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.
4) "I inspect the property condition of Colorado hotels, motels and resorts so that you can have peace of mind about your hospitality investment." - James Eubank, Certified Professional Inspector
Additions and modifications: Restaurant area modifications
5) 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. Areas around the exterior may also be obscured by stored items. The inspector in general does not move business equipment or 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, equipment or debris are eventually moved, damage or problems that were not noted during the inspection may be found.
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) At the client's request, certain areas and conditions were excluded from the inspection: Accessibility, Rural Water Quality, Technical Pool Equipment, Technical Restaurant Equipment, and Fitness Equipment.
9) In order to make this Report available as a Sample Report, any personal identifying information and property location information have been removed.
10) Property was in overall good condition. Water damage was found at several exterior siding locations. Plumbing had recent breaks in the recirculation system and drain system. State boiler inspection was overdue. Several of the rooftop HVAC units were older and will need eventual replacement. Many windows were fogged due to broken seals. Dining area needed extensive remodeling. See line items below for these and other concerns.
11) North retaining wall was in good condition at the time of inspection.
12) General surface drainage pattern was from south to north, with a drain opening at the south side of the parking lot. Some standing water was noted in the parking lot. Standing water can be caused by overwatering of landscaping or by debris clogging the drainage area. Recommend keeping all drainage areas clear.
13) Main drainage ditch ran from north to south along the east (road) side of the property. Culverts under the entry driveway were clogged with plant material. This will cause water to accumulate in the drainage ditch. Standing water will cause insects to increase, and standing water can potentially overflow onto the property. Recommend cleaning out these culverts and keeping them clean at all times.
14) Cracks, holes, settlement, heaving and/or deterioration were found in the parking lot. Recommend that qualified contractor repair as necessary.
15) Cracks, holes, settlement, heaving and/or deterioration were found in some sidewalks. Recommend that qualified contractor repair as necessary.
16) Dumpster was located in the enclosure on the west side of the building. This enclosure also contained various trash/debris items. This collection of debris can attract pests and can be a safety hazard. Recommend completely cleaning out this enclosure.
17) Grass and landscaping appeared to be overwatered. Water was standing in some areas of the grass lawn and on the south end of the parking area. Water damage was noted in some sections of the exterior paneling, and trim. See line 12 above and line 20 below. Recommend reducing the amount of irrigation water that is used for grass and landscaping.
18) An additional gravel parking area for large vehicles was located west of the main property.
Wall covering: Stucco, Stone or faux stone veneer, Composition paneling
Foundation type: Concrete slab on grade
19) Soil was in contact with or less than 6 inches from siding, trim or structural wood. This is a conducive condition for wood-destroying organisms. Recommend grading or removing soil as necessary to maintain a 6-inch clearance. If not possible, then recommend replacing untreated wood with pressure-treated wood. Installation of borate-based products such as Impel rods can also reduce the likelihood of rot or infestation if soil cannot be removed. Note that damage from fungal rot and/or insects may be found when soil is removed, and repairs may be necessary.
20) Wood trim and composition panel siding were damaged or deteriorated in many locations, especially on the north side and in the center yard area. Exterior areas around many PTAC units were deteriorated. This type of water damage can occur with constant watering or overwatering of lawns. Other environmental sources can also cause this type of damage. Recommend repair or replacement of all damaged trim and siding.
Some manufacturers (e.g. Louisiana Pacific) recommend a repair process for this type of composition siding, where affected areas are sealed with Permanizer Plus, a flexible primer made by Pittsburgh Paint, followed by two coats of 100% acrylic latex paint. This sealant must be applied to the bottom edges using a brush. The face of the siding can be sprayed. The Permanizer Plus sealer isn't required for edges that aren't swollen, cracked or deteriorated, but the acrylic latex should still be brushed on these edges. Recommend that a qualified contractor evaluate and replace siding as necessary, and/or seal and repaint as necessary. Repairs should be made per the siding and/or sealant manufacturer's installation instructions, and per standard building practices.
21) A horizontal crack was noted in the stucco surface on the west side. Moisture can enter cracks or damaged areas and further deteriorate the stucco. Also the wall behind the stucco can become damaged from moisture. Note that areas behind the stucco are inaccessible and excluded from this inspection. Recommend that a qualified contractor repair stucco as necessary.
22) The paint finish in some trim areas was failing (e.g. peeling, faded, worn, thinning). Siding and trim with a failing finish can be damaged by moisture. Recommend that a qualified contractor prep (e.g. clean, scrape, sand, prime, caulk) and repaint the building trim where necessary and per standard building practices. Any repairs needed to the siding or trim should be made prior to this.
23) Stucco had been repaired in at least two locations near exterior faucets. Recommend asking seller about these repairs.
24) Significant wall damage was found on the west side below a roof scupper (drainage). Recommend evaluation and repair by a qualified contractor.
25) A few random stones were missing from the exterior stone veneer. Recommend replacing stones as needed.
Roof surface material: Synthetic plasticized or rubberized single-ply membrane, with gravel ballast
26) Skylights were in good condition at the time of inspection.
27) Roof substructure was in good condition at the time of inspection.
28) Vegetation such as trees, shrubs, and/or vines overhung the roof surface or were in contact with the roof edge. Organic debris such as leaves or needles are likely to accumulate in roof drains and on the roof surface. Drains can overflow and cause water to come in contact with the building exterior or water can accumulate around the foundation. This is a conducive condition for wood-destroying organisms. Vegetation in contact with the roof can damage the roof surface and/or the roof drainage system. Recommend pruning vegetation so as to not be in contact with the roof and to not overhang the roof surface. If vegetation is too tall then it should be pruned at least 10 feet above the roof surface.
29) Roof surface was comprised of a synthetic rubberized membrane with gravel ballast. The membrane was mostly obscured by the gravel ballast. Visible roof surface was in overall acceptable condition at the time of inspection. Roof drains were appropriately spaced and were not clogged. The drainage system below the roof drains could not be observed or inspected. One tear was noted in the roof membrane. Recommend repair as needed. Also recommend evaluation by a qualified roofing contractor within the next two years, to obtain an estimate of future life expectancy for the roof surface.
30) Apparent flammable material had accumulated in two roof areas. Grease from the kitchen ventilation, and apparent lint from the laundry, were present around their respective ventilation sources. These materials are potential fire hazards. Recommend removing these materials, along with the affected gravel, and replacing the gravel in these two areas.
31) East parapet wall was in good condition at the time of inspection. Two secondary parapets were also noted on the south side of the roof.
32) Downspout on the west side was too short. This will allow water to fall onto the stucco surface and next to the foundation. Recommend increasing the downspout length and installing an extension to direct water away from the foundation.
33) Electrical system was in overall good condition at the time of inspection.
West mechanical room contained two main disconnect panels, labeled MDPI1-1 and MDPI1-2.
East mechanical room contained two main disconnect panels, labeled MDP2-1 and MDP2-2.
34) Panels in east mechanical room 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 removing all obstructing storage to provide a clear working space in front of electric panels.
35) No carbon monoxide alarms were visible in mechanical rooms. This is a potential safety hazard. Recommend installing approved CO alarms close to any gas-fired appliances, such as water heaters and boilers, and in accordance with the manufacturer's recommendations.
36) In the event of electrical emergency, the main disconnect breakers were located at the bottoms of the main panels. Main disconnect breakers were labeled 1200 amps. Note that there are four such breakers, two in the east mechanical room and two in the west mechanical room. All four breakers would need to be switched off in order to completely disconnect electrical service for the entire property.
37) Four additional subpanels were located in the west mechanical room. Also, many subpanels were found in hallways throughout the guest room areas of the building.
Location of main water shut-off: Pool mechanical room
Water service: Public
Supply pipe material: Copper
Drain pipe material: Plastic
Location of main fuel shut-off valve: At gas meter, in west exterior enclosure
38) The landscape sprinkler system was not operated and is excluded from this inspection. Recommend asking seller to demonstrate the operation of the sprinkler system, and to show how to winterize the system to prevent freezing.
39) Plumbing system was in overall acceptable condition at the time of inspection. However, at least two recent breaks had occurred in the plumbing system.
Manager described a break in the hot water recirculation system. This break was within the slab floor near guest room 144. Manager stated that water seeped up onto the floor, concrete slab had to be removed for repair, then new slab poured and new carpet installed.
Maintenance man described a similar situation in the restaurant dining area, where a sewer line apparently broke. Repairs have been made.
Because of these recent concerns, and because of the age of the plumbing system, recommend close monitoring of all parts of the plumbing. Recommend budgeting for possible similar plumbing repairs in the future. For example, the maintenance man stated that the drain is collapsed below the mop sink in the kitchen mechanical room. He stated that the mop sink does still drain. However, repairs are likely in the future, including slab removal and replacement as needed.
40) Main water shutoff for the building was the blue wheel in the pool mechanical room. An apparent floor shutoff was also present but was significantly rusted. This floor shutoff may not be needed. However, recommend evaluation by a qualified plumber to determine the operation of this floor shutoff.
General heating distribution type(s): Ducts and registers, Individual heaters
Last service date of primary heat source: Ongoing
Source for last service date of primary heat source: Maintenance man
42) Guest rooms had individual packaged terminal air conditioners (PTACs). Over ten different PTAC models were noted in the random guest rooms that were inspected. All PTACs were in good condition and operational except for room 118.
43) Boiler (hot water source) was located in the second floor mechanical room. Colorado state inspection ID # -removed-, last inspected -removed-. This boiler is overdue for state inspection, which should be done annually. Manufacturer Raypak, serial number 0281199432, age 15 years (2002). Boiler had minor interior rust in the flame/heatexchanger area. Temperature 120°F, pressure 50 psi, within normal limits. Recommend scheduling a state boiler inspection now and every year.
Attached storage tank was Ruud Commercial, in good operational condition.
44) Fifteen rooftop HVAC units provided air control to all areas of the building except for guest rooms. Units ranged in age from original installation 1982 to 2009. All units were operational at the time of inspection. Only eight of the fifteen units had legible serial numbers. All other serial numbers were missing and therefore the units' ages could not be determined. Note that the photo numbering system used in this report does not correspond to the spraypainted numbers on some of the rooftop units.
#3, Lennox, 10 years old (2007)
#5, Lennox, 20 years old (1997)
#7, Trane, 8 years old (2009)
#8, Trane, 8 years old (2009)
#9, Trane, 8 years old (2009)
#10, Trane, 17 years old (2000)
#11, Carrier, 35 years old (1982)
#12, Lennox, 10 years old (2007)
45) Pool and spa equipment was located in a separate pools-spa mechanical room. All equipment was operational at the time of inspection. Spa boiler was older and showed signs of minor corrosion. Recommend evaluation of the pool and spa equipment by a qualified pool technician.
46) Hydrobank system and pumps were located in the second floor mechanical room. System was operational, but pump P4 was leaking. A bucket was sitting under the pump to catch to hydro fluid. Recommend repair as needed.
47) A Reznor ceiling space heater was located in the kitchen mechanical room. Serial number 1F23183N499. This older heater was functional, but is generally considered inefficient. Recommend budgeting for a more efficient replacement heater.
48) Two walk-in refrigeration units were located next to the kitchen. Both were operational at the time of inspection. However the freezer unit had significant ice buildup in its fan unit. This will greatly reduce the efficiency of the freezer and will eventually cause the freezer to stop working. Recommend keeping the ice buildup cleaned out at all times.
49) Kitchen cooktop ventilation was working properly at the time of inspection. However see line 30 above.
50) The estimated useful life for most rooftop HVAC units is 20-25 years. Seven of the units had no serial numbers. The inspector was unable to determine the age of these units. Be aware that these units may be near, at, or beyond their useful lifespans and may need replacing or significant repairs at any time. Recommend attempting to determine the units' ages (ask property owner or service technician), and budgeting for replacements as needed.
51) Fins were damaged on one or more rooftop units. This will reduce their efficiency. Recommend repairs as needed.
52) Some registers were dirty, indicating that the supply ducts can also be dirty. Recommend cleaning as needed.
53) A random sample of twenty guest rooms were inspected. All guest rooms were in good condition, with a few minor to moderate concerns as described:
110 - No concerns found.
113 - No concerns found.
118 - PTAC did not work. Recommend repair as needed.
127 - No concerns found.
133 - No concerns found.
143 - No concerns found.
174 - No concerns found. This guest room was handicap accessible.
175 - No concerns found.
185 - Wallpaper upper border had been removed, leaving some wallpaper damage. Recommend wallpaper repair. This guest room was a suite.
188 - No concerns found. This guest room allowed pets.
201 - No concerns found.
218 - No concerns found.
219 - Wallpaper upper border had been removed, leaving some wallpaper damage. Recommend wallpaper repair. This guest room was a suite.
226 - Diverter tub/shower was broken. Recommend repair as needed.
227 - No concerns found.
260 - No concerns found.
263 - No concerns found.
268 - Ozinator in use due to guest smoking. Did not enter.
269 - Window was fogged, indicating broken seal. Recommend replacement.
284 - Wallpaper upper border had been removed, leaving some wallpaper damage. Recommend wallpaper repair. This guest room was a suite.
294 - This was a smoking guest room. No additional ventilation had been added to the room. Manager stated that seven smoking rooms were clustered together in this area of the building. Recommend adding additional ventilation as needed to remove all smoke.
54) Condensation or staining was visible between multi-pane glass in many windows. This usually indicates that the seal between the panes of glass has failed or that the desiccant material that absorbs moisture is saturated. As a result, the view through the window may be obscured, the window's R-value will be reduced, and accumulated condensation may leak into the wall structure below. Recommend that a qualified contractor evaluate and repair windows as necessary. Usually, this means replacing the glass in window frames.
Be aware that evidence of failed seals or desiccant may be more or less visible depending on the temperature, humidity, sunlight, etc. Windows or glass-paneled doors other than those that the inspector identified may also have failed seals and need glass replaced. It is beyond the scope of this inspection to identify every window with failed seals or desiccant.
55) Minor cracks, nail pops and/or blemishes were found in walls and/or ceilings in one or more areas. Cracks and nail pops are common, are often caused by lumber shrinkage or minor settlement, and can be more or less noticeable depending on changes in humidity. They did not appear to be a structural concern, but the client may wish to repair these for aesthetic reasons. For recurring cracks, consider using an elastic crack covering product: http://www.google.com/search?q=elastic+crack+cover
56) Stains were found in some ceiling areas of the second floor Colorado Room, the second floor housekeeping room, and the second floor hallway. However, no elevated levels of moisture were found. The stain(s) may be due to past roof, duct, or plumbing leaks. Consult with the property owner and monitor the stained area(s) in the future, especially after heavy or prolonged rain. If elevated moisture is found in the future, then recommend that a qualified contractor evaluate and repair as necessary.
57) Minor cracks were found in the concrete slab floor in the bar area. These are common and appeared to be only a cosmetic issue. Recommend occasional monitoring to make sure cracks do not increase and floor does not shift.
58) Restaurant dining area was closed for remodeling. Floor had been patched due to a sewer drain leak. See line 39 above. Booths and walls were in poor condition. Recommend complete remodeling as needed.
59) An exterior plywood panel in the second floor mechanical room was loose. Cold air and pests can enter the room. Recommend repair as needed.
60) Ventilation fan was broken in the restroom for the first floor housekeeping area. Recommend repair as needed.
61) Wallpaper was loose in one location in the second floor hallway. Recommend repair as needed.
62) All carpeting was in good condition at the time of inspection.
63) Common areas in the interior courtyard were in good condition. Area had higher humidity than outdoors due to the open pool.
64) Laundry equipment was operational at the time of inspection.
65) 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. The items on this list were provided by the agencies as listed. In the event of any future plumbing, electrical, mechanical or building construction, new permit(s) will be required.
66) The following persons were interviewed to augment the walk-through survey and to assist the consultant's understanding of the subject property:
67) The following documents were not reviewed. Suggest obtaining this information directly from the seller or seller's agent:
Certificate(s) of Occupancy
Any fire/safety inspection records
Any warranty information (roof, HVAC, etc)
Any current or pending plans for material repairs or improvements
68) 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.
69) 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
70) A fire suppression (sprinkler) system was not installed on the premises. A complete fire safety inspection is beyond the scope of the Standard Commercial Inspection. Upon the buyer's possession of the building, recommend contacting the Fire Department and requesting an on-site fire safety inspection. The fire safety inspector will make specific recommendations based on the building's intended use. Fire extinguishers were last inspected in March 2017 and will need next inspection in March 2018. A fire hydrant was located at the northeast corner of the building.
71) 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.
72) General manager stated that -removed- did their most recent inspection on -removed-, with a Condition score of -removed-.
Submitted (this date), 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.
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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.