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by Dave McGuireJanuary 22, 2026

Client Snapshot

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  • Building Type

    Retail Facility

  • Location

    Lexington, KY

  • Study

    Cost Segregation

  • Project Objective

    Asset Reclassification

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Approach & Results

Client Profile
A CPA firm contacted McGuire Sponsel to conduct a cost segregation study for their client, a retail investor who recently acquired a substantial, $30 million commercial property in Lexington, Kentucky.

Process
Our Fixed Assets team was engaged to conduct a cost segregation study of the newly purchased retail center on January 24, 2023, even though the client acquired the property on June 9, 2022. This timeline shows our team’s flexibility in meeting client needs. We performed an extensive on-site assessment on February 9, 2023, thoroughly examining the property and analyzing all relevant documentation. This comprehensive approach enabled precise identification and strategic reclassification of assets into more favorable depreciation categories.

Study Results
The cost segregation study was finalized on March 3, 2023, yielding exceptional outcomes for the client. Our Fixed Assets team successfully reclassified over 26% of the depreciable basis from 39-year property into 5- and 15-year property classifications. These personal property assets, all eligible for bonus depreciation, amounted to over $5.9 million of the total investment.

As a result of this strategic reclassification, the study generated an increase in the client’s first-year cash flow of $2,178,485, dramatically surpassing the initial projection by more than $750,054. Furthermore, the net present value of cash flows over the investment’s lifespan exceeded $1,381,738.

  • $1,381,738

    Net Present Value

Considering whether cost segregation could benefit your client?

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