Dear Mr. Brotzman: 0 -v In your letter of May 3, 1971, you requested information concerning ;yl-.-pT-erty exchanges by the General Services 17 4 Administration (GSA), GSA made about 50 exchanges of Federal property for non- Federal property during fiscal years 1968, 1969, and 1970. The fair market values assigned by GSA, on the basis of ap- praisers’ reports, totaled $45 million for the properties ex- changed and $38 million for the properties received. For some of the exchanges, GSA also received cash payments total- ing $11 million. Thus GSA received $49 million in cash and property in exchange for property valued at $45 million. As a means of measuring whether the Government received proper value for the properties it exchanged, we examined into several of the exchanged properties to determine whether any of the properties had been sold subsequently and, if so, to compare the sale prices with the fair market values assigned to the properties by GSA. We found that there had been very few sales of the exchanged properties, the only one of any significance was the Lowry Air Force Base property that was discussed in the newspdper article enclosed with your letter. L r3 At a meeting on May.27, 1971, with your staff, it was agreed that, because of the few subsequent sales of the ex- changed properties, we would furnished you with certain sta- tistics comparing GSA’s sale and acquisition prices of real properties with their appraised fair market values. During the 3-year period ended June 30, 1970, GSA sold about 800 surplus real properties. GSA informed us that about 80 percent of these properties were sold through advertised, *: competitive bidding and the remaining properties were sold ?3 through negotiated sales. These properties were sold at pric& totaling $207 million which exceeded the appraised fair marke%j $ values’of $193 million. Most of the sales were for relatively small amounts, and there was considerable variance between these sales prices and the related appraised fair market values. 50 TH ANNIVERSARY 1921- 197 P B-165511 In sales value, 47 of the properties exceeded $500,000 and, in total, accounted for about 90 percent of sales. The relationship of these sales to appraised values is r3.s follows: Ratio of sales price to appraised Number fair market of value Sales Appraised fair cases (percent) price market value Difference 4 Over 130 $ 3,396,OOO $ 1,804,OOO $ 1,592,ooo 3 120 to 130 12,027,OOO 9,733,ooo 2,294,ooo 18 110 to 120 45,304,ooo 40,407,000 4,897,OOO 18 100 to 110 117,606,OOO 113,231,OOO 4,375,ooo 2 90 to 100 2,369,OOO 2,448,OOO -79,000 -2 80 to- 90, 4,000,000 4,884,OOO -884.000 47 $184.702.000 $172,507.000. $12.195,000 During the same 3-year period, GSA purchased about 120 :/: real properties for a total of about $23 million. In almost all instances the purchase price was within-20 percent of the appraised fair market value. :: Sincerely yours, of the United States The Honorable Donald G. Brotzman House of Representatives d 2 ?
Real Property Exchanges by the General Services Administration
Published by the Government Accountability Office on 1971-07-14.
Below is a raw (and likely hideous) rendition of the original report. (PDF)