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discount is appropriate for all three of the properties. This
figure is supported by the factor analysis for fractional
interests, which gave us a figure between 25 percent and 27
percent. We do not limit the discount to the costs of
partitioning because such a discount does not account for the
factors of control and marketability in the circumstances of this
case. An interest in income-producing, improved real property
without control and in a closely held family property may be
difficult to sell. But, on the positive side, the properties are
in average to very good condition, with remaining economic lives.
They all had good rental histories with creditworthy tenants and
are well located.
In summary, we hold that the fair market value of the Kmart
property was $5,300,000 as of the date of decedent’s death and
decedent’s 50-percent undivided interest had a value of
$1,987,500 after a 25-percent marketability discount. The 50-
percent undivided interest in the Walgreen property had a fair
market value of $1,335,000 before a 25-percent discount,
resulting in a returnable value of $1,001,250. Finally, the 50-
percent undivided interest in the Wells Fargo property had a fair
market value of $493,975 before a 25-percent discount, resulting
in a returnable value of $370,481.
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