PROPERTY CONDITION ASSESSMENT

Transcription

1 Environmental & Engineering Consulting 31A Northfield Avenue Edison, New Jersey Phone Fax PROPERTY CONDITION ASSESSMENT of Oakwood Village Apartments 1311 Marks Church Road Augusta, Richmond County, Georgia Property #: 8143 Prepared for: LNR Partners, Inc Washington Avenue, Suite 700 Miami Beach, Florida Prepared by: Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Date: March 8, 2011 Property Solutions Project No SERVING YOUR NEEDS NATIONWIDE FROM OUR OFFICES IN: ATLANTA BALTIMORE CHICAGO DALLAS LA NY ORLANDO PHILADELPHIA

2 Environmental & Engineering Consulting 31A Northfield Avenue Edison, New Jersey Phone Fax PROPERTY CONDITION ASSESSMENT of Oakwood Village Apartments 1311 Marks Church Road Augusta, Richmond County, Georgia Property #: 8143 Prepared for: LNR Partners, Inc Washington Avenue, Suite 700 Miami Beach, Florida Prepared by: Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Date: March 8, 2011 Property Solutions Project No Gary Fowler Project Manager Dennis D. Heindel, P.E. Manager, Engineering Services SERVING YOUR NEEDS NATIONWIDE FROM OUR OFFICES IN: ATLANTA BALTIMORE CHICAGO DALLAS LA NY ORLANDO PHILADELPHIA

3 SECTION TABLE OF CONTENTS PAGE PROPERTY OVERVIEW EXECUTIVE SUMMARY General Description General Physical Condition Opinions of Probable Costs Deferred Maintenance and Physical Deficiencies Replacement Reserve Analysis Recommendations Code Compliance Research Results PURPOSE AND SCOPE Purpose Scope of Work SITE IMPROVEMENTS Site Topography Stormwater Drainage and Flood Zone Ingress and Egress Paving, Curbing, and Parking Flatwork Landscaping and Appurtenances Utilities Recreational Facilities Property Lighting STRUCTURAL FRAME AND BUILDING ENVELOPE Structural Frame Foundations Building Frame Building Envelope Exterior Walls Roofing Windows and Doors Patios, Terraces, and Balconies Interior and Exterior Stairs INTERIOR ELEMENTS Tenant Spaces Common Areas and Service Areas Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

4 6.0 MECHANICAL AND ELECTRICAL SYSTEMS Plumbing Heating, Ventilation, and Air Conditioning Electrical LIFE SAFETY AND FIRE PROTECTION VERTICAL TRANSPORTATION OTHER STRUCTURES DOCUMENT REVIEW AND INTERVIEWS Document Review Interviews ADDITIONAL CONSIDERATIONS Seismic Zone Classification ADA Compliance Mold Observation Other Considerations References LIMITATIONS AND EXCEPTIONS OF THE ASSESSMENT IMMEDIATE RESERVE APPENDICES Appendix A Maps Appendix B Property Photographs Appendix C Correspondence Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

5 PROPERTY OVERVIEW Client Name/User: LNR Partners, Inc. Property Visit Date: February 18, 2011 Client Contact: Mr. Dmitry Sulsky Year Built: 1985 Property Solutions Project No.: No. Bldgs./ No. Units: 10 Bldg./70 Units Property Solutions Project Manager: Mr. Gary Fowler No. of Stories: One No. of Parking Spaces: 116 Bldg. Square Footage: 46,900 s.f. Overall Units Observed: Eight Site Acreage: 5.11 acres Property Name: Oakwood Village Apartments Basement/Slab-on-grade: Crawlspace Property Address: 1311 Marks Church Road Units Vacant: Units Down: Five Zero Property Town, County, State: Augusta, Richmond Co., Georgia Property Use: Multi-family residential Property Ownership Entity: Oakwood Village Apartments Weather: Clear, 65 degrees Categories Descriptions G S F P NA Life Safety SITE IMPROVEMENTS Topography & Drainage Very slightly sloped, underground system X Paving, Curbing and Parking Asphalt paving, no curbs, concrete tire stops, 116 spaces X Flatwork Concrete site sidewalks; trip hazards observed X X Landscaping & Amenities Trees, shrubs, grass; eroded areas evident; picnic area with two tables Recreational Facilities Picnic area X Property Lighting Pole mounted lights and building mounted lights X BUILDING COMPONENTS Building Structure & Foundation Wood frames on low concrete block foundation walls supported by concrete spread wall footing foundations Exterior Facades Painted T-111 siding and hardi-board, also stone X Roofing Asphalt shingles on gabled roofs X Windows & Doors Aluminum frame single pane, metal exterior, hollow core wood interior Patios, Terraces & Balconies Concrete patios X Interior & Exterior Stairs Pull-down attic stair to overhead storage area X Tenant Spaces Common Areas & Service Areas Carpet, vinyl sheet flooring, 12 x 12 vinyl floor tiles, gypsum wallboard walls and ceilings, popcorn ceiling finish; appliances include refrigerator, oven/stove, vent hood, dishwasher Carpet, vinyl sheet flooring, gypsum wallboard walls and ceilings, popcorn ceiling finish Plumbing Polybutylene supply piping, PVC/cast iron drains, electric X hot water heater in each apartment HVAC Electric PTAC unit in each apartment X Electrical 125 Amps per unit, copper wire X Life Safety & Fire Protection Battery operated smoke detectors and extinguishers in each unit Vertical Transportation None X Other Structures Maintenance shop and mail station X Notes / Recommendations: To understand the property and report, you must read the Executive Summary and complete report. We have performed a Property Condition Assessment in conformance with the scope and limitations of ASTM Standard E X X X X X X X Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

6 1.0 EXECUTIVE SUMMARY 1.1 General Description Property Solutions Inc. has conducted a Property Condition Assessment of the property known as Oakwood Village Apartments located at 1311 Marks Church Road in Augusta, Richmond County, Georgia (subject property) at the request of LNR Partners, Inc. of Miami Beach, Florida. The scope of work for this report is based upon the LNR Partners, Inc. Scope of Work and the American Society for Testing and Materials (ASTM) Standard E The work was authorized by the signed proposal dated February 15, As part of this assessment, a property visit was conducted on February 18, 2011 by Gary Fowler, Project Manager, of Property Solutions with Toni Jameson, District Manager and Jessica O Steen, Property Manager. The assessment included a request for available information and documentation for the subject property. The subject property consists of a rectangular shaped parcel of land that contains 5.11 acres. The subject property is improved with 10 single-story multi-family residential buildings constructed in 1985 (subject buildings). The subject property is also improved with a free-standing mail station, and a maintenance shop that has been appended onto the end of Building 10. The remaining portions of the subject property are covered with the associated paved parking/driving areas, lawn areas, landscaping, and a stormwater retention basin that is located in the northeast portion of the property. Parking is provided for 116 vehicles. One handicapped accessible parking space is located at the leasing office and others are scattered as needed about the property for the use of handicapped residents. Vehicular access to the subject property is gained via Fister Court, a private drive into the property that comes off the west side of Marks Church Road. Marks Church Road runs along the east side of the subject property. The subject buildings are wood framed buildings constructed on low concrete block foundation walls. These foundation walls are likely supported by poured in place concrete spread wall footings. Each building contains a low crawlspace beneath it. Information provided by property management indicates that the gross area of the subject buildings is approximately 46,900 square feet. The subject buildings contain 70 residential apartment units, five of which are vacant. No down units are present. Interior floor finishes include carpet, vinyl sheet flooring, and 12 x 12 vinyl floor tiles. Walls and ceilings are constructed of gypsum wallboard, with the ceilings being finished with popcorn texturing material. Interior doors consist of hollow core swinging doors and bifold doors and the windows are aluminum framed single paned windows. Exterior doors are of metal construction. The apartment units are heated and cooled by through-thewall PTAC (package terminal air conditioning) units and hot water is provided by electric water heaters Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

7 The leasing office is contained within Building One and the resident s laundry is contained within Building Four. The laundry equipment includes three washing machines and three dryers and these machines are leased from Coin Mach. Past renovations to the subject buildings have included new roofs on some of the buildings, the addition of hardi-board siding to some building end walls, and the addition of hardi-board siding as fascia material on some buildings. Except for the fascia repairs which occurred in 2010, available site personnel were unaware of the dates of the roof or siding installations. 1.2 General Physical Condition The subject property is in overall satisfactory condition, with some measurable defects noted or reported. Tenant improvements are of average construction, and are well maintained. It is Property Solutions opinion that the subject property is comparable to other properties of similar age in this area and, subject to immediate repairs a continued program of sustained preventative maintenance, the remaining economic life should exceed 20 years. 1.3 Opinions of Probable Costs Deferred Maintenance and Physical Deficiencies Deferred maintenance and physical deficiencies for which action is recommended represent potentially unsafe conditions, material code violations, and items that require corrective work on a higher priority than routine work Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

8 Based upon observations conducted during the property visit, items required as corrective work to remedy immediate physical needs are as follows: Item Quantity Unit Unit Immediate Cost Cost Replace some of the PTAC units 14 Each $800 $9,000 Replace the water heaters 14 Each $400 $4,000 Replace the refrigerators 14 Each $400 $8,000 Replace the ranges 14 Each $350 $5,500 Replace the dishwashers 14 Each $250 $5,000 Replace the polybutylene piping system Replace the roofs Replace damaged/rotten fascia, replace missing gutters Pedestrian pavement, flatwork repairs to correct trip hazards and undermining Address eroded areas and distressed/dead vegetation Sealcoat and stripe asphalt paving Replace retaining walls Replacement Reserve Analysis 28 Units $750 $15,000 20, Several 40,600 2 Square Feet Square Feet Lump Sum Lump Sum Square Feet Lump Sum $1.00 $20,000 $3.00 $1,500 $1,000 $1,000 $3,000 $3,000 $0.15 $6,090 $15,000 $15,000 TOTAL COST: $98,390 A Replacement Reserve Analysis is not a part of this Scope of Work. 1.4 Recommendations No recommendations for further research, investigation, or testing were identified during the property visit Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

9 1.5 Code Compliance Research Results During the course of the assessment of the subject property, Property Solutions contacted the following agencies via phone, letter, or in person: Robert Sherman, Director Augusta/Richmond County License and Inspection Department Augusta, Georgia According to Mr. Sherman the subject buildings were built in Currently there are no known building code violations at the subject property. Stephanie Kingdom, Receptionist Augusta/Richmond County Planning and Zoning Department Augusta, Georgia According to Ms. Kingdom, the subject property is zoned B-1 (neighborhood business. There are no records of any zoning changes at the subject property which indicates it has been zoned B-1 since the original zoning ordinance was placed into effect. There are no records of any zoning code violations at the subject property. Captain Jack Womack, Fire Marshall Augusta/Richmond County Fire Department Augusta, Georgia According to Captain Womack the department does not inspect individual apartment units unless there is a complaint, but they do inspect common areas and exterior areas. The department also requires that on-site fire hydrants be present and tested on an annual basis. Captain Womack stated that the hydrants at the subject property were tested in 2010 and found to be in good condition, and that there are no known fire code violations at the subject property. According to ASTM E , Section 7.4.5, information that has been requested must be reasonably ascertainable as part of performing the Property Condition Assessment. Information that is reasonably ascertainable per ASTM means that information will be provided by the source within 10 business days of receiving a written, telephone, or inperson request. Copies of the letters and records of communication are included in the appendices Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

10 2.0 PURPOSE AND SCOPE 2.1 Purpose This report summarizes the findings of the Property Condition Assessment conducted for the subject property known as Oakwood Village Apartments located at 1311 Marks Church Road in Augusta, Richmond County, Georgia As part of this assessment, a property visit was conducted on February 18, 2011 by Gary Fowler, Project Manager, of Property Solutions Inc. with Toni Jameson, District Manager and Jessica O Steen, Property Manager. Report preparation was predicated on a review of on-site readily accessible and visible property components, and a review of available documentation regarding the property. Readily accessible site areas, building exteriors and tenant interiors were observed. Property Solutions understands that this report is to be used for loan purposes and not for pre-purchase due diligence. The purpose of the Property Condition Assessment is to identify significant defects, deficiencies, items of deferred maintenance, and material building code violations associated with the property. The report includes recommendations and opinions of probable cost for the replacement of major property components that will be required during the proposed immediate reserves. It is the intent of the ASTM E and this report that the material physical deficiencies observed and the corresponding opinions of probable cost not be minor or insignificant. Therefore, the opinions of probable cost that, either individually or in aggregate, total less than a threshold amount of $1,000 for like items are omitted from this Property Condition Assessment Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

11 2.2 Scope of Work The scope of work for this Property Condition Assessment is based upon the LNR Partners, Inc. Scope of Work and the American Society for Testing and Materials (ASTM) Standard E and includes the following: Property Solutions performed a property visit on February 18, The visit included a visual survey of easily accessible property components and systems. This included a review of the subject property, architectural, structural, mechanical, plumbing, and electrical systems, plus a limited review of compliance with the Americans with Disabilities Act (ADA) of Submittal of a pre-assessment request for information and documentation regarding the physical condition of the subject property. Interviews with people knowledgeable of the subject property. A review of local building and fire department records regarding the subject property. Opinions of probable costs to remedy Immediate Physical Deficiencies. Preparation of a Property Condition Assessment Report as required by the client. No plans for the subject property were available for review. No previous reports for the subject property were available for review Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

12 3.0 SITE IMPROVEMENTS 3.1 Site Description: The subject property consists of a rectangular shaped parcel of land that contains 5.11 acres. The subject property is located on the east side of Marks Church Road approximately 1,500 feet north of the intersection of Marks Church Road and Wrightsboro Road. The property is bounded to the west by Bobby Jones Expressway (Interstate Highway 520). The subject property is located on the United States Geological Survey (USGS) 7.5-minute series Augusta West, Georgia topographic quadrangle map. The subject property is identified as parcel number , according to the Augusta/Richmond County Tax Assessor s Office. According to the Augusta/Richmond County Planning and Zoning Department, the Property is zoned B-1 (neighborhood business) which allows multifamily residential use. An area map locating the subject property is included in the appendices. Observations/Comments: The subject property is located in a moderately developed residential/commercial area of Augusta, Georgia. The site is located in an area that is composed predominantly of residential, retail, and undeveloped properties Topography Description: Review of the United States Geological Survey (USGS) 7.5-minute series Augusta West, Georgia topographic quadrangle map reveals that the elevation of the subject property is approximately 360 feet above mean sea level. The subject property is nearly level, possessing a slope estimated to be two percent or less. The topography of the vicinity of the subject property appears to decline to the west and northwest toward Raes Creek. At its closest point this creek is approximately 1,500 feet northwest of the subject property. An excerpt from the USGS 7.5-minute series Augusta West, Georgia topographic quadrangle map, locating the subject property, is included in the appendices. Observations/Comments: Overall no significant effects on the operation of the property can be attributed to topographic particulars at this location. Therefore, no immediate repairs are required Stormwater Drainage and Flood Zone Description: Stormwater runoff is expected to exit the subject property via overland flow and enter the on-site stormwater collection system via storm drains located within the subject property s parking areas. The stormwater collection basins appear to drain to a stormwater retention basin located at the front of the property, in the northeast corner, and to a concrete drainage channel located along the southwest side of the subject Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

13 property. This channel appears to drain to the adjacent property to the west which is the right of way for Interstate Highway 520 (I-520). Stormwater is also expected to percolate through the soil of the landscaped and non-paved areas. Most building roofs are drained to the surrounding ground surface via gutters and downspouts though a couple of the buildings did not possess complete gutter systems at the time of the property assessment. No water bodies are located on the subject property; however, as stated a stormwater retention basin is present in the northeast portion of the property. This basin was dry at the time of the property assessment. Based on a review of the National Flood Insurance Program s Flood Insurance Rate Map (Community-Panel No C0105F, dated September 25, 2009) for Augusta/Richmond County, Georgia, the subject property is located in Flood Zone X (unshaded). Flood Zone X (unshaded) is an area that is not located in the 500-year flood plain. Observations/Comments: No evidence of flooding was noted and no flooding incidents were reported. However, eroded areas were observed on the subject property. These were located on the south side of the property behind Building 4, where a downspout terminated at ground level, near the northwest corner of Building 8, and near the southeast corner of Building 8. The erosion in the vicinity of Building 8 had partially undermined a sidewalk allowing it to begin to fail and had uncovered several tree roots which present a significant tripping hazard to the residents of the complex. The repair of the eroded areas and the installation of proper cover to prevent future erosion is considered to be an immediate repair Ingress and Egress Description: The subject property is accessed via Fister Court, a private drive that comes off the west side of Marks Church Road. Marks Church Road runs along the eastern boundary of the subject property. Observations/Comments: Access and egress are satisfactory. No automatic traffic signals are located at the access point to the subject property. No remedial measures are recommended Paving, Curbing, and Parking Description: Parking areas are provided on the subject property in the vicinities of the various buildings. Most of the parking spaces are provided along Fister Court which runs the length of the property, near its center. One small parking space comes off the south side of Fister Court and is located between Buildings 1 and 2. Parking is provided for 116 vehicles on asphalt paved surfaces, which cover most of the site not utilized for the building footprints, sidewalks, and landscaped areas. Property Solutions observed one handicapped accessible parking space at the leasing office, and others that were Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

14 scattered about the property as needed for the use of handicapped residents. The spaces located about the property were denoted as handicapped accessible by pole mounted signs. Parking stalls are defined by striping. There are no curbs to define the paved parking areas; concrete tire stops are installed to prevent vehicles from rolling off the edge of the pavement. Observations/Comments: Overall the paved surfaces appeared to be in satisfactory condition, as was the striping that denoted the individual parking spaces. Some areas of alligatored paving were observed as were some patched areas. No areas of loose pavement were observed and the pavement that was present appeared to be effectively sealed, though site personnel were unable to provide the date the pavement was last sealed and striped. The pavement should be sealcoated and re-striped within the next one to two years. Immediate reserves are necessary for paving and parking Flatwork Description: Cast-in-place concrete sidewalks are present in the vicinities of the subject buildings. As there are no curbs to denote the edges of the parking areas, and as the sidewalks can be directly accessed from the asphalt paved parking areas, there are no wheelchair cuts on the subject property. Observations/Comments: The sidewalks and other flatwork were observed to be in fair to satisfactory condition. For the most part the sidewalks were adequate; however some tripping hazards were observed where some displacement had occurred (primarily near Apartments 144 and 158, Buildings 7 and 9 respectively) and one area of failing sidewalk was observed near the northwest corner of Building 8. This area of failing concrete was in an area that was undermined as a result of erosion issues; being partially undermined the sidewalk was beginning to crack and sink, which may lead to its complete collapse if the issue is not appropriately addressed. At the current time the sidewalk is still stable but without the appropriate corrective measures the condition is likely to worsen over time. Immediate reserves are required for flatwork and trip hazard repair and are included in the Immediate Reserve Analysis Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

15 3.1.6 Landscaping and Appurtenances Description: Landscaping at the subject property consists of lawn areas containing grass, trees, and shrubs. Natural areas are also present in the area of the storm water retention basin and along the west property boundary; these areas are typically populated by trees and naturally growing underbrush with no finished landscaping present. A grassed area in the northwest portion of the subject property contains two picnic tables and two pedestal mounted metal grills for cooking out. Two wood crosstie retaining walls are present on the subject property; the largest is in the northern portion of the property and a low retaining wall is located in the southwestern portion of the property near the concrete drainage channel. Observations/Comments: The landscaping did not appear to be professionally maintained. The condition of the live plant material appeared satisfactory; however there was some distressed and dead vegetation scattered about the property (shrubbery, mostly, but one dead pine tree near the entrance to the property). Wood crosstie retaining walls were noted to be in poor condition with many rotten crossties present and with areas where the crossties were missing. The replacement of the crosstie retaining walls is required as an immediate need item. Immediate reserves are required for the replacement of the retaining walls and the removal/replacement of the distressed and dead vegetation and are included in the Immediate Reserve Analysis Utilities Description: Property Solutions was informed by Toni Jameson, District Manager for Emperian Property Management that the following companies, municipalities or authorities currently provide utility services to the subject property: UTILITY Electricity Natural Gas Sanitary Sewerage Potable Water Solid Waste Removal Propane PROVIDER Georgia Power Company Not provided Augusta Utilities Augusta Utilities Oakleaf (Advanced Disposal was placarded on the side of the on-site dumpsters) Ferrell Gas Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

16 On-site utilities are underground. Electricity is from five pad mounted transformers located about the property with underground conductors routed to electrical panels in the individual tenant spaces. Tenants are individually metered for electricity, potable water, and sewer service. Observations/Comments: No corrective measures regarding the basic utility services are recommended Recreational Facilities Description: The only observed recreational facility observed on the subject property was the picnic area previously mentioned in Section As stated above this area contained two wooden picnic tables and two pedestal mounted metal grills. Observations/Comments: The picnic tables and grills were observed to be in good condition. No immediate reserves are necessary for the recreational facilities Property Lighting Description: Site lighting in the vicinity of the subject buildings and the parking areas is provided by building mounted light fixtures as well as pole mounted light fixtures. Pole mounted fixtures are present in two sizes; some of the fixtures are on poles that appear to be approximately 15 to 20 feet in height and others are on smaller poles of approximately five feet in height. The smaller pole mounted fixtures are generally between buildings, along sidewalks, etc. Observations/Comments: Site lighting appeared to be in good condition. Although the property was not observed at night, property lighting appears to be distributed for adequate illumination. No immediate reserves are necessary for the property lighting. 4.0 STRUCTURAL FRAME AND BUILDING ENVELOPE 4.1 Structural Frame Foundations Description: Original plans and specifications were not provided for the subject property. The subject buildings are constructed on small foundation walls constructed of concrete blocks; these foundation walls are likely to be supported by poured in place, concrete spread wall footings. There are no basement areas or subterranean vaults; however, low crawlspaces are present beneath each building Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

17 Observations/Comments: The foundations appeared to be in good condition. Visual observation of the foundation walls, interior walls, and exterior perimeter building walls indicated no evidence of structural foundation movement. The foundation walls that were visible in the crawl spaces appeared to be in good condition with no significant cracks or moisture intrusion observed. No immediate reserves are necessary for the foundations Building Frame Description: The subject buildings are wood framed buildings. Observations/Comments: The building frames were observed to be in good condition. No evidence of unduly stressed, broken, or rotten framing members was observed. No immediate reserves are necessary for the building frames. 4.2 Building Envelope Exterior Walls Description: The exterior walls of the subject buildings consist of painted T-111 siding, painted hardi-board siding, and stonework. Fascias and soffits are typically constructed of wooden planks or plywood (respectively) but some buildings have had hardi-board siding installed as fascia material and as soffit material. Observations/Comments: The exterior walls were observed to be in overall good condition but fascias on Buildings 7, 8, and 10 were observed to contain rotten and/or damaged areas. No evidence of settlement or casualty was observed on the exterior walls during the property visit. The painting on the exterior walls was observed to be in good condition with no cracked, peeling, or discolored paint observed. The rear elevations of Buildings 1 and 3 did not contain gutters. Immediate reserves are required for the repair of the rotten and damaged fascia and for the replacement of the missing gutters. These immediate reserves are included in the Immediate Reserve Analysis Roofing Description: The building roofs consist of wooden rafters that support decks constructed of oriented strand board (OSB). The decks are finished with composition shingles Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

18 Observations/Comments: No current roofing leaks were reported and Property Solutions observed no evidence of leaks within the building interiors. The roofing surfaces appeared clean, free of debris and without curling shingles. Though the roofing was observed to be in satisfactory condition it did appear to be aged. Some buildings appear to have been reroofed in the past as the roofs on these buildings were a different color than the majority of the roofs. Site personnel reported that some buildings had received new roofs in the past but could not provide the date the newer roofs were installed or the ages of the existing roofs. Some look as though they may date back to the original construction date of the apartment complex (1985). As roofing of this type typically has an effective useful life of 20 to 25 years, depending on the quality of materials, installation, and maintenance, climatic conditions, and the amount of roof traffic it is suspected that much of the roofing material on the subject buildings is nearing, at, or beyond its effective useful life. Based on the assumed ages of the building roofs, a phased roof replacement, which may extend over the next few years pending the continued non-leaking status of the roofs, should be initiated with some roof replacement beginning in the near term. Immediate reserves are required for the near term roof replacement and are included in the Immediate Reserve Analysis Windows and Doors Description: Exterior doors consist of metal doors in wooden frames, while interior doors consist of hollow core doors and hollow core bi-fold doors. Windows are aluminum framed, single paned windows. Observations/Comments: The windows and doors were observed to be in good condition. No immediate reserves are necessary for the windows and doors Patios, Terraces, and Balconies Description: Small concrete patios are present at the front of the apartment units and these are equipped with painted wooden privacy fences. No balconies or terraces are present. Observations/Comments: The patios and the associated privacy fences were observed to be in good condition. No immediate reserves are necessary for the patios, terraces, and balconies Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

19 4.2.5 Interior and Exterior Stairs Description: There are no exterior or interior stairs at the subject property. Inside each apartment is a pull-down, attic-type stair that provides access to a wood floored storage area above the storage room or kitchen. Observations/Comments: The attic-type stairs are constructed of wood and were observed to be in good condition. No immediate reserves are necessary for the pull-down, attic-type stairs. 5.0 INTERIOR ELEMENTS 5.1 Tenant Spaces Description: Information provided by property management indicates that the gross area of the subject buildings is approximately 46,900 square feet. The subject buildings contain 70 residential apartment units, five of which are vacant. No down units are present. Interior floor finishes include carpet, vinyl sheet flooring, and 12 x 12 vinyl floor tiles. Walls and ceilings are constructed of gypsum wallboard, with the ceilings being finished with popcorn texturing material. Interior doors consist of hollow core swinging doors and bi-fold doors and the windows are aluminum framed single paned windows. Exterior doors are of metal construction. The apartment units are heated and cooled by through-the-wall PTAC (package terminal air conditioning) units and hot water is provided by electric water heaters. Kitchen appliances include an electric range, vent hood, refrigerator, and dishwasher. Bathrooms are equipped with a plastic tub and tub surround combination, a wood vanity with a laminate countertop and porcelain drop-in sink, and a porcelain toilet. A break-down of the unit types at the subject property is provided below. Unit Type No. of Units Square Feet Studio Bedroom, 1-Bathroom Bedroom, 1-Bathroom Bedroom, 2-Bathroom Total Number of Units and Square Feet 70 46, Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

20 Observations/Comments: Property Solutions entered into and observed the interiors of the following eight apartments: Unit # Type Status 112 Studio Occupied Bedroom Vacant Bedroom Occupied 129 Studio Model Bedroom Vacant Bedroom Vacant Bedroom Vacant Bedroom Occupied The interior tenant spaces of the subject building are maintained by building management and are in overall good condition. However, even though a number of the kitchen appliances have been replaced over the last four or five years many look older and perhaps are nearing the end of their estimated useful lives. Based on the estimated ages of the kitchen appliances, a phased appliance replacement, which may extend over the next few years pending the continued good operating condition of the appliances, should be initiated with some appliance replacements beginning in the near term. Immediate reserves are required for the near term appliance replacement and are included in the Immediate Reserve Analysis. Flooring materials were observed to be in good condition and no immediate reserves are required for the replacement of flooring materials. 5.2 Common Areas and Service Areas Description: The leasing office is contained within Building One and the resident s laundry is contained within Building Four. Finishes in these areas are as described above in the description of finishes in the apartment units. Observations/Comments: The interior common areas and/or service areas of the subject building are maintained by building management and were observed to be in good condition. The office contained desks, chairs, tables and a small sofa and the laundry contained three washing machines and three dryers. The laundry equipment is leased from Coin Mach; therefore property management is not responsible for the maintenance and upkeep of this equipment Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

21 No immediate reserves are necessary for the interior common areas. 6.0 MECHANICAL AND ELECTRICAL SYSTEMS 6.1 Plumbing Description: Potable water is provided by Augusta Utilities. The plumbing system includes the necessary hot and cold water supply, drainage, waste, and vent systems. Water supply piping consists of polybutylene piping and waste, drainage and vent lines consist of polyvinyl chloride (PVC) piping. Sanitary sewers discharge to the municipal sewerage system, provided by Augusta Utilities. No sewage lift stations were observed during the property visit. Domestic hot water is supplied by 40 gallon capacity electric water heaters located in each apartment. Bathroom fixtures consist of a plastic tub and tub surround combination, a porcelain drop-in sink, and a porcelain toilet. Bathroom piping is as described above. Floor drains were not observed. Observations/Comments: Plumbing systems and equipment appear to be adequate for the limited demands of this property with no problems observed or reported. The plumbing was observed to be in good condition with no evidence of leaks noted. Site personnel reported that there had been no known leaks in the supply system but did report that when new piping needed to be installed PEX piping was now used (none of this was observed). Most of the observed water heaters appeared to be older units but all appeared to be in good condition and functioning properly. Management has reported that over the last four or five years five of these units have been replaced. Based on the estimated ages of the water heaters, a phased water heater replacement, which may extend over the next few years pending the continued good operating condition of the water heaters, should be initiated with some water heater replacements beginning in the near term. Immediate reserves are required for the near term water heater replacement and are included in the Immediate Reserve Analysis. Even though there have been no reported leaks from the polybutylene piping system, this type of system is notorious for sudden catastrophic failure, particularly as it ages. Therefore a phased replacement of this piping system should be initiated with the replacements beginning in the very near term. Immediate reserves are required for the near term polybutylene piping system replacement and are included in the Immediate Reserve Analysis Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

22 6.2 Heating, Ventilation, and Air Conditioning Description: The subject buildings are heated and cooled by electric through-the-wall PTAC (package terminal air conditioning) units. One unit is located in each apartment and common area. Property management reported that some of these units have been replaced during the last four or five years but most appeared to be older units that may date to the construction date of the subject property. Observations/Comments: The heating, ventilation, and air conditioning (HVAC) equipment was observed to be in good condition though many of the HVAC units may be at, nearing, or beyond their expected useful lives. Based on the estimated ages of the HVAC equipment, a phased HVAC equipment replacement, which may extend over the next few years pending the continued good operating condition of the HVAC equipment, should be initiated with some HVAC equipment replacements beginning in the near term. Immediate reserves are required for the near term HVAC equipment replacement and are included in the Immediate Reserve Analysis. 6.3 Electrical Description: Electric power to the buildings is from pad-mounted transformers located about the property. Underground cables connect to the building mounted meters for individual units and from there to electric panels located in each apartment. Incoming service is 120/240-volt, single phase, 3-wire service, provided by copper wiring. Electrical panels contain circuit breakers and are rated at 125 amps. Observations/Comments: The electrical system was observed to be in good condition. The electrical distribution system appears to be adequately sized to meet the present demand. No immediate reserves are necessary for the electrical system. 7.0 LIFE SAFETY AND FIRE PROTECTION Description: The apartment units are not sprinklered but they are equipped with audible, battery powered smoke alarms and fire extinguishers. Observation/Comments: The life safety and fire protection systems were observed to be in satisfactory condition. No immediate reserves are necessary for the life safety and fire protection systems Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

23 8.0 VERTICAL TRANSPORTATION There are no elevators or escalators associated with this property. 9.0 OTHER STRUCTURES Description: A wood mail station and a wood maintenance shop are present. The mail station is a free-standing, open-sided structure consisting primarily of a roof supported by four wooden posts supported by a concrete slab, and the maintenance shop is a small wooden structure that has been appended on to the end of Building 10. The roof consists of a wood deck covered with composition shingles. Observations/Comments: The mail station and maintenance shop were observed to be in good condition. No immediate reserves are necessary for the other structures DOCUMENT REVIEW AND INTERVIEWS 10.1 Document Review Property Solutions was provided with the following documents by Jessica O-Steen, Property Manager of Oakwood Village Apartments A hand-drawn site plan of the subject property. The completed Pre-Survey Engineering Questionnaire No concerns were identified during the cursory review of the documents. Copies of the documents are included in the appendices Interviews Property Solutions interviewed Ms. Toni Jameson, District Manager of EPM Apartments Inc. and Ms. Jessica O Sheen, Property Manager of Oakwood Village Apartments regarding the subject property. Ms. Jameson has been associated with the subject property for six years; Ms. O Sheen did not provide the time of her association with the property. According to Ms. Jameson and Ms. O Sheen they were unaware of when prior roof replacements and siding installation projects had occurred but stated that they had not occurred in the six years of Ms. Jameson s association with the property. They were also unable to provide the date the last asphalt sealing and striping event occurred at the property. Exterior painting is handled by maintenance staff and is accomplished as needed. Ms. Jameson and Ms. O Sheen provided information regarding the approximate numbers of kitchen appliances, PTAC units, and water heaters that have been replaced in the last four or five years and indicated that some of the building fascias were replaced in Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

24 the summer of Neither individual was aware of any prior plumbing or roofing leaks and they were unaware of any prior or current mold issues at the property ADDITIONAL CONSIDERATIONS 11.1 Seismic Zone Classification Based on a review of the Seismic Zone Map of the U.S. Figure 16-2 of the Uniform Building Code, the subject property is located in a Seismic Zone2A. Seismic Zone 2A is an area where the probability of damaging ground motion is low to moderate ADA Compliance Overview of the Americans with Disabilities Act: The Americans with Disabilities Act ( ADA ) 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 are considered to be places of public accommodations remove those architectural barriers and communications barriers that are considered readily achievable in accordance with the resources available to 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 an 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 as well. 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 thresholds of any kind to determine whether an action is readily achievable. The ADA became effective on January 26, As defined under Title III of the ADA, facilities that existed prior to the effective date that are considered to be a place of public accommodations must take steps to remove architectural and communication barriers that are deemed readily achievable under the retroactive requirements. Buildings constructed after the 1992 effective date of the ADA are required to provide barrier free access to accessible areas of the building. The Americans with Disabilities Act (ADA), Title III, 28 CFR Part 36 dated July 26, 1991 and printed in the Federal Register, as it applies to multifamily properties, governs all areas of public accommodation. The provisions of Title III provide that persons with disabilities should have accommodations and access to public facilities that are equal or similar to those available to the general public. The ADA calls for a property owner to expend, if required, "reasonable" sums for "practicable" or "readily achievable" solutions to ADA barrier removal and non-compliance issues. The definitions of "reasonable," "practicable" or "readily achievable" are site dependent, and vary based on the owner's financial status Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

25 The dwelling units in multi-family housing properties fall under the jurisdiction of the Fair Housing Act, as amended in 1988, which governs both private and publicly funded housing. According to the Act the owner of a property constructed prior to the effective date of the act is not specifically required to complete modifications to an older unit or units for compliance with the ADA. Existing or prospective tenants must be permitted to make modifications to their units and/or the common areas at their own expense, but these modifications can be completed only to meet their individual needs, and do not need to conform to the ADA guidelines. Due to the unique nature of each property, the extent of analysis required and the many variables of compliance with the ADA guidelines, evaluating costs for full ADA conformity is beyond the scope of this Report. For the purposes of this Report the analysis is limited to a visual survey of areas readily observable or easily accessible, and an action that can be accomplished as routine maintenance or as a replacement, rather than a renovation. Changes could be necessary to the public areas of the Subject Property interior and/or site to make the property at least minimally compliant. Site work could include, but not be limited to, ramps and curb cuts at the building entrances, addition of HCP parking spaces, HCP signs or parking area markings, and an alternative accessible entrance designation and configuration. Alterations could also be required at the leasing office and laundry facilities. This work could include, but not be limited to, door and door hardware modifications; bathroom configuration changes; changes to plumbing accessories and fixtures; changes to cabinets and counters, and alterations to fire alarm devices and controls, if present. The common areas of the subject property likely meet the ADA definition of Places of Public Accommodations while the individual apartment units do not. The common areas of the subject property were constructed in 1985, prior to the effective date of the ADA and are subject to the retroactive requirements of the ADA guidelines. There is one handicapped accessible parking space adjacent to the leasing office, and other handicapped accessible parking spaces are scattered about the subject property for the convenience of handicapped residents. The spaces scattered about the property are denoted by easily observed pole mounted signs. The number of on-site ADA designated spaces is sufficient with respect to the total number of reported spaces. No immediate reserves are necessary for ADA compliance Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

26 11.3 Mold Observation Molds produce tiny spores to reproduce, which waft through the indoor and outdoor air continually. When mold spores land on a damp spot indoors, they may begin growing and digesting whatever they are growing on in order to survive. There are molds that can grow on wood, paper, carpet, and foods. When excessive moisture or water accumulates indoors, mold growth will often occur, particularly if the moisture problem remains undiscovered or un-addressed. There is no practical way to eliminate all molds and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture. In addition, mold growth may be a problem after flooding. Standards or Threshold Limit Values (TLVs) for airborne concentrations of mold, or mold spores, have not been set. Currently, there are no USEPA regulations or standards for airborne mold contaminants. No obvious visual evidence of mold, water intrusion, water damage, or standing water was observed in the interior portions of the subject building accessed by Property Solutions during the property visit. This limited visual review was conducted for overview purposes only; mold may exist in concealed locations (behind walls, wallpaper, and ceilings, etc.). Ms. Jameson and Ms. O Sheen were unaware of mold, water intrusion, water damage, standing water, or historic floods at the subject property Other Considerations No other considerations were revealed during the property visit References 1. United States Geological Survey s 7.5-minute series Augusta West topographic quadrangle map. 2. Flood Insurance Rate Map (Community Panel Number 13245C0105F) for Augusta/Richmond County, Georgia Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

27 12.0 LIMITATIONS AND EXCEPTIONS OF THE ASSESSMENT Property Solutions Inc. conducted a Property Condition Assessment of the property known as Oakwood Village Apartments located at 1311 Marks Church Road in Augusta, Richmond County, Georgia (subject property). This report has been prepared for the sole benefit of LNR Partners, Inc. and may not be relied upon by any person or entity without the written authorization of Property Solutions Inc. The report represents an assessment of the physical condition of the buildings and property based upon limited site observation of readily accessible and visible components, and professional judgment, and is current only as of the date of the site observation. Floors, walls, ceilings, and surfaced site areas, were not opened to reveal and observe substrate components. In light of this, concealed or not readily accessible substrate deterioration may be present, which ultimately, may negatively impact the conclusions of this assessment. Sampling of any property components was not conducted. The report is not to be construed as a warranty or guarantee of future building conditions, performance or, as an estimate of value. Opinions of probable cost used in the report are preliminary in nature and represent a range of probable costs. Firm price quotations from contractors, vendors, or suppliers would be required for more detailed costs, and would be based upon a detailed definition of the proposed scope of work. Environmental assessment of the subject property is beyond the scope of this report and accordingly, was not performed. No representation is made as to the property being free of toxic materials, termite or insect infestation, or other potentially damaging components Property Solutions Inc. 31A Northfield Avenue Edison, New Jersey Phone Fax

28 TERMINOLOGY Excellent Good Satisfactory Fair Poor New or like new requiring routine maintenance Satisfactory as is, requiring routine maintenance. Component or system is sound and performing its function. Other than routine preventive maintenance, no repairs or improvements are required at this time. Component or system is performing adequately at this time but exhibits normal wear and tear expected for the specific type of material, component, or equipment and the use or exposure to the elements for the given locale. Although it may show signs of normal wear and tear, commensurate with its age, some minor remedial work may be required. Acceptable as is for the most part but some aspects demand attention in the future. Component or system is performing adequately at this time but: exhibits deferred maintenance, evidence of previous repairs, workmanship not in compliance with commonly accepted standards, is obsolete, or is approaching the end of its typical useful life. Repair or replacement is required to prevent further deterioration, restore it to good conditions, prevent premature failure, or to prolong its EUL. Component or system exhibits an inherent deficiency that is best remediated by a program of increased preventive maintenance or periodic repairs. Requires immediate repair, replacement or significant maintenance. Component or system has either failed or cannot be relied upon to continue performing its original function as a result of having realized or exceeded its typical EUL, excessive deferred maintenance, a state of disrepair, an inherent design deficiency or workmanship. Present condition could contribute or cause the deterioration of contiguous elements or systems. Repair or replacement is required.

29 Immediate Reserves Project Number: Date: 3/8/2011 Project: Oakwood Village Apartments Address: 1311 Marks Church Road Augusta, Richmond County, Georgia ITEM QUANTITY UNIT UNIT COST IMMEDIATE COST Replace some of the PTAC units 14 Each $800 $11,200 Replace the water heaters 14 Each $400 $5,600 Replace the refrigerators 14 Each $400 $5,600 Replace the ranges 14 Each $350 $4,900 Replace the dishwashers 14 Each $250 $3,500 Replace the polybutylene piping system 28 Units $750 $21,000 Replace the roofs 20,000 Square Feet $1.00 $20,000 Replace damaged/rotten fascia, replace missing gutters 500 Square Feet $3.00 $1,500 Pedestrian pavement, flatwork repairs to correct trip hazards and 1 Lump Sum $1,000 $1,000 Address d i eroded i areas and distressed/dead vegetation Several Lump Sum $3,000 $3,000 Sealcoat and stripe asphalt paving 40,600 Square Feet $0.15 $6,090 Replace retaining walls 2 Lump Sum $15,000 $15,000 TOTAL COST: $98,390 Years 1 and 2 of a multi-year program Years 1 and 2 of a multi-year program Life Safety concern COMMENTS Years 1 and 2 of a multi-year program Years 1 and 2 of a multi-year program Years 1 and 2 of a multi-year program Years 1 and 2 of a multi-year program Years 1 and 2 of a multi-year program

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31 Subject Property US DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY 7.5" TOPOGRAPHIC QUADRANGLE MAP Property Solutions Inc. Oakwood Village Apartments 1311 Marks Church Road Augusta, Georgia Property Boundaries are Approximate Project No.:

32 Churchill Commons Apartments Marks Church Road I-520 Single family residence Subject Property Pad mounted transformers Undeveloped wooded land Property Solutions Inc. PROPERTY DIAGRAM Oakwood Village Apartments 1311 Marks Church Road Augusta, Georgia Property Boundaries are Approximate Project No.:

33 Subject Property Property Solutions Inc. STREET MAP Oakwood Village Apartments 1311 Marks Church Road Augusta, Georgia Property Boundaries are Approximate Project No.:

34 Subject Property Property Solutions Inc. TAX MAP Oakwood Village Apartments 1311 Marks Church Road Augusta, Georgia Property Boundaries are Approximate Project No.:

35 Subject Property Property Solutions Inc. FEMA FLOOD MAP Oakwood Village Apartments 1311 Marks Church Road Augusta, Georgia Property Boundaries are Approximate Project No.:

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37 PHOTO 1. East side (front) of the subject property. PHOTO 2. South side of the subject property. PHOTO 3. West side of the subject property. Property Solutions Inc. Project No.:

38 PHOTO 4. North side of the subject property. PHOTO 5. A typical apartment building at the subject property. PHOTO 6. A typical apartment building at the subject property. Property Solutions Inc. Project No.:

39 PHOTO 7. The interior of the leasing office. PHOTO 8. The interior of the laundry room. PHOTO 9. Typical apartment interior finishes. Property Solutions Inc. Project No.:

40 PHOTO 10. Typical apartment interior finishes. PHOTO 11. Typical apartment interior finishes. PHOTO 12. Typical apartment interior finishes. Property Solutions Inc. Project No.:

41 PHOTO 13. Typical apartment interior finishes. PHOTO 14. Typical apartment interior finishes. PHOTO 15. A typical water heater located in the apartment units. Property Solutions Inc. Project No.:

42 PHOTO 16. A typical PTAC HVAC unit located in the apartments (some are enclosed in cabinets). PHOTO 17. A view of a typical building roof. PHOTO 18. A typical building mounted light fixture. Property Solutions Inc. Project No.:

43 PHOTO 19. One of a few large pole mounted light fixtures on the subject property. PHOTO 20. One of several small pole mounted light fixtures on the subject property. PHOTO 21. A typical sidewalk at the subject property. Property Solutions Inc. Project No.:

44 PHOTO 22. A sidewalk tripping hazard (displaced concrete). PHOTO 23. A sidewalk tripping hazard (displaced concrete). PHOTO 24. An area of failing sidewalk due to erosion. Property Solutions Inc. Project No.:

45 PHOTO 25. Erosion, which is causing the sidewalk in Photo 24 to fail. PHOTO 26. Additional erosion, on the south side of the subject property. PHOTO 27. Distressed vegetation observed on the subject property. Property Solutions Inc. Project No.:

46 PHOTO 28. Distressed vegetation observed on the subject property (bush in background). PHOTO 29. Distressed vegetation observed on the subject property (dead pine tree). PHOTO 30. A view of the retaining wall on the north side of the subject property. Property Solutions Inc. Project No.:

47 PHOTO 31. A view of the retaining wall on the north side of the subject property. PHOTO 32. A view of the retaining wall on the south side of the subject property. PHOTO 33. A concrete drainage channel on the south side of the subject property. Property Solutions Inc. Project No.:

48 PHOTO 34. A typical view of an asphalt paved parking/driving area. PHOTO 35. A typical view of an asphalt paved parking/driving area. PHOTO 36. A typical view of an asphalt paved parking/driving area. Property Solutions Inc. Project No.:

49 PHOTO 37. An area of alligatored asphalt at the subject property. PHOTO 38. A patched area of asphalt at the subject property. PHOTO 39. The picnic area at the subject property. Property Solutions Inc. Project No.:

50 PHOTO 40. The mail station at the subject property. PHOTO 41. The maintenance shop at the subject property. PHOTO 42. The sign that identifies the subject property. Property Solutions Inc. Project No.:

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