Date of Award
1989
Document Type
Thesis
Degree Name
Master of Science
Department
Business
First Advisor
Ernest A. Demba
Second Advisor
Richard Rickert
Third Advisor
Chris Kukuk
Abstract
The thesis explores how real estate ownership, when held as undivided minority interests (i.e., shared ownership where individual shares are not physically divided), leads to valuation challenges. Schlueter argues that such interests are typically worth less than a simple proportional share of the full property’s value due to factors like lack of control, marketability issues, and limited access to financing. He supports his case with legal definitions, historical context, valuation theory, interviews with real estate professionals, and analysis of real market data—including discounted sales of partial interests. Ultimately, the thesis concludes that discounting is necessary to reflect the real-world limitations and risks inherent in undivided minority ownership.
Recommended Citation
Schlueter, John J. III, "Discounting Undivided Minority Interests" (1989). Theses. 1385.
https://digitalcommons.lindenwood.edu/theses/1385
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.