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Second, the Court recognized Steven Jon Shanker, C.P.A. (Mr.
Shanker), as an expert on the market absorption discount. The estate
retained the accounting firm of Coopers & Lybrand, L.L.P., to
ascertain the rate of the market absorption discount that applied to
each parcel of the subject property, and Mr. Shanker, a partner in
that firm who specializes in valuation, was assigned the job.
Mr. Shanker has a Bachelor of Arts in Accounting and a Master of
Business Administration in Taxation, and he is a senior member in the
business valuation area of the American Society of Appraisers.
He has never appraised real estate or applied a market absorption
discount to real estate (before the instant case), but he has valued
many entities whose assets included real estate and has been involved
in numerous blockage situations related to the valuation of stock.
Many (if not all) of the entities valued by Mr. Shanker were his
clients.
Mr. Shanker concluded that a 20-percent market absorption
discount applied to each parcel of the subject property. In so
doing, he reviewed the appraisers' appraisals and financial,
economic, and census data on Genesee County real estate. He
analogized an underwriter's role in disposing of stock to the role of
the Resolution Trust Corporation (RTC) in disposing of real estate;
Congress formed the RTC to dispose of real estate held by insolvent
savings and loan institutions (S&L's). He concluded that "It would
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