Docket No. 03-22636.001-C-3 & 04-21196.001-C-3
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market value of $5,700,000 as of both January 1, 2003 and January
1, 2004.
The witness was cross-examined by both the board of review and
the intervenor. The witness was asked about his selection of
comparable properties in both his sales comparison approach and
his income approach to value. Ryan was familiar with all of the
properties used in his analysis. The witness answered all of the
questions posed with candor and a thorough knowledge of the
subject and the methodology he employed to value the subject
property. All of the witness' answers were articulate and
complete. Furthermore, the witness was able to substantiate all
of his findings.
The intervenor called as its witness, Eric Dost, MAI, as an
expert in the field of real estate appraisal. The PTAB accepted
Dost as an expert. Dost was tendered by the intervenor as a
witness to review the LaSalle Group Appraisal Report with an
effective date of January 1, 2003.
First, Dost testified that the Ryan report failed to include an
estimate of land value, something he claims should have been
accounted for before proceeding to the two approaches to value
contained in the report. Also, the witness testified that some
of the sales Ryan used were "dated." The witness further
testified that the Ryan report use of the Fox Valley Mall in
comparison to the Old Orchard Mall was not proper. The witness
testified that there was a different highest and best use
employed at the former Lord & Taylor store at the Fox Valley
Mall.
Furthermore, Dost took issue with Ryan's use of the J.C. Penney's
store at Lincoln Mall in Matteson as a comparable sale. The
witness testified that Lincoln Mall has a chronic vacancy problem
and is, therefore, not comparable to the subject. Dost further
questioned Ryan's use of an out-of-state comparable sale. The
witness testified that three of the four sales comparables used
by Ryan were not good comparables. Dost also testified that the
Ryan report sufficiently supply the necessary data to explain the
adjustments used.
Dost further criticized Ryan's use of rental comparables. The
witness testified that Ryan did not have adequate support for his
estimate of a $6.00 per square foot market rental figure for the
subject property. Dost testified that in light of the range of
rents of the comparable properties he reviewed that Ryan should
have estimated a market rent in the range from $7.20 to $8.09 per
square foot.
