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reproduction cost new of the improvements using the Marshall
Valuation Service. The total, including land value, was
$988,973. From that figure, he subtracted accrued depreciation
(physical depreciation and external obsolescence) totaling
$453,759 to arrive at a value of the subject Property of
$535,215.
For the capitalization-of-earnings approach, Aguilar used 3
lease comparables to estimate market rent. Two lease comparables
were located in Baton Rouge. One lease comparable was the
sublease of 3203 Johnston Street to Courtesy Motors by Mr.
Lanier. Aguilar determined a lease rate for the Property of
$2.90 per square foot. This resulted in an annual gross
operating income of $60,000, given Aguilar's estimation of the
Property's gross building area of 20,690 square feet. No
expenses were subtracted from this figure since Aguilar assumed a
net lease for the Property. Capitalization at a rate of 11.83
percent yielded a value of $507,059 for the Property. From that
figure, Aguilar subtracted the estimated cost to remove the 2
underground storage tanks of $50,000 to arrive at a value of
$457,000 (rounded).
Aguilar decided against using the market-data approach in
part because he concluded that reliable comparable sales data on
improved properties was unavailable.
Aguilar's report contains several flaws which preclude us
from accepting it in its entirety. Among other things, Aguilar
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