Jane Crocker, F.K.A. Jane C. Jacobs, et al. - Page 62

                                       - 52 -                                         
          vicinity of the Redwood City Fox.  All the sales, except for one,           
          occurred prior to the valuation date of December 31, 1986.  The             
          selected unit of comparison was price paid per square foot of               
          gross building area.  The elements of comparison included seller            
          financing, date of sale, building size, physical condition,                 
          parking, and location.  After adjustment, Mitten/Reynolds                   
          concluded that the value for the retail/office component of the             
          Redwood City Fox was $110.00 per gross square foot, for an                  
          indicated value under the comparable sales approach of                      
          $2,000,000, rounded (18,489 square feet times $110.00 per square            
          foot).                                                                      
               In summary, under the comparable sales approach,                       
          Mitten/Reynolds concluded that the value of the Redwood City Fox            
          was $3,300,000 for the theater, $2,000,000, for the                         
          retail/office, for a total of $5,300,000.                                   
                    5.  Income Capitalization--Retail/Office                          
               Mitten/Reynolds concluded that the income capitalization               
          method was not appropriate for the theater.                                 
               With respect to the retail/office space, Mitten/Reynolds               
          examined the lease rates for 8 properties (lease comparables).              
          Seven of the lease comparables were rented on a fully serviced27            
          basis, while only one was on an unserviced basis.  Consequently,            
          Mitten/Reynolds estimated the market rent of the Redwood City Fox           

               27 “Fully serviced”, in the context of commercial leases, is           
          one in which the landlord pays all operating expenses.                      




Page:  Previous  42  43  44  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  61  Next

Last modified: May 25, 2011