- 137 -
were sold to buyers other than EPIC. Treating these
"retail" sales as comparables, Mr. Mogul determined the
retail sales potential of the subject 39 condominium units
to be $2,962,000.
From the total retail sales potential, Mr. Mogul
deducted anticipated expenses over a 30-month absorption
period in the aggregate amount of $797,971, and he
discounted the annual net income to arrive at a wholesale
value of the subject condominium units of $1,800,000.
Respondent acknowledges on brief that Mr. Mogul doubled
real estate taxes and association fees in his computations
and that using the correct amounts would increase the
present worth of the 39 condominium units under Mr. Mogul's
discounted cash-flow analysis to $1,856,576.
In passing, we note that a representative of Babcock
Co. testified at trial that the contract prices of the
subject 39 units in Paseos Castellanos were based upon the
prices of actual sales of similar units to members of the
public. Mr. Mogul's appraisal tends to support that
testimony. The total retail sales potential of the units,
as determined by Mr. Mogul, $2,962,000, differs from the
aggregate contract prices of the units, $3,020,700, by
$58,700 or less than 2 percent.
Page: Previous 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 NextLast modified: May 25, 2011