Property Condition Assessment

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1 Property Condition Assessment Inspection Address: 15 Beta St, Rome, GA Inspection Date: 12/19/2007 Prepared For: Mr. Bill Jones The ABC Group 51 Alpha St Report Number: 12373C Prepared By: Champia Corp 336 Lamplighter Lane Marietta, GA Fax Inspector: Christopher Howe / Dr. Tore Knos

2 Report Number: 12373C Page 2 of 34 Table of Contents 1.0 SUMMARY INTRODUCTION STRUCTURE ELECTRICAL HEATING AIR CONDITIONING VENTILATION PLUMBING ROOFING INTERIOR EXTERIOR INSULATION CLOSING COMMENTS 24 APPENDIX A: 25 PHOTOGRAPHS 25 APPENDIX B: 34 SUMMARY OF ROOFTOP EQUIPMENT 34

3 Report Number: 12373C Page 3 of Summary This is a reasonably well built building in which maintenance has been somewhat lacking. The priority items should be roof repairs or replacement. No major electrical deficiencies were noted. The heating and air-conditioning systems are good condition. Updating parts of these HVAC systems may be required within the next few years. The plumbing system was generally found to be fair condition. Updating older plumbing fixtures is required. The flat roofing system is poor condition with numerous areas of damage and active leaks. Reroofing will be required. The exterior walls were found to be good. The asphalt paving is fair. Updating sections of the asphalt paving may be required within the next few years. Cosmetic improvements represent an area where a significant amount of work could be performed. While some cosmetic items are addressed in this report, they are not the intended focus. The improvements suggested in this report are not unusual for a building of this age. No outstanding building code or fire code violations are on record with the local authorities. SUMMARY OF REPAIRS 1.1 SUMMARY OF NECESSARY REPAIRS The following table summarizes the recommendations made in this report that are of an immediate, necessary nature. Recommendations Report Reference Budget Cost (2010 Dollars) Service air conditioning equipment $ $4000 Electrical distribution equipment repairs Minor Repair batteries - Emergency lights Minor Repair loose plumbing fixtures at baths Minor Reroof the EPDM system Over $200,000 Service expired fire extinguishers Minor

4 Report Number: 12373C Page 4 of 34 Repair broken doors left side entry Minor 1.2 SUMMARY OF SHORT-TERM REPAIRS The following table summarizes the recommendations made in this report that should be addressed within the next 2 years. Recommendations Report Reference Budget Cost (2010 Dollars) Fix air leaks at ductwork Minor Replace water damaged drywall at left side entry $ $4000 Repair damaged EIFS at front, sides and parking area $ $ SUMMARY OF UNPREDICTABLE REPAIRS The following table summarizes the recommendations made in this report that are unpredictable by nature, but may require addressing within the next few years. Recommendations Report Reference Budget Cost (2010 Dollars) Replace water damaged ceiling tiles $4000 Repair miscellaneous interior items at office Minor Replace water heaters $ $4000 Improve drop ceiling insulation when renovating $ $4000 Vent bath fans to exterior Minor Recaulk windows Minor Replace windows with broken seals at right and left front $ $4000 Replace broken windows center front Minor Modify grade to stop ponding water at paver front entry $ $4000 Asphalt paving renewal Over $10000 * The timing for replacement of this component is unpredictable. Statistically, it has reached the end of its life expectancy at this time.

5 Report Number: 12373C Page 5 of Introduction As per the request and in the company of Mr. Bob Jones representing The ABC Group and in accordance with our proposal dated 12/21/2007, a visual inspection was performed of the property. Our inspection was limited to identify the existing conditions of the following readily visible building components: Structure Heating System Plumbing System Ventilation System Insulation Fire Protection Systems Electrical System Air-conditioning System Roofing System Exterior Components Interior Components This assessment meets or exceeds the ASTM standard for Property Condition Assessments. This report provides recommendations, preliminary cost estimates and priorities for: remedying major deficiencies, updating ageing major components, and undertaking further detailed investigations. The recommendations are for remedial actions that are considered to be beyond the normal maintenance of the building. Costs are provided for recommendations expected to exceed $3,000. The costs are only intended to provide an order of magnitude. Contractors should be contacted for exact quotations. This report is intended for the exclusive use of our client. Use of the information contained within the report by any other party is not intended and, therefore, we accept no responsibility for such use. Fire pump house

6 Report Number: 12373C Page 6 of DESCRIPTION 3.0 Structure The building is of slab-on-grade construction. The exterior walls are of CMU-concrete masonry units- at sides and rear. The concrete foundations support the exterior CMU walls. The metal roof deck is supported by OWS- open web steel joist. The roof joists are supported by steel frame construction. Steel I beams bear upon metal columns throughout the facility. 3.2 OBSERVATIONS AND DISCUSSION Minor cracks were noted in CMU at both sides of structure. Cracks occur at or near expansion joints designed to allow for movement within the wall. Cracks are less than 1/4inch wide and not deflecting. An older repair was made to cracks using sealant and paint- all appear stable now These cracks are not a major structural concern and no remedial action is considered necessary It is understood that plans are contemplated for the warehouse to add office / call center workspaces. No concerns are noted by the inspection team. 3.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame 3.4 LIMITATIONS The examination of the structural components was visual only; a design review was not undertaken.

7 Report Number: 12373C Page 7 of DESCRIPTION 4.0 Electrical The electrical service feeding the property is overhead and transitions to underground before reaching the transformer at rear of building. The electrical service into the building is underground. The building is equipped with a 2000 amp, 480-volt, three-phase, four-wire electrical service. This capacity was determined by the rating of the main disconnect switch. The main service is divided into the following sub-services: Location Amperage Center rear electric room MDP 2000 amp 408Y/277 PPA 408Y/277 PPB 408Y/277 PPC 408Y/277 Center middle RPE 225 amps 208Y/120 Right side LDP 225amps 480Y/277 RPD 125amps 208Y/120 Right Middle PRL14 600amps 408Y/277 Right Front PRL14B 600amps 408Y/277 Right front Utility Closet RPB 100amps 208/120 PRL2 100amps 480/277 Office Phone Room RPA 100amps 208/120 LPA (lights) 100amps 480Y/277 Several transformers were noted in the building. These are as follows: Location Center rear Exterior Right side interior Right Middle interior Ceiling over office utility room Left side interior Transformer size (kva) 500 KVA 150 KVA 150 KVA Min access- appears to be 100 KVA 150KVA

8 Report Number: 12373C Page 8 of 34 There is a single meter for the building located at center rear exterior. A meter for the site lightning is at front exterior. The distribution panels employ circuit breakers. The wiring examined is a combination of copper and aluminum; however, the majority appears to be copper. Fluorescent lighting is used in the office area. This lighting is typical 480/277volt. Receptacles in office areas are typical 120volt with ground. Emergency exit indicator lighting is present at all exit doors. Egress flood lights are mounted on walls throughout the facility. The exterior fire pump has an electric motor and fire pump control installed at the right front of the property. The pump draws water from two detention ponds on the property. Site lighting is a combination of pole mounted lights and wall packs mounted to building. 4.2 OBSERVATIONS AND DISCUSSION While detailed load calculations were not performed, no problems are suspected with the service capacity The distribution equipment is well arranged Surface rust is present on the panel covers of Subpanels RPA & LPA located in the Utility Closet at the front of the warehouse. A utility sink and mops are contained in this room- mops likely stored against panel covers. No repairs are required Representative samples of accessible wiring were examined and electrical switches were spot tested in the areas inspected. All switches tested operated satisfactorily No major deficiencies were noted. Extension cords were noted in the right front office drop ceiling. These should be replaced with permanent wiring The electrical system and transformer appear to be properly grounded Emergency egress lighting wall packs did not operate when tested. Batteries and or fixtures need replacement The support legs of the fire pump controller are extremely decayed and need immediate repair. Water did not damage interior electrical components of controller. Other panels within the fire pump room have rust and corrosion and should be replaced. 4.3 RECOMMENDATIONS, COSTS, AND PRIORITIES

9 Report Number: 12373C Page 9 of 34 Recommendations Costs Time Frame Fire pump electrical distribution equipment repairs. $3000 Immediate Repair batteries - Emergency lights Minor Immediate 4.4 LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken.

10 Report Number: 12373C Page 10 of DESCRIPTION 5.0 Heating The building is heated by 16 roof-mounted electric heat pump units. The heat pumps are equipped with supplemental electric heating elements. The center rear left/right warehouse section is heated by two electric, ceiling-mounted unit heaters. Thermostats are located thought out all sections of the facility. Appendix B gives details of the roof-mounted equipment. 5.2 OBSERVATIONS AND DISCUSSION While the exact heating capacity was not determined, no problems are suspected. Adequate heating capacity should be available under normal circumstances The heat distribution is considered to be fair and acceptable for present configuration No heat was noted in the metal building additions at rear While it is impossible to predict with certainty when a heat exchanger will fail, the average life for roof top heating systems of this type is 15 to 20 years units are approximately 3 years old Two original units are approximately 12 years old and located at center rear left & right Poor supply air duct connections were noted above the office area. A temperature difference of plus 15 degrees was noted above the drop ceiling compared to the heated office area. Exterior temp during inspection was 45 degrees. Air leaks at ductwork should be sealed above office ceiling Thermostats are protected and locked with a key. Owner should provide keys to buyer. 5.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Fix air leaks at ductwork Minor Immediate 5.4 LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken.

11 Report Number: 12373C Page 11 of DESCRIPTION 6.0 Air Conditioning The building is air-conditioned by rooftop HVAC systems. The total available cooling capacity for the building is 85.5 tons. The air is distributed through the same air handling equipment previously mentioned in the Heating section. Details of the air-conditioning equipment are provided in Appendix B. The building is equipped with a heat pump to provide central air-conditioning and to supplement the heating system. As with all heat pumps in this climate, the system is not designed to handle the entire heating load under all circumstances. The air is distributed through the same air handling equipment previously mentioned in the Heating section. 6.2 OBSERVATIONS AND DISCUSSION While detailed heat gain calculations were not performed, no problems are suspected with cooling capacity The newer units are approximately 3 years old. These units need basic servicing including air filter changes and checking of belts serving blower motors. Observed were dirty filters and damaged belts at numerous units This older two units are approximately 12 years old. Blower motor has been replaced in the center left unit and the filters need replacement. 6.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Service air conditioning equipment. $ $4000 Immediate

12 Report Number: 12373C Page 12 of LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken. Since the heating components were operating at the time of this inspection, the rooftop units were not observed in the cooling mode.

13 Report Number: 12373C Page 13 of DESCRIPTION 7.0 Ventilation The washrooms are ventilated by bath exhaust fans at the ceilings. The offices receive fresh air from the heating and cooling rooftop units. These units are equipped with economizer units, which allow fresh air from the exterior to enter into the return air plenum. This introduction of fresh air helps to improve indoor air quality as well as compensate for air that is expelled through exhaust fans. There are exhaust fans for each building addition at the rear. 7.2 OBSERVATIONS AND DISCUSSION No major deficiencies were noted The washroom exhaust fans operated properly at the time of the inspection. These fans are improperly vented to ACT- drop ceiling above the offices. These should be vented to the building exterior The building addition exhaust fans did not respond when tested. These appear to be electrically turned off. 7.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Vent bath fans to exterior Minor Discretionary 7.4 LIMITATIONS

14 Report Number: 12373C Page 14 of DESCRIPTION 8.0 Plumbing There are three 19-gallons, electric domestic water heater in the utility closet, office ceiling and center rear of warehouse. Men s and women s washrooms are located in the left and right office areas and at center of office areas. The building does have a wet fire sprinkler system with an electric pump and pond at left front. Fire Department Connections FDC- are located at left side of building and at the pump house. The building has a septic system. 8.2 OBSERVATIONS AND DISCUSSION Adequate water pressure appears to be available No active leaks were noted in the supply plumbing pipes The domestic water heaters are approximately 12 years old While it is impossible to predict with certainty when a domestic water heater will fail, these units typically last 15 years. Therefore, updating the water heater may be necessary within the next few years Most plumbing fixtures that were tested operated satisfactorily However, improvements are recommended to the following areas: The middle men s baths toilet should be better secured to the floor. The women s middle toilet leaked when tested and should be repaired The Fire Sprinkler stand pipe is located at the left inside of the warehouse. A service tag states it was serviced/ tested 16 AUG 2007 by GA Automatic Sprinkler Co- Valdosta GA. The fire pump controller is located in the exterior pump house (see Electrical Section) Building owner could not provide details on the servicing of the septic system. With an unknown history Champia recommends the system be pumped prior to occupation. No seepage or leaking was observed at the septic location during inspection.

15 8.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Report Number: 12373C Page 15 of 34 Recommendations Costs Time Frame Replace water heaters $ $4000 Unpredictable Repair loose plumbing fixtures at bathrooms Minor Immediate 8.4 LIMITATIONS The internal evaluation of the septic system is beyond the scope of this assessment.

16 Report Number: 12373C Page 16 of DESCRIPTION 9.0 Roofing The building is covered by a single-ply EPDM rubber membrane on one level. The membrane is covered by large-stone ballast. Metal flashing is used to cap the parapet wall around the building perimeter. Skylights are installed throughout the warehouse. The center office area has a painted galvanized metal roof. The roof drainage is via an interior collection system. Water is directed to these drains via a designed slope. Water is collected and deposited to rear of building Metal building additions at rear have metal galvanized roof panels. 9.2 OBSERVATIONS AND DISCUSSION The EPDM rubber membrane appears to be in poor condition. This installation is estimated to be original 12 years old. This type of system has an average life expectancy of 15 to 20 years The majority of problems found with single-ply membranes to date relate to incorrect installations and subsequent seam failures. This appears to be a single-ply installation. Two-ply installations are more desirable, as they tend to have longer life expectancies. No improvements are considered practical. The membrane is not properly adhered to the metal drip edge at the parapet perimeters. This should be repaired. The skylight flashings appear to be in poor condition. It is not uncommon to encounter problems with leakage around skylight flashings. From inside the warehouse they are leaking at some locations Tears in EPDM roof is present at nearly all HVAC curbs and is allowing water to entry building.

17 Report Number: 12373C Page 17 of The EPDM roof is considered to be in poor condition and, ideally, should be replaced. Existing roofing materials should be removed before adding a new membrane Evidence of water penetration was found around the skylights Metal roof at front center office are in serviceable condition Metal roof panels at rear addition are in serviceable condition. 9.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Reroof the EPDM areas. Over $200,000 Immediate 9.4 LIMITATIONS

18 Report Number: 12373C Page 18 of DESCRIPTION 10.0 Interior The office ceiling finishes consist of suspended ACT- acoustical ceiling tiles. The office wall finishes consist of steel studs and drywall with paint or wall paper. The office floor coverings consist of carpet or VCT vinyl composite tile. Warehouse has open ceilings to framing and roof decking. Walls are structural concrete block at sides, nonload bearing steel stud and drywall at middle, nonload bearing CMU abutting office areas. Warehouse floor is raw or painted concrete OBSERVATIONS AND DISCUSSION Considering the age of the building, walls are relatively plumb, doorjambs are square and floors are reasonably level Drywall has water damaged and mold is present at left side office entry. Likely this is from damaged roofing at above location. Drywall should be removed and replaced. (Mold was not tested for toxicity) Water stains were noted at drop ceilings in the office areas. This occurs throughout and will likely require the replacement of most tiles Sink cabinet bottom is decayed at center front break room and needs replacement Toilet partition walls are loose throughout bathrooms and needs repair or replacement Fire extinguishers are observed throughout the facility. The inspection tags show FEB 2007 as expiration dates. Extinguishers need servicing On the whole, the interior finishes are fair RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Replace water damaged ceiling tiles. $4000 Discretionary

19 Report Number: 12373C Page 19 of Replace water damaged drywall at left side entry Repair miscellaneous interior items at baths/ break rooms $ $4000 Immediate Minor Unpredictable Service expired fire extinguishers Minor Immediate 10.4 LIMITATIONS

20 Report Number: 12373C Page 20 of DESCRIPTION 11.0 Exterior The exterior walls are solid masonry at both sides and rear. The front exterior walls are clad with EIFS (Exterior Insulation and Finish System- aka Synthetic Stucco, Dryvit). The ceilings of the covered parking also have EIFS installed. The front entrance doors and windows are aluminum-framed, double-glazed units. All windows are fixed glazing. The exit doors at the warehouse areas are steel units. The overhead garage doors are metal sectional units. There are 2 loading docks in the left and right rear façade. The Left and Right rear additions have metal galvanized siding. There is a poured-concrete sidewalk around the perimeter of the building. Concrete pavers patio is located at center front entry. There is asphalt paving parking at right, left and rear of property. A total of 109 spaces were counted with 2 being marked as handicapped. An asphalt drive runs past the front entry. There are two fire pump ponds at the left front side of the building. The present owners sign is attached to the front façade. A flagpole is installed at center front of property.

21 11.2 OBSERVATIONS AND DISCUSSION Report Number: 12373C Page 21 of The exterior masonry is in good condition. Sealing of expansion joints is required when normal paint maintenance is performed The EIFS cladding requires attention to improve weather tightness. Cracks and damage are present throughout the facade, columns and parking ceilings. Sealant can be used at some locations but EIFS repairs will be required at most. This should be a high priority to keep water from damaging interior finishes The metal siding at the additions has minor damage and is loose /separating. The separation should be secured/ repaired The office entry doors are in fair condition condition. The left side entry door did not close and needs adjustment The overhead doors are in fair condition. The automatic overhead door openers operated properly at the time of the inspection. Weather strips are damaged on most and will need replacement The caulking around the windows and in the exterior wall expansion joints is deteriorated and should be renewed The right front windows have lost their seal and condensation has formed between the glazing. Windows at left front have loose gaskets and likely will become fogged as time progresses. These windows need only be replaced for cosmetic reasons Center right window has a hole through the glass and will need replacement The site grading is considered to be good. Ponding of water has occurred at paver patio at front entry The interlocking pavers patio at the front entry has settled at the in the center. This may pose a tripping hazard. Repairs are likely because this is the front entry to the building The asphalt paving is in poor condition. Alligator and spalling has occurred as would be typical for a parking area of this age. Sealing may extend the life of the parking areas Concrete curb and gutters are damaged at some locations. Minor repairs maybe required Flagpole hardware is damaged and needs servicing RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Repair damaged EIFS at front, sides and parking ceiling $ $5000 One Year Repair broken doors- left side Minor Immediate Recaulk windows. Minor Unpredictable Replace windows with broken seals at right and left office. $ $4000 Discretionary Replace broken windows Minor Discretionary Modify grade to stop ponding water at $ $4000 Discretionary

22 Report Number: 12373C Page 22 of pavers- front entry Asphalt paving renewal Over $10000 Discretionary LIMITATIONS Trucks and equipment was being loaded through most of the overhead doors, limiting the inspection in this area.

23 Report Number: 12373C Page 23 of DESCRIPTION 12.0 Insulation The presence of insulation in the exterior walls could not be verified. It is quite possible that little or no insulation is present. The cavity in the exterior masonry walls is typically minimal. It is probably not economically viable to fill this cavity with insulation. The amount of insulation in the flat roof could not be ascertained. This is likely 2 or 3inch insulation board and part of the EPDM roofing system. NO insulation was noted in the drop ceiling at office OBSERVATIONS AND DISCUSSION The amount of insulation noted on the roof is considered typical for a building of this age The recommended amount of insulation in flat roofs is R-10 to R-20. This can be checked when reroofing and upgraded, if necessary The amount of insulation in the drop ceiling is below modern standards. The recommended amount of insulation in attic spaces is R RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Improve drop ceiling insulation when renovating. $ $4000 Discretionary 12.4 LIMITATIONS

24 Report Number: 12373C Page 24 of Closing Comments This report provides you with an overview of the condition of the major components in the building. Should you have any questions, please do not hesitate to contact us. The Brooks County Building Inspection Department was contacted to inquire for outstanding permits for the facility. NO outstanding permits are open for the property. The Brooks County Fire Service was contacted to inquire if the building has fire /safety violations against it. No recorded violations are shown in the records. Ms. Cynthia Peelor was the contact at Fire Department Please find photographs documenting several conditions noted in Appendix A. Please find a summary of the rooftop heating and cooling equipment in Appendix B.

25 Report Number: 12373C Page 25 of 34 Appendix A: Photographs Photo 1 Front view Photo 2 Crack in CMU wall- typical 3.2.1

26 Report Number: 12373C Page 26 of 34 Photo 3 Meter at rear Photo 4 Surface rust utility closet Photo 5 Rust at fire pump 4.2.8

27 Report Number: 12373C Page 27 of 34 Photo 6 Rust on base of Fire Controller Photo 7 Damaged HVAC belt- typical Photo 8 Dirty HVAC filters typical 6.2.2

28 Report Number: 12373C Page 28 of 34 Photo 9 Rear addition vents Photo 10 FDC at pump building Photo 11 FDC at left side 8.2.7

29 Report Number: 12373C Page 29 of 34 Photo 12 Roof overview Photo 13 Metal roof at office and parapet separation Photo 14 Tears in roof membrane typical 9.2.4

30 Report Number: 12373C Page 30 of 34 Photo 15 Separation / delaminating of roof patching Photo 16 Damaged roof membrane Photo 17 Mold on walls of bath and entry

31 Report Number: 12373C Page 31 of 34 Photo 18 Water stains on ceiling- one of many! Photo 19 Rotted break room sink bottom Photo 20 Expired fire ext inspect

32 Report Number: 12373C Page 32 of 34 Photo 21 Damaged EIFS Photo 22 Damaged EIFS at parking ceiling Photo 23 Sealant / caulk at joints 11.2

33 Report Number: 12373C Page 33 of 34 Photo 24 Damaged curbs- typical Photo 25 Low water at fire pump / detention pond

34 Report Number: 12373C Page 34 of 34 Appendix B: Summary of Rooftop Equipment HVAC Unit # Year Built Cooling Capacity X 1000 BTUs Heating Capacity [output] Operating Mode Makeup Air Manufacturer Area Serviced Comments 4 10 Ton 10kw Auto Yes YORK Left Middle Dirty Filters 2 5 none Auto N/a YORK Left Front kw Auto Yes YORK Left Front Auto Y YORK Left Front Dirty Filters/ Loose control splice Auto Y YORK Left Middle Dirty Filters No label N/A Auto N/A Name worn off Warehouse training room RSM Auto Y YORK Right Middle Belt Damaged RSR Auto Y YORK Right Rear RMR Auto Y YORK Right Mid Rear W1 4 10kw Auto Y YORK Rear West West AC 1 E1 4 10KW Auto Y YORK Rear East East AC 1 85 tons total Small unit with blower unit insidesplit system, like residential

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