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                  I.  PURPOSE OF THE APPRAISAL 
     An  appraisal   report  serves to  communicate   a  defensible 
benchmark  of value where value is determined by the context    and 
assumptions   inherent  in  the property, data   base, or   factors 
affecting  buyers and sellers in the marketplace.     Defining  the 
value  situation   provides  the basis for  determination   of  the 
appropriate valuation methodology. 
        A. Appraisal Issue and Appropriate Methodology 
     The  issue   for  which  this  appraisal   is  required  as   a 
benchmark   is  the possible liquidation and sale of   the  subject 
property  located   at 313 West Beltline Highway, in the   Town  of 
Madison, Dane County, Wisconsin.    The appraisal will serve as   a 
benchmark  for   the  Board of  Directors   representing  the  best 
interests  of   the  shareholders   in  the   Madison  Real  Estate 
Investment Fund (MREIF) and as a guide to prospective purchasers 
to the investment characteristics of the property. 
     A  comparable sales or market comparison approach relies    on 
an  evaluation   of physical attributes between   the  subject  and 
similar  properties.    Income  properties, however, distinguish 
themselves    by   intangible   characteristics    such   as  lease 
conditions  or provisions (where, for example, one may    have  the 
opportunity to pass through future expense increases), and    other 
related  factors important to a property's    investment  character 
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