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category of the properties in question, and that "case research
was limited to the 1985-88 time frame" for the commercial,
multifamily residential, and single-family residential categories
of those properties. However, he does not adequately explain why
different time frames were used for the industrial and for the
commercial, multifamily residential, and single-family residen-
tial categories of the remaining unimproved real properties.
Furthermore, while Mr. Egan claims to have considered the time
period consisting of 1985 through 1988 with respect to the two
residential categories of properties in question, in fact he
used, with no explanation, comparable sales transactions from
1984 through 1987 for the multifamily residential category and
from 1984 through 1986 for the single-family residential cat-
egory.
We also found the basis on which Mr. Egan calculated the
discount rate that he applied to be unacceptable. Mr. Egan
calculated that rate based on the rate of return on the sale by a
partnership between 1990 and 1995 of industrial real estate
situated in an industrial park in the metropolitan New Orleans
area, which he adjusted to take account of the respective pro-
jected absorption periods and risks that he determined for the
various categories of the remaining unimproved real properties.
That sale took place well after the valuation date of February 7,
1988, was not reasonably foreseeable on that date, and should not
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