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represented the highest and best use of the property, as
improved, on the valuation date.
2. Land Valuation
Mansbach chose 5 sales of commercially zoned vacant land as
comparables to value the underlying land.34 After adjustments
for factors such as size, location, date of sale, and buyer
motivation, Mansbach determined a land value for the site, as if
vacant, of $25.00 per square foot. Assigning 26,584 square feet
to the property, Mansbach estimated the value of the underlying
land to be $665,000 (rounded).
3. Comparable Sales Approach--Theater
For the comparable sales approach, Mansbach viewed as
comparables the sales of the San Jose Fox, the Circle Star
Theater, and the Laurel Theater. Mansbach also considered
Jacobs' May 1981 purchase of the Redwood City Fox.
The Laurel Theater was located in the downtown district of
San Carlos, California. The property consisted of a 17,500-
square foot building on a 27,759-square foot site, which included
a 10,259-square foot parking lot. The improvements were built in
1949, and consisted of the Laurel Theater and three retail
stores. The improvements were not architecturally significant.
The property was purchased in March 1984 for $775,000, and again
34 Mansbach's comparable land sales include 2 sales of the
same property, which occurred 12 months apart. At the time of
the initial sale, the site was improved with a vacant bakery
building.
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