Inspection Report. Restaurant. South East Building Consultants. Property Address: 19 Indian Trail Lilburn Rd. Norcross GA. Ray Thoroman Atlanta GA

Transcription

1 Page 1 of 43 Inspection Report Restaurant Property Address: 19 Indian Trail Lilburn Rd Norcross GA South East Building Consultants Ray Thoroman Atlanta GA

2 Page 2 of Serving Atlanta GA and the Entire South East

3 Page 3 of 43 Table of Contents Cover Page Table of Contents Intro Page 1 General Physical Condition 2 Utilities 3 Structural Frame and Building Envelope 4 Mechanical and Electrical System 5 Common Areas (Interior) 6 Additional Considerations Summary Invoice

4 Page 4 of 43 Date: 6/24/2013 Time: 09:45 AM Report ID: Property: 19 Indian Trail Lilburn Rd Norcross GA Executive Summary: Customer: Restaurant Real Estate Professional: This is a Property Condition Report "PCR" using the ASTM E2018 as a standard guideline to describe the condition of building or buildings for the property inspected. This process involves observation of the property by a person or entity. It can include interviews of sources, and reviews of available documentation for the purpose of developing an opinion and preparing a PCR of a commercial real estate's current physical condition. At the option of the user, a PCA may include a higher level of inquiry and due diligence than the baseline scope described within this guide or, at the users option, it may include a lower level of inquiry or due diligence than the baseline scope described in this guide. If there are such deviations from this guides scope it should be disclosed in your agreement. A PCR is a written report, prepared in accordance with the recommendations contained in this guide, that outlines the consultants observations, opinions as to the subject property"s condition. In defining good commercial and customary practice for conducting a baseline PCA, the goal is to identify and communicate physical deficiencies to a user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property material systems, components, or equipment as observed during the field observers walk-through survey. This definition specifically excludes deficiencies that may be remedied with routine maintenance, miscellaneous minor repairs, normal operating maintenance, etc., and excludes de minimis conditions that generally do not present material physical deficiencies of the subject property. A walk-through survey, conducted during the field observers site visit of the subject property, that consists of nonintrusive visual observations, survey of readily accessible, easily visible components and systems of the subject property. Concealed physical deficiencies are excluded. It is the intent of this guide that such a survey should not be considered technically exhaustive. It excludes the operation of equipment by the field observer and is to be conducted without the aid of special protective clothing, exploratory probing, removal of materials, testing, or the use of equipment, such as scaffolding, metering/testing equipment, or devices of any kind, etc. It is literally the field observers visual observations while walking through the subject property. The purpose of the PCA is to observe and report, to the extent feasible pursuant to the processes prescribed herein, on the physical condition of the subject property. Deviations from the Guide: Please see signed agreement proposal. Recommendations: It is recommended that the user of this report review both summaries and the entire report. The complete report may include additional information of concern. This property and subsequent building (s) has been inspected by Ray Thoroman of South East Building Consultants. Comment Key and Definitions: The following definitions of comment descriptions represent this inspection report. All comments by the inspector should be considered before purchasing this home. Any recommendations by the inspector to repair, replace, or require immediate attention suggests a second opinion or further inspection by a qualified contractor. All costs associated with further inspection fees and repair

5 Page 5 of 43 or replacement of item, component or unit should be considered before you purchase the property. Inspected: This term means I visually observed the item, component or unit and if no other comments were made then it appeared to be functioning as intended allowing normal wear and tear. The notation does not mean that the item is perfect but does meet a reasonable standard on the day of inspection. Repair or Replace: The item, component or unit is not functioning as intended or needs further inspection by a qualified contractor. Items, components or units that can be repaired to satisfactory condition may not need replacement. Requires Immediate Attention: The item, component or unit needs immediate attention by a qualified professional or contractor for the safety or health of the occupants of the building. Could cause further major deterioration, or complete failure of a system or component. Worsen appreciably, cause damage, or be a serious hazard. Not Inspected: I did inspect this item, component or unit and made no representations of whether or not it was functioning as intended and will state a reason for not testing or operating Building Use: Restaurant Construction Type: Frame and Stucco Number of floors/stories: 1- Story Age Of building: Approximately built in 1985 Client Is Present: No Weather: Part Cloudy Temperature: Over 75

6 Page 6 of General Physical Condition Items A. Basic Information Inspected Hello Kari, Thank you for allowing me to inspect your future building again! During the time you own the building you may call me anytime for information about anything in this report, or anything else you need to know or understand. This Inspection Report will be uploaded to my web server for 3 years after I it to you, the report can be forwarded to anyone by simply forwarding the sent to view the report.if you have any questions please do not hesitate in calling or with any further help regarding the inspection. Thank You, Ray Thoroman South East Building Consultants ray@atlantacommercialbuildinginspector.com B. Purpose and Scope Inspected You have contracted with us to through verbal communication and (s) to perform an inspection in accordance with ASTM industry standards for the commercial inspection profession. This is different from our technically exhaustive inspection which takes several days to complete, involves the use of specialized instruments, the dismantling of equipment, video scanning, destructive testing and laboratory analysis of possible contaminates. Our purpose is to identify defects or adverse conditions that need repair or replacement, are safety concerns or may lead to costs that would significantly affect your evaluation of the property at the time of this inspection. The purpose of the Inspection is to document in a narrative format the condition of the building at the time of the inspection. The inspection is a visual snapshot in time regarding the condition of the systems and components of the building at the time of the inspection and is not a warranty nor an insurance policy, but that should not deter you purchasing such a policy. As with all building systems, components, items, etc; need to be maintained properly though the years. We do not document items which are cosmetic in nature or would be apparent to the average person or document items that pertain to an 30 year old building such as loose door knobs, paint, interior walls, scratches or items of that nature. Pictures are placed in the report as a courtesy to help you understand the reason for the narrative. There is an summary at the end of this report which you could use as a check-list if needed. Please read the entire report. C. Topography Inspected The grounds are generally level around the building with positive drainage away from the structure.

7 Page 7 of 43 C. Item 1(Picture) C. Item 2(Picture) D. Paving, Curbing and Parking Repair or Replace Asphalt parking lot was in general good condition. Several small depressions and average small cracking, you may want to seal these cracks. Some of the concrete curbing was damaged and/or cracked. Recommend general repairs of curbing as needed. D. Item 1(Picture) D. Item 2(Picture) D. Item 3(Picture) D. Item 4(Picture) E. Flatwork (sidewalks, plazas, patios) Repair or Replace

8 Page 8 of 43 Concrete walkways/sidewalks had a few cracks in a few areas. Recommend repairing to prevent further damage or injury. E. Item 1(Picture) F. Landscaping and Appurtenances Repair or Replace As a courtesy the drive thru sign had noticeable damage. Recommend repair as needed. F. Item 1(Picture) F. Item 2(Picture) G. DECKS, BALCONIES, STOOPS, STEPS, AREAWAYS, PORCHES AND APPLICABLE RAILINGS Inspected Styles & Materials General Topography: Flat

9 Page 9 of Utilities Items A. Water Inspected The water source is the public utility company. Main water shut-off was located in rear storage area. A. Item 1(Picture) B. Electricity Inspected The source for electricity is the public utility company. C. Natural gas Inspected The fuel source is natural gas and is supplied by the public utility company. C. Item 1(Picture) D. Sanitary Sewer Inspected Sanitary waste discharges into the municipal sewer at the street.

10 Page 10 of 43 Styles & Materials Water Source: Public Utility Sanitary Sewer: Public sewer system Electric source: Power company Public Utility Gas supply: Natural Gas

11 Page 11 of Structural Frame and Building Envelope Items A. Foundation Inspected B. Building Frame Immediate Attention! There was evidence of water stains at drop ceiling above the main electrical service panels. There was also evidence of water damage (deterioration) and stains at the roof plywood decking in the same area (below the roof electric weather head). Recommend repair the structure damage by qualified roof contractor. Repair all other damage as needed by qualified contractor. B. Item 1(Picture) B. Item 2(Picture) B. Item 4(Picture) B. Item 3(Picture) C. Sidewall System (exterior wall cladding and components) Repair or Replace (1) Stucco cladding was in good condition overall. There were several small hairline cracks around window/door openings. Recommend seal cracks to prevent moisture intrusion.

12 Page 12 of 43 C. Item 1(Picture) C. Item 2(Picture) (2) Landscape ground cover has caused small negative sloping toward the building. It is also in contact with the exterior cladding and lower windows. Recommend correcting issues to prevent moisture damage or wood destroy insects. C. Item 3(Picture) C. Item 4(Picture) C. Item 5(Picture) D. Fenestration System (i.e. windows, openings, doors etc.) Inspected E. Parapets (protective wall barriers at balcony, roof etc.) Repair or Replace

13 Page 13 of 43 Roof parapets had several small hairline cracks at stucco cladding. Sealant at metal cap seams were failing, several areas. Recommend small repairs to prevent further damage or moisture intrusion by qualified contractor. E. Item 1(Picture) Small cracks E. Item 2(Picture) Small cracks E. Item 3(Picture) Repair sealant E. Item 4(Picture) F. Roofing Repair or Replace (1) Roof coverings consisted of front metal pitched roof and TPO (Thermoplastic Polyolefin membrane) at flat roof. The metal roofing was in average condition. I recommend a new sealant coat for protection. The TPO roofing was in good condition for its age. I estimate it to be approximately 10 years old. Average life span of this roofing material varies significantly, but I would reasonably estimate at least 10 more years life. No major leaking was noted. However there was several small puddles of water (from improper condensation piping not draining off roof) which can cause moisture intrusion. Routine maintainece and/or inspections of the covering are recommended. Recommend obtaining estimates for repairing the small dips at TPO covering to prevent moisture damage.

14 Page 14 of 43 F. Item 1(Picture) Faded at metal roofing. Recommend new sealant coat. F. Item 2(Picture) Small dips in TPO covering F. Item 3(Picture) General roof views (2) Small lower roof canopy roofs had peeling paint or damaged top coat sealant. Recommend repair as needed. F. Item 4(Picture) F. Item 5(Picture) G. Gutters and downspouts Repair or Replace Rear gutters had some debris and standing water. Recommend cleaning and adjust slope.

15 Page 15 of 43 G. Item 2(Picture) G. Item 1(Picture) Styles & Materials Foundation: Masonry Slab Roof Structure: Engineered wood trusses Plywood Sheathing Exterior Entry Doors: Insulated glass Siding Material: EIFS Building Type: EIFS (Exterior Insulation Finish System) Attic Insulation: None Window Types: Thermal/Insulated Roof Covering: Metal TPO Roof-Type: Gable Flat Ventilation: None found Siding Style: Cement stucco Viewed roof covering from: Ground Ladder Walked roof

16 Page 16 of Mechanical and Electrical System Items A. Plumbing water supply and Distribution and Fixtures Immediate Attention! Water leak noted at main water piping below main shut-off. Recommend repair by qualified plumber. A. Item 1(Picture) B. Plumbing Drain, Waste and Vent Systems Inspected C. Domestic hot water production Not Inspected (1) Fresh air intake was noted at roof for rear storage (where tank-less water heater was located) room. This may not be needed as it was likely used for the old tank water heater system. C. Item 1(Picture) (2) Tank-less water heater had stored items in front of it and shelving was in direct contact with unit. Minimum 4 inch clearance is required. Gas line did not have a proper shut-off valve. Recommend correct issues by qualified contractor to prevent injury or damage.

17 Page 17 of 43 C. Item 2(Picture) C. Item 3(Picture) C. Item 4(Picture) D. Heating & Air conditioning and Ventilation Equipment Repair or Replace (1) There were 4 roof top HVAC packaged units. Three were in use and one was not in use or operable. The one not in use was 28 years old. I recommend removing the system from the roof. There was one additional stand alone AC unit (small) and it was approximately 6 years old. The other 3 units were 6,8 and 13 years old. The average life of these units are approximately years. I recommend budget replacement accordingly.

18 Page 18 of 43 D. Item 1(Picture) D. Item 2(Picture) Old unit not in use. Recommend removing. D. Item 3(Picture) Small AC unit D. Item 4(Picture) D. Item 5(Picture) D. Item 6(Picture) (2) Roof HVAC unit condensation piping was damaged or did not properly discharge off the roof for all units. Suction line insulation was aged/damaged for all units. General wear/dust was noted at filter, blower motor and service compartments. Electrical wiring conduit was faded/aged/cracked. I recommend general service and repair these items by licensed HVAC contractor.

19 Page 19 of 43 D. Item 7(Picture) Broken condensate line causing standing water D. Item 8(Picture) Broken condensate line causing standing water D. Item 9(Picture) Condensate line not properly connected D. Item 10(Picture) D. Item 11(Picture) D. Item 12(Picture)

20 Page 20 of 43 D. Item 13(Picture) D. Item 14(Picture) Replace suction line insulation D. Item 15(Picture) Replace electrical conduit wiring where needed (3) HVAC thermostat controls. D. Item 16(Picture)

21 Page 21 of 43 D. Item 17(Picture) D. Item 18(Picture) D. Item 19(Picture) E. Electric Service and Meter Immediate Attention! (1) The electrical service conductors at roof weather head are frayed at wire sheathing. There were screws and a neutral wire in contact with the main conductor wiring. This is considered an safety issue. Recommend immediate repair by qualified licensed electrician.

22 Page 22 of 43 E. Item 1(Picture) Frayed outside sheathing E. Item 2(Picture) Frayed outside sheathing E. Item 3(Picture) Safety issue E. Item 4(Picture) Safety issue (2) Electrical service was a 3- phase 600 amp 208/120v system. There were multiple issues noted at the main electrical service panels in rear storage room. One service panel was blocked off with storage shelving (needs 3ft clearance) and the other panels had open knock outs, breakers were not properly identified, and multiple double taps. Right panel C had evidence of excessive heat at several breakers including evidence of water damage from an old roof leak above. Further damage or injury may occur. Recommend correct all issues by licensed electrician.

23 Page 23 of 43 E. Item 5(Picture) Double tapping E. Item 6(Picture) Double tapping E. Item 7(Picture) E. Item 8(Picture) E. Item 10(Picture) Double tapping E. Item 9(Picture) Inaccessible panel. I could not inspect this panel.

24 Page 24 of 43 E. Item 12(Picture) Example of missing knockouts E. Item 11(Picture) Water damage E. Item 13(Picture) E. Item 14(Picture)

25 Page 25 of 43 E. Item 15(Picture) E. Item 16(Picture) E. Item 18(Picture) Improper fasteners used for panel cover E. Item 17(Picture) Inaccessible panel.

26 Page 26 of 43 E. Item 19(Picture) E. Item 20(Picture) E. Item 21(Picture) F. Electric Distribution Repair or Replace (1) Conduit electrical wiring at roof was aged and deteriorated for mechanical equipment, including loose connectors. One section had open end wiring. Recommend repair issues by licensed electrician. F. Item 1(Picture) Open wiring F. Item 2(Picture) Loose/failing connection (2) Open J-boxes noted at parking lot lights. Recommend correct by qualified electrician.

27 Page 27 of 43 F. Item 3(Picture) F. Item 4(Picture) (3) Electrical wiring and receptacle near wash station was not properly secured. Receptacles were damaged/defective. Recommend correct issues by licensed electrician. F. Item 5(Picture) G. Exhaust, Vents Repair or Replace (1) Rooftop kitchen exhaust vent had grease build-up (left side). Recommend clean/maintenance. Also it appears that the old (brown) exhaust system was not in use or it had parts (belts) that were disconnected. Either repair this unit if in use or disconnect it as it is wasting electricity. Middle kitchen exhaust vent also had parts missing or not functioning properly. Recommend repair as needed.

28 Page 28 of 43 G. Item 1(Picture) Recommend cleaning G. Item 2(Picture) Newer exahaust G. Item 3(Picture) Middle exhaust G. Item 4(Picture) Loose/damaged parts for middle exhaust

29 Page 29 of 43 G. Item 5(Picture) Old brown exhaust had missing/loose parts G. Item 6(Picture) G. Item 7(Picture) (2) I did not inspect any refrigeration, chiller, or ice maker equipment at the roof. However as a courtesy several issues were noted with this equipment and general service or maintainece is needed/recommended.

30 Page 30 of 43 G. Item 8(Picture) G. Item 9(Picture) G. Item 10(Picture) G. Item 11(Picture) Aged chiller equipment G. Item 12(Picture)

31 Page 31 of 43 Styles & Materials Plumbing Water Supply (into building): Not visible Water Heater Power Source: Gas (quick recovery) Water Heater Location: Utility Room Energy Source for Heat: Natural gas Cooling Equipment Type: Air conditioner unit Number of AC Only Units: Four Panel Type: Circuit breakers Plumbing Water Distribution (inside building): Copper Water Heater Capacity: Tankless Heat Type: Forced Air Heat System Brand: LENNOX TRANE Cooling Equipment Energy Source: Electricity Electrical Service Conductors: Overhead service Aluminum 3 Phase Electric Panel Manufacturer: ITE Plumbing Waste: PVC Water Heater Manufacturer: NORITZ Number of Heat Systems (excluding wood): Three Ductwork: Non-insulated Central Air Manufacturer: LENNOX TRANE THERMA ZONE Panel capacity: 100 AMP AMP

32 Page 32 of Common Areas (Interior) Items A. Ceiling, Walls, Floors Inspected (1) General interior views. Dinning room was in general good condition. Bathrooms were in general good condition. Rear storage room and kitchen areas were in average condition. A. Item 1(Picture) A. Item 2(Picture) A. Item 3(Picture) A. Item 4(Picture)

33 Page 33 of 43 A. Item 5(Picture) A. Item 6(Picture) A. Item 7(Picture) A. Item 8(Picture)

34 Page 34 of 43 A. Item 9(Picture) A. Item 10(Picture) A. Item 11(Picture) (2) Suspended drop ceiling had several areas of damage at tile, frame and tracks. Recommend repair issues as needed to prevent possible injury or further damage.

35 Page 35 of 43 A. Item 12(Picture) A. Item 13(Picture) A. Item 14(Picture) B. Building Amenities or special features (if any, i.e. spas, fountains, restaurants, etc.) Inspected C. Windows and Doors Repair or Replace Men bathroom door had some damage. Repair as needed.

36 Page 36 of 43 C. Item 1(Picture) Styles & Materials Ceiling Materials: Suspended ceiling panels Wall Material: Paneling Floor Covering(s): Carpet Tile

37 Page 37 of Additional Considerations Additional Considerations: There may be additional or conditions at a property that users may wish to assess in connection with commercial real estate that are outside the scope of this guide (Out of Scope considerations). Outside Standard Practices. Whether or not a user elects to inquire into non-scope considerations in connection with this guide or any other PCA is not required for compliance by this guide. Other standards or protocols for assessment of conditions associated with nonscope conditions may have been developed by governmental entities, professional organizations, or other private entities. Additional Issues: Following are several non-scope considerations that users may want to assess in connection with E 2018 commercial real estate. No implication is intended as to the relative importance of inquiry into such non-scope considerations, and this list of non-scope considerations is not intended to be all-inclusive: Seismic Considerations, Design Consideration for Natural Disasters (Hurricanes, Tornadoes, High Winds, Floods, Snow, etc.), Insect/Rodent Infestation, Environmental Considerations, ADA Requirements, FFHA Requirements, Indoor Air Quality, and Property Security Systems. Items A. Document Review and Interviews Not Inspected No documents were reviewed and no one was present to interview. Only a shift manager was present with limited broken english. B. Out of Scope Considerations Not Inspected Activity Exclusions The activities listed below generally are excluded from or otherwise represent limitations to the scope of a PCA prepared in accordance with this guide. These should not be construed as all-inclusive or imply that any exclusion not specifically identified is a PCA requirement under this guide. Removing or relocating materials, furniture, storage containers, personal effects, debris material or finishes; conducting exploratory probing or testing; dismantling or operation. This should include material life-safety/building code violations. ing of equipment or appliances; or disturbing personal items or property, that obstructs access or visibility. Preparing engineering calculations (civil, structural, mechanical, electrical, etc.) to determine any system s, component s, or equipment s adequacy or compliance with any specific or commonly accepted design requirements or building codes, or preparing designs or specifications to remedy any physical deficiency. Taking measurements or quantities to establish or confirm any information or representations provided by the owner or user, such as size and dimensions of the subject property or subject building; any legal encumbrances, such as easements; dwelling unit count and mix; building property line setbacks or elevations; number and size of parking spaces; etc. Reporting on the presence or absence of pests such as wood damaging organisms, rodents, or insects unless evidence of such presence is readily apparent during the course of the field observer s walk-through survey or such information is provided to the consultant by the owner, user, property manager, etc. The consultant is not required to provide a suggested remedy for treatment or remediation, determine the extent of infestation, nor provide opinions of probable costs for treatment or remediation of any deterioration that may have resulted. Reporting on the condition of subterranean conditions, such as underground utilities, separate sewage disposal systems, wells; systems that are either considered process related or peculiar to a specific tenancy or use; wastewater treatment plants; or items or systems that are not permanently installed. Entering or accessing any area of the premises deemed to pose a threat of dangerous or adverse conditions with respect to the field observer or to perform any procedure, that may damage or impair the physical integrity of the property, any system, or component. Providing an opinion on the condition of any system or component, that is shutdown, or whose operation by the field observer may increase significantly the registered electrical demand-load; however, the consultant is to provide an opinion of its physical condition to the extent reasonably possible considering its age, obvious condition, manufacturer, etc. Evaluating acoustical or insulating characteristics of systems or components. Providing an opinion on matters regarding security of the subject property and protection of its occupants or users from unauthorized access. Operating or

38 Page 38 of 43 witnessing the operation of lighting or other systems typically controlled by time clocks or that are normally operated by the building s operation staff or service companies. Providing an environmental assessment or opinion on the presence of any environmental issues such as asbestos, hazardous wastes, toxic materials, the location and presence of designated wetlands, IAQ, etc. Warranty, Guarantee, and Code Compliance Exclusions: By conducting a PCA and preparing a PCR, the consultant merely is providing an opinion and does not warrant or guarantee the present or future condition of the subject property, nor may the PCA be construed as either a warranty or guarantee of any of the following: Any system s or component s physical condition or use, nor is a PCA to be construed as substituting for any system s or equipment s warranty transfer inspection; Compliance with any federal, state, or local statute, ordinance, rule or regulation including, but not limited to, building codes, safety codes, environmental regulations, health codes or zoning ordinances or compliance with trade/design standards or the standards developed by the insurance industry; however, should there be any conspicuous material present violations observed or reported based upon actual knowledge of the field observer or the PCR reviewer, they should be identified in the PCR; Compliance of any material, equipment, or system with any certification or actuation rate program, vendor s or manufacturer s warranty provisions, or provisions established by any standards that are related to insurance industry acceptance/approval, such as FM, State Board of Fire Underwriters, etc. Additional/General Considerations: Further Inquiry: There may be physical condition issues or certain physical improvements at the subject property that the parties may wish to assess in connection with a commercial real estate transaction that are outside the scope of this guide. Such issues are referred to as non-scope considerations and if included in the PCR, should be identified. Out of Scope Considerations: Whether or not a user elects to inquire into non-scope considerations in connection with this guide is a decision to be made by the user. No assessment of such non-scope considerations is required for a PCA to be conducted in compliance with this guide. Other Standards: There may be standards or protocols for the discovery or assessment of physical deficiencies associated with non-scope considerations developed by government entities, professional organizations, or private entities, or a combination thereof. Additional Issues: No implication is intended as to the relative importance of inquiry into such nonscope considerations,and this list of non-scope considerations is not intended to be all-inclusive: Seismic Considerations, Design Consideration for Natural Disasters (Hurricanes, Tornadoes, High Winds, Floods, Snow, etc.), Insect/Rodent Infestation, Environmental Considerations, ADA Requirements, FFHA Requirements, Indoor Air Quality, and Property Security Systems. C. Opinions of probable costs to remedy physical deficiencies Not Inspected This was not part of the scope or our agreement. Uncertainty Not Eliminated No PCA can wholly eliminate the uncertainty regarding the presence of physical deficiencies and the performance of a subject property s building systems. Preparation of a PCR in accordance with this guide is intended to reduce, but not eliminate, the uncertainty regarding the potential for component or system failure and to reduce the potential that such component or system may not be initially observed. This guide also recognizes the inherent subjective nature of a consultant s opinions as to such issues as workmanship, quality of original installation, and estimating the RUL of any given component or system. The guide recognizes a consultant s suggested remedy may be determined under time constraints, formed without the aid of engineering calculations, testing, exploratory probing, the removal of materials, or design. Furthermore, there may be other alternate or more appropriate schemes or methods to remedy the physical deficiency. The consultant s opinions generally are formed without detailed knowledge from those familiar with the component s or system s performance. Not Technically Exhaustive Appropriate due diligence according to this guide is not to be construed as technically exhaustive. There is a point at which the cost of information obtained or the time required to conduct the PCA and prepare the PCR may outweigh the usefulness of the information and, in fact, may be a material detriment to the orderly and timely completion of a commercial real estate transaction. It is the intent of this guide to attempt to identify a balance between limiting the costs and time demands inherent in performing a PCA and reducing the uncertainty about unknown physical deficiencies resulting from completing additional inquiry.

39 Page 39 of 43 Summary South East Building Consultants Atlanta GA Serving Atlanta GA and the Entire South East Customer Restaurant Address 19 Indian Trail Lilburn Rd Norcross GA This summary will provide you with a preview of the components or conditions that need service, repair or a second opinion, but other items in the report may disclose valuable information that could influence your decision. Therefore, I recommend you read the full report in it's entirety. 1. General Physical Condition D. Paving, Curbing and Parking Repair or Replace Asphalt parking lot was in general good condition. Several small depressions and average small cracking, you may want to seal these cracks. Some of the concrete curbing was damaged and/or cracked. Recommend general repairs of curbing as needed. E. Flatwork (sidewalks, plazas, patios) Repair or Replace Concrete walkways/sidewalks had a few cracks in a few areas. Recommend repairing to prevent further damage or injury. 3. Structural Frame and Building Envelope B. Building Frame Immediate Attention! There was evidence of water stains at drop ceiling above the main electrical service panels. There was also evidence of water damage (deterioration) and stains at the roof plywood decking in the

40 Page 40 of Structural Frame and Building Envelope same area (below the roof electric weather head). Recommend repair the structure damage by qualified roof contractor. Repair all other damage as needed by qualified contractor. C. Sidewall System (exterior wall cladding and components) Repair or Replace (1) Stucco cladding was in good condition overall. There were several small hairline cracks around window/door openings. Recommend seal cracks to prevent moisture intrusion. (2) Landscape ground cover has caused small negative sloping toward the building. It is also in contact with the exterior cladding and lower windows. Recommend correcting issues to prevent moisture damage or wood destroy insects. E. Parapets (protective wall barriers at balcony, roof etc.) Repair or Replace Roof parapets had several small hairline cracks at stucco cladding. Sealant at metal cap seams were failing, several areas. Recommend small repairs to prevent further damage or moisture intrusion by qualified contractor. F. Roofing Repair or Replace (1) Roof coverings consisted of front metal pitched roof and TPO (Thermoplastic Polyolefin membrane) at flat roof. The metal roofing was in average condition. I recommend a new sealant coat for protection. The TPO roofing was in good condition for its age. I estimate it to be approximately 10 years old. Average life span of this roofing material varies significantly, but I would reasonably estimate at least 10 more years life. No major leaking was noted. However there was several small puddles of water (from improper condensation piping not draining off roof) which can cause moisture intrusion. Routine maintainece and/or inspections of the covering are recommended. Recommend obtaining estimates for repairing the small dips at TPO covering to prevent moisture damage. (2) Small lower roof canopy roofs had peeling paint or damaged top coat sealant. Recommend repair as needed. 4. Mechanical and Electrical System A. Plumbing water supply and Distribution and Fixtures Immediate Attention! Water leak noted at main water piping below main shut-off. Recommend repair by qualified plumber. C. Domestic hot water production Not Inspected (2) Tank-less water heater had stored items in front of it and shelving was in direct contact with unit. Minimum 4 inch clearance is required. Gas line did not have a proper shut-off valve. Recommend correct issues by qualified contractor to prevent injury or damage. D. Heating & Air conditioning and Ventilation Equipment Repair or Replace

41 Page 41 of Mechanical and Electrical System (2) Roof HVAC unit condensation piping was damaged or did not properly discharge off the roof for all units. Suction line insulation was aged/damaged for all units. General wear/dust was noted at filter, blower motor and service compartments. Electrical wiring conduit was faded/aged/cracked. I recommend general service and repair these items by licensed HVAC contractor. E. Electric Service and Meter Immediate Attention! (1) The electrical service conductors at roof weather head are frayed at wire sheathing. There were screws and a neutral wire in contact with the main conductor wiring. This is considered an safety issue. Recommend immediate repair by qualified licensed electrician. (2) Electrical service was a 3- phase 600 amp 208/120v system. There were multiple issues noted at the main electrical service panels in rear storage room. One service panel was blocked off with storage shelving (needs 3ft clearance) and the other panels had open knock outs, breakers were not properly identified, and multiple double taps. Right panel C had evidence of excessive heat at several breakers including evidence of water damage from an old roof leak above. Further damage or injury may occur. Recommend correct all issues by licensed electrician. F. Electric Distribution Repair or Replace (1) Conduit electrical wiring at roof was aged and deteriorated for mechanical equipment, including loose connectors. One section had open end wiring. Recommend repair issues by licensed electrician. (2) Open J-boxes noted at parking lot lights. Recommend correct by qualified electrician. (3) Electrical wiring and receptacle near wash station was not properly secured. Receptacles were damaged/defective. Recommend correct issues by licensed electrician. G. Exhaust, Vents Repair or Replace (1) Rooftop kitchen exhaust vent had grease build-up (left side). Recommend clean/maintenance. Also it appears that the old (brown) exhaust system was not in use or it had parts (belts) that were disconnected. Either repair this unit if in use or disconnect it as it is wasting electricity. Middle kitchen exhaust vent also had parts missing or not functioning properly. Recommend repair as needed. (2) I did not inspect any refrigeration, chiller, or ice maker equipment at the roof. However as a courtesy several issues were noted with this equipment and general service or maintainece is needed/recommended. 5. Common Areas (Interior) A. Ceiling, Walls, Floors Inspected

42 Page 42 of Common Areas (Interior) (2) Suspended drop ceiling had several areas of damage at tile, frame and tracks. Recommend repair issues as needed to prevent possible injury or further damage. Prepared Using HomeGauge : Licensed To Ray Thoroman

43 Page 43 of 43 INVOICE South East Building Consultants Atlanta GA Serving Atlanta GA and the Entire South East Inspected By: Ray Thoroman Inspection Date: 6/24/2013 Report ID: Customer Info: Restaurant Street Norcross GA Inspection Property: 19 Indian Trail Lilburn Rd Norcross GA Customer's Real Estate Professional: Inspection Fee: Service Price Amount Sub-Total Building Inspection Payment Method: Check Payment Status: Paid Note: Tax $0.00 Total Price $