- 47 -
University property representing the 25-percent lender interest.
As a result, the value of the University property becomes
$805,598, the value to which the parties agree. The issue then
becomes whether any additional discounts should be applied for
lack of marketability, lack of control, or lack of voting rights.
The Hoffman appraisal compared the University property to
real property limited partnerships (comparable partnerships) with
revenues less than $3 million and with debt to total adjusted
capital greater than 20 percent. The discounts of the comparable
partnerships ranged from 24.7 percent to 57.8 percent and had a
median of 41.5 percent. The Hoffman appraisal also compared the
University property to comparable partnerships with net asset
values less than $10 million and with debt to total adjusted
capital greater than 20 percent. The discounts that were applied
for the comparable partnerships ranged from 28.3 percent to
56.9 percent and had a median discount of 43.9 percent. The
Hoffman appraisal also compared the University property to
comparable partnerships based on performance as measured by
distributions. The discounts for the comparable partnerships
ranged from 24.7 percent to 62.3 percent and had a median of
42.4 percent. In each of the three comparisons, the Hoffman
appraisal concluded that the University property was a less
attractive investment than the comparable partnerships.
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011