Freddie Mac Property Condition Report

September 4, 2013

Freddie Mac and its DUS Lenders have specific requirements for their version of the Property Condition Report. The Freddie Mac Property Condition Report scope of work, as specified in the Freddie Mac Multifamily Seller/Servicer Guide and Chapter 15 Engineering and Property Condition Requirements, is similar to an ASTM E2018 Property Condition Assessment, but also has distinct differences.

The DUS Guide currently requires the Lender to provide a termite inspection report or a termite bond or other evidence of adequate coverage. The Lender is not required to submit a termite inspection report or bond if the project construction is steel or concrete and the Lender provides documentation of such fact. If the project construction is not steel or concrete, then in lieu of a termite report or bond the Lender must submit one of the following: –

-A letter from the current pest control company providing regular service to the Property, stating that the Property has been regularly treated to prevent termite and other wood boring insect infestation and, to its knowledge, there is no current infestation, or

-A letter from a qualified engineer (which must be the same engineer performing the physical needs assessment) indicating that there is no evidence of termite or wood boring insect infestation. In order to be a “qualified” engineer, such engineer must have completed termite inspection training and certification and must provide evidence of such.

– See more at: http://www.partneresi.com/fannie-mae-freddie-mac.php

 

See more at: http://www.partneresi.com/fannie-mae-freddie-mac.php


Property Condition Assessment / Property Condition Report

August 8, 2013

Property Condition Assessment, also called a Property Condition Report, is an evaluation of the capital expenses that will likely be required to maintain an asset in the short- and long-term.

The standard scope of work for the Property Condition Assessment is defined by ASTM E2018 and includes a walk-through survey of the property to assess the condition of building systems, components and other property improvements, and interviews and documents review regarding the age and condition of property improvements. The Property Condition Report includes tables of the short-term capital expenses (Immediate Repairs Table) and long-term capital expenses (Replacement Reserves Table).
PCAs can help lenders or buyers understand how the condition of the building and site improvements will impact the asset’s financial performance.

Learn more about Property Condition Assessments 
Watch a video about Property Condition Assessments


Due Diligence in San Diego

January 22, 2013

 

The Partner San Diego staff is familiar with the diverse geographical as well as the geological characteristics that are particular to San Diego. The Partner San Diego office provides Phase I Environmental Site Assessments, Phase II Environmental testing, Property Condition Assessments, and Asbestos Surveys in support of commercial real estate transactions.

In addition to providing Phase I ESAs, Partner provides Property Condition Assessments and Commercial Building Inspections for a wide variety of clients; including, CMBS lenders, Fannie Mae/Freddie Mac lenders, and equity clients. Most of our reports are performed to meet the standards set within ASTM E2018-08 guidelines.

While Partner offers Probable Maximum Loss Reports (PMLs) to every seismic zone in the United States, those that do commercial or multifamily transactions in San Diego truly understand the importance of an accurate PML report

Partner performs Phase II Environmental Testing either in support of a financing decision or to meet the requirements of the San Diego Regional Water Quality Control Board. Most of our reports are performed to meet the standards set by ASTM E1903-27(2002).

A zoning report is a necessary part of many real property transactions because the current owner is responsible for existing zoning violations. Partner’s Zoning Reports take usage regulations, San Diego and municipality provisions into consideration as well as other regulations; such as the Americans with Disabilities Act.

Some recent projects and experience that provide insight into our robust Southern California consulting practice can be found at: http://www.partneresi.com/city/san-diego.php


Property Condition Assessments

December 18, 2012

 

A Property Condition Assessment (PCA) is a survey of a property by an architect, engineer, or commercial building inspector in order to understand the condition of the building. A Property Condition Assessment Report (PCR) is generated and discusses each building system and its condition. Different lenders can have varying requirements regarding a PCR, but a common guide is the ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process.

The most important part of the Property Condition Assessment Report is the Immediate Repairs table and the Replacement Reserve Table, which helps the client understand how the condition of the building will impact the assets financial performance. Safety concerns usually show up in the Immediate Repairs Table along with failing or damaged building systems, while maintenance issues that can be deferred will be in the Replacement Reserve Table.

Scope

  • Site Assessment
  • Interviews
  • City Building Department

Building Systems Evaluated

  • HVAC Systems
  • Elevators
  • Plumbing
  • Data and Telephone
  • Boilers
  • Electrical
  • Fire Suppression Systems

 

Building Evaluation

  • Foundation
  • Structure
  • Roof Diaphragm
  • Interior Finishes
  • Building Envelope

 

Site Improvements Evaluated


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