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existence of the BLA as a factor in determining the discounts to
apply to decedent’s partnership interest.
Carsten Hoffman, senior vice president of FMV Opinions,
Inc., of Irvine, California, prepared three appraisals for the
estate during trial preparation. The Hoffman appraisal relied on
information that was provided by Hillgren and by the estate’s
representatives and relied on the property values that were used
in the Higgins appraisal. The first report, dated February 22,
2002, appraised the value on June 5, 1997, of the Orange County
and University properties as subject to the BLA (Hoffman
appraisal). The other two appraisals valued partnership
interests that are irrelevant at this point in our analysis.
The Hoffman appraisal determined that, because of the BLA,
an investor in the real estate lacked control of and
marketability of the investments in the real estate. The report
compared these restrictions to those based on limited partnership
interests in real estate holding partnerships. The report also
applied additional discounts for lack of voting rights. The
Hoffman appraisal made the assumption that the BLA was “fully
transferable to a third-party upon giving notice and that the
* * * [BLA] remains in full force and effect upon such transfer”.
The Hoffman appraisal took into consideration that the exhibits
to the BLA were transposed. In addition, the Hoffman appraisal
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