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Appraisal Report Appraisal Report As of January 9, 2019 Prepared for DALLAS I.S.D. 823-Real Property Management 3701 S. Lamar Street Dallas, Texas 75215 Attention: Orlando Alameda, Director Purchase Order No.: 724873 Appraisal Report Phillis Wheatley Elementary School 2908 Metropolitan Avenue Dallas, Dallas County, Texas 75215 Prepared By Bryan E. Humphries & Associates Real Estate Appraisers & Consultants 4054 McKinney Avenue, Suite 210 Dallas, Texas 75204 T: 214-528-7584 Fax: 214-528-2921 BRYAN E. HUMPHRIES & ASSOCIATES REAL ESTATE VALUATION AND SERVICES January 18, 2019 Dallas I.S. D. 823-Real Property Management 3701 S. Lamar Street Dallas, TX 75215 Attention: Orlando Alameda, Director Reference: Appraisal Report Purchase Order No.: 724873 Phillis Wheatley Elementary School 2908 Metropolitan Avenue Dallas, Dallas County, Texas 75215 Dear Mr. Alameda: We have inspected and appraised the property as described herein. Conditions pertinent to or indicative of the value of the property were investigated. This report sets forth our findings and conclusions derived there from, together with various exhibits that are considered necessary to explain the processes followed in this appraisal. To the best of my knowledge, this appraisal is in conformance with the current appraisal requirements of the Appraisal Institute, the Appraisal Foundation's Uniform Standards of Professional Appraisal Practice (USPAP), Title XI of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) 12 CFR, Part 34.44 and Clients appraisal instructions. The appraisal was based upon a personal inspection of the property and the investigation and analysis of data obtained for this assignment. The appraisers are unbiased with respect to the parties involved and have no present or contemplated future interest in the property appraised. Accordingly, statements are true to the best of the appraisers' knowledge and compensation for making the appraisal has in no manner been contingent upon the value conclusions reported herein. 4054 McKinney Avenue, Suite 210, Dallas, Texas 75204 (214-528-7584); Fax (214-528-2921) Page-2 Phillis Wheatley Elementary School Building 2908 Metropolitan Avenue, Dallas, TX 75215 Based upon the inspection of the property and the investigation and analysis of data obtained, the appraisers have formed the opinion that the Market Value "As Is" of the Fee Simple Estate of the Subject Property, assuming a marketing period of twelve months, as of the effective date, and subject to the definitions, certifications and limiting conditions set forth in the attached appraisal report, is: “As Is” Fee Simple Market Value as of January 9, 2019 $225,000 *See Summary of Facts for value definition. Respectfully submitted, BRYAN E. HUMPHRIES, INC. Bryan E. Humphries, MAI Michael L. Seifert President Appraiser TX-1320676-G TX-1323820-G MLS/D-46-U/18-3867 TABLE OF CONTENTS SUMMARY OF FACTS .......................................................................................................... I-1 MARKETING/EXPOSURE PERIOD ..................................................................................... I-3 SUBJECT PROPERTY OWNERSHIP HISTORY ................................................................. I-4 ASSUMPTIONS AND LIMITING CONDITIONS ................................................................ I-5 USPAP REQUIREMENTS ...................................................................................................... I-9 APPRAISAL PROCEDURE .................................................................................................. I-13 GENERAL INFORMATION REGIONAL ANALYSIS ........................................................................................................ II-1 NEIGHBORHOOD TRENDS ............................................................................................... III-1 Neighborhood Map SUBJECT PROPERTY ......................................................................................................... IV-1 Photographs, Tax Plat, Zoning Map, Aerial Map, Flood Plain Map, Site Plan, Floor Plans, Roof Plan APPRAISAL HIGHEST AND BEST USE .................................................................................................. V-1 LAND VALUE ESTIMATE ................................................................................................. VI-1 COST APPROACH .............................................................................................................. VII-1 INCOME CAPITALIZATION APPROACH .................................................................... VIII-1 SALES COMPARISON APPROACH .................................................................................. IX-1 CORRELATION & CONCLUSIONS ................................................................................... X-1 CERTIFICATION ................................................................................................................. XI-1 ADDENDA QUALIFICATIONS HISTORICAL DESIGNATION SUMMARY OF FACTS Last Date of Inspection/Appraisal: January 9, 2019 Date of Report: January 18, 2019 Date of Preparation December 11, 2018 – January 18, 2019 PHYSICAL DESCRIPTION Type Property: Phillis Wheatley Elementary School Building 2908 Metropolitan Avenue Dallas, Dallas County, Texas 75215 Lot Areas: Combined Site: 1.7766 acres, or 77,387-SF Zoning: PD-595/R-5(A)/Historic Overlay District No. 61 Improvements: 28,581-SF No. of Stories: 2 Year of Construction: 1929 Valuation Highest and Best Use: “As If Vacant”: Future single-family residential or school/church use development “As Improved”: Current improvements Rights Being Appraised: Fee Simple Estate Estimated Value by Cost Approach: “As Is” $200,000 Estimated Value by Sale Comparison Approach: “As Is” $250,000 Final Value Estimates – Fee Simple Estate “As Is” 1/09/2019: $225,000 Humphries & Associates I - 1 D-46-U/18-3867 Summary of Facts, continued Definition of Market Value “As Is” An estimate of the Market Value of a property in the condition observed upon inspection and as it physically and legally exists without hypothetical conditions, assumptions, or qualifications as of the date the appraisal is prepared. Time Frame “As Is” January 9, 2019 Humphries & Associates I - 2 D-46-U/18-3867 MARKETING/EXPOSURE TIME Marketing Period and Exposure Time are related terms that are useful in narrowing the definition of market value. The definition of market values assumes “A reasonable time is allowed for exposure in the open market.” The appraised value herein is as of a specified date (January 9, 2019) and assumes the property has had adequate exposure to the market and pool of potential buyers to achieve its market value as of that date. The “adequate exposure” is termed Exposure Time and counts backwards from the date of value, and is assumed to have already taken place. It also assumes several other implicit items, including the willingness of the seller to sell at market value, competent marketing to achieve exposure to potential buyers, and the continued use of the property consistent with the premises and highest and best use conclusions in this appraisal. Exposure Time can be supportable based on the actual actions of the market, and reflected in the market sales data. Marketing Time is forward-looking from the date of the appraisal, and is the amount of time a prospective purchaser would assume to take place to sell the property for the appraised value. Marketing Time also assumes willingness to sell at current values and anticipates changes to market conditions (if any) occurring after the value date. Typically, the Marketing Time will be equal to Exposure Time, unless there are extenuating circumstances in the market. Unpredictable events may occur resulting in a marketing time that, in hindsight, was longer or shorter than that which could be reasonably estimated at this point in time. “As Is” Highest & Best Use There is minimal survey data available that report marketing periods for school buildings. Based upon the conversations with local real estate brokers and owners and review of the market sales that reported marketing times, along with consideration for the estimated value arrived at herein in relation to the Subject Property’s location, an estimated exposure period of 12 months is considered appropriate for the Subject. In the future, market conditions in the Subject area are anticipated to remain relatively static, with potential for improvement. The estimated future marketing time is also considered to be 12 months. Humphries & Associates I - 3 D-46-U/18-3867 SUBJECT PROPERTY OWNERSHIP HISTORY The Appraisal Institute requires appraisals to consider, analyze, and disclose in reasonable detail any prior sales of the property being appraised that occurred within the three-year time period preceding the date of appraisal and to consider, analyze, and disclose in reasonable detail any current agreement of sale, option, or listing of the property being appraised. According to the Dallas Central Appraisal District, the Subject Property is currently owned by Dallas I.S.D. Dallas I.S.D. has owned the lot for more than five years. To our knowledge, no other sale transactions or transfers of ownership have occurred with the Subject Property in the past three years and the property is currently listed for sale without a specific price. Humphries & Associates I - 4 D-46-U/18-3867 ASSUMPTIONS AND LIMITING CONDITIONS 1. It is assumed that title to the property herein appraised is good and merchantable, and in fee simple. The value is reported
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