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County. He has testified as an expert in probate court, circuit
courts, Federal bankruptcy court, and this Court.
Mr. Hodge concluded that a market absorption discount did not
apply to any of the apartment complexes mainly because no discount
would be necessary in order to market the properties, given an
adequate and standard marketing period of 4 to 6 months.14 Before
writing his report, which was received in evidence, Mr. Hodge toured
the apartment complexes, and he researched extensively the economics
and demographics of both Genesee County and the apartment complexes
in that county. He also spoke to potential investors and to brokers
as to the amount of time that the apartments would have to be
marketed in order to sell them.
Mr. Hodge spent approximately 90 hours, or more than twice the
amount of time spent by Mr. Shanker, in examining the applicability
of a market absorption discount to the apartment complexes.
Mr. Hodge ascertained from market data that properties such as the
apartment complexes have an appeal outside the general community, and
that one- or two-apartment complexes in Genesee County which were
similar to the complexes at issue sold to nonindividual investors
between the years 1990 and 1995. Mainly, Mr. Hodge concluded,
investors purchase apartment complexes like the ones at hand as part
of an investment vehicle such as a real estate investment trust.
14 In fact, Mr. Hodge concluded, an investor could pay a
premium to acquire all three complexes.
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