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in December 1987 by the Packard Foundation, which then completely
renovated the theater and reopened it for the exhibition of
classic films.
We think the sale of the San Jose Fox and the sale of the
Stanford establish a benchmark by which to value the Redwood City
Fox. It is true that these properties did not have adjacent
commercial space. However, the value of the Redwood City Fox
would be no less than the value of its theater component. And we
find that the theater component can be reliably valued by looking
to the sales of the San Jose Fox and the Stanford. The fact that
the theater component could not be purchased separately from the
retail/office component and vice versa, is, in our view, an
important element deserving of consideration in the process of
determining the fair market value of the Redwood City Fox.
However, we think that the adjacent commercial space does not
preclude valuation on the basis of the sales of comparable
properties. All of the experts considered these transactions to
represent comparable sales. Additionally, all of the experts
presented evidence of sales of retail and office property which
they considered comparable to the retail/office component of the
Redwood City Fox. And finally, all the experts arrived at a fair
market value for the Redwood City Fox by valuing the theater
component separately from the retail/office component, and then
adding the resulting values together. We see no need to deviate
from the approach adopted by the experts in order to reach our
ultimate determination of fair market value.
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