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category three venting

Snowmelt Member Posts: 1,418
this I need help on before I attempt to propose the job.
I have 80 condos using takagi water heaters and they have these flush mount kits installed in the closet - outer wall ( there flush with a intake and exhaust category III 4 inch vent. the problem is that it is also used for space heat with a hot coil in the air handler. ( but its still a water heater and its doing a job of heating with no HEX. I want to install this utica cub which is also category III but 3 inch venting so i could just add a reducer into the vent. all the vents are roughly 6 - 8 feet horizontal run with an elbow on top of the machine.

the question is can the existing termination be used here is a picture of it
(this is not it but not exactly the same. )