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According to petitioner's records, the house at 1030 Pennsylvania
Avenue in Phase 1 (which was completed on or before 7/23/87 and
sold 2/28/89) was the model home; so the long holding period for
this house is not significant. Treating the final inspection
date as the date of completion and the sale date and excluding
the sale of the model home, petitioner held the houses in Phase 1
for about 5.3 months apiece and held the houses in Phase 2 for
about 1.3 months apiece. In light of the evidence, we are not
persuaded by Mr. Baker's testimony that sales of the 14 houses
were unacceptably slow.
Meadowlark Homes' Success with the Exchange Property
Respondent uses Howard Kanengiser's (of Meadowlark Homes)
testimony to establish the market for the development of the
Exchange Property. Meadowlark Homes experienced brisk sales in
1989 in regard to the first 24 homes. In 1990, due to the
recession, Meadowlark Homes experienced a drop off in sales in
regard to the second 24 homes. Meadowlark Homes made
approximately $630,000 in profit on the development. This was
approximately one-third less than Meadowlark had anticipated.
In regard to Meadowlark's slower sales for the second phase,
petitioner argues that this supports its position that it held
the Exchange Property for investment because Mr. Baker foresaw
the poor sale of homes in Beaumont based on (i) the poor sales
record on the first 14 homes, (ii) the fact that Beaumont is a
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