This was a purchase being made by one of our VIP investor clients. We were financing this building and another at the same time.
Obtaining Insurance has become a real big challenge in the commercial real estate sector. This was ultimately the biggest challenge that we had. The property turned out to have an electrical panel from a manufacturer that has become unacceptable by a majority of insurance carriers. As a result, there were delays in finding coverage for this transaction.
Our client was able to obtain insurance but at a stealthy cost. Ultimately it allowed us to close the transaction and the investor will be changing the electric panels and then shopping again later for more affordable insurance.