Boss just called and asked me to email someone to get property condition/environmental reports. I found the contact who performed them on the same property a few years back, but what do I ask them? “Hey we’re looking to buy a property, can we request technical reports?” We haven’t closed yet but are lining up lenders now.
Any input is appreciated, thanks all.
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Hey Investment Analyst in RE - Comm, I'm here because nobody responded to this thread after a few days...maybe one of these resources will help you:
More suggestions...
Fingers crossed that one of those helps you.
Generally you can ask the seller for a copy of the PCA ( property condition assessment), which they likely had done when they bought the property. However if it has been a while and the report is dated, and they are un willing to get a new one, you will have to schedule your own as part of your 3rd party reporting.
Also, if you want the ability to use someone else’s report, you’ll need to get a ‘Reliance Letter’. The report is specifically for another firm, and so technically, you need to get a reliance letter from the firm saying you can use it for your purposes as well. Usually they make you pay for this as well.
Just to add, a bank isn't going to accept a 1+ year old ESA / PCA most likely.
Not sure if this is 100% true - I think its more case dependent. We're currently in the process of acquiring a building where the owner had a BCA (Building Condition Assessment) done 14 months ago for refinancing. It was forwarded to us once we became conditional and the bank we're using for financing had no problem with it given it was done so recently. I'd imagine if there was any construction done to the property, or a tenant that had the potential to alter the state of the structure (i.e. a chemical manufacturing facility (first thing that came to mind)), then they would ask for one regardless of how much time had elapsed.
You would hire the consultant and get them to issue a report to you. They'll likely need to tour the property, so you'll need to set that up with the seller and current property manager. Are you concerned about confidentiality? If so, it's very common for PCRs to be done during due diligence (which is what you seem to be doing right now), so you're all good there.
Heads up, your lender may want to do their own PCR done by a different consultant. Once the lenders begin their own DD, they'll let you know.
All these responses are terrible.
(1) Send them an email and say "I need a new PCR for 123 Main Street, can you send us a quote"
(2) Show your boss the quote and/or compare it to other quotes received from the firm. If it checks out and nothing has changed at the property since the last PCR then go ahead and set up a tour with the PCR company (they need to see the site).
(3) You'll get a copy of the report. Read it to make sure they don't say anything stupid in it. If they do, tell them to change it.
Done.
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