Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 47

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          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.                     








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Last modified: May 25, 2011