National (250+ locations) : Office Portfolio
Audit Findings : portfolio management fees
Savings : $6,100,000
A Fortune 100 client managed a national portfolio of office and retail locations under a master lease. Chelepis was engaged to perform a multi-year audit of the landlord’s records of master lease charges across the entire portfolio. The audit and subsequent report found nonconformities in portfolio management and accounting costs, project management fees, and overtime HVAC charges.
The main finding of the audit was that the master lease required the landlord to provide a supervisory property management structure within the landlord’s fixed percentage management fee since the lease language specifically omitted supervisory property management fees. Negotiations with the landlord produced an agreement to refund 100% of landlord’s portfolio management salaries and expenses.
The resulting settlement was a $6+ million recovery to our client.