This newly acquired office building was renovated with $4million of new tenant improvements for a total cost basis of $8.85 million. Cost segregation identified over 38% of the total cost as short life property.
Tenant improvements in medical office buildings, surgery centers, and most specialty medical facilities provide the highest and best use of cost segregation. This medical office nearly 37% of the improvement costs were converted to short life, personal property.
This shopping center had a construction cost of just over $16.5 million. Cost segregation identified 28.6% of the total as 15 year property and 13.6% as 5 and 7 year property. 42.2% of the total construction cost was recategorized as short life property.
Senior living facilities typically have characteristics similar to a high end, multifamily property. This property was acquired for $24.7 million. 29% of the facilities' cost basis was recategorized as short life property.
Manufacturing facilities, while possibly housed in concrete tilt-up buildings may require an inordinate amount of specialty items to be added so that the equipment required in the manufacturing process can function. This example from a circuit board manufacturing building ended up with 46% of the total building basis being converted to short life property.
This casual dining restaurant was a new build and included the furniture buildout, fixtures and equipment. Total short life property was nearly 60% of the total cost.
This was a ground up new build of a major franchise. All costs were studied including full equipment package. The equipment package, allocated to 7 yr life was 17.8%. The construction aspects that were converted to personal property totaled 34.1% for a total conversion to short-life property of 51.9%.
This free-standing law office building, included high-end appointments and the latest in technology and lighting. Over-all 38.4% of the total costs were allocated to short life property.