The subject property is located on a site that contains both level and sloping topography. The site is situated at an elevation consistent with the surrounding street grade of Main Street. Surface drainage appears to be maintained via sheet flow across the paved parking area to the north and to landscaped areas. The drainage is directed toward the municipal storm water collection system. Based on visual observations, there are no significant topographic features or slopes that would suggest potential for erosion or unusual drainage challenges. The site topography is in Fair condition due to the condition of the parking surface and neglected landscaped areas. Proper landscaping maintenance is needed around the building.

The subject building is configured with a flat roof system. Stormwater management is provided by a combination of primary interior roof drains and an overflow scupper on the rear addition. The interior roof drains are equipped with debris strainers and are integrated with internal vertical conductors that transition to the site’s storm water system. Supplemental drainage is provided via a scupper through the parapet wall, which discharges to the building's exterior. At the time of the assessment, the drainage system appeared to be in generally good condition, though regular maintenance to clear debris from the drain basins and scupper openings is required to ensure continued performance.

The rear parking lot is asphalt-paved and graded to facilitate the positive flow of stormwater runoff toward the northeast section of the property. Drainage is managed via a subgrade catch basin, which collects surface water and conveys it to an unknown location. At the time of the assessment, the pavement displayed signs of ponding water and poor drainage. See notes on the Parking section of the report. Regular maintenance, including the periodic clearing of debris from the catch basin grate, is recommended to ensure unobstructed flow.

Pedestrian access to the building is provided by a city sidewalk and concrete walks on the west side of the building. Vehicular access is via a paved driveway from Sally Fish Circle.

The asphalt-paved parking lot is in poor overall condition. The pavement surface exhibits advanced signs of distress, including widespread alligator cracking, localized settlement, and evidence of significant ponding water. These conditions indicate a failure of the pavement section and potential subgrade instability. Given the extent of the deterioration and the presence of fatigue failure, localized patching is no longer considered a viable long-term solution. Full-depth replacement of the asphalt pavement is recommended to restore the structural integrity and proper drainage of the parking area. Concrete curbings are cracked and deteriorated. These will also need restoration.

The concrete pedestrian walkways exhibit localized areas of deterioration and differential settlement. The walkways are in Fair condition. Noted distress includes surface scaling, longitudinal cracking, and vertical displacement at control joints, which have created uneven walking surfaces and potential tripping hazards. These conditions are indicative of subgrade consolidation. It is recommended that the affected sections of the walkways be removed and replaced to restore a level surface and ensure pedestrian safety. Deteriorated front steps are settled and deteriorated. These steps also need restoration.

The water supply to the building is provided by the Town of XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX The town maintains four groundwater sources in total that are treated before distribution. There was no access into the storage room where the water service enters the building. The type and condition of the piping is unknown.

Sanitary sewer service is provided to the subject property by the local municipality. The system is gravity-fed, with waste lines exiting the building and connecting to the municipal main located in the adjacent public right-of-way. Routine maintenance, including periodic cleaning of the main laterals, is recommended to ensure continued performance.

The building is covered with a single-ply Ethylene Propylene Diene Monomer (EPDM) roof membrane. Based on a visible date code observed during the site visit, the roof appears to have been installed circa 2012. At the time of the assessment, the roof cover was in fair overall condition; however, a comprehensive evaluation of the membrane was limited by active rainfall and wet surface conditions.

Despite the primary roof drains appearing clear of debris, localized ponding water was noted in two distinct areas, suggesting potential substrate deflection or improper insulation crickets. Additionally, the lead cap flashing at both chimneys is deteriorated and requires repair to prevent moisture infiltration. It is recommended that a qualified roofing contractor be engaged to perform the necessary flashing repairs and further investigate the ponding areas to ensure the long-term integrity of the roofing system. These roof covers have an EUL of 15-20 years. Scheduled maintenance is recommended to prevent any localized failure or water penetration.

The roof perimeter is defined by parapet walls that extend above the roof plane. The walls are capped with coping and are integrated with the roof's base flashing system. At the time of the assessment, the parapet walls appeared to be in generally good condition, with no significant signs of masonry distress, cracking, or moisture infiltration observed. The coping sections appeared well-seated with intact joints, providing adequate protection to the wall assemblies.

The building is equipped with two masonry chimneys; one services the central boiler and the other services a wood-burning fireplace. The exterior masonry walls of both chimneys are in fair condition, with evidence of eroded and weathered mortar joints observed. To mitigate the risk of moisture infiltration and further masonry displacement, it is recommended that the chimneys be repointed. All masonry repairs should be performed by a qualified contractor to ensure the structural and weather-tight integrity of the stacks.

The building's primary structural envelope consists of solid masonry sidewalls. The exterior finish is a decorative combination of yellow face brick and brown stone/concrete accents. At the time of the assessment, the exterior walls appeared to be in generally good condition, exhibiting no significant signs of structural distress, masonry displacement, or moisture-related damage. The mortar joints appeared well-pointed and intact, and the masonry units showed no evidence of excessive spalling or weathering. Routine monitoring and periodic cleaning are recommended to maintain the long-term integrity and aesthetic appearance of the facade.

The building is supported by a poured concrete foundation system. The foundation walls were observed from the interior at accessible locations and appear to be in generally good condition. At the time of the assessment, no significant structural distress, such as wide-scale cracking, lateral displacement, or evidence of significant settlement, was observed. Minor hairline shrinkage cracks, which are typical for this construction type, were noted but do not appear to be structurally significant.

The building is equipped with a diverse fenestration system consisting of a mix of single-pane, steel-framed windows with interior storm panels and traditional wood-framed units. The windows are in fair overall condition; however, the steel-framed units exhibit visible signs of surface corrosion and oxidation. During the assessment, many of the window units were found to be inoperable due to frame distortion, hardware failure, or excessive paint accumulation. Given the lack of functionality and inherent thermal inefficiency of the existing units, a comprehensive program for restoration or full-scale replacement is recommended.

Exterior Doors

Primary ingress and egress are provided by aluminum-framed glass storefront-style door units. At the time of the assessment, the doors and associated hardware appeared to be in generally good condition, exhibiting smooth operation and no significant signs of wear or misalignment. The weatherstripping and glazing seals appeared to be intact and functional.

The building features a lower-level cellar utilized for mechanical equipment, storage, and ancillary staff amenities. The accessible portions of this level include a kitchenette and washroom facilities, as well as dedicated utility rooms housing the building's primary heating and domestic hot water equipment. At the time of the assessment, a complete survey of the lower level was not possible, as access to several rooms was restricted by locked doors and the presence of built-in safes. Consequently, the condition of these specific areas could not be verified. The visible portions of the cellar appeared to be in generally good condition, consistent with the age and usage of the facility.

The building’s floor framing system consists of a combination of wood floor joists and structural steel beams. A comprehensive visual assessment of the framing was significantly limited, as the majority of the structural components are concealed by finished ceiling and floor surfaces. Where visible in unfinished utility areas, the framing appeared to be in generally good condition, with no evidence of significant deflection, moisture damage, or structural distress observed. In accordance with ASTM E2018-15 standards, this assessment was non-invasive, and the condition of concealed structural members is inferred based on the performance of the visible finished surfaces.

Evidence of active moisture infiltration and significant water staining was observed within the lower-level utility room. The source of the penetration was identified as abandoned coal chutes located along the foundation perimeter. At the time of the assessment, moisture was actively entering the building through these openings, posing a risk of continued masonry deterioration and potential damage to nearby mechanical and electrical equipment.

It is recommended that all abandoned coal chutes be permanently sealed and waterproofed from the exterior and properly infilled to prevent further moisture ingress. A qualified masonry or waterproofing contractor should be engaged to perform these repairs to ensure the long-term integrity of the foundation and a dry interior environment.

The accessible attic space was observed to lack a consistent and continuous barrier of thermal insulation across the floor or roof rafters. Existing insulation materials, where present, were sparse, unevenly distributed, or deteriorated, resulting in significant voids in the building's thermal envelope. This lack of a proper thermal barrier likely contributes to increased energy consumption for heating and cooling. It is recommended that a qualified insulation contractor be engaged to install supplemental insulation to achieve a uniform R-value consistent with current energy codes and industry standards.

Central air conditioning for the building is provided by a Trane air-cooled water chiller mounted on a ground-level concrete pad at the north side of the property. The chiller system distributes chilled water to individual fan coil units (blowers) located throughout the building interior to provide localized cooling. Based on the manufacturer’s data plate, the unit was manufactured in 2006. At the time of the assessment, the chiller appeared to be in fair overall condition, exhibiting age-related wear and minor surface corrosion on the exterior cabinet.

The unit was found to be inoperative at the time of the site visit. Given that the equipment is approximately 20 years old, it has reached the end of its typical Expected Useful Life (EUL). It is recommended that a qualified HVAC contractor be engaged to perform a diagnostic evaluation of the chiller and the associated chilled water distribution system. Considering the age of the unit, the potential for diminished efficiency, and the phase-out of older refrigerants, budget for the replacement of the chiller system should be prioritized in the immediate capital expenditure plan.

The rear addition is served by a single York gas-fired packaged rooftop unit (RTU) that provides both heating and cooling. Based on the manufacturer’s data plate, the unit was manufactured in 2016. At the time of the assessment, the unit was observed to be in fair overall condition, exhibiting typical age-related wear and minor surface oxidation on the exterior cabinet. Based on the physical condition of the unit and the lack of visible service records, the equipment appears to be in need of routine maintenance. It is recommended that a qualified HVAC contractor be engaged to perform a comprehensive service of the unit—including coil cleaning, refrigerant level verification, and inspection of the gas burner assembly and heat exchanger—to ensure continued reliable operation and to maximize the remaining useful life of the equipment.

Primary heating for the building is provided by a Weil McLain cast-iron, oil-fired boiler. According to the manufacturer’s data plate, the unit was manufactured in 2018. A service tag observed at the time of the assessment indicates that the most recent professional maintenance was performed in 2024.

While the boiler itself appears to be in generally good condition and is well within its Expected Useful Life (EUL), the associated circulator pump was noted to be chattering loudly during operation. This condition is indicative of mechanical distress or imminent bearing failure. It is recommended that a qualified HVAC technician be engaged to inspect and replace the circulator pump to prevent a loss of heating capacity and ensure the continued reliability of the system.

The interior spaces of the building are heated by a mix of hydro air blowers, hot water radiators and baseboard radiators. Some of the individual blowers appear original to the 1967 renovation. Repair, restoration, or replacement to some of the units should be expected.

Domestic water distribution throughout the Subject Property is provided via L-grade copper piping. Based on visual observations of the accessible portions of the system—primarily within the mechanical rooms and basement areas—the piping is in Fair condition. The copper lines exhibit minor signs of oxidation, corrosion at the soldered joints and fittings. The use of L-grade copper is consistent with high-quality commercial standards for domestic water service, offering superior durability and pressure ratings. The system appears to be functional but repairs and updates should be expected as the system continues to age.

The building’s waste and vent piping system is primarily constructed of a combination of cast iron, ABS, and copper piping. During the assessment, visible sections of the cast iron waste lines in the basement utility room exhibited signs of surface corrosion and oxidation. Given the age of the facility and the observed condition of the visible components, the waste piping system appears to be nearing the end of its typical Expected Useful Life (EUL). The presence of corrosion suggests that the piping is increasingly susceptible to localized failures. Ongoing repairs and routine maintenance to address minor leaks or blockages should be anticipated; however, full-scale system replacement is not recommended at this time unless necessitated by a broader renovation program.

Domestic hot water is provided by a Rheem electric water heater with a capacity of 19.9 gallons. The unit was manufactured in 2016. The unit is approximately 10 years old, which meets or exceeds the typical Expected Useful Life (EUL) for a small-capacity electric water heater. Given its age and the increased potential for tank failure or heating element malfunction, the unit should be replaced.

The building is served by a 400-Amp, three-phase electrical service. The main service entrance includes utility metering and a primary disconnect located in the [lower level/mechanical room]. Electrical distribution is managed through various sub-panels situated throughout the facility, utilizing [copper/aluminum] branch wiring. At the time of the assessment, the visible components of the electrical system appeared to be in generally good condition and were well-maintained. The service capacity appears adequate for the building's current occupancy and operational load. Routine maintenance, including periodic infrared thermographic scanning of the main distribution panels, is recommended to identify and mitigate potential hot spots or loose connections.

Panel A Three Phase 225 AMPS Square D.

Panel C Three Phase 225 AMPS Square D.

The building is not equipped with a fire suppression system.

The interior finishes of the subject building are in fair to poor overall condition. Evidence of past moisture infiltration, characterized by water staining, was observed on the northwest side of the building and within the ceilings of the office and lower-level bathrooms. These stains were dry at the time of the assessment, suggesting the source of the leaks may have been previously addressed or is intermittent in nature.

The finished flooring throughout the facility is in poor condition, appearing significantly worn and, in several areas, incomplete. Additionally, misaligned panels were noted in the ceiling soffit at the location of the former skylight, indicating a need for cosmetic adjustment. Given the extent of the wear and the presence of localized damage, a general renovation and cosmetic restoration of the interior elements are required to return the spaces to a uniform and serviceable condition.

First floor

Signs of water penetration and damage were noted in the office bathroom

Second floor

Lower level

The building is equipped with interior stairways providing vertical circulation between floor levels. The stair assemblies consist of steel treads and risers with associated handrails and balusters. At the time of the assessment, the stairways appeared to be in generally good condition. The treads were observed to be secure and free of significant wear or trip hazards, and the handrails were found to be sturdy and properly anchored. Headroom clearances appeared to meet standard requirements. No significant structural distress or safety deficiencies were observed. Routine maintenance, including monitoring the integrity of the slip-resistant surfaces and ensuring handrail attachments remain secure, is recommended.

The building is equipped with common-area and private washroom facilities. At the time of the assessment, the plumbing fixtures and associated hardware were found to be in functional condition, with no active leaks or drainage issues observed. However, the washrooms are significantly dated and exhibit aesthetic wear consistent with their age. The floor and wall finishes, partitions, and fixtures are nearing the end of their typical decorative and functional life cycles. A comprehensive renovation and modernization of the washroom facilities is recommended to align the interior with current commercial standards and improve overall facility aesthetics.

Men’s room lower level is in Poor condition.

Women’s room lower level in in Poor condition. Signs of water damage and microbial growth were noted on drop ceiling panels.

Several building documents and plans were discovered scattered throughout the property. These materials should be maintained and the owner should be notified of their importance before the building is cleaned out.

Building Plans and Documents have been removed for privacy.

The 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, FHA Requirements, Indoor Air Quality, and Property Security Systems.

Out of Scope Issues:

Plumbing: Determining adequate pressure and flow rate, fixture-unit values and counts, verifying pipe sizes, or verifying the point of discharge for underground systems. Observation of flue connections, interiors of chimneys, flues or boiler stacks, or tenant owned or maintained equipment. Removing of electrical panel and device covers, except if removed by building staff, EMF issues, electrical testing, or operating of any electrical devices, or opining on process related equipment or tenant owned equipment. Examining of cables, sheaves, controllers, motors, inspection tags, or entering elevator/escalator

pits or shafts.

Out of Scope Issues

Determining NFPA hazard classifications, classifying, or testing fire rating of assemblies.

Out of Scope Issues:

Operating appliances or fixtures, determining or reporting STC (Sound Transmission Class) ratings, and flammability issues/regulations.

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. Operating 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 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.

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.

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 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. 

Opinions of probable costs were obtained with the combination of general construction knowledge and the use of RSMEANS Cost Estimating Software which is updated quarterly. These cost estimates are not guarantees and should only be used a general guide. Detailed quotes from local contractors can vary greatly and should be obtained and vetted.

The report identifies “immediate needs” (fire and/or life safety issues and issues for which the lack of correction thereof could lead to potential significant losses as well as those which will tend to accelerate deterioration of the improvements) observed at the Property. Aspects of immediate needs with estimated correction costs less than $3,000 is typically not reported unless such issues have an aggregate cost of $3,000 or more. All fire and life safety items are reported but the cost to cure are not reported unless they meet the above criteria. Short Term Cost Summary Items are capital needs defined as replacement costs in excess of $3,000 (except for normal operational costs, regular and/or preventative maintenance costs, tenant improvement work, or costs of voluntary improvements to the Property). Immediate and reserve cost estimates are based on invoice or bid documents provided by the owner or facility construction costs developed by construction resources such as RSMEANS, CHI’s experience with past costs for similar projects, city cost indexes, and assumptions regarding future economic conditions. Evaluation of Fixtures, Furnishings & Equipment are not included for any property types.