REPORT OF PROPERTY CONDITION ASSESSMENT of 420 NE HOLLADAY … · 31/01/2018 · 420 NE Holladay...

REPORT OF PROPERTY CONDITION ASSESSMENT

of

INN AT THE CONVENTION CENTER

420 NE HOLLADAY STREET PORTLAND, MULTNOMAH COUNTY, OREGON 97232

Prepared for

PROSPER PORTLAND 222 NW 5TH AVENUE

PORTLAND, OREGON 97209

Prepared by

Professional Service Industries, Inc. 20508 56TH Avenue West, Suite 101

Lynnwood, WA 98036

January 31, 2018

PSI Project 07121679-1

Project Number: 07121679-01 January 31, 2018

www.intertek.com/building

Professional Service Industries, Inc. 20508 56th Avenue West | Suite 101 | Lynnwood, Washington 98036

Phone: (425) 409-2504 Fax: (425) 582-8193

Prosper Portland 22NW 5th Avenue Portland, Oregon 97209 Attention: Shelly Haack | Business Opportunity Officer

Phone: 503-360-4555 E-Mail: [email protected]

Subject: Report of Property Condition Assessment of Inn at the Convention Center

420 NE Holladay Street |Portland, Multnomah County, OR 97232 Dear Ms. Haack: In accordance with our proposal number 0712-231396, dated December 20, 2017, Professional Service Industries, Inc. (PSI) has performed a Property Condition Assessment of the above referenced property. Please find one copy of the report enclosed. Thank you for choosing PSI as your consultant for this project. If you have any questions, or if we can be of additional service, please call our local PSI office at (425) 409-2504. Respectfully Submitted:

PROFESSIONAL SERVICE INDUSTRIES, INC.

Deborah Priest, P.E. Jason C. Barfield, RRO, CDT Field Observer PCR Reviewer Principal Consultant

Proposal Number: 07121679-01 Inn at the Convention Center

January 31, 2018 Page i


TABLE OF CONTENTS

1.0 SUMMARY ...................................................................................................................... 1 1.1 OPINION OF COSTS .......................................................................................... 2

2.0 USE AND QUALIFICATIONS ......................................................................................... 3 2.1 RELIANCE AND USE BY OTHER PARTIES ....................................................... 3 2.2 USE BY OTHER PARTIES .................................................................................. 3 2.3 STANDARD OF CARE AND WARRANTIES ....................................................... 3 2.4 QUALIFICATIONS ............................................................................................... 4

3.0 CONTRACT AND PURPOSE OF SERVICES ................................................................. 6 3.1 CONTRACT ......................................................................................................... 6 3.2 PURPOSE OF SERVICES .................................................................................. 6

4.0 SCOPE, METHODOLOGY, & RESOURCES .................................................................. 7 4.1 SCOPE OF SERVICES ....................................................................................... 7 4.2 METHODOLOGY ................................................................................................. 7 4.3 RESOURCES .................................................................................................... 11 4.5 ASSESSMENT LIMITATIONS ........................................................................... 13 4.6 SIGNIFICANT ASSUMPTIONS ......................................................................... 14

5.0 SITE DESCRIPTION AND CONDITION ........................................................................ 15 5.1 GENERAL DESCRIPTION ................................................................................ 15 5.2 SITE IMPROVEMENTS ..................................................................................... 15 5.3 STRUCTURE, FOUNDATION, & EXTERIOR WALLS ....................................... 19 5.4 ROOF ................................................................................................................ 21 5.5 MECHANICAL, ELECTRICAL, & PLUMBING SYSTEMS .................................. 23 5.6 VERTICAL TRANSPORTATION SYSTEMS ...................................................... 26 5.7 FIRE, LIFE SAFETY, & SECURITY SYSTEMS ................................................. 26 5.8 HOTEL INTERIOR FINISHES............................................................................ 28 5.9 COMMON AREA INTERIOR FINISHES ............................................................ 29 5.10 SITE AMENITIES ............................................................................................... 30

6.0 NON-ASTM SCOPE CONSIDERATIONS ..................................................................... 32 6.1 DISABLED PERSON ACCESSIBILITY ASSESSMENT ..................................... 32 6.2 LIMITED MOLD ASSESSMENT ........................................................................ 33

APPENDICES Appendix A – Needs Over-the-Term Spreadsheet Appendix B – Photographs Appendix C – Documentation

Project Number: 07121679-01 Inn at the Convention Center

January 31, 2018 Page 1 of 34


1.0 SUMMARY

Project Summary

Property Name Inn at the Convention Center

Current Use of Property Type Hotel

Property Address 420 NE Holladay Street

City, County, State, ZIP Code Portland, Multnomah, Oregon 97232

Client Name Prosper Portland

Contract ID, Date PSI Proposal No. 0712-231396, dated December 20, 2017, authorized January 2, 2018

Area of Site (acres) 0.41 acres* Per Multnomah County Assessor

Number of Buildings / Units One Building / 97 Units

Gross Area of Buildings (Square Feet - SF) 49,379 SF* Per Multnomah County Assessor

Number of Stories Five stories

Subgrade Spaces? Yes

First Developed for Current Use 1969* Per Multnomah County Assessor

Additional Phases 1980

Significant Renovations N/A

Applicable Building Codes (Original Construction)

Not provided

Applicable Building Codes (Current Construction)

2012 International Building Code

Outstanding Code Violations Pending information

Zone CX – Central Commercial

Flood Zone Zone X (Unshaded)

Analysis Term 10 years

Inflation Factor 3.0%

Immediate Needs ($) $76,575

Needs over the Term, Uninflated ($) $372,724

Needs over the Term, Inflated ($) $394,471

Needs over the Term, Uninflated ($/SF/year)

$0.75

Needs over the Term, Inflated ($/SF/year)

$0.80




1.1 OPINION OF COSTS

The following is a summary of the Recommended Immediate Needs and Recommended Physical Needs Over-the-Term identified for this property: Recommended Immediate Needs:

• Allowance for engineer to review of concrete spalling.

• Replace Zinsco switchgear, panel boards, and circuit breakers.

• Allowance to reconfigure public restrooms.

• Allowance to renovate handicap accessible guestroom to include roll-in-shower.

• Add two accessible parking spaces.

• Install “Van Accessible” signage.

• Striping the exterior ADA paths to travel. Recommended Physical Needs Over-the-Term:

• Seal coat and re-stripe asphalt pavement. (Years 1 and 6)

• Restripe lower level concrete pavement. (Years 1 and 6)

• Clean, prime, and repaint exterior walls (Years 3 and 10)

• Replace built-up roof. (Year 1)

• Allowance to repair roof ponding (Year 1)

• Replace PTAC units. (Years 1 through 10)

• Replace pad mounted HVAC unit. (Year 1)

• Replace hot water storage tank (Year 5)

• Perform modernization of the existing elevator systems. (Year 1)

• Allowance to evaluate and start up kitchen equipment as needed (Year 1)

• Replace commercial dryer. (Year 1)

• Resurface spa and replace spa equipment (Year 1)




2.0 USE AND QUALIFICATIONS

This report was prepared pursuant to the contract PSI has with Prosper Portland.

2.1 RELIANCE AND USE BY OTHER PARTIES

This report was prepared pursuant to the contract PSI has with Prosper Portland. That contractual relationship included an exchange of information about the property that was unique and between PSI and its client and serves as the basis upon which this report was prepared. Because of the importance of the communication between PSI and its client, reliance or any use of this report by anyone other than Prosper Portland, is prohibited and therefore not foreseeable to PSI.

Reliance or use by any such third party without explicit authorization in the report does not make said third party a third-party beneficiary to PSI's contract with Prosper Portland. Any such unauthorized reliance on or use of this report, including any of its information or conclusions, will be at the third party's risk. For the same reasons, no warranties or representations, expressed or implied in this report, are made to any such third party.

Third party reliance letters may be issued on request and upon payment of the, then current fee for such letters. All third parties relying on PSI’s reports, by such reliance, agree to be bound by the proposal and PSI’s General Conditions. No reliance by any party is permitted without such agreement, regardless of the content of the reliance letter itself.

2.2 USE BY OTHER PARTIES

There are no other third-party beneficiaries (intended or unintended) to this report, except as expressly stated herein.

Reliance or any use of this report by anyone other than those parties identified above, for which it was prepared, is prohibited and therefore not foreseeable to PSI. Reliance or use by any such third party without explicit authorization in the report does not make said third party a third-party beneficiary to PSI's contract with its Client.

Any unauthorized reliance on or use of this report, including any of the information or conclusions contained herein, will be at the third party's risk. For the same reasons, no warranties or representations, expressed or implied in this report, are made to any such third party.

2.3 STANDARD OF CARE AND WARRANTIES

PSI performed the Property Condition Assessment (PCA) using methods and procedures and practices generally conforming to ASTM E 2018-15, Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. The guide describes these methodologies as representing good commercial and customary practice for performing a PCA




of a parcel of property. Findings and conclusions derived from the methodologies described in the guide contain all of the limitations inherent in the methodologies that are referred to in ASTM 2018-15.

PSI warrants that the findings contained in this report have been prepared in general accordance with accepted professional practices at the time of report preparation as applied by similar professionals. Future changes in standards, practices, or regulations cannot be anticipated and have not been addressed.

The methodologies include reviewing information provided by other sources. PSI treats information obtained from the record reviews and interviews concerning the property as reliable and the ASTM guide does not require PSI to independently verify the information. Therefore, PSI cannot and does not warrant or guarantee that the information provided by these other sources is accurate or complete.

No other warranties are implied or expressed.

2.4 QUALIFICATIONS

Our services were not intended to be technically exhaustive. There is a possibility that even with proper application of methodologies, conditions may exist on the property that could not be identified within the scope of the assessment(s) or that were not reasonably identifiable from the available information.

Our services and report are not an instrument of professional architectural or engineering service, and PSI did not develop architectural or engineering findings, conclusions or recommendations, nor did PSI verify designs or design capacities. PSI's observations, opinion, and recommendations may have been developed under time and budgetary constraints inherent to ASTM 2018-15. Our observations do not warrant or guarantee neither the performance of any building components or systems nor adequacy of design.

In accordance with ASTM 2018-15, PSI’s report is based on a limited ground level (except where otherwise explicitly indicated) visual inspection of the property. PSI did not gain access to all areas, perform any exploratory probing or discovery, perform tests, operate any specific equipment or take measurements or samples. The PCA was not a building code, safety, regulatory or environmental compliance inspection.

No PCA can wholly eliminate uncertainty regarding repair and maintenance needs in connection with the property. The PCA was intended to reduce, but not eliminate uncertainty regarding such needs.

The observations and recommendations presented in this report are time dependent, and conditions will change. This report speaks only as of its date.




As directed by the client, PSI performed a limited assessment for the presence of visible mold. The assessment did not investigate other biological contaminants in or around any structure, and our service was not designed or intended to prevent or lower the risk of the occurrence of the amplification of the same. Client acknowledges that mold is ubiquitous to the environment with mold amplification occurring when building materials are impacted by moisture. Client further acknowledges that site conditions are outside of PSI's control, and that mold amplification will likely occur, or continue to occur, in the presence of moisture. As such, PSI cannot and shall not be held responsible for the occurrence or recurrence of mold amplification.

Please contact Ms. Deborah Priest at (425) 409-2504 with questions you have about this report.

Respectfully Submitted:

PROFESSIONAL SERVICE INDUSTRIES, INC.

Deborah Priest, P.E. Jason C. Barfield, RRO, CDT Field Observer PCR Reviewer Principal Consultant Report Date: January 31, 2018




3.0 CONTRACT AND PURPOSE OF SERVICES

3.1 CONTRACT

Contract Summary

Client Name Prosper Portland

Authorizing Person’s Name Ms. Amy Edwards

Authorizing Person’s Title Asset and Investment Manager

Contract Identification PSI Proposal No. 0712-231396, dated December 20, 2017

Contract Authorization Date January 2, 2018

3.2 PURPOSE OF SERVICES

PSI understands that Client’s purpose for having the PCA performed is to conduct a baseline survey of the general physical condition of the improvements located on the subject property.




4.0 SCOPE, METHODOLOGY, & RESOURCES

4.1 SCOPE OF SERVICES

4.1.1 PROPERTY CONDITION ASSESSMENT

PSI performed a Property Condition Assessment of the subject property that generally conforms to the scope and limitations of ASTM Guide E 2018-15. The assessment was also intended to satisfy Client's requirements, described in its undated guidance document for Engineering Reports.

The assessment included a walk-though survey, records review, and interviews. Our services did not include sampling or testing of any kind.

4.1.2 NON-ASTM SCOPE CONSIDERATIONS

Under the same limitations and qualifications as the ASTM E 2018-15 scope, PSI assessed other conditions that are beyond the consideration of ASTM E 2018-15. They are summarized below:

• ADA Provisions

• Limited Mold Assessment

4.2 METHODOLOGY

4.2.1 PROPERTY CONDITION ASSESSMENT

The Property Condition Assessment includes:

• Conducting a walk-through survey of readily accessible portions of the property

• Observing conspicuous conditions

• Researching readily available information relating to the property

• Recommending reasonable remedies.

• Developing Opinions of Costs associated with the remedies.

WALK-THROUGH SURVEY

Ms. Deborah Priest, a PSI employee from our Lynnwood, Washington office, conducted the walk-through survey on January 11, 2018. Mr. Mark Brennan of Inn at the Convention Center escorted




PSI during the interior and exterior walkthrough of the property. We were also accompanied by Ms. Shelly Haack of Prosper Portland and Ms. Karen Johnson of Pinnacle Advisory Group.

The walk-through survey consisted of observing obvious, easily visible items from the periphery of the property and from accessible adjacent public thoroughfares, as well as representative portions of the property's interior and building systems. These items were conspicuous, patent, and which may be observed without intrusion, removal of materials, exploratory probing, use of special protective clothing, or use of special equipment.

Visual reconnaissance of adjoining properties was limited to areas and facilities that were readily observable from the subject property or from public access areas. Photographs were taken to document the features observed, where possible.

RESEARCH

PSI reviewed pertinent portions of practically reviewable documents. In addition, the PCA normally includes interviews with persons knowledgeable about the site. The sources of information that PSI reviewed are listed in the subsequent sections of this report.

ESTIMATION OF CONDITION

PSI used its experience and judgment to evaluate items observed and to assign condition assessment to them. The condition descriptions used in this report are described below:

• Good: Component or system is in working condition and does not require immediate or short term repairs or replacement. Items in good condition may show signs of normal wear and tear, commensurate with its age.

• Fair: Component or system is in working condition but may require immediate or short term repairs or replacement. Items in fair condition may exhibit deferred maintenance, evidence of previous repairs, workmanship not in compliance with commonly accepted standards, is obsolete, or is approaching the end of its typical expected useful life. Repair or replacement is required to prevent further deterioration, restore it to good condition, prevent premature failure, or to prolong its remaining useful life. Component or system exhibits an inherent deficiency of which the cost to remedy is not commensurate with the deficiency but that is best remedied by a program of increased preventive maintenance or periodic repairs.

• Poor: Component or system is not in working condition or requires immediate or short term repairs or replacement. Items in poor condition have either failed or cannot be relied upon to continue performing its original function as a result of having realized or exceeded its typical expected useful life, excessive deferred maintenance, a state of




disrepair, and inherent design deficiency or workmanship. Present condition could contribute or cause the deterioration of contiguous elements or systems.

It should be noted that a condition term applied overall to a system does not preclude that a part, section, or component of the system may differ in condition. The items will also be affected by circumstances that occur after the date of the walk-through survey.

ESTIMATION OF AGE

PSI used information gathered about the property to estimate the Expected Useful Life (EUL) and Remaining Useful Life (RUL) of items observed. The use of these terms in this report is described below:

• Expected Useful Life (EUL): an estimate of the average amount of time, in years, that an item, component of system may function when installed new, assuming routine maintenance is practiced.

• Remaining Useful Life (RUL): a subjective estimate of the number of remaining years that an item, component or system is able to function in accordance with its intended purpose before warranting replacement, based upon observation or average estimates of similar items, components, or systems or a combination thereof.

ESTIMATION OF QUANTITIES

PSI used the information gathered to estimate quantities of items or materials exhibiting similar conditions or characteristics. These estimates are not exact and were used only to approximate the magnitude of the representative conditions.

RECOMMENDED REMEDIES

PSI used information and the estimated age to develop a list of recommended remedies or Physical Needs for the property. PSI segregated the needs into two categories:

• Immediate Needs: Items that require immediate action as a result of any of the following:

Material existing or potential unsafe conditions

Material building or fire code violations

Conditions that if left un-remedied have the potential to result in or contribute to critical element of system failure within one year or will most probably result in a significant escalation of its remedial cost.




• Physical Needs Over-the-Term: Items requiring repair and replacement which are beyond the scope of regular maintenance, but which are considered necessary to maintain the overall condition of the property.

OPINIONS OF COST

PSI developed Opinions of Cost for the recommended remedies. PSI developed the costs using a combination of sources, typically including one or more of the following:

• Commercially available published cost information:

Means Repair and Remodeling Cost Data

Means Facilities Maintenance and Repair Cost Data

• Site-Specific historical experience costs

• User provided unit costs

• PSI’s experience, databases or files

• Third party cost information from contractors, vendors, or suppliers

The costs assume repair and replacements to be “like-kind” with those existing and do not anticipate an upgrade or improvement of existing conditions.

The Opinions of Cost are preliminary budgets for the need or remedy. The actual cost of recommended repairs will likely vary based on such factors as the amount of or work competed at one time, the quality of material used, the quality of workmanship as well as amount of work which may be accomplished by qualified and capable in house maintenance staff.

Note that our assessment does not identify minor, inexpensive repairs or maintenance items that are clearly part of the property owner’s current operating budget so long as these items appear to be taken care of on a regular basis. The assessment does include infrequently occurring maintenance items, such as exterior paint, deferred maintenance repairs and replacements that normally involve significant expense or outside contracting.

Our Opinions of Cost are presented on the Needs Over-the-Term spreadsheet that is appended to this report.

4.2.2 NON-ASTM SCOPE ASSESSMENTS

Additional assessment services are described in Section 6.




4.3 RESOURCES

Information sources are listed or referenced in subsequent sections of the report. Our interpretation of that information is discussed in the appropriate sections of this report. Selected excerpts of the information obtained are appended.

4.3.1 BASIC PROPERTY INFORMATION

Ms. Shelly Haack, our client, provided information regarding the size, age, and location of the subject property and instructions regarding access to the site. Additional information regarding the size, age and location of the subject property were obtained from the Contra Costa County Property Appraiser or from readily available mapping sources. Overall property information was also provided by the client.

4.3.2 PROVIDED INFORMATION

PSI requested that the building owner provide information regarding the property, including:

Provided Information Summary

Resource

Provided/Sent to PSI

Obtained during Walk-Through

Comments

Record Construction Drawings Block Survey Plans provided by Ms. Shelly Haack

Maintenance Logs Not provided

Certificate of Occupancy Not provided

Prior Property Condition Report Not provided

Building, Fire, Life Safety, Zoning Violations

Pending information

Safety inspection records Fire extinguisher inspection tags were observed during our walk-through.

Appraisal Not provided

Warranty Information: Roof Not provided

Warrant Information: Boiler, chillers, cooling towers, etc.

Boiler Warranty provided by Mr. Mark Brennan

Planned Capital Expenditures PCA Pre Survey Questionnaire

Property specific historical repair and replacement cost information

PCA Pre Survey Questionnaire




Provided Information Summary

Resource

Provided/Sent to PSI

Obtained during Walk-Through

Comments

Pending proposals or contracts for material repairs/replacements

PCA Pre Survey Questionnaire

ADA accessibility survey Not provided

Building rent roll, occupancy percentage, and turnover ratio

Not provided

Property Pre-survey Questionnaire Provided by Mr. Mark Brennan

Offering Memorandum Not provided

Information reported to PSI is incorporated into and discussed in appropriate sections of the report.

4.3.3 INTERVIEWS

PSI interviewed the parties tabulated as follows:

Interviews Summary

Name Title/Function Affiliation

Mr. Mark Brennan Hotel Manager Inn at the Convention Center

Ms. Shelly Haack Business Opportunity Officer Prosper Portland

Ms. Karen Johnson Pinnacle Advisory Group

4.3.4 PRIOR REPORTS

PSI was not provided with prior property condition reports on the subject property.

4.3.5 OTHER RESOURCES

Other resources and information accessed for purposes of this site assessment are discussed in corresponding sections of the report. Published sources used to complete this PCA but not previously listed are cited at the point they are referenced.

4.4 ACTIVITY EXCLUSIONS

ASTM E 2018-15 sets forth limitations in the assessment process. A list of items that are expressly excluded from this assessment are summarized below.




• Capital Improvements intended to upgrade the property

• Items beyond the limit of the term

• Opening/moving panels, probing, intrusive investigation

• Determining pressure or flow rate, pipe sizes or point of discharge for underground drains

• Determining NFPA hazards or fire ratings

• Preparing Engineering calculations

• Taking measurements

• Pests, rodents and insects

• Subterranean conditions

• Entering areas that pose a threat to health and safety

• Performing physical assessments that may damage the building

• Providing opinion on the working order of systems or components that are abandoned or shut down. Physical condition is still required.

• Sound transmission

• Flammability

• Security

• Items that are operated by timers or are operated manually by operation staff or service companies, including irrigation sprinklers and lighting

• Environmental

• Items requiring specialized knowledge (flues, chimneys, boiler stacks, electromagnetic fields, elevator and escalator cables, sheaves, tenant owned or maintained equipment)

• Process related equipment or entering plenums or confined spaces, testing of equipment or air flow

• Observation of insides of flues, chimneys, or boiler stacks, tenant owned or maintained equipment, entering or confined space areas

4.5 ASSESSMENT LIMITATIONS

ASTM E 2018-15 sets forth limitations in the assessment process. Limitations to the accuracy and completeness of this report are tabulated as follows:

Assessment Limitations Summary

Encountered?

Yes No

Access Limitations

Physical Obstructions to Observations

Outstanding Information Requests

Deviation from the ASTM 2018-08 Guide

Other




• Access Limitations - PSI observed approximately 10 percent of the guestrooms. PSI observed Rooms 215 (ADA), 222, 312, 326, 405, 415, 501, 509, 515, 522, and 526.

• Physical Obstructions to Observations - Many interior office spaces had gypsum wall board and racking in the warehouse areas, which limited the observation of the floor and walls.

• Outstanding Information Request – PSI contacted Multnomah County Fire Department and City of Portland Building Department regarding compliance to fire and building codes. No response was received as of the report date. The client will be notified should any code violations is reported.

• Deviations from the Guide - ASTM E2018-15 requires that any deviations from the Guide be so stated within the report. PSI’s probable cost threshold limitation is reduced from the Guide’s $3,000 to $1,000, thus allowing for a more comprehensive assessment on smaller scale properties. Therefore, PSI’s opinions of probable costs that are individually less than a threshold amount of $1,000 are typically omitted from this report. However, comments and estimated costs regarding identified deficiencies relating to life, safety or accessibility items are included regardless of this cost threshold.

4.6 SIGNIFICANT ASSUMPTIONS

PSI made the following assumptions in developing our findings and conclusions:

• Extrapolation - PSI extrapolated observations and findings actually made to all typical areas or systems of the subject property for the purposes of describing such condition within the report and preparing opinions of probable costs for suggested remedies.

• Regulatory Information - PSI considers all other information obtained from regulatory or enforcement agencies, such as building departments, to be complete, accurate and current.

• Provided Information - PSI considers all information provided through interviews, reports or other means to be complete and unbiased.

• Like-Kind Remedies - None.

• Other – None.




5.0 SITE DESCRIPTION AND CONDITION

5.1 GENERAL DESCRIPTION

Project Summary

Property Name Inn at the Convention Center

Current Use of Property Type Hotel

Property Address 420 NE Holladay Street

City, County, State, ZIP Code Portland, Multnomah, Oregon 97232

Area of Site (acres) 0.41 acres* Per Multnomah County Assessor

Number of Buildings /Units One Building

Gross Area of Buildings (SF) 49,379 SF* Per Multnomah County Assessor

Number of Stories Five Stories

Subgrade Spaces? Yes

First Developed for Current Use 1969* Per Multnomah County Assessor

Additional Phases 1980

Significant Renovations N/A

Current Adjoining Uses (General) Hotel

The subject property is referred to as the Inn at the Convention Center, located at 420 NE Holladay Street in Portland, Oregon. The property is located on the southwest side of NE Holladay Street, between NE Martin Luther King Jr. Boulevard and NE Grand Avenue. Currently, the subject property is developed with a one five-story hotel with one level of partially below grade parking. The building includes 97 guestrooms, a shuttered spa and a shuttered restaurant. The remainder of the property is developed with asphalt parking areas, drive lanes, and landscape areas. The property was first developed in 1969 with an addition to the lobby reportedly constructed in 1980. At the time of our site visit, the building was occupied. The following conditions were observed during our site visit performed on January 11, 2018.

5.2 SITE IMPROVEMENTS

5.2.1.1 TOPOGRAPHY/LANDSCAPING/SITE ACCESS/SIGNAGE

The subject property is comprised of one parcel of land, totaling 0.41 acres. The property , is bordered on all sides by commercial properties. The topography of the site is generally flat. The adjacent streets, NE Martin Luther King Jr. Boulevard and NE Grand Ave, slope from northwest to southeast.




Landscape vegetation consisting of shrubs, and bushes and is located around the perimeters of the building.

Site access is provided by three uncontrolled entrances one located on the southeast side, providing access to and from NE Martin Luther King Jr. Boulevard, one located on the northeast side providing access to and from NE Holladay Street and one on the northwest side providing access to and from NE Grand Avenue.

Site signage for the property consists of a pylon signage located along NE Martin Luther King Jr Boulevard. The sign is constructed of a metal column and metal framed sign with illuminated plastic displays. In addition, the building has a metal framed wall mounted sign with illuminated plastic displays.

According to FEMA Flood Insurance Rate Map (FIRM), Map Number 41018030093E, dated October 19, 2004, the subject property is located in Zone X (Unshaded) – An area that is determined to be outside the 100- and 500-year floodplains.

Observation/Comments:

Site topography, access, landscaping, signage, and boundaries, were observed to be in generally good condition at the time of our site visit. No deficiencies were reported or observed at the time of our site visit.

Recommendations:

No Recommended Immediate Needs or Recommended Physical Needs Over-the-Term were observed or reported at the time of our walk-through.

5.2.2 STORM WATER DRAINAGE

The parking lot and drive lanes are graded to drain storm water via sheet flow towards adjacent public streets and catch basins. The catch basins are reportedly connected to the underground municipal storm water drainage system. Storm water collected by the roofing systems is drained through roof drains that discharge directly to the underground municipal storm water drainage system.


Site drainage was observed to be in generally good condition at the time of the site visit. The paving and drainage to the basins appear to be adequately sloped to provide sufficient drainage. No deficiencies were observed or reported at the time of our site visit.




Recommendations:


5.2.3 CONCRETE SITE FEATURES

Cast-in-place concrete sidewalks, wheel stops and curbs were observed on the property. Concrete pads support pad-mounted HVAC equipment.


The concrete site features are in generally good to fair condition at the time of our site visit. No deficiencies were observed or reported. Recommendations:


5.2.4 RETAINING WALLS/FENCING/STAIRS/RAILING/BOLLARDS

Concrete filled metal bollards are located throughout the property used to protect columns, corners of the building and equipment. A metal fence surrounds the property along NE Holladay street and NE Grand Ave at the lower parking level.

There is an approximately 4-foot concrete masonry unit (CMU) retaining wall along NE Holladay Street at the lower parking level. Concrete stairs with metal hand rails were observed from the lower parking level to lobby on the first level.

Observations/Comments:

The retaining wall, fence, stairs, and bollards are in generally good to fair condition at the time of our site visit. PSI observed an area of missing vertical metal pickets in the fence that will require repair. Due to the minimal costs, this is considered routine maintenance no cost has been included in the Needs-Over-Time spread sheet. No other deficiencies were reported or observed during our site visit.

Recommendations:





5.2.5 PAVEMENT

Pavement on site consists of concrete for the lower parking lot and concrete with an asphalt topping in the upper parking lots and driving lanes. There are approximately 2,000 square yards (SY) concrete pavement and 2,000 square yards of concrete with asphalt topping pavement provided on site. Observation/Comments:

The asphalt pavement appeared to be in generally good condition at the time of our site visit.

Seal coating and striping for asphalt pavement is in good to fair condition. The asphalt was reportedly last sealed in 2005. PSI recommends seal coating and re-striping the asphalt pavement every five years during the term.

Recommendations:

No Recommended Immediate Needs or were observed or reported at the time of our walk-through

Recommended Physical Needs Over-the-Term:

• Seal coat and re-stripe asphalt topping pavement. (Years 1 and 6)

• Restripe lower level concrete pavement. (Years 1 and 6)

5.2.6 PARKING

PSI counted 63 parking spaces along the perimeter of the property and basement level. One of the existing parking spaces is designated as handicap accessible. There is no “Van Accessible” parking space at the site. The parking areas and driving lanes are illuminated by pole-mounted and building-mounted high intensity discharge (HID) lighting fixtures.


Parking generally appears adequate for the site’s current use. As discussed in section 5.2.5 of this report, parking space striping is in good to fair condition at the time of our site visit. PSI recommends re-striping every five years starting in year one of the term. Cost to re-stripe the pavement is included in section 5.2.5 of this report. The current parking configuration includes a handicap accessible parking space, which is discussed further in section 6.1.2 of this report.




Recommendations:


5.3 STRUCTURE, FOUNDATION, & EXTERIOR WALLS

5.3.1 SUBSTRUCTURE

No construction drawings were available for review. Based on our experience with similar structures in the general area, the foundation systems likely consist of shallow reinforced concrete strip and spread footings at perimeter wall and column locations, respectively. Floor slab in the lower level parking is likely reinforced cast-in-place concrete slabs-on-grade.


The substructure is considered a concealed condition. However, based on our review of observable components (columns, walls, and floors throughout the buildings), the substructures appear to be in relatively good condition at the time of our site visit. No deficiencies were observed or reported at the time of our site visit.

Recommendations:

No Recommended Immediate Needs or Recommended Physical Needs Over-the-Term were reported or observed at the time of our walk-through.

5.3.2 STRUCTURE

Based on observation of exposed structure, the hotel building’s structure generally consists of cast-in-place reinforced concrete columns supporting a cast-in-place reinforced concrete slab at the basement level and first story above grade. The remaining stories appear to be constructed of wood framing. The roof structure is likely wood trusses with wood sheathing. Observations/Comments:

The structures appear to be in generally good condition at the time of our site visit. PSI observed localized areas of minor concrete spalling on the ceiling in the basement. Mr. Brennan reported that the spalling occurred during a recent winter storm were the rain water leaked through the concrete slab and froze caused the concrete to spall. The concrete spalling has exposed the reinforcing steel in the concrete. PSI has included an allowance for an engineer to review this condition. No deficiencies were observed or reported at the time of our site visit.




Recommendations:

Recommended Immediate Needs:

• Allowance for engineer review of concrete spalling

No Recommended Physical Needs Over-the-Term were reported or observed at the time of our walk-through.

5.3.3 EXTERIOR WALLS

The exterior wall finishes are a combination of painted concrete, painted CMU, and painted stucco. Elastomeric sealants are located within expansion joints at building joints, and around window, and doors.


The exterior wall systems for the buildings appeared to be in generally good to fair condition. The exterior paint and stucco appeared to be in good to fair condition. It was reported that the building was last painted in 2014. PSI recommends that the exterior walls be properly cleaned, primed and re-sealed and/or re-painted every seven years during the term during the term. PSI also observed an area of the stucco that had delaminated from the wall. This was observed on the wall surrounding the mechanical equipment. PSI recommends repairing this section of stucco immediately. Due to the minimal cost, this works is considered routine maintenance.

Recommendations:

No Recommended Immediate Needs:


• Clean, prime, and repaint exterior walls (Years 3 and 10)

5.3.4 DOORS/WINDOWS

The main entrance doors consist of aluminum framed swing-type doors with single-pane glazing. The secondary doors are hollow metal doors in metal door frames. Guestroom doors are solid core wood doors in metal frame. Windows are fixed units with single-pane glazing in aluminum frames. Guestroom windows are floor to ceiling single pane with a sliding glass door. Interior doors consist of solid core wood doors in wood frames. The restaurant has fixed storefront window with single-pane glazing.





The windows and doors were observed to be in good to fair condition. Mr. Brennan reported that the guestroom windows can leak during heavy rainfall if the sliding door is not properly closed. As this is a maintenance issue not cost will be included in the needs over time spread sheet. PSI observed a broken window at the lobby offices. PSI recommends replacing this window as an immediate need. Due to the minimal cost, these works are considered routine maintenance. No other deficiencies were reported or observed during our site visit.

Recommendations:

No Recommended Immediate Needs or Recommended Physical Needs Over-the-Term were reported or observed at the time of our walk-through.

5.3.5 INTERIOR STAIRS

There are two sets of interior stairs in the building. The stairwell consists of painted metal framing with concrete treads and metal handrails.


The interior stairs appear to be in generally good condition. No deficiencies were reported or observed during our site visit.

Recommendations:


5.4 ROOF

5.4.1 ROOF TYPE

The roof systems atop the building consist of a Built-up Roof (BUR) system. The BUR roof system is supported by wood roof decking and a wood framing system.

It was reported that there was no current roof warranty information.


The BUR roof system atop the building was observed to be in fair to poor condition at the time of the site visit. PSI observed the roof during an active rainfall and noted significant areas of ponding. Mr. Brennan also reported active roof leaks at the property but no leaks were observed by PSI at the time of our visit. PSI also observed areas of roof patches.




Based on the 20 year EUL for a BUR roof systems and observed conditions, PSI recommends that the roofing systems be replaced early in the term.

Recommendations:

No Recommended Immediate Needs or were observed or reported at the time of our walk-through:


• Replace built-up roof. (Year 1)

5.4.2 ROOF DRAINAGE

Storm water roof drainage of the building is provided by interior roof drains. The roof drains discharge into the underground municipal storm water drainage system via cast iron piping.


The roof drainage was observed to be in poor condition at the time of our walk through. PSI observed the roof during an active rainfall and observed significant area of roof ponding. PSI recommends repairing the ponding area at the time of roof replacement. PSI also observed one missing roof drain strainer. PSI recommends replacing the missing strainer immediately. Due to the minimal cost of the drain strainer, this work is considered routine maintenance.

Recommendations:

No Recommended Immediate Needs were reported or observed at the time of our walk-through.


• Allowance to repair roof ponding (Year 1)

5.4.3 ROOF ACCESSORIES

Roof accessories including plumbing vents, exhaust vents, exhaust fans, and pipe penetrations were observed atop the roof.


The roof accessories were observed to be in generally good to fair condition at the time of our walk through. No deficiencies were reported or observed during our site visit.




Recommendations:


5.4.4 ROOF FLASHINGS

The base flashings on buildings consists of the same material as the field membrane that continue up the vertical surfaces of equipment curbs. The membrane terminates under flanges of equipment curbs or at termination bars. Lead boots are provided at roof penetrations on the BUR roof.


The roof flashings were observed to be in generally good condition at the time of our walk through. No deficiencies were reported or observed during our site visit.

Recommendations:


5.5 MECHANICAL, ELECTRICAL, & PLUMBING SYSTEMS

5.5.1 SPECIAL UTILITIES

PSI did not observe any special utilities at the subject property.

5.5.2 HVAC/MECHANICAL SYSTEMS

Conditioned air in the guestrooms is generally packaged terminal air-conditioning (PTAC) units. The units were observed to be manufactured by Amana, each with cooling capacity of approximately 3/4– to 1-ton. A gas-fired pad mounted packaged HVAC unit provides cooling and heating to the restaurant. The pad mounted unit was observed to be manufactured by Carrier and have capacity of 4 tons. Each bathroom in the guestrooms is equipped with a ventilation fan. Observation/Comments:

The HVAC systems range from good condition to fair to poor condition. PTAC units appear to be of various vintages and are reportedly functioning properly. Mr. Brennan reported that the property has replaced approximately 25 units within the last three years and anticipates replacing the remaining units on an as needed basis. PSI recommends budgeting to replace the remainder of the PTAC units per during the term.




The age of the pad mounted unit is unknown. Based on observation, it is in fair to poor condition, PSI anticipates replacement early in the term.

Recommendations:

No Recommended Immediate Needs or were observed or reported at the time of our walk-through.


• Replace PTAC units. (Years 1 through 10)

• Replace pad mounted HVAC unit. (Year 1)

5.5.3 ELECTRICAL SYSTEM

Portland General Electricity reportedly provides the electrical service for the property. The electricity is provided from pad-mounted transformers located in the basement. The main electrical service includes 1,000-amp with 208/120-volt, 3-phase, 4-wire service.

No back-up emergency electrical generators were observed onsite during our site visit.

PSI was informed that the electrical wiring in the branch circuits is copper throughout the building. Lighting throughout the building is a combination of fluorescent and incandescent fixtures. Site lighting consists of building-mounted HID fixtures and pole-mounted HID fixtures.


The electrical system was observed to be in generally fair condition. The electrical system observed at the site which included switchgear, panel boards, and circuit breaker were manufactured by Zinsco. Zinsco panels are known to present numerous problems and even hazards if and when they fail. Zinsco circuit breakers could fail to trip in response to an overcurrent or short circuit and create a possible hazardous situation. Zinsco is considered obsolete and out of date and it is PSI recommendation that all Zinsco electrical equipment be replaced. Site lighting was observed and appears in good to fair condition and reported to be functional, however, was not observed during night time conditions.

Recommendations:


• Replace Zinsco switchgear, panel boards, and circuit breakers




No Recommended Physical Needs Over-the-Term were observed or reported at the time of our walk-through.

5.5.4 PLUMBING SYSTEMS

Water and sanitary sewer is likely provided the City Portland. Supply piping and waste piping are reportedly copper and cast iron, respectively. The plumbing fixtures for restrooms are of typical commercial grade vitreous porcelain with associated hardware. Majority of hardware is metal.


The plumbing systems appear to be in generally good condition at the time of our walk through. Mr. Brennan reported that the recirculation piping can get pin holes in the pipes and they patch as need. Due to the minimal cost, these patching is considered routine maintenance. No other deficiencies were observed or reported at the time of our site visit.

Recommendations:


5.5.5 DOMESTIC WATER HEATERS

A gas-fired boiler provides hot water to the hotel building. The boiler has a 750,000 BTU/Hr input capacity and was reportedly replaced in 2007. A 200-gallon hot water storage tank manufactured by A.O. Smith is utilized in conjunction with the boiler. The tank was manufactured in 2000.


The boiler and hot water storage tank were observed to be in good condition at the time of our site visit. Mr. Brennan reported that the boiler had replaced in 2007. PSI observed inspection tags on the boiler that are dated December 15, 2017.

The boiler and hot water storage tank have EUL of 20 and 15 years, respectively. Based on the age and observed condition, replacement of the hot water storage tank is anticipated during the term.

Recommendations:

No Recommended Immediate Needs or were observed or reported at the time of our walk-through.





• Replace hot water storage tank (Year 5)

5.6 VERTICAL TRANSPORTATION SYSTEMS

The building has two hydraulic passenger elevator systems manufactured by Westinghouse. Each elevator has a capacity of 2,500 pounds.


The elevators at the site appear to be in generally good condition. The elevators are reportedly serviced and maintained by Portland Elevator Company. The EUL for an elevator of this type is 50-years with modernization generally needed approximately every 20-years. Based on the age and observed condition, PSI anticipates that the elevator system will need to be modernized during the term.

Recommendations:

No Recommended Immediate Needs were observed or reported at the time of our walk-through. Recommended Physical Needs Over-the-Term:

• Perform modernization of the existing elevator systems. (Year 1)

5.7 FIRE, LIFE SAFETY, & SECURITY SYSTEMS

5.7.1 FIRE SUPPRESSION SYSTEMS

An automatic wet-type fire suppression (sprinkler) system was provided for the lower parking area, guest laundry, and commercial laundry. The system includes an 8-inch main and an 8-inch riser. The dry system was provided for the hose system in the hallways.

An above range chemical fire suppression system was located in the kitchen area of the shuttered restaurant. The chemical tank was mounted inside the hood above the grill. Fire hoses are located within wall-mounted cabinets throughout hallway corridors. The buildings utilize smoke detectors and fire extinguishers. A Fire hydrant is located along the property line on NE Martin Luther King Jr. Boulevard.

Please note that the Consumer Product Safety Commission in conjunction with Central Sprinkler Systems as well as other manufacturers have issued several “Voluntary Recalls” of sprinkler heads. The information in regards to the identification of the particular heads being recalled was not available to PSI at the time of this site visit. PSI has not determined whether the particular sprinkler heads involved in this recall are located in the subject facility, but does recommend further investigation by the building owner. Information in regards to the specifics




about the Central Sprinkler Systems recall can be reviewed at the web site www.sprinklerreplacement.com or perform a search for sprinkler system recalls. This information should be reviewed in conjunction with the owner’s specifications and warranty information.


An inquiry was sent to the local fire department regarding outstanding fire code violations at the property. PSI has not received a response. Should PSI receive information of adverse condition, the Client will be immediately notified.

The fire suppression system appeared to be in generally good condition at the time of the site visit. The spare sprinkler head manufacturer was determined to be Rasco. The sprinkler system was inspected by Basic Fire Protection, Inc. in September of 2017.

Fire extinguishers observed included inspection tags that indicated they were inspected by Basic Fire Protection, Inc. in September 2017. PSI recommends maintaining updated inspection of the fire extinguishers. No other deficiencies were observed or reported at the time of our site visit.

Recommendations:

No Recommended Immediate Needs or Recommended Physical Needs Over-the-Term were observed or reported at the time of our walk-through:

5.7.2 LIFE SAFETY SYSTEMS

Illuminated exit signs, emergency lights, smoke detectors, pull stations, and audible/visual alarms were observed within the leasing office and clubhouse. A fire alarm control panel (FACP) monitors the pull stations, and monitors the flow switches. The FACP was reportedly installed in 2016.


The life safety systems observed appeared to be in good condition at the time of the site visit. No deficiencies were observed or reported at the time of our site visit.

Recommendations:





5.8 HOTEL INTERIOR FINISHES

5.8.1 FLOORING/WALL COVERINGS

Hotel room floors are generally covered with carpet with ceramic flooring in the bathrooms. Walls and ceilings are painted smooth-surfaced and textured gypsum board or wall papered. Bathroom walls are finished with ceramic tiles and vinyl wall covering.


PSI observed approximately 10 percent of the guestrooms. PSI observed Rooms 215 (ADA), 222, 312, 326, 405, 415, 501, 509, 515, 522, and 526. Hotel room interiors were observed to be in good to fair condition at the time of our site visit. Management reported one down suite at the time of our site visit. Reportedly, interior finishes are being updated on a continuous basis which included replacing carpeting, and painting interior walls and ceilings. Based on the EUL of carpet (7 years), vinyl wall covering (15 years), painted interior walls and ceilings (8 years), our observation, and reported information, PSI anticipates cycled replacement of carpet and vinyl wall covering throughout the term. Re-painting of walls and ceilings should be performed on as-needed basis and part of routine maintenance. Furniture, Fixtures and Equipment (FF&E) are not included in this assessment.

Recommendations:


5.8.2 CABINETRY

Bathroom vanities are constructed of painted wood.


Bathroom vanities appear to be in generally good condition at the time of our site visit. No deficiencies were reported or observed at the time of our site visit. PSI recommends refurbishing the cabinetry during the term on as-needed basis.

Recommendations:


5.8.3 COUNTER TOPS/SINKS

Countertops in the bathrooms consist of Formica with porcelain sinks.





The countertops, sinks and fixtures range from good to fair condition at the time of our site visit. No deficiencies were reported or observed at the time of our site visit.

Recommendations:


5.8.4 APPLIANCES

Each guestroom is equipped with a microwave oven, a mini refrigerator, and a coffee maker. The appliances were manufactured by various manufacturers but mostly Magic Chief.


The appliances appear to range from good to fair condition at the time of our site visit. Management reported that appliances are replaced on an as needed basis.

The EULs for the appliances is as follows: refrigerators (15 years), coffee maker (10 years), and microwave ovens (10 years). Based on their EULs and the observed conditions, cycled replacement of refrigerators, coffee makers, and microwave ovens is anticipated during the term. Replacement of FF&E is excluded from the scope of this report; therefore, no cost is included in the Recommended Physical Needs Over-the-Term spreadsheet.

Recommendations:


5.9 COMMON AREA INTERIOR FINISHES

Interior common areas of the hotel building consist of interior of the check-in lobby, shuttered restaurant, and associated restroom. The common area ceiling finishes generally consist of painted gypsum board, or acoustical tile. Walls in common areas are finished with vinyl wall covering. Floors are finished with carpet and ceramic tiles.

The shuttered restaurant had a commercial kitchen. Items included ovens, ranges, grill, walk-in-cooler, walk-in-freezers, kettles and fryers.





Common area interior finishes appear range from good to fair condition. No deficiencies were reported or observed at the time of our site visit. At the time of our site visit the restaurant was closed. Mr. Brennan requested an allowance for the kitchen appliances to reopen the restaurant. PSI has provided an allowance to evaluated and start up equipment.

Recommendations:

No Recommended Immediate Needs were observed or reported at the time of our walk-through.


• Allowance to evaluate and start up kitchen equipment as needed (Year 1)

5.10 SITE AMENITIES

5.10.1 LAUNDRY ROOM

Amenities at the property consist of a guest laundry room and a hotel commercial laundry room.

The guest laundry room utilizes a coin operated residential washer and dryer.

The hotel laundry room used by housekeeping staff includes two 60-lb washers and two 75-lb gas-fired dryers, all of which were manufactured by Unimac.


The laundry equipment is in generally good to fair condition at the time of our site visit. The age of the laundry equipment unknown. Mr. Brennan reported that the guest coin operated washer and dryer were replaced in 2017 and commercial washers were replaced in 2017. The EUL of a commercial grade washer/dryer is approximately 25-years. Based on the age of laundry equipment, PSI recommends replacing one commercial dryer during the term.

Recommendations:



• Replace commercial dryer. (Year 1)




5.10.2 SPA

The property provides indoor spa. The spa has plastered interior and concrete coping and deck. Spa pool equipment, including filtration and chlorination equipment, are locked within an equipment room.


Mr. Brennan reported that the spa had been shuttered since 2003. The observed condition of the spa is poor condition. Mr. Brennan requested an allowance to bring the spa into working condition. PSI has provided an allowance to resurface the spa and replace the spa equipment.

Recommendations:



• Resurface spa and replace spa equipment (Year 1)




6.0 NON-ASTM SCOPE CONSIDERATIONS

6.1 DISABLED PERSON ACCESSIBILITY ASSESSMENT

6.1.1 BACKGROUND

The Americans with Disabilities Act, (ADA) is a Federal Law effective on January 26, 1992. The Department of Justice published revised regulations for the ADA in the Federal Register on September 15, 2010. Compliance with the 2010 ADA Standards for Accessible Design is required for new construction and alterations on or after March 15, 2012. As defined under Title III of the ADA, existing facilities considered to be “public accommodations” must take steps to remove architectural and communication barriers that are deemed “readily achievable” under the retroactive requirements.

6.1.2 SCOPE OF SERVICES

A limited, visual, basic accessibility survey of the “common areas” of the building was performed and the “Uniform Abbreviated Screening Checklist for the 2010 Americans with Disability Act” was completed. The completed checklist is attached to this report. No measurements of any type were taken. A comprehensive ADA survey was not performed. Any observed items of non-conformance were noted without regard as to whether or not they were “readily achievable”. Factors to be considered in determining whether an action is readily achievable include the nature and cost of the action, the number of employees at the subject property and the financial resources of ownership and tenants. The decision as to which actions are readily achievable is recommended to be determined by the building owner in consultation with its accountants, attorneys and design/ construction professionals. PSI recommends comprehensive ADA survey, which will include measurements, if more detailed or additional information or opinions are required.


PSI visually observed path of travel (travel surfaces, elevators, door widths and usability) at the subject facility, accessible parking requirements, accessibility of common spaces including access, reach requirements, and emergency egress requirements. The site was found to be generally accessible with most areas of the building being accessible via the elevators. Based on the total number of parking spaces for this site (63spaces), the site is required to have three handicap accessible parking spaces with one designated as “Van Accessible”. The site currently has one handicap accessible parking space, with an adjacent access aisle but no “Van Accessible” signage. PSI recommends adding two handicap accessible parking spaces and installing “Van Accessible” signage. The men’s and women’s public restrooms located off the lobby and for the spa, are generally not ADA accessible. The restroom entrances do not have adequate maneuvering clearances, stalls do not have adequate maneuvering clearances or grab bars, and lavatories do not have adequate maneuvering clearances. PSI recommend reconfiguring restrooms. The




passenger elevators are generally compliant with audible floor change indicator, visual and audible indicator of elevator arrival at lobbies, and Braille marking on elevator doorframes and control panel. In addition, PSI noticed lack of striping along exterior paths of travel. PSI recommends striping the exterior paths of travel.

One handicap accessible guestroom is provided at the property. The path of travel appeared to be adequate, there were braille marking installed at entrance door, and grab bars for the toilet and tub. Based on the total number of guestrooms, the site is required to have five total handicap accessible rooms with one room having a roll-in-shower. PSI recommends renovating handicap accessible room to include a roll-in-shower.

Future renovations or alterations may require ADA components to be installed for path of travel and public accessible areas within the building. Careful consideration should be given to the ADA requirements for all future renovation and/or alteration activities.

Additional information regarding ADA requirements and compliance as well as the most recent ADA guidelines can be found at www.ada.gov.

Recommendations:


• Allowance to reconfigure public restrooms

• Allowance to renovate handicap accessible guestroom to include roll-in-shower

• Add two accessible parking spaces

• Install “Van Accessible” signage

• Striping the exterior ADA paths to travel.

6.2 LIMITED MOLD ASSESSMENT

As part of the building walk-through general observations were made for evidence of water/moisture intrusion or damage, water staining or building material dampness, visible mold growth and evidence of noticeable musty/mildew odors.


Management did not report any current areas of known microbial growth or mold at the property. Musty or stale odors were not present during our observations.

The visual microbial growth and mold evaluation of this report found no areas of mold growth within the building areas.




Recommendations:


APPENDIX A

Needs Over-the-Terms Spreadsheet

RECOMMENDED NEEDS SPREADSHEET

PSI Proj. No.: 07121679-01 Property Age 49 Years

Prop. Name Inn at the Convention Center Building Area 49,379 Square Feet

Address: 420 NE Holladay Street Number of Buildings 1

City, State Portland, OR 97232 Reserve Term 10 Years

Walk-Thru: January 11, 2018 Total IMMEDIATE NEEDS 76,575 $

Reserve UNINFLATED 0.75 $/sf/Year

Reserve INFLATED 0.80 $/sf/Year

IDENTIFICATION

IMMED.

Item Rpt. Qty. Unit Unit RUL NEEDS 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total

No. Sec. Building Component Costs ($) Years Year 0 Year 01 Year 02 Year 03 Year 04 Year 05 Year 06 Year 07 Year 08 Year 09 Year 10 over Term

001 5.2.5 Seal coat and re-strip asphalt pavement 2000 SY $1.50 1 & 6 $3,000 $3,000 $6,000.00

Restripe lower level concrete pavement 40 EA $10.30 1 & 6 $412 $412

002 5.3.2 Allowance for engineer review of concrete spalling 1 LS $5,000.00 0 $5,000 $0.00

003 5.3.3 Clean, prime and re-paint exterior walls 21500 SF $1.50 3 & 10 $32,250 $32,250 $64,500.00

004 5.4.1 Replace BUR roof 11000 SF $10.00 1 $110,000 $110,000.00

005 5.4.2 Allowance to repair roof ponding 1 LS $5,000.00 1 $5,000 $5,000.00

006 5.5.2 Replace PTAC units 71 EA $900.00 1 thru 10 $7,200 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $6,300 $63,900.00

007 5.5.2 Replace pad mounted HVAC unit 4 TON $1,500.00 1 $6,000 $6,000.00

008 5.5.3Replacement of Zinsco switchgear, panel boards and circuit

breakers1 LS $19,500.00 0 $19,500 $0.00

009 5.5.5 Replace hot water storage tank 1 EA 1,500.00 5 $1,500 $1,500.00

010 5.6 Perform modernization of the existing elevator systems 1 LS 100,000.00 1 $100,000 $100,000.00

011 5.9Allowance to evaluate and start up kitchen equipment as

needed (Year 1)1 LS $15,000.00 1 $15,000 $15,000.00

012 5.10.1 Replace commercial dryer 1 EA $4,500.00 1 $4,500 $4,500.00

013 5.10.2 Resurface spa and replace spa equipment 1 LS $10,000.00 1 $10,000 $10,000.00

014 6.1.2 Allowance to reconfigure public restrooms 1 LS $40,000.00 0 $40,000 $0.00

Allowance to renovate handicap accessible guestroom to

include roll-in-shower1 LS $10,000.00 0 $10,000

015 6.1.2 Add two accessible parking spaces 2 EA $250.00 0 $500 $0.00

016 6.1.2 Install "Van Accessible" signage 1 EA $175.00 0 $175 $0.00

017 6.1.2 Strip the exterior ADA paths of travel 200 SF $7.00 0 $1,400 $0.00

Notes LS - Lump Sum $76,575.00 $246,612.00 $6,300.00 $38,550.00 $6,300.00 $7,800.00 $9,712.00 $6,300.00 $6,300.00 $6,300.00 $38,550.00 $372,724.00

EA - Each N/A 1.000 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 N/A

SF - Square Foot $76,575.00 $246,612.00 $6,489.00 $40,897.70 $6,884.18 $8,778.97 $11,258.87 $7,522.53 $7,748.21 $7,980.65 $50,299.01 $394,471.11

SY - Square Yard

LF - Linear Foot

Ton- Tonnage

Yearly Total, INFLATED

REF. ESTIMATES

Yearly Total, UNINFLATED

Inflation Factor, w/ Inflation Rate = 3 Percent

NEEDS DISTRIBUTION ($)

NEEDS OVER THE TERM

Page 1 of 1

APPENDIX B

Photo Pages




Photo 1: View of monument sign

Photo 2: View of the hotel looking south




Photo 3: View of the hotel looking north

Photo 4: View of the hotel looking east




Photo 5: View of the hotel looking east

Photo 6: View of at grade covered parking




Photo 7: View of at grade uncovered parking off the lobby

Photo 8: View of below grade parking




Photo 9: View of lobby

Photo 10: Typical hotel corridor




Photo 11: Typical guest room

Photo 12: Typical PTCA in guest room




Photo 13: Typical guest room restroom

Photo 14: Typical sink area in guestroom




Photo 15: Typical TV in guestroom

Photo 16: Typical microwave and refrigerator in guestroom




Photo 17: Typical elevator

Photo 18: Overview of the field of roof




Photo 19: View of ponding

Photo 20: View of boiler and water storage tank




Photo 21: View of hot water storage tank

Photo 22: Missing roof drain strainer




Photo 23: View of damaged stucco

Photo 24: View of roof ponding




Photo 25: Typical Zinsco Electrical Panel

Photo 26: View of shuttered restaurant




Photo 27: View of Shuttered spa

Photo 28: View of guest laundry




Photo 29: View of Zinsco electrical switch gear in basement

Photo 30: View of commercial dryers




Photo 31: View of commercial washer

Photo 32: View of interior stairs




Photo 33: View of stairs to basement from lobby

Photo 34: View of typical fire extinguisher




Photo 35: View of Fire Alarm

Photo 36: Typical gas meter




Photo 37: Typical bollard used to protect building in parking area

Photo 38: View of fire riser




Photo 39: View of Fire Alarm Control Panel

Photo 40: View of hydraulic elevator equipment




Photo 41: View of pad mounted HVAC for the restuarant

Photo 42: Fence showing broken vertical pickets




Photo 43: View of guestroom ADA bathroom

Photo 44: Typical ADA parking space




Photo 45: View of broken window

Photo 46: View of guest laundry




Photo 47: Typical concrete spalling in the lower parking area

Photo 48: View of shuttered kitchen in restuarant

APPENDIX C

Documentation

4.2 About the Property.

Prosper Portland owns the Inn at the Convention Center (ICC Hotel) located at 420 NE Holladay in Portland, Oregon. The ICC Hotel was purchased in 2003 with the intent of demolishing the building and using the site along with the adjacent land for the development of a new convention center hotel. Ultimately a different site was selected for the convention center hotel and Prosper Portland has now decided to reposition the ICC Hotel and to hold it as a long-term revenue generating asset in support of its long-term business plan goals.

4.3 Additional Property Detail.

GENERAL PROPERTY DETAIL

Location 420 NE Holiday Street, Portland, OR

Zoning CXd; Central Commercial with Design Overlay

Use Limited Service Hotel, Economy Market sector

Lot Size 0.41 acres – 18,000 square feet

Transportation TriMet GreenLine light rail station across the street Secondary street frontage on NE MLK and NE Grand (OR Hwy 99E) directly across from the Convention Center

Name of Operator Trek Ventures, LLC – Mark Brennan Principal

Operator Since July 22, 2013

BUILDING DESCRIPTION

Year Built 1969

Construction Type Steel and reinforced concrete

Stories 5 stories over basement parking

Gross Building Area 72,075 square feet

Floor Details Basement Parking: 1st Floor:

18,000 – parking and mechanical room 10,748 (6,407 covered parking, 989 lobby/office, 1,837 shuttered restaurant, 1,373 shuttered spa/sauna and small mechanical room)

2nd – 5th floors 10,275 each net of vertical penetration

Room Sizes Standard King Premium

13 x 26 (90) 15 x 15.5 x 26 (7)

Meeting Rooms 1

Guest Rooms Total 97

Guest Room Types Standard King King View Double Queen Double Queen View Double Queen ADA Storage/Maintenance

13 9 32 40 2 1

Parking Spaces 63

Parking Breakout Basement 1st floor covered 1st floor open

43 11 9

PSI - PCA Pre-survey Questionnaire Date – May 2007

Page 1 of 6

PSI Property Condition Assessment Pre-Survey Questionnaire for Hotels

PSI, an engineering/testing company has been contracted by Prosper Portland to perform a property evaluation on the Inn at the Convention Center Hotel at 420 NE Holladay in Portland, Oregon. A site visit will be scheduled soon. Please complete this questionnaire before PSI’s visit. For those questions that are not applicable, respond with an “NA” not applicable. Please provide the Consultant with available documents and information at the site including: construction drawings, site plans, certificate of occupancy, schedule of outstanding building/fire code violations, recent termite inspections, recent property evaluations, elevator inspection certificates, boiler inspection certificates, tenant complaint log, etc. Please circle available documents. PSI will need to inspect approximately, 10% by type and number, of the tenant units. Please make the appropriate arrangements to do so prior to the site visit. OK Property Description:

Name and address of property: Inn at the Convention Center

420 NE Holladay Street Portland, OR

Year(s) constructed: 1969 Number of units: 97 rooms Number of buildings: 1 Number of land acres .41 acres/18,000 sq./ft

Percentage of occupied units: Hotel-varies Number of furnished

units All - hotel

Hotel Type (Unit Mix)

Hotel Type # Bedrooms

# of Baths

Sq. Ft. # of Units

See attached property information sheet


Page 2 of 6

(Circle or fill in answer)

1. What major physical improvements for the past five years have been completed? a. Painted building exterior, painted all interior doors, new carpet hallways, new carpet 78

guest rooms, lobby front and side doors replaced, replaced all stairwell lighting, replace all emergency exit lights, replaced 25% of PTAC units, new hot water boiler, elevator flooring, enhanced elevator controls (1), updated security system, restaurant window treatments, new exterior signage, new security system.

2. Are any major physical improvements planned in near future? a. Replace roof, new guest room windows, balance of PTAC units to be replaced (as

needed), upgrade parking lot lighting, hallway lighting, elevator landings, replace hot water recirculation pipes, elevator upgrades. (Note: these items have been noted as needed, but no cost estimates have been solicited nor has capital yet been allocated. PCA will help determine priorities and thus timing of these improvements.)

3. List your ten most common work orders? a. Noise complaints on Northside of hotel single pane windows b. Sliding glass doors – water leaking inside, off track, won’t open/close c. Toilet or sink clogged d. TV issues – connectivity, no signal, volume, remote, etc. e. Hairdryer, iron, or coffee maker issues f. Light not working g. HVAC issues h. Furniture repair- chips, scratches, doors, etc. i. Broken tile in bathroom j. Carpet damaged

4. Do you have an ADA compliance plan? yes / NO (circle; if yes, describe) 5. Have you experienced any of the following? Historical major events - damage caused by: flooding, earthquake, fires, hail, high winds, etc. We have had two fires at the hotel – First - a RV caught fire under the drive -up – Damaged the under part of the Porte Cochere, windows, light fixtures, emergency door, paint on the building, driveway. Second – Elevator fire – Mainly smoke damage and elevator equipment. Windstorm – Major storm caused 90% of exterior lights to go out, side lobby glass door damaged, restaurant door slammed shut - broke glass.

Pavements and Drives Type of material: asphalt or concrete Lower parking lot concrete – Upper lot asphalt over concrete Year of installation 1969 Last overlay Est. 1980 Last sealcoat Est. 2005 Number of parking places (see property info) Number of ADA compliant spaces 1


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Do you have a sufficient number of parking spaces for the tenants. YES / no (circle; if no, describe)

Site Drainage Is there a lift station on site? yes / NO (circle; if yes, describe) Are you experiencing any site erosion problems? yes / NO (circle; if yes, describe) Are you experiencing any site ponding problems? YES / no (circle; if yes, describe) Upper parking lot has a few areas of ponding due to damaged asphalt.

Structural Are you experiencing any structural problems? YES / no (circle; if yes, describe) Lower parking structure experienced damage from 2016 winter storm. Water dripping from upper parking lot into lower area froze and started cracking and splitting concrete in numerous areas. Are you aware of any termite damage to the structures? yes / NO (circle; if yes, describe) Date of last termite inspection? Are you aware of any cracking in foundations, slabs, or exterior walls? YES / no (circle; if yes, describe) See above

Building Envelope Building exteriors were last painted Summer of 2013 into 2014 Do you have any water-infiltration problems (doors, windows, chimneys, etc.) ? YES / no (circle; if yes, describe) Water leaks around some sliding glass doors (primarily during heavy windstorms from the south.

Roof Type of roof(s) Composite Age of current roofs 1969 – Many layers of tar patching Number of leaks in last 12 months 3 One in room 526, and two in ceiling above the lobby - from Porte Cochere Do you currently have active roof leaks? YES / no (circle; if yes, describe) Lobby can leak – Tar each year – Driving rains can cause leaks but are contained with a drainage system above the ceiling. Are there current roof warranties in place? yes / NO (circle; if yes, describe)


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Please provide name and phone number of the roofing contractor that provides roof maintenance. All repairs have been done by in-house maintenance staff. Do you have fire-retardant treated plywood roof decking? yes / NO (circle; if yes, describe)

Heating/ Air Conditioning Systems Type of AC equipment PTAC’s Compressor size(s) Age of most AC condenser units: 18 years # of condensers replaced in last 3 yrs – 25 units Condenser repair done by site-personnel with appropriate freon reclaiming equipment? Yes / NO Type of coolant used: R134a Abnormal problems in recent years: yes / NO (circle; if yes, describe) We move older units to the Northside of the building – much cooler. If a unit goes out we install newer units on Southside and move the working unit to the Northside. Has greatly extended the life of the PTAC’s. Type of heating equipment: PTAC’s # of furnaces replaced in last 3 yrs. Abnormal problems in recent years: yes / NO (circle; if yes, describe) We have been replacing 5 – 8 units each year

Electrical Systems Do you have aluminum circuit wiring? yes / NO (circle; if yes, describe) Size of typical tenant unit service panel 15 amps 30 amps for HVAC units Service panels are: breaker / fuse box (circle) Abnormal problems in recent years: yes / NO (circle; if yes, describe)

Plumbing Systems Type of water supply piping (within the walls): Copper and Galvanized steel / (PB) Polybutylene / (PVC ) Polyvinyl chloride - (circle) Type of drain piping: Copper / Cast iron / ABS / (PVC ) Polyvinyl chloride- (circle) Abnormal problems in recent years: YES / no (circle; if yes, describe) Recirculation pipes can get pin holes that leak into the hallways or bathrooms. We have been patching as needed. Proposal to replace piping on file.

Fire Alarm & Fire Suppression Systems


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Smoke Detector in all units YES- Battery/ No Last Inspected (month/year) Nov 2017 Fire extinguishers in all units Yes / NO Last Inspected (month/year) Sep 2017 Sprinkler System: Wet and Dry / None Last Inspected (month/year) 2017 Sprinkler system covers the lower parking lot area, guest laundry, commercial laundry Dry system for hose system in all hallways. Alarm System YES / No Last Inspected (month/year) Oct 2017

SITE CAPITAL IMPROVEMENT/REPAIR HISTORY Please complete the following schedule as to the status of replacement of any recurring, components, items, or systems. List any additional systems that have been replaced, added or improved at this site.

Item or System Total Quantity

Quantity Replaced Thus Far

Date Replaced by

Year(s)

Avg. Cost for Replacement

Comments

Asphalt Pavement

Seal Coat $ /SY Budgeted for Spring 2018

Re-stripe $ /SY Budgeted for Spring 2018

Overlay $ 9,200 Total Budgeted for Spring 2018

Swimming Pool

Filtration system

$ /EA

Heater $ /EA

Resurface pool $ /SF

Repair coping $ /SF

Fencing Repaired in 2016

Tennis court resurface

$ /EA

Exterior surfaces (paint)

$ /SF(or) Painted in 2013/2014

$ /BLDG

Balcony repair $ /EA As needed

Roof coverings Tar patched as needed

Steep-pitch (shingles)

$ /SF (or)

$ /BLDG

Item or System Total Quantity

Quantity Replaced Thus Far

Date Replaced by

Year(s)

Avg. Cost for Replacement

Comments

Low-slope (flat) $ /SF (or)

$ /BLDG

Domestic water boilers

1 1 $ /EA Replaced –

Central Boiler $ /EA

Boiler peripherals $ /EA

Water heaters 1 1 2007 $ 30,290 /EA


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Furnaces (electric) $ /EA

Furnaces (gas) $ /EA

Electric baseboard $ /EA

Heat pumps $ /EA

AC condenser units $ /EA

Window AC units Lobby HVAC

96 2

25 2

2013 – 2017 2015

$ 900/EA $ 3,276/EA

As needed

Replace windows $ /EA Under consideration

Replace ext. doors 2 $ /EA Lobby doors replaced 2016 and 2017

Carpeting 96 units 78 replaced 2013-2017 $ 750 /UNIT Remaining units in 2018

Vinyl floor covering $ /UNIT

Kitchen countertops 1 – Mtg Rm $ /UNIT

Kitchen sinks 1 – Mtg Rm $ /UNIT

Kitchen cabinets 1 – Mtg Rm $ /UNIT

Vanity/countertops 96 0 $ /UNIT

Bathroom sinks 96 2 $ 75 /UNIT

Shower enclosures 96 1 2015 $ 2,384 /UNIT Room 223

Refrigerators 96 2013- 2017 $ 150/EA Now in all rooms – about 6 each year get replaced

Range/stoves 1 – Mtg Rm $ /EA

Range hoods 1 – Mtg Rm $ /EA

Dishwashers 1 – Mtg Rm 1 1996 $ 2,780 /EA

Garbage disposals 1 – Mtg Rm $ /EA

Clothes washers 1 – Guest Laundry, 2 Commercial

3 $ 750 /EA $ 1,500/EA $

1 - New coin operated guest washer and two used commercial washers

Clothes dryers 1 – Guest Laundry, 2 Commercial

1 2017 $ 600/EA

1 - New coin-operated guest dryer

Additional items

Hallway Carpeting 4 - floors 4 - Floors 2015-2016

Lewis and Clark Meeting Room - Carpet

1 1 2014 New Carpeting

Hot Water Recirculation Pump

1 1 2013 $ 2,423/EA

Person Completing Questionnaire Signature: Mark D. Brennan Title: General Manager Date: January 6, 2018 Years at property: 4 + Telephone: 503-233-6331 Fax: 503-233-2677

E-Mail Address: [email protected]

Notes or other conditions we should be aware of.

REPORT OF PROPERTY CONDITION ASSESSMENT of 420 NE HOLLADAY … · 31/01/2018 · 420 NE Holladay...

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Transcript of REPORT OF PROPERTY CONDITION ASSESSMENT of 420 NE HOLLADAY … · 31/01/2018 · 420 NE Holladay...