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June 13, 2012

Due Diligence 101: The A-to-Z of 3rd-Party Reports

By Partner ESI

The Battery of Third-Party Due Diligence Reports Can Be a Lot to Digest for Many Involved in CRE Transactions

The battery of 3rd-party due diligence reports can be a lot to digest for many involved in commercial real estate transactions. The reports are a veritable alphabet soup: ESA, PCA, PML, ALTA… the acronyms go on and on! Especially for those new to reviewing these reports, it’s enough to cause a headache. We get a lot of questions such as:

  • I know what the property use is now; why do I need a Phase I Environmental Site Assessment? Why should I worry about what the property was 50 years ago?
  • What happens if the Phase I ESA finds something at the property?
  • What does a Property Condition Report cover that an appraisal does not? How does the information impact my deal?
  • When do I need to think about seismic risk?
  • What do I really need to look for in an ALTA Survey or Title Review?
  • I know what the property is zoned as; why do I need a Zoning Report?

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About the Authors

Partner ESI

Partner ESI

Founded in 2007, Partner Engineering and Science Inc., is the leading provider of engineering, environmental, energy, and construction consulting for the commercial real estate (CRE) industry. Touching 1 in 5 CRE transactions in the U.S., Partner is widely recognized as the largest and best provider of third-party physical due diligence reports, including Phase I Environmental Site Assessments, Property Condition Assessments, Seismic Risk Assessments, Zoning Reports, ALTA Land Title Surveys, and Construction Risk Management. Partner’s connectedness to the CRE market gives it an unparalleled view into CRE trends and risk management insights. Partner also provides a full suite of consulting services to support the entire real estate lifecycle, including: Geotechnical Consulting; Building Systems Consulting; Capital Management and Project Implementation Support; Environmental Health & Safety Consulting; Energy, Sustainability & Resilience Consulting; and Site Civil Engineering. With a responsive approach scaled for speed and agility, Partner helps clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies. Based in Torrance, Calif., Partner has over 1,400 employees in 40 offices around the globe.

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