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In passing, we note that their appraisal of the 40
units of the Reflections condominium complex is accompanied
by a memorandum, discussed above, in which Messrs. Dalton
and Ramos point out that this "wholesale value is 30
percent lower than EPIC's projected retail value" of the
condominiums, "$3,000,000", and they suggest that the two
values are within the range of what would be expected.
Messrs. Dalton and Ramos also state that EPIC over-
leveraged the condominiums "by financing the properties at
their retail price", and they note that "EPIC financed the
Condo’s at $3,000,000". Thus, their memorandum implies
that the sum of the retail values of the condominium units
is $3,000,000 or $48,000 less than the sum of the contract
prices of the condominiums, $3,048,000.
It is evident from the above that the threshold
question in these cases is whether the condominiums should
be valued on a retail basis or on a wholesale basis. If we
decide that the condominiums should be valued in the retail
market, then it appears that the fair market value of the
condominiums exceeds the amount of debt. This is true
whether we base the retail values of the properties on the
contract prices, as argued by petitioners, or the retail
prices implied in the reports of respondent's appraisers.
On the other hand, if we decide that the condominiums
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