PCA Example - Insight Health Proposal

Property Condition Assessment

Former Critendon Medical Office Building

1135 West University Drive

Rochester Hills, Michigan 48307

PREPARED FOR

Walton Crittendon MOB, LLC

101 W. Big Beaver Road, Suite 200

Troy, Michigan 48084

Attn: Mr. David Hales

PROJECT #

DATE

18926F-2-196

March 12, 2024

1.0 General Information

Project

Former Critendon Medical Office Building

18926F-2-196

Client

Walton Crittendon MOB, LLC

David Hales

101 W. Big Beaver Road, Suite 200 Troy, Michigan 48084,

Consultant

AKT Peerless Environmental Services

22725 Orchard Lake Road

Farmington, MI 48336

Phone: 248-615-1333 Fax: 248-615-1334

E-mail Address: bensingm@aktpeerless.com

Assessment Date: 02/19/2024

Report Date: March 13, 2024

Site Assessor: Michael J. Bensing

Senior Project Manager

Senior Reviewer: Michael J. Bensing

Senior Project Manager

2.0 Executive Summary

2.1

General Description

Site

Former Critendon Medical Office Building 1135 West University Drive

Rochester Hills, MI 48307

County: Oakland Latitude: 42.679840 Longitude: -83.149568

Site Access Contact: Marc Kimmerly, Property Manager

Property

Property Type: Healthcare

Reserve Term: 12 years

Inflation Rate: 2.50%

Building Age: 16 - 30 years

Effective Age: 16 years

Num. Buildings: 2

Gross Site Area: 1.68 Acres

On Behalf Of Robert Lambdin - Senior VP/Operations Manager

AKT Peerless Environmental Services was commissioned by Walton Crittendon MOB, LLC to conduct a Property Condition Assessment (PCA) on the property referred to as "Former Critendon Medical Office Building" located at 1135 West University Drive in Rochester Hills, Oakland, 48307.

2.2 General Physical Condition

The subject property was observed to be in good overall condition. The buildings and surrounding features appear to have been provided with adequate preventative maintenance since original construction, although many of the site structures and features are at or beyond the respective useful life. AKT Peerless requested information from the City of Rochester Hills and Oakland County regarding details of the North Building construction that reportedly occurred in 1994 and the South Building Construction that reportedly occurred in 2008.

2.3 Opinions of Probable Cost

The subject property was observed to be in good condition. The majority of continued operating costs are associated with asphalt pavement crack sealing and coating and replacement of the South Building roof membrane, boiler replacement, HVAC unit replacement, and air conditioner replacement.

Based on visual and reported observations, AKT Peerless noted the following issues that require immediate or very short-term repairs:

• Wrap restroom drain pipes below lavatory with insulation; protect against contact with hot, sharp, or abrasive surfaces - $910. If there are plans for significant building renovations, additional ADA upgrades may be required. Any renovations involving architectural design should consider ADA requirements.

Significant capital investments over the term of the report are described as follows:

• Asphalt Pavement, crack seal, seal coat, restripe - $14,000

• Overlay South Building roof with membrane - $84,600

• Boiler replacement - $10,000

• HVAC unit replacement - $640,000

• Air conditioner replacement - $21,000

A table indicating estimates for immediate/short term and capital replacement reserve costs is included as an attachment to this report.

2.4 Recommendations

The structural elements of the buildings have performed adequately for the past 30 years. Assuming the recommendations in this report in reference to the immediate and Physical Needs over the Term are made in an appropriate time frame; a preventive/remedial maintenance program is implemented continually; and all site systems and building components are replaced as necessary with an acceptable standard of care, this sites estimated remaining useful life (RUL) should be at least an additional 30 years barring any natural disasters. This is based on the observation that the foundations, which has an expected useful life (EUL) of 50 years plus, were observed to be functioning properly with no major deficiencies. Other site and building elements are replaceable. However, as the property ages, the maintenance program cost should be expected to increase.

AKT Peerless can make no comment on the marketability of the site's useful life. Any qualifications and limitations in place for the property condition assessment as provided by AKT Peerless is applicable to the summary comments mentioned above.

3.0 Introduction

3.1 Purpose

The purpose of the Property Condition Assessment (PCA) is to observe and document the conditions and possible defects of readily visible materials and building systems which might significantly affect the value of the property, and to evaluate if conditions exist which may have a significant impact on the continued operation of the facility. The observations, findings, and conclusions within this report are based on professional judgment and information obtained during the course of this assessment. It is understood that Capital One, National Association will use the information provided in this Report to assist in decisions regarding the acquisition/occupancy of the subject site.

3.2 Scope of Work

This Report is based on a site visit, in which AKT Peerless performed a visual, non-intrusive and non-destructive evaluation of various external and internal building components, in addition to reviews of "as-built" plans and specifications for the subject property, and available information from trade physical element reports. Representative samples of the major building components were observed and physical conditions evaluated in general

accordance with ASTM E2018-24. These systems include site development, building structure, building exterior and interior areas; mechanical, electrical, and plumbing systems, conveyance systems, life safety/fire protection, and general ADA compliance. Photographs were taken to provide a record of general conditions of the facility, as well as the specific deficiencies observed. The PCA report is not a building code, safety, regulatory or environmental compliance inspection.

AKT Peerless observed the interior spaces to determine their general character and condition. During the site visit we interviewed the available site personnel and/or property managers to add or confirm information. AKT Peerless reviewed available drawings or site documentation to confirm the general character of the construction. AKT Peerless also made inquiries to the local building department, zoning department and fire department.

If any additional information is encountered concerning the facility, it should be forwarded to AKT Peerless for possible re-evaluation of the assumptions, conclusions and recommendations presented herein. The recommendations and opinions of cost provided herein are for observed deficiencies based on the understanding that the facility will continue operating in its present occupancy classification.

This Report is based on the evaluator's judgment of the physical condition of the components, their ages and their expected useful life (EUL). The conclusions presented are based upon the evaluator's professional judgment. The actual performance of individual components may vary from a reasonably expected standard and will be affected by circumstances that occur after the date of the evaluation.

The Report does not identify minor, inexpensive repairs or maintenance items which are part of the property owner's current operating budget so long as these items appear to be addressed on a regular basis. The report does identify infrequently occurring maintenance items of significant cost, such as exterior painting, deferred maintenance and repairs and replacements that normally involve major expense or outside contracting.

The following terms are used throughout the report and are defined as follows:

Excellent: New or like new

Good: Average to above-average condition for the building system or material assessed, with consideration of its age, design, and geographical location.

Fair: Average condition for the building system evaluated. Satisfactory; however, some short term and/or immediate attention is required or recommended.

Poor: Below average condition for the building system evaluated; requires immediate repair, significant work or replacement anticipated to return the building system or material to an acceptable condition.

Unless stated otherwise in this report, the systems reviewed are considered to be in good condition and their performance appears to be satisfactory.

3.3 Deviations From the Guide

This property condition assessment was generally carried out as per ASTM E 2018-15. No additional consultants were used in the assessment and preparation of the PCA.

3.4 Reliance

AKT Peerless has concluded complete building information was not reasonably ascertainable from the City of Rochester Hills except at considerable cost.

The information obtained from external sources, to the extent it was relied upon to form AKT Peerless' opinion about the condition of the site and structures, was assumed to be complete and correct. AKT Peerless cannot be responsible for the quality and content of information from these sources. However, based on a review of readily available and reasonably ascertainable information, AKT Peerless concluded that these limitations/data gaps

should not materially limit the reliability of the report and that a thorough documentation of the subject site's condition has been conducted.

Information regarding the cost schedules for any specific property feature is based on AKT Peerless' professional opinion. The precise costs associated with replacing or repairing any referenced building or property structure can vary by items including but not limited to owner selection of product or equipment, vendor, economic conditions, or competitive bidding process. AKT Peerless recommends that the client contact an entity specializing in a particular architectural or engineering discipline to develop precise material/equipment specifications and cost estimates.

Disclaimer and Reliance

AKT Peerless performed this Property Condition Assessment for the benefit of its Client, Walton Crittenton MOB, LLC. AKT Peerless acknowledges that this party may rely on the contents and conclusions presented in this report. Unless stated otherwise in writing, AKT Peerless makes no other warranty, representation, or extension of reliance upon the findings of this report to any other entity or third party. The information and opinions presented in this report are for the exclusive use of the Client. No distribution to or reliance by other parties may occur without the express written permission of the Client or AKT Peerless. AKT Peerless will not distribute this report without written consent from the Client, or as required by law or by a Court order.

AKT Peerless understands that Capital One Bank, N.A. ("CONA") and Structured Real Estate Capital, LLC ("SREC") wish to receive AKT Peerless’ permission to rely upon the findings and conclusions contained in the Report(s).

AKT Peerless consents and agrees that CONA, SREC, their co-lenders, participants, employees, managers, members, affiliates, successors and assigns may rely upon the facts and opinions set out in the Report(s) to the same extent as Client, for whom they were prepared. This permission is granted notwithstanding any contrary provisions regarding third party reliance in the Report(s) or in Consultant’s retainer agreement, contract, work order or other agreement with Client.

4.0 Property Description

4.1

Site Summary

The subject property is located in the northwest quarter of the northwest quarter of Section 15,Township 3 North, Range 11 East in Oakland County, Michigan. The property is located to the south of University Avenue/Walton Boulevard, and to the east of Livernois Road and is on an approximately 1.68-acre portion of an approximately 26-acre parcel. The parcel identification number is 15-15-101-003 and is zoned SP, Special Purpose District. The current owner of record is Critendon Hospital Medical Center and there two commercial buildings located on the parcel occupied by various tenants for medical purposes.

Site Information

Primary Use: Healthcare

Ownership Entity: Walton Crittendon MOB, LLC

Property Management Firm: SK Medical Management

Gross Site Area: 1.68 Acres

4.2 Building Summary

Visit Information

Site Assessor: Michael J. Bensing

Date of Site Visit: 02/19/2024

Weather: Partly Cloudy

Temperature: 35°F

Accompanied By: Marc Kimmerly, SK Medical Management

The North Building was constructed in 1994 and the South Building was constructed in 2008. Copies of available building records from the City of Rochester Hills are included in Appendix C.

Building Name

North Building

Number of Floors 4

Number of Rooms Multiple

Number of Basement Levels None

Total Leasable Area 56400

Structure steel-framed

Exterior Walls brick veneer

Roof Ballasted membrane

Foundation Spread footings

HVAC Boilers and rooftop air conditioners

Electrical Pad Mounted Transformers

Vertical Transportation Hydraulic

Building Name South Building

Number of Floors 4

Number of Rooms Multiple

Number of Basement Levels None

Total Leasable Area 56400

Structure steel-framed

Exterior Walls brick veneer

Roof EPDM

Foundation

Slab-on-Grade

HVAC Rooftop HVAC units

Electrical Pad Mounted Transformers

Vertical Transportation Hydraulic

4.3 Other Structures

There are no other buildings on the property.

4.4 ADA Compliance

The Americans with Disabilities Act (ADA) is a broad, federal civil rights law that protects individuals with disabilities against discrimination in employment and ensures them unimpeded access to public accommodations and commercial facilities. Under ADA, owners and employers with buildings classified as public accommodations were required to take steps to remove physical barriers readily achievable, if possible, by January 26, 1992. The law states that after January 26, 1992, any alteration or renovation work performed on either public accommodations or commercial facilities must comply with ADA.

Generally, Title III of the Americans with Disabilities Act (ADA) prohibits discrimination by entities to access and use of "areas of public accommodations" and "commercial facilities" on the basis of disability. Regardless of its age, these areas and facilities must be maintained and operated to comply with the Americans with Disabilities Act Accessibility Guidelines (ADAAG).

Buildings completed and occupied after January 26, 1992 are required to comply fully with the ADAAG. Existing facilities constructed prior to this date are held to the lesser standard of compliance to the extent allowed by structural feasibility and the financial resources available. As an alternative, a reasonable accommodation pertaining to the deficiency must be made.

During the PCA, an ASTM E2018 Tier I limited visual observation for ADA accessibility compliance was conducted. It is understood by the Client that the limited observations described herein does not comprise a full ADA Compliance Survey, and that such a survey is beyond the scope of this assessment.

At a medical / office property, the areas considered as a public accommodation besides the site itself and parking, are the exterior accessible route, the interior accessible route up to the tenant lease lines and the interior common areas, including the common area restrooms.

The facility does not appear to be accessible with Title III of the Americans with Disabilities Act. Elements as defined by the ADAAG that are not accessible as stated within the priorities of Title III, are as follows:

• Wrap restroom drain pipes below lavatory with insulation; protect against contact with hot, sharp, or abrasive surfaces.

An ASTM Tier II or Tier IIIA full ADA Compliance Survey may reveal some \ additional aspects of the property that are not in compliance.

Corrections of these conditions should be addressed from a liability standpoint, but are not necessarily code violations. The Americans with Disabilities Act Accessibility Guidelines concern civil rights issues as they pertain to the disabled and are not a construction code, although many local jurisdictions have adopted the Guidelines as such. The cost to address the achievable items is noted above and is included as a lump sum in the Immediate and Short Term Repairs Cost Estimate (Table 1).

Restrooms

Wrap drain pipes below lavatory with insulation; protect against contact with hot, sharp, or abrasive surfaces (ADAAG Section 4.19.4)

Estimated Cost: 26 @ $35/EA = $910

Total Estimated Cost: $910

5.0 System Description

5.1 Site Elements

5.1.1 Topography

Description: The United States Geological Survey (USGS), Rochester Quadrangle 7.5-Minuteseries topographic map was reviewed for this PCA. This map was published by the USGS in 2023. According to the contour lines on the topographic map, the subject site is located at approximately 790-feet above mean sea level (MSL). The contour lines in the area of the subject site indicate the area is sloping gently to the southeast.

Assessment: No significant issues were observed regarding the surrounding topography.

Recommendation: Maintain as part of facility operations.

5.1.2 Storm Water Drainage

Description: Local storm water is managed through the Oakland County Drain Commission. Storm water runoff from the roof areas is directed to below-ground storm water pipes and there are storm water inlets in the lawn to the west of the buildings.

Assessment: No observed or reported deficiencies were noted. No evidence of water ponding was observed.

Recommendation: Maintain as part of facility operations.

5.1.3 Ingress and Egress

Description: Access roads for the hospital complex are located to the east, south, and west of the buildings and connect with University Drive/Walton Boulevard and Livernois Road.

Assessment: No deficiencies were noted on the asphalt-paved ingress and egress area. The number and location of site access points appear to be adequate relative to the size and use of the property.

Recommendation: The maintenance of the access roads and ingress/egress points are the responsibility of the Ascension Providence Rochester Hospital

5.1.4 Paving, Curbing, Parking

Description: Access roads for the hospital complex are located to the east, south, and west of the buildings and connect with University Drive/Walton Boulevard and Livernois Road. There are two asphalt paved parking lots to the south of the buildings, the one directly south of the buildings is part of the property. According to the site representative, the asphalt parking lot was last resurfaced about 5 to 10 years ago. Concrete curbs surround the parking lot.

Assessment: The parking lot appeared to be in good condition.

Recommendation: Maintain as part of facility operations. Patch and seal coat every five years.

COST SUMMARY

5.1.5

Flat-Work

Description: The site and building entrances flat work and pedestrian sidewalks consists of cast-in-place concrete construction.

Assessment: The concrete sidewalks and flatwork appeared to be in good condition.

Recommendation: Maintain as part of facility operations.

5.1.6 Landscaping and Appurtenances

Description: Landscaping is present around the perimeter of the buildings, in parking lot islands, and in transition areas to surrounding roadways. Shrubs, grass, and trees are located around the complex.

Assessment: Landscaping was observed to be in good condition during the assessment. No significant deterioration, or damaged areas were identified.

Recommendation: Based on observed and reported conditions, no significant capital expenditures beyond existing levels of maintenance are expected during the evaluation period.

5.1.7

Recreational Facilities

No recreational facilities were noted on the property.

5.1.8 Utilities

Description: All utilities are underground:

• Water and sanitary sewer are provided by City of Rochester Hills.

• Storm water is locally managed through the Oakland County Drain Commission.

• Electric service is provided by DTE Energy.

• Natural gas is provided by Consumers Energy.

• Solid waste and recycling services are provided by GFL Environmental.

Assessment: All utilities appear to be adequately servicing the property.

Recommendation: Maintain as part of facility operations.

5.2 Structural Frame and Building Envelope

5.2.1

Foundation

Description: Foundations specifications were not available for the building. Site observations denote that the foundation consists of a continuous, concrete wall footing that extends at least 42 inches below the ground surface. The remainder of the floor is a cast in place, slab-on-grade concrete system.

Assessment: There does not appear to be any settlement or deflection of the building foundation.

Recommendation: Observe the foundation and exterior masonry walls for cracks or deflection. Maintain the system as part of facility operations.

5.2.2

Building Frame

Description: The building appears to be constructed of a steel frame.

Assessment: Observations of the structural framing was limited to exposed elements; however, no evidence of structural failure, including excessive deflection or movement, were noted. Additionally the exposed floor slabs did not have any significant cracking that would indicate structural deficiencies. All structural elements appeared to be level and stable.

Recommendation: Observe and maintain as part of normal facility operations.

5.2.3

Exterior Walls

Description: The buildings exterior consists of brick cladding. Windows and doors are aluminum framed, double paned glass.

Assessment: The building brick cladding, doors, and windows appeared to be in good condition.

Recommendation: Observe and maintain as part of normal facility operations.

5.2.4

Roofing

Description: The North Building has a stone ballasted membrane roof and the South Building has a mechanically fastened membrane roof. According to the site representative, the North Building roof was replaced in 2021 and the South Building roof is original to the construction. The buildings have HVAC equipment housed on the roof. Precipitation is directed toward a series of

internal roof drains and thereafter to the local storm water management system.

Assessment: The roofs appeared to be in good condition. No leaks were observed or reported. The South Building roof will go beyond its EUL during the term.

Recommendation: Observe and maintain as part of normal facility operations. Due to its age, replacement of the South Building roof should be considered during the term.

COST SUMMARY Recommendation

5.2.5

Exterior and Interior Stairs

Description: The building stairways were steel with concrete treads.

Assessment: All stairways appeared to be in good condition.

Recommendation: Maintain as part of facility operations.

5.2.6 Patio, Terrace, and Balcony

No patios, terraces, or balconies are present.

5.3 Interior Elements

5.3.1

Unit Types and Unit Mix/Building Area

Description: The building was designed to be used for medical purposes and medical offices and occupied by a multiple tenants. Interior finishes include gypsum wall board, wall paper, paint, carpet, vinyl cove moldings, ceramic floor tiles, with suspended ceilings.

Assessment: The interior finishes were observed to be in good condition and of average to above average grade construction materials and furnishings.

Recommendation: Maintain the interior of the building as part of routine facility operations.

5.3.2

Common Areas

Description: Common areas of the building are similarly finished as the tenant spaces with carpet, drywall, hard and vinyl flooring, acoustic ceiling tiles and LED and fluorescent lights.

Assessment: Common area finishes and fixtures were observed to be in good condition and of above average materials and construction.

Recommendation: Maintain as part of facility operations.

5.4 Mechanical and Electrical Systems

5.4.1

Plumbing

Description: Visibly observable potable water piping is copper. Sanitary waste piping is cast iron.

Restroom fixtures are ceramic, water faucets and toilets are push-pull or automatic type.

Domestic hot water is provided by a boiler on the first floor.

Assessment: No observed or reported deficiencies were noted and water pressure appeared to be adequate. No evidence of leaks, line failure, or indication of systemic plumbing issues was observed by AKT Peerless or reported by the site contact. The hot water boiler will reach the end of the EUL by the end of the term.

Recommendation: Maintain the plumbing system as part of facility operations. Assume replacement of the hot water boiler by the end of the term.

COST SUMMARY

5.4.2

Heating

Description: The North Building is heated by two boilers as follows:

• Two, 603,000 British Thermal Unit (BTU) per hour Lochinvar boilers, Model Number CBN0747, built in 2022.

The South Building is heated by two rooftop mounted HVAC units as follows:

• Two, 850,000 BTU per hour Trane HVAC units, Model Number SFHFF754HAA66C9AD900, built in 2008.

Assessment: The heating equipment appeared to be in good working condition. The rooftop HVAC units will be past the end of the EUL by the end of the term.

Recommendation: The replacement of the rooftop HVAC units should be considered over the term as they approach their EUL and as service parts become less available. As long as these units are serviceable, replacement is not necessarily recommended.

COST SUMMARY

5.4.3

Air Conditioning and Ventilation

Description: The North Building is cooled by two rooftop mounted air conditioners as follows:

• Two 11 ton Trane air conditioners, Model Number SXHGD11470C75S7DS0007GRTS, built in 1994 and 2021.

The South Building is cooled by two rooftop mounted HVAC units as follows:

• Two 850,000 BTU per hour Trane HVAC units, Model Number SFHFF754HAA66C9AD900, built in 2008.

Assessment: The cooling equipment appeared to be in good condition, but one of the air conditioners is past the end of its EUL and the HVAC units will be past the end of the EUL by the end of the term.

Recommendation: Replacement of the rooftop HVAC units and one of the air conditioners should be considered over the term as they approach their EUL and as service parts become less available. As long as these units are serviceable, replacement is not necessarily recommended. The HVAC replacement cost is included in the Heating Section of this report.

COST SUMMARY

Recommendation EUL EFF AGE RUL Year Cost

Packaged terminal air conditioner 20 30 -10 2 $21,000 Total $21,000

5.4.4 Electrical

Description: Building electricity is provided by DTE Energy through an underground feed to a pad mounted transformer outside of the building. A 1200 amperage, 480 voltage main circuit breaker is located in the electrical room on the first floor. A natural gas-powered emergency electrical generator is located outside of the building near the transformer. Distribution wiring appeared to be copper. Most of the building lighting is T-8 fluorescent or light emitting diode (LED). Parking lot down-lighting is LED.

Assessment: The electric supply and distribution system appears to be adequate for the facility at this time.

Recommendation: Maintain the electric supply and distribution system as part of facility operations.

5.5 Vertical Transportation

Vertical Transportation

Description: The buildings are equipped with three passenger elevators. The elevators serve all four floors. Elevators 1 and 2 were manufactured by Dover and have a 4,500 pound nameplate capacity. Elevator 3 was manufactured by Thyssenkrupp and has a 5,000 pound nameplate capacity. The passenger cabs are finished with tile floors, wood wall panels, metal panel ceilings and stainless steel control panels. Controls and fixtures include audible and visual direction of travel indicators, and visual floor location indicators. In cab controls include call buttons with Braille, fire department operation and an emergency communication system.

Assessment: The elevator and associated equipment were observed to be in good condition. Cab rides were smooth and the cab stopped level with the floor.

Recommendation: The elevators were observed to be in good condition and no provisions are included in the evaluation term.

5.6 Life Safety/Fire Protection

Life Safety/Fire Protection

Description: The building includes the following life safety items:

• The buildings are protected by a sprinkler system;

• The standpipes are wet;

• The building has fire department water connections on the exterior of the buildings;

• Fire hydrants are located southeast, south, and northwest of the buildings;

• The buildings have a fire alarm system, alarm stations are both visual and audible, the fire alarm reports to the local fire department;

• There are security cameras in the elevator lobbies;

• Emergency lights are located throughout the buildings; and

• Fire extinguishers are present throughout the buildings.

Assessment: Overall, it would appear that the life safety systems are adequately servicing the facility.

Recommendation: Continue routine maintenance and inspections of facility systems and equipment.

5.7 Additional Considerations

No additional PCA considerations are included in this report.

6.0 Document Review and Interviews

6.1

Building and Fire Code Compliance

The site contact, Mr. Marc Kimmerly, Property Manager was not aware of any outstanding work orders, building code infractions, building code violations and/or regulations, building ordinances and municipal health and fire safety by-laws, which would affect the future operation and maintenance of the subject property. AKT Peerless requested records from the City of Rochester Hills Building Department and the Fire Department.

According to City of Rochester Hills Building Department and the Fire Department, there are no open building code or fire code violations.

6.2 Document Review

The following information was available for review:

• List of building projects by year with costs - provided by site representative, Marc Kimmerly.

• List of tenants and empty spaces - provided by site representative, Marc Kimmerly

• Building permits - available online through the City of Rochester.

6.3

Interviews

The following personnel was interviewed to help produce the PCA:

• Mr. Marc Kimmerly, Property Manager, SK Medical Management, (248) 515-4218

Mr. Kimmerly accompanied AKT Peerless during the inspection of the interior areas of the buildings and answered questions regarding the building structure, and operations. He had no knowledge of any historic or current building/fire code violations.

6.4 Flood Plain

AKT Peerless reviewed Flood Insurance Rate Maps (FIRMs), published by the Federal Emergency Management Agency (FEMA) to determine if the subject property is located within a flood zone. According to a review of map 26125C0392F, dated September 29, 2006, the subject property is located in Zone X, defined as an area outside the 500-year flood plain. A copy of the map for the subject property is provided in Appendix C.

6.5 Seismic Zone

The subject property was determined to be in Seismic Zone 1. On a scale of 0 to 4, with 0 representing the least severity and 4 the greatest in terms of ground acceleration as compared to gravity. Buildings in Zone 1 should be designed to withstand an earthquake that can achieve a peak acceleration of 0.8 the acceleration of gravity.

6.6 Water Intrusion

No evidence of water intrusion was observed or reported during the site reconnaissance.

7.0 Opinions of Probable Cost

The subject property was observed to be in good condition. The majority of continued operating costs are associated with asphalt pavement crack sealing and coating and replacement of the South Building roof membrane, boiler replacement, HVAC unit replacement, and air conditioner replacement.

Based on visual and reported observations, AKT Peerless noted the following issues that require immediate or very short-term repairs:

• Wrap restroom drain pipes below lavatory with insulation; protect against contact with hot, sharp, or abrasive surfaces - $910. If there are plans for significant building renovations, additional ADA upgrades may be required. Any renovations involving architectural design should consider ADA requirements.

Significant capital investments over the term of the report are described as follows:

• Asphalt Pavement, crack seal, seal coat, restripe - $14,000

• Overlay South Building roof with membrane - $84,600

• Boiler replacement - $10,000

• HVAC unit replacement - $640,000

• Air conditioner replacement - $21,000

A table indicating estimates for immediate/short term and capital replacement reserve costs is included as an attachment to this report.

Cost Tables

Former Critendon Medical Office Building

March 13, 2024

Project Number: 18926F-2-196

Former Critendon Medical Office Building

1135 West University Drive

Rochester Hills, MI 48307

March 13, 2024

Project Number: 18926F-2-196

5.1.4

5.4.2

Appendix A: Photographs

Photographs 1135 West University Drive Rochester Hills, Michigan

February 19, 2024

Site looking southeast.

Site looking northeast.

Site looking northwest. Asphalt parking lot.

Sidewalk. Stormwater inlet.

Property

Taken by: M. Bensing

Date:

Project No: 18926F

February 19, 2024

North Building ballasted membrane roof.

South Building mechanically fastened membrane roof.

Typical corridor.

Typical office space.

Taken by: M. Bensing

Date:

Project No: 18926F

Typical ADA compliant bathroom.

Typical non-ADA compliant bathroom.

Metal stairs.

North Building boilers.

North Building rooftop air conditioners.

South Building rooftop HVAC units. Property Photographs

Taken by: M. Bensing

Date:

Project No: 18926F

South elevator equipment room.

Emergency electric generator.

External pad mounted electrical transformer.

Typical internal electrical transformers. Electric panel.

Property Photographs 1135 West University Drive Rochester Hills, Michigan

Date: February 19, 2024

Project No: 18926F

Typical elevator control panel.

Taken by: M. Bensing

Air compressor. Fire suppression controls. Fire suppression sprinkler. Internal fire department connection.

External fire department connection.

hydrant.

Photographs

February 19, 2024

Taken by: M. Bensing

Date:

Project No: 18926F

Property Photographs

Taken by: M. Bensing

Date: February 19, 2024

Project No: 18926F

Appendix B: Site Plan

SITE LOCATION MAP

Former Critendon Medical Office Building

1135 West University Drive Rochester Hills, Michigan

PROJECT NUMBER: 18926F-2-196

Appendix C: Supporting Documentation

THISCERTIFICATEISISSUEDASAMATTEROFINFORMATIONONLYANDCONFERSNORIGHTSUPONTHECERTIFICATEHOLDER.THIS CERTIFICATEDOESNOTAFFIRMATIVELYORNEGATIVELYAMEND,EXTENDORALTERTHECOVERAGEAFFORDEDBYTHEPOLICIES BELOW.THISCERTIFICATEOFINSURANCEDOESNOTCONSTITUTEACONTRACTBETWEENTHEISSUINGINSURER(S),AUTHORIZED REPRESENTATIVEORPRODUCER,ANDTHECERTIFICATEHOLDER.

IMPORTANT:IfthecertificateholderisanADDITIONALINSURED,thepolicy(ies)musthaveADDITIONALINSUREDprovisionsorbeendorsed. IfSUBROGATIONISWAIVED,subjecttothetermsandconditionsofthepolicy,certainpoliciesmayrequireanendorsement.Astatementon thiscertificatedoesnotconferrightstothecertificateholderinlieuofsuchendorsement(s).

NAME: CONTACT

& McLennan Agency LLC 15415 Middlebelt Road Livonia MI 48154-3805

E-MAIL ADDRESS: PRODUCER

(A/C,No,Ext): PHONE

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INSURERD:

INSURERE:

INSURERF:

(A/C,No): FAX

INSURER(S)AFFORDINGCOVERAGE

THISISTOCERTIFYTHATTHEPOLICIESOFINSURANCELISTEDBELOWHAVEBEENISSUEDTOTHEINSUREDNAMEDABOVEFORTHEPOLICYPERIOD INDICATED.NOTWITHSTANDINGANYREQUIREMENT,TERMORCONDITIONOFANYCONTRACTOROTHERDOCUMENTWITHRESPECTTOWHICHTHIS CERTIFICATEMAYBEISSUEDORMAYPERTAIN,THEINSURANCEAFFORDEDBYTHEPOLICIESDESCRIBEDHEREINISSUBJECTTOALLTHETERMS, EXCLUSIONSANDCONDITIONSOFSUCHPOLICIES.LIMITSSHOWNMAYHAVEBEENREDUCEDBYPAIDCLAIMS.

COMMERCIALGENERALLIABILITY CLAIMS-MADEOCCUR GEN'LAGGREGATELIMITAPPLIESPER:

PERSONAL&ADVINJURY $ MEDEXP(Anyoneperson) $ EACHOCCURRENCE DAMAGETORENTED $ PREMISES(Eaoccurrence)

PRODUCTS-COMP/OPAGG

COMBINEDSINGLELIMIT

(Peraccident) (Eaaccident)

1,000,000

500,000

5,000 1,000,000 2,000,000

2,000,000

$ $

1,000,000

Ifyes,describeunder

DESCRIPTIONOFOPERATIONS/LOCATIONS/VEHICLES(ACORD101,AdditionalRemarksSchedule,maybeattachedifmorespaceisrequired)

1,000,000

SHOULDANYOFTHEABOVEDESCRIBEDPOLICIESBECANCELLEDBEFORE THEEXPIRATIONDATETHEREOF,NOTICEWILLBEDELIVEREDIN ACCORDANCEWITHTHEPOLICYPROVISIONS.

Tenant improvements for suite 450 - DeClaire LeMacchia - Converted PT space into exam/xray rooms

Pressure zone backflow preventer and removed lawn irrigation system valve

Description

Main lobby renovations including new wood wall paneling, lobby chairs, planters, fascia wall covering and chandeliers.

Roof replacement for phase 1 by Schena Roofing. Includes lighting protection removal, reinstallation and recertification.

Replacement of Northern RTU on Phase 1.

Tenant Improvements for Suite 105 - Crittenton Medical Pharmacy - Wallcovering and Flooring

Sidewalk and other concrete repairs

Combustion fan replacement to boilers

Description

Replacement of 2 boilers at the end of life with 2 new Lochinvar 81% efficient boilers.

Replace the JACE to accommodate the 2 southernunits on phase 2 and the Northern unit on phase 1. The JACE allows the BMS to interface with the HVAC components.

Tenant Improvements for Suite 155 - Rochester Ophthalmalogy, PLLC - Expansion into neighboring suite and addition of laser procedure rooms.

2nd floor elevator lobby renovations including new wood panelling, wall covering and wood accent trim. (partially completed and credit applied to future capital work)

Created a Spec Suite in suite 300 by updating the finishes with new flooring, millwork, wall covering, etc.

Upgrade the first floor corridor lighting to 3500 LED lay in light fixtures and LED can lighting.

Tenant Improvements for Suite 440 - Glaucoma Center of Michigan - Includes minor wall construction, new finishes, additional millwork, and significant electrical work.

Tenant improvements for Suite 325 - Hart Medical - New finishes

Minor construction in suite 230 for reoccupation and change of use including wall repair and finishes 17k tenant reimbursed

- Projections

2024 - Lobby renovations at South entrance including green wall, new wall covering, carpet, and furniture.

2024 - 1st Floor Corridor renovations including new wall covering, carpet, elevator carpet, painted ceilings, soffits and door frames, touch up of existing doors and back boards.

Tenant Improvements for the following: 305, 175, 240, 355, 330 Proforma, 210 Proforma

PermitDetails: PB-2007-0341

PropertyAddress: 1135WUNIVERSITYDR, ROCHESTERHILLS,MI48307-1871 | Parcel: 70-15-15-101-003

PropertyOwner: CRITTENTONHOSPITALMEDICALCENTER

SummaryInformation > 86Inspection(s)Found

PermitInformation

Number PB-2007-0341 Category Com,Addition

Type Building Status FINALED

AppliedDate 06/26/2007 ExpireDate 06/21/2009

IssueDate 10/03/2007 FinaledDate 02/04/2009

WorkDescription FOURSTORYMEDICALOFFICEBUILDINGADDITION(CORE&SHELL)@CRITTENTONHOSPITAL USEGROUP=BMBC-20003OCCUPANTLOAD(SPECULATIVE)=841

Stipulations 1.SEEATTACHEDSETOFPERMITCONDITIONS(3PAGES)OF09/15/07.2.ALLAPPROVALSARE SUBJECTTOFIELDINSPECTIONS.SECTION109OFMICHIGANBUILDINGCODE-2003(MBC-2003)

Project JCA2007-0003 Gotoproject

ProcessStepInformation

DocumentSummary

InspectionInformation

Permit-Building Total $0.00

Disapproved View

DECK GARYLUND Completed

PartiallyApproved View FOOTING TIMHOLLIS Completed 11/28/2007 11/28/2007 Disapproved View ROUGH GARYLUND Completed 3/24/2008 3/24/2008 Disapproved View FIREPROOFING GARYLUND Completed 3/14/2008 3/14/2008 Disapproved View

FOOTING GARYLUND Completed 11/27/2007 11/27/2007 PartiallyApproved View

FOOTING GARYLUND Completed 12/4/2007 12/4/2007 PartiallyApproved View

FOOTING GARYLUND Completed 12/28/2007 12/28/2007 PartiallyApproved View

FOOTING TIMHOLLIS Completed 11/28/2007 11/28/2007 PartiallyApproved View

FOOTING GARYLUND Completed 11/26/2007 11/26/2007 PartiallyApproved View

SLAB/METALDECK GARYLUND Completed 2/27/2008 2/27/2008 Approved View

FOOTING GARYLUND Completed 11/30/2007 11/30/2007 PartiallyApproved View

FOOTING GARYLUND Completed 11/29/2007 11/29/2007 PartiallyApproved View

SAND GARYLUND Completed 5/2/2008 5/2/2008 Approved View

ROUGH GARYLUND Completed 4/11/2008 4/11/2008 PartiallyApproved View

ROUGH GARYLUND Completed 5/9/2008 5/9/2008 PartiallyApproved View

ROUGH GARYLUND Completed 5/30/2008 5/30/2008 Disapproved View

STEEL GARYLUND Completed 5/22/2008 5/22/2008 Approved View

ROUGH GARYLUND Completed 3/27/2008 3/27/2008 PartiallyApproved View

ROUGHWALL GARYLUND Completed 4/25/2008 4/25/2008 Disapproved View

ROUGH GARYLUND Completed 5/14/2008 5/14/2008 PartiallyApproved View

ROUGH GARYLUND Completed 3/31/2008 3/31/2008 PartiallyApproved View

ROUGH GARYLUND Completed 4/4/2008 4/4/2008 PartiallyApproved View

ROUGH GARYLUND Completed 3/28/2008 3/28/2008 PartiallyApproved View

ROUGH GARYLUND Completed 3/25/2008 3/25/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/11/2008 6/11/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/12/2008 6/12/2008 PartiallyApproved View

ROUGH GARYLUND Completed 6/4/2008 6/4/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/5/2008 6/5/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/6/2008 6/6/2008 PartiallyApproved View

ROUGH GARYLUND Completed 6/10/2008 6/10/2008 PartiallyApproved View

FIRESAFING GARYLUND Completed 6/11/2008 6/11/2008 Disapproved View

ROUGH GARYLUND Completed 6/3/2008 6/3/2008 Disapproved View

SCREW GARYLUND Completed 6/13/2008 6/13/2008 PartiallyApproved View

ROUGH GARYLUND Completed 6/11/2008 6/11/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/3/2008 6/3/2008 Disapproved View

FIRESAFING GARYLUND Completed 6/18/2008 6/18/2008 Approved View

SCREW GARYLUND Completed 6/19/2008 6/19/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/17/2008 6/17/2008 PartiallyApproved View

ROUGH GARYLUND Completed 6/17/2008 6/17/2008 Disapproved View

SCREW GARYLUND Completed 6/16/2008 6/16/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/23/2008 6/23/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/24/2008 6/24/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/18/2008 6/18/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/25/2008 6/25/2008 PartiallyApproved View

ROUGH GARYLUND Completed 6/18/2008 6/18/2008 PartiallyApproved View

FIRESAFING GARYLUND Completed 6/17/2008 6/17/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/26/2008 6/26/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/20/2008 6/20/2008 PartiallyApproved View

SCREW GARYLUND Completed 6/27/2008 6/27/2008 PartiallyApproved View

ROUGH GARYLUND Completed 7/7/2008 7/7/2008 Approved View

SCREW GARYLUND Completed 7/11/2008 7/11/2008 PartiallyApproved View

ROUGH GARYLUND Completed 7/1/2008 7/1/2008 PartiallyApproved View OPENCEILING GARYLUND Completed 7/16/2008 7/16/2008 PartiallyApproved View

SCREW GARYLUND Completed 7/15/2008 7/15/2008 Approved View

DAMPEROPENINGS GARYLUND Completed 7/24/2008 7/24/2008 Disapproved View

SCREW GARYLUND Completed 7/2/2008 7/2/2008 PartiallyApproved View

SCREW GARYLUND Completed 7/1/2008 7/1/2008 PartiallyApproved View OPENCEILING GARYLUND Completed 7/18/2008 7/18/2008 PartiallyApproved View

ROUGH GARYLUND Completed 7/2/2008 7/2/2008 PartiallyApproved View

SCREW GARYLUND Completed 7/7/2008 7/7/2008 PartiallyApproved View

LUND Completed 8/13/2008 8/13/2008 Disapproved View

DAMPEROPENINGS GARYLUND Completed 7/29/2008 7/29/2008 PartiallyApproved View SITE MARKMCLOCKLIN Completed 8/8/2008 8/8/2008 Disapproved View OPENCEILING GARYLUND Completed 8/1/2008 8/1/2008 Approved View PROGRESSCHECK GARYLUND Completed 8/29/2008 8/29/2008 PartiallyApproved View FINAL GARYLUND Completed 8/14/2008 8/14/2008 Disapproved View

DAMPEROPENINGS GARYLUND Completed 8/1/2008 8/1/2008 Approved View FINAL GARYLUND Completed 8/11/2008 8/11/2008 Disapproved View

PRELIMFINAL GARYLUND Completed 8/6/2008 8/6/2008 Disapproved View SITE MARKMCLOCKLIN Completed 7/25/2008 7/25/2008 Disapproved View

FOOTING TIMHOLLIS Canceled 9/10/2008 9/10/2008 Canceled View SITE MARKMCLOCKLIN Completed 9/12/2008 9/17/2008 Approved View

GARYLUND Completed 9/11/2008 9/11/2008 Disapproved View

GARYLUND Completed

[CollapseAll] ScheduleNewInspection Violations

APPROVALFORFOUINDATIONSALONGCOLUMNLINE3FROMWTOV.5ANDALONGCOLUMNLINEWFROM2.5TO3.

SUPERVISERWANTEDMETOCHECKSITEAFTERHEARINGABOUTACONSTRUCTIONINCIDENT.ITAPPEARSANCHORBOLTSHAVEBEENBROKENOFFAT COLUMNBASEPLATESONCOLUMNSS-2&T-2.COLUMNPADFOOTINGSARETOBEREPLACEDPERJOBSUPERINTENDANT.ITOOK9PICTURESONSITE. PHOTOSWERETHENFILED.

METALSTUDSATEXTERIORBRICKFRAMES2ND&3RDLEVELS.COMPLETEPROPERATTACHMENTOFSTUDS.

WESTSIDEBEAMS&COLUMNSONLYATTHISTIME.1-PROVIDEREMAINDEROFSTEELREPORTS.2-PROVIDEFINALSTEELREPORT.3-PROVIDEFABRICATORS SHOPCERTIFICATES.4-PROVIDECOMPLETEDFIREPROOFINGSUBMITTALSHEET.5-PROVIDEFIREPROOFINGINSPECTIONREPORTS.NOTE:RECEIVED COMPLETEDFIREPROOFINGSUBMITTALSHEETS.ALSORECEIVEDFIREPROOFINGINSPECTIONREPORTFORWESTSIDEBEAMS&COLUMNSEXTERIORSIDE.

SECONDLEVELONLYSHAFTS.1-PROPERLYSEALPIPEPENITRATIONSONINSIDEOFMECHANICALSHAFTPRIORTOCLOSINGINFORINSPECTION.2-SCREW STAIRWELLSHAFTATWESTENDWHEREMISSINGSCREWS.3-INSTALLDRYWALLINBETWEENSTUDSATLANDING&STAIRSTRINGERONNORTHSIDE.

METWITHARCHITECT&SUPERINTENDENTABOUTRATEDCONSTRUCTIONISSUESTHATNEEDTOBERESOLVED.

PROPERLYINSTALLFIRESAFINGATCURTAINWALLNORTHENDBETWEENFLOORSANDSOUTHENDBETWEENGLASSANDFLOOR.ALSONORTHEAST CORNERATCOLUMN.

-Completed

MECHANICALSHAFTSANDELEVATORSHAFTON3RD&4THLEVELS.1-FRAMINGOKEXCEPTFORACCESSLEFTOPENTOVIEWINSIDEOFSHAFT&3SIDES OFELEVATORCOMPLETE,(NOTEASTSIDEWITHDOOR).2-ONROOFLEVELRATEDWALLSARETURMINATEDATSTEELBEAMSINMANYPLACES.BEAMSARE NOTRATEDINTHESEAREAS.(RESOLVE). BycontinuingtousethiswebsiteyouagreetotheBS&AOnlineTermsofUse ��

MECHANICALSHAFTONSECONDLEVEL.1-ELECTRICALCONDUITPENITRATIONNOTPERPENITRATIONDETAIL.CHANGEPENITRATIONORPROVIDEDETAIL THATMATCHESPENITRATIONUSED.2-PROPERLYSCREW1STLAYERPERSPACINGREQUIREDATSECONDLEVEL3SIDESOFMECHANICALSHAFT.

1STLEVELMETALSTUDFRAMINGOKEXCEPT:1-ELEVATORMACHINEROOMWALLISNOTBUILTBETWEENELEVATORANDDOORTOMACHINEROOM.2-1ST LEVELPLANSINDICATERATEDSHAFTWALLWESTOFELEVATORMACHINEROOM.THISADDITIONALWALLISMETALSTUDC-4TYPECONSTRUCTION.

1ST,2ND&3RDLEVELSNORTHCORRIDORHARDCEILINGFRAMING.ALSOFRONTVESTIBULEON1STLEVEL.ALLPENDINGROUGHFIREALARMAPPROVAL.

ANGLESNOTREMOVEDFROM4THFLOORSHAFTEXCESSIVEGAPSFOR11/2"ANGLESONSOMEDAMPERS.

1-PROVIDEITEMSLISTEDONTHEDEFERREDDOCUMENTSSTATEMENTASINDICATEDONTHESTATEMENT.SOMEOFTHEITEMSMUSTBESUBMITTEDTO THEBUILDINGDEPTANDAPPROVED.PROVIDEAPPROVEDDOCUMENTSONSITE.2-CANOPYCONSTRUCTIONHASNOTYETSTARTEDATEASTENTRANCE.3PROVIDEELEVATORAPPROVALFROMTHESTATE.NOTE:TEMPSIGNAGEISINSTALLEDONELEVATORDOOR"NOTINUSE".4-NEEDENGINEERINGDEPT APPROVAL.5-NEEDSITEINSPECTIONAPPROVALBYORDINANCEOFFICER.6-NEEDTOVERIFYGENERATORBACKUPPOWERFORELEVATORUSEASTHE ACCESSIBLEMEANSOFEGRESS.7-TEMPTHRESHOLDINSTALLEDBETWEENNEW&EXISTINGBUILDINGSON2ND,3RD&4THFLOORS.INSPECTIONIS REQUIREDONPERMENANTTHRESHOLDINSTALLATIONINACCORDANCEWITHTHEAPPROVEDPLANS.8-RATEDDOORNOTCLOSINGPROPERLYAT EXISTINGSTAIRWELLROOFLEVEL.9-COMPLETEFRAMING,SHEATHING&INSULATIONUPTODOORFRAMETOCOVERBRICKVENEERATROOFACCESS DOORAREA.

10-NORTHWESTCORNEROFTHIRD&FOURTHFLOORFIRESAFING&INTEMESCENTSPRAYISNOTINSTALLEDPROPERLYATCORNERCOLUMNS.11EMERGENCYLIGHTINGNOTWORKINGPROPERLYONTHIRDFLOORCORRIDOR,FIRSTFLOORRECEIVINGROOM&EXTERIORSIDEOFRECEIVING,MISSING EMERGENCYLIGHTINGINSIDE&OUTSIDEOFSOUTHENTRANCEDOORANDEASTCORRIDORLIGHTNOTPROPERLYLOCATED.NEEDITEMS#4&11ON THISLISTFORTCOATSUITE250.KELLYMUSTCONFIRMOTHERTRADEANDINSPECTIONAPPROVALSBYOTHERS.

REVISEDDRAWINGSMUSTBESUBMITTEDTOTHEPLANNINGDEPARTMENTFORHANDICAPRAMPANDSIDEWALKNOTINSTALLEDATTHEENTRANCETO HANDICAPPARKINGLOTANDTWOSTEPSINSTALLEDONTHEWESTSIDEPARKINGLOTNOTONAPPROVEDSITEPLAN.8/13/08-RECEIVEDREPORTFROM FIREDEPARTMENT.FIRELANESIGNSREQUIREDINNEWPARKINGAREA.KW

1-PROVIDEITEMLISTEDONTHEDEFERREDDOCUMENTSSTATEMENTASINDICATEDONTHESTATEMENT.(MISSINGELEVATORAFFIDAVIT).2-CANOPY CONSTRUCTIONHASNOTYETSTARTEDATEASTENTRANCE.3-PROVIDEELEVATORAPPROVALFROMTHESTATE.NOTE:TEMPSIGNAGEISINSTALLEDON ELEVATORDOOR"NOTINUSE".4-NEEDENGINEERINGFULLAPPROVAL.5-NEEDSITEINSPECTIONAPPROVALBYORDINANCEOFFICER.6-NEEDTOVERIFY GENERATORBACKUPPOWERFORELEVATORUSEASTHEACCESSIBLEMEANSOFEGRESS.7-TEMPTHRESHOLDINSTALLEDBETWEENNEW&EXISTING BUILDINGSON2ND,3RD&4THFLOORS.INSPECTIONISREQUIREDONPERMENANTTHRESHOLDINSTALLATIONINACCORDANCEWITHTHEAPPROVED PLANS.8-RATEDDOORNOTCLOSINGPROPERLYATEXISTINGSTAIRWELLROOFLEVEL.9-COMPLETEFRAMING,SHEATHING&INSULATIONUPTODOOR FRAMETOCOVERBRICKVENEERATROOFACCESSDOORAREA.

10-NORTHWESTCORNEROFTHIRD&FOURTHFLOORFIRESAFING&INTEMESCENTSPRAYISNOTINSTALLEDPROPERLYATCORNERCOLUMNS.11EMERGENCYLIGHTINGNOTINSTALLEDPERPHOTOMETRICSDRAWINGS.MICHAELCALLAHANFROMSESSAIDHEWILLSUBMITREVISEDPHOTOMETRICS FORCHANGES.KELLYMUSTCONFIRMOTHERTRADEANDINSPECTIONAPPROVALSBYOTHERS.

1-PROVIDEITEMSLISTEDONTHEDEFERREDDOCUMENTSSTATEMENTASINDICATEDONTHESTATEMENT.SOMEOFTHEITEMSMUSTBESUBMITTEDTO THEBUILDINGDEPTANDAPPROVED.PROVIDEAPPROVEDDOCUMENTSONSITE.2-CANOPYCONSTRUCTIONHASNOTYETSTARTEDATEASTENTRANCE.3PROVIDEELEVATORAPPROVALFROMTHESTATE.NOTE:IFELEVATORISNOTREADYFORUSEATTIMEOFTCOTHENPROPERSIGNAGESHALLBEINSTALLED STATINGTHISELEVATORISNOTINUSE.4-PROVIDESIGNAGEATALLDOORSLEADINGTOAREASWHERECONSTRUCTIONHASNOTBEENCOMPLETED. "CONSTRUCTIONAREADONOTENTER".5-NEEDENGINEERINGDEPTAPPROVAL.6-NEEDSITEINSPECTIONAPPROVALBYORDINANCEOFFICER.7-CHECK CLOSINGSPEEDONALLDOORSWITHCLOSERS.MINIMUM5SECONDSFROM90DEGREESTOTHE12DEGREEPOSITION.8-PROVIDEPHOTOMETRICSPLANS FOREMERGENCYLIGHTINGAPPROVEDBYTHEBUILDINGDEPARTMENTPERDEFERREDDOCUMENTSSTATEMENTFORINSPECTIONONEMERGENCYLIGHT LOCATIONS.ALSONEEDTOCHECKEMERGENCYLIGHTOPERATIONS.

BycontinuingtousethiswebsiteyouagreetotheBS&AOnlineTermsofUse ��

9-DOORB112CANNOTLOCKAGAINSTEGRESS.10-NEEDTOVERIFYGENERATORBACKUPPOWERFORELEVATORUSEASTHEACCESSIBLEMEANSOF EGRESS.11-RATEDACCESSDOORSINRATEDCEILINGATEXISTINGSTAIRWELLONFIRSTLEVELMUSTBESELFCLOSING.12-PROVIDEUPTODATESERVICE TAGSONALLFIREEXTINGUSHERS.13-COMPLETEFIRESTOPTOEXTERIORWALLSHEATHINGBELOWWINDOWATNORTHSIDEOFCORRIDORA105.14INSTALLTACTILEEXITSIGNSPERLOCATIONSONAPPROVEDPLANS.MOUNTEDONWALLADJACENTTODOORBETWEEN48"-60"INHEIGHT.15-FIRESTOP

LANDINGSUPPORTPENITRATIONSINSTAIRWELLWALLONINSIDEOFSTAIRWELLALLLEVELS.16-EXCESSIVEOPENINGFORCEONDOORTOSTAIRWELLON 4THFLOOR.17-EXCESSIVETHRESHOLDHEIGHT(FLOORELEVATIONCHANGE)BETWEENNEW&EXISTINGBUILDINGON4TH,3RD,2NDLEVELS.18-DOOR NOTCLOSINGPROPERLYATEXISTINGSTAIRWELLON4THFLOORANDROOFLEVEL.19-COMPLETEFRAMING,SHEATHING&INSULATIONUPTODOOR FRAMETOCOVERBRICKVENEER.

20-NORTHWESTCORNEROFTHIRD&FORTHFLOORFIRESAFINGANDINTEMESCENTSPRAYISNOTINSTALLEDPROPERLYATCORNERCOLUMNS.21PROVIDEDOCUMENTATIONINDICATINGWHATTHEHOURLYRATINGISFORRATEDDOORFRAMESTHATDONOTINDICATEWHATTHEHOURLYRATINGIS. CHECKALLRATEDDOORFRAMES.22-SEALPENITRATIONSINRATEDWALLSTOEXISTINGMECHANICALROOM.

DIDAPRELIMINARYWALKTHROUGHPRIORTOFINALBUILDINGINSPECTIONTOHELPSUPERINTENDANTPREPAREFORTHEFINALBUILDINGINSPECTION. MANYISSUESNEEDTOBEADDRESSED.

1-PROVIDEELEVATORAFFIDAVITPERDEFFERREDDOCUMENTSSTATEMENT.2-NEEDENGINEERINGFULLAPPROVAL.

1-PROVIDEELEVATORAFFIDAVITPERDEFERREDDOCUMENTSSTATEMENT.2-CANOPYCONSTRUCTIONHASNOTBEENCOMPLETEDATEASTENTRANCE.3PROVIDEELEVATORAPPROVALFROMTHESTATE.NOTE:TEMPSIGNAGEISINSTALLEDONELEVATORDOOR"NOTINUSE".4-NEEDENGINEERINGFULL APPROVAL.5-NEEDSITEINSPECTIONAPPROVALBYORDINANCE.6-NEEDTOVERIFYGENERATORBACKUPFORELEVATORUSEASTHEACCESSIBLEMEANSOF EGRESS.NOTE:ITEMS#3,5,6HAVEBEENRESOLVED11-13-08GL.STILLNEEDITEMS#1,2,4COMPLETED.ALSONOTE:ALLSPECIALINSPECTIONREPORTSBY SMEHAVEBEENRECEIVED.11-13-08GL.

Address KIRCOCONSTRUCTION

101WBIGBEAVER TROY,MI48084

Phone No Data to Display Fax

OwnerInformation

Address CRITTENTONHOSPITAL MEDICALCE 1101WUNIVERSITYDR ROCHESTERHILLS,MI483071863

Phone No Data to Display Fax

LicenseeInformation

Address KIRCOCONSTRUCTION 101WBIGBEAVERSUITE200 TROY,MI48084

Phone No Data to Display Fax

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Copyright©2024BS&ASoftware,Inc.

RECORD OF INTERVIEW

For interviews with site owner/occupant/manager, municipal offices, fire department, city assessor, building department, health department, utilities, regulatory staff

Date: February 19, 2024

Conducted by: Michael Bensing

Talked with: Mr. Marc Kimmerly

Job Number: 18926F-2-196

Owner: Crittenton Hospital Medical Center

Of: SK Medical Management

Location of interview: On-site Telephone Municipal Offices

Main subject of interview Not sure about the dates, but thinks that the North Building was constructed in the 1980s and the South Building around 2007.

- Not aware of any building code or fire code violations.

- The City of Rochester Hills provides water and sewer utilities.

- DTE provides electric power.

- Consumers Power provides natural gas.

- Oakland County provides storm water services.

- GFL provides waste and recycling services.

- About 60% of the bathrooms are the older style (non-ADA compliant sink drain pipes)

NationalFloodHazardLayerFIRMette

OTHERAREASOF FLOODHAZARD

0.2%AnnualChanceFloodHazard,Areas of1%annualchancefloodwithaverage depthlessthanonefootorwithdrainage areasoflessthanonesquaremile

Channel,Culvert,orStormSewer Levee,Dike,orFloodwall

BaseFloodElevationLine(BFE)

Transect CoastalTransectBaseline ProfileBaseline

HydrographicFeature

Thepindisplayedonthemapisanapproximate pointselectedbytheuseranddoesnotrepresent anauthoritativepropertylocation.

ThismapcomplieswithFEMA'sstandardsfortheuseof digitalfloodmapsifitisnotvoidasdescribedbelow. ThebasemapshowncomplieswithFEMA'sbasemap accuracystandards

Thefloodhazardinformationisderiveddirectlyfromthe authoritativeNFHLwebservicesprovidedbyFEMA.Thismap wasexportedon2/16/2024at1:19PManddoesnot reflectchangesoramendmentssubsequenttothisdateand time.TheNFHLandeffectiveinformationmaychangeor becomesupersededbynewdataovertime.

Thismapimageisvoidiftheoneormoreofthefollowingmap elementsdonotappear:basemapimagery,floodzonelabels, legend,scalebar,mapcreationdate,communityidentifiers, FIRMpanelnumber,andFIRMeffectivedate.Mapimagesfor unmappedandunmodernizedareascannotbeusedfor regulatorypurposes.

Appendix D:

Pre-Survey Questionnaires

USER

User Name: Facility Name: Former Critendon Medical Office Building

Contact:

Address:

Telephone No.:

e-mail:

Contact: Marc Kimmerly

Address: 1135 West University Drive

Rochester Hills, Michigan 48307

Telephone No.: (248) 515-4218

e-mail: MarcKimmerly@SKMedicalManagement.com

1. Is information readily available regarding historical facility repairs and replacements?

Yes X No

If yes, is information available regarding the costs associated with those repairs and replacements? Please provide. See attached Project Reports spreadsheet.

2. Is information readily available regarding the level of preventive maintenance exercised?

Yes X No

If yes, is information available regarding the level of preventive maintenance exercised? Please provide. See attached PM contracts for HVAC, Generator, Fire and Life Safety

3. Is information readily available regarding pending repairs and improvements?

Yes X No

If yes, is information available regarding the pending repairs and improvements? Please provide. See attached project reports spreadsheet.

4. Is information readily available regarding the frequency of repairs and improvements?

Yes X No

If yes, is information available regarding the frequency of repairs and improvements? Please provide. See attached project reports spreadsheet and preventative maintenance contracts.

Property Condition Assessment

5. Is information readily available regarding the existence of ongoing or pending litigation related to the subject property’s physical condition?

Yes No X – N/A

If yes, is information available regarding the existence of ongoing or pending litigation related to the subject property’s physical condition? Please provide.

6. Are any of the following documents available from the user, owner, or owner’s representative? If so, please provide copies for review.

Yes No Provided

Current or previous Property Appraisal X

Certificate of Occupancy X

Safety Inspection Records X PM and compliance

Warranty Information (roofs, boilers, chillers, cooling towers) X Roof, boilers and RTU

Age of Materials Records (roofing, paving, plumbing, HVAC, electrical) X Historical Costs for Repairs, Improvements, Recurring Replacements

Proposals/Contracts for Planned Work X

Outstanding Fire or Zoning Violations X N/A

ADA Survey and Status of Compliance Improvements

Previous Property Condition Report

Records of Building Occupancy Percentage X

Records indicating Building Turnover Percentage

Building Rent Roll X

Leasing Literature X Drawings and Specifications

Completed by:

Name: Marc Kimmerly

Title: Property Manager/Agent for Owner

Company: SK Medical

Management

Date: 2/16/24

Appendix

Acronyms and Out-Of-Scope Items

Abbreviations and Acronyms

This report may use various construction abbreviations to describe various site, building or system components. Not all abbreviations may be applicable to all reports. The abbreviations most often utilized are defined below.

ADA – The Americans with Disabilities Act

ASTM – ASTM International

BOMA – Building Owners and Managers Association

BUR – Built-up Roofing

EIFS – Exterior Insulation and Finish System

EMF – Electro Magnetic Fields

EMS – Energy Management System

EUL – Expected Useful Life

FEMA – Federal Emergency Management Agency

FFHA – Federal Fair Housing Act

FIRMS – Flood Insurance Rate Maps

FOIA – U.S. Freedom of Information Act (5 USC 552 et seq.) and similar state statues

FOIL – Freedom of Information Letter

FM – Factory Mutual

HVAC – Heating, Ventilating, and Air Conditioning

IAQ – Indoor Air Quality

NFPA – National Fire Protection Association

PCA – Property Condition Assessment

PCR – Property Condition Report

PML – Probable Maximum Loss

RTU – Rooftop Unit

RUL – Remaining Useful Life

STC – Sound Transmission Class

Ref #

Out of Scope Considerations

Unless identified in the scope of work detailed in this report, these items are excluded and are considered outside the scope of this PCA / PNA.

Section 11 : ASTM E 2018-15 Out of Scope Considerations

11.1 Activity Exclusions The activities listed below generally are excluded from or otherwise represent limitations to the scope of a PCA prepared in accordance with this guide. These should not be construed as all-inclusive or imply that any exclusion not specifically identified is a PCA requirement under this guide.

11.1.1 Identifying capital improvements, enhancements, or upgrades to building components, systems, or finishes. The consultant must be aware of the distinction between repair and replacement activities that maintain the property in its intended design condition, versus actions that improve or reposition the property.

11.1.2 Identifying improvements, capital expenditures, repairs, maintenance and other activities that are or may be required at a future date, except as needed in the review of short term and long term needs.

11.1.3 Removing, relocating, or repositioning of materials, ceiling, wall, or equipment panels, furniture, storage containers, personal effects, debris material or finishes; conducting exploratory probing or testing; dismantling or operating of equipment or appliances; or disturbing personal items or property, that obstructs access or visibility.

11.1.4 Determining adequate pressure and flow rate, fixture-unit values and counts, verifying pipe sizes, or verifying the point of discharge for underground drains.

11.1.5 Determining NFPA hazard classifications, identifying, classifying, or testing fire rating of assemblies. Determination of the necessity for or the presence of fire areas, fire walls, fire barriers, accessible routes, construction groups or types, or use classifications.

11.1.6 Preparing engineering calculations (civil, structural, mechanical, electrical, etc.) to determine any system’s, component’s, or equipment’s adequacy or compliance with any specific or commonly accepted design requirements or building codes, or preparing designs or specifications to remedy any physical deficiency.

11.1.7 Taking measurements or quantities to establish or confirm any information or representations provided by the owner or user, such as size and dimensions of the subject property or subject building; any legal encumbrances, such as easements; dwelling unit count and mix; building property line setbacks or elevations; number and size of parking spaces; etc.

11.1.8 Reporting on the presence or absence of pests such as wood damaging organisms, rodents, or insects.

11.1.9 Reporting on the condition of subterranean conditions, such as soil types and conditions, underground utilities, separate sewage disposal systems, wells, manholes, utility pits; systems that are either considered process-related or peculiar to a specific tenancy or use; or items or systems that are not permanently installed.

11.1.10 Entering or accessing any area of the premises deemed to potentially pose a threat of dangerous or adverse conditions with respect to the field observer’s health or safety, including, but not limited to: entering of plenum, crawl, or confined-space areas, entering elevator/escalator pits or shafts, walking on pitched roofs, or any roof areas that appear to be unsafe, or roofs without built-in access, and removing of electrical panel and device covers.

11.1.11 Performing any procedure, that may damage or impair the physical integrity of the property, any system, or component.

11.1.12 Providing an opinion on the condition of any system or component, that is shutdown. However, the consultant is to provide an opinion of its physical condition to the extent

reasonably possible considering its age, obvious condition, manufacturer, etc.

11.1.13 Evaluating the Sound Transmission Class or acoustical or insulating characteristics of systems or components.

11.1.14 Evaluating the flammability of materials and related regulations.

11.1.15 Providing an opinion on matters regarding security of the subject property and protection of its occupants or users from unauthorized access.

11.1.16 Operating or witnessing the operation of lighting, lawn irrigation, or other systems typically controlled by time clocks or that are normally operated by the building’s operation staff or service companies.

11.1.17 Providing an environmental assessment or opinion on the presence of any environmental issues such as potable water quality, asbestos, hazardous wastes, toxic materials, the location or presence of designated wetlands, mold, fungus, IAQ, etc.

11.1.18 Providing an environmental assessment or opinion on the presence of any environmental issues such as potable water quality, asbestos, hazardous wastes, toxic materials, the location or presence of designated wetlands, mold, fungus, IAQ, etc.

11.1.19 Evaluating systems or components that require specialized knowledge or equipment, including but not limited to: flue connections, interiors of chimneys, flues or boiler stacks; electromagnetic fields, electrical testing and operating of any electrical devices; examination of elevator and escalator cables, sheaves, controllers, motors, inspection tags; or tenant owned or maintained equipment.

11.1.20 Process related equipment or condition of tenant owned/maintained equipment. Entering of plenum or confined space areas. Testing or measurements of equipment or air flow.

11.1.21 Observation of flue connections, interiors of chimneys, flues or boiler stacks, or tenant-owned or maintained equipment. Entering of plenum or confined space areas.

11.2 Warranty, Guarantee, and Code Compliance Exclusions By conducting a PCA and preparing a PCR, the consultant merely is providing an opinion and does not warrant or guarantee the present or future condition of the subject property, nor may the PCA be construed as either a warranty or guarantee of any of the following:

11.2.1 Any system’s or component’s physical condition or use, nor is a PCA to be construed as substituting for any system’s or equipment’s warranty transfer inspection;

11.2.2 Compliance with any federal, state, or local statute, ordinance, rule or regulation including, but not limited to, fire and building codes, life safety codes, environmental regulations, health codes, zoning ordinances, compliance with trade/design standards, or standards developed by the insurance industry.

11.2.3 Compliance of any material, equipment, or system with any certification or actuation rate program, vendor’s or manufacturer’s warranty provisions, or provisions established by any standards that are related to insurance industry acceptance/approval, such as FM, State Board of Fire Underwriters, etc.

11.3 Additional/General Considerations:

11.3.1 Further Inquiry There may be physical condition issues or certain physical improvements at the subject property that the parties may wish to assess in connection with a commercial real estate transaction that are outside the scope of this guide. Such issues are referred to as nonscope considerations, and if included in the PCR, should be identified under Section 10.9.

11.3.2 Out of Scope Considerations Whether or not a user elects to inquire into non-scope considerations in connection with this guide is a decision to be made by the user. No assessment of such non-scope considerations is required for a PCA to be conducted in compliance with this guide.

11.3.3 Other Standards Other standards or protocols may exist for the discovery or assessment of physical deficiencies. Such standards and protocols are expressly excluded from the scope of the assessment unless otherwise agreed between the User and Consultant.

Appendix F: Personnel Resumes

Michael J. Bensing

Pr oject Manager / Construction Consultant

Mr. Bensing has over 30 years of experience in construction management, environmental due diligence, site remediation, property condition assessments, and indoor air quality projects throughout United States and Canada.

EDUCATION

BS: Civil Engineering, 1981 / Marquette University, Milwaukee, Wisconsin

CERTIFICATIONS

Professional Engineer / State of Wisconsin, State of Pennsylvania, State of New Jersey, Province of Ontario

Hazardous Waste Operations and Emergency Response / OSHA 29 CFR 1910.120-40 Hour

Hazardous Waste Operations and Emergency Response / Site Supervisor

EXPERIENCE

Project Manager / Construction Consultant

AKT Peerless Environmental and Energy Services (current)

Project Manager

Somat Engineering, Inc.

Environmental Engineering Department Manager

D.M. Wills Associates Ltd.

Operations Manager

Pinchin Ltd.

Team Lead/Senior Engineer

Tetra Tech EBA, Inc.

Senior Project Manager

Stantec Consulting

Owner

Bensing Environmental Services

SKILLS

Completion of Phase I Environmental Site Assessments to meet or exceed ASTM standards

Direct Phase II Subsurface Investigations

Preparation of bid documents for large scale remediation projects

Large scale remediation project oversite

Industrial permitting

Waste management

Environmental compliance auditing

Storm Water Management

Liaison with regulatory agencies

Conducting Property Condition Evaluations

Hazardous materials surveys, including asbestos, lead paint, PCBs, and mercury.

Mr. Lambdin has over 30 years of experience in environmental due diligence, site remediation, property condition assessments, and indoor air quality including in-house support for the electric generation and banking industries.

EDUCATION

BS: Agriculture, 1980

Michigan State University, East Lansing, MI

PROFESSIONAL EXPERIENCE

Director of Operations

AKT Peerless Environmental & Energy Services

Product Quality Leader

Atwell-Hick Land Development Consultants

Group Leader

Atwell-Hick Land Development Consultants

Environmental Affairs Specialist

National Bank of Detroit

Project Manager

BCM Engineers

Assistant Test Engineer

Public Service Electric & Gas

Robert W. Lambdin

Director of Operations

CERTIFICATIONS

Hazardous Waste Operations and Emergency Response 1990

Hazardous Waste Operations and Emergency Response Site Supervisor 1992

NIOSH 582 Equivalent

Risk Based Corrective Action ASTM ES38-94, 1995

AREA OF EXPERTISE

Management of projects including underground storage tanks, real estate transaction audits, property condition assessments, baseline environmental site assessments (Michigan), subsurface investigations, site remediation, hazardous and non-hazardous waste disposal, facility environmental compliance, business development, cost proposal estimates, quality assurance; staff mentoring for company standards and practices, mold, asbestos, staff training; development and implementation of standard operating guidelines; evaluation of new technologies, procedures and practices, implementation of new technologies and services, business development, corporate risk management.

With over 30 years of technical experience in the environmental, nuclear, and banking industries. He has conducted numerous investigations of properties for real estate transfers, been involved with the closure of over 100 underground storage tanks, and conducted asbestos or mold inspections on almost 200 buildings.

a better environment for your business.

SUMMARY OF SELECTED PROJECTS

Managed the environmental affairs program for Michigan’s largest bank.

Managed and coordinated a large-scale in-situ bioremediation project involving several acres of gasoline contaminated groundwater.

Designed and fabricated specialized equipment for high volume air sample collection including traceable accurate flow metering and computer assisted critical analysis of sampled air.

Project management during a large-scale polychlorinated biphenyl remediation at a transformer substation.

Coordinated and participated in property condition assessments of the building portfolio of a major religious organization

Developed and implemented a demonstration program for automated air pollution control technology providing real time analysis of fugitive dust emissions and ambient air monitoring.

Managed the permanent closure of approximately 100 petroleum storage tanks for private clients, an automotive research center, and for a major Michigan bank.

Conducted asbestos surveys on 200 commercial, industrial and residential properties as well as several large hospitals.

Managed and coordinated a remediation projects involving petroleum product contaminated soil and groundwater.

Personally conducted and coordinated numerous environmental subsurface soil investigations.

Air monitoring at residential buildings, commercial buildings, and schools during asbestos abatement projects.

Indoor and ambient air quality analyses for organic and semivolatile organic compounds and fugitive dust emissions.

Coordination of an underground storage tank management program for an automotive research and development center.

Performed hundreds of environmental evaluations for real estate property transfers.

Interaction with state and federal environmental regulatory agencies for site remediation and disposal projects.

Conducted environmental compliance audits for automotive research facilities, industrial sites, and retail product distribution centers.

Emergency Planning and Community Right to Know programs for automotive research facilities, industrial sites, and retail product distribution centers.

Specialized training for spill plans, asbestos, and hazardous waste contingency planning.

Generation of various state and federally mandated spill prevention, control and countermeasure plans for industrial sites, petroleum marketers, automotive facilities, and retail distribution centers.

Environmental compliance management and assessments for automotive research and development and industrial facilities.

Coordinated the polychlorinated biphenyl management program for an automobile manufacturer including a spill remediation at an electrical transformer substation.

Participated in the environmental support for fossil fuel and nuclear powered electrical generation facilities.

Coordinated health and safety issues pertaining to environmental projects.

Conducted mold evaluations for various commercial and residential properties.