Although Mr. Rohrbach takes the position part of the purchase price was the purchase of the existing leases, this is not the case. The tenants in possession under their individual leases had certain rights. Mr. Rohrbach took the property subject to those rights. If Mr. Rohrbach were to sell the property, he would not be able to legally require all the tenants to move out before he sold it. In like manner, a new owner would not be able to require all the tenants to vacate the premises.
Apartment buildings buy and sell with the tenants under existing leases.
This is a property interest which runs with the real property and as such is properly considered as part and parcel with the real property. No deduction would be warranted from the purchase price for the fact that tenants were in place on the property. Evidence of the actual sales price of property is admissible to establish value at the time of an assessment, provided that such evidence involves a voluntary purchase not too remote in time. The actual sale price is a method that may be considered for estimating true value. The actual sales price, between a willing seller who is not obligated to sell and a willing buyer who is not compelled to buy, establishes an outer limit on the value of real property.