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from which they deducted $69,000, for a net addition of $64,500.
To this figure, they added 7 percent for General Conditions and
5 percent for Profit, for a total upward adjustment of $72,240 to
the $5,425,000 estimate in the Adamson report, for a total
replacement cost estimate of $5,497,240 for theater portion, Unit
A, of the Redwood City Fox.
Ingram/Ewing next estimated the “Projected Restoration and
Deferred Maintenance Cost” of repairing/restoring the Redwood
City Fox to a condition they term “Market Condition”.
Ingram/Ewing explained their methodology as follows:
Appraisal of this property employs the Cost Approach
which is calculated by estimating the replacement cost
less depreciation, added to the estimated land value.
Since this property is in the process of being
restored, it is appropriate to project the costs of
restoration or rehabilitation to bring it to the
condition that it may be offered at market rent or
market sale for it[s] highest-and-best use, which we
will call “Market Condition”. These projected costs
are then deducted as capital expenses from the
estimated market value of the property as if the
property was completely rehabilitated and ready for
market. The projected costs are estimated separately
for each of the four unit spaces * * * .
Ingram/Ewing estimated the cost of “restoration and maintenance”
for the theater portion to be $1,222,045. They estimated the
cost of “restoration and maintenance” for the retail/office
portions, Units B, C, and D, to be $55,295.
Ingram/Ewing next estimated accrued depreciation, both
physical deterioration and functional obsolescence, for the
Redwood City Fox. On the valuation date of December 31, 1986,
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