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.
- Regulatory Compliance – Life safety, fire suppression systems, and general visual review of property compliance to the Americans with Disabilities Act (ADA). AEI services include contacting the local building, zoning, and fire department / authorities to identify any currently outstanding building or fire code violations at the subject property.
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 industry standards based on ASTM E-2018-15 requirements along with Freddie Mac, Fannie Mae or HUD guidelines. Customized scopes are also available.