Property Condition Assessment

Property Condition Assessment Business, Wisconsin Inspection Date: 8/2009 Prepared For: Business Owner Report Number: TD999909 Prepared By: Shamrock Building Inspection Consultants LLC N29 W29951 Shel-Mar Dr. Pewaukee, WI 53072 262-367-1536 262-367-1548 Fax Inspector: Thomas Dempsey License #1055-106

Report Number: TD999909 Business, Wisconsin Page 2 of 36 Table Of Contents 1.0 SUMMARY 3 2.0 INTRODUCTION 5 3.0 STRUCTURE 7 4.0 ELECTRICAL 9 5.0 HEATING 12 6.0 AIR CONDITIONING 14 7.0 VENTILATION 16 8.0 PLUMBING 18 9.0 ROOFING 20 10.0 INTERIOR 22 11.0 EXTERIOR 24 12.0 INSULATION 27 13.0 CLOSING COMMENTS 28 APPENDIX A: 29 PHOTOGRAPHS 29 APPENDIX B: 36 SUMMARY OF ROOFTOP EQUIPMENT 36

Report Number: TD999909 Business, Wisconsin Page 3 of 36 1.0 Summary 1.1 FIVE-YEAR SUMMARY OF RECOMMENDATIONS 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 (2011 Dollars) Electrical distribution wiring repairs. 4.2.9 Minor Service heating equipment. 5.2.7 Minor Service exhaust ventilation equipment. 7.2.8 Minor Plumbing fixture repairs. 8.2.8 Minor Replace water damaged ceiling tiles. 10.2.6 Minor Correct grading around the building. $3000 - $4000 Repair/replace damaged metal siding at west and south walls Recaulk windows. 11.2.2 $3000 - $4000 Minor Asphalt paving repairs at last side 11.2.15 $6000 - $8000 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 (2011 Dollars) 1.3 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 (2011 Dollars) Replace older furnaces, as necessary. 5.2.3 Over $20000 Replace older heating and cooling rooftop units, as necessary. 6.2.3 Over $10000 Replace older roof mounted exhaust fans, as 7.2.1 $5000 - $6000

necessary. Report Number: TD999909 Business, Wisconsin Page 4 of 36 Improve wall insulation when renovating. Over $10000 * The timing for replacement of this component is unpredictable. Statistically, it has reached the end of its life expectancy at this time.

Report Number: TD999909 Business, Wisconsin Page 5 of 36 2.0 Introduction As per the request and in the company of Business Owner and in accordance with our proposal dated 8/2009, 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 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. INSPECTION AUTHORIZATION AND SCOPE This report is a professional opinion, based on the accessible features of the building. We evaluated the current physical condition; we did not perform a design analysis. We visually reviewed the performance, looking for evidence of distress. It should be understood that there are limitations to such an inspection. Throughout any inspection, inferences are often drawn which cannot be confirmed by direct observation. Therefore, it should be understood that we can reduce the number of unforeseen repairs; however, we cannot eliminate them. Consequently, no guarantee or warranty can be offered or implied. Only the items specifically addressed in this report were examined. No comment is offered on fire protection equipment or on fire regulation, building code and building bylaw compliance, or environmental concerns. BUILDING DESCRIPTION This is a one story industrial structure covering approximately 45,000 square feet per floor (very rough estimate). There is an office area at the front, covering approximately 5,000 square feet. The visible evidence suggests that the building was constructed in 1982. For the purpose of this report, the front of the building is considered to be facing north.

Report Number: TD999909 Business, Wisconsin Page 6 of 36 PLANS No plans or drawings were available at the time of this inspection.

Report Number: TD999909 Business, Wisconsin Page 7 of 36 3.1 DESCRIPTION 3.0 Structure GENERAL The building is of slab-on-grade construction. The building is of steel frame construction. FOUNDATIONS/ FLOORS The block foundations support the reinforced concrete structure. FLOORS The floors are reinforced concrete slabs. ROOF The steel roof deck is supported by steel beams and columns. 3.2 OBSERVATIONS AND DISCUSSION FOUNDATION/WALL 3.2.1 No major structural defects were noted. 3.2.2 Minor settlement was noted. 3.2.3 Water damage to beams was noted. 3.2.4 Minor foundation cracks resulting from concrete shrinkage are typical in with poured concrete. 3.2.5 These cracks are not a major structural concern and no remedial action is considered necessary. COLUMN 3.2.6 This is not a major structural concern and no remedial action is considered necessary. 3.2.1 3.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame

Report Number: TD999909 Business, Wisconsin Page 8 of 36 3.4 LIMITATIONS The examination of the structural components was visual only; a design review was not undertaken. The evaluation of the building s structure was limited because of the exterior finishes. The evaluation of the building s structure was limited because of the interior finishes.

Report Number: TD999909 Business, Wisconsin Page 9 of 36 4.1 DESCRIPTION 4.0 Electrical SERVICE The electrical service to the building is underground. The building is equipped with a 600 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 N.W. Panel A 200 amps N. central Panel B 200 amps N.E. Panels D+ DD 100 amps + 200 amps S.E. Panel E 200 amps There is an unknown kva transformer in the N.W. corner that steps a portion of the 600-volt service down to a 120/208-volt, three-phase service for the main building panels. PANELS The distribution panels employ circuit breakers. WIRING All wiring examined is copper.

Report Number: TD999909 Business, Wisconsin Page 10 of 36 MAIN TRANSFORMER The transformer is inaccessible the id plate was not legible. The equipment in these is often the responsibility of the utility. 4.2 OBSERVATIONS AND DISCUSSION SERVICE ADEQUACY 4.2.1 While detailed load calculations were not performed, no problems are suspected with the service capacity. 4.2.2 The main service should be adequate for the present usage. DISTRIBUTION EQUIPMENT 4.2.3 The distribution equipment is well arranged. 4.2.4 No deficiencies were noted. BRANCH WIRING 4.2.5 Representative samples of accessible wiring were examined and electrical switches were spot tested in the areas inspected. 4.2.6 All switches tested operated satisfactorily. 4.2.7 No major deficiencies were noted. 4.2.8 The general condition is considered to be good; however, improvements are recommended as follows: 4.2.9 The general condition is considered to be satisfactory; however, improvements are recommended as follows: Electrical boxes in the warehouse should be well secured to framing members. Outlet covers are missing in the office space. GROUNDING 4.2.10 The electrical system appears to be properly grounded. 4.2.1 4.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Electrical distribution wiring repairs. Minor Immediate

Report Number: TD999909 Business, Wisconsin Page 11 of 36 4.4 LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken.

Report Number: TD999909 Business, Wisconsin Page 12 of 36 5.1 DESCRIPTION 5.0 Heating FORCED AIR SYSTEM The lunch room and rest rooms are heated by a gas-fired, high-efficiency furnace with an output of 100,000 BTUs per hour. The building is heated by 1roof-mounted, gas-fired, heating units. The warehouse section is heated by 3 gas-fired, ceiling-mounted unit heaters. There is a single gas meter for the building. The office portion of the building is heated by 2 roof-mounted, gas-fired, heating (electric cooling) units. 5.2 OBSERVATIONS AND DISCUSSION FORCED AIR CAPACITY 5.2.1 While detailed heat loss calculations were not performed, no problems are suspected with heating capacity. 5.2.2 The building management reported that adequate heat has been available in the past. LIFE EXPECTANCY 5.2.3 These units are approximately 25+ years old. 5.2.4 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. 5.2.5 Therefore, these units are approaching the end of their useful lives. OPERATING STATUS 5.2.6 Since the heating systems had been shut down for the summer, they were not observed in operation. 5.2.7 The heating units require servicing. GAS LINES 5.2.8 The wood blocking supporting the gas lines on the roof is rotted and should be replaced.

Report Number: TD999909 Business, Wisconsin Page 13 of 36 HEAT DISTRIBUTION 5.2.9 The heat distribution appears adequate in most areas. 5.2.1 5.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Service heating equipment. Minor Immediate Replace older furnaces, as necessary. Over $20000 Unpredictable 5.4 LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken. Old warehouse heaters

Report Number: TD999909 Business, Wisconsin Page 14 of 36 6.1 DESCRIPTION 6.0 Air Conditioning CENTRAL AIR CONDITIONING The office section of the building is air-conditioned by 2 rooftop units. These units have an approximate size of 8 tons. The lunch room and rest rooms section of the building is air-conditioned by 1 air-cooled, split systems. This unit has an approximate size of 3 tons. The total available cooling capacity for the building is 11 tons. REFRIGERANT The refrigerant used in the air conditioning systems was identified as R-22. 6.2 OBSERVATIONS AND DISCUSSION CAPACITY 6.2.1 The total available cooling capacity for the building is 11 tons. 6.2.2 While detailed heat gain calculations were not performed, no problems are suspected with cooling capacity. LIFE EXPECTANCY 6.2.3 These units are approximately 25+ years old. 6.2.4 The air-conditioning compressor normally determines the life expectancy of this equipment. 6.2.5 All compressors were found to be original. 6.2.6 Therefore, updating compressors may be necessary over the next 5 years. OPERATING STATUS 6.2.7 No major deficiencies were noted. CONDENSATE DRAINS 6.2.8 Ideally, a secondary drip pan would be installed below the air conditioning unit. This would protect ceiling finished from water damage.

Report Number: TD999909 Business, Wisconsin Page 15 of 36 AIR DISTRIBUTION 6.2.9 The air distribution appears adequate. 6.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Replace older heating and cooling rooftop units, as necessary. Over $10000 Unpredictable 6.4 LIMITATIONS This was a visual review only. No load calculations or equipment testing was undertaken.

Report Number: TD999909 Business, Wisconsin Page 16 of 36 7.1 DESCRIPTION 7.0 Ventilation There are 7 exhaust fan cabinets on the roof. These fans appear to service the warehouse. There are 9 fresh-air makeup units on the roof. These units provide fresh air to the plant area. The washrooms are ventilated by a roof-mounted exhaust fan. Operable windows ventilate the offices. 7.2 OBSERVATIONS AND DISCUSSION ROOF-MOUNTING EXHAUST FANS 7.2.1 The roof-mounted exhaust fans are approximately 15+ years old. This equipment has a typical life expectancy of 20 years. 7.2.2 Therefore, updating this equipment may be necessary within the next 5 years. 7.2.3 The shower room washroom exhaust fan did not operate properly during the inspection. This fan should be repaired or replaced. MAKEUP AIR 7.2.4 The amount of fresh air available to the offices appears adequate. 7.2.5 The roof-mounted fresh-air makeup unit for the plant area is 25+ years old. 7.2.6 These units have a typical life expectancy of 20 years. 7.2.7 Therefore, this unit may be approaching the end of its useful life. 7.2.8 The air intake for the fresh air is dirty and requires cleaning. 7.2.1 7.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Replace older roof mounted exhaust fans, $5000 - $6000 Discretionary

as necessary. Report Number: TD999909 Business, Wisconsin Page 17 of 36 Service exhaust ventilation equipment. Minor Immediate 7.4 LIMITATIONS

Report Number: TD999909 Business, Wisconsin Page 18 of 36 8.1 DESCRIPTION 8.0 Plumbing SUPPLY There is a combination water supply to the building. The branch off for the domestic water supply is a 11/2 -inch-diameter copper pipe. The main shutoff valve is located in the front of building (See Photo #???). There is a single water meter for the building. All supply plumbing examined is copper. WASTE The visible waste piping is primarily PVC plastic. DOMESTIC WATER HEATING There is a 40 gallon, electric domestic water heater in the office. The domestic hot water for the building is provided by a 100,000 BTU per hour (output) gas-fired boiler. There is a single 200 -gallon storage tank. Washrooms are located at front. Men s and women s washrooms are located on the east side. There is a sump pump, but the sump pumps were not observed in the building. 8.2 OBSERVATIONS AND DISCUSSION SUPPLY 8.2.1 Adequate water pressure appears to be available. 8.2.2 No active leaks were noted in the supply plumbing pipes. WASTE 8.2.3 No active leaks were noted in the plumbing pipes, either supply or waste. VENTING 8.2.4 The presence of appropriate venting for the waste plumbing could not be verified. DOMESTIC WATER HEATING

Report Number: TD999909 Business, Wisconsin Page 19 of 36 8.2.5 The domestic water heater is approximately 15 years old. 8.2.6 While it is impossible to predict with certainty when a domestic water heater will fail, these units typically last 15 years. FIXTURES 8.2.7 Most plumbing fixtures that were tested operated satisfactorily. 8.2.8 However, improvements are recommended to the following areas: The men s restrooms toilet does not flush properly. A plumber should be engaged to correct this as necessary. The woman s toilet does not flush properly. A plumber should be engaged to correct this as necessary. 8.2.1 8.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Plumbing fixture repairs. Minor Immediate 8.4 LIMITATIONS The evaluation of the well and submersible pump is beyond the scope of this assessment. The evaluation of the septic system is beyond the scope of this assessment. The water quality was not tested. The local health unit should be contacted for advice in this regard.

Report Number: TD999909 Business, Wisconsin Page 20 of 36 9.1 DESCRIPTION 9.0 Roofing FLAT The office part of the building is covered by a single-ply PVC plastic membrane on one level (See Photo #???). SLOPED The sloped roof is covered with metal panels (See Photo #???). ROOF DRAINAGE The roof drainage is via an interior collection system. There is one drain on the office roof. The roof drainage is via galvanized steel gutters and downspouts. CHIMNEYS There are 3 metal chimneys above the roof. These chimneys are for the gas heaters. 9.2 OBSERVATIONS AND DISCUSSION OTHER MEMBRANES 9.2.1 The PVC plastic membrane appears to be in satisfactory condition. 9.2.2 This installation is reported to be 5 years old. 9.2.3 This type of system has an average life expectancy of 15 to 20 years. 9.2.4 The metal panel roofing is in satisfactory condition. Repairs are needed as follows. Roof panels are starting to rust they should be painted with a rust inhibiting agent. Roof leaks on the northwest corner the south and southwest corner and east side above loading docks should be repaired. Roof penetrations should caulked sealed and areas of standing water should be alleviated.

DRAINAGE 9.2.5 Water ponding on the roof was noted at front indicating poor drainage. 9.2.6 The drain on the flat roof is clogged and should be kept clean. 9.2.7 The galvanized steel gutters and downspouts are in serviceable condition. 9.2.8 Existing leaks should be repaired without delay. Report Number: TD999909 Business, Wisconsin Page 21 of 36 9.2.9 Downspouts should discharge water at least six feet from the building, where practical. 9.2.10 If downspouts are ever suspected of being disconnected, broken or clogged below ground level, they should be redirected to discharge six feet away from the building. 9.2.11 Proper gutter and downspout operation is essential to minimize the potential for basement leakage and protect the exterior cladding. 9.2.1 METAL CHIMNEYS 9.2.12 The metal chimneys and vents are rusting and will need to be painted with a rust inhibiting product. 9.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame 9.4 LIMITATIONS The roof coverings could not be closely examined because of ponding water.

Report Number: TD999909 Business, Wisconsin Page 22 of 36 10.1 DESCRIPTION 10.0 Interior The office ceiling finishes consist of hanging ceiling panels. The office wall finishes consist of drywall. The office floor coverings consist of carpet. The ceiling finishes of warehouse consist of open webbing. The floor coverings consist of concrete. 10.2 OBSERVATIONS AND DISCUSSION 10.2.1 Since interior components are subjective to some degree, our comments here will be general, except where functional concerns are noted. 10.2.2 Walls are relatively plumb, doorjambs are square and floors are reasonably level. 10.2.3 Considering the age of the building, walls are relatively plumb, doorjambs are square and floors are reasonably level. 10.2.4 Some of the walls, ceilings, and floors show cosmetic imperfections. 10.2.5 It is not difficult to eliminate these flaws during decorating. 10.2.6 Water stains were noted in several locations. 10.2.7 All areas of staining were found to be dry at the time of the inspection. 10.2.1 10.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Replace water damaged ceiling tiles. Minor Immediate Correct grading around the building. $3000 - $4000 Immediate

Report Number: TD999909 Business, Wisconsin Page 23 of 36 10.4 LIMITATIONS Moisture problems in basements can develop as a result of clogged or damaged perimeter foundation drainage tiles. There is, of course, no way to predict this during a visual examination.

Report Number: TD999909 Business, Wisconsin Page 24 of 36 11.1 DESCRIPTION 11.0 Exterior WALLS The exterior walls are clad with metal. DOORS The front entrance doors are aluminum-framed, single-glazed units. The exit doors are steel units. The overhead doors are metal sectional units. There are 2 loading docks in the east façade. WINDOWS The windows are aluminum-framed, double-glazed units. RETAINING WALL There is a preservative treated wood retaining wall along the east side of the property. SIDEWALK There is a poured-concrete sidewalk at east side. ASPHALT PAVING There is asphalt paving on eastside. There is asphalt paving on south side.

11.2 OBSERVATIONS AND DISCUSSION Report Number: TD999909 Business, Wisconsin Page 25 of 36 WALLS 11.2.1 The metal cladding is in serviceable repair. 11.2.2 The metal cladding at east wall requires attention to improve weather tightness. PERSONNEL DOORS 11.2.3 The entrance doors are in satisfactory condition. 11.2.4 Most doors that were tested operated properly. OVERHEAD DOORS 11.2.5 The overhead doors are in serviceable condition. 11.2.6 The weather stripping around the overhead doors is damaged and should be replaced. WINDOWS 11.2.7 The office windows are in satisfactory condition, for the most part. 11.2.8 The caulking around the windows is deteriorated and should be renewed. 11.2.9 The caulking around the windows and in the exterior wall expansion joints is deteriorated and should be renewed. 11.2.10 The office windows have lost their seal and condensation has formed between the glazing. These windows need only be replaced for cosmetic reasons. GRADING 11.2.11 The grading is considered to be poor. 11.2.12 Grading improvements should be under taken along the west. This will help protect the building structure from excessive moisture. SIDEWALK 11.2.13 The sidewalk has settled and should be improved to slope away from the building.

ASPHALT 11.2.14 The asphalt paving is in poor condition. 11.2.15 The depressions at the east should be repaired. 11.2.16 The large cracks in the parking lot should be sealed with asphalt slurry. RETAINING WALL 11.2.17 The preservative treated wood retaining wall is in poor repair and will require major improvement or replacement. SIGNAGE 11.2.18 The sign on the north façade is in satisfactory condition. 11.2.1 11.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Report Number: TD999909 Business, Wisconsin Page 26 of 36 Recommendations Costs Time Frame Repair/replace damaged metal siding at south and west sides. $3000 - $4000 Immediate Recaulk windows. Minor Immediate Asphalt paving repairs at east and south side. $6000 - $8000 Immediate 11.4 LIMITATIONS

Report Number: TD999909 Business, Wisconsin Page 27 of 36 12.1 DESCRIPTION 12.0 Insulation WALLS The presence of insulation in the exterior walls could not be verified. It is quite possible that little or no insulation is present. Fiberglass insulation, valued at an estimated R-9, was spot-checked in warehouse walls. FLAT ROOF The presence of insulation in the flat roof was spot-checked at R-9 fiberglass. 12.2 OBSERVATIONS AND DISCUSSION 12.2.1 12.3 RECOMMENDATIONS, COSTS, AND PRIORITIES Recommendations Costs Time Frame Improve wall insulation when renovating. Over $10000 12.4 LIMITATIONS

Report Number: TD999909 Business, Wisconsin Page 28 of 36 13.0 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. Please find a summary of the rooftop heating and cooling equipment in Appendix B.

Report Number: TD999909 Business, Wisconsin Page 29 of 36 Appendix A: Photographs Gutters drain into truck well Damaged wall insulation Damaged ceiling insulation hanging warehouse heaters fan belt damaged on rest room exhaust system hanging warehouse heaters

Report Number: TD999909 Business, Wisconsin Page 30 of 36 North building elevation South building elevation

Report Number: TD999909 Business, Wisconsin Page 31 of 36 East building elevation West building elevation

Report Number: TD999909 Business, Wisconsin Page 32 of 36 General roof area General roof area

Report Number: TD999909 Business, Wisconsin Page 33 of 36 General roof area Main domestic water service entrance

Report Number: TD999909 Business, Wisconsin Page 34 of 36 Main electrical service equipment Main heating equipment

Report Number: TD999909 Business, Wisconsin Page 35 of 36 Typical building interior Typical building interior

Report Number: TD999909 Business, Wisconsin Page 36 of 36 Building parking area Appendix B: Summary of Rooftop Equipment HVAC Unit # Year Built Cooling Capacity X 1000 BTUs Heating Capacity X 1000 BTUs [output] Operating Mode Makeup Air Manufacturer Area Serviced Comments East 84 5 Ton 100,000 AC Trane East office Compressor original Unit requires servicing Heat exchanger corroded West 84 3 Ton 60,000 AC Trane West office Compressor original Heat exchanger corroded Unit requires servicing Loadin g dock 02 1,589,760 Heating Loading dock Power shutoff to unit