Plumbing Is One of the Highest-Risk Components in Any Acquisition
For large real estate acquisitions, plumbing systems represent one of the most significant, and most overlooked, sources of hidden capital exposure. Systemic corrosion, improper materials, deferred maintenance, and concealed failure patterns can turn a sound investment into a long-term liability.
Standard property inspections rarely go deep enough to catch these issues. By the time cascading failures begin, often shortly after close, the capital is already committed and the leverage is gone.
Comprehensive Plumbing System Assessment
ANMAC conducts in-depth plumbing system evaluations during the due diligence period, designed to surface material risks, quantify near-term failure exposure, and identify hidden capital costs that standard inspections miss.
Our assessments typically include
Hot water generation and recirculation loops
Boiler systems, water heaters, and circulation efficiency
Pipe materials, age, and installation practices
Material identification and installation quality review
Evidence of corrosion, scaling, or systemic degradation
Visual and diagnostic inspection for deterioration
History of leaks, failures, and emergency repairs
Maintenance reports and incident pattern analysis
Water chemistry and its impact on plumbing infrastructure
Water quality testing and corrosion potential
Code compliance and known jurisdictional risks
Regulatory review and compliance assessment
What Our Diligence Has Uncovered
Our due diligence reports have:
Identified imminent large-scale plumbing failure risks
Catching systemic issues that were months away from catastrophic, building-wide failures.
Exposed multi-million-dollar deferred capital liabilities
Revealing costs that were absent from seller disclosures and standard inspection reports.
Revealed conditions requiring full or partial re-piping
Giving buyers a clear picture of the true capital investment needed post-close.
Provided buyers with leverage to renegotiate purchase terms
Our findings have directly resulted in price adjustments and seller-funded repair escrows.
Led clients to walk away from acquisitions entirely
In several cases, our assessment was the deciding factor in declining a transaction, avoiding what would have been catastrophic post-close costs.
A Report Built for Decision-Makers
Each diligence engagement results in a clear, written report designed for acquisitions teams and investment committees, not just engineers. Our deliverables are structured to support informed capital decisions.
Our reports are designed to be attached directly to investment memos, board presentations, and closing documents.
Trusted by the Nation's Largest
Owners and Investors
ANMAC has performed plumbing due diligence on transactions spanning multiple states and representing significant total acquisition value. Our clients include some of the most recognized names in institutional real estate.