Jane Crocker, F.K.A. Jane C. Jacobs, et al. - Page 16

                                       - 105 -                                        
               The County of San Mateo leased the East retail space for the           
          period of March 2, 1987, to December 1, 1987.  Rent was $4,720              
          per month, with the County of San Mateo paying utility expenses,            
          including gas, electrical, and janitorial services.  However, the           
          Players were responsible for paying all real property taxes.                
          Based on our finding of 5,086 rentable square feet, the rental              
          rate paid by the County of San Mateo equates to $.93 (rounded)              
          per square foot per month.                                                  
               We believe it is appropriate to estimate the value of the              
          retail/office component of the Redwood City Fox by incorporating            
          the actual income from the below-market Jacobs lease and from the           
          County of San Mateo lease to calculate the total gross income of            
          the property.  We find that a vacancy and collection loss of 5              
          percent is appropriate under the circumstances to arrive at                 
          effective gross income.  However, we agree with Carneghi that the           
          vacancy and collection loss should not be deducted from the space           
          subject to the Jacobs lease, because of the nature of the lease.            
               From effective gross income, we agree with Mansbach that               
          deductions for management expenses of 3 percent of effective                
          gross income and for reserves of 2 percent of effective gross               
          income are appropriate.  We also find that a deduction for the              
          real estate taxes the landlord must pay under the County of San             
          Mateo lease to be appropriate.49  Finally, with respect to the              

               49 Based on information provided by Mansbach in his                    
          appraisal report, we estimate the deduction for the real estate             
          taxes to be $4,067.  We note that no deduction for real estate              
                                                             (continued...)           


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