property condition reportacceleration (pga), with 10% probability of exceedance in 50-years (a.k.a....

Engineers who understand your business

PROPERTY CONDITION REPORT

Parks at Hillside Apartments 1501 Hillside Avenue

Nashville, Tennessee 37203

May 19, 2016 Partner Project Number: 16-161774.1

Freddie Mac Seller Servicer No. 154671 Freddie Mac Loan No. TBD

Prepared for:

Freddie Mac and Berkadia Commercial Mortgage LLC

Dallas, Texas 75225

800-419-4923 www.PARTNEResi.com

May 19, 2016

Freddie Mac And Beverly Imo Berkadia Commercial Mortgage LLC 8333 Douglas Avenue, Suite 1100 Dallas, Texas 75225 Subject: Property Condition Report

Parks at Hillside Apartments 1501 Hillside Avenue Nashville, Tennessee 37203

Partner Project No. 16-161774.1 Freddie Mac Loan No. TBD

Dear Beverly Imo:

Partner Engineering and Science, Inc. (Partner) is pleased to provide the results of the property condition assessment performed on the above-referenced property. This report was performed in general conformance with the scope and limitations as set forth by ASTM E2018-15 “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process” and the Freddie Mac Engineering and Property Condition Report Requirements. The findings are detailed in the attached report.

The purpose of this assessment is to provide sufficient information to evaluate the condition of the real property in order to facilitate completion of due diligence as a secured lender. The findings of this report are intended to be used in support of securing the debt created through the prospective financing for which the subject property serves as collateral. This report may not be used for any other purpose, including, without limitation, use by owner, borrower or tenant for the purpose of evaluating specific building components and systems, or as an instrument in negotiations related to the acquisition or disposition of the property.

We appreciate the opportunity to provide these assessment services. If you have any questions concerning this report, or if we can assist you in any other matter, please contact Summer Gell at (214) 666-6800.

Sincerely,

Partner Engineering and Science, Inc.

Brandon J. Henricks Senior Author

Summer Gell Relationship Manager

Section I, Page 1 of 13 Freddie Mac Multifamily Form 1105 (03/2016)

Freddie Mac loan number Report date Property name

Seller/Servicer Name Address

Seller/Service Number Inspection Date City, State, Zip

Number of Apartment Buildings Number of Other Buildings On-site contact name On-site contact telephone number

Number of Stories Age of Buildings (in years) Weather at time of inspection (clear, rain, snow cover, etc.)

Property Condition Consultant (firm name) Inspector's Name

Address Title

City, State, Zip Telephone Number

Put an "x" in the appropriate boxes below and furnish additional information when requested

Building type Envelope Mechanicals (HVAC) Amenities (site)Garden Stucco Central boiler steam heat Club building/roomWalk-up Wood siding Hydronic system Swimming poolElevator T-111 Gas FAU, central Spa and/or sauna

Lowrise Masonite Electric FAU, central Fitness centerMidrise Planking Electric baseboard heat BarbecueHigh rise Vinyl siding Wall-mounted AC unit Tennis courts

Townhouse Brick veneer AC condenser units Playground equipmentOther Metal doors Evaporative cooler unit Storage

Wood doors Other (heat) OtherConstruction type Wood sash windows Other (AC)

Wood frame Aluminum windows MoldMetal frame Other Electrical Mold evidence observedStructural steel Unit capacity amps Areas impacted by waterMasonry Elevators Aluminum branch wiring intrusions observedStructural concrete Number of cabs Edison base/T-type fuses Defective building conditionsFlat roof Last inspection date Tamper proof fuses likely to lead to future waterPitched roof Breakers intrusions observedFlat roof with mansards Mechanicals (plumbing) GFI outlets Past/current water intrusionsFire-treated plywood Galvanized water piping Other or leaks reportedOther Copper water piping Tenant complaints reported

Polybutylene water piping InteriorFoundation type Cast iron waste Drywall walls Problem materials/equipment

Slab on grade ABS/PVC waste Plaster walls Imported drywallConcrete pier (drilled) Central water heater Wood paneling OtherSpread, raised foundation Gas CarpetingUnderground parking structure Electric Wood flooring Life/Safety devicesOther Individual water heaters Ceramic floor tile Smoke detectors

Gas Vinyl flooring Carbon monoxide detectorsParking Electric Wood doors Fire extinguishers

Surface (uncovered) Circulating hot water Metal doors Emergency lightingStructured Other Spray-tex ceiling Emergency escapes

Carports Smooth ceiling Pull stations/cordsGarages Orange peel/textured Fire alarmUnderground Other Sprinklers

Vinyl windows100


Building and Material Characteristics

Marty Quinn

Project Assessor

(800) 419-4923Torrance, California 90501

47

Property Condition Assessment

Section I: Summary

Mortgage, Consultant and Property Information

154671 May 11, 2016

TBD May 19, 2016 Parks at Hillside Apartments

Nashville, TN, 37203

03/2016

42 3

Berkadia Commercial Mortgage LLC

2 and 3

1501 Hillside Avenue

(615) 244-7121Michael Maroon

Laundry

Clear

2154 Torrance Boulevard


Totals:

Table 2 Table 3

1311 V17 2BR 1325 O 18 1BR 1430 O 19 3BR 1460 O 20 1BR 1482 O13 2BR 1359 V 14 2BR 1355 V 15

2BR1447 V 8

2BR 1342 O 16 2BR2BR 1383 V 12 2BR9 2BR 1405 O 10 2BR 1415 O 11

1641 O2 3BR 1681 O1425 O1363 O

6 1BR 1624 O 7 2BR

Indicate the type of unit, using the following abbreviations: 0BR, 1BR, 2BR, 3BR, 4BR, 5BR. Give the unit number and status, using the following status codes: O = occupied, V = vacant, D = down and R = Other. (For example, an occupied one-bedroom unit numbered 101 should be listed as 1BR/101/O.)

1 3BR O16835 2BR 1621 O

43 3BR 1651 O 3BR

Unit MixComplete Table 1 for residential units only . Commercial units, both spaces that are purpose-built and dwelling units converted to commercial use will be accounted for in Table 2. If "Other" dwelling units have been indicated, Table 3 will need to be completed as indicated.

Table 1 - below, indicate the unit type and occupancy at the time of the visit and the number of units inspected of each type

Unit Type Number of units Number of units inspectedBR BA Style Occupied Vacant Down Other Occupied Vacant Down Other

Detail of Commercial Units * Detail of "Other" noted aboveOccupied Vacant Down Total Total units

1 1 Garden or Flat 34 1 3

268 21 0

Other

Maintenance shopTotal residential units 290 Storage

Total commercial units/spaces 0 Hospitality suite

Management officeNumber of converted residential units Model

Number of purpose-built spaces

12 1 Townhome 53 3 2 32 1 Garden or Flat 45 4 1 3 3

3 1 Garden or Flat 34 6 52 1 Garden or Flat 79 5 5 5

21 2BR 1412 O 22 2BR 1420 V 23 2BR 1336 D 24 2BR 1330 O

3 2 Garden or Flat 23 2

2BR 1250 V 26 2BR 1226 V 27

119 11 1

Unit Inspection Information

0

Total ALL units 290

1 0

0

2BR 1236 V 28 2BR 1414 V29 2BR 1350 V 30 2BR 1214 O 31 2BR 1242 O 3225


The consultant must attach a narrative describing the scope of work, including the following information:

On behalf of the property condition consultant, the undersigned hereby certifies that:

Consulting firm name

Signature of authorized representative Date

Name (typed or printed) Title

Life/safety issues, deferred maintenance, and all repairs and replacements recommended, including costs

Seismic ChecklistIndicate if any of the following are applicable by placing an "x" in the appropriate box for properties located in an area with a horizontal Peak Ground Acceleration (PGA), with 10% probability of exceedance in 50-years (a.k.a. 475-year return period earthquake), equal to or greater than 0.15g.

There are buildings located within 50 feet of a known fault or, if located in California, within an Alquist-Priolo Special Study Zone

Scope of Work

Buildings with light-frame construction over a concrete podium structure constructed prior to 1994

Brandon J. Henricks

Number of buildings inspected (including addresses)Description of major building components and the condition of eachInspections and certifications by local authorities for any building component (e.g., elevator, boiler, fire extinguisher, etc.)Planned capital improvements and work in progress, including an analysis of costs

Building Science Technical Team Lead

•

•

• •

May 19, 2016

•

Consultant's Certification

•

Problematic materials, equipment and systems

The consultant should provide additional information that is useful in describing the property to give a better understanding of repairs or replacement reserves necessary. SEE SECTION V FOR DESCRIPTIONS OF REPAIR CATEGORIES TO BE USED IN THE CONSULTANT'S DESCRIPTION OF THE SCOPE OF WORK.

Resume of the on-site inspector

•

•

The attached property condition report was prepared by the consultant in accordance with all applicable requirements in the Freddie Mac Multifamily Seller/Servicer Guide

• No changes or additions have been made to the standard provisions of this form other than those expressly approved in writing by Freddie Mac

The report was prepared in a manner consistent with generally accepted industry practices and standards


Water intrusion or mold issues

•

•

• • •

Readily identifiable issues related to non-compliance with applicable codes

Description of records researched and information obtained to determine the condition of all systems (boiler, pool, elevator inspections, certificates, safety items and other information obtained and used as part of the property condition assessment)

Open violations as issued by local authorities, including a cost to cure

All information is true and correct, to the best of the undersigned's knowledge, and reflects the consultant's best professional opinion and judgment

•

•

•

Photographs adequate to convey the property conditionSite planA list of all parties present during the inspection

• Replacement reserves, and the methodology used to estimate replacement reserves

•

Wood-framed buildings that exhibit conspicuous physical deterioration (e.g., water damage, dry rot, corrosion, physical distress) to the primary lateral load resisting elements

Retrofitted unreinforced masonry (URM) buildings with retrofit work performed prior to 1995 (non-retrofitted URM buildings will not be considered)

Wood-framed buildings constructed prior to 1950Non-retrofitted wood-framed structures, constructed prior to 2000, with ground-level parking under dwelling units (tuck- under parking)

Reinforced concrete buildings constructed prior to 1994, including cast-in-place and precast structuresReinforced concrete masonry bearing wall buildings constructed prior to 1994

Buildings with a weak or soft story (as defined by the International Building Code) at any floor levelBuildings constructed with direct contact to adjacent buildings, including buildings that are part of the same Property, as well as those in contact with buildings on a separate property (this does not include buildings that are a continuous structure with fire separation walls)Buildings that have sustained previous structural earthquake damage with documented evidence of damage and repairsHigh-rise buildings (8-stories or greater above grade)

Section II, Page 4 of 13 Freddie Mac Multifamily Form 1105 (11/2015)


Seller/Servicer name Address

Seller/Servicer number Inspection date City, State, Zip

Estimated Condition Remaining Action (CR, PR,Item Useful Life (E, G, A, F, P) Useful Life PR-90, OR, RR)

Other OtherLeasing office - ADA PR PR: ADA modificationsRecreation/Play area and equipment 20 G 17Sauna Pool and/or spa deck surface Pool and/or spa filtration equipment Pool and/or spa heating equipment Pool and/or spa plaster/linerSwimming pool and/or spaTennis courtsSite fences 50 G 21 PR PR: Repair damaged fencingIrrigationLandscaping 20 G 15 Site drainage (storm drainage) 50 G 21 Site lighting 25 G 14 Site sanitary lines 50 G 21 Site water lines 40 G 16Site Utilities

Signage 15 G 1-15 Routine maintenance; limited / low cost repairs and replacements anticipated

Pedestrian paving/hardscape 30 G 14 PR PR: Repair eroded areas of flatwork

Striping 5 G 0 Included in seal coat

Interior gutter (swale) Curb and gutter 30 G 16

Concrete pavingOther paving:

Seal coat 5 G 0 RR RR: Seal coat

Asphaltic concrete 20 G 14 PR PR: Seal coat, striping, crack sealing, and localized repairs

Roadways/Parking lotsTrash enclosuresMaintenance structures 20 G 14Garages

SiteComplete the estimated useful life, condition, remaining useful life, action and comments for the applicable items listed below. Indicate the condition using the following abbreviations: E = excellent, G = good, A = average, F = fair and P = poor. Indicate the action required using the following abbreviations: CR = Critical Repairs; PR = Priority Repairs; PR90 = 90 day Priority Repairs; OR = Operational Repairs and RR = reserve for future repair/replacement. See Section V for a complete description of each repair category. The consultant should attach additional information as needed. The consultant must also note any Mold observations on any component in the comment sections.

Comments/Mold ObservationsCarports

Berkadia Commercial Mortgage LLC 1501 Hillside Avenue

154671 May 11, 2016 Nashville, TN, 37203


Section II: Property Inspection and Evaluation







154671 May 11, 2016 Nashville, TN, 37203


Structural, building envelope and common area furniture, fixtures and equipment


Other Other Other Other Other Community clothes dryers Community washing machines Community facilities appliances Community facilities kitchen

Common area floor 10 G 8 RR RR: Replace common area flooringCommon area improvements

Building mounted lighting 15 G 1-15 Routine maintenance; limited / low cost repairs and replacements anticipated

Roof drainage (gutters, drains, etc.) 25 G 16-22 PR PR: Repair/replace damaged gutter and downspouts

Roof coverings 25 G 16-22Unit fencing (patio fencing)Patio slabsDecksBalconies/Handrails/Guardrails 30 G 16Fire escapesStairs 25 G 16Windows and frames 30 G 15Doors and frames 30 G 16Exterior walls (paint/finish) 8 G 6 RR RR: Exterior maintenance/paintingExterior walls/roof (structural) 50 G 31Building slab (structural) 50 G 31Foundation (waterproofing) 20 G 15

Complete the estimated useful life, condition, remaining useful life, action and comments for the applicable items listed below. Indicate the condition using the following abbreviations: E = excellent, G = good, A = average, F = fair and P = poor. Indicate the action required using the following abbreviations: CR = Critical Repairs; PR = Priority Repairs; PR90 = 90 day Priority Repairs; OR = Operational Repairs and RR = reserve for future repair/replacement. See Section V for a complete description of each repair category. The consultant should attach additional information as needed. The consultant must also note any Mold observations on any component in the comment sections.

Comments/Mold ObservationsFoundation (structural) 50 G 31






154671 May 11, 2016 Nashville, TN, 37203


Mechanical and electrical


Other Other Other Other OtherSecurityElevatorsFire suppression Buzzer/Intercom (security)

Smoke and fire detection 15 G 1-15 Routine maintenance; limited / low cost repairs and replacements anticipated

Emergency lighting/Generator 10 G 1-10 Routine maintenance; limited / low cost repairs and replacements anticipated

Switchgear/Metering 40 G 20 Building power/Wiring 60 G 35Electrical

RR: Replace condensersHeating system (fan coil unit)

Sanitary waste and vent (sewer) 25 G 14

Cooling system (condensers) 15 G 1-15 RRRR: Replace fan coil unit25 G 1-25 RR

Mechanical/HVAC

Domestic water boilers Domestic water boiler peripherals Domestic water heaters 15 G 1-15 RR RR: Replace water heaters Domestic water pumps


Comments/Mold Observations Mechanical/Plumbing Hot and cold water distribution 50 G 25






154671 May 11, 2016 Nashville, TN, 37203


Dwelling units


OtherDown unit 1336 PR PR: Return to rentable condition Accessories 25 G 13

Toilet 25 G 13 Bathroom improvements

Tub/Shower and enclosures 25 G 14

Clothes dryer Clothes washer Microwave Disposal Dishwasher 15 G 1-15 RR RR: Replace dishwasher

Range vent 15 G 1-15 Routine maintenance; limited / low cost repairs and replacements anticipated

Range/Stove 20 G 1-20 RR RR: Replace range/stove Refrigerator 15 G 1-15 RR RR: Replace refrigerator Appliances Other Bathrooms 25 G 13 Kitchen 25 G 14 Countertops and sinks Other Bathrooms 25 G 13 Kitchen 25 G 14 Cabinetry Other Resilient flooring (vinyl) 15 G 1-15 RR RR: Replace vinyl Carpet 8 G 1-8 RR RR: Replace carpet Flooring

Window coverings 20 G 1-20 Routine maintenance; limited / low cost repairs and replacements anticipated

Buzzer/Intercom (security)

Smoke/fire detection 15 G 1-15 Routine maintenance; limited / low cost repairs and replacements anticipated

Patio Doors


Comments/Mold ObservationsUnit entry door(s) and frame(s) 30 G 16

Section III, Page 8 of 13 Freddie Mac Multifamily Form 1105 (03/2016)




Were any Critical or Priority Repairs identified? Yes NoIdentify the area of the property where repairs needs were identified:

SiteStructural, building envelope and common area furniture, fixtures and equipmentMechanical and electricalDwelling units

Were any Operational Repairs identified? Yes No

Site

Asphalt pavement PR SF 122700.00 $0.15 $18,405.00 Seal coat, striping, crack sealing, and localized repairs

PR LS 1.00 $2,500.00 $2,500.00 Return down unit to rentable condition

Total Costs Comments

$28,755.00Subtotal

Roof drainage PR LS

Leasing office - ADA PR LS 1.00 $350.00 $350.00 Add van-accessible parking space and add lever-style hardware to the restroom door

Site Fencing damage PR LS 1.00 $2,000.00 $2,000.00 Repair/replace damaged fencing

Erosion and concrete flatwork/stairs

Units 1214, 1414, 1683 (plumbing leaks) and Units 1214, 1242, Leasing office, Bldg 1370-1388 and Youth Life Learning Center (suspect microbial growth)

Plumbing leaks and suspect microbial growth

PR LS 1.00 $1,500.00 $1,500.00Item

RepairType

Unit of Measure Quantity

Per ItemCosts

Structural, Building Envelope and Common Area Furniture, Fixtures and Equipment

PR EA 40.00 $200.00 $8,000.00 Repair the eroded sidewalks and stairs, and repair concrete flatwork as needed


Section III: Repairs and Cost Estimates


Per ItemCosts



154671 May 11, 2016 Nashville, TN, 37203Repairs Identification

Critical and Priority Repairs

ItemRepairType


1.00 $3,500.00 $3,500.00 Repair/replace damaged/missing downspouts throughout, repair/replace damaged gutter system for the Yound Life Learning Center

ItemRepairType


Per ItemCosts

Subtotal $3,500.00

Total $36,255.00

Subtotal $4,000.00


Dwelling Units

Down Unit 1336

Section IV, Page 9 of 13 Freddie Mac Multifamily Form 1105 (11/2015)

Freddie Mac loan number Report date Property name Building age

Seller/Servicer name Address Mortgage term

Seller/Servicer number Inspection date City, State, Zip Number of units

Complete the quantity, unit and per item costs for the applicable items listed below. Indicate the projected expenditures for those items in each year of the loan term plus two years up to a maximum of 12 years.

SITE

+210

Carports

Per Item Cost Year 6

$0.08


Year 10

290

Total

TBD

Maintenance structures

Section IV: Capital Needs Over the Loan Term

47

Year 7 Year 8 Year 9Year 4 Year 5Quantity

Roadways/Parking lots

May 19, 2016

May 11, 2016

Parks at Hillside Apartments



Year 2 Year 3 Year 11

154671


Item Year 1

Trash enclosures

Garages

Curb and gutter Striping

$9,816 Concrete paving

245,400 SF Asphaltic concrete Seal coat

Other paving:

Interior gutter (swale)Pedestrian paving/hardscape

Site Utilities Site water lines Site sanitary lines

Signage

Site lighting Site drainage (storm drainage)

Site fencesTennis courtsSwimming pool and/or spa

LandscapingIrrigation

Pool and/or spa plaster/liner Pool and/or spa heating equipment

Pool and/or spa deck surface Pool and/or spa filtration equipment

Sauna

Leasing office - ADARecreation/Play area and equipment

Other Other

$9,816 $19,632.00

Year 12Unit of Measure





+210

290

TBD 47May 19, 2016

May 11, 2016





STRUCTURAL, BUILDING ENVELOPE AND COMMON AREA FURNITURE, FIXTURES AND EQUIPMENT

Year 2Item Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

Foundation (structural)

Year 1

$87,000

Foundation (waterproofing)

Exterior walls (paint/finish)

Building slab (structural)Exterior walls/roof (structural)

$300.00Doors and frames

StairsFire escapesBalconies/Handrails/Guardrails

Windows and frames

Common area floor

Building mounted lightingCommon area improvements

Decks

Roof coveringsUnit fencing (patio fencing)Patio slabs

Roof drainage (gutters, drains, etc.)

$1.35

Other

Community facilities appliances

Other

Community facilities kitchen$4,725

Community clothes dryers Other

Community washing machines

Other

Other

Year 10 Year 11

$4,725.00

$87,000.00

TotalYear 12Per Item Cost

290 Unit

3,500

Quantity Unit of Measure

SF





+210

290

TBD 47May 19, 2016

May 11, 2016





MECHANICAL AND ELECTRICAL

$225.00

Year 4 Year 7Year 6Item Year 9

Hot and cold water distribution

$4,275 $4,275

Unit of Measure Per Item Cost Year 5Year 1 Year 8Year 2 Year 3

Domestic water boilers

Mechanical/Plumbing

Domestic water heaters $4,275 $4,275 $4,275 Domestic water boiler peripherals

Sanitary waste and vent (sewer)

228 EA(condensers)144 $7,800

$8,075$7,800 $7,800$650.00

$425.00 $8,075Heating system (fan coil unit)

Domestic water pumps

$8,075

Mechanical/HVAC

Cooling system

$4,275 $4,275

$8,075 $8,075

$4,275

$7,800

$4,275

$8,075$7,800 $7,800 $7,800 $7,800 $7,800

$8,075 $8,075 $8,075

228

Electrical Building power/Wiring Switchgear/Metering Emergency lighting/Generator Smoke and fire detection Buzzer/Intercom (security)

ElevatorsSecurity

Fire suppression

Other

Other

Other Other

Other

$7,800$8,075

$4,275

$7,800

Year 11Year 10 Total

$4,275

$8,075$7,800 $93,600.00

$4,275

Year 12

$96,900.00

$51,300.00

$8,075

EA

EA

Quantity





+210

290

TBD 47May 19, 2016

May 11, 2016





DWELLING UNITS

Total expenditures (uninflated) Total expenditures per unit per year (uninflated)Total expenditures (inflated) Total expenditures per unit per year (inflated)

$239.33$282.71

Year 7Year 5Year 4Unit of Measure Per Item Cost Year 8Year 1 Year 2 Year 3 Year 6Item Quantity

Unit entry door(s) and frame(s) Patio DoorsSmoke/fire detectionBuzzer/Intercom (security)

Year 9

Window coverings Flooring

$650.00$150.00

$23,400$2,850 $2,850 $2,850228 UNIT

$23,400$2,850 $2,850 $2,850 $2,850

$23,400$2,850 $2,850

$23,400 $23,400 Resilient flooring (vinyl)

$23,400 Carpet $23,400 $23,400 $23,400432 UNIT

Other Cabinetry

Bathrooms Kitchen

Kitchen

$3,750 $3,750 $3,750$6,175

$3,750 $3,750$6,175 $6,175 $6,175

Other Countertops and sinks

Other

EA$3,750

Appliances

Bathrooms

$3,800 Dishwasher $3,800 $3,800 $3,800228 EA $200.00

Range/Stove$6,175

$3,800 $3,800 $3,800

$6,175$3,750

$325.00$250.00

Refrigerator $6,175 $6,175 $6,175228$3,750 $3,750180 EA

Range vent

Clothes washer Microwave

Down unit 1336

Bathroom improvements Toilet

Total inflatedInflation factor @ 3%

$78,719.21

$64,850.00

$71,792.39112.55%

$69,941.00122.99%119.41%

$60,125.00

TOTALS Year 1$60,125.00103.00%

Total (uninflated)Year 2 Year 4

Tub/Shower and enclosures

126.68%$79,757.32

$60,125.00109.27%

$65,700.21

$147,125.00115.93%

$170,558.20

$3,800 $3,800

Accessories

Clothes dryer

Disposal

$2,850

$63,786.61 $91,257.14$76,164.55

$832,857.00$983,819.42

$60,125.00 $61,928.75

$60,125.00106.09%

$60,125.00100.00%

Other

$3,800

Year 10

$6,175$3,750

$23,400

$6,175$3,750

$6,175

$23,400$2,850

Year 11

$3,800

$23,400$2,850

Year 12

$74,100.00

$3,800

$3,750

Total

$34,200.00

Year 12Year 10

$45,000.00

Year 8 Year 9

$280,800.00

$45,600.00

130.48%

Year 11Year 3 Year 7Year 6Year 5

138.42%$83,227.06$80,802.97

$60,125.00 $60,125.00$60,125.00$69,941.00134.39%

of 13 Freddie Mac Multifamily Form 1105 (03/2016)

Critical Repairs

PR-90 Repairs

Priority Repairs

Operational Repairs

These are repairs and replacements that are significant and must be addressed as soon as possible. Priority Repairs consist of:

• All non-imminent life safety hazards •


Section V: Repair Categories

Repair Categories

These are corrective actions that must be completed within 90 days, and are limited to:

• Imminent life safety hazards • Ongoing substantive damage to the property

Only Critical Repairs, PR-90 Repairs, Priority Repairs and Operational Repairs should be noted on Form 1105. No other repair items should be listed.

These are repairs and replacements that significantly impact habitability, value, income or marketability and that must be corrected before Freddie Mac will proceed with the transaction.

* Additional guidance can be found in Section 14.3(b) of the Freddie Mac Multifamily Seller/Servicer Guide

Violations of any federal, State or local law, ordinance or code relating to zoning, subdivision and use, building and housing accessibility (including the Americans with Disabilities and Fair Housing Acts), health matters or fire safety

• Material deficiencies * •

• Minor deferred maintenance * • Handicap Accessibility Enhancements *

Minor deficiencies *

Significant deferred maintenance ** Additional guidance can be found in Section 14.3(b) of the Freddie Mac Multifamily Seller/Servicer Guide

•

These are repairs and replacements that consist of Minor Deficiencies, Minor Deferred Maintenance and Handicap Accessibility Enhancements that are expected to be completed by the Borrower as part of a repairs and maintenance budget and that cannot be reasonably resolved by Routine Maintenance. Operational Repairs consist of:

Property Condition Report Project No. 16-161774.1 May 19, 2016 Page i

EXECUTIVE SUMMARY AND PROPERTY DESCRIPTION

Executive Summary

Partner Engineering and Science, Inc. (Partner) has prepared a property condition report (PCR) on the parcel and improvements defined in the following table (the “subject property”). The observation was performed in general accordance with ASTM E2018-15 “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process” and the Freddie Mac Engineering and Property Condition Report Requirements. The purpose of this assessment was to observe and document readily-visible materials and building system defects that might significantly affect the value of the property, and determine if conditions exist which may have a significant impact on the continued operation of the facility during the evaluation period.

Property Data Name Parks at Hillside Apartments Address 1501 Hillside Avenue City, State and Zip Code Nashville, Tennessee 37203 Property use Multi-family residential Land acreage (acres) 20.83 Number of apartment buildings

42

Number of floors Two and three Number of other buildings Three Year built 1969 Number of residential units 290 Number of commercial tenant spaces

None

Foundation / Substructure Concrete perimeter footings and interior concrete pier supports under load bearing wood joists

Superstructure Concrete masonry unit (CMU) load bearing walls and Wood-framing.

Façade Painted brick and masonry Roof type Flat, thermoplastic membrane and asphalt shingles mansard roof Parking area Asphalt pavement Parking space count 409 ADA-designated parking count 6 ADA-designated spaces HVAC system Individual split system units Water supply piping Copper Electrical branch wiring Copper Number of elevators Not provided Fire suppression Not provided Fire alarm Not provided PGA, 10% in 50 years exceedance probability

0.04763 g

Property Condition Report Project No. 16-161774.1 May 19, 2016 Page ii

The apartment unit mix as reported by the property manager is as follows:

Type Qty Avg Area (SF)

Total

(SF)

Vacant Units

Down Units

1 Bed / 1 Bath 35 635 22,225 1 0

2 Bed / 1 Bath 50 705 35,250 4 1

2 Bed/1 Bath 56 765 42,840 3 0

2 Bed/1 Bath 84 817 68,628 5 0

3 Bed/1 Bath 40 835 33,400 6 0

3 Bed/2 Bath 25 1,010 25,250 2 0

Total 290 227,593 21 1

Overall Condition

The subject property appears to be in good condition for its age and usage.

Reported Planned or Recent Capital Expenditures

According to property management, the following capital improvements were completed within the last three years:

• Plumbing lines to Buildings 800- 1626 replaced in 2015 ($81,000) • Building exteriors painted 2014 ($118,000) • Roofs replaced 2013 (cost not provided) • Electrical replaced in down unit 1336 2015 ($12,335.73) • Exterior building lamps replaced/repaired in 2015 ($4,976.84) • Windows replaced in various buildings 2016 $3,018.67)

According to property management, the following capital improvements are proposed to be completed within the next three years:

• Seal coat & stripe asphalt

Capital improvements were not in-progress during the site survey.

Critical Repairs

Critical repairs are defined as “repairs and replacements that significantly impact habitability, value, income or marketability and that must be corrected before Freddie Mac will proceed with the transaction.” Items or conditions that meet one or more of these conditions, and a corresponding opinion of cost, are listed on Form 1105, Section III: Repairs and Cost Estimates.

Priority – 90 Repairs

Priority – 90 repairs are defined as “corrective actions that must be completed within 90 days.” This definition includes imminent life safety hazards and on-going substantive damage to the property. Items

Property Condition Report Project No. 16-161774.1 May 19, 2016 Page iii

or conditions that meet one or more of these conditions, and a corresponding opinion of cost, are listed on Form 1105, Section III: Repairs and Cost Estimates.

Priority Repairs

Priority repairs are defined as “repairs and replacements that are significant and must be addressed as soon as possible.” This definition includes non-imminent life safety hazards, code violations, material deficiencies and significant deferred maintenance items. Items or conditions that meet one or more of these conditions, and a corresponding opinion of cost, are listed on Form 1105, Section III: Repairs and Cost Estimates.

Operational Repairs

Operational repairs are defined as “repairs or replacements that consist of minor deficiencies and minor deferred maintenance that are expected to be completed by the Borrower as part of a repairs and maintenance budget and that cannot be reasonably addressed by routine maintenance.” Items or conditions that meet one or more of these conditions are listed on Form 1105, Section III: Repairs and Cost Estimates.

Replacement Reserve Items

Replacement reserve items are defined as significant capital expenditures, replacements or repairs that are anticipated to occur within the loan term plus two years. Items included in the replacement reserve table are determined based upon the estimated useful life (EUL) of a system or component, the effective age (EA) of the system, and the remaining useful life (RUL) of that system. All other building systems and appurtenances are expected to exceed the evaluation period or are a tenant responsibility to maintain and replace.

Routine Repairs and Maintenance

Routine Repairs and Maintenance are defined as “repairs and maintenance that are expected to be completed by the Borrower in the normal course of business and are nominal in cost”. These repairs are: preventative in nature; accomplished within the Property’s normal operating budget; typically completed by on-site staff; focused on keeping the subject property fully functioning and serviceable; have a cost of $3000 or less per repair item

Additional remedial work is anticipated to be limited in extent and may be characterized as that typically associated with general maintenance and repair when undertaken on a routine periodic basis and/or as part of the normal operational cost of the subject property.

Deviation from ASTM E2018

The deviations listed below are part of the Partner standard operating procedures or were specified in the Client’s scope of work.

• This report includes seismic zone information that is required by Freddie Mac. • This report includes an opinion of costs for anticipated capital expenditures for an evaluation

period defined by the Addressee. • This report includes an evaluation of the condition of the observed components and systems.

Property Condition Report Project No. 16-161774.1 May 19, 2016

TABLE OF CONTENTS 1.0 INTRODUCTION ............................................................................................................................... 1

1.1 Purpose ................................................................................................................................................................................ 1 1.2 Scope of Work ................................................................................................................................................................... 1 1.3 Cost Evaluation Methodology .................................................................................................................................... 1 1.4 Descriptive Qualifiers ...................................................................................................................................................... 2 1.5 User Reliance ..................................................................................................................................................................... 2

2.0 RECONNAISSANCE, REGULATORY AND DOCUMENT REVIEW .................................................... 3 2.1 Site Reconnaissance ........................................................................................................................................................ 3 2.2 Property Personnel Interviewed/Contacted .......................................................................................................... 3 2.3 Regulatory Compliance Inquiry .................................................................................................................................. 3 2.4 Document Review ............................................................................................................................................................ 4

3.0 PROPERTY CHARACTERISTICS ....................................................................................................... 5 3.1 Parcel Configuration ....................................................................................................................................................... 5 3.2 Site Improvements .......................................................................................................................................................... 5

3.2.1 Vehicular Access, Paving .......................................................................................................................................... 5 3.2.2 Walkways, Grade-Level Steps and Ramps......................................................................................................... 5 3.2.3 Site and Building Signage........................................................................................................................................ 6 3.2.4 Exterior Lights ............................................................................................................................................................... 6 3.2.5 Topography and Stormwater Drainage ............................................................................................................. 6 3.2.6 Landscaping and Irrigation ..................................................................................................................................... 7 3.2.7 Retaining Walls ............................................................................................................................................................ 7 3.2.8 Perimeter Walls, Gates and Fences ...................................................................................................................... 7 3.2.9 Site Amenities ............................................................................................................................................................... 7 3.2.10 Special Utility Systems .............................................................................................................................................. 7

4.0 STRUCTURAL FRAME AND BUILDING ENVELOPE ........................................................................ 8 4.1 Foundation/Substructure .............................................................................................................................................. 8 4.2 Building Frame .................................................................................................................................................................. 8 4.3 Facades or Curtain Walls ............................................................................................................................................... 8

4.3.1 Exterior Walls ................................................................................................................................................................ 8 4.3.2 Windows ......................................................................................................................................................................... 9 4.3.3 Doors................................................................................................................................................................................ 9 4.3.4 Parapets .......................................................................................................................................................................... 9

4.4 Fire Escapes, Stairs or Balconies ................................................................................................................................. 9 4.5 Roof ....................................................................................................................................................................................... 9

4.5.1 Roofing Materials ........................................................................................................................................................ 9 4.5.2 Roof Drainage ........................................................................................................................................................... 10

5.0 MECHANICAL AND ELECTRICAL SYSTEMS .................................................................................. 11 5.1 Plumbing and Sewer Systems .................................................................................................................................. 11 5.2 Domestic Hot Water .................................................................................................................................................... 11 5.3 Heating, Air Conditioning, and Ventilation ......................................................................................................... 11 5.4 Electrical ............................................................................................................................................................................ 12

Property Condition Report Project No. 16-161774.1 May 19, 2016

5.5 Elevators ........................................................................................................................................................................... 12 5.6 Life Safety and Fire Protection ................................................................................................................................. 12

5.6.1 Fire Suppression Systems ..................................................................................................................................... 12 5.6.2 Alarm Systems ........................................................................................................................................................... 12 5.6.3 Other Systems ........................................................................................................................................................... 13

6.0 INTERIOR ELEMENTS ..................................................................................................................... 14 6.1 Commercial Tenant Spaces ....................................................................................................................................... 14 6.2 Common Areas .............................................................................................................................................................. 14 6.3 Residential Spaces ........................................................................................................................................................ 14

6.3.1 Observed Units ......................................................................................................................................................... 14 6.3.2 Unit Interiors .............................................................................................................................................................. 14 6.3.3 Cabinetry and Fixtures ........................................................................................................................................... 15 6.3.4 Appliances ................................................................................................................................................................... 15

7.0 Accessibility .................................................................................................................................... 16 7.1 Americans with Disabilities Act ................................................................................................................................ 16 7.2 Fair Housing Amendments Act ................................................................................................................................ 16

8.0 MOISTURE AND MICROBIAL GROWTH AND PEST MANAGEMENT ....................................... 17 8.1 Moisture and Microbial Growth .............................................................................................................................. 17 8.2 Pest Management ......................................................................................................................................................... 17

9.0 NATURAL HAZARD INFORMATION ............................................................................................. 18 9.1 Flood Zone ....................................................................................................................................................................... 18 9.2 Peak Ground Acceleration (PGA) ............................................................................................................................ 18 9.3 Wind Zone ....................................................................................................................................................................... 18

10.0 OUT OF SCOPE CONSIDERATIONS ............................................................................................... 19 11.0 LIMITATIONS ................................................................................................................................. 21 FIGURES AND APPENDICES

The following report Figures and Appendices are attached at the end of this report.

Figures Figure 1: Site Location Map

Figure 2: Site Plan

Appendices Appendix A: Site Photographs

Appendix B: Supporting Documentation

Appendix C: Qualifications

Property Condition Report Project No. 16-161774.1 May 19, 2016 Page 1

1.0 INTRODUCTION

1.1 Purpose

The purpose of this report is to assist Freddie Mac and the Addressee in evaluation of the physical aspects of the subject property and how its condition may affect their financial decisions over time.

This report is intended to be utilized by lenders for evaluating the general overall physical condition of the subject property for the purposes of securing the debt created through the financing of the subject property. It is not intended to be used by an owner or borrower, or any other party for the purpose of evaluating specific building components and systems, nor is it intended to be used as an instrument in the purchase negotiations related to the acquisition of real property. The scope and purpose of such a report differs significantly, and may be considerably more detailed and tailored to the specific requirements of the client. This report was not prepared to the level of detail typically ascribed to engineering reports in the marketplace for real estate acquisitions.

1.2 Scope of Work

This assessment was performed in general conformance with the scope and limitations as set forth by ASTM E2018-15 “Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process” (the Standard) and as specified in the Freddie Mac Engineering and Property Condition Report Requirements. Specific requirements or deviations from the minimum ASTM standard are described herein.

This assessment was performed utilizing methods and procedures consistent with good commercial or customary practices designed to conform to acceptable industry standards. The independent conclusions represent Partner’s best professional judgment based upon existing conditions and the information and data available to us during the course of this assignment.

1.3 Cost Evaluation Methodology

Opinions of costs presented within this report are based on construction costs developed by construction resources such as Marshall & Swift, RS Means, Partner’s experience with past costs for similar projects, city cost indexes, consultations with local specialty contractors, client-provided information, and assumptions regarding future economic conditions. Actual cost estimates are determined by many factors including but not limited to: choice and availability of materials, choice and availability of a qualified contractor, regional climate zone, quality of existing materials, site compatibility, and access to the subject property and buildings. In addition, opinions of costs are based solely on material replacement and do not account for soft costs.

Items included in the replacement reserve table are determined based upon the estimated useful life (EUL) of a system or component, the apparent effective age (EA) of the system, and the remaining useful life (RUL) of that system. Factors that may affect the age and condition of a system include, but are not limited to, the frequency of use, exposure to environmental elements, quality of construction and installation, and amount of maintenance provided. Based on these factors, a system may have an effective age that is greater or less than its actual chronological age.


1.4 Descriptive Qualifiers

The following definitions and terminology are used in this report regarding the physical condition of the project, and the estimated life expectancies/age of the components and systems.

Good In working condition and does not require immediate or short term repairs above an agreed threshold.

Fair In working condition, but may require immediate or short term repairs above an agreed threshold.

Poor Not in working condition or requires immediate or short term repairs substantially above an agreed threshold.

The agreed threshold is presumed to be the de minimis reporting threshold, unless otherwise specified in this report.

Unless stated otherwise in this report, the systems reviewed are considered to be in good condition and their performance appears to be satisfactory.

1.5 User Reliance

This report is for the use and benefit of, and may be relied upon by

a) the Seller/Servicer, Freddie Mac and any successors and assigns (“Lender”);

b) independent auditors, accountants, attorneys and other professionals acting on behalf of Lender;

c) governmental agencies having regulatory authority over Lender;

d) designated persons pursuant to an order or legal process of any court or governmental agency;

e) prospective purchasers of the Mortgage; and

f) with respect to any debt (or portion thereof) and/or securities secured, directly or indirectly, by the Property which is the subject of this report, the following parties and their respective successors and assigns:

• any placement agent or broker/dealer and any of their respective affiliates, agents and advisors;

• any initial purchaser or subsequent holder of such debt and/or securities;

• any Servicer or other agent acting on behalf of the holders of such debt and/or securities;

• any indenture trustee;

• any rating agency; and

• any institutional provider from time to time of any liquidity facility or credit support for such financings.

In addition, this report, or a reference to this report, may be included or quoted in any offering circular, information circular, offering memorandum, registration statement, private placement memorandum, prospectus or sales brochure (in either electronic or hard copy format) in connection with a securitization or transaction involving such debt (or portion thereof) and/or securities.


2.0 RECONNAISSANCE, REGULATORY AND DOCUMENT REVIEW

2.1 Site Reconnaissance

Date: May 11, 2106 Weather: 82 Degrees F, clear Field Assessor: Marty Quinn Escort: Michael Maroon, 615-244-7121

Limiting Conditions

The performance of this assessment was limited by the following conditions:

• The escort has been associated with the subject property for three years and was cooperative during the property observations. Mr. Maroon appeared to be knowledgeable about the subject property history and maintenance practices.

• Roofs are two to three stories in height, not safely accessible, and with the exception of a few roofs.

2.2 Property Personnel Interviewed/Contacted

In addition to the above-referenced escort, the following personnel associated with the subject property were interviewed as part of the preparation of this report. Information obtained from the interviews is incorporated into the appropriate Sections of this report.

Individual Position or Title Contact Number/Email Mr. Michael Maroon Maintenance Supervisor (615) 244-7121 Ms. Tabetha Vance Property Manager (615) 244-7121

The persons interviewed were cooperative and appeared to be knowledgeable about the subject property history and maintenance practices.

2.3 Regulatory Compliance Inquiry

Building Codes Metropolitan Government of Davidson County (MGNDC) Codes Administration

Contact: Ms. Barbara Sloss Telephone: 615-862-6522 Findings: No Violations Violations Awaiting response

No violations reported. Inspections are completed during the construction process. Additional inspections are not performed.

Fire or Life Safety MGNDC Fire Department Contact: Mr. Brandon Williams Telephone: 615-862-6590 Findings: No Violations Violations Awaiting response

As of the date of this report, Partner has not received a response from the MGNDV Fire Department.


Zoning MGNDC Planning Department Contact: Ms. Donna Liles Telephone: 615-862-6590 Findings: No Violations Violations Awaiting response

No violations reported. According to a review of the zoning map obtained from an Alta Survey, the subject property is zoned RM 20 (Residential Planned Urban Development).

This information does not constitute a detailed regulatory-compliance investigation and any code compliance issues noted in this report are based on information provided by the regulatory agencies noted above. If possible, the provided information was confirmed with on-site observations. Additional information that is received within 30 days of the site visit will be forwarded upon receipt.

2.4 Document Review

The following documents were reviewed as part of this assessment. Information obtained from the documents is incorporated into the appropriate Sections of this report. If available, copies of the referenced documents are included in the appendices.

• Tax Assessor property information; http://www.nashville.gov/Assessor-of-Property.aspx • ALTA Survey, Completed by Crawford & Cummings, P.C., dated August 28,2013


3.0 PROPERTY CHARACTERISTICS

3.1 Parcel Configuration

The subject property improvements are placed upon multiple parcels. The parcels are irregularly-shaped and comprise approximately 20.83 acres.

3.2 Site Improvements

3.2.1 Vehicular Access, Paving

Vehicular access is provided by two-way drive lanes leading from the adjacent public right-of-way to the on-site parking areas and drive aisles. Signalization is not provided at the entrance points to the subject property.

Concrete pavement is provided at the right-of-way approaches. Asphalt pavement is utilized throughout the property.

According to the ALTA Survey parking areas provide a total of 409 spaces, including 6 ADA-designated spaces.

Curbing placed at the parking area perimeters and interior islands consists of cast-in-place concrete.

Survey Condition and Analysis

The asphalt-paved areas appear to be in good to fair overall condition. Partner noted the asphalt pavement with areas of minor alligator/linear cracking and surface deterioration. Partner recommends a reapplication of the seal coating, along with striping, crack sealing, and localized repairs at this time. An opinion of cost is included as an immediate repair.

Based on the EUL, a reapplication of the seal coat and striping is anticipated during the evaluation period. An opinion of cost for this work is included in the replacement reserve schedule.

The curbs and gutters appeared to be in good condition. Other than routine maintenance, which includes minor concrete curb repair/replacement, no significant capital expenditures anticipated over the term.

3.2.2 Walkways, Grade-Level Steps and Ramps

Building entrance flatwork and pedestrian walkways consist of cast-in-place concrete construction. Steps accommodate sidewalk grade changes.


The pedestrian concrete walkways appear to be in good overall condition. However, Partner noted several areas of erosion adjacent to concrete sidewalks and entrance concrete stairs potentially contributing to some cracking within concrete joints. Partner recommends repairing/stabilizing the eroded areas and repair concrete flatwork as needed. An opinion of cost is included as an immediate repair.


3.2.3 Site and Building Signage

Building address identification is primarily provided by metal signage positioned on the end of each building. Property signage was observed to be limited to monument sign at the entrance to the leasing office building along Hillside Avenue.


The signage was observed to be in good condition. Sign painting or replacement can be conducted on an as-needed basis during the evaluation period as part of routine maintenance.

3.2.4 Exterior Lights

Outdoor lighting is provided by pole-mounted light fixtures generally located in parking areas and along the subject property drive aisles. The fixtures are equipped with high-intensity discharge lamps. The poles are constructed with elevated concrete bollard bases. The breezeway areas over entryways have recessed halogen lighting.


The walk-through survey was conducted during daylight hours and lighting operation could not be verified. Based on the number of lights provided and the spacing, the lighting appears to be adequate and was reported to be sufficient for the subject property.

The light fixtures were observed and reported to be in good overall condition. The light fixtures are anticipated to require minimal repairs and replacements that can be addressed as part of routine maintenance during the evaluation period.

3.2.5 Topography and Stormwater Drainage

The general vicinity is residential and commercial. The subject property slopes primarily from the north to the south.

Storm water is removed primarily by sheet flow action across the paved surfaces towards storm water drains located throughout the subject property and in the public right of way. Site storm water from the roofs of the subject buildings, landscaped areas, and paved areas is directed to on-site concrete swales, which drain to the public right of way, and to on-site storm water drains.

The subject property is connected to a storm sewer system that is owned and maintained by the municipality.


The topography was observed to be in good overall condition and appears to adequately accommodate the built improvements. Routine maintenance is anticipated during the evaluation period.

Precipitation was not present during the walk-through survey; consequently, direct observation of the operation of the storm water drainage system was not possible. Evidence of improper operation was not readily apparent. Routine maintenance, including clearing of debris from inlets, channels, piping, and outlets, is anticipated throughout the evaluation period.


3.2.6 Landscaping and Irrigation

Landscaped areas consisting of grass-covered lawns, floral plantings, trees, and shrubs are provided in areas not occupied by buildings, walkways, or pavement. An underground automatic irrigation system is not provided.


Vegetative materials appear to be in good overall condition. Routine maintenance, including as-needed replacement of vegetation, is anticipated throughout the evaluation period.

3.2.7 Retaining Walls

Retaining walls were observed between a portion of the buildings at grade changes at Buildings 1230, 1240, 1250, 1256 1280 1600 and 1651. The walls are constructed with cemented rock and cast-in-place concrete.


The retaining walls appeared to be in good condition. Routine maintenance is anticipated during the evaluation period.

3.2.8 Perimeter Walls, Gates and Fences

Perimeter fencing and other areas consists of coated and bare chain-link that is approximately 6’ tall.

The playground is surrounded by a coated chain-link fence system complete with a single out-swinging lockable access gate.


The perimeter fencing and gates, were observed to be in good and operational condition. Routine maintenance is expected throughout the evaluation period.

The playground fence and the Youth Life learning Center fence were noted to be down and damaged in two areas. Repair and/or replacement is recommended at this time. An opinion of cost for this work is included as an immediate repair.

3.2.9 Site Amenities

A playground with slides and grass groundcover is located west of Building 1301 on the northeast side of the subject property.


The recreational facilities and site amenities appear to be in good overall condition. Routine maintenance is anticipated during the evaluation period.

3.2.10 Special Utility Systems

Special utility systems are not present.


4.0 STRUCTURAL FRAME AND BUILDING ENVELOPE

4.1 Foundation/Substructure

Based on experience with similar structures in this geographic region, foundations are presumed to consist of a reinforced-concrete, continuous strip footings at the perimeter and isolated spread footings at interior bearing locations. Foundations consist of intermittent concrete block and wood set on metal undercarriages. Crawl space ventilation is by openings in the perimeter skirts.

Concrete masonry unit foundation walls were observed at the perimeters of the below grade structures.


Evidence of structural distress indicative of foundation settlement was not observed. Foundations appear to be in functional condition. Normal monitoring of the foundation is anticipated during the evaluation period.

Crawl space access hatches and ventilation louvers were observed to be missing or damaged throughout the property buildings. Partner recommends repairing/replacing the affected hatches. Due to the limited scope of work and low anticipated cost, this work can be addressed as part of routine maintenance.

4.2 Building Frame

The building is constructed of conventional, wood-stud platform framing with isolated areas of concrete masonry unit (CMU) walls. Upper floors consist of wooden beams and joists with concrete-topped, wooden sheathing supported by interior wooden columns. The roof structure consists of wood trusses with wooden decking.

No indications of fire-retardant plywood were noted or reported.


Evidence of structural distress indicative of framing failure was not observed. The framing appears to be in functional condition. Normal monitoring of the framing is anticipated during the evaluation period.

4.3 Facades or Curtain Walls

4.3.1 Exterior Walls

The exterior walls of each building consist of painted brick masonry.

Soffits are aluminum.


The exterior walls were observed to be in generally good condition. The property manager reported that the exterior building walls were painted in 2014. Based on the observed condition of the paint finish and the average effective useful life of paint coatings, reapplication of exterior paint is anticipated during the evaluation period. Additional work consisting of masonry pointing and reapplying sealants is anticipated on an as-needed basis. An opinion of cost for this work is included in the replacement reserve schedule.


4.3.2 Windows

Windows were observed to be double-pane operable units. Window framing was observed to be vinyl.


Windows were reported and observed to have been replaced since the original construction and appear to be in good overall condition. No signs of window leaks or condensation were evident during the observation. Window sealants were observed to be intact, with no signs of deterioration. Routine maintenance is anticipated during the evaluation period.

4.3.3 Doors

Units are accessed through exterior painted insulated metal entry doors set in metal frames. Door entry hardware typically is a knobbed lock with separate deadbolt.


Doors are reported and observed to be in good overall condition. Routine maintenance is anticipated during the evaluation period.

4.3.4 Parapets

The buildings are not constructed with parapets.

4.4 Fire Escapes, Stairs or Balconies

The buildings have exterior stairs providing access to the second and third-floor breezeways and tenant units. Exterior stairs are steel-frame construction with either steel treads or concrete-filled steel pan treads and open risers. The second and third-floor breezeways have painted metal guard rails installed around the outside perimeter. All observed steel components are painted.

Interior stairs of the townhouse apartment units are constructed of wood with stringers, treads and closed risers. A wooden handrail is secured to the wall on the interior stairs. The stair treads and risers are carpeted.

The breezeways are reportedly constructed of steel framing and lightweight concrete over either plywood or metal decking.


Stairs and breezeways appear to be in good condition. Routine maintenance is anticipated throughout the evaluation period. Painting of the stairs, breezeways, and guard rails can be performed in conjunction with the painting of the building exterior.

4.5 Roof

4.5.1 Roofing Materials

Roof coverings consist of an adhered flat, thermoplastic membrane with asphalt shingled mansard roofs.

Flashing materials appear to be similar to the roofing membrane.



The roofing systems appear to be in good overall condition. Evidence of water damage indicative of current roof leaks was not observed. According to property management, some of the flat membranes and shingles were replaced in 2013. Based on our observations, the reported age appears to be reasonable. Based on a review of historical aerial photographs, the roofs appear to have been replaced between approximately 2007 and 2013. Based on the EUL, replacement of the flat roof membranes and mansard shingles are expected to require only routine maintenance during the evaluation period.

Partner noted a few localized areas of the mansard shingles to be detaching. Partner recommends repair of these affected areas. According to the property manager, the roofs are currently under warranty. Due to the limited scope of work and roof warranty, this repair can be completed as part of routine maintenance.

According to the site escort, roof maintenance and repairs are conducted by a roofing contractor, Reliable roofing.

4.5.2 Roof Drainage

Storm water runoff for the flat membrane roof and the mansard shingled roof are both directed to gutters that are connected to downspouts that discharge at grade.


Roof drains were observed to be in good to fair overall condition. Areas of missing downspout sections, damaged or missing splash blocks were noted throughout the property. In addition, the gutter system of the Youth Life learning Center was damaged reportedly by vandalism and is in need of repair/replacement. An opinion of cost for this work is included as an immediate repair.


5.0 MECHANICAL AND ELECTRICAL SYSTEMS

5.1 Plumbing and Sewer Systems

Domestic water piping was reported to be copper by the maintenance manager. Observation of visible piping at water heaters and plumbing stub-outs indicates that the piping is copper.

Sanitary drainage and vent piping is reported to be cast iron and PVC by the maintenance manager. Observation of visible vent piping indicates that the piping is cast iron and PVC.


The plumbing systems were reported to be in good overall condition. Evidence of leaks or faulty piping was observed in the following areas:

• Apartment #1214: Water intrusion from 2nd floor apartment bathroom plumbing. • Apartment #1414: Water intrusion from 2nd floor apartment bathroom plumbing. • Apartment #1683: Water intrusion from 2nd floor apartment bathroom plumbing.

Refer to Section 8.1 for additional discussion on these water leaks.

5.2 Domestic Hot Water

Domestic hot water is provided by 40-gallon capacity tank, electric water heaters installed in mechanical closets.


The water heaters appeared to be in good overall condition. As-needed replacement is anticipated during the evaluation period. An opinion of cost for this work is included in the reserves.

5.3 Heating, Air Conditioning, and Ventilation

Heating and cooling are provided by direct expansion HVAC split systems. Each system has a condensing unit primarily located on the roof, with a few units located at grade. The systems have a furnace unit located in mechanical closets of the apartment units. Manufactured by various companies, the condensing units have a typical input capacity of 1.5 to 2-tons and use R-22 refrigerant. The furnace units provide heat through electric resistance coils. Distribution of the conditioned air is by concealed sheet metal ductwork and temperature control is by a local thermostat.

Ventilation is provided by individual and common area fans that vent through the roof.


According to property management, the mechanical equipment is maintained by in-house staff and an outside vendor, Terry’s HVAC.

The HVAC equipment components are reported to be of various ages and generally in good condition. Replacement of some HVAC units is anticipated during the evaluation period. An opinion of cost for this work is included in the replacement reserve schedule.


5.4 Electrical

Electrical service is delivered via several pole-mounted, utility-owned transformers located primarily along the perimeter of the property. Electrical service provided to units is rated at 100 amps. The subject property is individually metered. Breaker panels are located in the kitchen of the apartment units. The panels were observed in numerous apartment units; however, the manufacturer of the panels was not listed.

Electrical branch wiring was reported to be copper. Wiring was observed to be copper in a few electric panels and in the down apartment Unit 1336.

Ground fault circuit interrupter (GFCI) outlets were observed in kitchens and bathrooms.


The electrical power was reported to be adequate. The switchgear, circuit breaker panels and electrical meters appeared to be in good condition. Routine maintenance is anticipated during the evaluation period.

5.5 Elevators

Elevators are not provided.

5.6 Life Safety and Fire Protection

5.6.1 Fire Suppression Systems

A fire extinguisher is provided in the leasing office. The date of inspection of the fire extinguisher was 2012.


AT the time of the site visit, current inspection tags were not observed on the fire extinguishers. In addition, the fire extinguisher was observed to be missing in the laundry building. Subsequent to the date of the report, Partner was provided with evidence that the fire extinguishers were inspected and a fire extinguisher was added to the laundry building. As such, no further action is warranted. Routine maintenance, including regularly-scheduled testing and as-needed replacement, is anticipated during the evaluation period.

5.6.2 Alarm Systems

The fire alarm system is reportedly comprised of hardwired smoke detectors with battery backup.


The smoke detectors appear to be in good overall condition. Routine maintenance, including regularly-scheduled testing and as-needed replacement, is anticipated during the evaluation period.


5.6.3 Other Systems

Emergency lighting is provided in the leasing office by wall- and ceiling-mounted battery-operated fixtures. Emergency means of egress locations in the leasing office and Youth Life Learning Center are indicated by illuminated exit signs.


The observed components appear to be in good overall condition. Routine maintenance, including regularly-scheduled testing and as-needed replacement, is anticipated during the evaluation period.


6.0 INTERIOR ELEMENTS

6.1 Commercial Tenant Spaces

Commercial tenant spaces are not provided.

6.2 Common Areas

Significant common areas at the subject property consist of the leasing office, mail kiosk in the leasing office, laundry room and Youth Life Learning Center. Corridor finishes consist of carpet, vinyl tile flooring, painted gypsum board, and acoustical tile and painted gypsum board ceilings. Lighting consists of suspended fluorescent fixtures.

The leasing office building is constructed with a mail station, and conference and break room. Common area furnishings consist of sofas, chairs, and tables.

Coin-operated washers and dryers for resident use are provided in laundry room. The equipment is owned and maintained by an outside vendor.

The laundry room is finished with vinyl tile flooring, painted drywall walls, and painted drywall ceiling. The laundry is equipped with 16 commercial washers, and 16 gas-fired dryers.

Doors are typically stained, solid core wood set in painted metal and wood frames. Hardware consists of knob and lever handles.


Common area finishes were observed to be in good overall condition. Replacement of the common area flooring is anticipated during the evaluation period. An opinion of cost for this work is included in the reserve schedule.

6.3 Residential Spaces

6.3.1 Observed Units

Approximately ten percent of the residential units, including a minimum of 50% of vacant units and 100% of down units were observed.

Observed units were noted to be in good overall condition. Observed units were selected by Partner. Refer to the Form 1105 Section I for a list of units viewed, sizes and occupancy.

During the site assessment, one down unit (Unit 1136) was identified. According to property management, the units was down due to tenant vandalism. Repairs anticipated to return to rentable condition consists of repairing damaged drywall, replacing flooring, replace range, and cleaning/painting. An opinion of cost to return the down unit (1336) to rentable condition is included as an immediate repair.

6.3.2 Unit Interiors

The interior walls consist primarily of painted gypsum wall-board. The ceilings are primarily painted textured and smooth gypsum board. Interior doors are hollow core wood set in wooden frames.


Unit flooring is comprised of carpeting and some sheet vinyl in the unit living and bedroom areas, with sheet vinyl in the kitchen and bathroom areas.


According to property management, interior finishes are replaced as-needed or during tenant turnover. Overall, the interior finishes appeared to be in good condition with no significant deficiencies. Replacement of flooring is anticipated during the evaluation period. An opinion of cost for this work is included in the reserves.

Painting of the dwelling unit interiors is considered to be part of the operational budget and associated costs are not included in this report.

According to property management, problematic drywall is not present at the subject property. Visual evidence of problematic drywall was not observed.

6.3.3 Cabinetry and Fixtures

The kitchen are equipped with stainless steel sinks, composition board cabinets, and plastic laminate countertops. Typical bathroom fixtures include a floor-mounted, tank-type commode, a lavatory with/without a vanity, and a shower/bathtub arrangement with ceramic tile surround.


According to the property management, kitchen and bathroom fixtures are replaced as-needed or during tenant turnover. Overall, the fixtures appeared to be in good condition with no significant deficiencies. Routine maintenance is anticipated during the term.

6.3.4 Appliances

Kitchens are provided with electric range-ovens with vent hoods, dishwashers, and refrigerators. Washers and dryers are not provided.


Appliances appear to be in good condition. Based on EUL, replacement of appliances is anticipated during the evaluation period. An opinion of cost for this work is included in the replacement reserve schedule.


7.0 ACCESSIBILITY

7.1 Americans with Disabilities Act

As part of this assessment, a limited, visual, accessibility survey was conducted. The survey did not include taking measurements or counting accessibility elements. The scope of the survey was limited to determining the existence of architectural barriers or physical attributes of the subject property, which affect on-site parking, path of travel into and through public areas of the building, and elevators, as applicable. Furthermore, the scope of our survey includes only the federal requirements of the ADA; it is not intended to address state or local codes. Our observations were limited to the places of public accommodation on the subject property.


Observed barriers consist of:

• Lack of signage and special markings to identify accessible parking spaces; • Leasing office restroom door with knob hardware.

An opinion of cost for correction of non-accessible items is included as an immediate repair.

Future renovations or alteration of the subject property may require additional proportional compliance with ADA requirements. This determination should be made by the local governing authority when permit acquisition for renovation is made.

7.2 Fair Housing Amendments Act

The Fair Housing Amendments Act of 1988 (FHAA) requirements cover buildings consisting of four or more dwelling units with first occupancy after March 13, 1991.

The subject property was first occupied before March 13, 1991; as such, it is not required to comply with the provisions for new construction buildings under the FHAA.


8.0 MOISTURE AND MICROBIAL GROWTH AND PEST MANAGEMENT

8.1 Moisture and Microbial Growth

Microbial growth (e.g., mold or fungus) typically occurs when excess moisture is present. Porous building materials such as gypsum board, insulation in walls and ceilings, and carpeting retain moisture and become microbial growth sites if moisture sources are not controlled or mitigated. Potential sources of moisture include rainwater intrusion, groundwater intrusion, condensation on cold surfaces, and water leaks from building systems (e.g., plumbing leaks, HVAC system leaks, overflowing drains, etc.). Inadequate ventilation of clothes dryers and shower stalls may also result in excess moisture conditions. Microbial growth may be clearly visible (e.g., ceramic tile mortar in shower stalls) or may be concealed with no visible evidence of its existence (e.g., inside wall cavities).

A limited visual and olfactory survey for the conspicuous presence of mold was conducted as part of this assessment. Destructive sampling and air quality analysis was not included in the scope of work. The observation consisted of gaining entry to interior spaces and visually evaluating the accessible areas.

Management reported that significant mold or microbial growth has not been observed at the subject property, that tenant occupants have not had complaints concerning mold or microbial growth and that a formal indoor air quality management plan is not in effect.

Evidence of water damage and/or suspect microbial growth was observed during the survey.

Active water leaks were found in Units 1214, 1414, 1683, likely from leaking plumbing in the upper floor bathrooms. Additionally, active suspect microbial growth was observed in the bathroom of Units 1214, in the storage room ceiling of Building 1370-1388, the southeast storage room of the leasing office, and in the Youth Life Learning Center, likely from prior plumbing or roof leaks. Repairs are recommended. An opinion of cost for this work is included as an immediate repair.

8.2 Pest Management

A limited visual survey for the conspicuous presence of pests, vermin and damage caused by potential wood-destroying organisms including granular pellets, mud tubes, dry rot, or swarming activity was conducted as part of this assessment. This report is not intended to be construed, perceived, or substituted for a termite report. Additional indications of organism activity may be present in crawl spaces, excavated sections around the foundation, behind wall access and attic spaces, that were not observed.

According to property management, the subject property is routinely inspected and treated for wood destroying organisms.

Visual indications of wood-destroying organisms were not noted. In addition, the observed structures are constructed with masonry façades and do not have significant amounts of exposed wooden elements.


9.0 NATURAL HAZARD INFORMATION

Partner reviewed readily-available materials to obtain the following information. Determination of site-specific conditions is not within the scope of this report and may require additional investigation.

9.1 Flood Zone

If available, the Flood Insurance Rate Map, published by the Federal Emergency Management Agency was reviewed. Flood hazard areas identified on the Flood Insurance Rate Map are identified as a Special Flood Hazard Area (SFHA). SFHA are defined as the area that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year. The 1-percent annual chance flood is also referred to as the base flood or 100-year flood. SFHAs are labeled as Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30. These areas required Flood Insurance. Moderate flood hazard areas, labeled Zone B or Zone X (shaded) are also shown on the FIRM, and are the areas between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood. The areas of minimal flood hazard, which are the areas outside the SFHA and higher than the elevation of the 0.2-percent-annual-chance flood, are labeled Zone C or Zone X (unshaded).

The Flood Insurance Rate Map published by the Federal Emergency Management Agency, Community Panel Number 47037C0218F, is not currently available for review. However, the ALTA Survey for the property includes the flood zone as located in Zone X.

9.2 Peak Ground Acceleration (PGA)

Information published by the United States Geological Survey (USGS) was used to estimate the Peak Ground Acceleration (PGA) the subject property. Specifically, the estimated PGA with an exceedance probability of 10% in 50 years, also known as the 475-year PGA was obtained. According to the USGS, the PGA is 0.04763 g.

9.3 Wind Zone

Partner performed a review of the Wind Zone Map, published by the Federal Emergency Management Agency. According to the map, the subject property appears to be located in Wind Zone IV, an area with design winds speeds up to 250 miles per hour. The subject property does not appear to be located in a special wind region or hurricane-susceptible zone.


10.0 OUT OF SCOPE CONSIDERATIONS

These following items are categorically excluded from the scope of work.

• Utilities: Operating conditions of any systems or accessing manholes or utility pits. • Structural Frame and Building Envelope: Entering of crawl or confined space areas (however,

the field observer will observe conditions to the extent easily visible from the point of access to the crawl or confined space areas), determination of previous substructure flooding or water penetration unless easily visible or if such information is provided.

• Roofs: Walking on pitched roofs, or any roof areas that appear to be unsafe, or roofs with no built-in access, or determining any roofing design criteria.

• Plumbing: Determining adequate pressure and flow rate, fixture unit values and counts, verifying pipe sizes, or verifying the point of discharge for underground systems.

• Heating: Observation of flue connections, interiors of chimneys, flues or boiler stacks, or tenant owned or maintained equipment. Entering of plenum or confined space areas.

• Air conditioning & Ventilation: Process-related equipment or condition of tenant owned or maintained equipment. Entering of plenum or confined space areas. Testing or measurements of equipment or air flow.

• Electrical: Removing of electrical panel and device covers, except if removed by building staff, EMF issues, electrical testing, or operating any electrical devices. Opining on process related equipment or tenant-owned equipment.

• Vertical Transportation: Examining of cables, sheaves, controllers, motors, inspection tags, or entering elevator/ escalator pits or shafts.

• Life Safety/ Fire Protection: Determining NFPA hazard classifications, classifying, or testing fire rating of assemblies. Determination of the necessity for or the presence of fire areas, fire walls, fire barriers, paths of travel, construction groups or types, or use classifications.

• Interior Elements: Operating appliances or fixtures, determining or reporting STC (Sound Transmission Class) ratings, and flammability issues/regulations.

Activity Exclusions- These activities listed below generally are excluded from or otherwise represent limitations to the scope of a PCA prepared in accordance with this guide (ASTM 2018-15). These should not be construed as all-inclusive or imply that any exclusion not specifically identified is a PCA requirement under this guide.

• Providing opinions of costs that are either individually or in the aggregate less than a threshold amount of $3,000 for like items unless specifically requested by the addressee.

• Identifying capital improvements, enhancements, or upgrades to building components, systems, or finishes;

• Removing, relocating, or repositioning of materials, ceiling, wall, or equipment panels, furniture, storage containers, personal effects, debris material or finishes; conducting exploratory probing or testing; dismantling or operating of equipment or appliances; or disturbing personal items or property, that obstruct access or visibility;

• Determining adequate pressure and flow rate, fixture-unit values and counts, verifying pipe sizes, or verifying the point of discharge for underground drains;


• Determining NFPA hazard classifications, identifying, classifying, or testing fire rating of assemblies. Determination of the necessity for or the presence of fire areas, fire walls, fire barriers, accessible routes, construction groups or types, or use classifications;

• Preparing engineering calculations to determine any system’s, component’s or equipment’s adequacy or compliance with any specific or commonly accepted design requirements or building codes, or preparing designs or specifications to remedy any physical deficiencies;

• Identification of code or OSHA compliance beyond what has been reported through communication with local regulatory offices.

• Taking measurements or quantities to establish or confirm any information provided by the owner or user;

• Reporting on the presence or absence of pests or insects; • Reporting on the condition of subterranean or concealed conditions as well as items or

systems that are not permanently installed or are tenant-owned and maintained; • Entering or accessing any area deemed to potentially pose a threat of dangerous or adverse

conditions with respect to the field observer’s health or safety; • Performing any procedure, that may damage or impair the physical integrity of the property,

any system, or component; • Providing an opinion on the operation of any system or component that is shut down; • Evaluating the Sound Transmission Class or acoustical or insulating characteristics of systems

or components; • Providing an opinion on matters regarding security and protection of occupants or users from

unauthorized access; • Evaluating the flammability of materials and related regulations; • Providing an opinion on matters regarding security of the subject property and protection of

its occupants or users from unauthorized access; • Operating or witnessing the operation of lighting or any other system controlled by a timer,

operated by the maintenance staff, or operated by service companies; • Providing an environmental assessment or opinion on the presence of any environmental

issues such as potable water quality, asbestos, hazardous wastes, toxic materials, the location and presence of designated wetlands, IAQ, etc. unless specifically defined within the agreed scope;

• Evaluating systems or components that require specialized knowledge or equipment; • Entering of plenum or confined space areas.


11.0 LIMITATIONS

This assessment is based upon the guidelines set forth by the ASTM Standard current to the issuance of this report and subject to the limitations stated therein. Our review of the subject property consisted of a visual assessment of the site, the structure(s) and the accessible interior spaces. Any technical analyses made are based on the appearance of the improvements at the time of this assessment and the evaluator’s judgment of the physical condition of the subject property components, their ages and their EUL. Consequently, this report represents the condition of the subject property at the time of observation. Acceptance and use of this report infers acknowledgment that the condition of the property may have changed subsequent to site observations and/or that additional information may have been discovered, and that Partner, its officers, employees, vendors, successors or assigns, are not liable for changes in the condition of the property, failures in property components or systems, and damages that may occur as a result of the changes or failures.

Information regarding the subject property is obtained from a site walk-through survey, local government agency records review, interviews and client-, tenant- or property owner-provided documents. No material sampling, invasive or destructive investigations, equipment or system testing was performed. The observations and related comments within this report are limited in nature and should not be inferred as a full and comprehensive survey of the building components and systems.

Information regarding operations, conditions, and test data provided by the Addressee, property owner, or their respective representatives has been assumed to be factual and complete. Information obtained from readily-available sources, including internet research and interview of municipal officials or representatives is assumed to be factual and complete. No warranty is expressed or implied, except that the services rendered have been performed in accordance with generally-accepted practices applicable at the time and location of the study.

The actual performance of systems and components may vary from a reasonably expected standard and will be affected by circumstances that occur after the date of the evaluation. This assessment, analyses and opinions expressed within this report are not representations regarding either the design integrity or the structural soundness of the project.

The report does not identify minor, inexpensive repairs or maintenance items, which should be part of the subject property owner’s current operating budget so long as these items appear to be addressed on a regular basis. The report does identify infrequently occurring maintenance items of significant cost, such as exterior painting, roofing, deferred maintenance and repairs and replacements that normally involve major expense or outside contracting.

The assessment of the roof, façade and substructure contained herein cannot specifically state that these items are free of leaks and/or water intrusion and should not be interpreted as such. Comments made with respect to the condition of the systems are limited to visual observation and information provided by the designated site contacts and/or on-site representatives and their contractors/vendors. The evaluation of these systems did not include any sampling and/or testing. A more extensive evaluation may be required if a comprehensive report on the condition of these systems is required.


Performance of a comprehensive building, fire or zoning code review is outside of the scope of work for this report. Information provided within this report is based on readily-available information or interview of municipal officials.

This report presents an evaluation of the accessibility of the subject property as specified in the engagement agreement. This report does not present an audit of all components specified in federal, state or local accessibility regulations. Instead, this review observed general design components such as routes of travel, door hardware, plumbing amenities, elevator controls and signals, basic emergency alarm components and signage. This report is not a comprehensive Americans with Disabilities Act review.

Acceptance and use of this report infers acknowledgment that the condition of the property may have changed and that Partner, its officers, employees, vendors, successors or assigns, are not liable for changes in the condition of the property, failures in property components or systems, and damages that may occur as a result of the changes or failures.

FIGURES

1. SITE LOCATION MAP

2. SITE PLAN

FIGURE 1: SITE LOCATION MAP Project No. 16-161774.1

.

Aerial photos and Maps are obtained from public sources that may not be current. For reference only. Site North is Up

FIGURE 2: SITE PLAN

Project No. 16-161774.1

Sca Aerial photos and Maps are obtained from public sources that may not be current. For reference only. Site North is Up

APPENDIX A: SITE PHOTOGRAPHS

SITE PHOTOGRAPHS Project No. 16.161774.1

1. Property monument sign

2. Typical property entrance off Hillside Avenue

3. Typical exterior of building with breezeway 4. Typical exterior of building breezeway

5. Typical exterior of building breezeway 6. Typical building breezeway stairs


Typical exterior of townhouse building 7. Youth Life Learning Center building

8. Maintenance & laundry building 9. Typical building crawl space view

10. Typical building TPO roof system 11. Typical building TPO roof system


12. Typical building mansard shingle 13. Typical building window

14. Asphalt drive 15. Typical coated/painted fence

16. Typical chain link fence 17. Typical electrical transformer


18. Typical building electric meters

19. Typical roof-mounted HVAC condensing units

20. Typical pad-mounted HVAC condensing units

21. Typical HVAC fan coil unit

22. Leasing office FAU 23. Leasing office


24. Leasing office conference room 25. Leasing office rest room

26. Leasing office mail station

27. Youth Life Learning Center interior

28. Maintenance building interior 29. Laundry room


30. Typical unit room living 31. Typical unit kitchen

32. Typical unit bathroom 33. Typical unit copper water supply lines

34. Typical smoke detector 35. Leasing office emergency lighting & lighted exit

sign


36. Leasing office fire extinguisher 37. Copper electric wring in unit panel

38. Typical unit GFCI in wet area 39. Leasing office ADA entrance

40. Non-ADA compliant restroom entry door handles 41. Non-ADA compliant parking space at leasing

office


42. Example of damaged crawl space vents and entry

hatches

43. Damaged gutter at Youth Life Learning center

44. Example of damaged gutter 45. Example of damaged splash block

46. Damaged playground fence 47. Example of eroded concrete stairs


48. Example of eroded concrete walkway 49. Example of separated joint at concrete stairs

50. Water staining in leasing office storage room 51. Suspect microbial growth on brick wall in leasing

office storage room

52. Water damaged ceiling-Unit 1683 53. Suspect microbial growth on ceiling-Youth Life

Learning Center


54. Suspect microbial growth on ceiling of Building

1370-1380 storage room

55. Suspect microbial growth and water staining on

ceiling-Unit 1214

56. Suspect microbial growth in bathroom-Unit 1242

57. Damaged drywall-Unit 1336

58. Missing flooring-Unit 1336

APPENDIX B: SUPPORTING DOCUMENTATION

APPENDIX C: QUALIFICATIONS

Martin Quinn Partner Associate

Education

B.S. Mechanical Engineering, Montana State University

Summary of Professional Experience

Mr. Quinn is a Professional Engineer with over 15 years consulting, engineering and

management experience. He has more than three years experience performing Property

Condition Assessments (PCAs) on multifamily properties and more than two years experience

performing these assessments for financial institutions.

Mr. Quinn’s experience includes 3+ years at executive level serving as a principal engineering

consultant for a Fortune 50 bank & holding company on over 200 property due diligence

transactions with responsibilities including construction management, mold and asbestos

removal, Property Condition Assessments (PCA’s), engineering cost analysis studies, Phase I

and II Environmental Site Assessments (ESA’s), contractor negotiations, and state and local

regulatory compliance and building code negotiations. Prior accomplishments include

experience as an engineer, project and program manager and business development manager in

environmental consulting environmental assessment and remediation profession. He has

operational and engineering design experience in the petroleum industry including; Storm Water

Pollution Prevention Plans, Spill Prevention Control and Countermeasure Plans (SPCC Plans),

Oil Pollution Act of 1990 Plans, industrial assessment compliance issues related to water, soil

and hazardous wastes, and risk based assessments and groundwater modeling, removal,

replacement, and upgrade of AST and UST systems, soil and groundwater remediation systems.

Mr. Quinn has conducted numerous PCA’s, Americans with Disabilities Act (ADA) Compliance

Surveys, and Phase I & II ESA’s required for property transfers and financing of commercial

properties. Property types include multi-family, health care, assisted and senior living, student

housing, office/warehouse/flex, strip retail and regional malls, low & mid-rise office buildings,

limited and full service hotels (including resort), self-storage facilities, and marinas. He has

evaluated structural and cosmetic components of properties, including foundations, framing,

walls, roofing, interior improvements, mechanical and electrical equipment, pavement, drainage,

and ADA compliance. Mr. Quinn has also identified deferred maintenance, immediate repairs

and costs, and physical needs over the term. Protocol for Property Condition and Environmental

assessments includes ASTM 2018, Fannie Mae, Freddie Mac, HUD, and numerous lender-

specific variations of the ASTM Standards.

800-419-4923 www.PARTNEResi.com

Brandon Henricks, LEED AP

Building Science Technical Team Lead

Education

Bachelor of Science, Virginia Polytechnic Institute & State University

Major: Building Construction (College of Architecture)

Registrations

LEED Accredited Professional, US Green Building Council

Highlights

Over 14 years’ experience in the construction management and engineering services industries

Meets Freddie Mac experience requirements:

Over 5 years’ experience performing Property Condition Assessments (PCAs)

Over 3 years’ experience performing PCAs on multifamily properties

Over 2 years’ experience performing PCAs for financial institutions

Experience Summary

Mr. Henricks serves as a Building Science Technical Team Lead at Partner Engineering and Science, Inc.

(Partner), and is responsible for the training and management of a team of technical reviewers, as well as

for the overall quality and consistency of reports produced by the team. Additionally, he serves as the

primary technical client contact for complex properties or specific issues of high complexity. Mr. Henricks

is also responsible for working with Partner’s Technical Directors to ensure that changing client scopes and

requirements are communicated and incorporated into our reports.

At Partner, Mr. Henricks has performed and managed Property Condition Assessments (PCAs), Americans

with Disabilities Act (ADA) Compliance Surveys, Construction Progress Monitoring services, and Phase I

Environmental Site Assessments.

Property Condition Assessments

Mr. Henricks has been involved in over 2,500 engineering due diligence assessments for a variety of property

types and is aware of the needs and requirements of varied number of reporting standards, including ASTM

standards and customized client formats. Specific areas of expertise include PCAs for the following client

types:

CMBS

Bank

Life insurance

HUD

Freddie Mac

Fannie Mae

Pre-foreclosure

Equity / Acquisition (single generalist and multi-assessor PCAs)

Pre-disposition

Construction Management

Prior to joining Partner, Mr. Henricks served as a construction manager leading the design and construction

of multiple commercial buildings in the states of Virginia, Maryland, North Carolina, and the District of

Columbia. In that role, he was responsible for the turn-key program management of multiple, simultaneous


2 | P a g e

projects totaling approximately $250 million in program value. He performed regular project cost reviews

and design document quality control reviews, with an emphasis on mechanical/electrical/plumbing

coordination. Mr. Henricks was also responsible for evaluating potential change order issues and

proactively managing time extension claims, and for negotiating their resolution with project contractors.

In addition to performing regular quality control reviews of in-progress construction, he was responsible

for managing, tracking, and reporting construction progress to high-level project stakeholders, and for

reviewing the contractors’ monthly payment requests. In this role, Mr. Henricks reviewed over 200 monthly

progress payment requests.

Mr. Henricks has been involved in a variety of renovation projects as well as new construction projects across

a variety of project types that include educational, healthcare, high-rise residential, athletic facilities,

warehouse/light industrial, parking garage, and site development.

Project Experience

Property Condition Assessments

Equity Portfolio, Nationwide. Technical reviewer for a 33-site equity-level PCA portfolio of auto-body repair

properties located throughout the United States.

Equity PCA, Columbia, South Carolina. Site assessor for a landmark 20-story high-rise office building

(approximately 500,000 GSF) in the central business district of Columbia, SC. Included coordinating the on-

site assessment with elevator and structural sub-consultants, as well as incorporating their findings into the

overall PCA report.

Freddie Mac PCA, Atlanta, Georgia. Site assessor for a 50-building, 519-unit property situated over 42 acres.

Site visits were conducted and reports were prepared to meet Freddie Mac requirements.

Freddie Mac PCAs, Anderson, South Carolina and Covington, Georgia. Site assessor for multiple senior living

properties. Site visits were conducted and reports were prepared to meet Freddie Mac requirements.

Equity PCA, Spartanburg, South Carolina. Site assessor for an acquisition of a 480-bed student housing

community that serves the University of South Carolina Upstate. This PCA included observation of 100% of

the units as well as a detailed breakdown of the condition of each element within each unit.

Equity Portfolio, Detroit, Michigan. Site assessor for a 13-site equity-level PCA portfolio of client-owned

properties that included a wide variety of structures/uses and ages. Property types included mid- and high-

rise senior living residential, commercial office, educational and student services, athletic facilities, and one

1500-acre camp facility with approximately 200 individual structures.

Construction Management

Goodwin House Bailey’s Crossroads, Continuing Care Retirement Community Expansion, Bailey’s Crossroads,

Virginia. Provided construction management services for a multi-year, multi-phase project that included a

three-story healthcare facility addition, a 15-story residential tower, an above-grade garage structure, and

a multi-floor renovation of an existing building that remained occupied during construction activities.


3 | P a g e

Episcopal High School, Multiple Projects, Alexandria, Virginia. Provided construction management services

for nine separate/standalone projects over four years. Responsible for managing the design and

construction processes that achieved LEED certification in select, client-designated projects. A portion of

the project work also included the successful coordination and execution of interior renovation projects on

compressed schedules during the school’s summer break periods.

Washington National Cathedral, Parking Garage and Bus Lane Project, Washington, District of Columbia.

Provided construction management services for a four-story underground parking garage and two-story

underground bus lane directly adjacent to the Cathedral. Included extensive coordination with the activities

of the client’s various on-site entities, which include multiple schools and the national landmark cathedral

facility, all of which remained open and fully operational throughout construction. Mr. Henricks also devised

a coordination plan for the installation of low voltage systems that minimized conduit runs and resulted in

a significant savings to the client.

Contact

[email protected]

Summer Gell Principal Education B.S. in Environmental Health, Cum Laude Western Carolina University Registrations North Carolina-Licensed Asbestos Inspector (No. 11425) South Carolina-Licensed Asbestos Inspector (No. 22156) AHERA Certified Asbestos Building Inspector OSHA 40-hour Hazardous Materials Safety Certification OSHA 8-hour HAZWOPER Annual Refresher

Summary of Professional Experience Mrs. Gell has over 15 years of experience in the real estate due diligence field. She has a strong background in providing environmental due diligence for debt and equity transactions, as well as the performance of Phase I environmental site assessments, Phase II subsurface investigations, soil and groundwater remediation, National Environmental Policy Act (NEPA) Reviews and Environmental Assessments, regulatory compliance audits, asbestos surveys, lead-based paint surveys, mold assessments, and indoor air quality studies. She also has extensive portfolio management experience throughout the United States. Mrs. Gell currently serves as a National Client Manager for Partner Engineering and Science, providing solutions to clients’ due diligence and engineering needs. She is responsible for ensuring consistency, quality, and on-time delivery of due diligence and engineering services provided by Partner. Current day-to-day responsibilities include project oversight, staff supervision, report review, and client management. Mrs. Gell has been personally involved in the details of thousands of real estate transactions for various client types and therefore understands the specific needs and scopes of work required for the different parties involved in the transaction. Mrs. Gell has served as an environmental scientist, project manager, or senior author for projects associated with over 5,000 real estate transactions. Mrs. Gell is familiar with the due diligence requirements of a varied number of reporting standards, including ASTM E1527, EPA’s All Appropriate Inquiry (AAI), Fannie Mae DUS, Freddie Mac, HUD, and Federal Communications Commission (FCC) 47 CFR Part 1. She also has experience with fulfilling numerous customized client scopes of work. Previously, Mrs. Gell was a client manager for a Fortune 500 company and was responsible for managing due diligence projects throughout the United States. Mrs. Gell was also responsible for developing report templates to meet the Phase I ESA requirements of Freddie Mac and Fannie Mae’s small loan program. Her primary clientele focus included real estate investors, DUS lenders, CMBS lenders, insurance lenders, and real estate equity funds.

Summer Gell (Continued)

Mrs. Gell was also the Geoscience Group Manager for an international engineering firm, where she was responsible for business development for due diligence services within North Carolina and South Carolina, staff management, and QA/QC review of all Phase I ESAs, asbestos surveys, and Industrial Hygiene-related reports. In addition, Mrs. Gell was the project manager on multiple Phase II assessments and remedial investigations with cleanups under various regulatory programs for former textile mills, drycleaners, and Brownfields sites located in the southeastern United States. Prior to being promoted to Geoscience Group Manager, Mrs. Gell was responsible for managing and completing environmental site assessments, and soil and groundwater contamination assessments associated with USTs, drycleaners, and former industrial properties. She was also responsible for conducting asbestos, lead-based paint, and mold surveys, and the oversight of subsequent abatement projects. She also performed regulatory compliance audits and indoor air quality assessments to evaluate potential worker exposure issues. For a national geoscience company, Mrs. Gell served as a staff environmental scientist and conducted soil and groundwater assessments at multiple petroleum retail sites located throughout Florida. Some relevant project experience includes:

Performed, managed, or reviewed due diligence projects associated with more than 5,000 real estate transactions on multi-family properties, agricultural properties, commercial office buildings, retail shopping centers, gasoline service stations, medical and hospitality properties, dry cleaning plants, auto repair shops, industrial properties, and various manufacturing operations throughout the United States.

Responsible for managing due diligence in support of the National Environmental Policy Act (NEPA) on telecommunications projects throughout Texas, New Mexico, Arizona, South Carolina and Tennessee.

Managed a portfolio of Phase I ESAs for over 200 gas stations located in Texas and Utah. Managed and served as a team leader for a Phase I and Phase II assessment of five

housing areas associated with the Marine Corps Air Station and Parris Island Recruit Depot in Beaufort, South Carolina. Scope of Services included asbestos sampling, lead based paint sampling, mold investigation of housing areas, geophysical surveys for USTs and possible land fill area, and soil and groundwater assessment.

Managed and performed indoor air monitoring project of a former industrial facility located in Orlando, Florida. Air monitoring parameters consisted of VOCs, formaldehyde, carbon monoxide, carbon dioxide, environmental bacteria, fungi, radon, and lead. Provided expert witness testimony for workers compensation claims filed against the existing property owner.

Completed UST Closure Reports, Limited Site Assessments, Soil Assessment Reports, Soil Closure Reports, and Corrective Action Plans for submittal to North Carolina Department of Environment and Natural Resources for UST sites owned by various industrial and government entities.

Summer Gell (Continued)

Completed Tier I, Tier II, and Corrective Action reports for submittal to South Carolina Department of Health and Environmental Control (SCDHEC) for UST sites owned by various developers and industrial entities.

Conducted soil and groundwater assessments at multiple petroleum retail sites located throughout Florida. Activities included field oversight of groundwater monitoring well installation using mud-rotary, air-rotary, and hollow-stem augers; soil and groundwater sampling; receptor surveys; and elevation surveys of installed monitoring wells and soil borings. Prepared Contamination Assessment Reports (CARs) documenting field assessment activities and evaluation of laboratory analytical results for submittal to the Florida Department of Environmental Protection (FDEP).

Field Team Leader for Phase I ESAs and subsequent Phase II investigations conducted of multiple closed furniture manufacturing sites located in North Carolina and South Carolina as part of a joint venture between an international engineering firm and a Brownfields investment company.

Speaking

Panel speaker at the Environmental Bankers Association’s January 2010 Conference on the subject of Fannie Mae DUS engineering and environmental guidelines in comparison to HUD and Freddie Mac.

Publications

Going through a Phase? All About Fannie Mae and Freddie Mac Due Diligence, Scotsman Guide, April 2009

Freddie Mac Due Diligence: Environmental/Engineering Best Practices, GlobeSt.com Blog Network,

July 2011

property condition reportacceleration (pga), with 10% probability of exceedance in 50-years (a.k.a....

Documents