Chapter 14 - The Independent Appraisal
Margaret commissioned a second appraisal after the gala.
Land only.
Not mansion improvements.
Value:
$8.9 million.
The ground lease’s extension clause required fair-market rent adjustment if parties could not agree.
The formula was complex but essentially tied rent to land value with negotiated caps.
Vanessa had proposed a fixed annual ground rent of $210,000.
Margaret’s appraiser supported a range closer to $490,000 to $540,000 under market assumptions.
Huge gap.
Could Bellafonte survive $500,000 ground rent?
Yes.
Would margins shrink?
Yes.
Would lender ratios tighten?
Yes.
Vanessa argued the land’s value was created partly by the mansion and zoning approvals the tenant obtained.
The appraiser accounted for permitted-use limitations.
Still high.
This was not a widow extorting family business.
It was a landlord and tenant disagreeing over market rent.
I had to keep telling relatives that.
One aunt called:
“Your mother is charging family half a million to stand on dirt.”
I asked:
“Would you lease your apartment for half market because cousin owns tenant company?”
She hung up.
May you like
Family generosity feels obvious when the asset is someone else’s.
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