Corfac News

29 052013

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:

Locally Owned. Globally Connected

CORFAC International is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail brokerage, tenant and landlord representation, investment sales, multifamily, self-storage, acquisitions and dispositions, property management and corporate services. Founded in 1989, CORFAC has 49 offices in the U.S., 5 in Canada and 17 in international markets, including Australia, Colombia, France, Germany, Ireland, Israel, Italy, Japan, Mexico, Romania, Russia, South Korea, Switzerland and the United Kingdom. CORFAC offices completed more than 10,000 lease and sales transactions totaling 620 million square feet of space valued in excess of $8.2 billion in 2018.