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Although the loan is current, Mr. Marsh estimates
that he could only get $0.70 to $0.80 on the dollar for
a 100% interest, and perhaps $0.60 to $0.70 for a 45%
interest (due to liquidity factors).
Based on the above, we conclude that the fair
market value of the Marsh note is $300,000
(approximately 65% of $450,000).
ii. Mr. Thomson’s Report
Mr. Thomson in his report preceded valuation of the Marsh
note with a discussion of certain factual assumptions underlying
his analysis. The report refers to the $1 million note as
equating to “more than 2 to 1 coverage” for the Marsh note and
mentions personal guaranties by Mr. Marsh and Mr. Goldstein. Mr.
Thomson also addresses several items relating to the security for
the $1 million note; namely, the value of the mobile home park,
the existence of any prior liens against the park, and possible
environmental issues pertaining to the park.
Mr. Thomson appraised the 410-unit mobile home park and
concluded that it “could command a price of $40,000 to $50,000
per unit or $16.0 to $20.0 million based on other mobile home
park sales we are familiar with in Southern California.” As
regards potential prior liens, the report states:
We requested any other Trust Deeds (notes), if any,
against the Carson Harbor Village Mobile Home Park
which may have a senior position to the $1,000,000 Deed
of Trust. However, we were not provided any data on
this request from the taxpayor [sic]. We did obtain a
property profile from Chicago Title which showed no
recorded liens as of the appraisal date.
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