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of Spruill v. Commissioner, 88 T.C. 1197, 1229, 1233 (1987);
Utter-McKinley Mortuaries v. Commissioner, supra; Mark R. Switz,
Inc. v. Commissioner, supra. There is no indication in the
record that the lease from the American Red Cross to Mr. Cummings
was not negotiated at arm's-length. Thus, the lease payment
($97,975) is highly probative evidence of rental value of these
premises during the years in issue.
4. Respondent's Expert
Respondent's expert, Steve Pietka (Pietka), concluded that
the fair rental values of the 4200 S.W. Corbett St. property were
$120,087, $124,896, and $129,891 for fiscal years, 1989, 1990,
and 1991, respectively.
Petitioner criticizes Pietka's comparables because they are
not located near 4200 S.W. Corbett Street. We disagree because
there are no similar leased properties in that area. Petitioner
points out that its experts said that the fair rental values of
Pietka’s comparables in North Portland and Beaverton are
generally lower than those in the 4200 S.W. Corbett Street area.
We disagree for reasons stated in par. 5, below. We believe
Pietka's comparables are more like the 4200 S.W. Corbett St.
property than comparables considered by petitioner's experts.
Petitioner contends that Pietka did not consider the fact
that petitioner could gradually move from the old property to
4200 S.W. Corbett Street. Petitioner did not state how much
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