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The PET concluded an income proforma analysis using ADR of $104.54, Occupancyat 71.5% and expenses of 81.5%. Capitalization rate of 8;5%.plus millage of 1.52154% supports an overall rate of 1.0.02%. The Initial Value is indicated at $4,121,939, less PPE. The PA PPE of $671,078 supports the real estate value of $3,450,861. The Just Value would include a FS adjustment for cost of sale at 15%, supporting a Just Value of $2,933,231. REBUTTAL The PET provided comments on the lack of market information for newly opened facilities, where these motels do not sell as newly constructed properties, and the PA market sales are representative of stabilized properties, not new properties without stabilized occupancy. Additional comments were made about the cost of construction and cost impact on market participants. The PET indicated that market participants do not acquire this type of property based on cost,.but are purchased based on income potential. PPE comments were made by both the PA and PET. The PET indicated that their values should be adjusted for PPE utilized by the PA, as the PPE amountwas not available to the PET. The PET included additional comments that none of the PET income analysis took into consideration any impact from Covid-19. That all analysis considered appropriate market expectations.forthe subject .property as of January 1, 2020. PA rebuttal - had additional comments about the adjustment for non -stabilized rent. The PA questioned the stabilized occupancy timing of the subject considering the affiliation with Marriott. The PET reiterated that they are asking that this rent loss information be disregarded in the income analysis of the subject. E. Magistrates analysis and finding of facts presented: The Magistrate finds that there is a difference between ADR that is achievable for a hoteilmotel property versus the asking rate. This concept is similar to asking price versus value. Any price can be asked, but may not be achieved and does not represent potential value. Use of typical ADR, occupancy rates, and expense ratios are appropriate in valuing hotel properties when actual Information is not available due to the newness of the facility. Professionally accepted appraisal practices include valuing un -stabilized income producing properties Was Is" and "at stabilized"with. an amount of risk and time involved in achieving stabilized income potential in an un -stabilized. property impacting value. The subject property is new, opened one month as of January 2020, and does not have a history of stabilized income potential. The PA and PET have provided analysis of the subject property as stabilized, with the PET withdrawing their information to achieve stabilized occupancy. Therefore, the Magistrate will review the information provided by`both the PA and PET regarding the preponderance of evidence in development of Just Value in compliance with FS Section 193.011 and the impact of the subject income potential as of January 1, 2020. The PA provided three approaches to value for the subject. The Magistrate concurs with the PET that the PA market sales are not highly comparable with the subject. Additionally, the indicated mean sale price is related to the 100% sale price of the sales, with no adjustment for cost of sale; The PET provided sufficient information to question the credibility of the. market sates used; and that these market sales are not a valid indicator for value of the subject property. -62-