As part of the Multifamily Acquisition Learning Series, we’re diving into the challenges of aging pipes in this volume.
July 3, 2023
THE PROBLEM
Aging pipes have become a new problem for the USA that we cannot ignore. Our buildings are getting older, and so are the water pipes inside them. The average age of US water pipes is 48, with most having a life expectancy of around 50 years.
In the past
In the past, plumbing piping failure wasn’t considered a significant risk. But now, with the increasing age of our buildings and infrastructure, it’s a growing concern that we need to address.
Expected useful life
I am observing an increase in piping failures in walls and under slabs. The expected useful life of most piping is 50 years. Cast iron can sometimes last much longer, but if drain cleaner is used, it can fail in less than 20 years.
Risk and impact of aging pipes |
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When considering the risk and impact of aging pipes on the acquisition, it’s essential to keep in mind the following costs of ignoring the issue: |
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The average cost for water damage remediation. | $3.75 to $7 per SF |
The cost to replace plumbing per apartment, including finishes. | $5,500 to $6,500 |
The cost to replace the sewer from the building to the roadway. | $7,500 |
The cost of a typical pipe leak. | $500 |
The cost of a typical pipe break. | $15,000 to $55,000 |
What can you do to address this issue?
If your pipes are older than 1990, a plumbing review by a qualified Due Diligence (DD) specialist is a necessity.
Requesting a Plumbing DD specialist will significantly reduce your risk,
but you should also do more.
Why do I say 1990 and older? What more should you do? Tune in next time to find out.
3
FLOORS
$500+k
$$$ PROTECTED
2020-NOW
WORK ORDERS
250
UNITS
Figure 1
Figure 2
Figure 3