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further stated during his testimony, Mr. Mogul appraised
the condominium units as property to be held by a single
investor, or "entrepreneur".
Finally, Mr. Dalton, who appraised the 40 units of the
Reflections, testified at trial that his "assignment [from
respondent] was, how much should EPIC have paid for this
property." In the memorandum attached to their appraisal,
Messrs. Dalton and Ramos make the following statement:
The fair market value of the properties acquired
by Epic Associates 84-III is based on the market
place in which they were acquired, the wholesale
market. As such, the fair market value is the
price paid by Epic Associates 84-III to the
seller, without regard to any RDC (rental deficit
contribution) or other supposed Builder Rebate.
They do not explain why the fair market value of the
properties acquired by EA 84-III must be determined in "the
market place in which they were acquired, the wholesale
market" when, as they also recognize, EA 84-III purchased the
properties for resale and received special discounts in the
purchase price from the sellers.
The report of respondent's principal expert witness,
Dr. Richard Hewitt III, does not explicitly discuss the
appropriate market for determining the value of the subject
properties. Dr. Hewitt's report does suggest that the
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