AEI Consultants International
AEI has an international presence with more than 20 offices across the U.S. and Europe. In addition to strong growth in the United States, AEI is increasingly engaged by its U.S. clients to provide expert consulting services internationally.
AEI provides environmental consulting for North American clients in the form of assessment and risk-management services throughout Canada, Europe, Mexico, Puerto Rico and Latin America.
As the commercial real estate industry experiences buoyant demand globally, AEI is seeing increasing requests from domestic clients to manage their projects abroad in order to minimize risk and maximize contract value.
Some of the services provided internationally are:
PROPERTY CONDITION ASSESSMENT
The purpose of a Property Condition Assessment (PCA) is to observe and report on the physical condition of the subject property and to provide professional recommendations regarding future issues including financial risk or liability to the client.
Major structural, electrical, plumbing and HVAC components of each structure, as well as site improvements, are carefully examined for condition, status of completion, general code conformance, life cycle costs, sufficiency for their intended use, and extent of defects and depreciation in a Property Condition Assessment report. AEI’s Building Sciences team interviews site personnel, performs document reviews and conducts walk-through surveys noting the physical condition of the building systems and components of a Property Condition Assessment report.
Systems surveyed will in a Property Condition Assessment include the following:
- Site and Grounds – pavement, curbs, loading docks, walks, landscaping, irrigation, site drainage, exterior lighting, walls, fencing/railings, signage and exterior amenities.
- Structural Systems – Foundations and structural framing of walls, columns, intermediate floors and roofs.
- Building Envelope – Roofing systems, exterior finishes, stairs and steps, exterior doors and windows.
- Interior Building Components – Interior finishes of common areas and tenant areas. Condition of soft goods will not be assessed.
- Mechanical Systems – Property-owned electrical, heating ventilation/ air conditioning, plumbing and conveyance systems.
Upon completion of the physical property condition assessment, AEI Consultants will provide a Property Condition Report (PCR) outlining the systems and components along with any deferred maintenance or deficiencies observed. Based on industry standard, AEI then formulates a list of immediate repairs and costs that will be incurred during the life of a loan. Immediate repairs can be defined as significant building code violations, fire code violations, safety concerns and deterioration to the building caused by deferred maintenance. In addition to the assessment, AEI develops a Modified Capital Reserves Schedule that approximates repairs and replacement costs most likely to occur over the evaluation period. This schedule allows the client to plan for large expenditures in advance of their replacement.
AEI’s PCA reports comply with client requirements and industry standards. Customized scopes are also available.
PHASE I ENVIRONMENTAL SITE ASSESSMENTS (ESA)
Phase I ESAs are an integral part of the due diligence and decision-making process for lending and property purchase decisions. A Phase I ESA includes a site visit and a historical and regulatory review that is designed to identify environmental issues such as current and historic environmental conditions that may affect property values, pose a financial liability to the purchaser or lender, or affect the ability of a borrower to repay a loan obligation. Clients may also obtain a Phase I ESA in order to satisfy requirements of the “innocent landowner defense” or other available defenses to environmental liability under CERCLA.
AEI’s Phase I Environmental Site Assessment (ESA) meets the most current ASTM Standard for Phase I ESAs,
and involves the following activities:
- Site inspection
- Adjacent/surrounding property reconnaissance
- A review of historical documentation
- A review of hazardous material and petroleum
- Local and regional file review
- Interviews with the property owner, tenants and
- Preparation of a report documenting the findings,
conclusions and recommendations
AEI’s reports are designed to be clear and concise. Our Phase I Environmental Site Assessment (ESA) reports are an essential part to many commercial and industrial real estate transactions and are conducted in accordance with the most current GE ASTM 1527-13 equivalent ESA level, and ASTM vetted PCA technical diligence resources.
AEI provides a seismic risk analysis in a Seismic Loss (SL) report in accordance with GE ASTM 1527-13 equivalent ESA level, and ASTM vetted PCA technical diligence resources. The SL report summarizes the risk of structural failure due to the vibratory motion from the maximum probable earthquake event that has a 10-percent chance of exceedance in a 50-year exposure period, or a 475-year return period.
AEI utilizes the Scenario Expected Loss Design Basis Earthquake (SELDBE) as the seismic loss damage ratio (commonly referred to as Probable Maximum Loss – PML). (SELDBE) is defined by ASTM E 2026-16 as the expected (mean) earthquake loss to a building resulting from a specified seismic induced ground motion (peak ground acceleration). The specified peak ground acceleration is based on the probabilistic seismic hazard analyses program FRISKSP-3.01b and the USGS database.The ASTM recently released guidance, ASTM 2557-16, indicating the use of the (SELDBE) estimate for CMBS transactions.
AEI can also provide the Scenario Upper Loss (SUL), which represents the scenario loss that has a 10% probability of exceedance due to the specified ground motion of the scenario considered. Both methods take into account various factors including construction type, site condition, soil type and location of the building to known faults.
The specific methodologies are governed by the lender, but all include the following:
- Review of available geologic and soils reports and drawings.
- Site visit and general assessment of the property, building(s), related facilities and general site characteristics.
- Preliminary assessment of earthquake ground shaking, liquefaction and fault surface rupture potential based on historical regional hazard data.
- Preparation of a report including a list of general seismic deficiencies and preliminary estimate of facility earthquake damage loss based on empirical loss estimation methodologies.