This report published on Friday, October 12, 2018 6:11:20 AM MDT
The inspection and report are provided subject to the terms of the Standard Commercial Inspection Agreement which is attached to this report.
How to Read this Report
This report is organized by the property's functional areas. Within each functional area, descriptive information is listed first and is shown in bold type. Items of concern follow descriptive information.
Concerns are shown and sorted according to these types:
Note or Summary Information
Click here for a glossary of building construction terms.Contact your inspector If there are terms that you do not understand, or visit the glossary of construction terms at https://www.reporthost.com/glossary.asp
1) The purpose of the Standard Commercial Inspection is to determine the current condition of the improvements located on a parcel of commercial real estate, by performing a walk-through survey and conducting research. The goal is to identify and communicate physical deficiencies to the user. The term physical deficiencies means the presence of conspicuous defects or material deferred maintenance of a subject property's material systems, components, or equipment as observed during the field observer's walk-through survey.
2) The scope of service for this Standard Commercial Inspection includes the following:
Documentation review and interviews to augment the walk-through survey and to assist the consultant's understanding of the subject property.
Walk-through survey to visually observe the subject property so as to obtain information on material systems and components for the purposes of providing a brief description and identifying physical deficiencies to the extent that they are easily visible and readily accessible.
Preparation of opinions for the suggested remedy of the material physical deficiencies observed.
Standard Commercial Inspection Report of the information gathered and opinions generated.
3) The Standard Commercial Inspection was conducted according to International Standards of Practice for Inspecting Commercial Properties (2014). The inspection, the Report, and its uses are strictly limited to the scope as described herein. The inspector is a Certified Professional Inspector # NACHI04101795, who works independently of any real estate broker, Realtor association, lender, investor, buyer, seller, appraiser, contractor, or other real-estate related business. The inspector does not modify or omit information in order to influence any person or company. The inspection is in no way intended to be a warranty or guarantee, express or implied, regarding the future use or operability of the building or its components.
Client present for discussion at end of inspection: Yes
Weather conditions during inspection: Clear, cool
Type of building: Multi-use offices + restaurants
Age of main building: 4 years (2013)
Source for main building age: Denver Tax Assessor
Front of building faces: West
Additions and modifications: Interior walls & electrical based on tenant needs. Basement storage & prep areas.
4) Many areas and items at this property were obscured by furniture, stored items and/or business equipment. This often includes but is not limited to walls, floors, windows, inside and under cabinets, under sinks, on counter tops, in closets, behind window coverings, under rugs or carpets, and under or behind furniture. The inspector in general does not move business equipment, personal belongings, furnishings, carpets or appliances. When furnishings, stored items or debris are present, all areas or items that are obscured, concealed or not readily accessible are excluded from the inspection. The client should be aware that when furnishings, stored items or debris are eventually moved, damage or problems that were not noted during the inspection may be found.
5) The client should be aware that a break-in period occurs during the first few years after a building is constructed. Some amount of settlement and shrinkage is inevitable as temperature and humidity varies during the seasons, affecting soil expansion. Systems may need adjustment or repair after experiencing constant, prolonged and/or heavy usage.
6) Material defect is a condition with a real property or any portion of it that would have a significant adverse impact on the value of the real property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect.
7) Photos have been reduced to create a concise report. High-resolution original photos are available on request. Photos are included to help you better understand the condition of the property at the time of the inspection. Photos are intended to show an example of a concern, but they may not show every occurrence and may not accurately show its severity. Not every concern will have a photo. Do not rely on photos alone.
8) Subject property was in overall good condition at the time of inspection. A maintenance person was available for the building, but at least some evaluation and maintenance projects appeared to be performed "on request" instead of being regularly scheduled. This had resulted in random minor damages or deteriorations, many of which were cosmetic. A significant safety hazard was found at the fifth floor guardrail, and a moderate safety hazard was noted at the street level guardrail. Many water stains were found on the walls of the L1 parking area. Roof, electrical, plumbing and HVAC systems were in good operational condition. Due to their relatively recent installations, all of these systems should have most of their expected lifespans still ahead of them.
9) Property had a full geotechnical evaluation prior to construction. See lines 43 and 55 below.
10) Minor cracks were found in the concrete parking, but no trip hazards were found. The client may wish to have repairs made for cosmetic reasons.
11) Guardrails with drop-off had gaps that were too large. This poses a safety hazard for children (e.g. falling, getting stuck in railing). Guardrails should not have gaps or voids that allow passage of a sphere equal to or greater than 4 inches in diameter, or 6 inches in diameter at triangular spaces between stair edges and guardrails. The current horizontal balusters can be climbed, which is also a safety hazard for children. Recommend replacing with vertical balusters. Guardrails were slightly loose, and were stabilized with a metal washer at the NW upright. Entrance gate was not square with the guardrails. Recommend that a qualified contractor replace guardrails per standard building practices.
12) Parking for the subject property was limited. Designated spaces in the two parking levels may or may not be adequate for the building's employees. Customers will typically need to find on-street parking which was also quite limited.
13) Dumpsters for waste and for recycling were located at the NE corner of the building. See line 43 below.
14) Container for cooking oil recycling was located at the NE corner of the building. See lines 43 and 50 below.
15) Significant rust stains were found below the decorative fencing at the SW corner. Recommend repainting the decorative fencing with rust-inhibiting paint. Recommend cleaning stains off concrete.
16) Parking gate mechanism was broken at the basement parking entrance. If needed, then recommend replacement. If not needed then recommend removal.
17) West side of property had plantable spaces near the west curb and in a nearby planter box. In the spring, recommend installation and maintenance of xeriscape vegetation, by a qualified landscape contractor.
Foundation type: Concrete slab, Daylight parking garage east-facing
Foundation/stem wall material: Poured in place concrete
18) Random minor damage and/or deterioration was noted on the building exterior. For example, cement board was cracked/peeling in at least two locations, and other random minor gaps/damage were found. These items did not present a structural concern, but should nevertheless be addressed. Recommend evaluation and repairs as needed by a qualified commercial contractor.
19) Foundation was damaged at the SE corner. Over time, water can intrude into this area, creating expansion and movement conditions. Recommend repair by a qualified concrete contractor.
20) Wall had been repaired at the NW corner. Cement board had been replaced, and a metal barrier had been installed to protect the corner from vehicle damage.
21) Significant water stains were found on walls of the L1 parking area. Most likely cause is condensation from environmental moisture trapped in the heated space directly above the parking ceiling. However other causes cannot be completely ruled out. Recommend cleaning all stains, and occasionally monitoring these areas, especially during monsoon season (July-August). If stains become persistent, then recommend further evaluation of the area above the parking ceiling to determine the need for insulation or other repairs.
22) At the fifth floor deck, guardrails with drop-off greater than 50 feet had horizontal balusters that can be climbed, which is a safety hazard for both children and adults. Recommend replacing with vertical balusters. Recommend that a qualified contractor replace guardrails per standard building practices.
23) At the fifth floor deck, drainage was accomplished through gaps in the floor tiles. Gaps were approximately 3/8 inch wide. During times of heavy snowmelt, gaps will be inadequate to provide rapid drainage, and snow and ice will linger on the deck floor, limiting use of the deck during some weather conditions. If desired, recommend evaluation by a qualified contractor to determine other deck drainage options.
Roof surface material: Synthetic plasticized or rubberized single-ply membrane
24) Apparent ponding (pools of standing water) was found at one or more locations on the flat or low-slope roof surface. Even on a flat roof, water should be removed by a drainage system so that any remaining water evaporates within 48 hours after it rains. Prolonged standing water can result in roof leaks. Recommend that a qualified contractor evaluate and repair as necessary to prevent ponding.
25) Roof drainage system was in good condition at the time of inspection.
26) EPDM roof surface was in good condition at the time of inspection.
27) Roof and steel substructures were in good condition at the time of inspection.
28) Electric and plumbing systems were in good condition at the time of inspection. Appropriate hot water was found at restrooms and at restaurant fixtures.
29) Gas meter array was located at the NE corner of the building.
30) A generator was installed for backup electricity. Generator was located at the NE corner of the building. See lines 43 and 49 below.
31) Electric panels in L4 and L2 were obstructed by storage and had inadequate working space. This is a safety hazard when opening or working in panels. Electric panels should have the following clearances:
An open area 30 inches wide by 3 feet deep in front of the panel
6 feet 3 inches of headroom in front of the panel
The wall below the panel is clear to the floor
The center of the grip of the operating handle of the switch or circuit breaker not more than 6 feet 7 inches above the floor or working platform
Recommend advising tenants to keep panel areas clear at all times. If panels must be opened for repairs, then a qualified electrician should perform repairs.
32) The electric service was configured so that too many hand movements were necessary to turn off all power for the service. No main disconnects were found for the building or for the individual tenant units. Six or fewer circuit breakers should be required to turn off all power to a tenant unit. This is a potential safety hazard during an emergency when the power needs to be turned off quickly. Recommend that a qualified electrician repair per standard building practices. Recommend installing single main disconnect breakers in each tenant unit.
33) Water meter and main plumbing shutoff were located in the riser room adjacent to the basement parking area.
34) Recommend replacing or washing HVAC filters upon taking occupancy depending on the type of filters installed. Regardless of the type, recommend checking filters monthly in the future and replacing or washing them as necessary. How frequently they need replacing or washing depends on the type and quality of the filter, how the system is configured (e.g. always on vs. "Auto"), and on environmental factors. Note that inspected filters were dirty at the time of inspection and were overdue for replacement. See lines 43 and 51 below.
35) Insulation on the air conditioning condensing unit's refrigerant lines (exterior) was deteriorated or missing at the NE corner (ground level). This may result in reduced efficiency and increased energy costs. Recommend that a qualified person replace or install insulation as necessary.
36) The following HVAC units were inspected and found to be in good operational condition. Note that a few of the units had labels such as "RTU-1," however that labeling was inconsistent and had duplicate numbers. For purposes of this report the inspector has designated new RTU numbers based on the units' locations.
RTU-1: Trane Voyager, C14B00669, age 3 years (2014)
RTU-2: Trane Voyaher, C14B00670, age 3 years (2014)
RTU-3: Mitsubishi Electric Mr Slim R410A, serial number obstructed
RTU-4: Carrier WeatherMaker, 4316C79545, age 1 year (2016)
RTU-5: Carrier WeatherMaker, 4316C79546, age 1 year (2016)
RTU-6: Accurex, 14858971, age unknown
RTU-7: Carrier WeatherMaker, 4316C79547, age 1 year (2016)
RTU-8: Mitsubishi Electric Mr Slim R410A, PUY-A12NHA4R1, age unknown
RTU-9: Carrier, 5116P43591, age 1 year (2016)
RTU-10: Carrier, 5116P43592, age 1 year (2016)
RTU-11: Trane Voyager, 152010392L, age 2 years (2015)
RTU-12: Trane Voyager, 141010192D, age 3 years (2014)
NE corner: Trane, 14094H11AF, age 3 years (2014)
Basement storage: Carrier, 4616X89324, age 1 year (2016)
Basement coolers: Two condensing units for Ronin, inspected 10/27/16
37) Interior spaces were occupied by tenants as indicated in -removed-. See also Stacking Plan in line 43 below.
38) Restrooms were in good cosmetic and operational condition at the time of inspection.
39) Elevator was operating correctly with timely inspections on record. See lines 43 and 48 below. Elevator door had a horizontal scratch at the lower right exterior, and several interior scratches. Exterior scratch can indicate misalignment of the door. Interior scratches can be caused by carts or other large objects. Recommend repairs as needed, to include evaluation of the door alignment.
40) Interior systems and insulation were in good condition at the time of inspection.
41) Water stains were noted at the ceiling and floor in the riser room adjacent to the basement parking area.
42) L5 restaurant cooking odors were confined to the fifth floor. No odors were detected or mentioned in the L4, L3 and L2 office areas.
43) The following documents were reviewed in order to augment the walk-through survey and to assist the consultant's understanding of the subject property:
The consultant is not required to independently verify the information provided and may rely on information provided to the extent that the information appears reasonable to the consultant. In the event of any future plumbing, electrical, mechanical or building construction, new permit(s) will be required.
44) The following persons were interviewed to augment the walk-through survey and to assist the consultant's understanding of the subject property:
45) The following documents were not reviewed. Suggest obtaining this information directly from the seller or seller's agent:
Certificate(s) of Occupancy
Any warranty information (roof, HVAC, etc)
Any current or pending plans for material repairs or improvements
Previous ADA surveys, if any
46) Two comments based on ALTA Survey:
47) Backflow Testing document stated that backflow system was tested on -removed-.
48) Elevator Permit indicated that the elevator was last inspected -removed-.
49) Generator document represents an agreement between -removed-.
50) Grease Pumping document indicates -removed-.
51) HVAC document was -removed-.
52) Snow Removal document describes -removed-.
53) Towing document presents the towing agreement-removed-.
54) Fire Testing document was the quarterly inspection of the fire suppression system -removed-.
55) Geotechnical Investigation document presented three significant recommendations in its Summary of Conclusions section:
Item 3 recommended that the building be constructed on straight-shaft drilled piers bottomed in bedrock, due to concerns about undocumented fill and expansive claystone soils.
Item 4 likewise referenced undocumented fill and expansive claystone when constructing the slab-on-grade garage floor.
Item 5 recommended a subsurface foundation wall drain sloping toward sumps for pumping or outfall.
Since these structural components are below-ground and not visible for inspection, recommend checking with -removed- to determine if these recommendations were followed.
56) -removed- contains the laser measurements for this building's interior areas and rentable areas.
57) Phase 1 Environmental Assessment found no evidence of recognized environmental conditions in connection with the property. A previous groundwater contamination program was closed by the Division of Oil and Public Safety in -removed-.
58) This Inspection is like a "snapshot" of the property's condition on a specific date and time. Those conditions will change, so you need to keep inspecting your property during the time you own it:
Verify that any air conditioning condensate water is draining properly to the exterior after operation on a hot day.
Verify that the gutters and downspouts are performing during a hard rain.
Verify that no water is ponding on the property after a hard rain.
Verify that no dimming or flickering of lights occurs.
Verify that no repeated resetting of any circuit breakers is necessary.
Verify that the quantity of the hot water supply is adequate.
Verify that the performance of the HVAC systems are adequate.
Verify that no leaking is present in ceilings or attics during a hard rain.
And inspect any of the other concerns that were mentioned in this Report.
59) The Standard Commercial Inspection and Report are performed and prepared for the use of -removed-. Consultant accepts no responsibility for use or misinterpretation by third parties. This assessment and report are in no way intended to be a guarantee or warranty, express or implied, regarding the future use, operability, habitabiity, or suitability of the commercial property or its components. Consultant assumes no liability for the cost of repair or replacement of unreported defects or deficiencies either current or arising in the future. Consultant does not perform engineering, architectural, plumbing, electrical, or any other job function requiring an occupational license in the jurisdiction where the assessment is taking place.
Inspection standard contains certain limitations, exceptions, and exclusions. Examples include, but are not limited to:
identifying capital improvements
providing cost estimates for recommended repairs
moving or dismantling any items or structures
preparing engineering calculations
inspecting for pests
reporting on subterranean conditions
entering any area that is unsafe or that would damage property
providing opinion on a system that is shut down
providing opinion on security of building
guaranteeing compliance with laws and regulations, including building codes
60) A fire suppression system was installed on the premises, with exterior standpipe located at the NW corner of the building. These are specialty systems and are excluded from this inspection. Comments in this report related to this system are made as a courtesy only and are not meant to be a substitute for a full evaluation by a qualified specialist. These systems normally require periodic inspection by a specialist to ensure correct operation. For example, checking for possible backflow contamination of the potable water system, or correct operation of valves and gauges. Auxiliary drain for backflow was located at the east exterior near the back parking entrance. Recommend that a qualified specialist inspect this system quarterly in accordance with National Fire Prevention Association (NFPA) 25 standards. See also lines 43, 47 and 54 above. Fire extinguishers were last inspected in Sept 2017.
61) Although the subject property was in overall good structural condition, some systems showed a lack of regularly scheduled maintenance. Ongoing preventative maintenance is a key to maintaining the property's value and its usefulness for the client. Recommend establishing a written Property Maintenance Plan. This plan should include all major systems of the building, such as roof, foundation, electrical, plumbing, HVAC. All public areas of the building, including offices and restrooms, should be included in the plan. Fire safety and other possible safety hazards need to be addressed. It is important to include exterior areas in the Property Maintenance Plan, so that issues of erosion, storm drainage, weed control, gutters, parking, and access/egress are addressed consistently. Depending on the client's requirements, property maintenance may be performed by company employees, or may be contracted to a professional maintenance service company.
Submitted -removed-, by Field Observer and Certified Professional Inspector:
This Report has been prepared according to International Standards of Practice for Inspecting Commercial Properties (2014), including limitations as described in those Standards. The inspection is comprehensive but not exhaustive.
Your opinion matters to me. It helps me to be a better inspector when you tell me your questions and comments. Let me hear from you!
EXPIRATION DATE: This Report describes the property's condition on the date of the Standard Commercial Inspection. Conditions can change daily due to ongoing use, deferred maintenance, and environmental circumstances. Your inspection follow-up service expires 60 days after the inspection date. If you do not purchase this property, then this Standard Commercial Inspection Report expires on the date that the purchase contract expires or is canceled. If you like, you may allow others to read this Report as a part of your informed decision-making. You are not authorized to pass this Report on to other potential buyers, or to other real estate agents.