Acquisition Due Diligence

Intended Use: To assist in underwriting, property valuation and price negotiation.

Site Visit: Review of original construction documents

• Varies based on client requirements with ranges from representative sampling similar to loan origination style to 100% walk through

• Can include multi-discipline teams performing evaluation, testing, measurement and invasive observations if requested by client (structural, roof, mold, plumbing, electrical, HVAC, elevator, ADA, etc.)

• Consultant will manage the process of retaining and directing each discipline and will include all results in a comprehensive report

Report Provides more detailed descriptions of building components and systems

• If 100% walk through is requested, the report can include unit checklists describing specific conditions at each unit and all common areas

Physical Deficiencies: Level of detail of estimated costs will vary depending on type of site visit conducted (order of magnitude to detailed estimates based on actual quantities)

• Can include detailed location and description of each instance of physical deficiency with anticipated costs to remedy

• If not part of original scope, consultant will recommend additional investigations if items of concern are noted that require detailed analysis (structural, roof, mold, plumbing, electrical, HVAC, elevator, etc.)

• If approved, consultant will direct each discipline and will include all results in a comprehensive report

Reserve Analysis: Estimated costs for typically anticipated replacement of major items during the loan term or an evaluation period specified by the client

• Expressed in $/unit/year or $/SF/year

Code Issues: Typically includes review of readily accessible documents and files or inquiry with agency personnel to assess the existence of material code violations on record

• If requested, can include in depth review of agency files and/or meetings with agency representatives

Mold: If mold is observed will recommend and manage a certified mold consultant to perform testing and intrusive observations to determine extent and likely cause(s) of suspected mold with remediation plan and anticipated costs

Typical Timing: 3 to 5 weeks