Due Diligence: Costs for Roof Replacement and Renovation Recovered

Due diligence which included a Property Condition Assessment (PCA) was performed for a major strip retail shopping center property. The roof condition appeared to be initially acceptable; however, additional recommended investigation confirmed the age was 5 years beyond its estimated useful life (EUL) and minor water penetrations were uncovered. The Client was able to negotiate a reduction of $300,000 in the purchase price to cover roof replacement and renovation. The planned purchase was completed to the satisfaction of the client.

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