A Property Condition Assessment consists of an evaluation of the physical aspects of real estate and how its condition may affect the soundness of the clients’ financial decisions over time. In performing a Property Condition Assessment, we complete a site inspection to observe the property and improvements and evaluate their apparent physical condition. These improvements include a review of the following major property systems:
- Site Improvements
- Building Structures
- Building Envelope
- Interior Finishes & Fixtures
- Mechanical and Electrical Systems
- Life Safety & Building Codes
In addition to the walkthrough inspection, we also review available documentation such as maintenance records and building plans, conduct interviews with personnel associated with the project’s operation, and review municipal records at the local building and fire departments to ascertain the nature of any outstanding violations. Using the information obtained from these sources, we then evaluate the cost of repairs, replacements and significant maintenance items and provides the client with a cost estimate for the immediate needs at the subject property, as well as the ongoing capital reserves the property will require throughout a loan term. This information assists the client in their decision making process regarding loan financing and operating costs, as well as with portfolio management or acquisitions.
AKT Peerless also provides a number of other services within the Property Condition Assessment family of products. These services include:
- Physical Needs Assessments – PNA’s are utilized by Fannie Mae approved DUS Lenders in evaluating multifamily housing properties.
- HUD Project Capital Needs Assessment – HUD PCNA’s are also utilized in multifamily housing financed by FHA Lenders.
- Green Property Condition Assessments – The Green PCA incorporates energy efficiency and alternative energy sources into the Property Condition Assessment.
- Equity Property Condition Assessments – Equity PCA’s include recommendations from building system specialists and are primarily utilized by prospective buyers of real estate.
In addition to these Property Condition Assessment variations, AKT Peerless can also tailor our inspections and reports to meet our client’s specific needs.