Justice Jaime A. Rios
Former fee owners moved to determine the value of properties taken by eminent domain by the Metropolitan Transportation Authority in this condemnation proceeding. The main issue before the court was the fair market value of the properties at the time of the 2008 taking. Claimants’ appraiser determined that the highest and best use for each property was as an owner-occupied warehouse/parking and office building, valuing one lot at $7 million and the other at $6.2 million. The MTA’s appraiser concluded the highest and best use of the properties was as a multi-tenanted facility, valuing one lot at $4.71 million and the other at $4.51 million. The court found claimants’ met their burden of proving the highest and best use of the properties was as a mixed-use industrial storage/warehouse and office buildings for owner occupancy. As such, it concluded the comparable sales method, rather than the income approach, would better indicate the properties’ value. The court found the properties’ location was an advantage and outweighed any limited negative impact railroad tracks in the rear may have. It ruled the average square footage, and value assigned was $209.18, valuing one lot at $6.3 million and the second at $5.9 million.
