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entered in that agreement as well as any space that became vacant
when existing leases expired or tenants defaulted under their
leases.
The Marshall and Stevens appraisal report on which PFI
relied in evaluating, inter alia, the reasonableness of the 11.5-
month period of zero rent provided by the lease agreement con-
tained discussions of various matters, including the condition of
the Denver office market at the time the lease agreement was
executed, the practice in that market of granting rent holidays
and other lease concessions in order to attract lessees, and
specific situations in that market in which the lessors of
commercial office buildings had granted periods of free rent and
other lease concessions to lessees. At the time Partnership and
BCE entered into the lease agreement, Partnership and its part-
ners PFI and BCE were aware of, inter alia, those matters.
At the time the lease agreement was executed in June 1988,
the Denver office market was suffering the aftereffects of
overbuilding that occurred during the late 1970's and early
1980's. Consequently, at that time, the Denver office market was
experiencing high vacancy rates of approximately 27 percent, and,
in order to attract lessees, lessors were offering prospective
lessees various types of concessions and low rental rates. Prior
to the execution of the lease agreement in June 1988, the lessor
under the existing leases for space in Republic Plaza had typi-
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