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We are convinced that the lease adjustment and adjustments
for motivated sellers are well founded and shall apply a positive
adjustment to LB3 of 10 percent and shall apply a positive
adjustment to LB4 and LB5 of 10 percent.
After applying the adjustments we find proper to the
comparables, the adjusted price per square foot for the five
comparables is as follows:
LB1 LB2 LB3 LB4 LB5
Price Per Square Foot$12.69 $28.47 $41.58 $6.08 $12.17
Adjustments
- Location 0% (10%) (10%) (10%) (10%)
- Quality 10% 0% (20%) 0% 0%
- Size 10% (10%) (10%) (15%) 0%
- Condition 0% (10%) (25%) (5%) (10%)
- Other 0% 0% 10% 10% 10%
- Time (5%) 0% (5%) 0% 0%
Total Adjustment 15% (30%) (60%) (20%) (10%)
Adjusted Price Per
Square Foot $14.59 $19.93 $16.63 $4.86 $10.95
Based upon our review of all the valuation evidence, giving
due consideration to our observation at trial of the witnesses
for both parties and considering their testimony and the expert
reports, we conclude that the Litton building was worth $15 per
square foot for a total value of $723,225.
C. The Parcel of 30.3 Acres
Mr. Cantrell used the development approach to appraise the
parcel of 30.3 acres. He determined the fair market value of the
parcel of 30.3 acres as of December 15, 1992, to be $605,000.
According to Mr. Cantrell, the development approach, which
discounts the income stream from lot sales over a period of time,
is the equivalent of an income approach. As we have previously
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