FINAL Condition Assessment - Sept 2022 - Pinconning.MI.401 East 5th St.PCA.pdf
Pinconning Partners LLC Petitioner Vs. Township Of Pinconning Respondent · 26-000635-TT
Text extracted from the reviewed PDF, organized by page. OCR and reading order may contain errors; confirm details in the PDF below.
Page 1
Property Condition Assessment September 19, 2022 PREPARED FOR: WP Carey Inc. 395 9th Avenue, 58th Floor New York, NY 10001 PREPARED BY: The Vertex Companies, LLC 2501 Seaport Drive, Suite BH 110 Chester, Pennsylvania 19013 PHONE 610.558.8902 VERTEX Project No: 81549 401 East Fifth Street 401 East 5th Street Pinconning, Michigan 48650
Page 2
TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY ............................................................................................................................ 1 2.0 PURPOSE AND SCOPE OF SERVICES ........................................................................................................ 3 2.1 PURPOSE ............................................................................................................................................. 3 2.2 SCOPE OF SERVICES ............................................................................................................................ 3 2.3 REPORT RELIANCE ............................................................................................................................... 4 2.4 DEVIATIONS FROM THE GUIDE ........................................................................................................... 4 2.5 INACCESSIBLE AREAS / OBSERVATION LIMITATIONS / AREAS REVIEWED ......................................... 4 3.0 REPORT INFORMATION ........................................................................................................................... 6 3.1 ASSESSMENT DEFINITIONS ................................................................................................................. 6 3.2 REPORT TENSE .................................................................................................................................... 6 3.3 OPINIONS OF COST ............................................................................................................................. 6 4.0 ASSESSMENT INFORMATION .................................................................................................................. 8 4.1 SITE RECONNAISSANCE ....................................................................................................................... 8 4.2 BUILDING HISTORY ............................................................................................................................. 8 4.3 INTERVIEWS ........................................................................................................................................ 8 4.4 PRE-SURVEY QUESTIONNAIRE AND REQUEST FOR DOCUMENTATION ............................................. 9 4.5 DOCUMENTS ....................................................................................................................................... 9 4.6 MUNICIPAL RESEARCH & CODE COMPLIANCE ................................................................................. 10 4.7 SITE CHARACTERISTICS ..................................................................................................................... 11 5.0 SITE INFORMATION AND OBSERVATIONS ............................................................................................. 14 5.1 SITE ................................................................................................................................................... 14 5.2 BUILDING STRUCTURE ...................................................................................................................... 18 5.3 BUILDING EXTERIOR AND OPENINGS ............................................................................................... 20 5.4 BUILDING INTERIOR .......................................................................................................................... 24 5.5 BUILDING SYSTEMS AND FIRE/LIFE SAFETY, CONVEYANCE.............................................................. 26 6.0 ACCESSIBILITY (ADA) ............................................................................................................................. 31 7.0 REPORT QUALIFICATIONS & LIMITATIONS ............................................................................................ 36
Page 3
TABLES & CHARTS No. 1. Immediate Repairs / Deferred Maintenance & Short Term Repairs Table 2. Capital Needs Table APPENDICES A Photographic Documentation B Pre-Survey Questionnaire C Relevant Documents D Staff Statements of Qualifications
Page 4
THE VERTEX COMPANIES, LLC 700 TURNER WAY, SUITE 105 ASTON, PA 19014 610.558.8902 | VERTEXENG.COM September 19, 2022 WP Carey Inc. 395 9th Avenue, 58th Floor New York, NY 10001 Attn: Mr. Ryan Heard RE: Property Condition Assessment 401 East 5th Street Pinconning, MI VERTEX Project No. 81549 Dear Mr. Heard: The Vertex Companies, LLC (VERTEX) is pleased to submit this Property Condition Assessment (PCA) report for the above referenced property (the site). Our work was conducted in general conformance with proposal P.6135.22, dated August 25, 2022, and in general accordance with selected provisions of the E 2018-15 American Society for Testing and Materials (ASTM) document entitled "Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process" for commercial real estate. Please do not hesitate to contact us at your convenience should you have any questions or comments regarding this report or our recommendations. It has been a pleasure working with you on this project. Sincerely, The Vertex Companies, LLC Greg Bednarz Andrea G. Self Field Observer & Report Author Report Reviewer Project Manager Senior Project Manager
Page 5
401 East Fifth Street Privileged and Confidential Page 1 1.0 EXECUTIVE SUMMARY The Vertex Companies, LLC (VERTEX) performed a Property Condition Assessment (PCA) of the industrial building located at 401 East 5th Street in Pinconning, MI, on September 01, 2022. Overall, the property and improvements appeared to be in poor condition with respect to age, use and location. A table of salient information associated with the project is presented below and utilized throughout this report. SALIENT PROPERTY INFORMATION Property Name: Industrial Building Location/Address: 401 East 5th Street Pinconning, MI 48650 Construction Year(s): 1945 with approximately eight additions Property Type: Rear-load industrial Number of Units: Not Applicable Number of Stories: Single-story warehouse with 2nd floor office area Reported/provided Building Area (SF): 220,588 (Owner) Reported/provided Site Acreage: 13.4 (Bay County Address and Property Search) Surrounding Property Usage: Residential, retail, government, educational, cemetery Utility Service: Gas: Electric: Water: Sanitary: Storm: Consumers Energy Consumers Energy Bay County Water and Sewer Bay County Water and Sewer Bay County Storm Water For this assessment, issues identified as both Immediate/Deferred Maintenance and Capital Needs were categorized by building system in appropriate sections of the report the associated tables. A table of recommended Immediate/Deferred Maintenance and Short Term Repair items is presented immediately following this section as an overall summary of the building’s current condition.
Page 6
401 East Fifth Street Privileged and Confidential Page 2 A Capital Needs table, appended to the report, indicates a tabulations of items which, in our opinion, will reach the end of their useful life and need significant repair, renovation or replacement within a specific time period (5 years for this project).
Page 7
401 East Fifth Street Privileged and Confidential Page 3 2.0 PURPOSE AND SCOPE OF SERVICES 2.1 PURPOSE The purpose of the Property Condition Assessment (PCA) was to observe and document readily visible material and building system defects that might significantly affect the value of the property. The PCA also assessed existing conditions that might have a significant impact on the continued operation of the facility during a specified evaluation term. The term for this PCA was 5 years. It is understood that the Client owns the building, and the report will be used to identify necessary improvements to get the building into “good working order” at the end of the tenant’s lease and to better understand materials, systems or components nearing the end of their associated useful life. Observations performed during the PCA were made without operational testing and/or removing or damaging components of the building systems. Consequently, some system specific assumptions were made regarding the existing conditions and operating performance of each system. Furthermore, recommendations developed for this report were based on information discovered during the PCA. If additional information is discovered concerning the facility, the assumptions, conclusions, and recommendations presented herein may require re-assessment. The recommendations and opinions of cost provided in this report were also based on the understanding that the facility will continue to operate under similar use and occupancy as observed on the date of the site reconnaissance. 2.2 SCOPE OF SERVICES The PCA included the following: site reconnaissance; limited interviews with property management and maintenance personnel; written inquiries with appropriate local government authorities (e.g., building department and fire department) and a review of readily available documents provided by the current property owner. The PCA does not confirm the presence or absence of asbestos, polychlorinated biphenyls (PCBs), mold, or contaminated soils or groundwater on the property. During the PCA, VERTEX made visual observations of the following facility features: site development systems; building structure systems; building exterior systems; building interior systems; roof systems; mechanical systems; electrical systems; plumbing systems; conveyance systems; and life and fire safety systems.
Page 8
401 East Fifth Street Privileged and Confidential Page 4 2.3 REPORT RELIANCE This report is for the exclusive use of WP Carey Inc. and its affiliates, successor and assigns, and lender, and no party other than the preceding entities shall have the right to rely on any service provided by VERTEX without prior written consent. Use of this report by any other party shall be at such party’s sole risk. This report is intended for review as a complete document. Therefore, interpretations and conclusions drawn from the review of any individual section are the sole responsibility of the user. Conditions present at any time following the site visit date are subject to change, and as such the report is considered to have a limited shelf life. In any case, use or reliance upon the report shall not occur after six (6) months from the date of the site visit without VERTEX’s prior written authorization. In the event that future use or reliance is desired, an update of this report may be requested for an additional fee. 2.4 DEVIATIONS FROM THE GUIDE ASTM E2018-15 “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process,” was utilized as a guideline for the site visit and associated report preparation. ASTM requires that deviations from the guidelines be stated in the report. The following items were not required by the ASTM standard but were provided as part of this PCA at the request of the client or as value added considerations. Determination of USGS Seismic Hazard and IRC Termite Zone. A Capital Needs Assessment with a term length of 5-years was performed. A visual review of ADA related issues and general compliance was performed. 2.5 INACCESSIBLE AREAS / OBSERVATION LIMITATIONS / AREAS REVIEWED Representative observations were made at the facility in accordance with ASTM E2018-15. The following areas were not accessed, or access was limited during the site visit: Select metal roofs were viewed from above but not accessed (due to unsafe conditions) Select roof-mounted mechanical equipment information (due to unreadable or missing nameplates) Indoor split-system units (due to location above ceilings) Select drive-in bay doors (due to open doors/occupied bays)
Page 9
401 East Fifth Street Privileged and Confidential Page 5 Observations of the various systems, materials and building areas were performed as part of the site walk-through. Site observations of similar portions of the building or similar systems or materials were performed until, in VERTEX’s professional opinion, a representative sampling was adequate for extrapolation to the remainder of the building.
Page 10
401 East Fifth Street Privileged and Confidential Page 6 3.0 REPORT INFORMATION 3.1 ASSESSMENT DEFINITIONS GOOD: Material or building system was in average to above-average condition. Opinion is rendered with consideration to the item’s type, age, design, and location. Generally, other than normal maintenance, no work is recommended or required. FAIR: Material or building system was in average condition. Some work is required or recommended to return the system or material to a good condition. POOR: Material or building system was in below average condition. Significant work is anticipated to return the building system or material to an acceptable condition. Unless stated otherwise in this report, the material and building systems reviewed were considered to be in good condition and their performance appeared to be satisfactory. 3.2 REPORT TENSE This report was prepared in the past tense as it is intended to only describe observed conditions at the time of the site reconnaissance. 3.3 OPINIONS OF COST The cost tables associated with the PCA include itemized costs divided into two categories: Immediate / Deferred Maintenance / Short-Term Repair items. • Immediate Deferred Maintenance Repair items are defined as physical deficiencies that cannot be remedied with routine maintenance, normal operating maintenance, etc., excluding de minimis conditions that generally do not present a material physical deficiency to the subject property. These items are typically considered to be: (1) material existing or potential unsafe conditions resultant from damage or deterioration (2) material building or fire code violations as revealed by municipal agencies; or (3) conditions that if left unremedied, have the potential to result in or contribute to critical element or system failure within one year, or will result most probably in a significant escalation of its remedial cost. In most cases, items deemed as Deferred Maintenance, or items that should have been repaired to maximize their service life, are also included in this category.
Page 11
401 East Fifth Street Privileged and Confidential Page 7 • Short-Term Repairs are defined as physical deficiencies that may not warrant immediate attention, but require repairs or replacements that should be undertaken on a priority basis in addition to routine preventative maintenance. In some cases, Short-Term repairs may include recommendations for testing, exploratory probing, and/or further analysis. Generally the expected time frame for Short-Term Repairs is within one to two years. Capital Needs • Capital Needs are those items of a capital nature which are expected to require repair, renovation or replacement during the requested evaluation term, in this case 5 years. The opinions of cost presented herein were based on readily visible material and building system defects that might significantly affect the value of the property during the requested assessment term. These opinions were based on approximate quantities and values, and do not constitute a warranty or guarantee that all item(s) requiring repair were included. Items not incorporated into the cost tables include operational costs, such as landscaping maintenance and utility (gas or electricity) usage, unpredictable (aesthetic) upgrades, or normal operation and maintenance. The availability of parts or qualified personnel for repairs or renovations may be limited and is not factored into cost estimates unless specifically stated. Unless specified otherwise, anticipated costs do not consider the presence of hazardous materials with regard to escalation in unit costs for repairs or replacements. Estimated costs were developed with published unit price data and industry experience. These opinions should not be interpreted as a bid or offer to perform the work. The primary source of cost data was Commercial Renovation Costs with RS Means Data (2021 and 2022) as published by R.S. Means and Company. Costs for selected items were estimated based on provided documentation, and VERTEX’s experience with buildings of similar size, construction and geographic location. It is important to understand that actual costs will vary depending on such factors as contractor expertise, previous contractor commitment, seasonal workload, insurance and bonding, and local labor conditions. These factors may cause wide variations in the actual costs as estimated by different bidders. In addition, the costs presented in the tables do not include fees for design services, permits, management fees, taxes or other indirect costs which may be required for some work items. In view of these limitations, the costs presented herein should be considered “order of magnitude” estimates and used for preliminary budgeting purposes only. Preparation of scopes of work and contractor bidding are recommended to forecast the actual costs.
Page 12
401 East Fifth Street Privileged and Confidential Page 8 4.0 ASSESSMENT INFORMATION 4.1 SITE RECONNAISSANCE The site reconnaissance portion of the PCA was performed by Greg Bednarz of VERTEX. Weather conditions during the site reconnaissance were as follows: On-site Date Weather Description Average Temp. September 01, 2022 Sunny 77°F The following building features were assessed, if applicable: • Exterior Site Elements • Mechanical System • Building Structure System • Electrical System • Building Exterior System • Plumbing System • Roof System • Building Interior System • Life and Fire Safety System 4.2 BUILDING HISTORY The subject property is located at 401 East 5th Street, Pinconning, Bay County, Michigan. The subject property consists of approximately 13.4 acres of land. The subject property is improved with a 220,588 square-foot, single-story production warehouse with a two-story office space. The original building was constructed in 1945, with several building expansions in the following years. The building includes production warehouse space, office space, employee break areas and restrooms. Exterior areas on-site consist of a paved parking lot and drive lanes, truck loading bays and limited landscaped areas. Advanced Vehicle Assemblies is currently the sole tenant. According to the Site Contact, significant capital improvements and/or major repairs at the site have not been performed in recent years. 4.3 INTERVIEWS Interviews were conducted with personnel familiar with the facility to obtain information relative to the condition of the various building systems. Information obtained during the interviews has been incorporated into this report in the applicable sections. The following individuals or agencies were interviewed or contacted:
Page 13
401 East Fifth Street Privileged and Confidential Page 9 • Leonard Sweet, Plant Manager, Tubular Metal Systems, LLC (Site Contact) • Jaron Trombley, Maintenance Technician, Tubular Metal Systems, LLC • Gary, Building Inspector, Area Code Enforcement (zoning, building) • Dave Ramsey, Fire Chief, City of Pinconning 4.4 PRE-SURVEY QUESTIONNAIRE AND REQUEST FOR DOCUMENTATION VERTEX requested additional documentation from the Site Contact by sending a Pre-Survey Questionnaire and Request for Documentation (PSQ). At the time of this report, the PSQ had not been returned. A blank copy of the written request is included in Appendix B. VERTEX will forward additional significant information upon receipt and review. 4.5 DOCUMENTS The table below indicates the documents requested by VERTEX as part of this assessment, and the status of the request. Priority 1 - Critical to the PCA analysis. Priority 2 - Confirmatory in relation to our estimates of system, material or component age. Priority 3 - Supplemental information in support of observations, opinions or other documents. PRIORITY DOCUMENT REQUESTED RECEIVED?* 1 ACTIVE WARRANTIES ☐ YES ☒ NO ☐ N/A 1 LISTING OF CAPITAL EXPENDITURES WITHIN PAST 5 YEARS ☐ YES ☒ NO ☐ N/A 1 PENDING PROPOSALS FOR REPAIR OR RENOVATION S ☐ YES ☒ NO ☐ N/A 1 COPIES OF CITATIONS, VIOLATIONS FROM MUNICIPALITY ☐ YES ☒ NO ☐ N/A 1 CERTIFICATE(S) OF OCCUPANCY ☐ YES ☒ NO ☐ N/A 1 CERTIFICATES OF COMPLIANCE (ELEVATOR, BOILERS, ETC.) ☐ YES ☐ NO ☒ N/A 2 REPAIR/MAINTENANCE LOGS ☐ YES ☒ NO ☐ N/A 2 ALTA SURVEY ☐ YES ☒ NO ☐ N/A 2 BUILDING PLANS ☐ YES ☒ NO ☐ N/A 3 PREVIOUS STUDIES (PCA, ESA, ROOF CONDITION, ADA, ETC.) ☐ YES ☒ NO ☐ N/A 3 PROMOTIONAL LITERATURE/LEASING INFORMATION ☐ YES ☒ NO ☐ N/A 3 SERVICE/MAINTENANCE CONTRACTS ☐ YES ☒ NO ☐ N/A
Page 14
401 East Fifth Street Privileged and Confidential Page 10 PRIORITY DOCUMENT REQUESTED RECEIVED?* 3 BUILDING RENT ROLL, OCCUPANCY PERCENTAGE ☐ YES ☒ NO ☐ N/A In addition to the documents above, the following additional documents were either provided or discovered during VERTEX’s research of the property history. Description Author Date Reviewed No copy obtained Copy obtained* Flood Insurance Rate Map (Community Panel # 26017C0127E) Federal Emergency Management Agency 09/17/2010 ☐ ☒ Property Details Bay County GIS 08/31/2022 ☐ ☒ *We have included copies of selected documents in Appendix C; however, larger documents we obtained may simply be referenced here and can be provided upon request. 4.6 MUNICIPAL RESEARCH & CODE COMPLIANCE A detailed analysis of the building in order to determine compliance with current codes was not performed as part of this assessment. Code compliance research and evaluation was limited to the following. a) Visual observation of materials, components or systems that due to obvious deterioration or damage have resulted in an unsafe condition. Such conditions must have been visible without probing, dismantling or uncovering or unblocking access, and must not have required specialized knowledge of any particular code or any measurement or calculation for dimensional, clearance, or other compliance. b) Written inquiry or verbal interview with local building officials to determine if there were open or unresolved building, zoning or fire code issues on file with the local government related to the subject property. c) An attempt to determine whether or not there were specific “non-grandfathered” items listed with the local government that an owner may be forced to upgrade or replace even if no building renovations are performed. d) A written inquiry or verbal attempt to obtain the most recent “base-building” Certificate of Occupancy for the property. Issues of unsafe conditions related to visual deterioration or damage, if observed, are identified and discussed in the various sections of this report specific to the material, component or system.
Page 15
401 East Fifth Street Privileged and Confidential Page 11 VERTEX sent written requests for information to the local municipal offices with jurisdiction over the property with respect to building, zoning and fire code compliance. The requests referenced the Freedom of Information Act (FOIA) and inquired about the existence of any material code violations or safety related issues on file with the municipality. At the time of this report, responses from the appropriate authorities had not been received. VERTEX will forward significant information upon receipt and review. Copies of the written requests for information are provided in Appendix C. 4.7 SITE CHARACTERISTICS General site characteristics including site topography, flood zone, seismic considerations, and termite considerations are tabulated and discussed below. Topography The property was relatively flat, with crowns in pavements and landscaped areas provided for runoff of surface water. Flood Zone VERTEX visually plotted the general property location on FEMA Flood Insurance Rate Map. This should not be considered a flood zone certification. Actual determination of flood zones should be performed by a registered surveyor. Subject Property Flood Zone: The site is generally located in Zone AE, defined as areas subject to inundation by the 100-year flood determined in a Flood Insurance Study by detailed methods. Base flood elevations are typically shown within these zones. However, the southwest portion of the site is located in an area identified as Zone X (non-shaded area), defined as areas outside the 500-year flood plain.
Page 16
401 East Fifth Street Privileged and Confidential Page 12 Seismic Considerations The probability of ground damaging motion within each Seismic Zone is defined below based on the Seismic Zone Map in Figure A, (1997 Uniform Building Code). • (0 or 1) low probability • (2A) low to moderate probability • (2B) moderate probability • (3) moderate to high probability • (4) high probability While there are more recent seismic risk maps, they generally require specific information on the seismic response characteristics of the site and structure. For ease and consistency, and comparision with previous standards, the ASTM standards associated with Probable Maximum Loss (PML) seismic studies, rely on this 1997 map. In general terms, those properties located in Zones 3 and 4 have a greater risk of ground damaging motion, and PML studies are typically recommended in these zones. The subject property for this evaluation was located in Seismic Zone: 0 and a PML is not not recommended.
Page 17
401 East Fifth Street Privileged and Confidential Page 13 Termite Considerations Termite Zones identified in the 2000 International Residential Code (IRS) are shown in Figure B. The subject property is located in the following Termite Infestation Region: Slight to Moderate Foundation and exterior walls constructed with concrete, CMU, steel, and glass may serve to minimize the risk of building damage due to wood destroying insects; however, structures with signifcant portions of wood framing elements are subject to potential damage from wood destroying insects. Wood framing elements were utilized for the construction of portions of this facility. We did not observe evidence of wood destroying insect activity and none was reported by the Site Contact; however, in the event that certification of the absence or present of termite activity is required, a licensed pest inspection professional should be engaged to perform a formal survey.
Page 18
401 East Fifth Street Privileged and Confidential Page 14 5.0 SITE INFORMATION AND OBSERVATIONS The following sub-sections describe the major building systems as observed during the PCA. Comments and/or recommendations offered by VERTEX regarding each system are presented immediately after each description in italic print. Each deficiency is assigned an item number and is cross- referenced in either the Immediate/Deferred Maintenance and Short Term Repairs Table in Section 1.0 or the appended Capital Needs Table. Numbered photographs are presented in Appendix A and cross-referenced to report and table sections as applicable. 5.1 SITE Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # No. of Parking Spaces: 135 Standard parking spaces None Accessible parking spaces 135 Total spaces Based on a physical count and satellite image. Due to moderate to severe weathering of asphalt pavement, this is an approximate estimate. Pavement: Parking was provided on an open surface lot at the northeast and east sides of the building. Pavement was constructed with asphalt with painted parking stalls. Additionally, a narrow section of pavement was observed along East Pinconning Road at the south side of the building Pavement at the drive-in bays, scrap metal area and other selected locations at the north and east sides Significant portions of the asphalt pavement throughout the property were in poor condition with evidence of surface weathering, cracking, and potholes that require milling and repaving. See the Deferred Maintenance Table. It is recommended that a formal scope of work and cost estimate be obtained by a qualified vendor. In addition, regular cutting and patching and crack sealing and sealcoating of asphalt will be required during the evaluation term. Budgetary allowances 1.01, 1.02 1,2,3
Page 19
401 East Fifth Street Privileged and Confidential Page 15 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # of the building was constructed with cast-in place concrete. and forecasts for implementation are included in the Capital Needs Table. Significant cracking and deterioration was noted at a cast-in place concrete pad at a metal service door and overhead door near the southeast corner of the building. Sectional replacement of this area should be performed as soon as possible. See the Deferred Maintenance Table. Additionally, we observed areas of edge cracking, random cracking and vegetation growth that indicate some cutting and patching repairs should be expected during the evaluation term as part of Routine Maintenance. 1.03 Curbs and Sidewalks A small portion of concrete sidewalk was observed at the office entrance near the southwest corner of the building. The sidewalk was raised above the pavement areas with no curbing. Concrete curbing was provided at the driveway near the southeast corner of the site, along East Pinconning Road. The curbing at the southeast driveway appeared to be in generally good overall condition requiring general repairs as part of Routine Maintenance during the evaluation term. Evidence of cracking and deterioration was observed near the main office entrance and represent a tripping or safety hazard. Sectional replacement of this area should be performed as soon as possible. See the Deferred Maintenance Table. 1.04
Page 20
401 East Fifth Street Privileged and Confidential Page 16 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Fencing & Retaining Walls: We observed a chain link fence with rolling gates extending from the driveway off East 4th Street to the driveway off East Pinconning Road. The fence provided security at the parking lots and truck court and was topped with barbed wire. A masonry retaining wall was observed at the drive- in bay at the north side of the building off East 4th Street at the grade change between the well and adjacent pavement. In addition, two (2) masonry retaining walls were located near the main office entrance at the grade change between planted landscaping and hardscape. Metal guardrails were located along the exterior walls at the northeast corner and east side of the building in the main parking lot and truck court. The observed fencing appeared to be in good to fair overall condition with evidence of corrosion and bent or damaged support poles at a few scattered locations, and an inoperable rolling gate at the northwest driveway entrance. Sectional replacement of the fencing and gate should be performed as soon as practical. The drive-in bay retaining wall was in poor overall condition with significant evidence of deterioration, settlement cracking and displacement was observed at isolated locations. A budgetary allowance for repair/replacement is presented in the Deferred Maintenance Table. In addition, regular inspections of the retaining structure should be performed to monitor potential movement. This is considered a routine maintenance item. The retaining walls at the main office entrance appeared to be in good condition. Regular inspections of the retaining structure should be performed to monitor potential movement. This is considered a routine maintenance item. We noted some corrosion and peeling paint at the metal guardrails. We recommend cleaning and 1.05 1.06
Page 21
401 East Fifth Street Privileged and Confidential Page 17 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # painting with an anti-corrosive paint. This is considered to be an item of Routine Maintenance. Drainage: Storm water drained across the paved surfaces to catch basins and underground piping that reportedly discharged to the municipal storm sewer system. Site drainage systems appeared to be in generally good condition. Regular inspection and maintenance of drainage components and clearing of the inlets and drainage paths will be required during the evaluation term as part of routine maintenance. Exterior Lighting: The facility parking areas and drive-in bays were illuminated by wall mounted fixtures located along the north and east sides of the building perimeter. Additional lighting at the west end of the main parking area was provided by a metal pole-mounted light fixture and a utility pole-mounted light fixture. The main office entrance at the southwest corner of the building was illuminated by recessed fixtures at the underside of the exterior soffit. The site lighting appeared to be in good overall condition; however, VERTEX did not visit the site at night to observe the operation of the site lighting. No action other than regular inspection and routine maintenance is anticipated.
Page 22
401 East Fifth Street Privileged and Confidential Page 18 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Landscaping: The landscaping at the site consisted of shrubs and flowers at the main office entrance and grass areas and trees along portions of East Pinconning Road to the south. The observed landscaping elements appeared to be in good overall condition and were well-maintained. Recreational Areas: Not Applicable N/A N/A Ancillary Structures: Not Applicable N/A N/A 5.2 BUILDING STRUCTURE Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Building Structure: Plans were not provided for our review. Based on our experience with buildings of this size and type in this geographical area, it is assumed that the building foundation system consisted of conventional spread and continuous wall footings with steel reinforcement. The building foundations were concealed below grade; however, no significant damage or evidence of building settlement or failure was evidence. The foundations are presumed to be in good condition based on exterior and interior observations.
Page 23
401 East Fifth Street Privileged and Confidential Page 19 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # The building was constructed with cast-in-place concrete floor slabs at the grade level. Portions of the warehouse floor slab were concealed with an epoxy resin finish. In areas where exposed, control joints and expansion joints were observed at regular intervals throughout the field of the floor. Based on our observations at exposed locations, the building structure consisted primarily of a mixture of masonry and structural steel framing supporting structural steel open web joists and metal roof decking. At pitched metal roof locations, the metal roof panels were supported by structural steel framing elements, including steel purlins supported by steel beams and columns. The floor slabs appeared to be in good to fair condition with no evidence of significant deterioration or failure; however, evidence of slab cracking and deteriorated epoxy resin finish was observed in scattered locations at the production warehouse areas. Epoxy repairs of selected slab areas is recommended. This is considered to be an item of Routine Maintenance The control joints observed at the building floor slabs had not been filled with semi-rigid materials or had been filled but the sealants were badly worn and shrunken. Crack filler serves to stabilize the control joints and limit potential for edge cracking under typical warehouse loadings such as fork trucks. Cleaning of control joints and filling with semi-rigid sealant should be considered as a measure to limit pre-mature deterioration and associated performance issues. Addition of this material also inhibits moisture and pest intrusion. A budgetary allowance for this repair is included in the Capital Needs Table; however, it is recommended that a formal scope of work and repair estimate be obtained by a qualified vendor. 4
Page 24
401 East Fifth Street Privileged and Confidential Page 20 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # We observed approximately five impact damaged columns located at scattered locations throughout the manufacturing portions of the building. Repairs to the observed damaged columns should be evaluated, designed and performed by a qualified structural repair contractor. Budgetary allowances and forecasts for implementation are included in the Deferred Maintenance Table; however, It is recommended that a formal scope of work and cost estimate be obtained by a qualified vendor. 2.01 5.3 BUILDING EXTERIOR AND OPENINGS Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Exterior Walls: The primary cladding at the building consisted of painted concrete masonry unit (CMU) block and metal panels. Wall adornments, trims and decorative accents included brick in a running bond pattern at the main office entrance with a metal panel clad canopy above. The masonry block walls at the building appeared to be in good to fair condition with some evidence of step cracking and deteriorated mortar at scattered locations throughout. Renovation of walls including block repair, repointing, cleaning and painting should be anticipated during the evaluation term. A budgetary allowance is included in the Capital Needs Table. 5, 6
Page 25
401 East Fifth Street Privileged and Confidential Page 21 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Joints within the field of the CMU walls, wall penetrations (window and door openings) and at cladding material interfaces were filled with flexible caulking. The metal panel walls appeared to be in generally good condition. Impact damage was observed at a scattered locations. Based on the observed condition, age and estimated RUL of the coatings, renovation of the metal panel walls including minor metal panel repair, cleaning and painting will be required during the evaluation term. A budgetary allowance is included in the Capital Needs Table. Estimated budgetary allowance includes raised portions at roof. The sealants appeared to be in fair to poor condition, removal and re-application of wall and wall penetration sealants should be expected during the evaluation term at wall joints and wall penetrations. A budgetary allowance is included in the Capital Needs Table. 7 8 Windows and Doors: The building windows typically were operable tinted units set in wood and aluminum frames. The main entrance door to the office portion of the building was a storefront style swing door with full glass vision panels set in metal frames. Metal service doors provided building access to warehouse and back-of-house areas. Windows appeared to be in good to fair condition. No action other than routine repairs and maintenance is anticipated. The exterior storefront style entrance door appeared to be in good condition. The metal service doors appeared to be in good to fair condition with some showing evidence of
Page 26
401 East Fifth Street Privileged and Confidential Page 22 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # corrosion and general wear. Replacement of metal service doors is recommended. See the Deferred Maintenance Table. 3.01 Truck Docks The building included four (4) interior truck docks accessed by drive-in metal rollup doors that provided an elevated loading platform. The docks included bumper guards and load levelers. The metal rollup doors were manually operated. The building included five (5) additional drive-in bays with manually operated metal rollup doors. The interior truck dock equipment and drive-in metal rollup doors appeared to be in generally good condition requiring routine repairs and maintenance during the evaluation term. Roof Covering: The primary building roof was covered with the following system: • Single-ply Thermoplastic Polyolefin (TPO) • Built-up roof with gravel surfacing • Standing Seam Metal Roofing Panels The roof included a perimeter parapet at the west and portions of the north sides. The membrane roofing turned up the parapet wall and terminated under perimeter coping. We requested a copy of any roof warranties, but none had been provided at the time of this report. Any active warranties should be provided, so that transfer provisions and warranty limitations can be reviewed. The TPO and Built-up roofing membranes appeared to be in fair overall condition with evidence of some historical patching, general surface wear and overall weathering of the roof coverings and flashings. Based on the observed conditions and estimated ages and RUL of the membranes, replacement is anticipated during the 9, 10
Page 27
401 East Fifth Street Privileged and Confidential Page 23 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # A canopy structure with a standing-seam metal roof was observed over the scrap metal area at the northeast corner of the facility. The structure was supported by structural columns. Two similar, smaller structures were also observed at the building. evaluation term. A budgetary allowance is included in the Capital Needs Table. The metal roofs may be candidates for renovation, which often includes application of elastomeric liquid applied coatings. Such actions can serve to extend the service life of metal roofs and a budgetary allowance is included in the Capital Needs Table. 11 Roof Drainage: The TPO and Built-up roof systems were relatively flat, with a slight pitch toward internal roof drains and perimeter gutters and downspouts. The primary drains discharged to underground piping and the downspouts discharged to underground piping and internal roof drains at lower level roofs. The metal panel roofs were equipped with perimeter gutters and downspouts, with direct discharge into the storm water management system through underground piping. Evidence of water ponding was observed in multiple locations throughout the field of the roof systems. While installation of supplemental roof drains in these areas may relieve the current ponding conditions; in the absence of active leaking, restoration of positive drainage through the use of tapered installation or installation of supplemental roof drains should be performed at the time of re-roofing, unless leaking issues become apparent or chronic in these locations.
Page 28
401 East Fifth Street Privileged and Confidential Page 24 5.4 BUILDING INTERIOR Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Common Areas: The property tenant entrances were accessed directly from the exterior. There were no common spaces or public areas. N/A N/A Office Areas: Office areas and general work spaces for tenant employees were generally finished with the following: • Floors: Epoxy Resin • Walls: Painted gypsum board, Wainscot panel • Ceiling: Suspended grids with drop-in tiles The office area finishes appeared to be in generally good overall condition requiring routine maintenance during the evaluation period. Ceiling tile damage associated with past roof and/or mechanical equipment leaks was observed at a few scattered locations throughout the office areas. Replacement of damaged and missing tiles should be expected during the evaluation term as part of routine maintenance. Employee Break Areas: Employee break areas were generally finished with the following: • Floors: Epoxy Resin, Tile • Walls: Painted gypsum board, Wainscot panel The employee break area finishes appeared to be in generally good overall condition requiring routine maintenance during the evaluation period.
Page 29
401 East Fifth Street Privileged and Confidential Page 25 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # • Ceiling: Suspended grids with drop-in tiles Warehouse Areas: Warehouses generally included exposed concrete flooring, exposed structural elements at the ceiling and painted CMU, gypsum board and metal panel at the perimeter walls. The warehouse finishes appeared to be in generally good to fair overall condition requiring cleaning and repairs as part of routine maintenance during the evaluation term. Restrooms: Typical restroom finishes at the buildings were consistent with the general tenant space finishes. The restroom finishes appeared to be in generally good to fair overall condition requiring routine maintenance during the evaluation period. Stairs: Stairs provided access between the ground floor and second-story office space and were constructed with a rubber-covered stair assembly with closed risers, and wood perimeter handrails. Observed stairs at the warehouse mezzanines and interior truck dock were constructed with steel assemblies with open risers and painted steel pipe railings and handrails. Except as noted below, the stair assemblies appeared to be in generally good overall condition requiring routine cleaning and maintenance during the evaluation term. We observed damage and deterioration to a metal stair assembly located at a warehouse mezzanine leading to roof access. The stair treads bowed under pressure and appeared unstable. Based on these observations, repairs and/or renovations are required and a budgetary allowance is included in the Deferred Maintenance Table. 4.01
Page 30
401 East Fifth Street Privileged and Confidential Page 26 5.5 BUILDING SYSTEMS AND FIRE/LIFE SAFETY, CONVEYANCE Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # HVAC Systems (Cooling): The 2-story office space and a portion of the manufacturing warehouse at the southwest corner of the building were air conditioned with rooftop package units (RTUs). The 9 units serving these areas were manufactured by Trane, York, Rheem and Fraser-Johnston between 1999 and 2015. The units had estimated rated cooling capacities ranging from 2.5 to 6 tons. Units had efficiency ratings (SEER) of 14, 13 and 11 or less. Condensate was allowed to drip directly to the roof surface. Two (2) split system units serving warehouse office spaces were manufactured by Trane between 2015 and 2018. The units had estimated rated cooling capacities of 3 tons. Condensing units had efficiency ratings (SEER) of 13. Air handlers (AHUs) were reportedly located above ceilings and condensers were located on the roof. A few selected spaces were cooled by through wall/window units. The observed package units appeared to be in generally fair to poor condition. We observed corrosion to the cabinets, bent and damaged condensing fins, overall wear and weathering. Based on the age, wear and estimated RUL of the units, replacement most of the units is recommended. A budgetary allowance of cost is included in the Deferred Maintenance Table. The observed split systems appeared to be in generally good condition. Based on the estimated RUL of the units, replacements should not be expected during the evaluation tern. The observed through wall/window units appeared to be in generally fair condition. Based on the estimated RUL of the units, replacements should be expected during the evaluation tern. Due to the minimal aggregate quantity and associated cost, this item is considered to be routine maintenance. 5.01
Page 31
401 East Fifth Street Privileged and Confidential Page 27 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # A summary of major mechanical equipment is presented in Appendix C of this report. HVAC Systems (Heating): Primary heating of the office portion of the building was provided by the units described above. The RTUs were equipped with natural gas heat. The primary heating source for the manufacturing warehouse portion of the building included a series of natural gas infrared tube heaters suspended below the roof structure of the building. The condition of the RTUs is discussed above in HVAC Systems (Cooling). The infrared tube heaters appeared to be in fair condition and due to the age, observed condition and estimated RUL of the units; some replacements are expected as needed during the evaluation term and a budgetary allowance of cost for this item is included in the Capital Needs Table; however, it is recommended that a formal scope of work and replacement estimate be obtained by a qualified vendor. 12 HVAC Systems (Ventilation): The RTUs were equipped with fresh air economizers. Bathrooms were provided with exhaust by powered centrifugal ventilation units mounted on the roof. Additional mechanical ventilation at the warehouse areas was provided by conventional ceiling fans, floor- and column-mounted industrial fans and through wall ventilation fans. Indoor air quality was not studied as part of this assessment. Observed exhaust and air movement equipment appeared to be in good to fair condition. Renovation of selected ventilation equipment including fan motor replacement, lubrication and general repairs should be expected throughout the evaluation term as part of Routine Maintenance.
Page 32
401 East Fifth Street Privileged and Confidential Page 28 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # Passive ventilation was provided by operable windows and doors, overhead doors in the warehouse and natural air infiltration. Electrical Systems: Pad mounted transformers located outside the south end and southeast corner of the building fed the main switchgears in the production warehouse. It was reported that the distribution wiring providing power to the branch circuits within the leased spaces consisted of copper. Where observed, wiring was located in rigid and flexible metal conduit. The electrical equipment generally appeared to be in good condition. The building is considered to have adequate capacity and power available for the tenant and current occupancy. The main electrical gear was accessible and was free from debris or stored materials. No action other than routine inspection and maintenance of electrical equipment is anticipated during the evaluation term. Plumbing Systems: A series of smaller electric water heaters (estimated 50-gallon or less) provided hot water for the building. The heaters typically were located above the restroom ceilings or suspended from the warehouse roof deck. Wastewater generated at the building was conveyed to underground piping, which discharged to the municipal sewer system owned and maintained by the Sanitary provider. The water heaters appeared and were reported to be in generally good condition. Based on the estimated RUL of the units, some replacements should be expected during the evaluation term; however, based on the limited expected costs associated with such replacements, this is expected to be handled as part of Routine Maintenance. Fire Protection: The building was protected by an automatic, wet- pipe fire sprinkler system, which relied on municipal water pressure to operate. Pressure read from gauges on the risers indicated a static pressure of The sprinkler system appeared to be in good condition. Inspection tags on the system from the private fire protection vendor (Summit
Page 33
401 East Fifth Street Privileged and Confidential Page 29 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # approximately 50 psi. Sprinkler heads were observed throughout the building. A spare sprinkler head cabinet was not observed at the property. The building was not provided with a fire alarm system. Hard-wired smoke detectors were not observed at the building. Smoke control measures were not observed. Fire extinguishers were provided at various locations throughout the building. Companies) indicated the system was last tested and inspected in October, 2021. We could not locate documentation relating to the last 5-year internal inspection. An estimated cost for this item is included in the Deferred Maintenance Table. In the event that current inspection documentation can be provided, this item is not required. A cabinet of spare sprinkler heads was not provided near the sprinkler risers as required by NFPA. Installation of a spare sprinkler head cabinet equipped with spare heads and wrenches for each type is recommended and a budgetary estimate of cost is included in the Deferred Maintenance Table. We observed several heads in scattered locations throughout the office areas with missing escutcheon places. A detailed inspection and inventory of missing plates would be required to determine the number of specific locations where installation is required. A budgetary estimate of costs extrapolated from the areas where this 5.02 5.03 5.04
Page 34
401 East Fifth Street Privileged and Confidential Page 30 Item: Description: Comment / Observed Conditions: Deferred Maint. Item 5-Year Cost Item # condition was observed, is included in the Deferred Maintenance Table. According to equipment tags, the fire extinguishers in the building were last tested and inspected within the last 12 months by Summit Fire Protection. Elevators: Not Applicable N/A N/A
Page 35
401 East Fifth Street Privileged and Confidential Page 31 6.0 Accessibility (ADA) The Americans with Disabilities Act (ADA) is not a building code; it is a civil rights law that was enacted in 1990 to provide persons with disabilities with accommodations and access equal to, or similar to, that available to the general public. Title III of the ADA requires that owners of buildings that considered to be placed of public accommodations remove those architectural barriers and communications barriers that are considered readily achievable in accordance with the resources available to the building ownership to allow use of the facility by the disabled. The obligation to remove barriers where readily achievable is an ongoing one. The determination as to whether removal of a barrier or implementation of a component or system is readily achievable is often a business decision, which is based on the resources available to the owner or tenants and contingent upon the timing of implementation. Determination of whether barrier removal is readily achievable is on a case-by-case basis; the United States Department of Justice did not provide numerical formulas or threshold of any kind to determine whether an action is readily achievable. As required by the ADA, the U.S. Architectural and Transportation Barriers Compliance Board promulgated the ADA Accessibility Guidelines (ADAAG), which provided guidelines for implementation of the ADA by providing specifications for design, construction and alteration of facilities. The ADAAG was superseded by the 2010 ADA Standards for Accessible Design. As part of this PCA, VERTEX performed a “Baseline Evaluation” of ADA consisting of a limited scope visual survey and completion of a checklist extracted from ASTM E2018-15 X2. This visual review most closely resembles what was previously known as a Tier I ADA survey in ASTM E2018- 08. Our survey was limited to visual observations unless specifically stated. Measurements were not taken, and compliance with dimensional tolerances stated by the guidelines was only visually assessed. While opinions of cost to correct noted barriers have been provided, they do not constitute a recommendation that removal of the barriers are “readily achievable” and not an “undue burden” as stated in the ADA. Although access is required to be provided to individuals with disabilities to approach, enter, and exit employee-only areas, VERTEX did not review the employee-only interior spaces and entrances. Paths of travel leading to the entrances were reviewed as part of the interior and exterior common areas. At least one accessible entrance to each tenancy in a facility should comply. VERTEX did not review the tenant entrances or features and amenities within the tenant spaces since they are the responsibility of the tenant.
Page 36
401 East Fifth Street Privileged and Confidential Page 32 In addition to the new 2010 ADA Standards, some states and municipalities have adopted building codes similar to the 1991 ADA Accessibility Guidelines (ADAAG). In some instances, these code requirements are more restrictive than the 1991 ADAAG. For purposes of this report, state specific requirements were not considered as part of this report. Representative areas of the following portions of the site were surveyed: 1) Parking – Comparison of the number of provided parking stalls designated for handicapped use to the number required for the reported parking stall total for the site. 2) Exterior Accessible Route and Building Entrances - Visual identification of physical barriers from parking to the building entrances. 3) Building Entrances - Review of the building entrance access to the interior. 4) Interior Accessible Routes and Amenities – Review of the interior route, obstructions, path of travel and access to public features and equipment. 5) Interior Doors – Review of doors, clear width, hardware and apparent opening force. 6) Elevators – Observation of elevator floor area, signals, signs, safety devices, and emergency call systems. 7) Toilet Rooms - Visual review of common area restrooms available for public use (toilet stalls designed with accessible features, sinks at lower heights with adequate clearances, appropriate sink fixtures and accessories). ASTM E2018-15 - Uniform Abbreviated Screening Checklist for the 2010 Americans with Disabilities Act Item Yes No NA Comments A. History 1. Has an ADA survey previously been completed for this property? ✓ Unknown 2. Have any ADA improvements been made to the property since original construction? ✓ Unknown 3. Has building ownership/management reported any ADA complaints or litigation? ✓ B. Parking 1. Does the required number of standard ADA-designated spaces appear to be provided? ✓ 6.01/6.02: Convert five (5) existing standard spaces ADA-designated spaces (including a 2. Does the required number of van-accessible designated spaces appear to be provided? ✓
Page 37
401 East Fifth Street Privileged and Confidential Page 33 ASTM E2018-15 - Uniform Abbreviated Screening Checklist for the 2010 Americans with Disabilities Act 3. Are accessible spaces part of the shortest accessible route to an accessible building entrance? ✓ single van accessible space) 4. Is a sign with the International Symbol of Accessibility at the head of each space? ✓ 5. Does each accessible space have an adjacent access aisle? ✓ 6. Do parking spaces and access aisles appear to be relatively level and without obstruction? ✓ C. Exterior Accessible Route 1. Is an accessible route present from public transportation stops and municipal sidewalks on the property? ✓ 2. Are curb cut ramps present at transitions through curbs on an accessible route? ✓ 3. Do the curb cut ramps appear to have the proper slope for all components? ✓ 4. Do ramps on an accessible route appear to have a compliant slope? ✓ 5. Do ramps on an accessible route appear to have a compliant length and width? ✓ 6. Do ramps on an accessible route appear to have compliant end and intermediate landings? ✓ 7. Do ramps on an accessible route appear to have compliant handrails? ✓ D. Building Entrances 1. Do a sufficient number of accessible entrances appear to be provided? ✓ 6.03: Modify existing metal service door as required 6.04: Provide signage indicating the location of accessible entrance 2. If the main entrance is not accessible, is an alternate accessible entrance provided? ✓ 3. Is signage provided indicating the location of alternate accessible entrances? ✓ 4. Do doors at accessible entrances appear to have compliant clear floor area on each side? ✓ 5. Do doors at accessible entrances appear to have compliant hardware? ✓ 6. Do doors at accessible entrances appear to have a compliant clear opening width? ✓ 7. Do pairs of accessible entrance doors in series appear to have the minimum clear space between them? ✓
Page 38
401 East Fifth Street Privileged and Confidential Page 34 ASTM E2018-15 - Uniform Abbreviated Screening Checklist for the 2010 Americans with Disabilities Act 8. Do thresholds at accessible entrances appear to have a compliant height? ✓ E. Interior Accessible Routes and Amenities 1. Does an accessible route appear to connect with all public areas inside the building? ✓ 2. Do accessible routes appear free of obstructions and/or protruding objects? ✓ 3. Do ramps on accessible routes appear to have a compliant slope? ✓ 4. Do ramps on accessible routes appear to have a compliant length and width? ✓ 5. Do ramps on accessible routes appear to have compliant end and intermediate landings? ✓ 6. Do ramps on accessible routes appear to have compliant handrails? ✓ 7. Are adjoining public areas and areas of egress identified with accessible signage? ✓ 8. Do public transaction areas have an accessible, lowered counter section? ✓ 9. Do public telephones appear mounted with an accessible height and location? ✓ 10 Are publicly-accessible swimming pools equipped with an entrance lift? ✓ F. Interior Doors 1. Do doors at interior accessible routes appear to have compliant clear floor area on each side? ✓ 2. Do doors at interior accessible routes appear to have compliant hardware? ✓ 6.05: Replace existing hardware with ADA compliant hardware as required – confirm exact quantity in field 3. Do doors at interior accessible routes appear to have compliant opening force? ✓ 4. Do doors at interior accessible routes appear to have a compliant clear opening width? ✓ G. Elevators 1. Are hallway call buttons configured with the “UP” button above the “DOWN” button? ✓
Page 39
401 East Fifth Street Privileged and Confidential Page 35 ASTM E2018-15 - Uniform Abbreviated Screening Checklist for the 2010 Americans with Disabilities Act 2. Is accessible floor identification signage present on the hoistway sidewalls? ✓ 3. Do the elevators have audible and visual arrival indicators at the entrances? ✓ 4. Do the elevator hoistway and car interior appear to have a minimum compliant clear floor area? ✓ 5. Do the elevator car doors have automatic re-opening devices to prevent closure on obstructions? ✓ 6. Do elevator car control buttons appear to be mounted at a compliant height? ✓ 7. Are tactile and Braille characters mounted to the left of each elevator car control button? ✓ 8. Are audible and visual floor position indicators provided in the elevator car? ✓ 9. Is the emergency call system at the base of the control panel and not require voice communication? ✓ H. Toilet Rooms 1. Do publicly-accessible toilet rooms appear to have a minimum compliant floor area? ✓ 2. Does the lavatory appear to be mounted at a compliant height and with compliant knee area? ✓ 3. Does the lavatory faucet have compliant handles? ✓ 4. Is the plumbing piping under lavatories configured to protect against contact? ✓ 6.06: Provide protection at piping under sinks as required 5. Are grab bars provided at compliant locations around the toilet? ✓ 6. Do toilet stall doors appear to provide the minimum compliant clear width? ✓ 7. Do toilet stalls appear to provide the minimum compliant clear floor area? ✓ 8. Do urinals appear to be mounted at a compliant height and with compliant approach width? ✓ 9. Do accessories and mirrors appear to be mounted at a compliant height? ✓
Page 40
401 East Fifth Street Privileged and Confidential Page 36 7.0 REPORT QUALIFICATIONS & LIMITATIONS This report was prepared in accordance with the scope of work, and terms and conditions associated with VERTEX’s proposal number P.6135.22, dated August 25, 2022. This report was intended to provide a general overview of the building systems at the facility and the general conditions of such. The evaluation was performed using that degree of skill and care normally exercised by reputable consultants performing similar work. The activities of this evaluation included observations of visible and readily accessible areas. Consequently, a comprehensive study to identify, document, and assess specific property/building defects was not conducted. In some cases, additional study may be warranted to more fully assess concerns noted. In addition, system checks or testing, or the operation of machinery and equipment is beyond the scope of this evaluation. This report should be construed as neither a complete inventory of the building materials, contents or components nor a survey to determine status of material or equipment recalls. The opinions and recommendations presented in this report are based on VERTEX's observations, evaluation of the information provided, and interviews with personnel possessing knowledge of the facility. No calculations were made to determine the adequacy of the facility’s original or existing design. The possibility exists that defects and deficiencies are present at the subject facility, which were not readily visible or accessible. The development of future problems not identified in this report, on any observed system, at the subject property should be anticipated. The opinions and recommendations in this report should not be construed in any way to constitute a warranty or guarantee regarding the current or future performance of any system identified. A Property Condition Assessment (“PCA”) is the process by which VERTEX observes, researches and documents in a written report the current physical condition of commercial property and, in addition, provides required estimated expenditures to remedy physical deficiencies. A physical deficiency is defined to be a patent, conspicuous defect, or significant deferred maintenance of the subject property’s material systems, components or equipment. It could also include material systems, components or equipment that are approaching, have realized, or have exceeded their typical expected useful life (“EUL”) or whose remaining useful life (“RUL”) should not be relied upon as a result of actual age, abuse, excessive wear and tear, exposure to the elements, lack of proper maintenance, or other factors. This definition specifically excludes routine maintenance, miscellaneous repairs, operating maintenance, etc. It should be noted that items considered as routine or operating maintenance may be defined by the current practices of the management or property owner operating the site.
Page 41
401 East Fifth Street Privileged and Confidential Page 37 The scope of the PCA has been specifically agreed upon by VERTEX and the Client in the proposal for these services. Unless specifically requested by the client and included in the written scope of work or services, the PCA does not include an environmental assessment of the property; building system or component operation or testing; building or fire/life-safety code reviews; or a survey to determine the compliance of building plans with any as-built conditions unless items of non-compliance are reasonably observable during the walk through survey. The amount of time and effort provided within this assessment is further dictated by additional factors including cost and time constraints and risk tolerance established by the client. VERTEX’s proposal for the evaluation clearly states the scope of work and level of effort agreed upon. The visual observation portion of the PCA consists of a walk-through survey of the subject property undertaken to observe readily accessible property components, systems, and elements for the purposes of providing a brief description of same, providing an opinion on their general apparent physical condition, and identifying material physical deficiencies as of the time of VERTEX’s site visit in accordance with the criteria agreed by the client and VERTEX and set forth in the PCA’s scope of services. This portion of the PCA is a non-intrusive, visual survey; it is not to be construed as a punch list or detailed survey of the property’s major physical deficiencies. It is also not considered to be an inventory of building system or material components. The observation portion of the PCA is based on the concept of visually observing a representative sampling of differing types of building conditions and locations to provide the client with a reasonably expected magnitude of commonly encountered conditions. VERTEX typically does not survey all systems and equipment nor all tenant and common areas, back-of-house areas, etc., only a representative sampling of such equipment, systems and areas designated in VERTEX’s proposal, and either (a) reasonably believed by VERTEX to provide a reasonable representation of the present and probable future condition of the subject property’s units, areas, systems, buildings, etc. or (b) as otherwise specified by the client. VERTEX may then extrapolate these representative findings to all such typical areas and systems of the subject property to provide the client with a reasonably estimated magnitude of commonly anticipated conditions and to use as a basis for estimating the cost of required expenditures to remedy physical deficiencies at the subject property. Based on observations and information received during the PCA, VERTEX has prepared general- scope type or budgetary-level estimates of the costs to remedy the material Physical Deficiencies observed. Estimates are provided for observed components or systems exhibiting significant deferred maintenance, and existing physical deficiencies requiring major repairs or replacement. Repairs or improvements that could be classified as (a) cosmetic or decorative, (b) part or parcel
Page 42
401 East Fifth Street Privileged and Confidential Page 38 of a building renovation program, (c) enhancements to reposition the asset in the marketplace, (d) under warranty or required for warranty transfer purposes, (e) the financial responsibility of the tenant of a leased space at the property, and/or (f) routine or normal preventive maintenance are not included, unless stated otherwise. Unless specifically requested by client and included in the agreed upon, written scope of services the following items were excluded from the scope of services for this PCA: • Removal of materials, furniture or finishes; conducting any exploratory probing or testing; dismantling or operation of any equipment; or disturbing any personal items or property which obstructs access or visibility. • Preparation of engineering calculations (civil, structural, mechanical, electrical, etc.) to determine any system’s, component’s or equipment’s adequacy or compliance with any specific or commonly accepted design requirements and building codes, or the preparation of designs or specifications to remedy any physical deficiency. • Taking any measurements or quantities to establish or confirm such information or representations of owner such as size and dimensions of property, any legal encumbrances such as easements, floor areas, dwelling unit count and mix, building dimensions, building property line setbacks or elevations, number and size of parking spaces, etc. • Reporting on the presence or absence of pests such as wood damaging organisms; rodents or insects unless such evidence is readily apparent during the course of the consultant’s survey or information is provided to the consultant as to their presence by the owner, user, property manager, etc. • Reporting on the condition of subterranean conditions such as underground utilities, separate sewage disposal systems, wastewater treatment plants, wells or systems that are either considered process related or peculiar to a specific tenancy or use, or items or systems that are not permanently installed. • Entering or accessing any area of the premises deemed to pose a dangerous or adverse condition to the consultant or to perform any procedure which may damage or impair the physical integrity of the property, any system or equipment. • Providing an opinion on the condition of any system or component which is seasonally shut down. • Evaluation of any acoustical or insulating characteristics of any system or component.
Page 43
401 East Fifth Street Privileged and Confidential Page 39 • Opining on matters regarding security of the property and protection of its occupants or users from unauthorized access except to the extent of comments on the integrity of readily observable exterior security fencing. • Operation or witnessing the operation of lighting or other systems typically controlled by time clocks or that are normally operated by the facility operating staff. • Provision of a warranty or guarantee of any systems or component’s physical condition or use. A PCA is not to be construed as a substitute for any system’s or equipment’s warranty transfer inspection. • Review of compliance with any federal, state, city, trade/design, or insurance industry building codes, local laws, health codes or local zoning ordinances; however, violations to codes laws and ordinances that are observed and any retroactive or pending requirements contained in such codes, laws, and ordinances that are known to the consultant, or to the extent identified during interviews with code authorities, will be identified in the report. • Compliance of any material, equipment or system with any certification or actuation rate program, vendor’s or manufacturer’s warranty provisions, or provisions established by any standards that are related to insurance industry acceptance/approval such as Factory Mutual (FM), State Board of Fire Underwriters, etc. • Surveying for the presence of any environmental issues such as wetlands, hazardous wastes, hazardous materials, mold, asbestos, lead based paint, or indoor air quality.
Page 44
IMMEDIATE REPAIRS / DEFERRED MAINTENANCE / SHORT TERM REPAIRS TABLE
Page 45
Deferred Maintenance, Immediate Repairs, Short Term Repairs VERTEX Site Name: # Buildings: 1 City, ST: Est. Building SF: 220,588 Age, Yrs.: Project No.: Description Notes Unit Type QTY Unit Price Budget Site 1.01 Mill and repave 1" of deteriorated asphalt surfaces in north lot and along south side of building sf 42,000 $ 1.34 56,280 $ Map cracking and surface weathering pervasive through asphalt, surfaces to be milled and repaved 1.02 Mill and repave 2" of deteriorated asphalt surfaces in east truck court sf 86,500 $ 2.35 203,275 $ Map cracking and surface weathering pervasive through truck court asphalt, surfaces to be milled and repaved 1.03 Sectional replacement of concrete pad near service door and overhead door near southeast corner of building sf 70 $ 16.00 1,120 $ Significant cracking and deterioration at this location 1.04 Sectional replacement of deteriorated concrete sidewalk at main office entrance ls 1 $ 750.00 750 $ Tripping/safety hazard at main office entrance 1.05 Replace sections of chain link fencing at scattered locations and replace gate at parking lot entrance ls 1 $ 1,500.00 1,500 $ Bent or damged support poles at scattered locations, inoperable gate 1.06 Repair/replace masonry retaining wall at north drive-in bay sf 220 $ 25.42 5,592 $ Significant deterioration and settlement cracking Site SUBTOTAL 268,517 $ Building Structure & Shell 2.01 Cut out and replace bent or twisted steel column, splice in new steel section, provide impact protection ea 5 $ 5,500.00 27,500 $ Impact damage observed at scattered locations throughout warehouse. It is recommended that a formal scope of work and repair estimate be obtained by a qualified vendor. ng Structure & SUBTOTAL 27,500 $ Building Exterior & Openings 3.01 Remove and replace exterior door, hollow core metal, insulated, standard size ea 15 $ 1,497.00 22,455 $ g Exterior & Op SUBTOTAL 22,455 $ Office & Warehouse Interior 4.01 Replace interior stair assembly, metal ri 20 $ 521.55 10,431 $ & Warehouse I SUBTOTAL 10,431 $ MEP and FLS Systems 5.01 Replace 7 of 9 rooftop package units Ton AC 28 $ 1,400.00 39,200 $ Based on observed condition, estimated age and RUL, replacement of most units is expected 5.02 Engage fire protection vendor to perform 5-year internal inspection ls 1 $ 2,000.00 2,000 $ 5-year inspection documentation not provided 5.03 Provide cabinet of spare sprinkler heads and wrench near sprinkler risers ls 1 $ 750.00 750 $ No spare sprinkler head cabinet provided 5.04 Engage fire protection vendor to inspect and inventory missing escutcheon plates and install new ls 1 $ 1,000.00 1,000 $ Missing escutcheon plates at scattered locations P and FLS Syste SUBTOTAL 42,950 $ ADA Compliance 6.01 Install ADA parking with signs and access aisle, standard space ea 5 $ 650.00 3,250 $ No standard ADA parking spaces provided 6.02 Install handicapped parking stall with signs and access aisle, Van Accessible Space ea 1 $ 700.00 700 $ No van accessible ADA parking spaces provided 6.03 Modify existing metal service door for ADA compliance as an alternate option ea 1 $ 750.00 750 $ Main entrance not accessible, and significant modifications would be required 6.04 Add building signage directing visitors to accessible entrance ls 1 $ 750.00 750 $ 6.05 Replace existing hardware with ADA compliant hardware ea 6 $ 275.00 1,650 $ Confirm exact quantity in field 6.06 Provide protection at piping under lavatories ea 6 $ 50.00 300 $ Confirm exact quantity in field DA Complianc SUBTOTAL 7,400 $ DEFFERED MAINTENANCE TOTAL 379,253 $ Administrative Costs GENERAL CONDITIONS 9.00% % $ 34,132.81 34,133 $ BUILDING PERMIT ALLOWANCE 0.85% % $ 3,513.78 3,514 $ SUBGUARD 1.25% % $ 5,211.25 5,211 $ INSURANCE 0.65% % $ 2,743.72 2,744 $ CONTINGENCY 5.00% % $ 21,242.75 21,243 $ CONTRACTOR FEE 3.00% % $ 13,382.93 13,383 $ strative Costs ADMINISTRATIVE TOTAL 80,227 $ PROJECT TOTAL 459,481 $ Budget 401 East Fifth Street Pinconning, MI 77 81549
Page 46
CAPITAL NEEDS TABLE
Page 47
TABLE 1 CAPITAL NEEDS ESTIMATE VERTEX 1 Total Per SF Per SF/YR Site Name: # Buildings: 1 Immediate Repairs $: $459,481 $2.08 City, ST: Est. Building SF: 220,588 Short Term $ (no inflation): $1,106,337 $5.02 $2.51 Age, Yrs.: Eval. Term, Yrs.: 5 Short Term $ (inflated): $1,132,549 $5.13 $2.57 Project No.: CPI: 2.50% Capital Needs $ (no inflation) $1,411,154 $6.40 $1.28 # Units: NA Capital Needs $ (inflated) $1,461,539 $6.63 $1.33 1 2 3 4 5 ITEM Reserves CAPITAL NEEDS RESERVE ITEM No. PHOTO No. DESCRIPTION QTY UNIT UNIT COST YEARS 1-5 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL SITE DEVELOPMENT 1 4,5,6,7 Budget for future cut & patch deteriorated asphalt pavement areas 8,915 SF $4.53 $40,385 $40,385 $40,385 2 8 Budget for future cut & patch deteriorated asphalt pavement areas, heavy duty areas (truck traffic locations) 4,360 SF $6.59 $28,732 $28,732 $28,732 3 4,5,6,7,8 Budget for future renewal of asphalt pavement surfaces, including crack sealing (moderate), seal coat and re-stripe 257,000 SF $0.18 $46,260 $46,260 $46,260 $0 $0 $69,117 $0 $46,260 BUILDING STRUCTURE 4 19,20 Route, clean and fill existing control joints in concrete flooring with semi-rigid sealants (polyurea) - existing sealants worn or missing 12,000 LF $3.99 $47,880 $47,880 $47,880 $0 $0 $0 $0 $47,880 BUILDING EXTERIOR 5 37,38,39, 44 CMU block - repair step cracking with epoxy injection and surface finishing 5,000 SF $3.39 $16,950 $16,950 $16,950 6 34,37,38, 39,44 Scraping, surface preparation and re-painting of exterior walls, 2-coat, spray applied - CMU block 22,850 SF $0.78 $17,823 $17,823 $17,823 7 32,33,34, 46 Minor repair, scraping, surface preparation and re- painting of exterior walls, 2-coat, spray applied - Metal Wall Panels 25,000 SF $0.70 $17,500 $17,500 $17,500 8 37,39,40, 41,44 Cut out and replace sealants between expansion and control joints - CMU and wall penetrations (windows and doors) 1,200 LF $4.67 $5,604 $5,604 $5,604 $57,877 $0 $0 $0 $0 401 East Fifth Street Pinconning, MI 77 81549 Page 1 of 3
Page 48
TABLE 1 CAPITAL NEEDS ESTIMATE VERTEX 1 Total Per SF Per SF/YR Site Name: # Buildings: 1 Immediate Repairs $: $459,481 $2.08 City, ST: Est. Building SF: 220,588 Short Term $ (no inflation): $1,106,337 $5.02 $2.51 Age, Yrs.: Eval. Term, Yrs.: 5 Short Term $ (inflated): $1,132,549 $5.13 $2.57 Project No.: CPI: 2.50% Capital Needs $ (no inflation) $1,411,154 $6.40 $1.28 # Units: NA Capital Needs $ (inflated) $1,461,539 $6.63 $1.33 1 2 3 4 5 ITEM Reserves CAPITAL NEEDS RESERVE ITEM No. PHOTO No. DESCRIPTION QTY UNIT UNIT COST YEARS 1-5 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL 401 East Fifth Street Pinconning, MI 77 81549 ROOF 9 48,49,53, 57 Remove existing roof and replace with Built-Up-Roof (BUR), multi-ply, gravel surfaced 133,000 SF $6.78 $901,740 $901,740 $901,740 10 50,52,52 Remove existing roof and replace with single ply Thermoplastic Polyolefin (TPO) - 60 mil 28,000 SF $5.24 $146,720 $146,720 $146,720 11 54,55,56 Apply elastomeric coating to roof surface for extension of roof service life 64,000 SF $1.04 $66,560 $66,560 $66,560 $0 BUILDING INTERIOR No significant costs identified, BUILDING INTERIOR costs are tenant responsibility $0 $0 $0 $0 $0 $0 MECHANICAL SYSTEMS 12 72 Replace suspended infrared tube heater, natural gas 15 EA $5,000.00 $75,000 $25,000 $25,000 $25,000 $75,000 $0 $0 $25,000 $25,000 $25,000 ELECTRICAL SYSTEMS No significant ELECTRICAL SYSTEM costs identified $0 $0 $0 $0 $0 $0 PLUMBING SYSTEMS No significant PLUMBING SYSTEM costs identified $0 $0 $0 $0 $0 $0 CONVEYANCE SYSTEMS Not Applicable $0 $0 $0 $0 $0 $0 LIFE SAFETY/FIRE PROTECTION SYSTEMS No significant LIFE SAFETY/FIRE PROTECTION SYSTEM costs identified $0 $0 $0 $0 $0 $0 Page 2 of 3
Page 49
TABLE 1 CAPITAL NEEDS ESTIMATE VERTEX 1 Total Per SF Per SF/YR Site Name: # Buildings: 1 Immediate Repairs $: $459,481 $2.08 City, ST: Est. Building SF: 220,588 Short Term $ (no inflation): $1,106,337 $5.02 $2.51 Age, Yrs.: Eval. Term, Yrs.: 5 Short Term $ (inflated): $1,132,549 $5.13 $2.57 Project No.: CPI: 2.50% Capital Needs $ (no inflation) $1,411,154 $6.40 $1.28 # Units: NA Capital Needs $ (inflated) $1,461,539 $6.63 $1.33 1 2 3 4 5 ITEM Reserves CAPITAL NEEDS RESERVE ITEM No. PHOTO No. DESCRIPTION QTY UNIT UNIT COST YEARS 1-5 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL 401 East Fifth Street Pinconning, MI 77 81549 ANCILLARY STRUCTURES Not Applicable $0 $0 $0 $0 $0 $0 TOTAL - Immediate Repairs TOTAL - Capital Needs $1,411,154 TOTAL CAPITAL NEEDS, BY YEAR, UNINFLATED $57,877 $1,048,460 $94,117 $91,560 $119,140 $1,411,154 Inflation Factor 1.000 1.025 1.051 1.077 1.104 TOTAL CAPITAL NEEDS, BY YEAR, WITH INFLATION $57,877 $1,074,672 $98,882 $98,600 $131,508 $1,461,539 Notes/Abbreviations: *Item Number corresponds to item described in supporting "cost item #" in text report. LS = Lump Sum; LF = Linear Foot; SF = Square Feet; SY = Square Yard; EA = Each; TN = Ton; kW = Kilowatt; FL = Floor; RI = Riser; RUL = Remaining Useful Life Immediate Needs = material existing or potential unsafe conditions resultant from a damaged or deteriorated condition, material building or fire code violations on file with municipal agencies, or conditions that if left uncorrected, have the potential to result in or contribute to critical element or system failure within one year or will result most probably in a significant escalation of its remedial cost. Also included as immediate needs are items, materials or systems that have exceeded their useful life. Immediate Repair time frame for repair is between 0 and 1 year. These items are generally included regardless of cost. Short Term Repairs = Items that may not warrant immediate attention, but require repairs or replacements that should be undertaken on a priority basis in addition to routine preventive maintenance. Such opinions of probable costs may include costs for testing, exploratory probing, and further analysis should this be deemed warranted by VERTEX. Short Term repairs are the aggregate sum of Capital Needs repairs within years 1 and 2. See report text for cost thresholds defining Short Term Repairs/Capital Needs versus items of Routine Maintenance. Capital Needs = Items which are expected to require significant repair, replacement or renovation during the specified evaluation term due to the observed condition and estimated RUL. See report text for cost thresholds defining Short Term Repairs/Capital Needs versus items of Routine Maintenance. Page 3 of 3
Page 50
APPENDIX A PHOTOGRAPHIC DOCUMENTATION
Page 51
Project Name—City, ST VERTEX ® Photo #1 Photo #2 Photo #3 Photo #4 Photo #5 Photo #6
Page 52
Project Name—City, ST VERTEX ® Photo #7 Photo #8 Photo #9 Photo #10 Photo #11 Photo #12
Page 53
Project Name—City, ST VERTEX ® Photo #13 Photo #14 Photo #15 Photo #16 Photo #17 Photo #18
Page 54
Project Name—City, ST VERTEX ® Photo #19 Photo #20 Photo #21 Photo #22 Photo #23 Photo #24
Page 55
Project Name—City, ST VERTEX ® Photo #25 Photo #26 Photo #27 Photo #28 Photo #29 Photo #30
Page 56
Project Name—City, ST VERTEX ® Photo #31 Photo #32 Photo #33 Photo #34 Photo #35 Photo #36
Page 57
Project Name—City, ST VERTEX ® Photo #37 Photo #38 Photo #39 Photo #40 Photo #41 Photo #42
Page 58
Project Name—City, ST VERTEX ® Photo #43 Photo #44 Photo #45 Photo #46 Photo #47 Photo #48
Page 59
Project Name—City, ST VERTEX ® Photo #49 Photo #50 Photo #51 Photo #52 Photo #53 Photo #54
Page 60
Project Name—City, ST VERTEX ® Photo #55 Photo #56 Photo #57 Photo #58 Photo #59 Photo #60
Page 61
Project Name—City, ST VERTEX ® Photo #61 Photo #62 Photo #63 Photo #64 Photo #65 Photo #66
Page 62
Project Name—City, ST VERTEX ® Photo #67 Photo #68 Photo #69 Photo #70 Photo #71 Photo #72
Page 63
Project Name—City, ST VERTEX ® Photo #73 Photo #74 Photo #75 Photo #76 Photo #77 Photo #78
Page 64
Project Name—City, ST VERTEX ® Photo #79 Photo #80 Photo #81 Photo #82 Photo #83 Photo #84
Page 65
Project Name—City, ST VERTEX ® Photo #85 Photo #86 Photo #87 Photo #88
Page 66
APPENDIX B PRE-SURVEY QUESTIONNAIRE & REQUEST FOR DOCUMENTATION
Page 67
The Vertex Companies, Inc. T: 610.558.8902 700 Turner Industrial Way F: 610.558.8904 Aston, Pennsylvania 19014 . PRE-SURVEY QUESTIONNAIRE & REQUEST FOR DOCUMENTATION TO: Leonard Sweet PROJECT NAME: Pinconning, MI VERTEX #: 81549 VERTEX has been contracted to conduct a Property Condition Assessment (PCA) at the site referenced above. It would be greatly appreciated if you could direct the questionnaire to the person(s) most knowledgeable about the property for completion. The completed questionnaire may be returned to VERTEX via fax, email or mail, or may be delivered at the time of our on-site visit. The questionnaire will be presented as an exhibit in our PCA report. In addition to the questionnaire, we are requesting that information relating to the building be available for our review prior to, or during the on-site visit. Where practical, we also request that copies of this information be provided. Requested information includes the following. ❑ Building Plans (Structural, Architectural, Electrical, Mechanical, Plumbing, Site Surveys, Site Plans, etc.) – preferably As-Built drawings if available ❑ Municipal Department Documents (Certificates of Occupancy, Building Code Violations, Zoning Variances or Restrictions, etc.) Copies of any outstanding violations with respect to building, zoning or fire codes or safety. ❑ Promotional/Leasing Information (Offering Memorandum, Recent Appraisals, Sales/Leasing Literature, Rent Roll, Site Diagrams, Reduced Floor Plans, etc.) ❑ Warranties for materials and systems (Roofs, Mechanical Systems, Equipment, etc.) ❑ Certificates of inspection or compliance (Elevators, Escalators, Boilers, Fire Sprinklers, Fire Alarms, etc.) and/or any safety inspection records ❑ Service/Maintenance contracts including vendor names and phone #s (Elevator, Roofing, Mechanical, etc) ❑ Building rent roll, records indicating occupancy percentages and turnover percentages ❑ Previous Property Studies (Property Condition Surveys, Inspections, Phase I ESAs, Appraisals, Roof Condition Reports, ADA Compliance Studies, etc.) ❑ Historical information with regards to Capital Expenditures for a minimum of the past five years (Dates and summaries of work performed with associated costs) ❑ Pending proposals for repair, renovation or general work on the building or associated systems Any other information that is relevant to the maintenance, repair history or condition of the property is also welcome.
Page 68
PRE-SURVEY QUESTIONNAIRE VERTEX PCA - Pre-Survey Questionnaire Page 2 of 5 GENERAL PROPERTY INFORMATION Property Name: Property Address: City, State, Zip: Current Owner: Year Constructed: Year Purchased: Gross SF: Zoning District: Site Acreage: # of Parking Spaces: Utility Providers: Gas: Electric: Water: Sewer: Storm: RESPONDENT INFORMATION Name: Date: Title: Company:
Page 69
PRE-SURVEY QUESTIONNAIRE VERTEX PCA - Pre-Survey Questionnaire Page 3 of 5 Please respond to the following questions to the best of your knowledge. 1. Please describe the maintenance, repair or replacement responsibilities of the landlord and tenant. (For example, “tenant maintains interior space, landlord is responsible for all structural elements including the roof covering, and replacement of HVAC equipment, if needed”) 2. To the best of your knowledge, does the building have any of the following problems? and, if so, please describe the location and condition. ISSUE YES NO N/A Roof, Wall or Window leakage? Location, description: Basement water/moisture infiltration? Location, description: Structural Problems? Location, description: Heating capacity or distribution deficiencies? Location, description: Air conditioning capacity or distribution deficiencies? Location, description: Inadequate domestic water pressure/leaks/drainage problems? Location, description: Inadequate electrical capacity or distribution or frequent power outages? Location, description: Elevator service problems? Location, description:
Page 70
PRE-SURVEY QUESTIONNAIRE VERTEX PCA - Pre-Survey Questionnaire Page 4 of 5 3. Please provide a general description of significant (greater than $3,000) capital improvements with associated costs, which have been made at the property within the past 5 years. Please provide documentation if possible. Description of Improvement Year Completed Approx $ 4. If you are in receipt of, or solicited any proposals to perform any repairs, renovations or replacement work to the building(s) or any of its components that will exceed an aggregate cost of $3,000, please describe those projects. Please attach copies of bids or proposals, if possible. Proposed Project Year Anticipated Approx $
Page 71
PRE-SURVEY QUESTIONNAIRE VERTEX PCA - Pre-Survey Questionnaire Page 5 of 5 5. Is there any ongoing or pending litigation related to the property’s physical condition? If yes, describe: 6. Has any structure or portion of the property considered “down” or been condemned, or deemed un- inhabitable? If yes, describe: 7. To the best of your knowledge, please check any of the following materials or issues that are present within the building(s). Recalled Sprinkler Heads Reactive Chinese Drywall Aluminum branch wiring Electrical fuses (not circuit breakers) Fire Resistant Treated (FRT) plywood Polybutylene piping Galvanized steel piping Phenolic foam roof insulation Fire damage Please describe location and extent of materials checked in Question 7 above. 8. Are there any other building attributes, deficiencies, issues or improvements not already discussed herein, that may be of interest to a potential lender or purchaser? If so, please describe below. No Yes No Yes
Page 72
APPENDIX C RELEVANT SUPPORTING DOCUMENTATION
Page 73
ENERGY SAVING POTENTIAL Item Yes No N/A Unk Comments Building Shell Is the roof a light color, or covered with a light colored gravel or reflective coating? X X Approximately 40% white TPO and standing-seam metal panels Has additional roofing or attic insulation been added during any past re-roofing projects or other renovations? X Has additional wall insulation been added during any past exterior or other renovations? X Have building wall and window sealants been replaced within the past 10 years? X Does the building have primarily double or triple pane windows? X Do the building windows have exterior light shelves, blinds, solar films or window tinting to limit direct sunlight? X Window tinting and blinds at select locations Does the building have primarily CFL, T5, T8 or LED lighting? X T5/T8 amps are being replaced throughout with LEDs as existing burn out Has the building replaced metal halide, sodium vapor or mercury vapor lighting with higher efficiency alternatives? X Does the building utilize occupancy sensors or other timing or lighting controls? X Is de-lamping in practice at any part of the facility? X Lamps are being replaced throughout with LEDs as existing burn out Are there any high efficiency air conditioning units (rooftop or condensing units with greater than 13 SEER)? X 1 rooftop unit has a greater than 13 SEER Is plate-frame heat exchanger equipment utilized in conjunction with cooling tower systems? X Have heating units been replaced in the past 10 years? X X 2 rooftop package units and 1 split system indoor unit have been replaced Does the boiler have a water temperature reset? X Has the boiler or boiler burner been replaced in the past 10 years? X Is exhaust heat from heating and water heating equipment simply discharged to the exterior (not captured)? X Do fan and/or pump motors generally have nominal efficiencies greater than 92%? X Has the building installed Variable Frequency Drives (VFDs) on selected equipment? X Does the cooling tower include a VFD or multi-speed fan motor? X
Page 74
ENERGY SAVING POTENTIAL Item Yes No N/A Unk Comments System Controls Does the building employ Variable Air Volume (VAV) systems for air distribution? X Do the building systems include Direct Digital Controls (DDC)? X Does the building utilize a Building Automation System (BAS) or Energy Management System (EMS)? X Does the building utilize programmable thermostats for control during reduced occupancy hours? X X Building utilizes a combination of programmable/non-programmable thermostats Has hot water generating equipment been replaced in the past 10 years? X Are there any gas condensing water heaters in use at the facility? X
Page 75
Key Site Map Pinconning, MI Project #81549 Production Warehouse Truck Court 2-Story Office Space Main Parking Lot 2-Story Office Space . ~ Key Site Map Pinconning, MI VERTEX Project #81549
Page 76
National Flood Hazard Layer FIRMette BIST4AW 43°51 TIRE) «¢ v \T17N RAE S26 3 _ | 2 Feet fm -- — rs of Pinconning =r 1:6,000 Ir ‘Townshiplof-Pinconning & Map: Or Legend OTHER AREAS OF | FLOOD HAZARD | ‘SEE FS REPORT FOR DETAILED LEGEND AND INDEX MAP FOR FIRM PANEL LAYOUT Without Base Flood Elevation (BFE) Zone, V. AS With BFE or Depth za AF A0, AK VE. A7 Regulatory Floodway | 0.2% Annual Chance Flood Hazard, Areas of 1% annual chance flood with average depth less than one foot or with drainage areas of less than one square mile zore x [ne 4 Future Conditions 1% Annual ME Chance Flood Hazard zo © | 4 Avea with Reduced Flood Risk due to “Levee. See Notes. zo0e x 7 4) Avea with Flood Risk due to Levee zene 0 | Noscaeen Area of Minimal Flood Hazard zone x |= eftective LOMRs OTHER AREAS | Area of Undetermined Flood Hazard zene 0 GENERAL | = === Channel, Culvert, or Storm Sewer STRUCTURES [1111111 Levee, Dike, or Floodwall Cross Sections with 1% Annual Chance —1LE Water Surface Elevation | : “wen sty Base Flood Elevation Line (BFE) Limit of Study Jurisdiction Boundary — Coastal Transect Baseline OTHER |- —— Profile Baseline FEATURES |_____ Hydrographic Feature | Digital Data Available N No Digital Data Available The pin displayed on the map is an approximate point selected by the user and does not represent an authoritative property location. MAP PANELS | Unmapped This map complies with FEMA's standards for the use of digital flood maps If itis not void as described below. ‘The basemap shown complies with FEMA's basemap accuracy standards ‘The flood hazard information is derived directly from the authoritative NFHL web services provided by FEMA. This map was exported on and does not reflect changes or amendments subsequent to this date and. time. The NFHL and effective information may change or become superseded by new data over time. This map image is void f the one or more of the following map ‘elements do not appear: basemap imagery, flood zone labels, legend, scale bar, map creation date, community identifiers, FIRM panel number, and FIRM effective date. Map images for unmapped and unmodernized areas cannot be used for regulatory purposes.
Page 77
Building Information Request THE VERTEX COMPANIES, INC. 133 N JEFFERSON ST, 3rd Floor CHICAGO, IL 60661 708.490.9014 | VERTEXENG.COM City of Auburn Hills City Clerk’s Office August 05, 2022 Via Email: lpierce@auburnhills.org Re: 2750 High Meadow Circle Henniges Automotive Headquarters Dear Ms. Pierce: The VERTEX Companies, Inc. is an engineering firm currently conducting a Property Condition Assessment of the above referenced property. As part of the due-diligence process we request your assistance by providing us with some information from your files. Through the Freedom of Information Act, we request your assistance by providing us with the following information concerning the site and buildings at the referenced property files: 1) Are there any open building code violations, or unresolved building safety issues on file for the property? ☐ YES ☐ NO Brief description of violation(s) or open issue(s) 2) Does the building have a current Certificate of Occupancy? ☐ YES ☐ NO If yes, can a copy be provided? _____________________________________ 3) Are there specific items (such as elevators, backflow preventers) that the municipality may require updating to current codes, even if no renovations or use changes are planned? In other words, are there any “non-grandfathered” items required at the property due at a certain date? ☐ YES ☐ NO If yes, please describe _____________ ________________________________________ 4) Name of Respondent: _______________________________ Date: _______________________ Thank you for your assistance in this matter. If you need additional information to complete our request, please contact me at (708) 490.9014. Responses may be emailed to my attention at gbednarz@vertexeng.com. Respectfully submitted, Greg Bednarz Project Manager
Page 78
Fire Information Request THE VERTEX COMPANIES, INC. 133 N. JEFFERSON ST, 3rd Floor CHICAGO, IL 60661 708.490.9014 | VERTEXENG.COM City of Auburn Hills City Clerk’s Office August 05, 2022 Via Email: lpierce@auburnhills.org Re: 2750 High Meadow Circle Henniges Automotive Headquarters Dear Ms. Pierce: The VERTEX Companies, Inc. is an engineering firm currently conducting a Property Condition Assessment of the above referenced property. As part of the due-diligence process we request your assistance by providing us with some information from your files. Through the Freedom of Information Act, we request your assistance by providing us with the following information concerning the site and buildings at the referenced property files: 1) Are there any open fire code violations, or unresolved fire safety issues on file for this property? ☐ YES ☐ NO Brief description of violation(s) or open issue(s) 2) Does your Department inspect the property regularly? ☐ YES ☐ NO If yes, can a copy of the most recent inspection be provided? ☐ YES ☐ NO ☐ ATTACHED 3) Name of Respondent: _______________________________ Date: _______________________ Thank you for your assistance in this matter. If you need additional information to complete our request, please contact me at (708) 490.9014. Responses may be emailed to my attention at gbednarz@vertexeng.com. Respectfully submitted, Greg Bednarz Project Manager
Page 79
Zoning Information Request THE VERTEX COMPANIES, INC. 133 N JEFFERSON ST, 3RD FLOOR CHICAGO, IL 60661 708.490.9014 | VERTEXENG.COM City of Auburn Hills City Clerk’s Office August 05, 2022 Via Email: lpierce@auburnhills.org Re: 2750 High Meadow Circle Henniges Automotive Headquarters Dear Ms. Pierce: The VERTEX Companies, Inc. is an engineering firm currently conducting a Property Condition Assessment of the above referenced property. As part of the due-diligence process we request your assistance by providing us with some information from your files. Through the Freedom of Information Act, we request your assistance by providing us with the following information concerning the site and buildings at the referenced property files: 1) What is the current zoning at the property? Current Zoning Is a flex industrial warehouse considered to be a permitted use? 2) Are there any open zoning code violations, or unresolved zoning issues on file for the property? ☐ YES ☐ NO If yes, please give a brief description of violation(s) or open issue(s) 3) Name of Respondent: _______________________________ Date: _______________________ Thank you for your assistance in this matter. If you need additional information to complete our request, please contact me at (708) 490.9014. Responses may be emailed to my attention at gbednarz@vertexeng.com. Respectfully submitted, Greg Bednarz Project Manager
Page 80
» SS FF eN480 \ General Property Details: 180-P10-003-001-00 | \ NK Ny Click here for County Website Click here for Recorded Documents Property Address <| 401 ESTHST PINCONNING, MI, 48650 adsl Owner Address CORPORATE PROPERTY ASSOCIATES Unit: 180 - Unit Name: CITY OF PINCONNING 401 ESTHST PINCONNING, MI 48650-9321 td General Information for 2021 Tax Year EINER) APOGEE Parcel Number: 180-P10-003-001-00 Assessed Value: $1,883,300 Property Class: 301 Taxable Value: $1,648,145 Class Name: INDUSTRIAL-IMPROVED State Equalized Value: $1,883,300 School Dist Code: 09090 School DistName: ~~ PINCONNING SCHOOL DIST. PRE 2020: 0% PRE 2021: 0% Prev Year Info MBOR Assessed Final SEV Final Taxable 2020 $1,906,200 $1,906,200 $1625390 2019 $1,789,900 $1,789,900 $1,595,084 Land Information Acreage: 134 Zoning:
Page 81
Unit Number Unit Type Location Manufacturer Estimated Cooling Capacity (tons) ASHRAE Estimated Useful Life Estimated Year of Manufacture Estimated Remaining Useful Life Heat: gas, electric none Observed Condition G F P 1 Rooftop Package Unit Roof Trane 3 to 5 15 Unknown 0 Gas P 2 Rooftop Package Unit Roof Trane 3 to 5 15 Unknown 0 Gas P 3 Rooftop Package Unit Roof Fraser-Johnston 3 to 5 15 Unknown 0 Gas F 4 Rooftop Package Unit Roof Trane 2.5 15 2015 8 Gas G 5 Rooftop Package Unit Roof Trane 3 to 5 15 1999 0 Gas F 6 Rooftop Package Unit Roof York 6 15 Unknown 4 Gas F 7 Rooftop Package Unit Roof Rheem 5 15 2014 7 Gas G 8 Rooftop Package Unit Roof Trane 3 15 Unknown 0 Gas F 9 Rooftop Package Unit Roof Trane 5 15 Unknown 0 Gas F 10 Split System Condenser Roof Trane 3 15 Unknown 8 Electric G 11 Split System Condenser Roof Trane 3 15 2018 11 Electric G Heating & Cooling Equipment HVAC Equipment Listing
Page 82
APPENDIX D STAFF QUALIFICATIONS
Page 83
The Vertex Companies, LLC vertexeng.com Greg Bednarz (Last modified on 6/15/2022) Page 1 of 1 Highlights Project Management Experience Nationwide Nationwide Due Diligence Experience Expertise Property Condition Assessments Architecture Feasibility Studies Construction Management Construction Due Diligence Project Monitoring & Funds Control Tenant Improvement Owner's Representation LEED Assessment & Certification Site Remediation Coordination Construction Monitoring Greg Bednarz | Project Manager: Property Condition Assessor EMAIL gbednarz@vertexeng.com | PHONE 312.428.3658 BIOGRAPHY Mr. Bednarz is a Project Manager with over 20 years of experience in the design and construction industry. He has extensive knowledge related to due diligence and feasibility studies, building and accessibility code review, architectural design, construction documents, engineering consultant coordination, project budget and scheduling, and construction administration. Projects have ranged from tenant improvements to new construction. He has provided architectural/project management services for national developers and tenants on a wide range of projects nationwide, including office, retail, restaurant and mixed-use multi family. Mr. Bednarz currently serves as Project Manager/Property Condition Assessor at VERTEX. As Project Manager at VERTEX, Mr. Bednarz's responsibilities include building/site assessment, municipal research, review of existing documents related to the condition of the property, technical report writing, capital reserve planning, and coordination of external contractors. EDUCATION/TRAINING B.Arch, Bachelor of Architecture - Structures, University of Illinois at Chicago 1996 LICENSES/CERTIFICATIONS LEED Accredited Professional (LEED AP) OSHA 10, State of IL
Page 84
The Vertex Companies, LLC vertexeng.com Andrea Self (Last modified on 6/15/2022) Page 1 of 1 Highlights Nationwide Due Diligence Experience National Due Diligence HUD LEAN SOW Freddie Mac SOW Fannie Mae SOW Expertise PCA Phase I ESAs Transaction Screen Database Review Peer Review Environmental Portfolio Reviews Report Re-Issue Andrea Self | Senior Project Manager EMAIL aself@vertexeng.com | PHONE 312.428.3658 BIOGRAPHY Ms. Self is a civil engineer with over 15 years of experience in Due Diligence consulting conducting Property Condition Assessment and Phase I Environmental Site Assessment reports for commercial properties across the continental United States, Alaska, and Canada. As a Senior Project Manager, she has comprehensive experience assessing a wide variety of commercial property types, ranging from multifamily, office/retail, industrial storage/warehouse, hotel, undeveloped land, manufacturing facilities and manufactured housing communities. These projects have been performed in compliance with a variety of work scopes, including ASTM, the EPA’s All Appropriate Inquiry (AAI), Fannie Mae, Freddie Mac, HUD, and various conduit and life insurance company requirements. Ms. Self has been involved in performance of both Phase I and Condition Assessments directly for Fannie Mae’s Risk Group in Dallas, and she has also provided expert witness testimony related to loan workouts and divestiture. Ms. Self has completed numerous Phase I investigations and Physical Needs Assessments (PNA) for HUD’s Affordable Healthcare LEAN programs. Ms. Self’s PNA Assessments have included review of applicable Section 504/UFAS, FHA, and ADA standards as required by HUD. Reports completed and/or reviewed under the HUD scopes of work include senior living and assisted living facilities in the Minneapolis metro area, the Chicago metro area, the Atlanta metro area, Alabama, Florida, Idaho, New Jersey, North Carolina, Texas, and Wisconsin. Ms. Self’s senior review responsibilities at VERTEX involve peer technical review and scope conformance/compliance evaluations on Fannie Mae, Freddie Mac, and HUD assignments within the firm. EDUCATION/TRAINING B.S., Civil Engineering, University of Tennessee at Chattanooga 2004 LICENSES/CERTIFICATIONS Engineer In Training (EIT), State of TN Hazwoper OSHA 10 AHERA Building Inspector, State of WI ASSOCIATIONS Healthcare Mortgage Advisory Council (HMAC) - 2018 Midwest Lenders Association - 2018 PUBLICATIONS/PRESENTATIONS Due Diligence for Federal Agency Lending - Property Condition and Environmental Assessments, The Vertex Companies Online Blog, October 2, 2018