Real Estate Cases: Real Estate & Facilities
Industrial Building & Wharf
GaiaTech was retained by a national commercial REIT to evaluate their potential purchase of a 160,000-square-foot industrial building with an associated loading wharf on the Puget Sound in Washington. Our Property Condition Assessment and seismic loss evaluation services identified previously undisclosed repair cost liabilities associated with the wharf structure, resulting in potential costs in the $2.5 to $5.2 million range. Early identification of these major liabilities enabled our client to negotiate the transaction from an informed position.
Multi-Unit Apartment Building
On behalf of a major residential real estate owner and operator, GaiaTech undertook a property condition assessment of a 500-unit multi-family apartment property in Texas that the client was considering for purchase. Our assessment identified previously undetected indications of termite infestation, and a subsequent, more detailed investigation showed that significant termite damage had occurred in isolated locations. Nevertheless, in our judgment, the issue could be remedied before major damage was caused with proper treatment. Our assessments and risk evaluations allowed our client to obtain sizeable price concessions from the seller and go on to resolve the issue before material damage took place.
Mixed-Use Retail & Office Property
At the request of a new owner of a mixed-use retail and office property in Florida, GaiaTech performed a facilities assessment on the newly acquired property. Our assessment demonstrated that the facility had a history of water ingress, which had in turn caused mold development and indoor air quality issues, as well as having led to tenant complaints and costly tenant turnover. GaiaTech's risk evaluation and assignment of liability for the compromised building was complicated by the ownership structure, which included partial ownership by a local municipality. However, by working with the municipality and other stakeholders, GaiaTech was able to quantify the risk to the new owner and provide recommendations for repairs and future maintenance that allowed the buyer to proceed with the transaction.