Physical Due Diligence & 3rd Party Reports

jhme was founded by Engineers and our original genetics revolved around Technical Due Diligence for Capital and Sponsorship.  With a passion for excellence, our typical turnaround time is within 5-7 business days depending on the size and scope of the asset(s) (or portfolio of assets).  

Property Condition and Capital Needs Assessment:

The Technical Due Diligence  involved with conducting  a Property Condition Report and Capital Needs Assessment (PCA, PCNA, CNA, PCR) begin with the physical examination of the real estate asset. The existing condition of the property is examined along with a projected analysis of future conditions during the holding period. Construction plans and public documents are reviewed, and regulatory agencies are validated for code compliance. Our Capital Expenditure (CapEx) budget adheres to ASTM Standards, but is always enhanced, or evaluated, within the context of our Client's needs.

The predominant report offerings entail, but are not limited to, the following standards (in conjunction with ASTM):

  • Fannie Mae and Freddie Mac

  • U.S. Housing & Urban Development (HUD)

  • LIHTC / Affordable Housing

  • Private Equity Scope

  • U.S. Small Business Administration (SBA).

CapEx  budget analysis details items and costs affecting the property during a typical holding period. It is included in the PCR report, but offered as a “stand-alone” product.

Zoning Reports will reveal zoning classifications, adjacent land uses, code restrictions (building height, area setbacks, parking, density, etc.) and compliance status with the local municipality.

Entitlement Evaluation Reports (EER) provide a combination of zoning verification documents provided by the local municipality, zoning report (previously mentioned), permit/license review (local municipality, County, State, and Federal) and on-site visit. This review is inclusive of a chronology of planning decisions as they relate to the current property conditions.

Seismic & PML Reports evaluate the structural and seismic condition of a property to assess the Probable Maximum Loss (PML) for the property based upon the evaluated 475-year seismic event. The PML value is not intended to serve as a guarantee of how the property will perform in a seismic occurrence, rather, it is a statistical review intended to suggest how the property will be affected by a probable seismic event.

Third-party Consultant Report Reviews typically entail review of construction documents, prior reports, capital budgeting, etc.

Cost Segregation Analysis services involve identifying assets within a building that can be reclassified into a significantly shorter depreciation class than the building itself.

Detailed Unit Inspections entail a thorough “building inventory” to assess what systems and amenities are in place at the property. Learn more about our comprehensive inspections.