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and 5 had fair market values of $620,000 and $3,420,000,
respectively.
Both parties encourage us to reject the other party’s expert
report in its entirety. However, we find each expert to be
persuasive on some points, but not on others, and give each
report its due weight.
A. Valuation of Phase 5
1. Mr. Kelley’s Report
Mr. Kelley purported to value Phase 5 by using the
comparable sales method. However, after arriving at a value per
square foot, he then applied a “discounted cashflow analysis” to
arrive at Phase 5’s “net present ‘as-is’ land value” on the date
of death.
a. Comparable Sales
To determine the value per square foot of Phase 5, Mr.
Kelley used four comparables:
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Last modified: May 25, 2011