DUE DILIGENCE

Complete, accurate and thorough due diligence is essential to making sound real estate lending and investment decisions.  B2R (formerly Baucom Consulting, Inc.) meets or exceeds the client’s expectations in this process by providing nationwide services with the following objectives:

• Serve as a single source to the client for engineering, environmental and seismic services, resulting in lower costs and greater quality control.
• Provide accurate and thorough reports by employing only highly qualified consultants to complete and review all due diligence assignments, including licensed engineers, registered architects, and registered environmental assessors.
• Provide standard or customized report formats.
• Maintain the capacity and flexibility to meet the client’s requirement for quick responses and portfolio assignments.
• Always act in an ethical, unbiased, and confidential manner to serve the best interest of the client.

PROPERTY CONDITION ASSESSMENTS (PCAs)

The determination of the condition of a property, and the costs associated with rectifying deficiencies is a critical element in the due diligence process.  B2R provides these services in accordance with ASTM, Fannie Mae, Freddie Mac, Conduit, and client specific requirements.  PCA services typically include the following:

• Coordination of site inspection with all disciplines
• Walk through of the property to complete visual inspection
• Comprehensive description of the noted improvements
• Identification of noted damage, deferred maintenance, and deficiencies
• Preparation of opinions of costs for correction of noted deficiencies
• Preparation of opinions of costs for replacements over the reserve term
• Identification of ADA barriers and cost estimates for removal
• Review of governmental records for possible code violations
• Determination of flood zone designations
• Photographic documentation of the property
• A seismic loss analysis of the subject property can be included if requested

ENVIRONMENTAL SERVICES

Protecting the client from environmental risks associated with known and unknown hazards is crucial to the financial success of any real estate lending or investment activity.  Through strategic alliances, B2R can provide an array of environmental services to identify and correct environmental conditions:

• Phase I Environmental Assessments are performed following ASTM guidelines
• As required, perform testing for asbestos, lead-based paint, lead in water, or radon sampling
• When asbestos is identified, prepare operations and maintenance plans, or supervise asbestos removal
• Thorough investigations of possible soil and groundwater contamination
• Preparation of Environmental Impact Reports (EIR) relative to contemplated development projects
• Monitoring and closure of abatement operations
• Review of existing environmental assessment to evaluate the appropriateness of the scope of work, compliance with local practice/regulation, thoroughness of the report, and standard of care

CONSTRUCTION COST ANALYSIS

Several factors impact the construction budget of development projects.  B2R’s Construction Cost Analysis assists the lender by evaluating the project to determine the adequacy of the proposed budget.  The analysis includes the following services:

• Review plans, specifications, soils reports, contracts and environmental reports for completeness and adequacy
• Develop an independent construction cost estimate
• Perform line item comparisons between the estimated costs and the developer’s budget
• Identify areas of possible budget deficiency
• Identify possible budget front-loading
• Identify conditions that may impact the construction cost

CONSTRUCTION LOAN DISBURSEMENT REVIEWS

B2R can review draw requests to assist construction lenders in understanding the progress of the project and determine the appropriateness of the requested payments.  This service includes the following:

• Perform site visit to observe progress and field conditions
• Review materials stored on and off site
• Review overall quality of work completed
• Analyze draw request for consistency with physical progress
• Evaluate sufficiency of funds to complete proposed work
• Review change orders to determine cost and schedule impact

TYPES OF PROPERTIES ASSESSED

B2R’s team has substantial experience with a broad range of property types, including:

• Multifamily Housing
• Assisted Living Facilities
• Retail Buildings
• Parking Structures
• R&D Buildings
• Schools and Athletic Facilities

• Single Family Residences
• Site Development
• Retail Centers
• Medical Office Buildings
• Military
• Resorts

• Subdivision Development
• Hotels and Motels
• Retail Malls
• Industrial Buildings
• Cinemas/Theaters

• Mixed Use Residential/Commercial
• Restaurants
• Office Buildings
• Warehouses
• Churches

Properties assessed have ranged from small, single tenant buildings to expansion of a major resort in the Bahamas with a construction budget of nearly one billion dollars.  Construction dates range from new construction to buildings constructed in the early 1900s.  Types of construction reviewed vary widely and include:

Wood Stud Framing * Structural Steel * Cast-in-Place Concrete * Non-Ductile Concrete * Post-Tension Concrete * Precast Concrete * Masonry  *  Non-Reinforced Masonry * Concrete Tilt-up * Pre-Engineered Metal