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Property Condition Report

Palazzo Park Apartments

6030 South Newport AvenueTulsa, Oklahoma

EBI Project No. 1116002094

May 2, 2016

Prepared for:

Oklahoma Fidelity Bank2225 W. Hefner Road

Oklahoma City, OK 73156

Prepared by:

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May 2, 2016

Mr. Brian WilliamsonOklahoma Fidelity Bank2225 W. Hefner RoadOklahoma City, OK 73156

Subject: Property Condition Report, Palazzo Park Apartments6030 South Newport Avenue, Tulsa, OklahomaEBI Project #1116002094

Dear Mr. Williamson:

Attached please find EBI’s Property Condition Report, (the Report) for the above-mentioned asset (the Subject Property). During the property survey and research, EBI’s property surveyor met with agents representing the Subject Property, or agents of the owner, and reviewed the property and its history. The Report was completed according to the terms and conditions authorized by you, the Client. This Report has been completed in general conformance with ASTM E 2018–08 and Oklahoma Fidelity Bank‘s Scope of Work.

The purpose of this Report is to observe the general physical condition and maintenance status of the property, and to suggest repair or maintenance items considered customary for the property to continue in its current operation, compared to properties of similar age and condition.

This Report was performed utilizing methods and procedures consistent with established commercial practices and in conformance with industry standards. The suggestions represent EBI Consulting’s opinion based on written, graphic or verbal information, the property condition and data available to us at the time of the survey. Factual information regarding operations, conditions or data provided by the Client, occupants, owner or their representative has been assumed to be correct and complete.

Reliance on the Report and the information contained herein shall mean (i) the Report may be relied upon by a lender to be selected by Oklahoma Fidelity Bank, in determining whether to make a loan evidenced by a note secured by the Property (“the Mortgage Loan”); (ii) the Report may be relied upon by any purchaser in determining whether to purchase the Mortgage Loan (but not the Subject Property) from that lender, or an interest in the Mortgage Loan or securities backed or secured by the Mortgage Loan, and any rating agency rating securities representing an interest in the Mortgage Loan or backed or secured by the Mortgage Loan; (iii) the Report may be referred to in and included, in whole or in part, with materials offering for sale the Mortgage Loan or an interest in the Mortgage Loan or securities backed or secured by the Mortgage Loan; (iv) the Report speaks only as of its date in the absence of a specific written update of the Report signed and delivered by EBI Consulting.

EBI Consulting is an independent contractor, not an employee of either the issuer or the borrower, and its compensation was not based on the findings or recommendations made in the Report or on the closing of any business transaction.

Thank you for the opportunity to prepare this Report, and assist you with this project. Please call us if you have any questions or if EBI Consulting may be of further assistance.

Respectfully Submitted,EBI CONSULTING

Richard GriffittsAuthor / Project Engineer

Frank Beck, P.E.Reviewer / Senior Engineer [email protected] (Pacific Time)

mailto:[email protected]

Property Condition Report Palazzo Park Apartments EBI Project #1116002094 6030 South Newport Avenue, Tulsa, Oklahoma

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TABLE OF CONTENTS

EXECUTIVE SUMMARY TABLE ............................................................................................Exhibit AEXECUTIVE SUMMARY & PROPERTY DESCRIPTION .........................................................................1

General Description...........................................................................................................................................1Subject Property Summary...............................................................................................................................1Subject Property Description ..........................................................................................................................2Municipal Information & Zoning......................................................................................................................4

1.0 PURPOSE & LIMITATIONS ...........................................................................................................52.0 SITE CONDITIONS.......................................................................................................................7

2.1 Topography...................................................................................................................................................72.2 Pavement and Parking ................................................................................................................................72.3 Landscaping, Site Improvements & Site Amenities ..............................................................................82.4 Municipal Services & Utilities....................................................................................................................92.5 Natural Hazards ........................................................................................................................................10

3.0 BUILDING CONDITIONS............................................................................................................123.1 Substructure...............................................................................................................................................123.2 Superstructure...........................................................................................................................................123.3 Facades ........................................................................................................................................................123.4 Roofing ........................................................................................................................................................133.5 Basements/Attics.......................................................................................................................................143.6 Americans With Disabilities Act (ADA) Accessibility......................................................................143.7 Interior Finishes & Components ...........................................................................................................163.8 Suspect Mold and Moisture ....................................................................................................................18

4.0 BUILDING SYSTEMS...................................................................................................................204.1 Building Plumbing ......................................................................................................................................204.2 HVAC ..........................................................................................................................................................204.3 Building Electrical ......................................................................................................................................214.4 Building & Site Fire & Life Safety............................................................................................................224.5 Elevators......................................................................................................................................................23

5.0 MATERIAL CODE VIOLATIONS .................................................................................................245.1 Planning & Development Department, Development Services Division .....................................245.2 Fire Department........................................................................................................................................24

6.0 REFERENCES.............................................................................................................................. 256.1 References Contacted .............................................................................................................................25

7.0 IMMEDIATE REPAIRS AND REPLACEMENT RESERVES................................................................267.1 Table 1 - Immediate Repairs...................................................................................................................267.2 Table 2 - Replacement Reserves ...........................................................................................................26

APPENDIX A - PHOTOGRAPHS

APPENDIX B - FIGURES, DRAWINGS, AND PLANS

APPENDIX C - OTHER RELEVANT DOCUMENTS

APPENDIX D – PROFESSIONAL QUALIFICATIONS

EBI Consulting Executive Summary Table

E X E C U T I V E S U M M A R Y T A B L E

Property Name: Palazzo Park Apartments Property Type: Multi-familyAddress: 6030 South Newport Avenue Property Age: 40

City and State: Tulsa OK No. of units or tenants: 41Site Survey Date: August 19, 2013 Square feet: 28,225

Report Date: August 19, 2013 Loan Term: 20EBI Project #: 1116002094 Analysis Term: 22

Section Condition Action Immediate Replacement

# Section Name Excellent Good Fair Poor NA Required Repairs Reserves

SITE CONDITIONS

2.1 Topography and Drainage a a $0

2.2 Pavement and Parking a a $8,505 $7,020

2.3 Site Amenities & Landscaping a a a $16,400

2.4 Utilities aBUILDING CONDITIONS

3.1 Substructure a3.2 Superstructure a a $2,500

3.3 Facades (Walls, Windows & Doors) a a a $17,500 $30,750

3.4 Roofing a $38,809

3.5 Basements/Attics a3.6 ADA Compliance a a $1,975

INT. FINISHES & COMPONENTS

3.7 Interior Finishes & Components a a a $3,900 $187,250

3.8 Suspect Mold aBUILDING SYSTEMS

4.1 Plumbing a $14,400

4.2 HVAC a a $91,200

4.3 Electrical a a $52,980

4.4 Fire/Life Safety a a $2,500

4.5 Elevators aMATERIAL CODE VIOLATIONS

5.0 Codes aOTHER STRUCTURES, AMENITIES, SPECIAL INTEREST ITEMS

None

TOTALS: $106,260 $369,429NA NA

Dollars

per unit/yrPresent Value of Replacement Reserves Cost Estimate $410 $369,429Inflated Value of Replacement Reserves Cost Estimate $521 $470,032Immediate Repairs Cost Estimate $106,260Total Deferred Maintenance Cost Estimate, After Multiplier $132,825


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EXECUTIVE SUMMARY & PROPERTY DESCRIPTION

GENERAL DESCRIPTION

The Subject Property, known as Palazzo Park Apartments, is located in Tulsa, Oklahoma at 6030 South Newport Avenue. The Subject Property was reportedly constructed in 1973. The Subject Property consists of a 41-unit, 28,225 net rentable square foot1, apartment complex with two, two-story, apartment buildings, located on a 1.12-acre lot. The buildings contain no basement.

Richard Griffitts of EBI surveyed the Subject Property on April 26, 2016 and was accompanied by, Mr. Troy Jones, Subject Property Maintenance Supervisor and interviewed, Mr. Jones and Ms. Terrace Jones,, Subject Property Manager. At the time of the survey, the weather was sunny and approximately 85º Fahrenheit. During the survey, representative areas of the site, buildings, common areas, mechanical spaces, mechanical equipment and building components were observed, and more than 10 percent of the apartment units were surveyed.

EBI's Pre-Survey Questionnaire was forwarded to the designated property contact. The information requested in the questionnaire assists in EBI’s research of the Subject Property to obtain pertinent property data, discover existing physical deficiencies, chronic problems, the extent of repairs, if any, and their costs, and pending repairs and improvements. The Pre-Survey Questionnaire was not returned as of this Report. If the questionnaire is returned at a later date showing a material difference from information provided in this Report, EBI will forward the questionnaire under separate cover. If no response is received, or no material difference is noted in the questionnaire, EBI’s Report will not be modified.

The Subject Property appears to be in fair condition. It is EBI’s professional opinion that the Remaining Useful Life (RUL) of the Subject Property is estimated to be not less than 35 years, based on its current condition and maintenance status, assuming any recommended Immediate Repairs or Replacement Reserves are completed, and appropriate routine maintenance and replacement items are performed on an annual or as-needed basis. Please see the Executive Summary Table for a compilation of recommended Immediate Repairs and/or Replacement Reserves.

SUBJECT PROPERTY SUMMARY

The following summary describes and comments on the primary Subject Property components. Please see the body of the Report for complete survey results for all sections.

PAVEMENT & PARKINGThe Subject Property is improved with asphalt-paved vehicle parking areas located at the front and side of the buildings with asphalt travel lanes. Two drives provide egress and ingress from adjacent road frontage to the Subject Property.

Overall Condition Fair

LANDSCAPING & AMENITIESThe Subject Property has moderate landscaping located at the building and site perimeters, and in central areas between buildings. The property amenities include building-mounted signage, concrete sidewalks, one laundry facility, steel fencing at the Subject Property perimeters, and a community/leasing building (located in apartment unit 3).

Overall Condition Good to Fair

1 Square footage obtained from rent roll.


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BUILDING STRUCTURE & FACADESThe building structures consist of dimensional wood studs with pre-engineered wood roof and floor joists. CMU constructed fire walls run lengthways through central areas of the apartment buildings.

The primary exterior material consists of wood siding. The balance of the facades is stone veneer. Contrasting-colored wood trim is present at the building entrances and windows. Stacked single pane single hung windows, and staggered and offset facades, add architectural accent to each building.


ROOFThe Subject Property has low-slope, TPO-membrane roofs.

Overall Condition Good

MAJOR MECHANICAL SYSTEMSThe buildings are heated and cooled by a split-system having roof-mounted HVAC condensers, except for a laundry building, which has a HVAC condenser pad-mounted by the building facade. Individual air handling units located in the buildings have an integrated coil for cooling, an electric heater, and a blower providing air distribution. Each apartment unit contains a 30- or 40-gallon, electric, water heater. Fire and life safety equipment includes various fire alarm devices and controls. An automatic fire sprinkler serves the laundry building.


SYSTEM RESPONSIBILITYMaintenance, repair, and replacement of the roof, facades, landscaping, pavement and parking, mechanical systems, interior finishes, plumbing, electrical, HVAC, life safety systems and components at the property are reportedly the responsibility of the Subject Property owner.

SUBJECT PROPERTY DESCRIPTION

The Subject Property is comprised of the improvements described above, situated on an irregularly shaped parcel with an address of 6030 South Newport Avenue. The Subject Property has approximately 200 feet of frontage along Newport Avenue and 150 feet in depth along South Madison Place.

Local surface arteries, Interstate, and state highway systems provide access to the property. The Subject Property is located just north of East 61st Street, approximately 0.95 mile south of Interstate 44.

The site topography is essentially level sloping very gently to the south.

The Subject Property is improved with three, rectangular-shaped, buildings. The buildings have rough dimensions of 38, 120, and 180 feet in length and 16, 58, and 68 feet in depth, configured so that the buildings are two stories tall on all sides. The basic layout is the same for the observed buildings, with offset breezeways accessed from both sides of each building providing direct access to the first floor apartment units and to stairways leading to second story apartment units.

Based on site observations, the Subject Property has approximately 0.09 mile of asphalt paved parking areas configured with single vehicle parking spaces laid out along driveways located at the east and north Subject Property areas. A system of concrete sidewalks allows access to each of the buildings and the site amenities.


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The Subject Property improvements also include a community/leasing office located in apartment unit 3, a laundry facility, building-mounted signage, one laundry facility, steel fencing at the Subject Property perimeters, and a community/leasing building (located in apartment #3).

The interior finishes of the Subject Property apartments and community/leasing office are finished with average-quality materials typical of multi-family residential properties.

The Subject Property building mix, apartment count, and square footage is reported as follows:

LISTED SUBJECT PROPERTY BUILDINGS & SQUARE FOOTAGES

ADDRESS OR NAME

DATE OF

CONST.

NO. OF FLOORS

APPROX. DIMENSIONS

CONSTRUCTION TYPE

NUMBER OF UNITS

APPROX.GROSS

SQUARE FOOTAGE

Apartment Building1 1973 2 58’ x 180’ 16 20,880

Apartment Building 2 1973 2 68’ x 120’

Dimensional wood framed and CMU

structure, concrete slab on

grade, wood siding and stone veneer

facade.24 16,320

Laundry building 1973 2 16’ x 38’

Dimensional wood framed structure, concrete slab on

grade, wood siding and stone veneer

facade.

1 1,216

Totals: 41 38,416

The Subject Property apartment mix and square footage is reported as follows:

APARTMENT UNIT TYPES AND MIX

TYPE QUANTITYQUANTITY OBSERVED

VACANT UNITS

DOWN UNITS

AVERAGE APARTMENT UNIT AREA

(SF)

TOTAL APARTMENT TYPE AREA

(NRSF)One-bedroom / one-bath 31 8 1 1 625 19,375Two-bedroom / one-bath 4 2 1 0 885 3,540Two-bedroom / two-bath 6 1 0 0 885 5,310

Totals: 40 11 2 2 755 28,225


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APARTMENT UNITS OBSERVEDUNIT # APARTMENT TYPE COMMENTS

3 Two-bedroom / one-bath Occupied by community/leasing. Fair condition. Damaged/missing drawers in kitchen and bathroom.

39 Two-bedroom / one-bath Vacant. Good condition. Wood burning fireplace.35 One-bedroom / one-bath Occupied. Good condition.38 Two-bedroom / one-bath Occupied. Good condition.33 One-bedroom / one-bath Occupied. Good condition.

32 One-bedroom / one-bath Occupied. Good condition. Approximately 50% of floor area by toilet and bathtub appears to have been recently replaced.

26 Two-bedroom / two-bath Occupied. Good condition.27 One-bedroom / one-bath Occupied. Good condition.

24 One-bedroom / one-bath Occupied. Fair condition. Several small areas of uneven floor in living room.

15 One-bedroom / one-bath Occupied. Good condition. Wood burning fireplace.

41 One-bedroom / one-bathDown unit. Poor condition. Used for storage by Subject Property management staff. Located in laundry building containing a laundry room.

The standard apartment unit layout includes a kitchen, living room/dining room and one bath for the one-bedroom and select two-bedroom units, and two baths for select two-bedroom units. The units have standard kitchen appliances including, refrigerators, stoves with exhaust hoods, dishwashers, and food disposals. Approximately 16 of the apartments have a wood burning fireplace. All second level apartments have a wood constructed balcony with all first floor apartments having an on-grade concrete patio.

In general, the Subject Property appears to have been constructed within industry standards and has been marginally well maintained.

According to the property manager, since 2013, approximately 12 kitchen cabinets, 12 bathroom vanities, 5 split system air handlers, 17 split system HVAC condensers, 8 electric water heaters, 8 electric stoves, 12 refrigerators, 6 dishwashers, the building roofs, and 2 pad-mounted property owned transformers have been replaced.

MUNICIPAL INFORMATION & ZONING

MUNICIPAL INFORMATIONReadily available, reasonably ascertainable and publicly viewable municipal records at City of Tulsa and Tulsa County Appraisal District were reviewed at the offices and on-line and/or provided by the site contacts.

Based on review of the Tulsa Appraisal District records the existing property improvements were constructed in 1973 on a 1.124-acre lot. The Appraisal District records also indicate the buildings total approximately 28,740 gross feet.

ZONINGThe municipal zoning office website, Indian Nations Council of Governments (INCOG) was reviewed, and/or the zoning ordinance was reviewed to determine the zoning of the Subject Property. According to the information provided, the Subject Property appears to be located within an “RM-2, Residential Multi-family 2” district, and appears to be a legal, conforming use.


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1.0 PURPOSE & LIMITATIONS

The exclusive purpose of this Property Condition Report (the Report) is to observe the general physical condition and maintenance status of the property, to suggest repair or maintenance items considered customary for the property to continue in its current operation compared to properties of similar age and condition, and to assist a lender to be selected by Oklahoma Fidelity Bank, in determining whether to make a loan evidenced by a note secured by the Property. Reliance upon this Report does not extend to entities or individuals interested in purchasing the subject property. Amendments to EBI’s limitations as stated herein that may occur after issuance of the Report are considered to be included in this Report. EBI’s liability to a purchaser wishing to use this Report is limited to the cost of the Report. By accepting draft and final Reports, Oklahoma Fidelity Bank agrees to these terms and limitations.

The information reported was obtained through sources deemed reliable, a visual site survey of areas readily observable, easily accessible or made accessible by the property contact and interviews with owners, agents, occupants, or other appropriate persons involved with the Subject Property. Municipal information was obtained through file reviews of reasonably ascertainable standard government record sources, and interviews with the authorities having jurisdiction over the property. Findings, conclusions and recommendations included in the Report are based on EBI’s visual observations in the field, the municipal information reasonably obtained, information provided by the Client, and/or a review of readily available and supplied drawings and documents. No disassembly of systems or building components or physical or invasive testing was performed. EBI renders no opinion as to the property condition at un-surveyed and/or inaccessible portions of the Subject Property. EBI relies completely on the information provided during the site survey, or provided or obtained during the writing of the draft Report, whether written, graphic or verbal, provided by the property contact, owner or agent, or municipal source, or as shown on any documents reviewed or received from the property contact, owner or agent, or municipal source, and assumes that information to be true and correct. EBI assumes no responsibility for property information or prior reports withheld or not provided during preparation of the Report for any reason whatsoever. The observations in this Report are valid on the date of the survey. EBI uses the date of first occupancy to establish the Subject Property age.

The contents of the Report are not intended to represent an in-depth acquisition analysis of the Subject Property, including, but not limited to, facades, roof, paving, mechanical, elevator, sprinkler, fire safety and electrical systems or components. Anyone wanting information about the condition or characteristics of these property systems or components should consult the appropriate professional. The extent of the physical survey for the production of this Report has been limited, by contract and agreed upon Scope of Work, (consistent with the guidelines of the ASTM E 2018–08 Scope of Work, as referenced below) to visual observations and a walk through of the property. Assumptions regarding the overall condition of the property have been developed based upon a survey of representative areas of the Subject Property. As such, no representation of all aspects of all areas or components is made.

Immediate Repairs as may be identified during the survey are typically limited to life, safety, health, building code violation or building or property stabilization issues observed at the Subject Property. Routine operational, normal, or customary annual maintenance or preventative maintenance items are not reported or included in this Report.

This assessment is based on the evaluator’s opinion of the physical condition of the improvements and the estimated expected remaining useful life of those improvements, based on his observations in the field at the time of the survey, and the written or verbal information received. The conclusions presented are based on the evaluator’s professional judgment. The actual performance of individual components or systems may vary from a reasonably expected standard and may be affected by circumstances that are not readily ascertainable or viewable, or that occur after the date of the survey.

Where quantities cannot be determined from information provided or physical takeoffs, lump sum estimates, or allowances are used. The costs shown are based on professional judgment and the apparent or actual extent of the observed defect, including the cost to design, procure, construct, and manage the repair or replacement. Where property-unique or specialty equipment is present, EBI relies solely on data regarding maintenance and/or replacement costs provided by the designated site contact or on-site individuals with first-hand knowledge of the specific equipment.

EBI provides Pre-Survey Questionnaires for completion by the designated site or property contact, as provided by Oklahoma Fidelity Bank or their agent. The information requested in the questionnaire assists in EBI’s research of the Subject Property to obtain pertinent property data, discover existing physical deficiencies, chronic problems, the extent of repairs, if any, and their costs, and pending repairs and improvements. If the completed Pre-Survey Questionnaire is not returned as of this Report, this is a limiting factor in EBI’s analysis. If the questionnaire is returned at a later date showing a material difference from information provided in the Report, EBI will forward the questionnaire under separate cover. If no response is received, or no material difference is noted in the questionnaire, EBI’s Report will not be modified.

EBI may not have been provided with roof design or installation details, and may not have been provided with warranty information (see Section 3.4 Roofing). EBI has relied on general industry performance of similar type roofs and general observations of the surface covering of the roof to determine if roof replacement is warranted during the analysis term. EBI is not responsible for roof failure that may occur earlier than estimated due to hidden conditions or defects that cannot be readily ascertainable by general observation.

EBI may not have been provided with façade reports, and cannot opine on costs to repair façades of buildings five stories or more without receipt of current façade reports (see Section 3.3 Facades). EBI has relied on general industry performance of similar façade systems and general observations of the surfaces of the façades to determine if repair or replacement is warranted during the analysis term. EBI is not responsible for façade failures that may occur earlier than estimated due to hidden conditions or defects that cannot be readily ascertainable by general observation.

If the municipality in which the Subject Property is located has governing ordinances requiring façade studies, and a copy is not provided to EBI, this is a limiting factor in EBI’s assessment and analysis. Prudent property management will have had façade reports


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completed on their high-rise property, and if a copy of the report is not provided to EBI, this too, is a limiting factor in EBI’s assessment and analysis.

This Baseline Report was completed in general conformance with ASTM E 2018–08, Standard Guide for Property Condition Assessment: Baseline Property Condition Assessment Process, and with the scope of services approved by the client.

The survey was conducted in a manner consistent with the level of care and skill ordinarily exercised by members of the profession, and in accordance with generally accepted practices of other consultants currently practicing in the same locality under similar conditions. No other representation, expressed or implied, and no warranty or guarantee is included or intended. The Report speaks only as of its date, in the absence of a specific written update of the Report, signed and delivered by EBI.

Any additional information that becomes available after EBI’s survey and draft submission concerning the Subject Property should be provided to EBI so that EBI’s conclusions may be revised and modified, if necessary, at additional cost. This Report has been prepared in accordance with EBI’s Standard Conditions for Engagement, which is an integral part of this Report.

DEVIATIONS FROM THE GUIDE EBI includes an analysis of estimated Replacement Reserves in this Report. EBI uses an approximate threshold of $1,000 in aggregate for reporting Immediate Repair or Replacement Reserve items. Material life, safety, health, fire, or building code violation or building or property stabilization issues observed at the Subject Property will be reported regardless of cost.

CONDITION EBI uses terms describing conditions of the various site, building, and system components. The terms used are defined below. It should be noted that a term applied to an overall system does not preclude that a part or a section of the system or component may be in a different condition.

Excellent The component or system is in new or like new condition and no deferred maintenance is recommended.

Good The component or system is sound and performing its function, and/or scheduled maintenance can be accomplished through routine maintenance. It may show signs of normal aging or wear and tear and some remedial and routine maintenance or rehabilitation work may be necessary.

Fair The component or system is performing, but may be obsolete or is approaching the end of its expected useful life. The component or system may exhibit evidence of deferred maintenance, previous repairs, or workmanship not in compliance with commonly accepted standards. Significant repair or replacement may be recommended to prevent further deterioration, restore it to good condition, prevent premature failure, or to prolong its expected useful life.

Poor The component or system has either failed or cannot be relied upon to continue performing its original function as a result of having exceeded its typical expected useful life, excessive deferred maintenance, or state of disrepair. Present condition could contribute to, or cause, the deterioration of other adjoining elements or systems. Repair or replacement is recommended.

ABBREVIATIONS EBI may use various abbreviations to describe various site, building or system components, or legal descriptions. Not all abbreviations may be applicable to all Reports. The abbreviations most often utilized are defined below.

ACT Acoustic Ceiling Tile FOIA Freedom Of Information ActABS Acrylonitrile Butadiene Styrene FRT Fire Retardant-treated PlywoodADA Americans with Disabilities Act GFCI Ground Fault Circuit InterrupterADAAG Americans with Disabilities Act Accessibility Guidelines GWB Gypsum Wall BoardAHU Air Handling Unit HCA Handicapped-accessibleAPA American Plywood Association HID High-intensity Discharge (lighting)BTU British Thermal Unit (a measurement of heat) HVAC Heating, Ventilating, and Air ConditioningBTUH British Thermal Units per Hour kVA Kilovolt AmpereCFM Cubic Feet per Minute kW KilowattCMU Concrete Masonry Unit MBH Thousand BTUs per HourCPVC Chlorinated Poly Vinyl Chloride MDP Main Distribution PanelDHW Domestic Hot Water OSB Oriented Strand BoardDWH Domestic Water Heater PTAC Packaged Terminal Air Conditioning (Unit)EIFS Exterior Insulating Finishing System PVC Poly Vinyl ChlorideEPDM Ethylene Propylene Diene Monomer RFI Request for InformationEUL Expected Useful Life or Effective Useful Life RTU Roof Top UnitFF&E Fixtures, Furnishings & Equipment RUL Remaining Useful LifeFCU Fan Coil Unit TPO Thermoplastic Poly OlefinFEMA Federal Emergency Management Agency UBC Uniform Building CodeFHA Forced Hot Air or Federal Housing Administration VAV Variable Air VolumeFHW Forced Hot Water VCT Vinyl Composition TileFIRM Flood Insurance Rate Map VWC Vinyl Wall Covering

Updated 07-16-14


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2.0 SITE CONDITIONS

2.1 TOPOGRAPHY

DESCRIPTIONThe Subject Property is essentially level sloping very gently to the south. An elevation difference of approximately five feet or less appears to occur between the upper and lower most areas of the Subject Property.

CONDITIONNo topography problems were reported or observed. Detriments or problems such as ground fractures, settlement areas, or chronically standing water were not observed; although, Immediate Repairs are recommended for backfilling areas of soil erosion identified at the southeast exterior of Apartment #19 and along the sidewalk by Apartment #15.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Backfill soil erosionPlease see Table 2 – Replacement Reserves for the recommended items listed below: None

2.2 PAVEMENT AND PARKING

DESCRIPTIONAccording to a count in the field, the property is improved with parking areas for 50 cars. See Section 3.6 Americans With Disabilities Act (ADA) Accessibility for additional handicapped-accessible parking information. The parking areas have asphalt pavement with concrete aprons at egress/egress drives.

The parking is configured in lots toward the front and side of the buildings. Two drives provide egress and ingress to the Subject Property from west and east adjacent road frontages. The parking area has cast-in-place, concrete curbing.

CONDITION No problems were reported regarding the adequacy of the parking areas.

The paved areas are in fair condition. Block cracks totaling approximately 3,500 square feet, approximately five square of damaged pavement in southeast parking area, and cracking, some with protruding grass, observed sporadically located throughout the asphalt pavement. Immediate Repairs are recommended for crack sealing and full-depth repairs of the block cracks.

The parking area striping and pavement sealant is in poor condition, with indications of heavy wear and extensive deterioration of the sealant. Immediate Repairs are recommended for seal coating and striping of the asphalt pavement.

Based on the observed condition of the parking and drive areas, the average effective useful life of concrete and asphalt pavement, asphalt pavement sealants, seal coating, and striping; Replacement Reserve are recommended for repairs to the asphalt pavement, the application of sealants to the asphalt pavement, and striping of the parking area pavement and/or lane markings during the analysis term.


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The curbs are in generally good condition.

The egress/ingress drives have sliding gates for controlling vehicle traffic at the Subject Property. The gates appear to be non-operational. Additionally, the gate at the east egress/ingress was observed to be lock in an open position with a chain, exposed electrical wiring was observed at the electrical motor, and the drive chain and support bracket are detached from the gate and located on the ground below the gate. Immediate Repairs are recommended for repair of the gates to operational condition.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Patching, crack sealing, seal coating, and striping of asphalt pavement Full-depth asphalt repairs and overlay of block cracks Repair gatesPlease see Table 2 – Replacement Reserves for the recommended items listed below: Patching, crack sealing, seal coating and striping of asphalt pavement

2.3 LANDSCAPING, SITE IMPROVEMENTS & SITE AMENITIES

DESCRIPTIONThe Subject Property has moderate and established landscaping at the site/building perimeters and in central areas between the buildings. Ms. Jones stated the Subject Property does not have that an automatic irrigation system in the landscaping; although, two sprinkler heads were observed in the landscaping located to the southeast of the laundry building.

The Subject Property is identified by signage mounted on steel fencing by the ingress/egress drives. Building number signs are mounted on the building exteriors and apartment unit number signs are located at each apartment entry.

Sidewalks constructed of poured in place concrete are provided for pedestrian traffic access between the parking areas, buildings, and other site amenities.

Building-mounted light fixtures provide illumination of the Subject Property.

Exterior stairways located in breezeways provide access to the second story apartments. The exterior stairways are constructed of wood steps, wood stringers, and wood railing.

All second level apartments have a wood constructed balcony with all first floor apartments having an on-grade concrete patio. Select patios have wood fencing.

Six foot steel fencing runs along the Subject Property perimeters.

A community/leasing office is located in Apartment #3.

CONDITIONThe property landscaping appears to be in good condition. Landscape maintenance is reportedly handled in-house as an operating expense. The operational status of the irrigation system was indeterminate. Immediate Repairs are recommended for testing the operational condition and repairs of the landscaping irrigation system.


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The sidewalks appear to be in generally good condition; although, areas of deterioration totaling approximately 50 square feet was identified on the sidewalks located by Apartments #1, 9, 19, and 25. One trip hazard was identified on the sidewalk to the north of Apartment #25. Immediate Repairs are recommended for repair of the deteriorated sidewalks and trip hazard.

The exterior light fixtures appear to be in good condition.

The exterior stairways appear to be in generally good condition. Based on the reported age, observed condition and average effective useful life, Replacement Reserves are recommended for painting the exterior stairways during the analysis term and this work has been included with painting of the building exteriors referenced in Section 3.3 of this report.

The patios appear to be in generally good condition.

The balconies appear to be in fair condition. Areas of damaged wood floor joists were observed on the balconies at Apartments #12, 23, 19, and 38. Deteriorated paint observed on the balconies throughout the Subject Property. Immediate Repairs are recommended for repair of the damaged floor joists and painting the balconies. Based on the reported age, observed condition and average effective useful life, Replacement Reserves are recommended for painting the balconies during the analysis term and this work has been included with painting of the building exteriors referenced in Section 3.3 of this report.

The steel fencing appears to be in good condition.

The community/leasing office appears to be in fair condition. Building systems and components of the community/leasing office are anticipated to be replaced during the analysis term. The building systems and components are discussed in other Sections of this Report.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Verify irrigation system is fully functional Repair concrete sidewalks Repair trip hazard Repair balconies Paint balconiesPlease see Table 2 – Replacement Reserves for the recommended items listed below: None

2.4 MUNICIPAL SERVICES & UTILITIES

2.4.1 Water & SewerDESCRIPTIONThe City of Tulsa provides water and sewer services to the Subject Property. The sewer is discharged to a municipal line underlying an adjacent road frontage.

2.4.2 Gas/OilDESCRIPTIONOklahoma Natural Gas (ONG) provides natural gas service to clothes dryers located in a laundry room on the Subject Property. No oil service is provided to the Subject Property.


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2.4.3 ElectricalDESCRIPTIONPublic Service of Oklahoma (PSO) provides electric service to the Subject Property. This service enters the Subject Property underground to pad-mounted transformers located by the exterior of the Subject Buildings; feeding secondary runs to exterior building- and roof-mounted electrical equipment. The building-mounted electrical equipment feeds sub panels located in the apartments. The roof-mounted electrical equipment feeds HVAC condensers. The utility owns and maintains the lines to the buildings; although, the Subject Property owns and maintains the pad-mounted transformers.

2.4.4 Storm DrainageDESCRIPTIONStorm water flow from the Subject Property is directed by the site topography, resulting in sheet flow dispersal to a storm water inlet located in south area of the east parking area, and the adjacent road frontages. Storm water runoff from the roofs is channeled to a system of gutters and downspouts that are located at select areas of the roofs. The drainage system is the responsibility of the Subject Property owner.

OVERALL CONDITION

There were no reported or observed problems with the Subject Property water, sewer, natural gas, electric, or storm water drainage connections, systems, sizes, or capacities. Drainage appears sufficient, as areas of ponding or standing water were not observed during the survey. The utilities appear to be configured and operated in a manner consistent with their intended use, adequate for the use type, and appear to be in good condition.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: NonePlease see Table 2 – Replacement Reserves for the recommended items listed below: None

2.5 NATURAL HAZARDS

DESCRIPTIONS2.5.1 SeismicChapter 16 of the 1997 edition of the Uniform Building Code (UBC) was reviewed to determine the seismic zone of the Subject Property. Chapter 16 includes calculations for, and mapping of, earthquake (seismic) loads on structures. Figure 16-2, Seismic Zone Map of the United States delineates differing ratings of seismic load. These ratings indicate the severity of how horizontal ground motion and sub-surface soil types affect a structure. Figure 16-2 shows the United States having seismic zones ranging from 0 to 4.

2.5.2 Flood ZoneThe Federal Emergency Management Agency (FEMA) maps and rates flood hazard zones throughout the United States. These zones are depicted on a Flood Insurance Rate Map (FIRM), designated by Community Map and Panel numbers. The flood hazard zones range from Zone A or AE (A1 – A130), with Base Flood Elevations (BFE) determined, to Zone X (unshaded), areas outside the 500-year floodplain. EBI utilizes CDYS’ RiskMeter (Transamerica Data) First American Flood Data Services’ Flood Insights mapping system to obtain the Flood Zone Determination of the Subject Property. First American


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Flood Data Services searches the FEMA FIRM map and panel to obtain the Flood Zone Determination of the Subject Property.

CONCLUSIONS

2.5.1 SeismicAccording to Figure 16-2 in the UBC, the Subject Property appears to be located in Zone 1, with a low probability of damaging ground motion.

2.5.2 Flood ZoneThe Subject Property Flood Zone Determination appears to be Zone X500, defined as areas inundated by 500 year flooding, as shown on First American Flood Data Services’ Flood Hazard Certification, Community Map # 405381, Panel # 0353L, dated October 16, 2012.


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3.0 BUILDING CONDITIONS

3.1 SUBSTRUCTURE

DESCRIPTIONThe majority of the Subject Property substructures were not visible due to the surrounding grade. Based on EBI’s visual survey, the buildings appear to have cast-in-place, reinforced concrete foundations and footings supporting load-bearing exterior and interior walls. The substructures include concrete slabs-on-grade.

CONDITIONThe substructures appear to be sound and in good condition. No indications of problems with the substructures were reported or observed.


3.2 SUPERSTRUCTURE

DESCRIPTIONThe superstructures are partially obscured from view by interior and exterior finishes.

Based on observed areas and as reported, the superstructures consist of dimensional wood studs with pre-engineered wood roof and floor joists. CMU constructed fire walls run lengthways through central areas of the apartment buildings.

CONDITIONBased on the overall appearance and observed general condition of the buildings, the superstructures appear to be sound and in good condition. Although, several small areas of uneven floor surface were identified in the living room of Apartment #24. The uneven floor surface appears to be the result of damaged gypcrete located on the wood subfloor and/or carpet padding. Immediate Repairs are recommended for repair of the living room floor. Fire retardant treated plywood was not reported or observed.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Repair floorPlease see Table 2 – Replacement Reserves for the recommended items listed below: None

3.3 FACADES

DESCRIPTION – FACADESDuring the site survey, representative building facades were viewed from the surrounding grade. In depth analysis of the façades is beyond the scope of work for this Report.


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The primary exterior material consists of wood siding. The balance of the facades is stone veneer. Contrasting-colored wood trim is present at the building entrances and windows. Stacked single pane single hung windows, and staggered and offset facades, add architectural accent to each building.

DESCRIPTION – EXTERIOR DOORS AND WINDOWSThe exterior doors consist of average-quality, residential-grade, metal with composite cores set in wood frames.

The buildings have windows that are aluminum-framed, average-quality, single pane, single-hung units.

CONDITIONObserved areas of the facades appear to be in good to fair condition overall. Immediate Repairs are recommended for repair of damaged areas of wood siding sporadically located throughout the building facades.

The observed sealants appear to be in poor condition. Weathered sealant, missing sealant, and damaged sealant were observed on the window exteriors throughout the Subject Property. Immediate Repairs are recommended for renewal of the window sealant.

The painted finishes appear to be in fair condition. Based on the reported age and observed condition of the Subject Property’s painted finishes on the facades, and on other exterior building components, and the average effective useful life of paint coatings, Replacement Reserves are recommended for exterior painting, including trim painting, during the analysis term.

Aside from normal wear, the observed doors appear to be in good condition.

The windows observed appeared to be in good to fair condition.

Exterior areas of the Subject Property buildings to which access was provided, and in which building elements were readily observable, were visually surveyed for the presence of termites or termite activity. No observations were conducted within concealed locations (construction elements behind exterior or interior wall finishes, and other building components, etc.). No disassembly of systems or building components or physical or invasive testing was performed. EBI renders no opinion as to the property condition at un-surveyed and/or inaccessible portions of the Subject Property. During the visual survey of the Subject Property, evidence of termite activity was not observed.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Repair damaged siding Renew window sealantPlease see Table 2 – Replacement Reserves for the recommended items listed below: Exterior painting including trim painting

3.4 ROOFING

DESCRIPTIONDuring the site survey, representative areas of the roofs were observed. EBI was not provided with roof design or installation details, and was not provided with warranty information.


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The Subject Property has low-slope, TPO-membrane roofs. The roofs are flashed with metal flashing.

The roofs are approximately three years old. Select roof areas pitch toward gutters and downspouts.

Additional roof features include standard penetrations for bathroom exhaust and plumbing vents.

CONDITION Gutters and downspouts observed are in good condition.

In estimating the condition and effective useful life of roofs, EBI has relied on general industry performance of similar type roofs and general observations of the surface covering to determine if replacement is warranted during the analysis term. Discussions with tenants and the Subject Property Manager regarding the roof’s condition revealed no negative comments.

The roofs appear to be in good condition. Roofs of this type typically have an average, effective useful life of approximately 20 years, depending on the property's location, material type and quality, quality of installation, roof maintenance and exposure, amount of roof traffic, and regional climatic conditions. Based on the reported age, observed current condition, and average effective useful life, the roofs are expected to reach their life expectancy during the analysis term. Replacement Reserves are recommended for replacement during the analysis term.

The slope and drainage design of each building roof appeared to be generally.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: NonePlease see Table 2 – Replacement Reserves for the recommended items listed below: TPO roof replacement

3.5 BASEMENTS/ATTICS

DESCRIPTIONThe Subject Property has no basement or attic spaces.

CONDITIONNot applicable.


3.6 AMERICANS WITH DISABILITIES ACT (ADA) ACCESSIBILITY

DESCRIPTION The Americans with Disabilities Act (ADA), Title III, 28 Code of Federal Regulations (CFR) Part 36, enacted July 26, 1990 and effective January 26, 1992; and revised on September 15, 2010 to include the 2010 Standards for Accessible Design, which are published in the 2011 CFR, and which went into effect on


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March 15, 2012, governs public accommodation and commercial properties. Title III of the ADA divides facilities into two basic categories: places of public accommodation and commercial facilities, with different obligations for each facility type. The provisions of Title III provide that persons with disabilities should have accommodations and access to public facilities that are equal, or similar, to those available to the general public. Assessment of any other Titles, or their provisions of the ADA, including those that govern employer and/or tenant responsibilities, is specifically excluded from this Scope of Work and Report. Additionally, many jurisdictions have state or local accessibility codes or guidelines that may differ from the ADA and ADAAG. Analysis of these codes is beyond the Scope of Work for this Report. Since tenants and employers at properties are usually responsible for making their leased areas ADAAG-compliant, assessment for ADAAG compliance in these areas was not completed.

Regardless of a property’s age, these areas and facilities must be maintained and operated to comply with the Americans with Disabilities Act Accessibility Guidelines (ADAAG). Facilities initially occupied after the effective date are required to fully comply with the ADAAG. Existing facilities constructed prior to this date are held to the lesser standard of compliance as Title III calls for owners of buildings occupied prior to the effective date to expend “reasonable” sums, and make “reasonable efforts”, to make “practicable” or “readily achievable” modifications to remove barriers, unless said modification would create an undue financial burden on the property or is structurally infeasible. When renovating buildings occupied prior to the effective date, the area renovated, and the path of travel accessing the renovated area, must comply with the ADAAG. As an alternative, a reasonable accommodation pertaining to the deficiency must be made. The definitions of “reasonable”, “reasonable efforts”, “practicable”, and “readily achievable”, are site dependent and vary based on the owner's financial status.

Due to the unique nature of each property, the extent of analysis required, and the many variables of compliance with the ADAAG guidelines, the evaluation of costs for full ADAAG compliance is beyond the scope of this Report. A separate ADAAG Compliance Audit may be ordered and may reveal additional aspects of the property that are not in compliance.

For the purposes of this Report the survey is limited to visual observations of only a representative sample of areas readily observable or easily accessible, and to those areas set forth in EBI’s Modified Accessibility Compliance Checklist and Costs included in Appendix C of this Report. The survey is limited to identifying potential routine maintenance or renovation actions that can increase accessibility over time and may or may not, achieve full ADAAG compliance. Places of public accommodation at the Subject Property were visually observed for general compliance with the major requirements of the ADA, taking into consideration the current use of the property, its age and renovation history. No actual measurements were taken to verify compliance.

If you have additional questions concerning the ADA and the ADAAG, calls can be made to the United States Department of Justice (USDOJ) ADA Hotline at (800) 514-0301 followed by touching “7” on the touch tone keypad. Additionally, information is available online at the USDOJ ADA website at http://www.usdoj.gov/crt/ada/adastd94.pdf or http://www.access-board.gov/adaag/html/adaag.htm.

Multi-family properties fall under the jurisdiction of the Fair Housing Act, as amended in 1988, which governs both private and publicly-funded housing. According to the Fair Housing Act, the Subject Property owner is not specifically required to complete modifications to an older unit or units for compliance with the ADAAG. Existing or prospective tenants must be permitted to make modifications to their units and/or the common areas at their own expense, but these modifications can be completed only to meet their individual needs, and may not be required to conform to the ADAAG. New multi-family housing with four or more units must have provisions to allow access for persons with disabilities in both common areas and apartments. Additionally, the common areas of multi-family complexes (i.e.

http://www.usdoj.gov/crt/ada/adastd94.pdf

http://www.access-board.gov/adaag/html/adaag.htm


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leasing offices, site access, unreserved parking), where it might reasonably be expected that the general public may visit, are governed as public accommodations under the ADA.

CONDITIONPortions of the Subject Property fall into the public accommodation category.

A visual review of the property, in conformance with EBI’s Modified Accessibility Compliance Checklist and Costs, concluded that the Subject Property is not in general conformance with the ADAAG. Modifications recommended to bring the Subject Property into ADAAG compliance are detailed in EBI’s Modified Accessibility Compliance Checklist and Costs included in Appendix C of this Report. Immediate Term Repairs are recommended to complete these modifications.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Complete ADA compliance upgradesPlease see Table 2 – Replacement Reserves for the recommended items listed below: None

3.7 INTERIOR FINISHES & COMPONENTS

DESCRIPTIONThe interior areas into which entry was made possible by the site contact are finished with average-quality materials consistent with similar property use types.

The Subject Property has interior common areas consisting of a community/leasing office. The common areas are finished with average-quality materials.

One laundry room is located in a two-story building containing the laundry room and an apartment used for storage. This laundry room contains four, coin-operated, electric washers, four, coin-operated, natural gas-fired dryers. See Section 4.1 of this Report for more information on water heaters.

TYPICAL INTERIOR FINISHES & COMPONENTSAREA OR

ROOMFLOOR WALLS CEILING

SPECIAL FEATURES, APPLIANCES OR EQUIPMENT

Living Areas, Bedrooms Carpet Painted GWB

Spray-on acoustical texture

Reportedly, approximately 16 apartments have a wood burning

fireplace.

Kitchens Ceramic tile Painted GWBSpray-on acoustical texture

Free standing electric stove with exhaust hoods, refrigerator, dishwasher, painted wood cabinets, plastic laminate countertops, and a single bowl stainless

steel sink.

Bathrooms Ceramic tile Painted GWBSpray-on acoustical texture

Porcelain finished sinks, toilets, and cast iron tubs with surround ceramic tile

shower walls; plastic laminate countertops, painted wood vanities, and standard-grade fixtures and accessories.

Laundry room Ceramic tile Painted GWB Suspended

ceiling tileCoin-operated electric washers and

natural gas-dryers.


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The apartments are furnished with a refrigerator, a free standing electric stove with an exhaust hood, and a dishwasher.

CONDITIONA representative sampling of the common areas and support areas were surveyed, and approximately 10 percent of the apartments were surveyed; comments regarding their condition are listed below.

APARTMENT UNITS OBSERVEDUNIT # APARTMENT TYPE COMMENTS

3 Two-bedroom / one-bath Occupied by community/leasing. Fair condition. Damaged/missing drawers in kitchen and bathroom.

39 Two-bedroom / one-bath Vacant. Good condition. Wood burning fireplace.35 One-bedroom / one-bath Occupied. Good condition.38 Two-bedroom / one-bath Occupied. Good condition.33 One-bedroom / one-bath Occupied. Good condition.

32 One-bedroom / one-bathOccupied. Good condition. Approximately 50% of floor area by toilet and bathtub appears to have been recently replaced.

26 Two-bedroom / two-bath Occupied. Good condition.27 One-bedroom / one-bath Occupied. Good condition.

24 One-bedroom / one-bath Occupied. Fair condition. Several small areas of uneven floor in living room.

15 One-bedroom / one-bath Occupied. Good condition. Wood burning fireplace.

41 One-bedroom / one-bathDown unit. Poor condition. Used for storage by Subject Property management. Down unit located in laundry building.

The common area finishes appear to be in good condition. Based on their reported age, observed condition, and average effective useful life, Replacement Reserves are recommended for common area refurbishment during the analysis term.

Refurbishment of the apartments for re-leasing is completed as part of routine make-ready operations at tenant turnover.

The management reported Apartment #41 as a “down” unit, and this unit was observed. The unit is currently used for storage, otherwise no significant damage areas were noted in the unit. Down units require substantial improvements to make them lease-ready, beyond the scope of standard, tenant, make-ready work. This work can include, but may not be limited to; replacement of interior finishes, repairs to walls and/or ceilings, installation of appliances, major repairs to appliances, installation of or major repairs to HVAC equipment, and replacement of windows and/or doors. Immediate Term Repairs are recommended for refurbishment of the down units.

Based on the physical survey and conversations with property management, the majority of the units have original ceramic tile and carpet of varying age. Based on their observed condition, reported age, and average effective useful life, Replacement Reserves are recommended for flooring replacement during the analysis term.

The table below lists the approximate appliance ages and observed conditions:


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REPORTED APPLIANCE AGE AND CONDITION

APPLIANCEPERCENTAGE 0-5 YEARS OF

AGE

PERCENTAGE 6-10 YEARS OF

AGE

PERCENTAGE 11-15 YEARS

OF AGE

PERCENTAGE 16-20 YEARS

OF AGECONDITION

Refrigerators 50 50 0 0 Good to FairStoves 50 50 0 0 Good to Fair

Dishwashers 20 15 65 0 Good to Fair

Based on the reported replacement policy, observed conditions, reported age, and the average effective useful life, Replacement Reserves for refrigerator, stove, and dishwasher replacement are recommended during the analysis term.

Approximately 70 percent of the units have original kitchen cabinetry and countertops and bathroom vanities. Cabinets and countertops are replaced as a part of routine, tenant turnover work.

The washers and dryers in the laundry room are owned and maintained by Subject Property. The washers and dryers in the laundry room appear to be in fair to poor condition. Two of the dryers are labeled as “out of service”. Immediate Repairs are recommended for replacement of the two “out of service” dryers. Based on the reported age, observed condition, and expected useful life, Replacement Reserves are recommended for washer and dryer replacement during the analysis term.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Renovate down unit Replace “out of service” dryersPlease see Table 2 – Replacement Reserves for the recommended items listed below: Common area refurbishment Carpet replacement Ceramic tile replacement Refrigerator replacement Stove replacement Dishwasher replacement Washer/dryer replacement

3.8 SUSPECT MOLD AND MOISTURE

Interior areas of the Subject Property buildings to which access was provided, and in which building elements were readily observable, were reviewed for the presence of moisture and visible or olfactory evidence of microbial development (suspect mold). No observations were conducted within concealed locations (construction elements behind wall and ceiling finishes, and other building components, etc.). No sampling or testing was performed to confirm the presence of invisible airborne microbial elements. In addition to EBI’s observation efforts, property personnel did not indicate the presence of moisture or suspect mold during the survey. EBI’s Pre-Survey Questionnaire was not returned by the property, therefore no other information was provided.

Representative Subject Property observations and interviews revealed no obvious visual or olfactory indications of the presence of active moisture or suspect mold. No recommendations concerning moisture or suspect mold are made at this time.


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4.0 BUILDING SYSTEMS

4.1 BUILDING PLUMBING

DESCRIPTIONThe observed supply piping is copper and the waste lines are reportedly PVC. The plumbing fixtures are vitreous china and chrome fittings.

Individual, electric, water heaters, 30- or 40- gallons in size are located in each and supply domestic hot water to the Subject Property.

Threaded black iron pipe is used for natural gas piping at the Subject Property.

CONDITIONThere were reported or observed problems with the plumbing system components, operation, or capacities.

The water heaters vary in age, and based on their average, effective useful life and current condition, replacement of the water heaters is anticipated during the analysis term. Replacement Reserves are recommended accordingly.

The bathroom finishes and fixtures observed appeared to be good to fair condition and in working order. Property management indicated that the bathrooms are continuously refurbished at tenant turnover. This includes new bathroom fixtures as required, as well as new vanities.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: NonePlease see Table 2 – Replacement Reserves for the recommended items listed below: Water heater replacement

4.2 HVAC

DESCRIPTIONThe Subject Property is heated and cooled by the following approximate count and size of units:

SUBJECT PROPERTY HVAC UNITS

LOCATIONNO. OF UNITS

MANUFACTURERAPPROX.

TONNAGEAPPROX.

AGETYPE AND COMMENTS

Roof-mounted/ Apartment units 41 NA 1.5, 2 Varies Split-system with electric heat

CONDITIONThere were no reported or observed problems with the HVAC system sizes or operation. The observed mechanical equipment appears to be in good to fair condition, appears to be well maintained.

The heating and cooling components vary in age. The average effective useful life of HVAC condensers of this size and type is 15 years and air handlers is 30 years, depending upon their location, maintenance and use type. Frequently, failure of the remote condenser may require replacement of the interior fan


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coil unit as well, due to different operating parameters of newer and older equipment. Consequently, when the remote condenser requires replacement, the fan coil unit may also require replacement. Based on their average effective useful life, current condition and reported maintenance program, replacement of the HVAC units and air handlers can be anticipated during the analysis term. Replacement Reserves are recommended accordingly.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: NonePlease see Table 2 – Replacement Reserves for the recommended items listed below: HVAC condenser replacement Air handler replacement/refurbishment

4.3 BUILDING ELECTRICAL

DESCRIPTIONThe incoming electric service feeds exterior building-mounted electric meters, feeding sub panels located in the apartment units. The subpanels are rated at 125 amps, 3-wire, 120/240 volts.

The Subject Property reportedly has aluminum wiring and standard electrical devices, switches, and fixtures consistent with the Subject Property use type. GFCI fixtures were not observed in the kitchens and bathrooms during the survey.

CONDITION Due to their low cost and the reduction in potential for injury, installation of GFCI outlets is recommended as an Immediate Repair.

The Subject Property contains aluminum branch wiring. Aluminum branch wiring has historical issues with the possibility of arcing.

The United States Consumer Product Safety Commission (USCPSC) recommends only the most sure and permanent solution is to rewire with copper, however COPALUM Crimp Connector, or AlumiConn connectors are recognized as acceptable alternatives. The COPALUM crimp connector repair consists of attaching a piece of copper wire to the existing aluminum wire branch circuit with a specially designed metal sleeve and powered crimping tool. The metal sleeve is called a COPALUM parallel splice connector and is manufactured only by TYCO Incorporated. This special connector can be properly installed only with the matching tool. This tool makes a permanent connection that is, in effect, a cold weld. An insulating sleeve is placed around the crimp connector to complete the repair.The AlumiConn connector connects a piece of copper wire to the existing aluminum branch wire via a screwed compression fitting.

Electricians often recommend two other repair methods. While these repair methods are substantially less expensive than COPALUM crimp connectors, neither of these repairs is considered acceptable by the Commission staff.

The first repair (“pig tailing”) involves attaching a short piece of copper wire to the aluminum wire with a twist-on connector sometimes called a wire nut; the copper wire is connected to the switch, wall outlet or other termination device. The Commission staff has evaluated the effectiveness of “pig tailing” as a repair. In OPSO-sponsored laboratory testing some brands of twist-on connectors have performed very poorly. Over time, substantial numbers of these connectors have overheated in laboratory tests.


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Surveys of and statements made by electricians and electrical inspectors confirm the highly variable and often poor performance of these connectors when used with old technology aluminum wire. It is possible that some pig tailing “repairs” made with twist-on connectors may be even more prone to failure than the original aluminum wire connections. Accordingly, the Commission staff believes that this method of repair does not solve the problem of overheating present in aluminum branch circuits.

The other repair recommended by the industry uses switches and outlets labeled “CO/ALR.” Underwriter's Laboratories Inc. (UL) lists these devices especially for use with aluminum wire, although they can be used with copper or copper-clad wire. CO/ALR devices perform better with aluminum wire when installed carefully and according to best electrical practices than do the types of switches and outlets usually used in the original installations of old technology aluminum branch circuit wiring. However, CO/ALR connectors are not available for all parts of the wiring system (for example, for permanently-wired appliances and ceiling-mounted light fixtures). In the opinion of the Commission staff CO/ALR devices must be considered to be, at best, an incomplete repair. Further, CO/ALR wiring devices have failed in laboratory tests when connected to aluminum wire typical of that installed in existing homes. The test conditions simulated actual use conditions; no “overstress” type of testing was used.

As a precaution, Immediate Repairs are recommended for COPALUM Crimp connector, or AlumiConn connector, repairs for aluminum to copper connections.

There were no other reported or observed problems with the electrical system sizes or capacities. This utility appears to be configured and operated in a manner consistent with its intended use, and adequate for the use type, with the exception of a damaged electric box observed on the south roof area by Apartment #27.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: Install GFCI outlets Install COPALUM or AlumiConn devices Repair electrical boxPlease see Table 2 – Replacement Reserves for the recommended items listed below: None

4.4 BUILDING & SITE FIRE & LIFE SAFETY

DESCRIPTIONObserved fire and life safety systems serving the buildings include battery-operated smoke detectors. An automatic fire sprinkler is located in the laundry building.

CONDITIONThere were no reported or observed problems with the life safety system sizes or configuration. No information was provided to EBI pertaining to the operational condition and inspection history of the fire sprinkler. Immediate Repairs are recommended for testing; and repair if needed, of the fire sprinkler system.

Please see Table 1 – Immediate Repairs for the recommended items listed below: Test and repair fire sprinklerPlease see Table 2 – Replacement Reserves for the recommended items listed below: None


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4.5 ELEVATORS

DESCRIPTIONThe Subject Property has no elevators.

CONDITIONNot applicable.



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5.0 MATERIAL CODE VIOLATIONS

5.1 PLANNING & DEVELOPMENT DEPARTMENT, DEVELOPMENT SERVICES DIVISION

DESCRIPTIONThe City of Tulsa Planning & Development Department, Development Services Division was consulted for open material violations, and to obtain, “readily available”, “reasonably ascertainable”, or “publicly viewable” documents regarding the Subject Property.

CONCLUSIONThe department interview and/or file review does not show open material violations on the Subject Property.

This municipality provides responses to file inquiries for research purposes. The response time varies on municipal workload. EBI has submitted an inquiry for potential outstanding violations on file for the Subject Property. No response has been received as of this Report. If a response showing a material violation is provided to EBI, EBI will forward that notice under separate cover. If no response is received or no material violations are noted, EBI’s Report will not be modified.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: None

5.2 FIRE DEPARTMENT

DESCRIPTIONThe City of Tulsa Planning & Development Department, Development Services Division was consulted for open material violations.

CONCLUSIONThis municipality provides responses to file inquiries for research purposes. The response time varies on municipal workload. EBI has submitted an inquiry for potential outstanding violations on file for the Subject Property. No response has been received as of this Report. If a response showing a material violation is provided to EBI, EBI will forward that notice under separate cover. If no response is received or no material violations are noted, EBI’s Report will not be modified.

RECOMMENDATIONSPlease see Table 1 – Immediate Repairs for the recommended items listed below: None


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6.0 REFERENCES

6.1 REFERENCES CONTACTED

DESCRIPTIONA number of sources were contacted during the preparation of this Report. The following individuals were interviewed, and state, county, or local municipal departments consulted. Documentation applicable to the Subject Property in those departments was requested and reviewed when and where available and/or reasonably ascertainable.

PROPERTY CONDITION REPORT REFERENCES

ORGANIZATION OR OFFICE

CONTACT AND POSITION /

TITLE

INFORMATION REQUESTED

PHONE NUMBER AND WEB ADDRESS

DATE

City of Tulsa Planning & Development Department,

Development Services Division

Mr. Timothy Camp

Code compliance & violations, Certificates of Occupancy, Fire history &

code violations

405.522.4640 04/28/16

Indian Nations Council of Governments

(INCOG)On line inquiry Zoning information

http://www.incog.org/Land_Development/l

and_main.html04/26/16

Subject Property Manager Mr. Troy Jones Property information 918.355.1733 04/25/16

Subject Property Maintenance Supervisor Ms. Terrace Jones Property information 918.355.1733 04/25/16

Tulsa County Appraisal District On line inquiry Property information

www.assessor.tulsacounty.org/assessor-

property.php/04/28/16

http://www.incog.org/Land_Development/land_main.html



http://www.assessor.tulsacounty.org/assessor-property.php




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7.0 IMMEDIATE REPAIRS AND REPLACEMENT RESERVES

The cost estimates shown on the tables are based on data obtained from the Owner for items already planned, quotes from contractors, EBI's in-house estimating database and EBI’s experience with costs and estimates for similar issues, property and building types, city cost indexes, and assumptions regarding future economic conditions. These projected costs are augmented by cost estimate resource documents such as the National Construction Estimator, R. S. Means Building Construction Cost Data, or R. S. Means Facilities Maintenance and Repair Cost Data, and Marshall Valuation Service publications.

7.1 TABLE 1 - IMMEDIATE REPAIRS

Each of the Immediate Repair items noted during the survey is listed in Table 1 – Immediate Repairs, and is compiled on the Executive Summary – Immediate Repairs and Replacement Reserves table. Items are grouped and cross-referenced by Report section. Immediate Repairs as may be identified during the survey are typically limited to life, safety, health, building code violation, or building / property stabilization issues observed at a Subject Property, and are typically expected to be addressed within 90 days one year.

7.2 TABLE 2 - REPLACEMENT RESERVES

Each of the Replacement Reserve items noted during the survey is listed in Table 2 – Replacement Reserves, and compiled on the Executive Summary – Immediate Repairs and Replacement Reserves table. Items are grouped and cross-referenced by Report section. Routine operational or customary annual maintenance items are not reported or included in this Report.

EBI Consulting Table 1

TABLE 1 - IMMEDIATE REPAIRS Palazzo Park Apartments Site Survey Date: 8/19/2013 Building Area: 28,225

6030 South Newport Avenue Report Date: 8/19/2013 Number of Units: 41

Tulsa OK Property Type: Multi-family Property Age: 40

EBI Project # 1116002094 Number of Buildings: 3 Loan Term: 20

Number of Floors: 2 Analysis Term: 22

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2.1 Topo. Backfill soil erosion 1 $0.00 action item $0 Soil erosion indentified at the southeast exterior of apartment 19 and along the sidewalk byapartment 15.

2.2 Pvm't/Pkg Patching, crack sealing, sealing and striping 17,550 $0.10per square

foot$1,755

Cracking, some with protruding grass, sporadically located throughout the asphalt pavement.Parking area striping and asphalt pavement sealant in poor condition.

2.2 Pvm't/Pkg Full depth asphalt repairs and overlay 3,500 $1.50per square

foot$5,250

Block cracks totaling approximately 3,500 square feet sporadically located throughout theasphalt pavement.

2.2 Pvm't/Pkg Repair gates 1 $1,500.00 allowance $1,500

The egress/ingress drives have sliding gates that open and close in conjunction with vehicletraffic. The gates appear to be non-operational. Additionally, the gate at the eastegress/ingress was observed to be lock in an open position with a chain, exposed electricalwiring was observed at the electrical motor, and the drive chain and support bracket aredetached from the gate and located on the ground below the gate.

2.3 AmenitiesTest operational condition and repair landscaping irrigationsystem.

1 $10,000.00 allowance $10,000The Subject Property Manager, Ms. Jones stated the Subject Property does not have that anautomatic irrigation system in the landscaping; although, two sprinkler heads were observed inthe landscaping located to the southeast of the laundry building.

2.3 Amenities Repair concrete sidewalks 50 $15.00 allowance $750Areas of deterioration totaling approximately 50 square feet indentified on sidewalks located byApartments #1, 9, 19, and 25.

2.3 Amenities Repair trip hazards 1 $150.00 allowance $150 One trip hazard identified on sidewalk to north of Apartment #25.

2.3 Amenities Repair balconies 10 $250.00 allowance $2,500Areas of damaged wood floor joists were observed on the balconies at Apartments #12, 23,19, and 38. Allowance assumes additional damage for balconies not observed.

2.3 Amenities Paint balconies 20 $150.00 allowance $3,000 Deteriorated paint observed on the balconies throughout the Subject Property.

2.3 Amenities None

2.4 Utilities None

BUILDING CONDITIONS

3.1 Substruct. None

3.2 Superstruct. Repair floor 1 $2,500 action item $2,500 Several small areas of uneven floor surface were identified in the living room of Apartment #24.

3.3 Facades Repair damaged siding 1 $10,000 allowance $10,000 Areas of damaged wood siding sporadically located throughout the building facades.

3.3 Facades Renew window sealant 1 $7,500 allowance $7,500Weathered sealant, missing sealant, and damaged sealant were observed on the windowexteriors throughout the Subject Buildings.

3.4 Roof None

3.5 Bsmt/Attic None

3.6 ADA Complete ADA compliance upgrades 1 $1,975 allowance $1,975Complete ADA compliance upgrades as detailed in the Modified Accessibility ComplianceChecklist.

INTERIOR FINISHES & COMPONENTS

3.7 Interior F & C Renovate Down units 1 $2,500 per unit $2,500 Apartment #41, currently used for storage.

3.7 Interior F & C Washer/dryer replacement 2 $700each, # per

year$1,400 Two dryers are labeled as “out of service” in the laundry room.

3.8 Mold None

BUILDING SYSTEMS

4.1 Plumbing None

4.2 HVAC None

4.3 Electric Install COPALUM crimp connectors 41 $1,250per unit per

year$51,250 The Subject Property reportedly has aluminum wiring.

4.3 Electric Install GFI outlets 41 $30 per unit $1,230 GFCI fixtures were not observed in the kitchens and bathrooms during the survey.

4.3 Electric Repair electrical box 1 $500 action item $500 Damaged electric box observed on the south roof area by Apartment #27.

4.4 F/L Safety Test and repair fire sprinkler 1 $2,500 allowance $2,500No information was provided to EBI pertaining to the operational condition and inspectionrecords of the fire sprinkler system located in the laundry building.

4.5 Elevators None

MATERIAL CODE VIOLATIONS

5.0 Codes None

SUBTOTAL $106,2601.25 MULTIPLIER $132,825TOTAL WITH MULTIPLIER $132,825

EBI Consulting Table 2

TABLE 2 - REPLACEMENT RESERVESPalazzo Park Apartments Site Survey Date: 8/19/2013 Building Area: 28,225

6030 South Newport Avenue Report Date: 8/19/2013 Number of Units: 41

Tulsa OK Property Type: Multi-family Property Age: 40

EBI Project # 1116002094 Number of Buildings: 3 Loan Term: 20 2016

Number of Floors: 2 Analysis Term: 22

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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

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SITE CONDITIONS

2.1 Topo. None

2.2 Pvm't/Pkg Patching, crack sealing, sealing and

striping5 5 70,200 17,550 $0.10

per square

foot$1,755 1,755 1,755 1,755 1,755 $7,020

2.3 Amenities None

2.4 Utilities None

BUILDING CONDITIONS

3.1 Substr. None

3.2 Superstr. None

3.3 Facades Exterior painting, per unit 8 6 2 123 41 $250 per unit $10,250 10,250 10,250 10,250 $30,750

3.4 Roof TPO roof replacement 20 3 17 14,113 14,113 $2.75per square

foot$38,809 38,809 $38,809

3.5 Bsmt/Attic None

3.6 ADA None

INTERIOR FINISHES & COMPONENTS

3.7 Interior F & CCommon area refurbishment - lump

sum 8 6 2 3 1 $4,500 lump sum $4,500 4,500 4,500 4,500 $13,500

3.7 Interior F & C Ceramic tile replacement 35 32 v 34 2 $800each, # per

year$1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 $27,200

3.7 Interior F & C Carpet replacement 7 var var 132 6 $650each, # per

year$3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 3,900 $85,800

3.7 Interior F & C Refrigerator replacement 15 var var 39 3 $400each, # per

year$1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 1,200 $15,600

3.7 Interior F & C Stove replacement 15 var var 39 3 $300each, # per

year$900 900 900 900 900 900 900 900 900 900 900 900 900 900 $11,700

3.7Interior F & C -

older unitsDishwasher replacement 12 var var 48 8 $275

each, # per

year$2,200 2,200 2,200 2,200 2,200 2,200 2,200 $13,200

3.7 Interior F & C Dishwasher replacement 12 var var 38 2 $275each, # per

year$550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 550 $10,450

3.7 Interior F & C Washer/dryer replacement 12 10 2 12 6 $700each, # per

year$4,200 4,200 4,200 $8,400

3.7 Interior F & C Washer/dryer replacement 12 12 2 2 $700each, # per

year$1,400 1,400 $1,400

3.8 Mold None

BUILDING SYSTEMS

4.1 Plumbing Water heater replacement 12 varies varies 72 8 $200each, # per

year$1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 $14,400

4.2 HVAC HVAC condenser replacement - 1-2 ton 15 varies varies 64 8 $550each, # per

year$4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 4,400 $35,200

4.2 HVAC Air-handler replacement/refurbishment 25 varies varies 16 4 $3,500each, # per

year$14,000 14,000 14,000 14,000 14,000 $56,000

4.3 Electric None

4.4 F/L Safety None

4.5 Elevators None

ANNUAL RECOMMENDATIONS, UNINFLATED 27,700 46,650 27,700 21,650 7,805 8,150 8,150 8,150 8,150 24,655 8,150 9,550 11,950 16,150 13,705 14,150 52,959 25,700 8,850 10,605 4,450 4,450 $369,429

INFLATION FACTOR, IN PERCENTAGE 1.025 100.00% 102.50% 105.06% 107.69% 110.38% 113.14% 115.97% 118.87% 121.84% 124.89% 128.01% 131.21% 134.49% 137.85% 141.30% 144.83% 148.45% 152.16% 155.97% 159.87% 163.86% 167.96%

ANNUAL RECOMMENDATIONS, INFLATED @ 2.50% AFTER YEAR ONE 27,700 47,816 29,102 23,315 8,615 9,221 9,452 9,688 9,930 30,791 10,433 12,530 16,071 22,263 19,365 20,493 78,618 39,106 13,803 16,954 7,292 7,474 $470,032

Notes: PRESENT VALUE OF RECOMMENDED TOTAL ANNUAL RESERVES PER UNIT PER YEAR $410

1. INFLATED VALUE OF RECOMMENDED TOTAL ANNUAL RESERVES PER UNIT PER YEAR $521


EBI Consulting 28

APPENDIX A

PHOTOGRAPHS


EBI Consulting 29

1. Viewing southeast toward Subject Property from west adjacent road frontage.

2. Viewing southwest toward Subject Property from east adjacent road frontage.


EBI Consulting 30

3. Exterior view of a building façade.

4. Building façade.


EBI Consulting 31

5. Building façade.

6. Laundry building.


EBI Consulting 32

7. East parking area as viewed from the south.

8. North parking area as viewed from the east.


EBI Consulting 33

9. Block cracking in asphalt pavement.

10. Another view of block cracking.


EBI Consulting 34

11. Damaged pavement area.

12. Cracking with protruding grass.


EBI Consulting 35

13. Handicapped parking by community/leasing office.

14. Gate at egress/ingress drive and electric motor appearing to be non-operational.


EBI Consulting 36

15. Sprinkler head indentified in landscaping.

16. Balcony.


EBI Consulting 37

17. Deteriorated wood framing on balcony.

18. Another view of deteriorated balcony framing.


EBI Consulting 38

19. Deteriorated paint on a balcony.

20. Damaged wood siding in building façade.


EBI Consulting 39

21. Another view of damaged wood siding.

22. A third view of deteriorated wood sidding.


EBI Consulting 40

23. Deteriorated sealant at window.

24. Another view of deteriorated sealant on a window.


EBI Consulting 41

25. Second floor breezeway.

26. First floor breezeway.


EBI Consulting 42

27. Building roof and HVAC condensers.

28. Another view of a roof.


EBI Consulting 43

29. A third roof view.

30. Roof mounted HVAC condensers.


EBI Consulting 44

31. Another view of HVAC condensers.

32. Damaged electrical box on roof.


EBI Consulting 45

33. Apartment kitchen.

34. Another view of an apartment kitchen.


EBI Consulting 46

35. A third view of an apartment.

36. Apartment living room.


EBI Consulting 47

37. Another view of a apartment living room.

38. Apartment bathroom.


EBI Consulting 48

39. Bathroom vanity.

40. Another view of a bathroom vanity.


EBI Consulting 49

41. Apartment bedroom.

42. Water heater.


EBI Consulting 50

43. Another view of a water heater.

44. 110-volt wiring. Note aluminum wiring.


EBI Consulting 51

45. Another view of branch circuit aluminum wiring.

46. Electrical panel located in an apartment.


EBI Consulting 52

47. Split system air handler.

48. Another view of a split system air handler.


EBI Consulting 53

49. Dryers in laundry room.

50. Washers in laundry room.


EBI Consulting 54

51. Apartment used for storage located in laundry building.

52. Fire sprinkler head located in laundry building.


EBI Consulting 55

APPENDIX B

FIGURES, DRAWINGS AND PLANS

EBI GIS

Figure 1: Site Location Map

PN: 1116002094

Source: Selected data fromESRI, EBI & USGS

Date: 4/20/2016·

0 1,000 2,000 3,000500 Feet

Legend

Site Radius_̂ Project Site

at ¼ and ½ mile

PALAZZO PARK APARTMENTS6030 SOUTH NEWPORT AVENUETULSA, OK 74105

FloodInsights Report For:6030 South Newport Avenue, Tulsa OK 74105

36.076490/-95.978129Geocoding Accuracy: MP

Original Input Address: 6030 South Newport Avenue, Tulsa OK 74105

Flood Zone DeterminationsSFHA Within 250 feet of multiple flood zones?Out NoMap Number40143C0353LCommunity Community_Name Zone Panel Panel_Date Cobra405381 TULSA, CITY OF X500 0353L October 16, 2012 COBRA_OUTFIPS Code Census Tract40143 40143006801

This Report is for the sole benefit of the Customer that ordered and paid for the Report and is based on the property information provided by that Customer. That Customer's use of this Report is subject to the terms agreed to by that Customer when accessingthis product. No third party is authorized to use or rely on this Report for any purpose. THE SELLER OF THIS REPORT MAKES NO REPRESENTATIONS OR WARRANTIES TO ANY PARTY CONCERNING THE CONTENT, ACCURACY OR COMPLETENESSOF THIS REPORT, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The seller of this Report shall not have any liability to any third party for any use or misuse of this Report.4/20/2016


EBI Consulting 57

APPENDIX C

OTHER RELEVANT DOCUMENTS

EBI Consulting Modified Accessibility Compliance Checklist and Costs

MODIFIED ACCESSIBILITY COMPLIANCE CHECKLIST AND COSTS

Palazzo Park Apartments6030 South Newport AvenueTulsa OKEBI Project #1116002094

Compliance Checklist Recommended Actions and Estimated Costs

Building History Yes NoNot

ApplicableComments/Disposition

1Has the management previously completed an ADA compliancereview? a

2 Have any ADA improvements been made to the property? a Accesibale parking by community/leasing building

3 Does a Barrier Removal Plan exist for the property? a

4Has the Barrier Removal Plan been reviewed/approved by an arms-length third party such as an engineering firm, architectural firm,building department, other agencies, etc.?

a

5Has building ownership or management received any ADA-relatedcomplaints that have not been resolved? a

6 Is any litigation pending related to ADA issues? a

Parking Yes NoNot

ApplicableComments/Disposition Quantity Unit Price Units Total Cost

1Does there appear to be sufficient handicapped-accessible parkingspaces with respect to the total number of reported spaces? a

2Does there appear to be sufficient van-accessible parking spacesavailable (96” wide/ 96” aisle for van)? a

Provide additional van-accessible parking spaces (1 of every 6 handicapped-accessible spaces) to bringproperty into compliance. Existing stall is not van accessible

1 $250 each $250

3Do the accessible spaces appear to be marked with the InternationalSymbol of Accessibility on the paving? a

4Do the accessible spaces appear to be marked with the InternationalSymbol of Accessibility on a vertically-mounted sign? a

5Do the van-accessible spaces appear to be marked with a sign reading“Van-Accessible”? a

6

Does there appear to be at least one accessible route provided withinthe boundary of the site from public transportation stops, accessibleparking spaces, passenger loading zones, if provided, and public streetsand sidewalks?

a

7Do curbs on the accessible routeappear to have depressed, rampedcurb cuts at drives, paths, and drop-offs? a

Provide ramped curb cuts as necessary along the site's accessible route and at passenger drop-off areas.Provide roughened surface to delineate cuts from adjacent walks or paved areas.

1 $1,500 each $1,500

8Does signage appear to exist directing you to accessible parking andan accessible building entrance? a Provide signage delineating path from parking spaces to accessible building entrance. 1 $150 each $150

Ramps Yes NoNot


1If there is a ramp from parking to an accessible building entrance, doesit appear to meet slope requirements? (1:12) a

2Are ramps that appear longer than six feet (6'-0") complete withrailings on both sides? a

3 Does the width between railings appear to be at least 36 inches? a

4Is there a level landing for every 30 feet of apparent horizontal lengthof ramp, at the top, and at the bottom, of ramps and switchbacks? a

Entrances and Exits Yes NoNot


1Does the main accessible entrance doorway appear to be at least 32inches wide? a

2If the main entrance does not appear to be accessible, are therealternate entrances that appear to be accessible? a

3Does the alternate accessible entrance appear to be able to be usedindependently? a

4Is the door hardware easy to operate (lever/push type hardware, notwisting required, and not higher than 48 inches above the floor)? a Modify or replace current door hardware to bring entrance into compliance. 1 $75 each $75

5Do main entry doors, other than revolving doors, appear to beavailable? a

6If there are two main doors in series, does the minimum spacebetween the doors appear to be 48 inches plus the width of any doorswinging into the space?

a




Paths of Travel Yes NoNot


1Does the main path of travel appear to be free of obstruction andappear to be wide enough for a wheelchair (at least 36 inches wide)? a

2Does a visual scan of the main path reveal any obstacles (phones,fountains, etc.) that appear to protrude MORE than four inches intowalkways or corridors?

a

3Do floor surfaces appear to be firm, stable, and slip resistant (carpetswheelchair friendly)? a

4Does it appear that at least one wheelchair-accessible public telephoneis available? (only required if public phones are provided for thegeneral public)

a

5Does it appear that wheelchair-accessible facilities (toilet rooms, exits,etc.) are properly identified with signage? a

6Is there an apparent path of travel that does not require the use ofstairs? a

7If audible fire alarms are present, does it appear that visual alarms(strobe light alarms) also installed in all common areas? a

Elevators Yes NoNot


1Do the call buttons appear to have visual signals to indicate when acall is registered and answered? a

2 Does the “UP” button appear to be above the “DOWN” button? a

3Does there appear to be visual and audible signals inside carsindicating floor change? a

4Does there appear to be standard raised and Braille marking on bothjambs of each hoist way entrance? a

5Do elevator doors appear to have a reopening device that will stopand reopen a car door if an object or a person obstructs the door? a

6Do elevator lobbies appear to have visual and audible indicators of cararrival? a

7Does the elevator interior appear to provide sufficient wheelchairturning area (51” x 68”)? a

8Do elevator controls appear to be low enough to be reached from awheelchair (48 inches front/side approach)? a

9Do elevator control buttons appear to be designated by both Brailleand by raised standard alphabet characters (mounted to the left of thebutton)?

a

10If a two-way emergency communication system is provided within theelevator cab, does it appear to be usable without voicecommunication?

a

Restrooms Yes NoNot


1Do common area public restrooms appear to be located on anaccessible route? a

2 Do pull handles appear to be push/pull or lever type? a

3Does there appear to be audible and visual fire alarm devices in thetoilet rooms? a

4Do corridor access doors appear to be wheelchair-accessible (at least32 inches wide)? a

5Do public restrooms appear large enough to accommodate awheelchair turnaround (60” turning diameter)? a

6In unisex toilet rooms, does there appear to be safety alarms with pullcords? a

7Do the stall doors appear to be wheelchair accessible (at least 32”wide)? a

8 Do grab bars appear to be provided in toilet stalls? a

9Do the sinks appear to be provided with clearance for a wheelchair toroll under (29” clearance)? a

10Do sink handles appear to be operable with one hand withoutgrasping, pinching or twisting? a

11Do exposed pipes under sink appear to be sufficiently insulated againstcontact? a

12Do soap dispensers, towel dispensers and other accessories appear tobe reachable (48 inches front/side approach)? a




13Does the base of one mirror appear to be mounted no more than 40”from the floor? a

Total Estimated Cost of Handicapped-Accessibility Compliance Recommendations: $1,975

ADA PARKING COUNT REQUIREMENTS

Total Number of Spaces Provided on Property 1-25 26-50 51-75 76-100 101-150 151-200 201-300 301-400 401-500 501-1,000 > 1,001

Minimum Number of Standard Handicapped-Accessible Spaces Required 1 2 3 4 5 6 7 8 9 Two percent (2%) of total space countTwenty (20) spaces, plus one additional

space for every 100 spaces > 1,000

Minimum Number of Accessible Spaces Designated as Van-Accessible 1 1 1 1 1 1 2 2 2 One of every six (1:6) accessible spaces One of every six (1:6) accessible spaces

Total Accessible Parking Spaces Required on Property 1 2 3 4 5 6 7 8 9 Two percent (2%) of total space countTwenty (20) spaces, plus one additional

space for every 100 spaces > 1,000


EBI Consulting 59

APPENDIX D

PROFESSIONAL QUALIFICATIONS

Richard Griffitts Senior Engineer

1609 Blessing Court Norman, OK 73071

Office/Mobile: 469.338.9432 Home: 405.701.1356

SUMMARY OF EXPERIENCE SUMMARY OF EXPERIENCE Mr. Griffitts has extensive experience in conducting Phase I environmental site assessments and Property Condition Assessments for mortgage bankers, real estate owners, developers, investors and private clients throughout the United States of America (including Alaska) and Mexico, and has been in the environmental and engineering field for more than 21 years. He also has experience with performing comprehensive asbestos surveys consisting of sampling, quantifying, and identifying all building systems and components, which may contain concentrations of asbestos minerals in schools, hospitals, commercial buildings, and industrial facilities. Additional experience includes subsurface investigations, UST removal, asbestos abatement, and developing AHERA plans for schools districts in Texas. Prior to graduating from the University of Oklahoma Mr. Griffitts was involved in the residential and commercial construction industries for several years. At EBI, Mr. Griffitts specializes in managing environmental due diligence assessments, and engineering property condition assessments. RELEVANT PROJECT EXPERIENCE · Developed and executed Phase I Environmental Site Assessments using ASTM and client

specific protocols on diverse properties to include major industrial facilities, shopping centers, residential developments, and mobile home parks in numerous states in the US. Consulting services provided included research of specific state and local regulatory requirements and advising clients as to the potential impact on proposed real estate developments, acquisitions, and industrial operations.

· Managed asbestos abatement projects for Baylor Hospital in Dallas, Texas. · Performed comprehensive asbestos inspections including various school districts in the

State of Texas, LTV in Grand Prairie, Texas; TXI in Dallas, Texas; Parkland Memorial and Baylor Hospitals in Dallas, Texas; and various Mental Health and Mental Retardations (MHMR) facilities throughout Texas.

· Non-ASTM tasks performed as part of the Phase I assessments included asbestos

inspection, sampling and analysis, radon testing, lead-based paint assessment, and lead-in-drinking water sampling and analysis.

· Responsible for coordinating and performing Engineering Property Condition and HUD

Surveys required for property transfers and financing of multi-family, hotel, warehouse, retail, nursing homes and office buildings. Responsibilities associated with conducting Engineering Property Condition Surveys include evaluating structural and cosmetic components of properties, including foundations, framing, walls, roofing, interior improvements, mechanical an electrical equipment, pavement, drainage, reading and interpretation of architectural blueprints.

Richard Griffitts Senior Engineer

· Conducted limited Americans with Disabilities Act Compliance Surveys for property

transaction due diligence site assessments. Responsibilities associated with conducting limited Americans with Disabilities Act Compliance Surveys include evaluating facilities for compliance with ADA standard architectural guidelines for disable persons.

EDUCATION The University of Oklahoma: B.S. Construction Science University of Texas at Arlington: Asbestos training including management/planner, contractor/ supervisor, inspector, and air monitoring Other: 8 HR DOT Training, 40 HR HAZMAT Training, 8 HR Chlorine Response Training, Oklahoma Certified Asbestos Inspector

Frank Beck, P.E. Senior Engineer

21 B Street Burlington, MA 01803 Mobile: 425-280-1787

Corporate: 800-786-2346

SUMMARY OF EXPERIENCE

Mr. Beck has over 30 years of experience in the engineering design, construction and assessment fields. He has successfully completed hundreds of project assignments including property transaction due diligence site assessments, building condition engineering evaluations, design and construction of industrial facilities.

At EBI Consulting, Mr. Beck specializes in facilitating real estate transactions. Over the past ten years he has completed over 700 property condition, environmental and construction loan monitoring assessments. Mr. Beck has also completed over 1,400 property condition report reviews.

RELEVANT PROJECT EXPERIENCE

Mr. Beck has managed the preparation of property condition due diligence reports for numerous property owners and financial institutions for portfolios and individual projects throughout the country. Property types included industrial, retail, multi-family apartment, shopping malls, office buildings, HUD, and large-scale commercial developments ranging in size from several thousand square feet to several million square feet. Clients have included The Abbey Company, Allstate Investments LLC, Bear Stearns, Berkadia Commercial Mortgage LLC, Capital One Bank, CB Richard Ellis, General Growth Properties, Holliday Fenoglio Fowler LP, John Hancock Life Insurance Company, JP Morgan Chase Bank, New York Community Bank, NorthMarq Capital, and Northwestern Mutual Insurance Company, . Prior to his tenure at EBI, Mr. Beck was a Project Engineer with over 20 years of experience as a corporate Process, Design and Construction Engineer with Texaco Refining and Marketing, and Shell Oil Products, specializing in construction management and operations of commercial and industrial structures and facilities. In his position as a Construction Manager, Mr. Beck worked on the design, planning, cost estimating and supervision of the onsite project construction for industrial and retail facilities. Mr. Beck has managed over a hundred construction projects ranging from minor building renovations to new construction. In addition, Mr. Beck supervised over a hundred underground storage tank and piping removals and installations, including the supervision of Phase II environmental assessments.

EDUCATION

Bachelor of Science, Mechanical Engineering, Washington State University

PROFESSIONAL REGISTRATIONS/CERTIFICATIONS

Professional Engineer, State of Washington

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