Estate of Ethel Josephine Spowart Hinz - Page 38




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          improvements, and parking and utilities.  Unlike the                        
          corresponding portion of his report as to the Quito Property, see           
          supra, Atkinson provided a brief explanation of why he made each            
          of the matrix adjustments to the Lafayette Property comparable              
          sales.                                                                      
               Atkinson’s matrix contains 36 entries, of which 25 are other           
          than zero.  In the case of 14 of these nonzero entries, Atkinson            
          stated that the comparable property is inferior to the Lafayette            
          Property but he made a downward adjustment to the comparable                
          property’s sale price.17  Atkinson used his matrix to conclude              
          that the 400,000 square feet of “excess land” should be valued at           
          $6.60 per square foot, leading to a value of $2,640,000 for this            
          component of the Lafayette Property.  If we were to accept                  
          Atkinson’s choices of comparable sales and Atkinson’s evaluations           
          of the characteristics of the comparable properties, but correct            
          the direction of the adjustments, then the 400,000 square feet of           
          “excess land” should be valued at $9.20 per square foot, leading            
          to a value of $3,680,000 for this component of the Lafayette                
          Property.                                                                   
               Atkinson used the “excess land fair market value” of                   
          $2,640,000 directly in his income approach and the “land value              



          17   As explained in the text at supra note 13, if the comparable           
          property has an element that is inferior to the property being              
          appraised, then the comparable property’s sale price is to be               
          adjusted upward.                                                            





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