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The Landings Fox Hill Stonehenge Total
Value of apartment complexes as
ascertained by the appraisers $8,172,000 $9,190,000 $4,710,000 $22,072,000
Market absorption discount @ 15% (1,225,800) (1,378,500) (706,500) (3,310,800
Value of apartment complexes
after discount 6,946,200 7,811,500 4,003,500 18,761,200
Other assets 48,257 188,975 6,465 243,697
Total liabilities (6,768,483) (6,462,079) (3,640,382) (16,870,944)
Net fair market value 225,974 1,538,396 369,583 2,133,953
Respondent made the following relevant adjustments:
Reported Value Determined Value
Eldon L. Auker Enterprises $641,000 $703,000
Auker Investments, Inc. 467,000 512,000
K.A.A., Inc. 0 14,000
Grand Pointe, Inc. 18,000 33,000
Apartment complexes 2,133,953 5,727,267
Respondent's adjustments stem primarily from disallowing the market
absorption discounts claimed by the estate. For some unexplained
reason, respondent did not adjust the large discounts ascertained by
Mr. Stockdale for lack of marketability and lack of control.
During his life, the decedent helped administer all the subject
property, and he was a focal point in each of the businesses that
held the property. Shortly after his death, many people expressed
interest in whether the subject property would be sold or retained by
the estate or beneficiaries thereof. These interested persons
included local and Detroit-based real estate agents who inquired as
to whether the subject property would be marketed for sale, and
whether they could get information on any of the real estate that
would be, or was, offered for sale. The estate anticipated that
other people would be calling with respect to the subject property.
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