Property Condition Assessment

Property Condition Assessments (PCA) can be an integral part of the loan process. PCA reports provide professional opinions on future financial risks or liabilities associated with a given site based on an in-depth engineering analysis of building and property conditions, as well as confirmation of regulatory compliance. Property Condition Assessments are often completed as part of a property transfer and are frequently conducted in concert with a Phase I Environmental Site Assessment. G|E|M conducts interviews with key site personnel, conducts walk-through surveys noting the physical condition of the building systems and components, and reviews pertinent building and property documentation as part of the Property Condition Assessment. A Property Condition Assessment will evaluate the following conditions for a given site:

• Building Site (Topography, drainage, retaining walls, fencing, landscaping, pavement, flatwork, curbing, lighting, site amenities, utility systems and ancillary structures)
• Building Envelope (Facades, trim elements, windows, doors, balconies, exterior stairways and elevated walkways)
• Structural (Foundation and framing)
• Interior Elements (Stairways, hallways, common areas including amenities, tenant spaces and interior finishes)
• Roofing (Roof systems and drainage components)
• Mechanical Systems (Heating, ventilation, and air conditioning (HVAC) systems)
• Plumbing (Piping, domestic hot water systems and fixtures)
• Conveyance Systems (Elevators, lifts and escalators)
• Electrical (Service size, wiring and components)
• Life Safety (Alarms, detection equipment, safety components and fire suppression systems)
• Natural Hazards (Seismic, wind and flood zone designations)
• Water/Mold (Water infiltration and microbial contamination)
• ADA Compliance (Tier 1 survey for accessibility)
• Regulatory Compliance (Building and fire code violations and zoning designation)

G|E|M’s Property Condition Assessments meet the required scope of work defined by the ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process, as well as the requirements delineated by Standard and Poor’s, Freddie Mac, Fannie Mae, and Department of Housing and Urban Development (HUD). All Property Condition Assessments conducted by G|E|M include an Immediate Repairs Table and a Replacement Reserve Table within the executive summary. These tables provide valuable information regarding anticipated immediate and deferred costs involved in the maintenance of a given property. This information is at the heart of helping our clients understand how present site conditions will impact the asset’s future financial performance.