Clarendon Center: capital project pass-through case study
A public-record mixed-use lease case study showing $36,149.65 in apparent overcharges from lobby renovation soft costs and landlord overhead.
What happened
A retail tenant at Saul Holdings' Clarendon Center received a 2022 reconciliation that pushed capital-project soft costs into CAM. The lease excludes capital work, related design and permit fees, and financing costs, yet the statement still passed through lobby renovation architecture fees, permit expenses, a financing reserve, and a separate executive salary allocation.
Findings from the pipeline
Rule 13: Landlord Overhead Pass-Through
medium confidence
$8,686
'Executive Salary Allocation - Regional VP Operations' is classified as landlord overhead, corporate costs such as executive salaries, off-site accounting, and corporate insurance are generally not recoverable from tenants. [scaled to tenant share: 5.9900%]
Statement references
- Executive Salary Allocation - Regional VP Operations
Rule 2: Excluded Service Charges
high confidence
$17,072
'Lobby Renovation - Architectural & Design Fees (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude: (i) capital improvements, capital replacements, and capital expenditures; (ii) architectural, engineering, or permit fees relating to capital work; (iii) financing costs, interest reserves, or loan origination fees associated with capital projects. Section 7.4(c).
Section 7.4(c)
Statement references
- Lobby Renovation - Architectural & Design Fees (CapEx)
Rule 2: Excluded Service Charges
high confidence
$2,905
'Construction Permit & Inspection Fees (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude: (i) capital improvements, capital replacements, and capital expenditures; (ii) architectural, engineering, or permit fees relating to capital work; (iii) financing costs, interest reserves, or loan origination fees associated with capital projects. Section 7.4(c).
Section 7.4(c)
Statement references
- Construction Permit & Inspection Fees (CapEx)
Rule 2: Excluded Service Charges
high confidence
$7,488
'Renovation Financing Interest Reserve (CapEx)' is classified as capex and falls within the capital expense pool excluded by the lease. [scaled to tenant share: 5.9900%]
Lease evidence
Operating Expenses shall exclude: (i) capital improvements, capital replacements, and capital expenditures; (ii) architectural, engineering, or permit fees relating to capital work; (iii) financing costs, interest reserves, or loan origination fees associated with capital projects. Section 7.4(c).
Section 7.4(c)
Statement references
- Renovation Financing Interest Reserve (CapEx)
Lease evidence
- Section 7.4(c) excludes capital improvements and capital expenditures.
- Architectural, engineering, and permit fees tied to capital work are excluded.
- Financing costs and interest reserves related to capital projects are excluded.
- Tenant pro-rata share used in the statement was 5.99%.
Why this matters
Capital projects rarely appear in CAM as one obvious roof-replacement line. More often they show up as soft costs around the project: design fees, permit costs, and financing reserves. If the lease excludes capital work, those related categories usually fall with it. That is where a lot of expensive pass-throughs hide.
Dispute letter draft excerpt
Request for Review - 2022 CAM Reconciliation Statement at Clarendon Center. The review flagged about $36,149.65 in lobby renovation soft costs and landlord overhead allocations.
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Public-record note
This page summarizes public-record documents and CAMAudit output for educational and marketing purposes. It does not imply endorsement by CVS, Target, or any third party. Readers should review the underlying lease, statement, and dispute timeline for their own facts.