Property Condition Assessments

 

Property Condition Assessments and Reports

Partner performs Property Condition Assessments (PCA) and Property Condition Reports (PCR) for lenders and commercial real estate investors. During the Property Condition Assessment, Partner's architects, engineers, and commercial building inspectors assess the subject property in order to understand the condition of the building. A Property Condition Report is generated discussing each building system and its condition. The most important output of the Property Condition Assessment is the Immediate Repairs Table and the Replacement Reserve Table. This table is provided in the PCR and helps the client understand how the condition of the building will impact the asset's financial performance.

Property Condition Assessment Reports

CMBS Lenders, insurance lenders, and some portfolio lenders routinely order Property Condition Assessments (PCA), also known as Property Condition Reports (PCR) or Commercial Building Inspections. Partner prepares PCA Reports to meet the requirements of rating agencies such as Standard and Poor's, as well as to the scope of work defined by ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. Partner's PCA Reports discuss all major building systems and site improvements and include a Replacement Reserve Table and an Immediate Repairs Table. The Immediate Repairs Table identifies capital needs and prices all failing or damaged building systems and life safety issues.

Standards for PCA assessments are published by the ASTM. Standards should be carefully reviewed to fully understand the work to be completed as well as the limitations of reports. In addition, the National Engineering and Environmental Due Diligence Association (NEEDDA) has published a white paper that can provide a useful starting point. The National Engineering and Environmental Due Diligence Association or “NEEDDA” is a 501(c)(6) non-profit organization formed to improve the practice of engineering and environmental due diligence for all stakeholders, members, clients, vendors, and non-member firms. Read the full White Paper here.

Equity PCAs

Real Estate Investors are interested in ensuring that their investment is a solid one, with no surprises. Partner tailors our Property Condition Assessments to the asset and the investor's concerns. Partner can perform extremely thorough building assessments where all major systems are tested and evaluated.

While more thorough evaluations are generally more expensive, Partner often saves our clients money well in excess of our fee by identifying major building deficiencies prior to our client taking ownership.

While our assessors are very knowledgeable, our assessments can be enhanced by our network of specialists. Partner maintains relationships with expert specialists in every building system. The specialist reports can then be folded into our Property Condition Report.

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