Loan Origination

Intended Use: For loan and securitization underwriting

Site Visit: Walk-through survey including visual observation of readily accessible areas and easily visible components and systems of the property

• Does not include removal of any components, testing of equipment or systems, detailed quantities or measurements

• Typical representative sampling includes:

• Multifamily – 10% to 20% of the units and all common areas

• Industrial – 50% to 100% of tenant areas, depending on size and observed conditions

• Retail – 50% to 100% of public areas and 25% to 50% of back areas

• Office – 25% to 75% of tenant areas

• Lodging/Assisted Living – 10% to 20% of guest areas and all common areas

Report: Provides brief, general descriptions of material building components and systems based on visual observation

Physical Deficiencies: General descriptions of types and relative pervasiveness of physical deficiencies with anticipated costs to remedy

• Intended to provide only an expected magnitude of costs

• Estimated costs based on approximated quantities and extrapolation from representative sampling

• Consultant will recommend additional investigations if items of concern are noted that require detailed analysis (structural, roof, mold, plumbing, electrical, HVAC, elevator, etc.)

Reserve Analysis: Estimated costs for typically anticipated replacement of major items during the loan term

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

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

Mold Description based on visual observation

• No testing or intrusive observations to determine extent or cause of suspected mold

Typical Timing: 3 weeks