Epic Associates 84-III, William C. Griffith, Jr. - Page 29




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                       Respondent's appraisals of the 39 units in                     
                  Miami and 40-unit complex in San Antonio, which                     
                  were performed 11 to 13 years after EA83-XII and                    
                  EA84-III acquired the properties, reflect the                       
                  wholesale value of multiple properties purchased                    
                  in bulk sales from the same builder.  [Emphasis                     
                  supplied.]                                                          

                  Second, according to respondent's brief, the                        
             difference between the retail value of each single-family                
             property, as determined by respondent's appraisers, and                  
             the wholesale value of that property is the amount of the                
             rental deficit contribution.  Respondent's brief states                  
             as follows:                                                              

                  because each of the [single family] properties                      
                  was purchased by Epic in purchases involving                        
                  multiple houses from the same builder, a discount                   
                  in the amount of the rental deficit contribution                    
                  of approximately 20% to the retail value is                         
                  appropriate to arrive at the wholesale value of                     
                  each property. * * *                                                

                  The above statement echoes the opinion of                           
             respondent's appraisers, Messrs. Dalton and Ramos, who                   
             valued the Reflections condominium complex that was                      
             purchased by EA 84-III.  In a memorandum that accompanied                
             their appraisal, Messrs. Dalton and Ramos describe the                   
             difference between the wholesale and retail values of                    
             the properties as the amount of the rental deficit                       
             contribution.  The memorandum states as follows:                         







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Last modified: May 25, 2011