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Estimated Value by the Cost Approach $3,773,1232
After Deduction for Cost of Restoration
1 Ingram/Ewing considered the theater space to be in "good condition",
and that, after the planned restoration, it would be in "excellent condition".
Thus, relying on the condition of other operating historic theaters, the
Marshall Valuation Service, and their own judgement, Ingram/Ewing concluded
that the theater has an effective age of 18 years, which results in 19-percent
depreciation.
2 In their appraisal report in a table titled “Summary of Values”,
Ingram/Ewing state that the value estimate under the replacement cost approach
for the theater is $3,776,390. No explanation is given to account for the
difference between this figure and the $3,773,123 figure calculated above.
Consequently, we use the $3,773,123 figure.
Under the replacement cost approach, Ingram/Ewing valued
the retail/office space at $1,472,366, computed as follows:
Cost Approach for Retail/Office Space
Estimated Actual Gross Floor Area 17,518 square feet
Estimated Replacement Cost $1,591,000
Less Provision for Depreciation at 15%1 238,650
(Utilizing Marshall Valuation Service and
computed after restoration)
Net Depreciated Value of Improvements 1,352,350
Add Estimated Land Value at 175,311
$27 per square foot
Total Estimated Value by Cost Approach 1,527,661
After Provision for Depreciation as
Completed with Planned Restoration
Less Estimated Restoration and 55,295
Maintenance Cost
Estimated Value by Cost Approach After $1,472,366
Deduction for Cost of Restoration
1 Ingram/Ewing considered the retail/office space to be in "very good to
excellent condition" and thus concluded that the effective age of the
retail/office improvements on the valuation date was 18 years, which resulted
in a depreciation estimate of 15 percent based on the Marshall Valuation
Service.
Thus, under the replacement cost method, Ingram/Ewing valued
the Redwood City Fox at $5,245,489.
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