Property Condition Assessment (PCA)
What is a PCA?
The standard scope of work for the Property Condition Assessment is defined by ASTM E2018 and includes a walk-through survey of the property to assess the condition of building systems, components and other property improvements, and interviews and documents review regarding the age and condition of property improvements. The Property Condition Report includes tables of the short-term capital expenses (Immediate Repairs Table) and long-term capital expenses (Replacement Reserves Table).
The cornerstone of our assessment lies in the Immediate Repairs Table and the Replacement Reserve Table, crucial components provided within the PCR. These tables offer invaluable insights for our clients, illustrating how the building’s condition directly influences its financial performance as an asset.
Property Condition Reports
Lenders, building owners, and select portfolio lenders routinely commission Property Condition Assessments (PCA), also referred to as Property Condition Reports (PCR) or Commercial Building Inspections. Monument crafts PCA Reports to adhere to the criteria set forth by rating agencies like Standard & Poor’s and in accordance with the ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. These reports cover all significant building systems and site enhancements, inclusive of a Replacement Reserve Table and an Immediate Repairs Table. The Immediate Repairs Table serves to pinpoint capital requirements by pricing failing or damaged building systems and highlighting life safety concerns.
The ASTM publishes standards governing PCA assessments, which should be thoroughly reviewed to comprehend the scope of work and report limitations.
Types of Property Condition Assessments
Monument offers several types of Property Condition Assessments (PCAs) to meet the needs of our clients. These inspections are important for clients seeking to understand the condition of real estate they may be purchasing, leasing, financing, managing, or selling.
Debt Property Condition Assessments
Learn More
At Monument, our Debt PCA process involves a meticulous examination of major structural, electrical, plumbing, and HVAC components, alongside site improvements, to gauge overall condition, compliance with codes, life-cycle costs, anticipated useful life, and identification of immediate repair needs. We conduct thorough site visits, engaging in interviews with on-site personnel, reviewing pertinent documents, and conducting comprehensive walk-through surveys to meticulously document the condition of building systems. Through our comprehensive approach, we provide clients with a holistic understanding of their property’s condition, empowering them to make informed decisions regarding financing activities.
Monument’s Debt PCA service stands as a crucial component in the financial landscape of property transactions, offering clarity and foresight into maintenance and repair costs while ensuring compliance with industry standards. With our dedicated team of professionals, clients can rest assured that their property assessments are conducted with precision and integrity, paving the way for sound financing decisions and sustainable property management practices.
Systems surveyed in a Debt PCA include:
- Site and Grounds
- Structural Systems
- Building Envelope
- Interior Building Components
- Mechanical Systems
- General regulatory compliance including Americans with Disabilities Act (ADA) and review of any outstanding building or fire code violations
Equity Property Condition Assessments
Learn More
At Monument, we recognize the critical role Equity PCAs play during the acquisition and disposition phases of commercial real estate deals. Through our thorough assessments, we pinpoint significant deferred maintenance areas and highlight potential replacements for major building components, thereby painting a comprehensive picture of the property’s condition. By identifying both short-term concerns and long-term investment implications, our reports empower clients to make informed decisions, whether they’re buying or selling. We take immense pride in our ability to not only recognize but effectively communicate risks to our clients, ensuring they possess the necessary understanding to navigate the complexities of commercial real estate transactions with confidence.
In essence, Monument’s Equity PCA service is more than just a routine assessment; it’s a strategic asset for buyers and sellers alike, providing a roadmap to navigate the intricacies of property acquisitions and dispositions while safeguarding against unforeseen risks and maximizing investment potential.
Systems surveyed in a Debt PCA include:
- Site and Grounds
- Structural Systems
- Building Envelope (Roof Assessment, Facade Assessment)
- Interior Building Components
- Mechanical Systems
- General regulatory compliance including Americans with Disabilities Act (ADA) and review of any outstanding building or fire code violations
PCA FAQS
What does a PCA include in the scope of work?
- Field Work
- Site Assessment
- Interviews
- City Building Department
- Building Systems Evaluated
- HVAC Systems
- Elevators
- Plumbing
- Data and Telephone
- Boilers
- Electrical
- Fire Suppression Systems
- Building Evaluation
- Foundation
- Structure
- Roof Diaphragm
- Interior Finishes
- Building Envelope
- Site Improvements Evaluated
- Pavement
- Drainage
- Signage
- Lighting
- ADA Access
Why is a PCA important for CRE?
How should I use the information from a PCA?
The data extracted from a PCR can empower property purchasers in negotiating repairs or purchase price adjustments, enable lenders to evaluate lending risks, assist property owners in strategizing maintenance and repairs, and aid investors in assessing the financial feasibility of an investment.
