Certified values on the Collin Central Appraisal District indicate the adjusted values of two parcels of land in the Adriatica Development. The land owned by Independent Bank is now assessed at $796,000, or $720,000 an acre versus the noticed value of $1,400,000. The Large 13 acre tract owned by SB Market JV is now assessed at $1,750,000 (or $130,000 an acre) versus the notified value of $2,000,000. I find it hard to believe that the Independent Bank paid nearly $16.00 per square foot, but that may very well be the case. The Panda Express and Compass 1 acre tracts remain at $20.00 per square on the land, meaning they possibly paid more if there was no protest filed.

Loopnet, a service that lists commercial property for sale and lease shows that current rental rates for Mr. Blackard’s Kastel (Keller Williams) Building to be $36.00 per square foot full service. Based on my experience and knowledge of commercial buildings, it is not too far fetched to estimate the cost of this building exceeds $6,500,000. If the 30,000 square foot building were 100% leased at the $36.00 per square foot rental rate, the typical investor would estimate the value of the building to be in the $5,000,000-$5,500,000 range. Realistically using a 10 % vacancy rate the value would be in the $4,800,000 to $5,000,000 range. My observation? This building is a project that Mr. Blackard wants and is willing to build to his requirements regardless of profit. My prediction is that this building will need to lower its rental rates to attract tenants or it will sit with a high vacancy rate. I believe realistically the rates for this building should be in the $20-$25 range based on the surrounding office rents. If this building can only command $25 per square foot, it would probably support a sale price of $3,500,000-$4,000,000 to a savvy investor.