Property Condition Assessments
- Gives an real indication to financial institutions the cost of property conversion for realistic loan modeling
- Provides purchaser a real time picture of what is needed to meet zoning and compliance ordinances, and changes that need to be made.
- Develops a true capital conversion cost to all parties involved.
As part of CES’s package of environmental due diligence services, we also prepare Property Condition Assessment (PCA) reports using ASTM E2018-01: Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. The PCA is often required prior to the purchase, sale or refinancing of an asset.
A property condition assessment is a review of the existing physical condition of a building. PCAs are primarily directed at identifying components that exhibit indications of less than expected service life or that have been poorly maintained. They are not intended as an engineering report, only to develop detailed remedial plans for identified problems. A report is prepared and includes:
- Detailed document reviews,
- Personnel interviews, type of structure and generally observable construction details,
- Photographs of mechanical and physical components of the structure,
- Compliance determinations with federal, state and local codes and laws, and
- Cost estimates to remedy physical deficiencies and for upgrading and replacement.
Every PCA investigation and report prepared by CES includes a visual assessment of the conditions of the property elements, building(s) and related structures (i.e., structural and roofing systems, electrical and mechanical systems, paved areas, architectural finishes, drainage, fire protection, etc.). A customary practice for CES is to provide our clients with the anticipated capital needs for major equipment replacements and repairs over the life of the mortgage. Our PCA reports provide commercial real estate owners, buyers, sellers, partners and lenders with an independent “third-party” evaluation of property assets. Our clients are able to:
- Evaluate deferred maintenance and upcoming capital reinvestment needs.
- Provide expert reassurance about an asset’s quality to partners and lenders.
- Support decisions about repositioning real estate in the commercial market.