Corfac News

Last week, Partner Engineering and Science led a webinar earlier today explaining the basics of due diligence, including environmental, engineering, surveys, and more.  Fewer lenders require engineering assessments than environmental, but engineering assessments are still an important way to look at a property.

A Property Condition Assessment looks at the condition of all improvements, immediate repairs, and assessment reserves. Partner ESI includes an Immediate Repairs table and a Replacement Reserve Table in their report, which explains how the condition of the building will impact the assets financial performance.  The immediate repairs table usually includes anything over $3000.  The replacement reserve information includes a breakdown of costs and the cost per unit per year – that way the client knows exactly what is needed per unit (or per square foot).

When ordering a property condition assessment, make sure you ask for a registered engineer with at least 5 years of experience.  You can also specify the extent of the inspection – do you want them to look at 10% of your units or 100%? The cost will vary – but so will your understanding of the property!

More information on Property Condition Assessments and Reports is available on the Partner ESI website: http://www.partneresi.com/services/property-condition-reports.php.