSION OF VALUE

Based on the analyses and conclusions in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed herein, it is our opinion that the market value as of 12/20/2012, is

$660,000 (rounded)

1101 COOKS LANE Addenda A

Page A.1

ADDENDUM A

Certification

Qualifications of Appraiser(s)

Assumptions and Limiting Conditions


Page A.2

CERTIFICATION

We certify that, to the best of our knowledge and belief:

1. The statements of the facts contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions.

3. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest with respect to the parties involved.

4. I have not provided services regarding the subject property as an appraiser or in any other capacity within the prior three years.

5. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

6. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

7. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

8. My analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

9. Aaron H. Wright personally inspected the property on 12/20/2012.

10. Amber Dean provided significant real property appraisal assistance to the person(s) signing this certification.

11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

12. This appraisal is not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

13. I have not relied on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value.

14. It is our opinion that the subject does not include any enhancement in value as a result of any natural, cultural, recreational or scientific influences retrospective or prospective.

15. I have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP.

16. As of the date of this report, Aaron H. Wright has completed the continuing education program of the Appraisal Institute.

Aaron H. Wright Certified General Real Estate Appraiser Certificate # TX-1337782-G

Amber Dean Senior Appraiser Certificate # TX -1338513-Trainee


Page A.3

Professional Qualifications of Aaron H. Wright

Aaron H. Wright is the Principle and Senior Appraiser of AW Appraisals and Review Services, a full service real estate consulting and appraisal firm. Mr. Wright has been appraising real estate since May 2005 and is a Certified General Real Estate Appraiser in the State of Texas. Mr. Wright's responsibilities include appraisal and appraisal review of all types of properties. Mr. Wright has testified as an expert witness regarding real property value on numerous occasions in various courts of law. Prior to appraisal, Mr. Wright was the Principle of Wright Innovations, a construction and real estate investment company based in Fort Worth, Texas. Mr. Wright has performed valuation, consulting services and review on various properties including, but not limited to, shopping centers, apartment complexes, industrial facilities, raw and developed land, office towers and complexes, motels, hotels, residential and mixed-use developments. Mr. Wright has worked on numerous unique valuations, such as utility corridors, easement interests, partial and undivided interests, and billboards. EDUCATION:

Bachelor of Science in Accounting University of North Texas, Denton, Texas 2001 Key Courses:

• Finance • Accounting • Business Law • Real Estate • General Business

Completed the following courses offered by the Appraisal Institute: Basic Appraisal Principles Basic Appraisal Procedures Real Estate Finance, Statistics, and Valuation Modeling General Appraiser Sales Comparison Approach General Appraiser Site Valuation and Cost Approach General Appraiser Market Analysis and Highest and Best Use General Appraiser Income Approach/Part 1 General Appraiser Income Approach/Part 2 General Appraiser Report Writing and Case Studies Advanced Market Analysis and Highest and Best Use Advance Income Capitalization Advanced Concepts and Case Studies Completed the following courses offered by the International Right of Way Association: Business Relocation Relocation Assistance

PROFESSIONAL AFFILIATIONS

Licensed: Member:

Texas Certified General Real Estate Appraiser (TX-1337782-G) International Right-of-Way Association (IRWA) Appraisal institute Associate Member Director of Residents at Cordes and Howell HOA

ACTIVITIES

Mr. Wright is active in the Central Texas Chapter of the Appraisal Institute and International Right of Way Association.


Page A.4

PROFESSIONAL QUALIFICATIONS OF Amber Dean

EXPERIENCE:

Mrs. Dean is a Senior Appraiser for the AW Appraisals and Review Services, a full service real estate consulting and appraisal firm. Prior to joining AW Appraisals and Review Services, Mrs. Dean worked for an appraisal firm in Fort Worth for two and a half years. Prior to appraisal, she was in the residential real estate market for a number of years. Mrs. Dean has assisted in valuation of various properties including raw and developed land, apartment complexes, office buildings, convenience stores, restaurants, industrial facilities, and shopping centers, mixed-use and special-purpose properties. Mrs. Dean has worked on numerous unique valuations, such as utility corridors, easement interests, partial and undivided interests.

PROFESSIONAL ACTIVITIES:

License Member:

Texas General Appraiser Trainee (TX-1338513-T) Appraisal Institute Associate Member North Texas Real Estate Alumni Young Leadership Council

EDUCATION:

University of North Texas Bachelor of Business Administration, Real Estate, Magna Cum Laude, 2008 Coursework included real estate law, real estate finance, real estate valuation real estate investment, and real estate property management. Completed the following courses of study and exams offered by the Appraisal Institute: Appraisal Principles Appraisal Procedures Standards of Professional Appraisal Practice (USPAP) General Appraiser Market Analysis and Highest and Best Use Cost Approach and Site Valuation Business Practices and Ethics General Appraiser Report Writing and Case Studies General Appraiser Sales Comparison Approach General Appraiser Income Approach 1


Page A.5

Assumptions and Limiting Conditions

That the date of value to which the opinions expressed in this report apply is set forth in the Letter of Transmittal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions herein stated. That no opinions are intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in this report. That no opinion as to title is rendered. Name of ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens, encumbrances, easements, and restrictions except those specifically discussed in this report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use. That no engineering survey has been made by the appraiser. Except as specifically stated, data relative to size and area were taken from sources considered reliable and no encroachment of real property improvement is assumed to exist. That maps, plats, and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within this report. They should not be considered as surveys or relied upon for any other purpose. That no detailed soil studies covering the subject property were available to the appraiser. Therefore, premises as to soil qualities employed in this report are not conclusive, but have been considered consistent with information available to the appraiser. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and I have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in my appraisal. The property is appraised as though free and clear, under responsible ownership, and competent management. All existing liens and encumbrances have been disregarded. Unless otherwise stated herein, all of the improvements previously described were considered operational and in good condition. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. Unless stated otherwise in this report, no presence of hazardous materials on or in the property was observed by the appraiser. The appraiser has no information on the existence of such materials and is not qualified to detect same. The presence of such materials on or in the property could affect the appraiser's opinion of market value. However, the value stated herein is based on the assumption that no hazardous materials are present on or in the property, and the appraiser accepts no responsibility for determining such condition. The client is urged to retain an expert in this field if there is any question as to the existence of hazardous material. Any information furnished to us by others is believed to be reliable, but I assume no responsibility for its accuracy. Possession of this report, or a copy thereof, does not carry with it the right to publication, nor may it be used for any purpose, by any but the intended user, without the previous written consent of the appraiser or the intended user and, in any event, only in its entirety. This appraisal does not require us to give testimony in court or attend on its behalf unless arrangements have been previously made therefore. If condemnation proceedings become necessary, this appraiser will testify to an updated opinion reflecting the value of the whole property, the part to be acquired, the value of the entire remainder prior to the acquisition and the value of the entire remainder after the acquisition, reflecting any change in the size or character of the land and/or changes in number and/or conditions of the improvements located thereon. The distribution of the total valuation in this report between land and improvements apply only under the existing programs of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. The value is reported in dollars on the basis of the currency prevailing at the date of this appraisal. I have no present or contemplated interest in the property appraised.


Page A.6

My compensation for making this appraisal is in no manner contingent upon the value reported. That the appraiser assumes no responsibility for determining if the property lies within a flood hazard area and its consequences to the property. It is advised that a Topographic Survey be obtained and local officials be contacted. That my analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as promulgated by the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. The appraisal of the Whole Property considered all factors willing, knowledgeable buyers and sellers would consider in negotiating the purchase price of the property except the influence of the proposed project. The exclusion of the project influence is a Departure from USPAP and is allowed through Jurisdictional Exception. This exception was made under the Jurisdictional Exception provision and is also considered a hypothetical condition under Uniform Standards of Professional Appraisal Practice. The appraisal of the Remainder considered all factors willing knowledgeable buyers and sellers would consider in negotiating the purchase price of the property including the use to which the part taken is to be put and the effects of the condemnation but excluded the effects of all non-compensable elements. Such exclusion is typical appraisal practice in eminent domain situations. Information received from the Texas Department of Transportation pertaining to the size and description of the subject property and partial acquisition is assumed to be correct. Additional information, which assisted me in the production of this appraisal, has been retained in my files. No consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered.

1101 COOKS LANE Addenda B

Page B.1

ADDENDUM B

Definitions

1101 COOKS LANE Addenda B

PAGE B.2

DEFINITIONS These definitions have been extracted, solely from the following:

� Uniform Standards of Professional Appraisal Practice, 2010-2011 Edition (USPAP)

� The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, Chicago, Illinois, 2010 (Dictionary)

� The Appraisal of Real Estate, Thirteenth Edition, Appraisal Institute, Chicago, Illinois, 2008

Appraisal The act or process of developing an opinion of value; an opinion of value. (USPAP)

Easement Interest An interest in real property that transfers use, but not ownership, of a portion of an owner's property. (The Appraisal of Real Estate)

Effective Date The date on which the analyses, opinions, and advice in an appraisal, review, or consulting service apply. (Dictionary)

Exposure Time 1. The time a property remains on the market. 2. The estimated length of time the property interest being appraised would have been offered on the market prior to the

hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions. (Dictionary)

Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Dictionary)

Highest and Best Use The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. Alternatively, the probable use of the land or improved property-specific with respect to the user and the timing of the use- that is adequately supported and results in the highest present value. (Dictionary)

Leased Fee Interest An ownership interest held by a landlord with the rights of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the lessee are specified by contract terms contained within the lease. (Dictionary)

Leasehold Interest The interest held by the lessee (the tenant or renter) through a lease transferring the rights of use and occupancy for a stated term under certain conditions. (Dictionary)

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.”

1101 COOKS LANE Addenda C

Page C.1

ADDENDUM C

Survey Maps And Exhibits


Page C.2

Flood Map


Page C.3

Zoning Map


Page C.4

Aerial Google Earch


Page C.5

Tax Map

1101 COOKS LANE Addenda D

Page D.1

ADDENDUM D

Property Information


Page D.2


Page D.3

2012-113 - 1101 cooks lane...1101 cooks lane fort worth, texas 76120 dear mr. silverman we are...

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