Commercial Real Estate Due Diligence
Property investigation and evaluation to mitigate risks and maximize returns.
We Are A Certified B Corp™
Using Business as a Force for Good.
Due diligence is a critical process in commercial real estate investment throughout all stages of the ownership cycle. Nova provides due diligence services to assess the condition, potential risks, and financial viability of commercial properties.
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Environmental Site Assessments
In commercial real estate due diligence, Environmental Site Assessments (ESA) identify possible or existing environmental contamination to determine whether the property presents a liability risk.
ESAs are essential for identifying environmental risk, following regulatory compliance, and assessing financial implications.
What’s Involved?
ESAs help to identify the existence and scope of soil or groundwater contamination (e.g., from petroleum, heavy metals, pesticides, or herbicides), as well as the presence in buildings of products such as asbestos, lead-based paint, or mold.
Assessments follow a three-phased approach, typically including the following:
Review of topographic/geological/hydrogeologic information about the site and surrounding area
Review of historical land use activities at the site
Review of regulatory information
Site reconnaissance
Surrounding property observation
Property Condition Assessments
Nova provides Property Condition Assessments (PCA) for mortgage and construction lenders across the country. Our services are provided for multifamily residential, commercial, hospitality, new construction, and industrial properties.
The completed PCA determines the present physical condition of the property and provides a professional opinion on any future anticipated recommendations.
What’s Involved?
A site visit to evaluate the general condition and maintenance history of the property, and an assessment of the overall design and construction.
A review of all available on-site project and construction documentation.
Interviews with property managers, tenants, and local officials.
Third-party review of reports, reserve tables, and property evaluations to determine if the findings and recommendations are logical and follow ASTM and lender standards.
Assessments typically include:
Items of deferred maintenance
Estimates of immediate and annual replacement reserves
Comments on the building’s conformance with code, ADA, unfinished work, and FHA compliance
Acquisition Level Due Diligence
In the context of pre-acquisition due diligence, Nova acknowledges the variance in buyers' risk tolerances. Within its Equity Markets Group, Nova extends its due diligence services beyond the baseline standard established by the ASTM.
Our group's experienced architects, engineers, construction specialists, and certified roof and building envelope professionals provide expanded assessments of building structure, enclosure systems, internal operating, and life safety systems. We operate with the mindset that meeting client expectations first requires an understanding of the expanded assessments that are most appropriate.
All due diligence reports are well documented with photographs and include Opinions of Probable Costs to determine financial feasibility.
Environmental Site Assessments
Property Condition Assessments
Senior Vice President, Capital Markets Group Leader
Ray Hutchison
Contact
Acquisition Level Due Diligence
Vice President, Equity Group Leader
Russell (Rusty) Gordon
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