BACKGROUND: In 2015, an existing Client came to RMC with a new real estate investment portfolio spanning 1.6M square feet. The potential acquisition contained high California Catastrophic exposure and flood risk, which typically yields high insurance costs. However, RMC was able to devise a program using the "RMC Process" to isolate the high-risk exposures and save the Client 40% over seller’s insurance costs, which added over $5.2M in value to the Client’s company by the end of the acquisition.
* This figure assumes a 7% cap rate.
** No breakout was available for the seller’s insurance costs.