The Commercial Due Diligence Suite of Services
Property Condition Assessment (PCA)
Whether you are buying commercial property, selling commercial property, or lending for a commercial transaction, having a clear and unambiguous assessment - from an unbiased, licensed professional - of the property's physical characteristics, performance, and history is crucial in assuring an equitable deal.
Professional Engineering Services for Commercial Facilities
We provide:
Rooftop support calculations
Bar joist and roof reinforcement design
Engineering for building envelope changes and modifications
Site plans and drainage design
Water treatment design
Effluent treatment design
Site plan and utility engineering support
Boiler room, HVAC, and mechanical systems design
Phase 1 Environmental Assessment (or ESA, Environmental Site Assessment)
Cost Segregation Study
We conduct property condition assessments in accordance with ASTM 2018 and NABIE standards of practice. We include:
The Phase 1 Environmental Assessment (or ESA, for Environmental Site Assessment), is another key piece of real estate due diligence. We perform our Phase 1 assessments to ASTM E1527 standards of practice (although we also perform Phase 1 Assessments for Child Care Facilites per NJDEP and DHSS standards, and the Small Business Administration (SBA) Standard Operating Procedure SOP 50-10(5) for type 7A and 504 loans). Key elements of the Phase 1 include:
A wholly underutilized and underappreciated section of the IRS tax code allows for accelerated depreciation for certain assets gained in a real estate transaction. The Cost Segregation Study (CSS) is the supporting document that your accountant will file with the IRS to realize this depreciation savings.
Documentation Review and Site Personnel Interviews
Walk-Through Survey
Preparations of Opinions of Probable Costs to Remedy Physical Deficiencies
Structural assessments
Property Condition Report
Site, drainage, and grading
Foundations, footings, flatwork
Structural and building elements
HVAC and Mechanical Systems
Electrical service
Exterior finishes and elements
Interior finishes and elements
Roofing systems
Regulatory compliance
Safety issues and features
Parking and site plan elements
Stakeholder interviews
Site inspection
Chain of title history (typically back to the time of the site's orignal naturally vegetated state)
Site operating history
Site construction and environmental permit histories
Site hazards history
Environmental database searches
Site groundwater and geological conditions
Sanborn fire map search
Aerial photography history
Search of historical topographic maps
Log of emergency response incidents (fires, spills, etc)
NJDEP and EPA incident histories
Conclusions, including identification of areas of concern (AOC), and recommendations for further action
A recent $6 million commercial real estate purchase netted an additional first-year positive cash flow of $68,000.
Buildings that normally benefit from a CSS include warehouses, office buildings, apartment complexes, hotels, commercial sites (shopping malls), restaurants, service stations, sports facilities, recreation facilities, nursing and rehabilitative care centers, manufacturing sites, factories, casinos, supermarkets, and retail properties.

If you are buying commercial real estate, it benefits you to know about cost segregation studies.
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Oak Ridge Engineering specializes in professional engineering and inspection services for real estate, investment, mortgage lending, relocation, construction, and regulatory compliance.
                                             (908) 752-3735