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4 CASE STUDIES
Our case studies section features actual problems
brought to our attention through V&A appraisers and
QC reviewers, clients, colleagues at competing firms, and
general news publications.
Eli Varol joined Cushman & Wakefield in
September as a Senior Director starting
up the Cost Segregation consulting
practice within Valuation & Advisory. Cost
Segregation is a consulting service that
can unlock significant hidden value in real
estate holdings. It is applicable to all types
of commercial real estate, and Eli will rely
on our V&A professionals to help promote
this service to clients.
About Eli:
Eli has 18+ years of Cost Segregation
consulting experience. He has a bachelor’s
degree in mechanical engineering and an
MBA, both from Washington University
in St. Louis. He is a Senior Member of the
American Society of Cost Segregation
Professionals.
With the addition of the Cost Segregation
platform, we have expanded our ability
to serve our clients. We now have the
capability to incorporate Cost Segregation
into Purchase Price Allocations and other
Valuation & Advisory assignments. It is
a great tool with which to reach out to
new and existing clients in order to stay in
touch and demonstrate the depth of our
platform. The following describes Eli’s first
assignment awarded through the Valuation
& Appraisal network.
INTRODUCTIONS
Michele Kauffman has a long-standing
business relationship with a professional
home staging company. The client
acquired a Los Angeles area warehouse
in 2015 and subsequently made capital
improvements to the property. In a
conversation with this client, Michele let
them know that we have an in-house
Cost Segregation practice and it may be
worth their time to have a conversation on
this topic. She advised that even though
they bought the property two years ago,
they were still able to pursue the Cost
Segregation tax strategy. With their
affirmative response, an introductory call
was set up.
WINNING THE ASSIGNMENT
Based on this initial conversation, we
were able to provide the Client with a
detailed benefit projection that shows
an estimated present value benefit range
between $63,000 and $108,000. We also
provided a fee quote. Cost Segregation
should always have fixed fees rather than
percent-of-savings or results-contingent
fee arrangements.
BENEFIT TO V&A PRACTICE
Cost Segregation is a low risk/high reward
consulting service. It is a value-add that
provides benefits to property owners that
are typically many multiple times the fee
charged. The benefit is 100% achieved
within a few years of ownership.
By bringing in a value-adding
complimentary service, Michele was
able to strengthen this client relationship.
We are seen by the client as not only an
important part of the project financing
process, but also as a trusted advisor
looking out for the client’s business
interest. At the same time, there is no
conflict of interest or impairment to
Cushman & Wakefield’s all-important
objectivity in appraisal assignments.
WORKING WITH THE COST
SEGREGATION PRACTICE
Eli looks forward to having many similar
success stories within V&A. A cost
segregation web presence is now live and
includes a number of case studies. It can
be found at
At the website, you can also find a link
to an online questionnaire. If you have
a recent or upcoming client property
acquisition or construction project in
mind as a potential Cost Segregation
opportunity, please fill out this
questionnaire. Eli will then prepare a
courtesy benefit projection and fee quote
that can be shared with your clients.
CASE STUDY NO. 45 –
COST SEGREGATION
by David Koller, ASA and Eli Varol