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these adjustments, Mr. Talmage examined the size of the
comparable interests, lack of a market for the interests, special
circumstances surrounding their sale, and whether there was a
forced sale.
2. Ms. Simons’ Report
Ms. Simons based her fractional interest discount on the
costs to partition the properties. Ms. Simons recognized that
there are three methods to partition property in California: (1)
Physical division; (2) sale of property and division of proceeds;
and (3) partition by appraisal. See Cal. Civ. Proc. Code secs.
873.210, 873.510, 873.910 (West 1980). Ms. Simons determined
1359 Bay could be physically divided in 6 months at a cost of
$20,000. Ms. Simons determined the fair market value of the
interest, deducted the partition costs, and accounted for the
delay associated with the physical division of the property using
a discounted cash-flow analysis assuming a 6.5-percent discount
rate.
Ms. Simons determined 101 Capra and 3737 Fillmore would
require a partition sale and division of the proceeds. Ms.
Simons determined that the partition sales would be relatively
simple, cost $20,000 each, and would take approximately 6 months
to complete. Ms. Simons assumed these properties would be listed
in the ninth month and sold in the twelfth month under her
blockage discount model and applied the blockage discount model
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