SAMPLE OFFICE BUILDING by huanghengdong

VIEWS: 17 PAGES: 73

									 PROPERTY CONDITION SURVEY
             and
CAPITAL REPLACEMENT ANALYSIS




SAMPLE OFFICE BUILDING

        Atlanta, Georgia
 PROPERTY CONDITION SURVEY
             and
CAPITAL REPLACEMENT ANALYSIS



SAMPLE OFFICE BUILDING

           Atlanta, Georgia




             Prepared for:

   Best Real Estate Advisors LLC
              WSI 3663


            June 27, 2007
                           WILSON & STRICKLAND, INC.
                                          11705 Haynes Bridge Road
                                          Alpharetta, GA 30004-1928
                                           (770) 751-0432 fax (770) 475-4572
                                             BUILDING CONSULTANTS




June 27, 2007

Best Real Estate Advisors LLC
Suite 2000
One Financial Plaza
Houston, Texas 77002
Attn: Mr. John J. Spalding, P.E.
      Vice President, Director of Engineering


RE:     Property Condition Survey and Capital Replacement Analysis
        SAMPLE OFFICE BUILDING
        Atlanta, Georgia
        WSI 3663

Dear Mr. Spalding:
Inspection of the property and review of available plans and documentation have been completed.
Deficiencies, deferred capital projects and projected capital projects have been identified, and a synopsis
of findings is included in report section I, EXECUTIVE SUMMARY.
Please do not hesitate to contact me at any time.
Very truly yours,
WILSON & STRICKLAND, INC.




David E. Strickland
DES/cdh


Report Distribution:      Addressee – Two original reports
                          Addressee – Electronic version (Adobe Portable Document File)


U:\DOCS\CLIENTS\BUSINESS DEVELOPMENT\2007 NEUTERED PROJECTS\SAMPLE OFFICE BUILDING -NEUTERED.DOC




                                                          II
                     Property Condition Survey and Capital Replacement Analysis

                                          SAMPLE OFFICE BUILDING
                                                       Atlanta, Georgia

                                            TABLE OF CONTENTS
I.     EXECUTIVE SUMMARY ........................................................................................1
         A.      THE PROPERTY ............................................................................................1
         B.      THE ASSIGNMENT .......................................................................................1
         C.      OVERVIEW ....................................................................................................1
         D.      IMMEDIATE (DEFERRED) DEFICIENCIES............................................... 2
         E.      TEN-YEAR PROJECTS..................................................................................2
         F.      POTENTIAL ENHANCEMENTS ..................................................................2
         G.      DESIGN ADEQUACY ...................................................................................2
II. INSPECTION and REVIEW INFORMATION......................................................3
III. PROJECT DIRECTORY ..........................................................................................6
IV. PROPERTY PROFILE..............................................................................................7
         A.      GENERAL INFORMATION ..........................................................................7
         B.      PROJECT FEATURES ...................................................................................7
         C.      BUILDING AREA ........................................................................................10
         D.      GOVERNMENT/DEVELOPMENT ISSUES............................................... 10
         E.      MAINTENANCE and PROBLEM HISTORY .............................................11
         F.      PEST CONTROL ..........................................................................................11
V.     SITE ...........................................................................................................................12
         A.      GRADING and DRAINAGE.........................................................................12
         B.      UTILITIES and SERVICES ..........................................................................12
         C.      TRAFFIC and VEHICULAR SITE ACCESS............................................... 13
         D.      PARKING......................................................................................................14
         E.      PAVING, SIDEWALKS and PLAZAS.........................................................14
         F.      LANDSCAPE, HARDSCAPE and FENCING .............................................15
         G.      SITE WALLS ................................................................................................15
         H.      SITE SIGNAGE.............................................................................................15
         I.      LAND SURVEY, TITLE, and COVENANTS..............................................16
         J.      SITE AMENITIES and SITE STRUCTURES ..............................................16
VI. BUILDING STRUCTURE.......................................................................................18
         A.      FOUNDATIONS ...........................................................................................18
         B.      FRAMING SYSTEM ....................................................................................18
         C.      FLOOR STRUCTURE ..................................................................................19
         D.      ROOF DECK STRUCTURE.........................................................................20
VII. BUILDING ENVELOPE and EXTERIOR............................................................21
         A.      ROOFING and WATERPROOFING ............................................................21
         B.      EXTERIOR WALLS .....................................................................................22
         C.      EXTERIOR SOFFITS and CORNICE .......................................................... 23
         D.      THERMAL INSULATION and VAPOR RETARDERS..............................23
         E.      WINDOWS and CURTAINWALL...............................................................23
         F.      EXTERIOR DOORS and FRAMES..............................................................24




                                                                   iii
                     Property Condition Survey and Capital Replacement Analysis

                                         SAMPLE OFFICE BUILDING
                                                       Atlanta, Georgia

                                           TABLE OF CONTENTS
                                                           (Continued)

VIII. INTERIORS ..............................................................................................................25
          A.     INTERIOR USE AREAS ..............................................................................25
          B.     INTERIOR COMMON AREA......................................................................25
          C.     INTERIOR TENANT AREA ........................................................................26
          D.     INTERIOR OPERATIONS AREAS ............................................................. 26
          E.     NOISE CONTROL ........................................................................................27
          F.     SPECIAL INVESTIGATIONS .....................................................................27
IX. MECHANICAL and ELECTRICAL .....................................................................28
          A.     HEATING, VENTILATING, and AIR CONDITIONING ........................... 28
          B.     PLUMBING...................................................................................................31
          C.     ELECTRICAL ...............................................................................................32
X.     CONVEYING SYSTEMS ........................................................................................36
          A.     ELEVATORS ................................................................................................36
          B.     OTHER SYSTEMS .......................................................................................39
XI. LIFE SAFETY and PROPERTY PROTECTION ................................................40
          A.     OCCUPANCY...............................................................................................40
          B.     MEANS OF EGRESS....................................................................................40
          C.     CONSTRUCTION FEATURES....................................................................41
          D.     BUILDING SERVICE EQUIPMENT........................................................... 41
          E.     FIRE PROTECTION .....................................................................................42
          F.     BUILDING ACCESS CONTROL and SECURITY ..................................... 43
XII. DISABLED ACCESSIBILITY................................................................................44
          A.     AMERICANS WITH DISABILITIES ACT .................................................44
          B.     FAIR HOUSING AMENDMENTS ACT .....................................................44
          C.     LOCAL CODE REQUIREMENTS...............................................................45
          D.     PROPERTY HISTORY and PLANNING.....................................................45
          E.     SUMMARY and RECOMMENDATIONS................................................... 45
XIII. STRUCTURED PARKING .....................................................................................46
XIV. CAPITAL REPLACEMENT and REPAIR COSTS.............................................49
          A.     TEN -YEAR BUDGET PROJECTIONS ...................................................... 49
          B.     CAPITAL PROJECTS and DEFERRED REPAIRS.....................................49
          C.     POTENTIAL ENHANCEMENTS ................................................................49
          D.     USE OF THE DATA .....................................................................................49




                                                                  iv
                     Property Condition Survey and Capital Replacement Analysis

                                        SAMPLE OFFICE BUILDING
                                                    Atlanta, Georgia

                                         TABLE OF CONTENTS
                                                        (Continued)


                                                         TABLES
TABLE 1 - TEN-YEAR BUDGET OVERVIEW (including 3% inflation) ......................................1



                                                        EXHIBITS
TEN-YEAR SUMMARY..................................................................................................... Exhibit A.
PREDICTED CAPITAL PROJECTS .................................................................................. Exhibit B.
COMMON AREA MAINTENANCE or EXPENSE ........................................................... Exhibit C.
POTENTIAL ENHANCEMENTS....................................................................................... Exhibit D.
DOCUMENTATION RECEIVED....................................................................................... Exhibit E.
ROOFING WARRANTY .................................................................................................... Exhibit F.
INSPECTION PHOTOGRAPHS ......................................................................................... ExhibitG.




                                                               v
WILSON & STRICKLAND, INC.                                                                SAMPLE OFFICE BUILDING
WSI 3663                                                      Property Condition Survey and Capital Replacement Analysis



                                 I. EXECUTIVE SUMMARY
A.      THE PROPERTY
The property includes an office building with twelve, above-grade stories (including a basement-level
exposed at the north side of the building) comprising a total reported rentable area of 289,8791 square feet.
The property also includes a freestanding, seven-level parking structure with three levels located partially
below grade.

B.      THE ASSIGNMENT
This assignment included observations at the property and conversations with building representatives to
discover the ages of the various components, maintenance schedules, defects, knowledge of hidden
defects, and need for capital expenditures. The assignment addressed the physical elements of the site and
buildings. Sub-consultants were not engaged to complete site observations, testing, or examinations;
drawings were not reviewed. Tenant finish requirements and common area maintenance costs have not
been addressed, and tenants were not interviewed.

C.      OVERVIEW
The location, configuration, and general design of the project were found to be consistent with buildings of
similar class and construction era in the Atlanta area; however, deficiencies have been identified. The age
of the building (nine years) puts most significant capital replacements beyond the ten-year analysis period.
A summary of conceptual budget opinions is presented in Exhibit A, Ten-Year Summary, and the
following table contains an overview of budget estimates including annual inflation of three percent. The
analysis assumes budgeting year one is 2007.
                          TABLE 1 - TEN-YEAR BUDGET OVERVIEW
                                     (including 3% inflation)
     Item                                                                      Cost per RSF                  Total
     Deficiencies and Deferred Replacement (2007 Capital)                                 $1.09          $315,200
     Deficiencies and Deferred Repairs (2007 Repair & Maintenance)                        $0.20           $56,700
     Life Cycle Replacement or Rehabilitation (2007-2016)                                 $2.98          $863,900
     Special Repair and Maintenance Projects (2007-2016)                                  $1.72          $497,900
     Potential Enhancements (2007-2016)                                                   $2.01          $582,900
     TEN -YEAR TOTALS                                                                     $7.99       $2,316,600
                                                                1
                                                 Rentable Area (RSF):                  289,879




1 Source: Offering Memorandum.


                                                      1
WILSON & STRICKLAND, INC.                                                                 SAMPLE OFFICE BUILDING
WSI 3663                                                       Property Condition Survey and Capital Replacement Analysis



                                   I. EXECUTIVE SUMMARY
                                                 (Continued)

D.    IMMEDIATE (DEFERRED) DEFICIENCIES
Deficiencies requiring immediate action are categorized as such due to their severity or the conclusion
they should have been previously repaired. In some cases, the deferred classification is determined by the
Client, based on their asset management planning approach. Items classified as “deferred” are
deterioration of the office building’s roof-level shade beam, parking structure impairments, and items of
ADA nonconformance. These deficiencies were or should have been previously known, and corrective
action should have been previously undertaken. Costs for these items are detailed in Exhibit B, Predicted
Capital Projects and Exhibit C, Common Area Maintenance or Expense.

E.    TEN-YEAR PROJECTS
Significant projects anticipated during the analysis period are outlined in the exhibits. Projects classified
by the Client as capital projects are contained in Exhibit B, Predicted Capital Projects and those
classified as repair/maintenance projects are contained in Exhibit C, CAM or Expense Projects.
Predicted projects include replacement of roofing systems, installation of certified anchor points for façade
access, exterior building joint sealants, interior common area finish replacements, phased replacement of
various HVAC components, cooling tower rehabilitation, replacement of the fire alarm system head end,
parking structure concrete repairs, application of a protective traffic coating at the top level of the parking
structure, and parking structure deck joint sealants.

F.    POTENTIAL ENHANCEMENTS
Projects that enhance the property or potentially provide energy or operational savings are included in
Exhibit D, Potential Enhancements. Also, projects classified by the Client as providing a higher
standard of care than warranted are included as enhancements. These projects include variable speed
operation for various pumps and fans, application of a penetrating water repellent at the split face concrete
block of the parking structure, and application of a penetrating water repellent at the intermediate level
decks of the parking structure.

G.    DESIGN ADEQUACY
The various building systems have apparently performed adequately for the types of tenants occupying the
building.




                                                      2
WILSON & STRICKLAND, INC.                                                      SAMPLE OFFICE BUILDING
WSI 3663                                            Property Condition Survey and Capital Replacement Analysis



              II. INSPECTION and REVIEW INFORMATION
   1. Inspection Dates             April 10, 2007
   2. Inspection and Review Team   Mr. David E. Strickland
                                   Mr. David A. Schneider
   3. Review Team Qualifications   David E. Strickland – Mr. Strickland is President of
                                   Wilson & Strickland, Inc. and has 34 years of experience
                                   in engineering, construction, and analysis of building
                                   construction and sitework construction systems.
                                   Mr. Strickland is a registered professional engineer and
                                   was graduated from The Georgia Institute of Technology
                                   with a Bachelor of Civil Engineering degree in 1973.
                                   David A. Schneider – Mr. Schneider is a Project
                                   manager with Wilson & Strickland, Inc. and has 23 years
                                   of experience in construction, inspection, and analysis of
                                   building construction and sitework construction systems.
                                   Mr. Schneider was graduated from Bowling Green State
                                   University with a Bachelor of Science in Construction
                                   Technology degree in 1983 and from the University of
                                   Florida with a Masters of Building Construction in 1984.
   4. Sources of Information       The following descriptions are generally from site
                                   observations. Many conclusions expressed or implied in
                                   this report assume hidden elements are constructed in
                                   accordance with Code, standard practice, and/or
                                   manufacturer recommendations. Complete
                                   documentation is rarely obtained during physical due
                                   diligence investigations, and statements contained herein
                                   indicating missing documentation or information are
                                   given for action by the Client. In most cases, missing
                                   documentation or information has not been categorized
                                   with regard to relative importance or risk to the Client
                                   and has not been assigned a line item or associated cost in
                                   the exhibits. The Client must make its own determination
                                   regarding the relative importance or risk of missing
                                   documentation or information and take further action, if
                                   necessary. Documentation and information provided was
                                   assumed to have been truthful, valid, and technically
                                   accurate and has been relied upon during preparation of
                                   this report, opinions, and recommendations.
                                   Requests associated with this property assumed the Seller
                                   and their representatives would be forthcoming in
                                   divulging known or suspected problems. However,
                                   building documentation was not readily provided by the
                                   Seller. Also, questionnaires provided to the Seller’s
                                   representative were not completed.
                                   During site visits, the Property Manager was not
                                   interviewed concerning her knowledge of the building.
                                   Also, the tenants were not formally interviewed.
                                   Property management did not respond to questionnaires

                                         3
WILSON & STRICKLAND, INC.                                                         SAMPLE OFFICE BUILDING
WSI 3663                                               Property Condition Survey and Capital Replacement Analysis


                II. INSPECTION and REVIEW INFORMATION
                                       (Continued)

                                       submitted. The Chief Engineer, Mr. Keith Gates,
                                       indicated about four years of experience with the
                                       building. Mr. Gates is an employee of Clydesdale
                                       Facilities Group. Mr. Gates was present during site
                                       observations and provided verbal information regarding
                                       details of the building. Information search with
                                       governmental entities was not included in the scope of
                                       services.
   5. Future Capital Expenditures      Descriptions and costs associated with life-cycle
                                       replacement or rehabilitation of major project
                                       components within the next fifteen years are listed in the
                                       exhibits. The items listed in the exhibits are not
                                       discussed in the body of this report unless additional
                                       explanation is deemed necessary. Year one of the
                                       analysis is assumed to be the year2007, and the ages of
                                       the various capital components reflect this assumption.
   6. Observed/Reported Deficiencies   Recommendations for further investigation, items of
                                       deferred maintenance or repair, and deficiencies requiring
                                       immediate attention are listed in the exhibits. The
                                       exhibits contain full descriptions of each deficiency, and
                                       these descriptions are generally not repeated in the body
                                       of this report.
   7. Scope of Services                Please be advised the scope of field observations included
                                       only visual examination of readily visible components of
                                       the property and spot check of typical tenant spaces. It
                                       was not possible to identify discrepancies likely to occur
                                       within concealed spaces. No materials testing (e.g.,
                                       roofing cuts, pavement corings, etc.) or field testing (e.g.,
                                       water testing, etc.) was performed unless specifically
                                       authorized and detailed herein.
                                       Analysis of the building components was not done, and
                                       construction plans were not examined. Due to the limited
                                       scope of services it should not be assumed all problems
                                       have been identified herein. Various insurance carriers
                                       have specific requirements more stringent than those in
                                       building codes. Insurance requirements have not been
                                       addressed.
   8. Cost Estimates                   Repair, completion, and replacement cost estimates are
                                       conceptual, and unless stated otherwise, no contractors
                                       have provided pricing. Actual costs will vary from the
                                       estimates (sometimes considerably), and it is
                                       recommended contingency funds be added to estimates.
                                       Unless stated otherwise, cost estimates are in today's
                                       dollars and do not include inflation or price escalation
                                       factors.


                                             4
WILSON & STRICKLAND, INC.                                                SAMPLE OFFICE BUILDING
WSI 3663                                      Property Condition Survey and Capital Replacement Analysis


                II. INSPECTION and REVIEW INFORMATION
                              (Continued)

   9. Use of this Report      Since the scope of services was based on the Client’s
                              requirements, this report may not satisfy the needs and
                              requirements of a third party. Therefore, this report is
                              strictly for the use of Best Real Estate Advisors LLC
                              and their client, for the impending acquisition of the
                              property, and shall not be relied upon or enforced by any
                              other corporation, nor by any person, partnership, and/or
                              owner.




                                   5
WILSON & STRICKLAND, INC.                                                SAMPLE OFFICE BUILDING
WSI 3663                                      Property Condition Survey and Capital Replacement Analysis



                            III. PROJECT DIRECTORY
   1. Developer                     Unknown
   2. Civil Engineer                Unknown
   3. Architect                     Unknown
   4. Structural Engineer           Unknown
   5. Mechanical Engineer           Unknown
   6. Electrical Engineer           Unknown
   7. General Contractor            Unknown




                                        6
WILSON & STRICKLAND, INC.                                                             SAMPLE OFFICE BUILDING
WSI 3663                                                   Property Condition Survey and Capital Replacement Analysis



                               IV. PROPERTY PROFILE
A.    GENERAL INFORMATION
     1. Type of Property                   The property includes an office building with twelve,
                                           above-grade stories (including a basement-level exposed
                                           at the north side of the building) comprising a total
                                           reported rentable area of 289,879 square feet. The
                                           property also includes a freestanding, seven-level parking
                                           structure with three levels located partially below grade.
     2. Location                           The property address is 5555 Southridge Parkway,
                                           Atlanta, Georgia 30042.
     3. Year of Construction               Construction was reported to have been completed in
                                           1998. The original Certificate of Occupancy was not
                                           provided.
     4. Building Code                      The original design was completed under the then-current
                                           edition of the Standard Building Code. The current code
                                           is the International Building Code, 2006 Edition, with
                                           Georgia Amendments (2007).
     5. Plans and Building Documentation Plans were not provided for examination.
     6. Development History                No documentation has been received regarding
                                           previously existing structures on the building site.
     7. Construction Status                No base building or tenant construction was underway.
     8. Tenant Space Status                The Offering Memorandum indicates unleased space
                                           included one space (1,470 rentable square feet) at the
                                           ninth floor and the entire tenth floor (28,392 rentable
                                           square feet total).
     9. Warranties                         One warranty (roofing) was provided for examination.
                                           Descriptions and discussions of specific system
                                           warranties are contained hereinafter:
                                              • Roofing Systems – Page 21
                                              • Exterior Wall Systems – Page 22
                                              • Window/Curtainwall Systems – Page 24
                                              • HVAC Systems – Page 29
     10. Future Building Expansion
         or Redevelopment                  No documented plan has been provided for expanding the
                                           buildings horizontally or vertically. Redevelopment
                                           possibilities have not been researched.

B.    PROJECT FEATURES
     1. Site Description                   The property contains 3.989 acres of land2 and is
                                           bordered on the north by office building properties, on
                                           the east by Georgia Highway 400, on the south by
                                           Southridge Parkway, and west by the Southridge Office
                                           Park development entry drive.

2 Source: ALTA/ACSM Land Title Survey revised 6/28/2000

                                                 7
WILSON & STRICKLAND, INC.                                                         SAMPLE OFFICE BUILDING
WSI 3663                                               Property Condition Survey and Capital Replacement Analysis


                               IV. PROPERTY PROFILE
                                      (Continued)

   2. Geology, Topography,
      Streams and Wetlands            Geological information has not been provided for
                                      examination; however, the site is located in the Piedmont
                                      Physiographic Province of Georgia. The Piedmont
                                      consists of surficial soils that are the residual products of
                                      the in-place weathering of the parent rock. The residual
                                      soils are sometimes overlain by alluvial soils, which were
                                      transported and deposited by flowing water or by placed
                                      fill materials. The underlying rocks are primarily
                                      metamorphic gneiss, schist, and granite. The residual
                                      soils are generally clayey silts near the ground surface
                                      underlain by sandy silts and silty sands.
                                      The entire property generally slopes down from north to
                                      south. There were no stream or wetland areas observed
                                      at the property.
   3. Site Risks                      According to the most current EPA Map of Radon Zones
                                      (http://www.epa.gov/radon/zonemap.html), this property lies
                                      within Zone 1 (area with highest potential), where the
                                      predicted average indoor screening level is greater than
                                      4 Pico curies per liter. No radon testing documentation
                                      was provided. No findings were made regarding methane
                                      in soils, special brownfield soil use restrictions, etc.;
                                      however, examination of environmental matters was not
                                      included in the scope of services for this engagement.
                                      The property does not lie in an area of Karst geology
                                      where sinkholes might form.
   4. Seismic Zone                    The property lies at the border of Seismic Zones 1 and
                                      2A as defined by the 1997 Uniform Building Code.
                                      A Seismic Risk Assessment has not been completed.
                                      Further discussion is provided under report Section VI,
                                      BUILDING STRUCTURE, Best Protocol (page 19).
   5. Truck Access and Parking        A loading dock (with two, dock-height truck bays) exists
                                      at the northeast corner of the building at the basement
                                      level. Office building deliveries from the loading dock
                                      are through a service corridor to the dedicated service
                                      elevator.
   6. Truck and Trailer Facilities    Not applicable for office building occupancies.
   7. Automobile Access and Parking   Vehicular access to the parking structure is by two
                                      entry/exit points. The west entry/exit point is at the
                                      third level and is directly from the Southridge Office Park
                                      entry drive. The north exit point is from the asphalt-paved
                                      entry/exit drive that leads from Trimble Road (a 50-foot
                                      right of way that leads south from NesbitFerry Road).




                                            8
WILSON & STRICKLAND, INC.                                                             SAMPLE OFFICE BUILDING
WSI 3663                                                   Property Condition Survey and Capital Replacement Analysis


                               IV. PROPERTY PROFILE
                                          (Continued)

                                           The parking structure contains roughly 944 total parking
                                           spaces.3
   8. Public Transportation                A Metro Atlanta Rapid Authority (MARTA) rail station
                                           is not located in close proximity to the property.
   9. Building Access                      Office building access by pedestrians is from the plaza
                                           area at the front (west side) of the building. Sidewalks
                                           exist at Southridge Parkway but do not run along the
                                           Southridge Office Park entry drive. A sidewalk leads
                                           from the parking structure to the building entry.
   10. Building Improvements              The office tower has eleven tenant levels added above the
                                          main tenant levels that are designated first through eleven
                                          floors. The first floor includes the main lobby, a café
                                          space, and office spaces. Floors two through eleven
                                          include office space, and the penthouse levels contain
                                          electrical/mechanical space. Beneath the first floor, the
                                          basement level contains the engineer’s office,
                                          mechanical/electrical spaces, and the loading dock.
                                           The building structure consists of reinforced concrete
                                           one-way joists and slab systems. Details of foundation
                                           systems are not known. The low-slope roofs are covered
                                           with a ballasted, EPDM roofing system. The building
                                           elevations consist of alternating sections of punched
                                           windows in aggregate-finished precast concrete, or
                                           smooth-finished precast concrete, or aluminum in glass
                                           curtainwall systems. The aluminum and glass curtainwall
                                           system at the west side encompasses the first floor entry
                                           area, and there is no differentiated storefront system.
                                           EIFS is used at exterior wall finishes of the penthouse
                                           structure. Floor to floor spacing at the upper floors is
                                           typically 13 feet, and the first-to-second floor spacing is
                                           14 feet. Further description of project features is
                                           contained in the following report sections and in the
                                           photograph captions, Exhibit G.
   11. Common Amenities and Features       Interior wall finishes consist primarily of gypsum board
                                           on metal framing with vinyl wallcoverings and paint
                                           finishes. Suspended, lay-in acoustic ceilings are typically
                                           installed at corridors, and carpet is typically used at
                                           common area floors. The main lobby is finished with
                                           stone flooring and wall accents, wood paneling, wall
                                           coverings, and a painted gypsum board ceiling.
   12. Leasing and Management              The on-site management staff occupies office space at the
                                           ninth floor, and the chief engineer’s office is at the
                                           basement level. Other spaces used by management


3 Source: ALTA/ACSM Land Title Survey revised 6/28/2000

                                                 9
WILSON & STRICKLAND, INC.                                                            SAMPLE OFFICE BUILDING
WSI 3663                                                  Property Condition Survey and Capital Replacement Analysis


                                 IV. PROPERTY PROFILE
                                         (Continued)

                                         include a workshop space at the basement level and a
                                         storage space at the first level of the parking structure
                                         (beneath the levels one-to-two ramp).
     13. Common Amenities
         and Special Features            No shared amenities (e.g., fitness rooms, shared
                                         conference rooms) existed.
     14. Tenant Amenities
         and Special Features            No special amenities are located within the tenant spaces.
     15. Communications Infrastructure   No information was provided by property management
                                         regarding broadband services to the building.
     16. Landscaping Comment             Attractive landscaped and irrigated areas exist around the
                                         buildings, including lawn areas, foundation plantings, and
                                         tree plantings.

C.     BUILDING AREA
     1. Measurement Standard             Rentable area for this property is based on the
                                         ANSI/BOMA Z65.1-1996 “Standard Method for
                                         Measuring Floor Area in Office Buildings” dated June 7,
                                         1996. The ANSI/BOMA Standard does not consider the
                                         following areas rentable:
                                             • major vertical penetrations and their enclosing
                                                 walls
                                             • exterior balconies or terraces
                                             • parking areas and ramps
     2. Reported Building Area           A BOMA area calculation was not provided by the
                                         Seller; however, the Offering Memorandum indicates a
                                         total rentable area of 289,879 square feet.
     3. Verification Technique           Verification of building area was not included in the
                                         scope of services for this assignment, and field
                                         dimensions of the building were not verified.

D.     GOVERNMENT/DEVELOPMENT ISSUES
     1. Contact Information              Department information for the City of Sandy Springs
                                         can be found at the web site,
                                         http://www.sandyspringsga.org.
     2. Zoning Department                No contact was made with the Zoning Administrator.
     3. Development Issues               No information was received regarding unsatisfied
                                         improvement bonds, covenants, offsite improvements,
                                         developer commitments, or unsatisfied proffers.
     4. Certificates of Occupancy        Certificates of Occupancy were not received.
     5. Building Department              No contact was made with the Building Department.



                                              10
WILSON & STRICKLAND, INC.                                                        SAMPLE OFFICE BUILDING
WSI 3663                                              Property Condition Survey and Capital Replacement Analysis



                                 IV. PROPERTY PROFILE
                                        (Continued)

     6. Fire Department               The Fire Department was not contacted regarding the
                                      frequency of fire safety inspections, outstanding fire code
                                      violations, history and nature of previous fires, existence of
                                      backflow protection, nearest fire station location, department
                                      category class rating, or color coding system for fire hydrants.
     7. Elevator Inspector            Current operating certificates were not provided for
                                      examination.
     8. Infrastructure                No contact was made with the Engineering Department
                                      regarding infrastructure improvements that might impact the
                                      property.
     9. Operating and Use Permits     No requirements have been discovered regarding operating
                                      permits for systems on the property.
     10. Nearby Facilities
         with Potential Impact        No nearby facilities with potential impact have been
                                      identified. No information received indicates existence near
                                      the property of large natural gas storage, power plants, large
                                      fuel storage tanks, dumps, or any defined Thermal Exclusion
                                      Zones or other zones.

E.     MAINTENANCE and PROBLEM HISTORY
     1. Work Order Review             The property manager did not provide a summary of work
                                      order occurrences.
     2. Tenant Feedback               No contact was made with the tenants during site visits.
     3. Maintenance Adequacy          The capabilities of the maintenance staff were not apparent
                                      with regard to taking on complex in-house projects.

F.     PEST CONTROL
     1. Problem History               Management reported no problems with insect infestations;
                                      however, a termite bait system had been installed.
     2. Termite Damage Risk           The risk of termite damage in this area is rated "Very Heavy"
                                      by the National Pest Control Association.
     3. Termite Damage Bond           There are no damage bonds in place. Routine pest control
                                      service is contracted.
     4. Pest Inspector                A pest inspection subconsultant was not engaged.
     5. Observations and Comments     Problems with termite damage were not found, and the
                                      building structure is not susceptible to termite damage.




                                             11
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                                         V. SITE
A.    GRADING and DRAINAGE
     1. Grading                         It appears no excessive cut or fill areas were needed to
                                        prepare the site; however, significant cut was required to
                                        install the below-grade areas.
     2. Drainage Description            Internal roof drains and site drains are apparently connected
                                        to a site drainage system; however, details of this system are
                                        unknown.
     3. Flood Levels                    The June 28, 2000, Land Title Survey states “according to the
                                        FEMA FIRM information, community panel 135160 0100 B,
                                        dated January 2, 1992, the property is not located in an area
                                        having special flood hazard conditions.”
     4. Drainage Inflow                 No documentation was examined to indicate details of
                                        drainage inflow; however, it is possible drainage from
                                        portions of the office properties to the north cross the subject
                                        property.
     5. Foundation Drainage Discharge   No evidence was found to indicate foundation drainage
                                        systems are installed, and plans were not examined.
     6. Pipe Location                   No evidence was found of major storm drainage piping below
                                        the building; however, civil plans were not examined.
     7. Construction Documentation      No construction observation or testing documentation has
                                        been reviewed; however, no significant construction-related
                                        deficiencies were observed.
     8. Overall Adequacy                An independent analysis was not completed to determine
                                        flood levels or storm water flow through the drainage
                                        systems. The project was not observed during significant
                                        rainfall; therefore, the susceptibility of the property to local
                                        drainage problems could not be observed. No evidence was
                                        found of erosion or overflow that would indicate the capacity
                                        of the storm drainage systems had been exceeded.

B.    UTILITIES and SERVICES
     1. Water                           The domestic and fire service water entry point was observed
                                        at the basement level; however, details of routing across site
                                        are unknown.
     2. Sanitary Sewer                  Civil plans were not examined with regard to routing of
                                        sanitary sewer service across the site or existing services in
                                        the surrounding right of ways.
     3. Telephone and Communication
        Systems                         No information was received regarding routing telephone
                                        communication systems to the building, and property
                                        management provided no information regarding broadband
                                        services to the building. A network point-of-presence room is
                                        provided at the basement level, and fiber-optic lines appeared
                                        to be present.




                                               12
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                                           V. SITE
                                          (Continued)

     4. Electric                        Electric plans were not examined; however, two, pad-
                                        mounted transformers near the north side of the building feed
                                        the main switchgear located at the basement level.
     5. Fire Alarm                      A municipal fire alarm monitoring system is not provided in
                                        this area. Details of commercial monitoring were not
                                        provided.
     6. Natural Gas                     A natural gas meter was observed at the east side of the
                                        building to serve the first floor test kitchen. Base building
                                        equipment does not employ natural gas.
     7. Fuel Storage                    A diesel storage base tank is located in the emergency
                                        generator set located at the pavement on the north side of the
                                        building. The capacity of the tank is not known. A tenant
                                        emergency generator set is located nearby at the northeast
                                        corner of the building. The capacity of the base tank in this
                                        generator is also not known.
     8. Steam                           Commercial steam is not used and is not available to the site.
     9. Trash Removal                   The cleaning service removes trash from the floors daily.
     10. Mail Delivery                  Details of mail delivery are not known.
     11. Construction Documentation     No construction observation or testing documentation has
                                        been reviewed; however, no significant construction-related
                                        deficiencies were observed.
     12. Overall Adequacy               Examination of available plans and observation of the site
                                        have revealed no obvious deficiencies in the utility systems.
                                        Property management reported no knowledge of problems
                                        with sanitary sewer backups.

C.    TRAFFIC and VEHICULAR SITE ACCESS
     1. Street Access                   Office building access by pedestrians is from the plaza area at
                                        the front (west side) of the building. Sidewalks exist at
                                        Southridge Parkway but do not run along the Southridge
                                        Office Park entry drive. A sidewalk leads from the parking
                                        structure to the building entry.
     2. Signalization                   Traffic signals exist at the intersection of the main entry drive
                                        with Southridge Parkway and the intersection of Trimble
                                        Road with Nesbit Ferry Road.
     3. Interior Automobile Access      Two-way driveways allow direct vehicular access to and
                                        from the parking structure.
     4. Deliveries and Service Access   Truck access is from Trimble Road via an asphalt-paved
                                        driveway that leads to the loading area.
     5. Garbage Truck Access            Garbage truck access uses the same driveway path as delivery
                                        access.
     6. Vehicular Access Control        Parking structure access control is discussed under
                                        XIII STRUCTURED PARKING, on page 46.


                                               13
WILSON & STRICKLAND, INC.                                                                      SAMPLE OFFICE BUILDING
WSI 3663                                                            Property Condition Survey and Capital Replacement Analysis



                                                     V. SITE
                                                    (Continued)

     7. Bridges                                   There are no vehicular bridges.
     8. Guardrails                                Site vehicular guardrail systems are not used.
     9. Overall Adequacy                          Access generally appeared adequate for pedestrian traffic,
                                                  automobile traffic, and delivery traffic.

D.    PARKING
     1. Surface Parking                           Surface parking is not provided.
     2. Carports and Unit Garages                 Not applicable.
     3. Structured Parking                        Structured parking is reported to provide marked spaces for
                                                  944 vehicles.4 The parking structure is described below
                                                  under XIII STRUCTURED PARKING, on page 46.
     4. Offsite Parking                           No dedicated off-site parking facilities were reported by
                                                  property management.
     5. Parking Count and Ratio                   The parking structure is reported to contain 944 spaces. The
                                                  parking ratio for the office building (based on rentable office
                                                  area of 289,879 square feet and 944 parking spaces) is 3.26
                                                  spaces per 1,000 square feet or 307 square feet per space.
     6. Original Parking Requirement              No documentation has been provided regarding original
                                                  parking requirements at the time of development approval.
     7. Covered Parking                           All but the top parking level (level seven) is covered.
     8. Disabled Parking                          The ALTA ASCM Land Title Survey indicates 19 parking
                                                  spaces for the disabled at the parking structure.
     9. Site Lighting                             Significant site lighting is not provided; however, fluorescent
                                                  T-8 luminaries are used at the parking structure.
     10. Parking Expansion                        No documented plans for parking expansion were provided.
     11. Overall Adequacy                         Parking facilities appeared adequate on the day of site
                                                  observation. Parking shortages were not observed. The
                                                  parking ratio has not been compared to current zoning
                                                  requirements.

E.    PAVING, SIDEWALKS and PLAZAS
     1. Vehicular Pavement on Grade               Asphaltic concrete pavement is provided at the internal
                                                  driveways; however, design details are not known.
     2. Curbing, Sidewalks,
        and Site Stairs                           Concrete curb and gutter exists at the perimeter of the
                                                  asphalt-paved driveway areas. Sidewalks and site stairs are
                                                  concrete or pavers.
     3. Site Plazas Over Usable Space             There are no site areas located over occupied building space.



4 Source: Land survey revised January 28, 2000.


                                                         14
WILSON & STRICKLAND, INC.                                                       SAMPLE OFFICE BUILDING
WSI 3663                                             Property Condition Survey and Capital Replacement Analysis



                                        V. SITE
                                       (Continued)

     4. Due Diligence Testing        No due diligence testing of pavements or waterproofing
                                     systems was performed.
     5. Maintenance                  No previous major rehabilitation of pavements was reported.
     6. Construction Documentation   No construction observation or testing documentation has
                                     been reviewed; however, no significant construction-related
                                     deficiencies were observed.
     7. Overall Adequacy             The sidewalk and pavement areas appear to be performing
                                     adequately, and major rehabilitation is not anticipated within
                                     the ten-year analysis period.

F.     LANDSCAPE, HARDSCAPE and FENCING
     1. Description                  Attractive landscaped and irrigated areas exist around the
                                     buildings, including lawn areas, foundation plantings, and
                                     tree plantings.
     2. Quality                      The quality and extent of landscaping are average for a
                                     property of this type.
     3. Maintenance                  Maintenance and upkeep of landscaping were good.
     4. Special Features             A fountain runs along the access walkway between the
                                     parking structure and the office building.
     5. Irrigation                   Planted areas are irrigated.
     6. Fencing                      Chain link fencing exists along the Georgia Highway 400
                                     right of way at the east side of the property.
     7. Overall Adequacy             Landscape selection and hardscape design appeared
                                     appropriate.

G.     SITE WALLS
     1. Description                  A reinforced concrete retaining wall exists between the
                                     parking structure and the open site area at the north side of
                                     the office building.
     2. Construction Documentation   No construction testing documentation has been provided for
                                     review.
     3. Adequacy                     Plans for the onsite retaining wall were not provided for
                                     examination; however, no cracking, deflection, or other
                                     distress was observed in the retaining wall.

H.     SITE SIGNAGE
     1. Description                  A “Southridge Office Park” sign on a stucco-finished
                                     retaining wall faces the Southridge Parkway at the south end
                                     of the office building site. This signage appears to be part of
                                     the overall Southridge Park development. A “Southridge
                                     Park One” monument sign with three tenant signs exists at
                                     the lawn area at the east side of the building.



                                            15
WILSON & STRICKLAND, INC.                                                              SAMPLE OFFICE BUILDING
WSI 3663                                                    Property Condition Survey and Capital Replacement Analysis



                                             V. SITE
                                            (Continued)

     2. Signage Approvals                 No documentation relating to signage approval has been
                                          provided for examination.
     3. Overall Adequacy                  The existing signage appeared adequate.

I.     LAND SURVEY, TITLE, and COVENANTS
     1. Land Survey                       A land survey (revised January 28, 2000) indicates
                                          conformance to ALTA/ACSM standards. The survey was
                                          prepared by PBS&J.
     2. Easements                         Various easements, including non-plottable blanket
                                          easements, are indicated on the land survey.
     3. Constructed Slopes                The land survey does not contain topographical information;
                                          however; constructed slopes along the east side of the
                                          property at the Georgia Highway 400 right of way may cross
                                          property lines.
     4. Encroachments                     No obvious encroachments off the property were found
                                          during examination of the land title survey; however, the
                                          Georgia Highway 400 fence appears to encroach onto the
                                          property at a number of locations.
     5. Utilities, Drainage, and Access   Utility services cross property lines, and legal analysis is
                                          recommended to verify utility drainage and access rights.
     6. Setback Requirements              The land survey indicates a 40-foot building setback line
                                          along the east property line at Georgia Highway 400 and
                                          along the Southridge Parkway. A 20-foot building setback
                                          line is shown from the west and north property lines. The
                                          parking structure may encroach on the building setback line;
                                          but dimensions of any encroachment are not shown on the
                                          land title survey.
     7. Property Covenants                Property covenants and restrictions have not been provided
                                          for examination.
     8. Right of Way Use                  Curb cuts exist at the surrounding streets, but governmental
                                          documentation associated with the right-of-way use has not
                                          been provided for examination.
     9. Offsite Signage Rights            No off-site signage was evident during site observations.

J.     SITE AMENITIES and SITE STRUCTURES
     1. Exterior Swimming Pools and Spas Not applicable.
     2. Sport Courts                      Not applicable.
     3. Playgrounds                       Not applicable.
     4. Picnic Areas                      A patio seating area with a table is provided at the north side
                                          of the building.
     5. Pedestrian and Bicycle Paths      Not applicable.



                                                 16
WILSON & STRICKLAND, INC.                                                SAMPLE OFFICE BUILDING
WSI 3663                                      Property Condition Survey and Capital Replacement Analysis



                               V. SITE
                              (Continued)

   6. Car Wash Facilities   A car wash vendor was set up at the first floor of the parking
                            structure.
   7. Covered Parking       Covered parking exists at all but the top parking level.
   8. Mail Kiosks           Not applicable.
   9. Other                 No other site amenities exist.




                                   17
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                               VI. BUILDING STRUCTURE
A.    FOUNDATIONS
     1. Type                            Drawings indicating details of the building foundation system
                                        were not provided for examination.
     2. Geotechnical Reports            No geotechnical information has been provided for review.
     3. Frost Depth                     Frost heave is not a consideration due to the existence of sub-
                                        grade levels.
     4. Local Conditions                This property does not lie within an area noted for sinkhole
                                        activity. No documentation has been received relating to
                                        expansive soils at the site. Site risks are discussed under the
                                        Site Risks heading on page 8.
     5. Construction Documentation      No construction observation or testing documentation has
                                        been reviewed; however, no significant construction-related
                                        deficiencies were observed.
     6. Overall Adequacy                No analysis was preformed to verify design adequacy of the
                                        foundation systems; however, no evidence of structural
                                        cracking or deformation was found that would indicate
                                        problems with foundation settlement.

B.    FRAMING SYSTEM
     1. Type                            Building framing consists of reinforced concrete columns
                                        supporting reinforced concrete floor systems. Reinforced
                                        concrete beams provide additional support at various
                                        locations.
     2. Lateral Load Resistance         Lateral building loads are transferred through the reinforced
                                        concrete floor systems to the reinforced concrete columns.
                                        Details regarding resistance of the structural frame to lateral
                                        loads were not available, and design wind loading
                                        information was not available.
     3. Uplift Loads                    Uplift loads are generally not a consideration in reinforced
                                        concrete structures due to its weight and structural continuity.
                                        Roofing system attachment is addressed below under the
                                        Roofing Attachment heading on page 21.
     4. Original Seismic Requirements   Structural plans indicating seismic zone were not provided
                                        for examination.
     5. Earthquake Load Resistance      Current seismic codes take into account seismic maps from
                                        the U.S. Geological Survey, which have upgraded seismic
                                        risk in some parts of the country. For example, Cincinnati,
                                        Nashville, and Charleston, S.C., are now rated moderate or
                                        high seismic areas. Under the current code, buildings in the
                                        area of the subject property are likely to require design
                                        (depending on site-specific soil conditions) to resist more
                                        severe ground motions than under previous codes. However,
                                        retrofit to meet current code requirements is generally not
                                        required. Current building codes show this property to be in
                                        an area with 1-second spectral response acceleration just over


                                               18
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                                   VI. BUILDING STRUCTURE
                                           (Continued)

                                         0.10 g, placing the site in a design category “C” (based on
                                         default site Class “D”). This design category requires some
                                         degree of seismic design for present day buildings. Also,
                                         structural connection and anchoring requirements apply.
     6. Best Protocol
        Seismic Zone                     The property does not lie within a county where review is
                                         required by Best Seismic Review Protocol. A Seismic Risk
                                         Assessment has not been completed.
     7. Structural Expansion
        and Contraction                  There are no internal structural expansion joints at this
                                         building, and same do not appear to be warranted.
     8. Link Structures                  Link structures are not employed.
     9. Construction Documentation       No construction observation or testing documentation has
                                         been reviewed; however, no significant construction-related
                                         deficiencies were observed.
     10. Overall Adequacy                No structural distress (that might indicate design problems)
                                         was found during site observations. This office has not
                                         performed a design analysis.

C.     FLOOR STRUCTURE
     1. Slab-on-Grade                    Details of the slab on grade construction were not available.
     2. Slab Traffic and Loading         The slabs are not subject to equipment (e.g., forklift) damage.
     3. Slab Construction Joints         The slabs on grade are not subject to equipment damage at
                                         construction joints.
     4. Slab Contraction Joints          Details of slab joining were not available.
     5. Slab Joint Filler                The slab on grade is not subject to traffic damage; therefore,
                                         structural filling of slab joints is not needed.
     6. Slab Sealer and Hardener         Construction Specifications for slab sealers and hardeners
                                         have not been provided.
     7. Slab Curling                     Slab curling is typically not a significant concern in office
                                         building construction.
     8. Elevated Floors                  Plans were not provided for examination; however, site
                                         observations at limited areas revealed elevated floors are a
                                         cast in place one way slab and joist system (skip joists).
     9. Balconies, Decks,
        and Breezeways                   Details of the slab construction at the setback roof on the
                                         north side were not available. Refer to the Plazas, Terraces,
                                         and Balconies heading on page 21 for associated
                                         waterproofing systems.
     10. Design Gravity Loading          Design floor loading was not available.
     11. Special-Use Areas               It is common in office buildings that special use areas (e.g.,
                                         heavy file storage systems) require investigation to verify


                                                19
WILSON & STRICKLAND, INC.                                                        SAMPLE OFFICE BUILDING
WSI 3663                                              Property Condition Survey and Capital Replacement Analysis



                               VI. BUILDING STRUCTURE
                                        (Continued)

                                      adequacy of the building structure. File storage systems were
                                      not observed. Plans associated with any structural
                                      modifications have not been examined.
     12. Construction Documentation   No construction observation or testing documentation has
                                      been reviewed; however, no significant construction-related
                                      deficiencies were observed.
     13. Overall Adequacy             Documentation of design loading was not available; however,
                                      no observations revealed structural distress at the visible
                                      portions of the building structure.

D.    ROOF DECK STRUCTURE
     1. Type                          The construction of the main roof appeared to be similar to
                                      the elevated office floors. The penthouse structure roof also
                                      appeared to be a reinforced concrete one-way slab/joist
                                      system.
     2. Design Loads                  Design loads for the building roofs were not available.
     3. Ponding Loads                 The main roof has internal roof drains and through-parapet
                                      scuppers. The penthouse roof drains to the main roof.
     4. Overall Adequacy              Site observations revealed no structural problems with the
                                      roof systems. Design information was not available.




                                             20
WILSON & STRICKLAND, INC.                                                             SAMPLE OFFICE BUILDING
WSI 3663                                                   Property Condition Survey and Capital Replacement Analysis



                     VII. BUILDING ENVELOPE and EXTERIOR
A.     ROOFING and WATERPROOFING
     1. Roofing Type                       Roofing is a ballasted, EPDM system at the main roof and the
                                           mechanical penthouse roof. Details of roof insulation were
                                           not available.
     2. Roofing Attachment                 No documentation was available regarding roofing system
                                           uplift resistance or conformance to special requirements such
                                           as those of FM Global. The ballasted, EPDM roofing system
                                           relies on the weight of the river-rock ballast to resist wind
                                           uplift forces. Portions of the roofing that extend onto parapet
                                           walls are fully-adhered.
     3. Roof Flashing                      Base flashing appeared to be the EPDM membrane in cured
                                           or uncured form.
     4. Roofing Membrane
        Expansion/Contraction              The size and configuration of the roof on the office building
                                           does not warrant roofing membrane dividers.
     5. Attic Venting                      No attic spaces exist.
     6. Roofing Manufacturer's Warranty    The Carlisle warranty indicates a date of completion of
                                           July 20, 1998, and a fifteen-year warranty period.
     7. Roofing Subcontractor Guaranty     Any subcontractor guarantees for the roofing systems have
                                           expired.
     8. Roof Slopes and Drainage           Roofs appeared adequately sloped; however, details of actual
                                           slope were not available.
     9. Roof Access and Protection         Access to the roof is provided from the mechanical
                                           penthouse. Walking surface protection is installed at limited
                                           areas.
     10. Skylights                         Skylights are not used in the construction.
     11. Equipment Curbs and Supports      Visible penetrations appeared to be adequately flashed.
     12. Canopies                          A covered sidewalk is provided between the office building
                                           and the parking structure. The roofing is a cylindrical metal
                                           system with standing seams.
     13. Plazas, Terraces, and Balconies   The fourth-floor setback roof was not accessible, and the
                                           roofing system could not be confirmed.
     14. Foundation Waterproofing
         and Drainage                      Information was not available regarding any foundation
                                           waterproofing and drainage systems that might exist.
     15. Construction Documentation        No construction observation or testing documentation has
                                           been reviewed; however, no significant construction-related
                                           deficiencies were observed.
     16. Sub-Consultant Investigation      A roofing sub-consultant was not engaged to review the
                                           building.
     17. Adequacy                          No instances were found of roof leaks or foundation wall
                                           leaks.



                                                  21
WILSON & STRICKLAND, INC.                                                            SAMPLE OFFICE BUILDING
WSI 3663                                                  Property Condition Survey and Capital Replacement Analysis



                     VII. BUILDING ENVELOPE and EXTERIOR
                                             (Continued)

B.     EXTERIOR WALLS
     1. Type                              The building elevations consist of alternating sections of
                                          punched windows in aggregate-finished precast concrete, or
                                          smooth-finished precast concrete, or aluminum in glass
                                          curtainwall systems. The aluminum and glass curtainwall
                                          system at the west side encompasses the first floor entry area,
                                          and there is no differentiated storefront system. EIFS is used
                                          at exterior wall finishes of the penthouse structure..
     2. Wall Expansion
        and Contraction                   The modular construction of the architectural precast concrete
                                          panels and windows allows expansion and contraction.
                                          Sealant joints are used between the individual precast
                                          concrete panels and between precast panels and windows.
     3. Wall Flashing and Drainage        Joints between the windows and architectural precast
                                          concrete spandrels appeared to be sealed with silicone
                                          sealants over backer rod to create a barrier type system for
                                          excluding water. Water resistance of windows is described
                                          below under Window Sealing and Drainage on page 23.
     4. Air and Moisture Barrier          A secondary drainage plane such as a building wrap is likely
                                          not installed behind the precast concrete systems. Since a
                                          secondary drainage plane does not exist, aggressive
                                          maintenance of joint sealants is required to maintain the
                                          barrier system for excluding water.
     5. Joint Sealants                    Silicone joint sealant materials appeared to have been used in
                                          the building facades.
     6. Architectural Metals              The only architectural metals used in the building facade are
                                          the window frames.
     7. Coatings and Surface Treatments   The aluminum framing of the windows and curtainwall
                                          sections is likely finished with a fluoropolymer or anodized
                                          aluminum coating; however, this could not be confirmed.
     8. Warranties                        Neither warranty documentation nor construction
                                          specifications have been provided; however, the window
                                          frame finish warranty is likely to remain in force.
     9. Sub-Consultant Investigations     A building envelope sub-consultant was not engaged for this
                                          assignment.
     10. Construction Documentation       No construction observation or testing documentation has
                                          been reviewed; however, no significant construction-related
                                          deficiencies were observed.
     11. Overall Adequacy                 Shop drawings for the window systems have not been
                                          examined, and actual details are contained in these drawings.




                                                 22
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                     VII. BUILDING ENVELOPE and EXTERIOR
                                         (Continued)

C.     EXTERIOR SOFFITS and CORNICE
     1. Cornice Construction          Parapet walls are extensions of the precast concrete wall
                                      panels.
     2. Fascia                        Not applicable.
     3. Soffit                        Details of soffit construction were not available.
     4. Overall Adequacy              Design details were not available; however, no systemic soffit
                                      or cornice problems were observed.

D.     THERMAL INSULATION and VAPOR RETARDERS
     1. Roof                          Details of roof insulation were not available.
     2. Phenolic Foam Insulation      Phenolic foam roof insulation was specified and sold as a
                                      component in many low-slope, built-up and single-ply roof
                                      systems between 1981 and 1992. Phenolic foam (a
                                      potentially corrosive product) was likely not in use as roof
                                      insulation at the time of construction.
     3. Ceilings                      No insulation is used above the suspended acoustical ceilings
                                      of the air-conditioned office space unless installed by certain
                                      tenants.
     4. Exterior Walls                Insulation is likely provided behind precast panels and glass
                                      spandrel panels; however, details were not available.
     5. Tenant Separation Walls       Tenant build-out drawings have not been examined.
     6. Floors/Soffits                Details of soffit insulation were not available.
     7. Occupied Floors               Occupied floors do exist over the exposed loading area.
     8. Foundations/Slabs             Details of perimeter foundation/slab insulation was not
                                      available.
     9. Overall Adequacy              No detailed information of thermal insulation was available.

E.     WINDOWS and CURTAINWALL
     1. Type                          The vision panels appeared to be 1-inch, insulated glass;
                                      however, this could not be confirmed. Spandel glass with
                                      opacifier is also provided at the curtainwall sections.
                                      Windows are fixed and not operable.
     2. Storefront Systems            First floor storefront systems match the curtainwall system
                                      above.
     3. Window Sealing and Drainage   Windows include rubber glazing gaskets and apparently
                                      include provisions for weeping of water that moves past the
                                      gaskets (most likely during rain with high wind). No
                                      deterioration of window gaskets was observed; however, a
                                      few displaced gaskets were found, and maintenance-type
                                      repairs are needed. Water resistance of wall systems is




                                             23
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                      VII. BUILDING ENVELOPE and EXTERIOR
                                           (Continued)

                                        described above under Wall Flashing and Drainage on page
                                        22.
     4. Skylights                       There are no skylights.
     5. Window Covers                   Horizontal mini blinds are installed at the office building
                                        windows.
     6. Window Film                     No applied window film was observed.
     7. Window-washing Equipment        No window washing equipment or tie-offs were observed at
                                        the roofs.
     8. Window Replacement              Building management reports no problem with chronic
                                        window breakage. If such failures were to occur sporadically
                                        in the future, replacement should be completed as normal
                                        repair and maintenance. Due to the favorable history, no
                                        major capital replacement is anticipated relating to the
                                        windows. A few replacement windows were observed at the
                                        first floor storage space at the parking structure.
     9. Weather Tightness               With a few exceptions, sealant joints in façade systems
                                        (observed from ground and roof level) generally appeared in
                                        good condition. Evidence of leaks was found at two locations
                                        on the elevated floors, indicating maintenance-type sealant is
                                        needed.
     10. Manufacturer Warranty          Warranty information has not been provided. Manufacturer
                                        warranties are likely to exist for the silicone joint sealants.
     11. Structural Classification      Window specifications were not available. The structural
                                        classification of the windows is not known.
     12. Construction Documentation     No construction observation or testing documentation has
                                        been reviewed; however, no significant construction-related
                                        deficiencies were observed.
     13. Sub-Consultant Investigation   A building envelope sub-consultant was not engaged for this
                                        assignment.
     14. Overall Adequacy               Detailed plans and shop drawings were not available;
                                        however, the lack of reported problems indicates adequate
                                        design of the window systems.

F.     EXTERIOR DOORS and FRAMES
     1. Type                            At the building entrances, storefront doors are single glazed,
                                        tempered glass in polished, stainless steel frames.
     2. Overall Adequacy                Detailed specifications and shop drawings were not available.




                                               24
WILSON & STRICKLAND, INC.                                                            SAMPLE OFFICE BUILDING
WSI 3663                                                  Property Condition Survey and Capital Replacement Analysis



                                    VIII. INTERIORS
A.     INTERIOR USE AREAS
     1. Common Areas                     Common areas include the main lobby, elevator lobbies at
                                         each floor, and common corridors on multi-tenant floors.
                                         Men’s and women’s restrooms are also provided on each
                                         floor.
     2. Tenant Areas                     All elevated levels are typically used as office space. All but
                                         the first, fourth, sixth, and ninth floors were occupied by
                                         single tenants.
     3. Operations Areas                 Building maintenance areas are located at the basement level
                                         of the office building and the first floor of the parking
                                         structure.

B.     INTERIOR COMMON AREA
     1. Lobbies                          The main lobby is finished with stone flooring and wall
                                         accents, wood paneling, wall coverings, and a painted
                                         gypsum board ceiling.
     2. Corridors                        Typical corridors have carpeted floors, painted or vinyl
                                         covered walls, and suspended acoustical ceilings. Typical
                                         interior doors at tenant-accessible common areas are solid-
                                         core wood. Lever hardware is typically used at tenant-
                                         accessible common area doors.
     3. Elevator Cabs                    Elevator cab finishes typically include carpeted floors, stone
                                         base, and wood paneled walls.
     4. Stairs                           Stairs typically have painted walls and handrails.
     5. Restrooms                        Restroom finishes include ceramic tile floors and a 5-foot-
                                         high wet wall at urinals, and vinyl wall coverings. There is
                                         an entry vestibule with carpet and vinyl wall covering.
                                         ADA issues are discussed below under XII DISABLED
                                         ACCESSIBILITY on page 44.
     6. Recreation Facilities            There are no recreational facilities.
     7. Other                            No other facilities are provided.
     8. Previous or Planned Renovation   Property management indicated the finishes at the multi-
                                         tenant floors were replaced about two years ago. No details
                                         were provided regarding planned renovations.
     9. Overall Adequacy                 Interior construction and finishes are common for this class of
                                         property.
     10. Capital Expenditures            Ongoing corridor and elevator lobby remodeling is
                                         anticipated at multi-tenant floors. The main lobby finishes
                                         are primarily stone flooring and wall accents, wood paneling,
                                         wall coverings, and a painted gypsum board ceiling, and no
                                         capital replacement costs are anticipated. Finishes at single-
                                         tenant floors are assumed provided by the tenants, and it is
                                         assumed these floors will remain single tenant occupancy.
                                         Elevator cab finishes include carpeted floors, stone base, and


                                                25
WILSON & STRICKLAND, INC.                                                              SAMPLE OFFICE BUILDING
WSI 3663                                                    Property Condition Survey and Capital Replacement Analysis



                                         VIII. INTERIORS
                                              (Continued)

                                           wood paneled walls. Repair and maintenance efforts will be
                                           required to keep these finishes in top condition, and
                                           remodeling of these finishes is not anticipated during the ten-
                                           year analysis period.

C.     INTERIOR TENANT AREA
     1. General Description                There are seven, single-tenant floors including the second,
                                           third, fifth, seventh, eighth, tenth, and eleventh. The
                                           remaining floors contain multiple tenants. The Offering
                                           Memorandum indicates unleased space included one space
                                           (1,470 rentable square feet) at the ninth floor and the entire
                                           tenth floor (28,392 rentable square feet total).
     2. Commercial and Retail              A café tenant occupies space at the first floor of the building.
     3. Offices                            Interior wall finishes consist primarily of gypsum board on
                                           metal framing with vinyl wall covering or paint. Typical
                                           interior doors at tenant accessible common areas are solid-
                                           core wood. Lever hardware is typically used. Suspended
                                           lay-in acoustic ceilings are typically installed at tenant areas
                                           except the eighth floor, where the building structure is
                                           exposed. Carpet is typically used at tenant area floors.
     4. Tenant Restrooms                   Small restrooms within tenant spaces were not observed.
     5. Mezzanines                         No mezzanine space was observed.
     6. Special Tenant Improvements        No special improvements (e.g., interconnecting stairs) were
                                           observed.
     7. Warehouse                          There is no warehouse space.
     8. Previous or Planned Renovation     Renovations were not in progress at tenant spaces observed.
     9. Overall Adequacy                   Interior finishes are standard for this type of property in this
                                           market.

D.     INTERIOR OPERATIONS AREAS
     1. Management Offices                 The management office encompasses 1,482 square feet of
                                           space at the ninth floor.
     2. Operations Storage                 Storage for maintenance is provided at the janitor closets, the
                                           basement level maintenance workshop, and the first level of
                                           the parking structure.
     3. Special Use Attics                 There is no attic space.
     4. Janitor Closets                    Janitor closets are provided on each office floor.
     5. Mechanical, Electrical,
        and Telecom Rooms                  These rooms typically have non-painted concrete or gypsum
                                           board walls, sealed concrete floors, and exposed structure
                                           ceilings.




                                                  26
WILSON & STRICKLAND, INC.                                                             SAMPLE OFFICE BUILDING
WSI 3663                                                   Property Condition Survey and Capital Replacement Analysis



                                         VIII. INTERIORS
                                              (Continued)

     6. Previous or Planned Renovation     No previous or planned renovations of tenant spaces were
                                           reported.

E.    NOISE CONTROL
     1. Separation Walls                   Details of acoustic insulation were not available.
     2. Potential Problem Areas            Property management reported no tenant spaces that were
                                           extraordinarily impacted by equipment or other noise.
     3. Overall Adequacy                   Details of acoustic insulation are unknown; however, the
                                           property manager indicated no knowledge of noise problems.

F.    SPECIAL INVESTIGATIONS
     1. Unoccupied Space Status            The vacant tenth floor was observed, and no problems were
                                           evident.
     2. Chronically Vacant Spaces          No evidence was found of physical problems creating
                                           chronically vacant spaces.
     3. Moisture and Suspected
        Mold Investigation                 The Seller refused to complete the Property Manager
                                           questionnaire, which contains questions regarding knowledge
                                           of moisture and mold issues. Discussion of this issue as it
                                           relates to mechanical systems is contained below under the
                                           Moisture Damage Investigation heading on page 32.
     4. Mold Prevention and Mitigation     Property management did not respond to inquiries regarding
                                           mold mitigation and prevention practices.
     5. Ongoing Operation and
        Maintenance                        Recommendations concerning corrections and ongoing
                                           monitoring are contained in the exhibits.




                                                  27
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                        IX. MECHANICAL and ELECTRICAL
A.     HEATING, VENTILATING, and AIR CONDITIONING
     1. Office Space Air Distribution   Air conditioning is by a variable-air-volume single duct
                                        system. Supply air is from direct-expansion, water-cooled,
                                        self-contained units (SCU’s). SCU’s are typically located at
                                        mechanical rooms on each floor. Each “stack” of mechanical
                                        rooms includes associated condenser water risers, outside air
                                        duct risers, condensate drain systems, etc. The mechanical
                                        rooms also contain electrical bus duct risers and electrical
                                        panels. Variable air volume (VAV) terminal units control air
                                        distribution from the SCU’s. Cooling air from the SCU’s is
                                        delivered to the occupied space through medium-pressure,
                                        galvanized metal, insulated supply air ducts. Return air for
                                        each floor is through the ceiling plenums and into mechanical
                                        rooms at each floor.
     2. Central Plant Equipment         Condenser water to the SCU’s is from a two-cell, induced
                                        draft (draw through), counter-flow cooling tower (Evapco
                                        model AT24-418B) located at the roof. The cooling tower
                                        has a nominal capacity of 1,110 tons. The condenser water
                                        system includes an open, cooling tower loop that is not
                                        separated from the building loop by a heat exchanger. Open
                                        loop circulation is provided by two, 1,840 g.p.m. pumps. The
                                        majority of heating demands are satisfied by VAV units with
                                        electric reheat. Also, electric unit heaters are used in various
                                        locations.
     3. Special Cooling
        and Heating Equipment           Special (e.g., computer room) cooling equipment is installed
                                        and maintained by certain tenants.
     4. Thermal Storage                 Thermal storage is not employed.
     5. Design Conditions               No information was available regarding the original design
                                        indoor or outdoor conditions.
     6. HVAC Zoning                     At the office floors, the VAV’s provide for numerous interior
                                        zones. This configuration is common for this type of system.
                                        Individual thermostats are provided at each zone.
     7. Tenant Supplemental Cooling     Base building systems (e.g., supplemental condenser water
                                        loop) are not provided for tenant supplemental cooling.
     8. System Design Modifications     Investigations revealed no changes in the building systems
                                        that altered the original design.
                                        Equipment replacements that did not significantly alter the
                                        original design are described below under Replacement and
                                        Rehabilitation, on page 30.
     9. Ventilation                     Outside air is provided by a fan located at the penthouse
                                        mechanical room. The capacity of the fan is unknown. The
                                        main toilet exhaust fan is also located in the mechanical
                                        penthouse (capacity unknown).




                                               28
WILSON & STRICKLAND, INC.                                                       SAMPLE OFFICE BUILDING
WSI 3663                                             Property Condition Survey and Capital Replacement Analysis



                           IX. MECHANICAL and ELECTRICAL
                                        (Continued)

   10. Controls                      The Trane “Tracer Summit” control system is original and
                                     includes 100% digital/electric controls.
   11. Air Quality                   Property management reported no problems with air quality
                                     within the building.
   12. Cooling Tower Drift
       and Condenser Water Quality   The main cooling tower is located within a screened
                                     enclosure at the south side of the penthouse structure, and
                                     the discharge elevation of the cooling tower is near the roof
                                     elevation of the penthouse structure. The outside-air intake is
                                     located near the north end of the penthouse structure. This
                                     arrangement appears to adequately protect against flow of
                                     potentially contaminated air from the cooling tower into the
                                     outside air intake.
                                     Cleaning and routine maintenance for the cooling towers are
                                     provided by the maintenance staff. Water treatment
                                     chemicals, testing, and emergency service are contracted.
                                     Open loop water treatment includes a scale/corrosion
                                     inhibitor and biocides.
   13. Energy Efficiency             Night set-back and water-side economizer are provided.
                                     Variable-frequency drives are installed on the main condenser
                                     water pumps, and most of the SCU’s. No high-efficiency
                                     motors are installed on the mechanical equipment.
   14. Electrical Demand Control     There are no HVAC control system functions used for
                                     electrical demand control. Electric demand control using
                                     emergency generator systems is discussed below in section
                                     D. ELECTRICAL.
   15. Noise and Vibration Control   Equipment mounting employs inertia pads and/or vibration
                                     isolators to help reduce noise transmission.
   16. Refrigerant Phase-Out         The SCU’s use HCFC-22 refrigerant, which is subject to
                                     being phased out. Despite the scheduled phase out, it is
                                     assumed availability of HCFC-22 will not drive equipment
                                     life-cycle replacement decisions during the analysis period.
   17. Refrigerant Conservation      HCFC-22 operates under positive pressure; therefore, intake
                                     of non-compressible gases is not a concern, and purge
                                     systems are not needed.
   18. Refrigerant Safety            All refrigerants pose some level of toxicity, but HCFC-22 is
                                     one of the safer refrigerants. ASHRAE Standard 34 classifies
                                     HCFC-22 as A1 (lower toxicity and no flame propagation).
   19. Freeze Protection             Sump heaters are installed at the cooling tower.
   20. Test and Balance              No original test and balance documentation was made
                                     available.
   21. Manufacturers Warranties      Manufacturer warranty documentation has not been provided.
   22. Contractor Guarantee          Warranty documentation has not been provided.


                                            29
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                        IX. MECHANICAL and ELECTRICAL
                                           (Continued)

   23. Replacement and Rehabilitation   No major replacements of base building HVAC equipment
                                        were reported by property management. The cooling tower
                                        was rehabilitated within the last year by an internal coating
                                        and sealing of pin holes in the basins.
                                        Equipment replacements that altered the original design are
                                        described above under System Design Modifications, on page
                                        28.
   24. Planned Rehabilitation
       and Repairs                      Property management did not report any plans for future
                                        rehabilitation or repair. During the ten-year analysis period
                                        addressed herein, replacement projects are identified;
                                        however, these may be considered normal repair and
                                        maintenance.
   25. Service Clearances               Manufacturer recommended service clearances around
                                        equipment were not available, but no clearance problems
                                        were obvious.
   26. Maintenance                      Maintenance accomplished by the in-house staff includes
                                        annual cooling tower cleaning, coil cleaning as needed,
                                        condensate pan cleaning as needed, and monthly filter
                                        changing. Water treatment and non-routine maintenance is
                                        generally handled by outside contractors.
   27. Moisture Damage Investigation    Observation of SCU plenums was not done.
   28. Equipment and Systems
       Operational Status               All mechanical systems appeared operational at the time of
                                        site observations.
   29. Adequacy of Cooling Systems      The cooling tower design indicates a flow rate of 3330 gpm
                                        (1110 tons at 10-degree delta T). The combined condenser
                                        water pump capacity of 3680 gpm slightly exceeds the
                                        cooling tower design flow rate; however, the pumps are
                                        controlled by variable frequency drives. The 1110-ton
                                        capacity applied to the reported rentable area of 289,879
                                        square feet produces a cooling ratio of approximately
                                        261 square feet per ton of cooling, which indicates cooling
                                        capacity higher than normal. The combined capacities of the
                                        self-contained units were not available; however, property
                                        management reports no problems with cooling capacity.
   30. Adequacy of Heating Systems      Property management reported no problem with adequacy of
                                        heating systems.
   31. Adequacy of Building
       Pressurization                   Property management reported the building is operated under
                                        positive pressure with respect to the exterior.
   32. Adequacy of Outside Air Supply   Detailed information was not available regarding outside air
                                        supply rates to the building.




                                               30
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                         IX. MECHANICAL and ELECTRICAL
                                           (Continued)

     33. Sub-Consultant Investigation   An HVAC sub-consultant was not engaged for this
                                        assignment.
     34. General System Adequacy        The quality of components and installation of HVAC systems
                                        appeared average for a property of this class.
                                        An internal inspection of the piping services was not carried
                                        out; however, the building operator did not report historical
                                        problems with HVAC piping deterioration.
                                        The condenser water system is an open loop that does not
                                        include a heat exchanger and separate building loop. Open-
                                        loop water can contain contaminants that are “scrubbed” from
                                        the outside air through normal operation of the cooling tower;
                                        therefore, aggressive maintenance is required to maintain
                                        cleanliness and proper performance of the condenser tube
                                        bundles and the economizer coils in each SCU.
                                        Use of variable frequency drives on condenser water pumps
                                        presents the risk of inadequate water flow through the cooling
                                        towers, which can cause scale accumulation and other
                                        problems. While cooling tower fans are operating, flow rates
                                        should not fall below the manufacturer’s stated minimum
                                        value.

B.     PLUMBING
     1. Piping                          Observed domestic water piping is copper. Storm drainage
                                        piping is cast iron, and soil, waste and vent piping is also cast
                                        iron. Fire sprinkler piping is black steel.
     2. Domestic Water Distribution     Domestic water distribution is by an up-feed system that
                                        includes a duplex pump set located at the basement pump
                                        room.
     3. Hot Water System                Six electric water heaters provide hot water for restrooms.
     4. Sanitary Collection System      Sanitary collection for the core areas and wet column risers is
                                        by a gravity connection to the public sewer. Grease traps and
                                        a lift station exist at the north side of the building to serve the
                                        tenant test kitchen located at the north side of the first floor.
     5. Condensate Collection System    Condensate typically is piped to floor drains that are part of
                                        the sanitary collection system described above.
     6. Stormwater Collection System    The main roof has internal drains that are piped through rain
                                        water leaders to the site storm drainage system. The parking
                                        structure also includes internal drains and a rain leader
                                        system.
     7. Natural Gas System              A gas meter located at the east side of the building is
                                        dedicated to the first floor tenant’s test kitchen.
     8. Groundwater Collection System   No details were available regarding groundwater collection or
                                        foundation drainage systems that might exist at the perimeter
                                        of the basement level.


                                               31
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                             IX. MECHANICAL and ELECTRICAL
                                            (Continued)

     9. Fuel Storage and Distribution    Diesel fuel storage for the base-building emergency generator
                                         is a base tank manufactured as part of the generator set
                                         located at the truck court on the north side of the building.
                                         A tenant generator set with a base tank also exists on site to
                                         the northeast of the building.
     10. Radon Venting                   No radon venting systems were observed, and radon venting
                                         is typically not employed at office buildings.
     11. System Modifications            No findings were made regarding modifications to the
                                         original design.
     12. Freeze Protection               No special freeze protection measures were evident.
     13. Minimum Facilities              Typical women’s toilet rooms include five water closets and
                                         four lavatories. Typical men’s toilet rooms include two water
                                         closets, two urinals, and three lavatories.
     14. Fixture Quality and Age         Vitreous china bathroom plumbing fixtures are from the
                                         original construction.
     15. Adequacy                        No significant problems have been identified or reported with
                                         regard to plumbing systems. An internal inspection of the
                                         piping services was not carried out; however, the building
                                         operator did not report historical problems with plumbing
                                         piping deterioration.
     16. Fire Sprinkler
         and Standpipe System            The office building is protected by a complete fire sprinkler
                                         system including standpipes and an electric-engine-driven
                                         fire pump. The parking structure includes a dry-standpipe
                                         system. These systems are reviewed in more detail under
                                         Sprinkler System on page 42
     17. Moisture Damage Investigation   No problems relating to leaks or moisture damage from
                                         plumbing leaks have been reported by the property manager.
                                         No evidence was found of water damage relating to plumbing
                                         systems. Potential moisture damage associated with HVAC
                                         systems was previously discussed herein (page 30).
     18. Sub-Consultant Investigation    A plumbing sub-consultant was not engaged for this
                                         assignment.
     19. Overall Adequacy                No problems were discovered with design and/or operation of
                                         plumbing systems. Property management reported no
                                         problems with domestic water capacity or delivery, chronic
                                         plumbing leaks, venting problems, or stop-ups.

C.     ELECTRICAL
     1. Description of Service           The main building electrical service appeared to be from the
                                         power company pad-mounted transformers located at the
                                         paved area on the north side of the building.
     2. Service Disconnect Arrangement   The main electrical room includes three main switchboards,
                                         each of which appeared to be main disconnects.


                                                32
WILSON & STRICKLAND, INC.                                                                     SAMPLE OFFICE BUILDING
WSI 3663                                                           Property Condition Survey and Capital Replacement Analysis



                            IX. MECHANICAL and ELECTRICAL
                                                     (Continued)

    3. Building Distribution                     The main switchboard labeled “Busway” is rated
                                                 277/480 volt, 3,000 amp. The main switchboard labeled
                                                 “Bus B” is rated 277/480 volt, 2,500 amp. The main
                                                 switchboard labeled “Distribution Section” is rated
                                                 277/480 volt, 1,200 amp. Under-floor electrical distribution
                                                 systems were not observed.
    4. Fault Current Protection                  No information was available regarding available fault
                                                 current from the power company transformers and associated
                                                                                        5
                                                 coordination with electrical equipment.
    5. Emergency Power                           A diesel-driven 500 kVA, 400 kW generator set located at the
                                                 paved area on the north side of the building provides
                                                 emergency power to emergency egress lighting, exit signs,
                                                 fire alarm, fire pump, and elevators. The base building diesel
                                                 storage tank (capacity not available) is located in the base of
                                                 the generator set.
                                                 One tenant also has an emergency generator set that is located
                                                 just east of the paved area on the north side of the building.
    6. Circuitry                                 Specifications were not provided for examination, and the
                                                 extent of any aluminum conductors is not documented.
    7. Type of Lighting                          A combination of incandescent and fluorescent lighting is
                                                 provided. Most of the office building and parking structure
                                                 lighting is energy efficient T-8 fixtures for general lighting.
    8. Metering                                  No information was received regarding submetering of tenant
                                                 electrical use.
    9. GFCI Personnel Protection                 GFCI protection at electrical outlets was not observed at the
                                                 toilet rooms.
    10. Ground Fault
        Equipment Protection                     Ground fault equipment protection appeared to be installed at
                                                 all three of the main switchboards.
    11. Grounding and Bonding                    Grounding and bonding details were not available.
    12. Surge Suppression
        and Phase Loss Protection                No surge suppression devices were observed on the electrical
                                                 services. Protection of individual equipment will be the
                                                 responsibility of each tenant.
    13. Power Factor                             The building did not appear to include any out-of-the-
                                                 ordinary loading that might produce poor power factor (e.g.,



5 The available short-circuit current (also called fault current) can occur during a low-impedance, phase-to-phase or
phase-to-ground connection – a "short circuit." Fault currents are generally very large and hazardous. Only the
combined impedance of the object responsible for the short, the conductor (wire or bus bar), and the transformer limit
its magnitude. One objective of electrical design is to minimize the potential damaging effect of a fault.
Coordinating the sizes of circuit breakers and fuses is a Code requirement that allows these protective devices to
isolate only the affected circuits.


                                                         33
WILSON & STRICKLAND, INC.                                                             SAMPLE OFFICE BUILDING
WSI 3663                                                   Property Condition Survey and Capital Replacement Analysis



                        IX. MECHANICAL and ELECTRICAL
                                             (Continued)

                                          excessive electronic equipment). Power factor correction
                                          equipment was not installed.
   14. Lightning Protection               The office building is provided with a lightning protection
                                          system.
   15. Electric Demand Control            There was no capability implemented for electrical demand
                                          reduction by diverting loads to the emergency generator or by
                                          using paralleling switchboard gear.
   16. Energy Efficiency                  Lighting is not controlled by the building automation system.
                                          Generally, common area and most tenant lighting is manually
                                          switched. Main lobby and parking structure lighting is
                                          controlled by a photocell. Most of the office building and
                                          parking structure lighting includes T8 fluorescent lamps
                                          operating on electronic ballasts.
   17. Television Wiring                  No base building television wiring systems were observed.
   18. Telephone Wiring                   Telecom cables are distributed from a central point-of-
                                          presence room located at the basement level.
   19. Data Wiring                        Any special wiring to the tenant spaces is done as part of
                                          tenant improvements.
   20. EMF Radiation                      EMF interference can cause problems with tenant's computer
                                          screens, commonly resulting in a negative perception of the
                                          space. Potential problem areas include office space located
                                          over electrical equipment and feeders (first floor north). Field
                                          measurements with a gauss meter were not completed by this
                                          office.
   21. Tenant Supplemental Systems        Uninterruptible power supply systems were not observed.
   22. Maintenance/Inspection             Property management indicates infra-red scans of distribution
                                          equipment and switchgear are performed annually. A regular
                                          maintenance program should be continued and should (at a
                                          minimum) follow the guidelines of NFPA “70B” to include
                                          tightening electrical connections and exercising circuit
                                          breakers in distribution panels.
   23. Feeder and Panelboard Capacities   Based on main switchboard capacities in non-derated volt-
                                          amperes (VA) and rentable square feet (RSF), the total capacity
                                          ratio for the building services is about 19 VA/RSF. This ratio
                                          does not represent actual electrical loads or available capacity
                                          but is a factor for comparing the relative size of the building
                                          service.
                                          Tenants can use the base building distribution panels at each
                                          floor’s mechanical/electrical room for their electrical circuits.
                                          If a tenant’s improvements exceed the capacity available in
                                          the base-building panels, the tenant must add bus plugs and
                                          distribution panels.
   24. Historical Demand/Capacity         Power bills were not provided for review. The National
                                          Electrical Code allows for addition of loads beyond 125% of


                                                 34
WILSON & STRICKLAND, INC.                                                         SAMPLE OFFICE BUILDING
WSI 3663                                               Property Condition Survey and Capital Replacement Analysis



                        IX. MECHANICAL and ELECTRICAL
                                         (Continued)

                                      the historical maximum kVA demand figures if capacity
                                      exists.
   25. Available Capacities           Property management reported no problem with electrical
                                      service capacity, and the power supply capacity to the
                                      building is above average for this type of facility. Detailed
                                      analysis (beyond the scope of this review) would be required
                                      to determine actual loading in distribution panels and actual
                                      excess load capacity. Also, available capacity in distribution
                                      panels does not translate to equivalent available capacity for
                                      the entire floor or the entire building due to potential limits in
                                      transformer, feeder, or building service capacity.
   26. Sub-Consultant Investigation   An electrical sub-consultant was not engaged for this
                                      assignment.
   27. Overall Adequacy               Based on information provided by the property manager and
                                      rule of thumb calculations presented above, the electrical
                                      service capacity appears adequate.




                                             35
WILSON & STRICKLAND, INC.                                                     SAMPLE OFFICE BUILDING
WSI 3663                                           Property Condition Survey and Capital Replacement Analysis



                             X. CONVEYING SYSTEMS
A.    ELEVATORS
     1. Description                The office building is served by four passenger elevators
                                   (PE1 through PE4). Elevators PE1 through PE4 serve levels
                                   L and one through eleven. A dedicated service elevator
                                   (SE5) serves the basement level (with a rear opening) in
                                   addition to levels L and one through eleven. The
                                   penthouse/roof level (twelve) is not reached by elevators.
                                   The parking structure is served by two passenger elevators
                                   (SE6 and SE7). Elevators PE1 through PE4 serve levels L
                                   and one through six. The top parking level (seven) is not
                                   reached by elevators.
     2. Capacity and Speed         The office building passenger elevators (PE-1 through PE-4)
                                   have reported capacities of 3,500 pounds and speeds of
                                   500 feet per minute.
                                   The office building service elevator (SE-5) has a reported
                                   capacity of 4,500 pounds and a speed of 500 feet per minute.
                                   The parking structure elevators (SE-6 and SE-7) have
                                   reported capacities of 3,500 pounds and speeds of 150 feet
                                   per minute.
     3. Equipment Type             The office building traction elevators and are located at a
                                   penthouse equipment room. The parking structure elevators
                                   are hydraulic, and the equipment room is at level one of the
                                   parking structure.
     4. Controls                   Office building elevator controls are reported to be “Swift
                                   Futura” microprocessor-based controls. The parking
                                   structure elevators have Fujitec microprocessor-based
                                   controls.
     5. Cab and Door Dimensions    Office building elevator cabs are 62 inches by 79 inches;
                                   office building elevator doors are 42-inch by 96-inch, single
                                   speed, center-opening.
                                   Office building service elevator doors are 48-inch by 96-inch,
                                   two speed, center-opening.
                                   Parking structure elevator doors are 42-inch by 84-inch,
                                   single speed, center-opening.
     6. Emergency Communication    All elevators have push-button emergency communication
                                   systems.
     7. Power Outage Operation     One office building elevator at a time is operated on
                                   emergency power during a power failure to allow discharge
                                   of passengers. Details of power outage operation were not
                                   available for the parking structure elevators.
     8. Machine Room               The Fujitec hoist machines appeared in good operating
                                   condition, although a small oil leak was evident at one
                                   machine. Continual preventive maintenance must be
                                   accomplished to realize long-term use of these machines.



                                          36
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                                X. CONVEYING SYSTEMS
                                            (Continued)

   9. Firefighter's Service and Recall   Property management indicated Phase I and Phase II
                                         firemen’s service and recall are installed with the elevator
                                         systems. Elevators recall to the first floor with alternate
                                         recall to the second floor.
   10. Tenant Space Access Control       There are access control systems installed in the elevators.
   11. Expansion Capacity                There is no existing hoistway space for expanding the
                                         elevator systems.
   12. Maintenance                       Elevator maintenance is handled by a service contract with
                                         Fujitec. Observations were not completed at hoistways or car
                                         tops; therefore, the level of maintenance and cleanliness were
                                         not determined. Property management indicated the service
                                         contractor carries out a weekly maintenance routine.
   13. Roof Access                       None of the elevators serve the mechanical penthouse level.
   14. Governmental Compliance           Inspection certificates for the elevators were not provided for
                                         review.
   15. Elevator Drawings                 Drawings are kept in the elevator machine room.
   16. Sub-Consultant Investigation      An elevator sub-consultant was not engaged for this due
                                         diligence assignment.
   17. Level of Service                  One passenger elevator is provided for each 60,500 square
                                         feet of estimated usable space at the destination office floors.
                                         This figure is generally outside the acceptable rule-of-thumb
                                         range for a Class-A office building; however, this ratio is not
                                         an accurate indicator of quality of service, particularly due to
                                         variation in elevator speed.
                                         An elevatoring study was not provided by the Seller, but a
                                         cursory analysis has been completed by this office. Due to
                                         difficulty in obtaining peak passenger activity on the
                                         passenger elevators, it is not possible to directly measure
                                         accurate waiting time data. However, computer modeling
                                         was performed based on a fully occupied building with a
                                         population of 1,333 people at the second through eleventh
                                         floors. This population is based on 182 square feet per
                                         person over 242,583 square feet of total usable area. This
                                         population is the equivalent of 5.5 people per 1,000 square
                                         feet of usable area, which is not an overly conservative
                                         occupant density.
                                         The elevators generally do not appear to provide an adequate
                                         level of service for a Class A office building. The building
                                         population handling capacity of the passenger elevators is
                                         slightly less than the expected range for this type of building,
                                         and the waiting times are relatively high for a class A office
                                         building.
                                         The recommended building population handling capacity of
                                         the elevators in a diversified, multi-purpose office building is


                                                37
WILSON & STRICKLAND, INC.                                                     SAMPLE OFFICE BUILDING
WSI 3663                                           Property Condition Survey and Capital Replacement Analysis



                              X. CONVEYING SYSTEMS
                                      (Continued)

                                   10 to 11 percent of the destination floor population in five
                                   minutes. The elevators can perform near this handling
                                   capacity range with calculated maximum handling capacity
                                   of 9.8%.
                                   The elevators cannot provide industry-accepted waiting
                                   times. Calculated Interval (the average time between
                                   elevators during a peak usage period) at the maximum
                                   handling capacity is 35.2 seconds versus a suggested range of
                                   25 to 30 seconds. This Interval is calculated during the peak
                                   arrival period, assuming no down traffic; however, this is not
                                   a realistic assumption. Using a standard down traffic of 10%
                                   of the population served, the calculated Interval increases to
                                   40.7 seconds. Average waiting time is typically calculated to
                                   be 60% of the Interval.
                                   The traffic study did not include observations of actual traffic
                                   and elevator loading; therefore, a comparison to theoretical
                                   values cannot be made. Interval and waiting time are
                                   significantly affected by the number of passengers
                                   loading/unloading and inter-floor traffic. Also, maintenance
                                   adjustment of the elevators will affect performance.
   18. Adequacy                    The conventional methods for reducing waiting times are
                                   adding elevators or increasing speed of existing elevators;
                                   however, these options are likely not cost effective or not
                                   feasible. A third option is to install a real-time dispatching
                                   system that automatically allocates and groups passenger
                                   destinations to specific elevators. The only control system
                                   that currently has this capability is the Schindler
                                   "Miconic 10;" however, additional systems may be available
                                   when these elevators are modernized. Recommendations
                                   contained in the exhibits are based on the assumption any
                                   measures toward elevator performance improvements will be
                                   completed at the time of a future elevator modernization
                                   project.
   19. Code Issues                 No known Code violations with the elevator systems have
                                   been discovered; however, detailed inspections of elevator
                                   components were not carried out.
   20. Capital Expenditures        All elevators were manufactured and installed by Fujitec
                                   during initial construction and have not been modernized.
                                   Based on expected useful life for the installed equipment, the
                                   need for replacement of elevator controls, dispatching,
                                   wiring, door operators and related equipment, and signal
                                   fixtures is not expected during the analysis period. Reliable
                                   maintenance from Fujitec has created operational problems in
                                   other cities; however, it is assumed reliable service will be
                                   provided by Fujitec in Atlanta.




                                          38
WILSON & STRICKLAND, INC.                                                   SAMPLE OFFICE BUILDING
WSI 3663                                         Property Condition Survey and Capital Replacement Analysis



                            X. CONVEYING SYSTEMS
                                    (Continued)

B.    OTHER SYSTEMS
     1. Escalators               There are no escalators at this property.
     2. Other                    No additional conveyance systems (e.g., man lifts or
                                 dumbwaiters) were observed.




                                        39
WILSON & STRICKLAND, INC.                                                      SAMPLE OFFICE BUILDING
WSI 3663                                            Property Condition Survey and Capital Replacement Analysis



               XI. LIFE SAFETY and PROPERTY PROTECTION
A.    OCCUPANCY
     1. Occupancy Class            According to the current code, the office building is Use
                                   Group “B” and the parking structure is Use Group “S-2.”
     2. Construction Type          Type 1 (noncombustible) construction.
     3. Hazard of Contents         The building and parking structure are considered “ordinary”
                                   hazard for the purpose of the Life Safety Code (NFPA-101).
     4. High-Rise                  The office building is considered high-rise since it exceeds
                                   75 feet in height from the lowest level of fire department
                                   access to the top occupied level. The building meets certain
                                   special requirements for high rise buildings such as stair
                                   pressurization and a voice command system as part of the fire
                                   alarm system.
     5. Fire History               Property management stated no knowledge of fire incidents at
                                   the property.
     6. Current Code Conformance   The building may not conform to current Code with regard to
                                   changes since original construction. It is assumed the
                                   existing conditions are "Grandfathered" under previous
                                   versions of the Code; however, certain events might trigger
                                   the requirement to retrofit the buildings to current Code. A
                                   Code retrofit analysis has not been undertaken.

B.    MEANS OF EGRESS
     1. Components                 Components along egress paths are typical for this class of
                                   property and include corridors, stairs, stair landings,
                                   handrails, corridor and stair enclosures, doorways, door
                                   closing devices, etc. Exit signs are installed at all upper floor
                                   exit/stairwell doors and ground floor exits.
                                   Some stair doors are locked at some single-tenant floors,
                                   preventing re-entry onto a floor once in the stairwell. Door
                                   locks are arranged to unlock on power failure or fire alarm
                                   activation.
                                   Stairwells are protected by pressurization systems.
     2. Egress Path Protection     Drawings showing detail of fire resistant construction around
                                   corridors and stairs were not available.
     3. Capacity/Arrangement       There are two stairs located in the core area. Exit separation,
                                   egress capacity of stairs and corridors, and stair geometry
                                   were not analyzed and are assumed to have been in
                                   compliance at the time of original construction.
                                   Stair handrail and guardrail heights and dimensions may not
                                   comply with the current code for new construction (IBC
                                   1009.10 & 1013), but are assumed to be “grandfathered”
                                   under the original Code.




                                          40
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                 XI. LIFE SAFETY and PROPERTY PROTECTION
                                            (Continued)

     4. Travel Distance/Discharge
        from Exits                       The south stair discharges through the main lobby. The north
                                         stair discharges into a corridor at the basement level, which
                                         leads to the exterior on the north side of the building via an
                                         interior corridor. The Code permits 50% of the exits to
                                         discharge through the level of exit discharge in sprinklered
                                         buildings; therefore, the discharge arrangement of this stair is
                                         acceptable (IBC 1024).
                                         The north stair discharge corridor construction at the
                                         basement level is not known. This arrangement is Code
                                         compliant providing proper fire resistant construction
                                         separates the corridor from the surrounding spaces.
     5. Egress Lighting and Exit Signs   Exit and means-of-egress lighting are powered by the
                                         emergency circuits, which are served by the emergency
                                         generator.
     6. Wheelchair Egress                Egress from elevated floors by the wheelchair bound is a
                                         subject not adequately addressed in the codes. Elevators are
                                         the only means of egress (other than being carried down
                                         stairs) for these disabled persons, but the elevators are not
                                         usable during a fire except by fire department personnel.
                                         These shortcomings can be adequately managed with proper
                                         fire evacuation procedures by tenants and property
                                         management (coordinated with the local fire department) that
                                         recognize the special needs of the disabled.
     7. Overall Adequacy                 In general, no obvious deficiencies have been discovered
                                         associated with means of egress features; however,
                                         deficiencies may exist under current Codes.

C.     CONSTRUCTION FEATURES
     1. Structural Fire Resistance       Type 1 construction requires fire-rated protection of the
                                         structural frame and elevated floors.
     2. Fire and Smoke Control           Two-hour, fire-rated construction is assumed to exist around
                                         elevator, stair, and mechanical shafts. Generally, where
                                         HVAC ductwork penetrates fire-rated walls, fusible link fire
                                         dampers are installed.
     3. Guardrails                       A guardrail is installed where the second floor elevator lobby
                                         overlooks the main entry lobby.
     4. Overall Adequacy                 In general, life safety and property protection construction
                                         features appear to have been adequately designed and built at
                                         the time of original construction.

D.     BUILDING SERVICE EQUIPMENT
     1. Carbon Monoxide Detection        Carbon monoxide detection is not required or needed in the
                                         office spaces.



                                                41
WILSON & STRICKLAND, INC.                                                           SAMPLE OFFICE BUILDING
WSI 3663                                                 Property Condition Survey and Capital Replacement Analysis



                 XI. LIFE SAFETY and PROPERTY PROTECTION
                                            (Continued)

     2. HVAC                             Duct-mounted smoke detectors are installed at the supply and
                                         return air streams of SCU’s for automatically shutting down
                                         air conditioning equipment.
     3. Kitchen Exhaust                  No kitchen exhaust ducts are known to run to the roof level.
                                         The first floor test kitchen hoods exhaust through louvers at
                                         the north side of the building. The current Code (IMC
                                         506.3.12.2) allows no wall openings within three feet of the
                                         exhaust termination point. This provision may be violated in
                                         the current construction, since glazed openings exist just
                                         below the discharge louvers. However, theses windows are
                                         not operable.
     4. Elevator Recall                  Smoke detectors for activating elevator recall were observed
                                         in elevator lobbies. Smoke and heat detectors were observed
                                         in the machine rooms.
     5. Overall Adequacy                 No problems have been identified in the life safety features of
                                         building service equipment.

E.    FIRE PROTECTION
     1. Smoke Evacuation                 Tenant area and common area smoke evacuation systems are
                                         not installed in this building.
     2. Fire Alarm System                The EST (now GE Security) fire alarm system was installed
                                         as part of the original construction. Fire alarm system testing
                                         records were not provided for examination.
     3. Sprinkler System                 All office building areas are sprinklered with a wet pipe
                                         system except for certain areas such as the elevator
                                         equipment rooms. A dry-pipe sprinkler system protects the
                                         basement-level loading dock.
     4. Sprinkler Heads                  No recalled sprinkler heads were observed; although all head
                                         types were not closely inspected.
     5. Fire Pump                        The fire pump is located in the basement level pump room to
                                         boost the public water supply for standpipes and sprinklers.
                                         This is a 750-gpm, electric-motor-driven fire pump. There is
                                         a dedicated transfer switch for switching the fire pump to
                                         emergency generator power.
     6. Standpipe and Hose Equipment     A standpipe in the north stair enclosure feeds the individual
                                         floor sprinkler systems and fire hose connections. Standpipes
                                         at both stairs include fire hose connections at each floor
                                         landing.
     7. Automatic Extinguishing
        Equipment                        No chemical-type automatic extinguishing equipment is
                                         associated with the base building systems.
     8. Manual Extinguishing Equipment   Manual fire extinguishers are mounted at various locations
                                         throughout the building.
     9. Fire Hydrants                    Two fire hydrants exist at this property.


                                                42
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                 XI. LIFE SAFETY and PROPERTY PROTECTION
                                           (Continued)

     10. Water Supply                   The fire service water supply is from the main in the main
                                        access drive. There is no alternate service point.
     11. Sub-Consultant Investigation   A life safety sub-consultant was not engaged for the current
                                        assignment.
     12. Overall Adequacy               The product age of the installed EST (now GE Security) fire
                                        alarm system is about 20 years. For the "IRC3" model, 2007
                                        is the last year of support by the manufacturer for service and
                                        replacement parts. Initiation and notification devices are
                                        current technology, and wholesale replacement is not
                                        anticipated. Also, tenant area devices are adjusted and
                                        augmented as part of tenant finish construction. In addition
                                        system wiring is expected to be sound and usable until well
                                        beyond the analysis period. However, support and
                                        maintenance of the IRC3 system head-end panel is expected
                                        to become problematic, and replacement is recommended.

F.     BUILDING ACCESS CONTROL and SECURITY
     1. Access Control Systems          Entry into and within the building is controlled by an access
                                        card system, which is monitored on site, 24 hours per day,
                                        seven days per week. During occupied hours, entry via the
                                        main lobby is not restricted.
     2. Surveillance Systems            The CCTV system includes eleven, high-resolution color
                                        cameras with an on-site recorder (GE model “DBMRECT1”).
                                        These cameras are monitored through a computer and
                                        monitor at the main lobby security desk and the engineer’s
                                        office.
     3. Other Systems                   The property is patrolled by a security guard service 24 hours
                                        per day, seven days per week.
     4. Overall Adequacy                Building access control features appeared to be appropriate
                                        for this type of property.




                                               43
WILSON & STRICKLAND, INC.                                                               SAMPLE OFFICE BUILDING
WSI 3663                                                     Property Condition Survey and Capital Replacement Analysis



                            XII. DISABLED ACCESSIBILITY
A.     AMERICANS WITH DISABILITIES ACT
     1. Background                           In July 1990, the Americans with Disabilities Act (ADA) was
                                             signed into law, extending civil rights protection for persons
                                             with disabilities. Title III of the Americans with Disabilities
                                             Act, Public Law 101-336, contains requirements for
                                             elimination of barriers to the disabled in both new
                                             construction and existing facilities.
     2. Requirements for New Facilities      New facilities are defined as those that achieve first
                                             occupancy after January 26, 1993, or for which the last
                                             application for a building permit or permit extension is made
                                             after January 26, 1992. Therefore, the improvements at this
                                             property were required to conform to the requirements of the
                                             ADA at the time of design and construction.
     3. Requirements for Existing Facilities Modification or retrofit criteria and applicability tests
                                             associated with “Public Accommodations” versus
                                             “Commercial Facilities” are assumed not to apply, since the
                                             property was originally required to fully comply with the
                                             ADA.
     4. Technical Guidance                   The Access Board (an independent Federal agency) develops
                                             and maintains accessibility guidelines and provides technical
                                             assistance and training. The ADA Accessibility Guidelines
                                             (ADAAG) issued by the Access Board serve as the basis of
                                             standards issued by The Department of Justice (DOJ).
                                             The ADAAG alone are not enforceable or mandatory for
                                             entities covered by the ADA. DOJ is authorized to set the
                                             design standards that must be met, and these are to be
                                             consistent with the ADAAG. Regulations issued by DOJ
                                             contain standards based on ADAAG and provide guidance on
                                             which facilities are subject to the standards. It is important
                                             the regulations be used along with the design standards they
                                             contain or reference.
     5. Applicability                        The ADA covers all architectural and communication
                                             barriers, including exterior common areas, parking, building
                                             access, an accessible route through the building, doors,
                                             elevators, drinking fountains, restrooms, interior common
                                             areas and amenities, alarm notification, and tenant spaces.

B.     FAIR HOUSING AMENDMENTS ACT
     1. Background                           The Fair Housing Amendments Act of 1988 amends “Title
                                             VIII” of the Civil Rights Act of 1968, which prohibits
                                             discrimination on the basis of race, color, religion, sex,
                                             handicap, etc., in the sale, rental, and financing of dwellings.
                                             The Fair Housing Amendments Act also established certain
                                             design and construction guidelines for new multi-family
                                             housing built for first occupancy on or after March 13, 1991.
     2. Applicability                        The Fair Housing Amendments Act does not apply to office
                                             buildings.


                                                    44
WILSON & STRICKLAND, INC.                                                          SAMPLE OFFICE BUILDING
WSI 3663                                                Property Condition Survey and Capital Replacement Analysis



                            XII. DISABLED ACCESSIBILITY
                                           (Continued)

C. LOCAL CODE REQUIREMENTS
   1. Background and Requirements       The Georgia Accessibility Law was adopted in Georgia in
                                        1995. Coverage of the Georgia law regarding the design of
                                        accessible buildings and facilities is almost identical to the
                                        coverage found in the ADA. Essentially, public buildings
                                        and facilities are equivalent to “public accommodations” and
                                        “commercial facilities” as defined in the ADA.
   2. Applicability at Common Areas     Areas applicable to the ADA are applicable to the Georgia
                                        Accessibility Law.
   3. Applicability at Dwelling Units   There are no dwelling units at this property.

D. PROPERTY HISTORY and PLANNING
   1. Previous Surveys                  Previous ADA surveys were not made available.
   2. Previous ADA Improvements         ADA modifications since original construction were not
                                        discovered.
   3. Implementation Plans and Budgets No documented plan and/or budget for correcting known
                                       disabled accessibility deficiencies was provided.

E. SUMMARY and RECOMMENDATIONS
   1. Americans with Disabilities Act   A complete ADA survey was not completed; however,
                                        various deficiencies were identified, and these are described
                                        in the exhibits.
   2. Fair Housing                      The Fair Housing Amendments Act does not apply to office
                                        buildings.
   3. Local Requirements                In general, ADA deficiencies coincide with deficiencies
                                        under the Georgia Accessibility Law.




                                               45
WILSON & STRICKLAND, INC.                                                        SAMPLE OFFICE BUILDING
WSI 3663                                              Property Condition Survey and Capital Replacement Analysis




                             XIII. STRUCTURED PARKING
A. CONFIGURATION
   1. General                         The free-standing parking structure is a modified rectangle in
                                      plan and lies just north of the office building.
   2. Height                          The parking structure has seven levels, two of which are
                                      partially below grade.
   3. Floor Size and Layout           The footprint of the parking structure is about 175 feet (north-
                                      south) by 290 feet (east-west). A core area at the southwest
                                      corner includes elevator hoistways, an open elevator lobby,
                                      and an egress stairway. A second stair enclosure is near the
                                      northeast corner of the structure.
   4. Vehicular Access Control        The entrance at the east side of the third floor does not
                                      include traffic-control gates, but is frequently monitored by
                                      security. The north entrance at the first floor includes swing-
                                      arm gates activated by card readers (in and out).
   5. Traffic Flow                    The perimeter traffic lanes at each level are one-way, and the
                                      central ramps connecting each level are two-way travel.
   6. Parking                         All parking is arranged 90-degrees to the drive lanes.
                                      Stacked parking (two vehicles deep) was not observed.
                                      Discussion of parking counts and ratios is under Parking
                                      Count and Ratio, on page 14.
   7. Parking Expansion               No parking expansion plans are known.
   8. Barriers and Guardrails         Parking structure barriers generally consist of reinforced,
                                      precast concrete walls, and tensioned barrier cables.
   9. Finishes                        All vertical surfaces and ceilings are unpainted concrete.
   10. Pedestrian Access and Egress   Vertical pedestrian access at the parking structure is by two
                                      stairs. The two elevators access the first through sixth levels.
                                      The seventh (top) level is not accessed by the elevators.
   11. Overall Adequacy               The parking structure appeared adequate for the building
                                      population: the decks were not full at the times of observation
                                      during normal working hours.

B. STRUCTURAL SYSTEMS
   1. Foundations                     Drawings indicating details of the foundation system were
                                      not provided for examination.
   2. Slab-on-Grade                   Details of the slab on grade construction were not available.
   3. Elevated Floors                 Elevated floors at the parking structure generally consist of
                                      precast concrete double tees with concrete topping.
   4. Framing System                  Parking structure framing consists of cast-in-place or precast
                                      concrete columns, walls, and beams.
   5. Structural Expansion
      and Contraction                 No expansion joints were identified at the parking levels.


                                             46
WILSON & STRICKLAND, INC.                                                     SAMPLE OFFICE BUILDING
WSI 3663                                           Property Condition Survey and Capital Replacement Analysis



                            XIII. STRUCTURED PARKING
                                      (Continued)

   6. Roof                         Exposed roofing systems exist over the stair and elevator
                                   hoistway enclosures. There are no occupied spaces above or
                                   below parking areas that would require waterproofing
                                   systems.
   7. Construction Documentation   No construction observation or testing documentation has
                                   been reviewed; however, no significant construction-related
                                   deficiencies were observed.
   8. Overall Adequacy             No serious deficiencies have been discovered in the parking
                                   structure. Concrete repair and coating requirements are
                                   included in the exhibits.

C. OTHER SYSTEMS
   1. HVAC                         Mechanical ventilation is not provided for this open-air
                                   parking structure.
   2. Foundation Drainage          Foundation drainage systems have not been identified.
   3. Deck Slopes and Drainage     Decks are sloped to area drains.
   4. Deicing Systems              There are no deicing systems at the parking structure.
   5. Storm Drainage               Area drains connect to a no-hub cast iron leader system that
                                   discharges to PVC pipe below grade.
   6. Power and Lighting           Parking structure lighting is typically by fluorescent
                                   luminaires mounted to the underside of the deck above. Plans
                                   showing electrical distribution were not provided for
                                   examination.
   7. Elevators                    The two elevators access levels one through six.
   8. Fire Alarm System            Alarm pull stations and notification devices exist at the
                                   parking structure.
   9. Fire Sprinkler Systems       A dry-pipe standpipe system is installed at the parking levels.
                                   The dry standpipes would be pumped by firefighting
                                   equipment in the event of a fire. Fire sprinkler systems are
                                   not installed.

D. PARKING STRUCTURE MAINTENANCE
   1. Chloride Contamination
      and Structural Damage        The reinforced concrete parking structure is subject to
                                   damage from water and deicing salts attacking imbedded
                                   reinforcing through near-term penetration of cracks and long-
                                   term penetration of sound concrete. This parking structure
                                   must be maintained to prevent long-term deterioration.
   2. Previous Repairs             No previous concrete repairs were observed.
   3. Deck Coatings                An elastomeric traffic coating, apparently from the original
                                   construction, exists at the seventh (top) level. This coating
                                   was worn and peeling. This traffic coating (if properly



                                          47
WILSON & STRICKLAND, INC.                                                     SAMPLE OFFICE BUILDING
WSI 3663                                           Property Condition Survey and Capital Replacement Analysis



                            XIII. STRUCTURED PARKING
                                      (Continued)

                                   installed) protects the top deck and controls nuisance water
                                   leakage onto the levels below.
   4. Warranties                   No warranty documentation has been provided.
   5. Future Maintenance           Periodic reapplication of the seventh-level traffic coating is
                                   recommended. Application of penetrating water repellents at
                                   intermediate levels will help provide long-term protection of
                                   the concrete.




                                          48
WILSON & STRICKLAND, INC.                                                                SAMPLE OFFICE BUILDING
WSI 3663                                                      Property Condition Survey and Capital Replacement Analysis



             XIV. CAPITAL REPLACEMENT and REPAIR COSTS
A.    TEN -YEAR BUDGET PROJECTIONS
Budget recommendations for replacement or rehabilitation of capital components are summarized in
Exhibit A, Ten -Year Analysis. This exhibit summarizes (from Exhibits B, C, and D) anticipated life-
cycle replacement or rehabilitation of capital components, recommendations for remedial work, correction
of deferred repairs, exceptional repair and maintenance projects, and potential enhancements.

B.    CAPITAL PROJECTS and DEFERRED REPAIRS
Various capital projects and repair projects have been subdivided based on the Client’s planned asset
management program. Projects to be funded by the Landlord are included in Exhibit B, Capital Projects,
and projects to be funded by the tenants are included in Exhibit C, Special Repair and Maintenance
Projects. Where corrections are recommended, every deficient location had not been detailed, but
deficiencies have been categorized and conceptual repair costs developed.

C.    POTENTIAL ENHANCEMENTS
Possible enhancements include items that might enhance the property from the standpoint of tenant
convenience, tenant safety, or operational efficiency. These items are not required by building codes, nor
are they the result of deferred maintenance. Enhancement projects are included in Exhibit D.

D.    USE OF THE DATA
The need for most capital replacement is not realized as a single event but as a series of recurring costs or
nuisance problems (e.g., increased repairs, down time, inefficiency, parts obsolescence, etc.) that lead to a
decision to replace an item. Also, effective age and useful life assumptions are not exact; therefore, the
exhibits should be used only for conceptual budgeting. Replacement of some equipment may be driven
purely by economic analyses showing significant operational costs savings. This type of equipment
replacement decision should be analyzed independently on its merits as a worthwhile investment. Some
recommendations might be driven by a “payback analysis,” but that evaluation is not addressed herein.
Recommendations for repairs or for capital replacement may include detailed specifications for performing
the work; however, these are given only as a conceptual guide for estimating purposes. In most cases, the
appropriate specialist should be consulted with regard to need for further study, scope of work, product
selection, alternatives, and impact on operation of the property.
Conceptual cost estimates are provided for each recommendation, and costs are based on Wilson &
Strickland's experience with projects of a similar type, known construction industry average unit costs, or
historical cost data. Cost estimates include labor, material, design fees, and appropriate overhead, general
conditions, and profit. It is assumed remedial work will be performed by outside contractors unless stated
otherwise. Cost estimates are in today's dollars and include contingency funds for unanticipated problems.
Also, the estimates for future work include an associated inflation line item calculated at a rate of 3% per
year.
The philosophy in developing scope and magnitude of deferred repairs and capital replacement has been to
maintain the property at a level of quality perceived as being appropriate for this property at this location.
Marketing options to improve leasing (e.g., complete renovation) have not been considered. No attempted
has been made to identify items of routine repair and maintenance in the future such as pavement repairs,
exterior cleaning, repairing roof leaks, etc.




                                                     49
                                                                                   EXHIBIT A
                                                                          Ten-Year Summary
                                                                  (Present Value of Annual Projections in $1000's)
                                              SAMPLE OFFICE BUILDING - ATLANTA, GA
289,879 Rentable Square Feet                                                                                                                                   Construction Year: 1998
                                                              2007       2007       2008       2009      2010       2011       2012       2013      2014       2015        2016    10-YEAR
      DESCRIPTION                                        Deferred      Year 1     Year 2     Year 3    Year 4     Year 5     Year 6     Year 7     Year 8     Year 9    Year 10    TOTALS
   Capital Projects (EXHIBIT B)
 1 SITE ELEMENTS
 2 BUILDING STRUCTURE
 3 BUILDING ENVELOPE and EXTERIOR                                                                                                      $341.0                                       $341.0
 4 INTERIORS                                                                                                       $85.8                 $54.0                                      $139.8
 5 HVAC and PLUMBING
 6 ELECTRICAL
 7 CONVEYING SYSTEMS
 8 LIFE SAFETY & PROPERTY PROTECTION                          $3.5                           $34.5                                                                                   $38.0
 9 DISABLED ACCESSIBILITY                                   $68.4                                                                                                                    $68.4
10 STRUCTURED PARKING                                      $214.6                                                  $65.3      $92.4                                                 $372.3
11 CONTINGENCY (10.00%)                                     $28.7                              $3.5                $15.1       $9.2      $39.5                                       $96.0
                    Capital Projects Subtotals             $315.2                            $38.0               $166.2     $101.6     $434.5                                      $1,055.5
                Subtotal $ per rentable square foot:         $1.09      $0.00      $0.00      $0.13     $0.00      $0.57      $0.35      $1.50      $0.00      $0.00       $0.00      $3.64

   CAM or Expense (EXHIBIT C)
 1 SITE ELEMENTS
 2 BUILDING STRUCTURE                                                  $45.0                                                                                                         $45.0
 3 BUILDING ENVELOPE and EXTERIOR                           $51.5      $53.0                                                                                                        $104.5
 4 INTERIORS
 5 HVAC and PLUMBING                                                                                     $3.0       $2.5      $24.2       $2.0     $16.0      $20.0       $24.0      $91.7
 6 ELECTRICAL
 7 CONVEYING SYSTEMS
 8 LIFE SAFETY & PROPERTY PROTECTION
 9 DISABLED ACCESSIBILITY
10 STRUCTURED PARKING                                                  $99.0                $134.6                                                                                  $233.6
11 CONTINGENCY (10.00%)                                       $5.2     $19.7                 $13.5       $0.3       $0.3       $2.4       $0.2      $1.6       $2.0        $2.4      $47.6
                    CAM or Expense Subtotals                $56.7     $216.7                $148.1       $3.3       $2.8      $26.6       $2.2     $17.6      $22.0       $26.4     $522.4
                Subtotal $ per rentable square foot:         $0.20      $0.75      $0.00      $0.51     $0.01      $0.01      $0.09      $0.01      $0.06      $0.08       $0.09      $1.80

   Potential Enhancements (EXHIBIT D)
 1 SITE ELEMENTS
 2 BUILDING STRUCTURE
 3 BUILDING ENVELOPE and EXTERIOR
 4 INTERIORS
 5 HVAC and PLUMBING                                                     $7.5     $15.0                                                                                              $22.5
 6 ELECTRICAL
 7 CONVEYING SYSTEMS
 8 LIFE SAFETY & PROPERTY PROTECTION
 9 DISABLED ACCESSIBILITY
10 STRUCTURED PARKING                                                            $216.1      $10.0                                                           $216.1                 $442.2
11 CONTINGENCY (10.00%)                                                  $0.8     $23.1        $1.0                                                           $21.6                  $46.5
            Potential Enhancements Subtotals                             $8.3    $254.2      $11.0                                                           $237.7                 $511.2
                Subtotal $ per rentable square foot:         $0.00      $0.03      $0.88      $0.04     $0.00      $0.00      $0.00      $0.00      $0.00      $0.82       $0.00      $1.76

                       PROJECT TOTALS:                     $371.9     $225.0     $254.2     $197.1       $3.3    $169.0     $128.2     $436.7      $17.6     $259.7       $26.4    $2,089.1
                 Total $ per rentable square foot:                                                                                                                                    $7.21
WSI 3663
                                             Notes:    1. The Client has categorized projects as Capital, R&M or Enhancement based on the planned asset management strategy.




    WILSON & STRICKLAND, INC.                                                                                                                            EXHIBIT A, Page 1 of 2
                                                                               EXHIBIT A-i
                                                              Inflated Ten-Year Summary
                                  (Annual Projections in $1000's including 10.0% Contingency and Inflated at 3.0% per year)
                                         SAMPLE OFFICE BUILDING - ATLANTA, GA
289,879 Rentable Square Feet                                                                                                                           Construction Year: 1998
                                                             2007      2007       2008      2009      2010      2011      2012       2013     2014       2015       2016       10-YEAR
     DESCRIPTION                                        Deferred     Year 1     Year 2    Year 3 Year 4       Year 5    Year 6     Year 7 Year 8       Year 9 Year 10          TOTALS

   Capital Projects (EXHIBIT B)
1 SITE ELEMENTS
2 BUILDING STRUCTURE
3 BUILDING ENVELOPE and EXTERIOR                                                                                                  $447.9                                        $447.9
4 INTERIORS                                                                                                  $106.2                $70.9                                        $177.1
5 HVAC and PLUMBING
6 ELECTRICAL
7 CONVEYING SYSTEMS
8 LIFE SAFETY & PROPERTY PROTECTION                          $3.9                         $40.3                                                                                  $44.2
9 DISABLED ACCESSIBILITY                                   $75.2                                                                                                                 $75.2
10 STRUCTURED PARKING                                     $236.1                                              $80.8    $117.8                                                   $434.7
                   Capital Projects Subtotals             $315.2                          $40.3              $187.0    $117.8     $518.8                                       $1,179.1
                Subtotal $ per rentable square foot:        $1.09     $0.00      $0.00     $0.14     $0.00     $0.65      $0.41     $1.79     $0.00     $0.00      $0.00           $4.07

   CAM or Expense (EXHIBIT C)
1 SITE ELEMENTS
2 BUILDING STRUCTURE                                                  $49.5                                                                                                      $49.5
3 BUILDING ENVELOPE and EXTERIOR                           $56.7      $58.3                                                                                                     $115.0
4 INTERIORS
5 HVAC and PLUMBING                                                                                  $3.6       $3.1     $30.9       $2.6    $21.6     $27.9      $34.4         $124.1
6 ELECTRICAL
7 CONVEYING SYSTEMS
8 LIFE SAFETY & PROPERTY PROTECTION
9 DISABLED ACCESSIBILITY
10 STRUCTURED PARKING                                               $108.9               $157.1                                                                                 $266.0
                   CAM or Expense Subtotals                $56.7    $216.7               $157.1      $3.6       $3.1     $30.9       $2.6    $21.6     $27.9      $34.4         $554.6
                Subtotal $ per rentable square foot:        $0.20     $0.75      $0.00     $0.54     $0.01     $0.01      $0.11     $0.01     $0.07     $0.10      $0.12           $1.91

   Potential Enhancements (EXHIBIT D)
1 SITE ELEMENTS
2 BUILDING STRUCTURE
3 BUILDING ENVELOPE and EXTERIOR
4 INTERIORS
5 HVAC and PLUMBING                                                    $8.3     $17.0                                                                                            $25.3
6 ELECTRICAL
7 CONVEYING SYSTEMS
8 LIFE SAFETY & PROPERTY PROTECTION
9 DISABLED ACCESSIBILITY
10 STRUCTURED PARKING                                                          $244.8     $11.7                                                       $301.1                    $557.6
           Potential Enhancements Subtotals                            $8.3    $261.8     $11.7                                                       $301.1                    $582.9
                Subtotal $ per rentable square foot:        $0.00     $0.03      $0.90     $0.04     $0.00     $0.00      $0.00     $0.00     $0.00     $1.04      $0.00           $2.01

           INFLATED PROJECT TOTALS:                       $371.9    $225.0     $261.8    $209.1      $3.6    $190.1    $148.7     $521.4     $21.6    $329.0      $34.4        $2,316.6
               Total $ per rentable square foot:               $1         $1        $1        $1        $0        $1         $1        $2        $0        $1         $0           $7.99
WSI 3663
                                             Notes:    1. The Client has categorized projects as Capital, R&M or Enhancement based on the planned asset management strategy.




    WILSON & STRICKLAND, INC.                                                                                                                          EXHIBIT Ai, Page 2 of 2
                                                                                    EXHIBIT B
                                                                            Predicted Capital Projects
JOB:             SAMPLE OFFICE BUILDING                                                                        ATLANTA, GA                                                 WSI 3663
AGE:             Construction Year: 1998                                                                       289,879 Rentable Square Feet                              27-Jun-2007

Item    Photo    Item                                                                                                                     Unit                               Deferred Item
 No.    Ref's    Description                                                                                    Quantity Units            Cost   Subtotals            Totals or Year No.

 1     SITE ELEMENTS                                                                                                                                                      $0              1

1.01             Surface Pavement Rehabilitation
        15, 30   Asphalt pavement exists at the loading access drive.
                                                                                  Estimated Useful Life:        20 years
                                                                                Effective Date Installed:     1998
                                                                 Replacement Predicted in Analysis Year:        12
                                                                   Surface Pavement Rehabilitation        Beyond Analysis Period
1.02             Landscape and Hardscape Renovation
        18, 19   These appeared to be from the original construction, but no major rehabilitation is
                 anticipated during the analysis period. Periodic replacements are anticipated to be
                 covered under the repair and maintenance budget.
                                                                                     Estimated Useful Life:           20 years
                                                                                   Effective Date Installed:        1998
                                                                 Replacement Predicted in Analysis Year:              12
                                                             Landscape and Hardscape Renovation                Beyond Analysis Period
                                                   Landscape and Irrigation Periodic Replacements              See R&M (Exhibit C) Item 1.01
1.03             Property Signage
          23     Major capital costs associated with the monument sign in front of the building are not
                 anticipated during the analysis period. Other signage is assumed to be controlled by
                 the Southridge Park Property Owners Association.
                                                                                    Property Signage           Beyond Analysis Period
                                                                               Development Signage             Property Owners Association
1.04             Shared Elements
       1, 2, 12, Capital costs associated with shared elements within the Southridge Park development
          21
                 are assumed to be controlled by the Southridge Park Property Owners Association and
                 have not been addressed herein                                                                Property Owners Association


 2     BUILDING STRUCTURE                                                                                                                                                 $0              2

                 No Capital items have been identified in this category.


 3     BUILDING ENVELOPE and EXTERIOR                                                                                                                            $341,000                 3

3.01             Roofing System Replacements
        26-32    Roofing systems at the office tower main roof and penthouse roof are ballasted EPDM
                 membranes installed during the original construction. The Carlisle warranty indicates a
                 date of completion of July 20, 1998 and a fifteen-year warranty period. No evidence of
                 leaks or other problems was found, and no leaks were reported by property
                 management.
                                                                                      Estimated Useful Life:          15 years
                                                                                     Effective Date Installed:      1998
                                                                   Replacement Predicted in Analysis Year:             7
                                                                        Roofing System Replacements                31000 sq.ft.          $10.00   $310,000                            7
3.02             Office Building Exterior Joint Sealants - Complete Replacement
       39, 43-49 With a few exceptions, exterior joint sealants appeared in good condition. Water stains
                 were observed at the south end of the fifth floor and the north end of the second floor.
                 Spot replacement of isolated failure areas is assumed to be completed under the
                 Repair and Maintenance Category.
                                                                                      Estimated Useful Life:          20 years
                                                                                     Effective Date Installed:      1998
                                                                   Replacement Predicted in Analysis Year:            12
                                    Office Building Exterior Joint Sealants - Complete Replacement             Beyond analysis period
                                                             Replacement of localized sealant failures         See R&M (Exhibit C) Item 3.06
3.03             Window Glazing - Complete Wet Glazing
        50-52 Glazing gaskets are from the original construction and appeared to remain sound and
                 pliable. Spot repair of isolated problems is assumed to be completed under the Repair
                 and Maintenance Category.
                                                                                      Estimated Useful Life:          25 years
                                                                                     Effective Date Installed:      1998
                                                                   Replacement Predicted in Analysis Year:            17
                                                              Window Glazing - Complete Wet Glazing            Replacement beyond analysis period
                                                                  Repair of localized gasket problems          See R&M (Exhibit C) Item 0.00
3.04             Precast Concrete Deficiencies
           37    Observed problems did not appear to indicate systemic deficiencies in the precast
                 concrete panels, and spot repairs are assumed to be completed under the Repair and
                 Maintenance budget.
                                                           Periodic localized precast concrete repairs         See R&M (Exhibit C) Item 3.04




       WILSON & STRICKLAND, INC.                                                                                                                             EXHIBIT B, Page 1 of 6
                                                                                     EXHIBIT B
                                                                             Predicted Capital Projects
JOB:             SAMPLE OFFICE BUILDING                                                                         ATLANTA, GA                                                   WSI 3663
AGE:             Construction Year: 1998                                                                        289,879 Rentable Square Feet                                27-Jun-2007

Item     Photo   Item                                                                                                                      Unit                                 Deferred Item
 No.     Ref's   Description                                                                                     Quantity Units            Cost      Subtotals           Totals or Year No.
3.05             Window Frame Recoating
         3-10    Exterior window frames were factory coating, and the coating is assumed to be a high
                 quality fluoropolymer. Periodic cleaning is anticipated, but the need for recoating is not
                 anticipated during the analysis period.
                                                                                        Estimated Useful Life:        40 years
                                                                                      Effective Date Installed:     1998
                                                                    Replacement Predicted in Analysis Year:           32
                                                                              Window Frame Recoating            Beyond Analysis Period
 3.06            Building Exterior Projects Engineering, Quality Assurance and CM
                 This line item is for investigation, plans, specifications, and construction quality
                 assurance relating to the above garage projects.
                                                          Investigation, engineering, CM, & QA - Year         d      10% pct                 $0            $0                        d
                                                                                                      Year    1      10% pct                 $0            $0                        1
                                                                                                      Year    2      10% pct                 $0            $0                        2
                                                                                                      Year    3      10% pct                 $0            $0                        3
                                                                                                      Year    4      10% pct                 $0            $0                        4
                                                                                                      Year    5      10% pct                 $0            $0                        5
                                                                                                      Year    6      10% pct                 $0            $0                        6
                                                                                                      Year    7      10% pct           $310,000       $31,000                        7
                                                                                                      Year    8      10% pct                 $0            $0                        8
                                                                                                      Year    9      10% pct                 $0            $0                        9
                                                                                                      Year 10        10% pct                 $0            $0                        10


 4      INTERIORS                                                                                                                                                   $139,800                 4

4.01           Main Lobby Remodel
         53-56 The main lobby finishes appeared to be from the original construction; however, the
               need for remodeling is not anticipated during the analysis period. Interior painting is
               expected to be completed as normal repair and maintenance.
                                                                                 Main Lobby Remodel             Replacement beyond analysis period
4.02           Elevator Lobby Remodel
          56   Remodeling of the multi-tenant floor elevator lobbies is not anticipated during the
               analysis period.
                                                                              Elevator Lobby Remodel            Replacement beyond analysis period
4.03           Corridor Finishes - Multi-Tenant Floors
         59-60 Life cycle replacement costs have been estimated for 3 multi-tenant corridors (floors 4,
               6, & 9). Carpet , paint, and wallcovering are assumed to follow a 6-year replacement
               cycle. Suspended ceilings at corridors are assumed to follow a 15-year replacement
               cycle.
                                                                  CARPET (corridor) - 4th floor - Year      5         300   sq.yd.       $30.00        $9,000                            5
                                                                                        6th floor - Year    5         300   sq.yd.       $30.00        $9,000                            5
                                                                                        9th floor - Year    5         300   sq.yd.       $30.00        $9,000                            5
                                                          CARPET (elevator lobby) - 4th floor - Year        5          40   sq.yd.       $40.00        $1,600                            5
                                                                                        6th floor - Year    5          40   sq.yd.       $40.00        $1,600                            5
                                                                                        9th floor - Year    5          40   sq.yd.       $40.00        $1,600                            5
                                             BASE TRIM is painted wood - repaint - 4th floor - Year         5         600   lin.ft.       $2.00        $1,200                            5
                                                                                        6th floor - Year    5         600   lin.ft.       $2.00        $1,200                            5
                                                                                        9th floor - Year    5         600   lin.ft.       $2.00        $1,200                            5
                                  LOBBY CEILINGS are gypsum board - repaint - 4th floor - Year              5         390   sq.ft.        $0.75          $300                            5
                                                                                        6th floor - Year    5         390   sq.ft.        $0.75          $300                            5
                                                                                        9th floor - Year    5         390   sq.ft.        $0.75          $300                            5
                                            WALL COVERINGS timed with carpet - 4th floor - Year             5       5,500   sq.ft.        $3.00       $16,500                            5
                                                                                        6th floor - Year    5       5,500   sq.ft.        $3.00       $16,500                            5
                                                                                        9th floor - Year    5       5,500   sq.ft.        $3.00       $16,500                            5
                                    SUSPENDED CEILINGS (average multi-tenant floor corridor):                       1,500   sq.ft.       $12.00
                                                                                                    Year    7           3   floors      $18,000       $54,000                            7
4.04           Corridor Finishes - Single-Tenant Floors
          58   This analysis assumes single-tenant floors will remain during the analysis period.
               Therefore, no common area finish costs are shown.
                                                            Corridor Finishes - Single-Tenant Floors            Tenant Responsibility
4.05           Restroom Remodeling
          63   Restroom finishes are from the original construction, and the expected useful life of
               restroom finishes anticipated to be 18-22 years.
                                                                                      Estimated Useful Life:          20 years
                                                                                    Effective Date Installed:       1998
                                                                  Replacement Predicted in Analysis Year:             12
                                                                                Restroom Remodeling             Replacement beyond analysis period
4.06           Management Office Remodel
               Replacement of carpet, painting, and other replacements are anticipated. The Client's
               asset management plan indicates this will be done in conjunction with relocation of
               tenants and is budgeted elsewhere.                                                               Budgeted Elsewhere
4.07           Interior FF&E - Occupied Tenant Spaces
          62   The analysis assumes all interior finishes, fixtures, and equipment at the tenant spaces
               are either the Tenant's responsibility or will be completed as part of tenant
               improvement allowances.                                                                          Tenant Cost




        WILSON & STRICKLAND, INC.                                                                                                                               EXHIBIT B, Page 2 of 6
                                                                                       EXHIBIT B
                                                                               Predicted Capital Projects
JOB:             SAMPLE OFFICE BUILDING                                                                       ATLANTA, GA                                                WSI 3663
AGE:             Construction Year: 1998                                                                      289,879 Rentable Square Feet                             27-Jun-2007

Item    Photo    Item                                                                                                                    Unit                              Deferred Item
 No.    Ref's    Description                                                                                   Quantity Units            Cost      Subtotals        Totals or Year No.

 5     HVAC and PLUMBING                                                                                                                                                $0            5

5.01          Self-Contained Unit Replacements
        66-67 The expected useful lives of self-contained air conditioning units is assumed to be
              based on the lives of their components. Component replacements are expected to be
              repair and maintenance projects, and complete replacement of self-contained units is
              not predicted during the analysis period.                                                       See R&M (Exhibit C) Item 5.01
5.02          Cooling Tower Replacements
        68-72 The expected useful life of a cooling tower is published (ASHRAE TC 1.8) to be
              20 years; however, cooling tower life is dependent on initial quality, the environment,
              and (especially) proper commissioning and maintenance. These towers have
              previously experienced internal corrosion and pinholes in the basins. Basin coating and
              sealing of pinholes was completed about 2 years ago. These cooling towers are
              expected to have total useful lives of about 20 years assuming proper care and
              maintenance. Ongoing rehabilitation, including internal coatings and fill replacement,
              will be required.
                                                                                    Estimated Useful Life:           20 years
                                                                                  Effective Date Installed:        1998
                                                               Replacement Predicted in Analysis Year:               12
                                                                     Cooling Tower Replacements               Replacement Beyond Analysis Period
                                                                      Cooling Tower Rehabilitation            See R&M (Exhibit C) Item 5.02
5.03          Supplemental Cooling Units
         76   Several supplemental cooling units have been installed by tenants.
                                                                       Supplemental Cooling Units             Tenant Cost
5.04          HVAC Controls
         80   The majority of the Trane "Tracer Summit" system is original (except for component
              replacements) and includes digital/electric controls plus a computerized control
              interface.
                                                                                    Estimated Useful Life:           20 years
                                                                                  Effective Date Installed:        1998
                                                               Replacement Predicted in Analysis Year:               12
                                                                                      HVAC Controls           Replacement beyond analysis period
              Control system component replacements are anticipated to be repair and maintenance
              projects.                                                                                       See R&M (Exhibit C) Item 5.04


 6     ELECTRICAL                                                                                                                                                       $0            6

6.01           Electrical Equipment Replacements
        81-91  All main electrical equipment is from the original construction. The need for piecemeal
               parts replacements is rare, and it is assume replacement parts will be available
               through existing stock or salvaged equipment. Therefore, life cycle replacement of
               equipment is not anticipated during the analysis period.
                                                                                     Estimated Useful Life:          60 years
                                                                                    Effective Date Installed:      1998
                                                                 Replacement Predicted in Analysis Year:             52
                                                                 Electrical Equipment Replacements            Replacement beyond analysis period
6.02           Standby Generator Replacement
        15, 92 The diesel-powered generator is expected to have a useful life of 35 or more years;
               therefore, no replacement is anticipated during the analysis period.
                                                                                     Estimated Useful Life:          35 years
                                                                                    Effective Date Installed:      1998
                                                                 Replacement Predicted in Analysis Year:             27
                                                                    Standby Generator Replacement             Replacement beyond analysis period


 7     CONVEYING SYSTEMS                                                                                                                                                $0            7

7.01             Elevator Equipment Modernization
        95-105   The elevators are from the original construction and are expected to have total useful
                 lives of 15 to 20 years. Availability of proper service from Fujitec is assumed, and
                 property management indicated past service has been adequate. Equipment that has
                 indefinite life (e.g., hoist machines) is expected to be reused; however, controls, door
                 operators, and signal fixtures are expected to require replacement.

                                                                                  Estimated Useful Life:          20 years
                                                                                Effective Date Installed :      1998
                                                                Replacement Predicted in Analysis Year:           12
                                                                 Elevator Equipment Modernization          Replacement beyond analysis period
                                               Parking Structure Elevator Equipment Modernization          See Capital (Exhibit B) Item 10.05




       WILSON & STRICKLAND, INC.                                                                                                                           EXHIBIT B, Page 3 of 6
                                                                                      EXHIBIT B
                                                                              Predicted Capital Projects
JOB:            SAMPLE OFFICE BUILDING                                                                       ATLANTA, GA                                               WSI 3663
AGE:            Construction Year: 1998                                                                      289,879 Rentable Square Feet                            27-Jun-2007

Item    Photo   Item                                                                                                                   Unit                              Deferred Item
 No.    Ref's   Description                                                                                   Quantity Units           Cost   Subtotals           Totals or Year No.

 8     LIFE SAFETY & PROPERTY PROTECTION                                                                                                                       $38,000                8

8.01          Parking Structure Sidewalk Guardrail
         20   Code requires a guardrail along sidewalks that lie 30 inches or more above the
              adjacent surface. A pipe rail is installed where the parking structure sidewalk crosses
              the fountain, but the space below the rail is open. Code requires no openings that
              would allow passage of a 4-inch sphere.                                                               1 sum            $3,000     $3,000                            d
8.02          Fire Alarm System Replacement
      111-115 The EST (now GE Security) fire alarm system was installed as part of the original
              construction, but the product age of the installed model is about 20 years. For the
              "IRC3" model, 2007 is the last year of support by the manufacturer for service and
              replacement parts. Initiation and notification devices are current technology, and
              wholesale replacement is not anticipated. Also, tenant area devices are adjusted and
              augmented as part of tenant finish construction. In addition system wiring is expected
              to be sound and usable until well beyond the analysis period. However, support and
              maintenance of the IRC3 system head-end panel is expected to become problematic,
              and replacement is recommended.
                                                                                   Estimated Product Life:         20 years
                                                                 Approximate Product Introduction Year:          1989
                                                                 Replacement Predicted in Analysis Year:            3
                                                         Fire Alarm System Head End Replacement                     1 sum           $30,000    $30,000                            3
 8.03         Life Safety Projects Engineering, Quality Assurance and CM
              This line item is for investigation, plans, specifications, and construction quality
              assurance relating to the above garage projects.
                                                        Investigation, engineering, CM, & QA - Year      d        15%   pct          $3,000       $500                        d
                                                                                                 Year    1        15%   pct              $0         $0                        1
                                                                                                 Year    2        15%   pct              $0         $0                        2
                                                                                                 Year    3        15%   pct         $30,000     $4,500                        3
                                                                                                 Year    4        15%   pct              $0         $0                        4
                                                                                                 Year    5        15%   pct              $0         $0                        5
                                                                                                 Year    6        15%   pct              $0         $0                        6
                                                                                                 Year    7        15%   pct              $0         $0                        7
                                                                                                 Year    8        15%   pct              $0         $0                        8
                                                                                                 Year    9        15%   pct              $0         $0                        9
                                                                                                 Year 10          15%   pct              $0         $0                        10


 9     DISABLED ACCESSIBILITY                                                                                                                                  $68,400                9

                ADA "Public Accommodation" vs. "Commercial Facility"
                ● For existing facilities, the ADA treats public accommodations differently from other
                establishments. Places of public accommodation include a wide range of entities, such
                as restaurants, hotels, theaters, doctors' offices, accountant's offices, pharmacies,
                retail stores, museums, libraries, parks, private schools, and day care centers. Private
                clubs and religious organizations are exempt from the ADA's title III requirements for
                public accommodations. If a business provides goods and services to the public, it is
                required to remove existing barriers if doing so is "readily achievable" (discussed
                below).
                ● If a business is not open to the public but is only a place of employment like a
                warehouse, manufacturing facility or certain office buildings, then there is no
                requirement to remove existing barriers. Such a facility is called a commercial facility.
                While the operator of a commercial facility is not required to remove barriers, he must
                comply with the ADA Standards for Accessible Design when altering, renovating or
                expanding the facility.
                ● Recommendations below assume the typical office floors are commercial facilities,
                not public accommodations. This categorization may be affected by the type of tenant
                occupying the office space. For example, a doctor's office is a public accommodation,
                and if a doctor's office were to occupy a floor in an office building, the route to the
                doctor's office as well as the restrooms for use by patients would be places of public
                accommodation.
                ● The main lobby, passenger elevators, specialty/retail spaces, parking structure, and
                site elements are assumed to be places of public accommodation. Readily achievable
                barrier removal in existing elements must be accomplished at these areas. Additional
                areas may be public accommodations, but study of each tenant's operations would be
                required to make this determination.
                ● It is assumed the remaining office floors (and associated restrooms) are commercial
                facilities. At these areas, accessible designs must be used in alterations and
                renovations to the extent that the added accessibility costs do not exceed 20% of the
                cost of the original alteration.




       WILSON & STRICKLAND, INC.                                                                                                                         EXHIBIT B, Page 4 of 6
                                                                                            EXHIBIT B
                                                                                    Predicted Capital Projects
JOB:              SAMPLE OFFICE BUILDING                                                                           ATLANTA, GA                                               WSI 3663
AGE:              Construction Year: 1998                                                                          289,879 Rentable Square Feet                            27-Jun-2007

Item    Photo     Item                                                                                                                       Unit                              Deferred Item
 No.     Ref's    Description                                                                                       Quantity Units           Cost   Subtotals           Totals or Year No.
                  ADA - Readily Achievable
                  ● The term "readily achievable" applies to existing barriers in public accommodations.
                  The readily achievable test is not used in commercial facilities. Readily achievable
                  means "easily accomplishable and able to be carried out without much difficulty or
                  expense." Examples include the simple ramping of a few steps, the installation of grab
                  bars where only routine reinforcement of the wall is required, the lowering of
                  telephones, and similar modest adjustments. Businesses are not required to retrofit
                  their facilities to install elevators unless such installation is readily achievable, which is
                  unlikely in most cases. In determining whether or not a barrier removal is readily
                  achievable, the financial capacity of the landlord and tenant are considered. For this
                  reason it is assumed a liberal interpretation of readily achievable is in order.

                  ADA - Legal Interpretation
                  ● Assumptions regarding the ADA are based on interpretation of selected documents
                  and may be flawed if tested by the courts. Legal counsel is recommended on these
                  matters.
                                           ADA Public Accommodation Issues
9.01              Main Lobby Entry Doors
          9       The main entry doors do not conform to ADA regarding wheelchair access. Inadequate
                  clearance is provided at the latch side of either side door, and automatic openers are
                  not provided. An automatic door opener and associated signage is required to achieve
                  ADA conformance.
                                                                                  Main Lobby Entry Doors                   1 sum          $20,000    $20,000                            d
9.02              Parking Structure Path of Travel
          20      The sidewalk leading from the parking structure to the office building is longer than
                  allowable for a ramp; therefore, requirements for a sidewalk apply. The maximum slope
                  for a sidewalk is 20 horizontal to 1 vertical, and the existing sidewalk exceeds this
                  slope. Correction would be very disruptive and expensive; therefore, the cost of
                  corrections has not been estimated.                                                              Information
                                           ADA "Commercial Facility" Issues
9.03              Restrooms Lavatory Countertops
          63      The restrooms observed have inadequate knee clearance beneath lavatories. The
                  granite apron at the lavatories is too wide, limiting knee clearance to around 28 inches
                  versus the requirement of 29 inches.                                                                    22 each          $1,800    $39,600                            d
9.04              Restrooms Lavatory Mirrors
          63      The restrooms observed have mirrors over lavatories mounted too high. The bottom of
                  an existing mirror is around 42 inches versus the limit of 40 inches. The correction
                  action contemplated includes installation of full-height mirrors at accessible locations in
                  each restroom.                                                                                          22 each            $400     $8,800                            d


10 STRUCTURED PARKING                                                                                                                                              $372,300                 10

10.01             Vehicle Access Control Equipment
         143      Life cycle replacements for access gates and card readers are not anticipated within
                  the analysis period, and component replacements are expected to be covered under
                  normal repair and maintenance.                                                              Replacement beyond analysis period
10.02             Parking Structure Concrete Repair
        156-158   Concrete delamination was evident at one column top and a number of grout pockets
        160-163
                  in the precast concrete wall panels and columns. These grout pockets likely cover
                  lifting hardware in most cases. The de-bonded concrete grout produces a path for
                  water entry, and rust staining was evident at a number of locations. One, cracked
                  precast concrete wall panel was also observed.
                                                                     Parking Structure Concrete Repair                1 allow.      $15,000         $15,000                             d
10.03             Expansion Joint Installation
         163      Joint movement and spalling were evident at a north/south double tee joint near the
                  south end of level 2. The concentrated, unanticipated movement is likely related to the
                  perimeter of the deck being fixed at reinforced concrete foundation walls. An expansion
                  joint should be installed to accommodate the movement without damaging the
                  structure.
                                                                            Expansion Joint Installation              1 allow.      $12,000         $12,000                             d
10.04             Parking Garage Concrete Protection and Waterproofing
        126-127   The reinforced concrete parking structure is subject to damage from water and
        164-168
                  occasional deicing salts attacking imbedded reinforcing through near-term penetration
                  of cracks and long-term penetration of sound concrete. This parking structure must be
                  maintained to prevent deterioration. The top, exposed deck originally received a
                  polyurethane traffic coating; however, this coating was worn, eroded, and failed in
                  many locations. At the edge of the top deck (level 7), efflorescence revealed evidence
                  of water penetration. Over time damage at intermediate decks is likely, and a
                  penetrating water repellent is recommended.
                                                           Level 7
                                                                                       Estimated Useful Life:         5 years
                                                                        Traffic Topping - Level 7 - Year    1    48,015 sq.ft.         $3.50       $168,100                             d
                                                                                            Recoat - Year   6    48,015 sq.ft.         $1.75        $84,000                             6
                                                    Intermediate Levels
                                                                        Double tee joint sealants - Year    5    29,700 lin.ft.        $2.00        $59,400                             5
                                                     Penetrating Water Repellent - Intermediate Levels        See Enhancements (Exhibit D) Item 10.02



        WILSON & STRICKLAND, INC.                                                                                                                              EXHIBIT B, Page 5 of 6
                                                                                         EXHIBIT B
                                                                                 Predicted Capital Projects
JOB:              SAMPLE OFFICE BUILDING                                                                            ATLANTA, GA                                                   WSI 3663
AGE:              Construction Year: 1998                                                                           289,879 Rentable Square Feet                                27-Jun-2007

Item      Photo  Item                                                                                                                         Unit                                  Deferred Item
 No.      Ref's  Description                                                                                         Quantity Units           Cost       Subtotals           Totals or Year No.
10.05            Parking Structure Elevator Equipment Modernization
         146-148 The parking structure elevators are from the original construction and are expected to
                 have total useful lives of 20 or more years. Availability of proper service from Fujitec is
                 assumed, and property management indicated past service has been adequate.

                                                                                      Estimated Useful Life:          20 years
                                                                                    Effective Date Installed :      1998
                                                                   Replacement Predicted in Analysis Year:            12
                                                Parking Structure Elevator Equipment Modernization             Replacement beyond analysis period
                                                   Office Building Elevator Equipment Modernization            See Capital (Exhibit B) Item 7.01
10.06             Parking Garage Engineering, Quality Assurance and CM
                  This line item is for investigation, plans, specifications, and construction quality
                  assurance relating to the above garage projects.
                                                          Investigation, engineering, CM, & QA - Year       d        10% pct             $195,100         $19,500                        d
                                                                                                  Year      1        10% pct                   $0              $0                        1
                                                                                                  Year      2        10% pct                   $0              $0                        2
                                                                                                  Year      3        10% pct                   $0              $0                        3
                                                                                                  Year      4        10% pct                   $0              $0                        4
                                                                                                  Year      5        10% pct              $59,400          $5,900                        5
                                                                                                  Year      6        10% pct              $84,000          $8,400                        6
                                                                                                  Year      7        10% pct                   $0              $0                        7
                                                                                                  Year      8        10% pct                   $0              $0                        8
                                                                                                  Year      9        10% pct                   $0              $0                        9
                                                                                                  Year 10            10% pct                   $0              $0                        10


11 CONTINGENCY (10.00%)                                                                                                                                                   $96,000             11
                                                                                                                                             Yearly          Yearly
                                                                                   Capital Projects Contingency:      10.00%               Subtotals   Contingency
        % of up-front capital (first year) total                                                                u      10.0%   pct.              $0            $0                        u
        % of deferred (first year) total                                                                        d      10.0%   pct.       $286,500        $28,700                        d
        % of first year total                                                                                   1      10.0%   pct.              $0            $0                        1
        % of second year total                                                                                  2      10.0%   pct.              $0            $0                        2
        % of third year total                                                                                   3      10.0%   pct.        $34,500         $3,500                        3
        % of fourth year total                                                                                  4      10.0%   pct.              $0            $0                        4
        % of fifth year total                                                                                   5      10.0%   pct.       $151,100        $15,100                        5
        % of sixth year total                                                                                   6      10.0%   pct.        $92,400         $9,200                        6
        % of seventh year total                                                                                 7      10.0%   pct.       $395,000        $39,500                        7
        % of eighth year total                                                                                  8      10.0%   pct.              $0            $0                        8
        % of ninth year total                                                                                   9      10.0%   pct.              $0            $0                        9
        % of tenth year total                                                                                  10      10.0%   pct.              $0            $0                        10



                  CAPITAL PROJECTS TOTAL WITHOUT INFLATION (Exhibit A)                                                                                                 $1,055,500

12 INFLATION (3.0% Annually)                                                                                                                                            $123,600              12
                                                                                                                             Round           Yearly          Yearly
                                                           Inflation Rate (also applied to contingency amounts):        3.0% Actual        Subtotals       Inflation
        % of up-front capital (first year) total                                                                u       0.0%                     $0              $0                      u
        % of deferred (first year) total                                                                        d       0.0%              $315,200               $0                      d
        % of first year total                                                                                   1       0.0%                     $0              $0                      1
        % of second year total                                                                                  2       3.0%                     $0              $0                      2
        % of third year total                                                                                   3       6.1%    6.05       $38,000         $2,300                        3
        % of fourth year total                                                                                  4       9.3%                     $0              $0                      4
        % of fifth year total                                                                                   5      12.6% 12.52        $166,200        $20,800                        5
        % of sixth year total                                                                                   6      15.9% 15.94        $101,600        $16,200                        6
        % of seventh year total                                                                                 7      19.4% 19.40        $434,500        $84,300                        7
        % of eighth year total                                                                                  8      23.0%                     $0              $0                      8
        % of ninth year total                                                                                   9      26.7%                     $0              $0                      9
        % of tenth year total                                                                                  10      30.5%                     $0              $0                      10



                  CAPITAL PROJECTS TOTAL INCLUDING INFLATION (Exhibit Ai)                                                                                              $1,179,100




        WILSON & STRICKLAND, INC.                                                                                                                                   EXHIBIT B, Page 6 of 6
                                                                                 EXHIBIT C
                                                                     Common Area Maintenance or Expense
JOB:             SAMPLE OFFICE BUILDING                                                                      ATLANTA, GA                                                    WSI 3663
AGE:             Construction Year: 1998                                                                     289,879 Rentable Square Feet                                 27-Jun-2007

Item    Photo    Item                                                                                                                    Unit                                 Deferred Item
 No.    Ref's    Description                                                                                  Quantity Units             Cost      Subtotals           Totals or Year No.

 1     SITE ELEMENTS                                                                                                                                                       $0              1

1.01             Landscape/Hardscape Replacements
        18, 19   Ongoing landscape and hardscape replacements will be required.                              Normal Repair and Maintenance


 2     BUILDING STRUCTURE                                                                                                                                           $45,000                2

2.01             Certified Anchor Points
        26-32    Adequate roof anchors that provide fall protection and/or structural support for window
                 cleaning operations and other building maintenance do not exist at this building. ANSI /
                 IWCA I-14.1 (first published on 10/25/2001) applies to devices used to support
                 personnel and equipment as they suspend from a building. ANSI / IWCA I-14.1 is not a
                 law, but a standard by which accident cases are likely to be adjudicated. The building
                 owner’s responsibility is to provide a safe workplace for employees and for contracted
                 services, and buildings must have properly identified anchor points. Buildings without
                 proper anchorage are recommended to be retrofit with roof anchors. These anchors
                 must be designed by a registered professional engineer and inspected annually.

                 The appendix to ANSI / IWCA I-14.1states final implementation of methods,
                 techniques, and equipment should be accomplished within five years from the date of
                 first publication.
                                                                                 Certified Anchor Points             1 sum            $40,000       $40,000                            1
2.02             Façade Access Plan
                 The building owner can provide certified anchor points, but additional certifications
                 (e.g., davits) may imply unnecessary liabilities. In some cases these liabilities may be
                 assigned to the contractor. The appendix to ANSI / IWCA I-14.1 states building
                 owners/managers and their contractors shall develop a mutual understanding of
                 responsibilities and awareness of the Standard within a year of its first publication. We
                 recommend the overall building access requirements be evaluated to meet the intent of
                 ANSI / IWCA I-14.1 but not assign undue liability to the building owner.

                                            Professional development/review of façade access plan                    1 sum             $5,000        $5,000                            1


 3     BUILDING ENVELOPE and EXTERIOR                                                                                                                             $104,500                 3

3.01          Roofing Warranty Transfer
        26-32 Roofing systems at the office tower main roof and penthouse roof are ballasted EPDM
              membranes installed in 1998. The Carlisle warranty indicates a date of completion of
              July 20, 1998 and a fifteen-year warranty period. The warranty contains no
              requirements regarding transfer to new ownership.                                                      1 sum             $5,000        $5,000                            1
3.02          Shade Beam Connection Repairs
        34-35 Cracking and spalling were problems in a number of the precast concrete shade
              beams at their end bearing points. About ten locations exist that have the potential for
              similar deterioration. An allowance for waterproof coatings is included for future
              protection.
                                                                                Rigging and Access                   1   sum          $15,000       $15,000                            d
                                                          Connection repair - severe deterioration                   1   loc           $7,500        $7,500                            d
                                                         Connection repair - medium deterioration                    2   loc           $4,500        $9,000                            d
                                                            Connection repair - light deterioration                  4   loc           $2,500       $10,000                            d
                                                                                Top surface coating                  1   sum          $10,000       $10,000                            d
3.03          Precast Panel Hardware Coating
         36   The precast panel connection hardware visible at roof level was showing corrosion and
              will require coating periodically.                                                             Normal Repair and Maintenance
3.04          Precast Panel Repairs
         37   Although, close-up observations from swing stage or lift were not included in the scope
              of services, various cracks and spalls were observed from ground level and other
              accessible locations. There were corner breaks in the precast panels at the north end
              at the 8th and 7th levels. The observed problems did not appear to indicate systemic
              deficiencies in the precast concrete panels, and the damage could have been from
              original construction. Spot repairs are assumed to be completed under the Repair and
              Maintenance budget.                                                                            Perform with the work of Item 3.06, above
3.05          Building Exterior Painting
        40-42 Patched spots existed in the exterior EIFS finishes of the penthouse structure. Also,
              algae growth was visible at EIFS areas facing the cooling tower. The penthouse
              structure, and various miscellaneous components at the building exteriors will require
              periodic painting.                                                                             Normal Repair and Maintenance




       WILSON & STRICKLAND, INC.                                                                                                                              EXHIBIT C, Page 1 of 5
                                                                                 EXHIBIT C
                                                                     Common Area Maintenance or Expense
JOB:            SAMPLE OFFICE BUILDING                                                                             ATLANTA, GA                                                    WSI 3663
AGE:            Construction Year: 1998                                                                            289,879 Rentable Square Feet                                 27-Jun-2007

Item    Photo    Item                                                                                                                          Unit                                 Deferred Item
 No.    Ref's    Description                                                                                        Quantity Units             Cost      Subtotals           Totals or Year No.
3.06             Exterior Joint Sealants
       39, 43-49 Localized failures of building exterior sealants were observed at a few locations from
                 ground level and roof level. Close-up observations from a swing stage or lift were not
                 included in the scope of services; however, it is assumed the observed failures are
                 representative of localized failures throughout the building facade. Two locations were
                 found where ceiling tile stains above windows may indicate water intrusion, indicating
                 the need for immediate attention. Spot sealant repairs are competed as periodic repair
                 and maintenance; therefore, no future costs are included.

                                                   Immediate, localized replacement of failed joints                      32 drops          $1,500        $48,000                            1
                                                     Ongoing, periodic replacement of failed joints                Normal Repair and Maintenance
3.07            Glazing Gasket Repairs
        50-52   Observations from ground level revealed a few locations at spandrel glass where
                glazing gaskets were out of alignment. Corrections should be completed at the time of
                joint sealant corrections.
                                                  Immediate, localized repair of displaced gaskets                 Perform with the work of Item 3.06, above
                                                       Ongoing, periodic repair of glazing gaskets                 Normal Repair and Maintenance
3.08            Insulated Glass Units Seal Failures
                No instances of clouded IGU's were found, and property management report no
                problem history. Significant replacements are not anticipated during the analysis
                period, and spot replacements are assumed to be normal repair and maintenance.                     Normal Repair and Maintenance
3.09            Glass Etching
                Glass "etching" caused by laitance runoff from precast concrete panels is common in
                office buildings; however, minimal streaking of windows was evident. Property
                management indicated a remedial project associated with the windows may have been
                undertaken more than four years ago; however, details of this project were not
                available.                                                                                         Information - No Action Recommended
3.10            Main Lobby and Common area Door Replacements
                Wear and tear will drive component replacements or full replacements.                              Normal Repair and Maintenance


 4     INTERIORS                                                                                                                                                                 $0              4

4.01            Window Blinds
                Replacement of window blinds is expected to be completed as normal repair and
                maintenance or tenant improvements.                                                                Normal Repair and Maintenance


 5     HVAC and PLUMBING                                                                                                                                                  $91,700                5

5.01            Self-Contained Unit Component Replacements
        66-67   One self-contained air conditioning unit is located on each typical office floor. These
                units were installed during the original construction and include the original fans and
                compressors. Complete replacement of self-contained units is not expected during the
                analysis period, but component replacements are probable. Component service lives
                are published (ASHRAE TC 1.8) to be 20 years for reciprocating compressors,
                20 years for DX and water coils, 24 years for shell-and-tube heat exchangers, and
                25 years for centrifugal fans. However, experience indicates median service lives
                stated by ASHRAE are exceeded in most commercial office building construction. The
                replacements presented below are based on the Client's asset management plan. It is
                believed the centrifugal fans will not be replaced, but will be fitted with new shafts and
                bearings. Replacement of condensate pans is assumed to be completed at the time of
                coil replacement.
                                                                   RECIPROCATING COMPRESSORS
                                                                               Assumed rehabilitation cycle:              20 years
                                                                                       Effective Date Installed:        1998
                                                                                               Units in budget:           60
                                                            Normal Distribution Curve Standard Deviation:           0.5+EUL/10
                                                                   Reciprocating Compressors - Year           1            0     each        $2,000            $0                        1
                                                                                                      Year    2            0     each        $2,000            $0                        2
                                                                                                      Year    3            0     each        $2,000            $0                        3
                                                                                                      Year    4            0     each        $2,000            $0                        4
                                                                                                      Year    5            0     each        $2,000            $0                        5
                                                                                                      Year    6            1     each        $2,000        $2,000                        6
                                                                                                      Year    7            1     each        $2,000        $2,000                        7
                                                                                                      Year    8            3     each        $2,000        $6,000                        8
                                                                                                      Year    9            5     each        $2,000       $10,000                        9
                                                                                                      Year 10              7     each        $2,000       $14,000                        10




       WILSON & STRICKLAND, INC.                                                                                                                                    EXHIBIT C, Page 2 of 5
                                                                              EXHIBIT C
                                                                  Common Area Maintenance or Expense
JOB:           SAMPLE OFFICE BUILDING                                                                         ATLANTA, GA                                               WSI 3663
AGE:           Construction Year: 1998                                                                        289,879 Rentable Square Feet                            27-Jun-2007

Item   Photo   Item                                                                                                                     Unit                              Deferred Item
 No.   Ref's   Description                                                                                     Quantity Units           Cost   Subtotals           Totals or Year No.
                                EVAPORATOR/ECONOMIZER COILS and CONDENSATE PANS
                                                                         Assumed rehabilitation cycle:              20 years
                                                                                Effective Date Installed:         1998
                                                                                           Units in budget:         12
                                                      Normal Distribution Curve Standard Deviation:            0.5+EUL/10
                                     Evaporator/Economizer Coils And Condensate Pans - Year              1            0     each     $10,000         $0                        1
                                                                                                  Year   2            0     each     $10,000         $0                        2
                                                                                                  Year   3            0     each     $10,000         $0                        3
                                                                                                  Year   4            0     each     $10,000         $0                        4
                                                                                                  Year   5            0     each     $10,000         $0                        5
                                                                                                  Year   6            0     each     $10,000         $0                        6
                                                                                                  Year   7            0     each     $10,000         $0                        7
                                                                                                  Year   8            1     each     $10,000    $10,000                        8
                                                                                                  Year   9            1     each     $10,000    $10,000                        9
                                                                                                  Year 10             1     each     $10,000    $10,000                        10
                                                                             CONDENSER TUBES
                                                                         Assumed rehabilitation cycle:              25 years
                                                                                Effective Date Installed:         1998
                                                                                           Units in budget:         12
                                                      Normal Distribution Curve Standard Deviation:            0.5+EUL/10
                                                                         Condenser Tubes - Year          1            0     each      $5,000         $0                        1
                                                                                                  Year   2            0     each      $5,000         $0                        2
                                                                                                  Year   3            0     each      $5,000         $0                        3
                                                                                                  Year   4            0     each      $5,000         $0                        4
                                                                                                  Year   5            0     each      $5,000         $0                        5
                                                                                                  Year   6            0     each      $5,000         $0                        6
                                                                                                  Year   7            0     each      $5,000         $0                        7
                                                                                                  Year   8            0     each      $5,000         $0                        8
                                                                                                  Year   9            0     each      $5,000         $0                        9
                                                                                                  Year 10             0     each      $5,000         $0                        10
                                                                CENTRIFUGAL FANS (REBUILD)
                                                                         Assumed rehabilitation cycle:              25 years
                                                                                Effective Date Installed:         1998
                                                                                           Units in budget:         12
                                                      Normal Distribution Curve Standard Deviation:            0.5+EUL/10
                                                                Centrifugal Fans (Rebuild) - Year        1            0     each      $5,000         $0                        1
                                                                                                  Year   2            0     each      $5,000         $0                        2
                                                                                                  Year   3            0     each      $5,000         $0                        3
                                                                                                  Year   4            0     each      $5,000         $0                        4
                                                                                                  Year   5            0     each      $5,000         $0                        5
                                                                                                  Year   6            0     each      $5,000         $0                        6
                                                                                                  Year   7            0     each      $5,000         $0                        7
                                                                                                  Year   8            0     each      $5,000         $0                        8
                                                                                                  Year   9            0     each      $5,000         $0                        9
                                                                                                  Year 10             0     each      $5,000         $0                        10
5.02         Cooling Tower Rehabilitation
       68-72 Component replacements and internal coatings are expected within the analysis
             period. Cooling tower replacements are covered in the Capital (Exhibit B), Item 5.02.

                                                                          Assumed rehabilitation cycle:       6 years
                                                               Effective Date of Previous Rehabilitation:  2006
                                                           First Occurrence Predicted in Analysis Year:       6
                                                               Cooling Tower Rehabilitation - Year      6  1110 ton                   $20.00    $22,200                            6
                                                                                               Year 12 Beyond Analysis Period
5.03           Water Treatment Systems
        75     Condenser water treatment systems are expected to require replacements.
                                                                             Water Treatment Systems                  1 sum           $2,500     $2,500                            5
5.04           HVAC Controls
               Component replacements in the control systems is assumed to be normal repair and
               maintenance.                                                                                   Normal repair and maintenance
5.05           Pumps and Motors
               Repair, rebuilding, or replacement of sewage, storm, and condenser water pumps and
               motors are assumed to be normal repair and maintenance.                                        Normal Repair and Maintenance
5.06           Miscellaneous Fans and Fan Motors
               Repair, rebuilding, or replacement of toilet exhaust, machine room ventilation, and
               other fans and motors are assumed to be normal repair and maintenance.                         Normal Repair and Maintenance
5.07           Domestic Water Heaters
               Water heaters (electric) are from the original construction, and the need for
               replacement is anticipated during the analysis period. (Assumed EUL of water heaters
               = 12 yrs)
                                                                               85-Gallon water heaters                1 each          $3,000     $3,000                            4
5.08           Toilet and Sink Valves
               Repair, rebuilding, or replacement of toilet and sink valves are assumed to be normal
               repair and maintenance.                                                                        Normal Repair and Maintenance




       WILSON & STRICKLAND, INC.                                                                                                                          EXHIBIT C, Page 3 of 5
                                                                                    EXHIBIT C
                                                                        Common Area Maintenance or Expense
JOB:              SAMPLE OFFICE BUILDING                                                                          ATLANTA, GA                                               WSI 3663
AGE:              Construction Year: 1998                                                                         289,879 Rentable Square Feet                            27-Jun-2007

Item     Photo    Item                                                                                                                      Unit                              Deferred Item
 No.     Ref's    Description                                                                                      Quantity Units           Cost   Subtotals           Totals or Year No.
5.09              Piping Replacements
                  Original piping systems exist in most areas of the building, but due diligence testing
                  was not undertaken. The building is relatively young from the standpoint of piping
                  systems life, and replacements are not expected during the analysis period.
                                                                                                                  Normal Repair and Maintenance


 6      ELECTRICAL                                                                                                                                                         $0               6

6.01              Infrared Scans and Electrical Tighten-up
                  Provide annual infrared scanning of all electrical panels according to the requirements
                  of NFPA. Based on feedback from property management, scans have been done
                  annually.                                                                                       Normal Repair and Maintenance


 7      CONVEYING SYSTEMS                                                                                                                                                  $0               7

7.01              Periodic Elevator Corrections
          146     Periodic corrections and modifications (e.g., installation of door restrictors) are likely to
                  be required.                                                                                    Normal Repair and Maintenance


 8      LIFE SAFETY & PROPERTY PROTECTION                                                                                                                                  $0               8

8.01             Wall Penetration Corrections
                 Penetrations in walls should be sealed to maintain fire ratings.                                 Normal Repair and Maintenance
8.02             Egress Components
                 Propping of egress doorways is a common problem in office buildings, and special
                 hardware or magnetic holders may be desirable on some doors.                                     Normal Repair and Maintenance
8.03             Beam Pocket Smoke Detectors
        112, 114 Smoke detectors are installed in some area within joist pockets and in other locations
                 at the bottoms of joists. Smoke detectors installed in rooms with beams greater than
                 12” deep shall have detectors located in each beam pocket. Additional smoke
                 detectors may be require during fire department inspections based on NFPA 72
                 Section 2-3.4.6.1, which requires a smoke detector in each beam pocket when beams
                 are greater than 12” deep.                                                                       Normal Repair and Maintenance
8.04             Operational Fire Safety Issues
                 Tenant operations should be adjusted to eliminate high storage above the level of
                 sprinkler heads.                                                                                 Normal Repair and Maintenance
8.05             Access Control System Ongoing Maintenance and Updates
                 Periodic replacements are anticipated.                                                           Normal Repair and Maintenance
8.06             CCTV System
        122-123 The closed circuit TV system was recently updated with a new DVR and new color
                 cameras. Periodic, future replacement are expected.                                              Normal Repair and Maintenance


 9      DISABLED ACCESSIBILITY                                                                                                                                             $0               9

9.01              Parking Garage Elevator Access
        138-139   Crosswalks are not provided from disabled parking spaces to the parking structure
                  elevators.                                                                                      Normal Repair and Maintenance


10 STRUCTURED PARKING                                                                                                                                             $233,600                 10

10.01          Parking Space Striping
        126-127Periodic striping of parking spaces will be required.                                              Normal Repair and Maintenance
10.02          Painting of Parking Structure Exterior Concrete
      128, 130 Color fading was evident in the exterior, coated precast concrete.

                                                   Painting of Parking Structure Exterior Concrete                   44,880 sq.ft.         $3.00   $134,600                            3
10.03         Metals Corrosion and Coating
      131-133 There was corrosion of the steel columns at the southwest corner of the structure, and
        159
              corrosion of precast concrete support hardware was common. Corrosion existed in a
              steel beam at the northwest corner of level 2. Removal of rust and deteriorated
              coatings will be required prior to application of coatings. Epoxy or other high-
              performance coatings are assumed at exposed structural steel and precast concrete
              connection hardware.
                                                                     Metals Corrosion and Coating                         1 allow.       $40,000    $40,000                            1
10.04         Barrier Cable Deterioration and Attachment
      134-136 Damage to the plastic sheath of the barrier cables and corrosion of the cables existed
              at the areas exposed to sunlight. Runoff from rusted cables was causing staining at
              concrete elements. Also, many barrier cables were apparently not properly back-
              tensioned to properly set the holding wedges.
                                                       Barrier Cable Deterioration and Attachment                    21,468 lin.ft.        $2.75    $59,000                            1




        WILSON & STRICKLAND, INC.                                                                                                                             EXHIBIT C, Page 4 of 5
                                                                         EXHIBIT C
                                                             Common Area Maintenance or Expense
JOB:             SAMPLE OFFICE BUILDING                                                                   ATLANTA, GA                                                  WSI 3663
AGE:             Construction Year: 1998                                                                  289,879 Rentable Square Feet                               27-Jun-2007

Item     Photo   Item                                                                                                               Unit                                 Deferred Item
 No.     Ref's   Description                                                                               Quantity Units           Cost       Subtotals          Totals or Year No.

11 CONTINGENCY (10.00%)                                                                                                                                        $47,600             11
                                                                                                                                   Yearly          Yearly
                                                                           R&M Projects Contingency:        10.00%               Subtotals   Contingency
       % of up-front capital (first year) total                                                       u      10.0%   pct.              $0            $0                       u
       % of deferred (first year) total                                                               d      10.0%   pct.        $51,500         $5,200                       d
       % of first year total                                                                          1      10.0%   pct.       $197,000        $19,700                       1
       % of second year total                                                                         2      10.0%   pct.              $0            $0                       2
       % of third year total                                                                          3      10.0%   pct.       $134,600        $13,500                       3
       % of fourth year total                                                                         4      10.0%   pct.         $3,000           $300                       4
       % of fifth year total                                                                          5      10.0%   pct.         $2,500           $300                       5
       % of sixth year total                                                                          6      10.0%   pct.        $24,200         $2,400                       6
       % of seventh year total                                                                        7      10.0%   pct.         $2,000           $200                       7
       % of eighth year total                                                                         8      10.0%   pct.        $16,000         $1,600                       8
       % of ninth year total                                                                          9      10.0%   pct.        $20,000         $2,000                       9
       % of tenth year total                                                                         10      10.0%   pct.        $24,000         $2,400                       10



                 CAM or EXPENSE PROJECTS TOTAL WITHOUT INFLATION (Exhibit A)                                                                                 $522,400

12 INFLATION (3.0% Annually)                                                                                                                                   $32,200             12
                                                                                                                   Round           Yearly          Yearly
                                                  Inflation Rate (also applied to contingency amounts):       3.0% Actual        Subtotals       Inflation
       % of up-front capital (first year) total                                                       u       0.0%                     $0              $0                     u
       % of deferred (first year) total                                                               d       0.0%               $56,700               $0                     d
       % of first year total                                                                          1       0.0%              $216,700               $0                     1
       % of second year total                                                                         2       3.0%                     $0              $0                     2
       % of third year total                                                                          3       6.1%    6.08      $148,100         $9,000                       3
       % of fourth year total                                                                         4       9.3%    9.09        $3,300           $300                       4
       % of fifth year total                                                                          5      12.6% 10.71          $2,800           $300                       5
       % of sixth year total                                                                          6      15.9% 16.17         $26,600         $4,300                       6
       % of seventh year total                                                                        7      19.4% 18.18          $2,200           $400                       7
       % of eighth year total                                                                         8      23.0% 22.73         $17,600         $4,000                       8
       % of ninth year total                                                                          9      26.7% 26.82         $22,000         $5,900                       9
       % of tenth year total                                                                         10      30.5% 30.30         $26,400         $8,000                       10



                 CAM or EXPENSE PROJECTS TOTAL INCLUDING INFLATION (Exhibit Ai)                                                                              $554,600




       WILSON & STRICKLAND, INC.                                                                                                                         EXHIBIT C, Page 5 of 5
                                                                                     EXHIBIT D
                                                                              Potential Enhancements
JOB:             SAMPLE OFFICE BUILDING                                                                       ATLANTA, GA                                               WSI 3663
AGE:             Construction Year: 1998                                                                      289,879 Rentable Square Feet                            27-Jun-2007

Item     Photo   Item                                                                                                                   Unit                              Deferred Item
 No.     Ref's   Description                                                                                   Quantity Units           Cost   Subtotals           Totals or Year No.

 1      SITE ELEMENTS                                                                                                                                                  $0               1

                 No Enhancement items have been identified in this category


 2      BUILDING STRUCTURE                                                                                                                                             $0               2



 3      BUILDING ENVELOPE and EXTERIOR                                                                                                                                 $0               3

                 No Enhancement items have been identified in this category


 4      INTERIORS                                                                                                                                                      $0               4

                 No Enhancement items have been identified in this category


 5      HVAC and PLUMBING                                                                                                                                       $22,500                 5

5.01             HVAC Control System Portable Interface
                 A laptop computer with Tracer Summit software for use by the Chief Engineer would
                 allow remote monitoring and control of the building automation system.                              1 sum            $7,500     $7,500                            1
5.02             Variable Speed Operation
                 Additional variable speed operation might prove to be a worthwhile investment for some
                 fans and pumps.
                                                                                   Self-contained units              3 each           $5,000    $15,000                            2


 6      ELECTRICAL                                                                                                                                                     $0               6

                 No Enhancement items have been identified in this category


 7      CONVEYING SYSTEMS                                                                                                                                              $0               7

                 No Enhancement items have been identified in this category


 8      LIFE SAFETY & PROPERTY PROTECTION                                                                                                                              $0               8

                 No Enhancement items have been identified in this category


 9      DISABLED ACCESSIBILITY                                                                                                                                         $0               9

                 No Enhancement items have been identified in this category


10 STRUCTURED PARKING                                                                                                                                         $442,200                 10

10.01         Split-Face Block Penetrating Water Repellent
          129 There was evidence of efflorescence and possible organic growth at a few locations in
              the split-face block of the south elevation. Application of a penetrating water repellent
              will significantly reduce water absorption.
                                                       Split-Face Block Penetrating Water Repellent             10,000 sq.ft.          $1.00    $10,000                            3
10.02         Parking Garage Concrete Protection and Waterproofing
      163-164 Over time damage at intermediate decks is likely, and a penetrating water repellent is
              recommended.
                                                 Intermediate Levels
                                                                                     Estimated Useful Life:          7 years
                                          Penetrating Water Repellent - Intermediate Levels - Year        2    288,090 sq.ft.          $0.75   $216,100                            2
                                                                                         Recoat - Year    9    288,090 sq.ft.          $0.75   $216,100                            9




        WILSON & STRICKLAND, INC.                                                                                                                         EXHIBIT D, Page 1 of 2
                                                                               EXHIBIT D
                                                                        Potential Enhancements
JOB:             SAMPLE OFFICE BUILDING                                                                   ATLANTA, GA                                                   WSI 3663
AGE:             Construction Year: 1998                                                                  289,879 Rentable Square Feet                                27-Jun-2007

Item     Photo   Item                                                                                                               Unit                                  Deferred Item
 No.     Ref's   Description                                                                               Quantity Units           Cost       Subtotals           Totals or Year No.

11 CONTINGENCY (10.00%)                                                                                                                                         $46,500             11
                                                                                                                                   Yearly          Yearly
                                                                 Enhancements Projects Contingency:         10.00%               Subtotals   Contingency
       % of up-front capital (first year) total                                                       u      10.0%   pct.              $0            $0                        u
       % of deferred (first year) total                                                               d      10.0%   pct.              $0            $0                        d
       % of first year total                                                                          1      10.0%   pct.         $7,500           $800                        1
       % of second year total                                                                         2      10.0%   pct.       $231,100        $23,100                        2
       % of third year total                                                                          3      10.0%   pct.        $10,000         $1,000                        3
       % of fourth year total                                                                         4      10.0%   pct.              $0            $0                        4
       % of fifth year total                                                                          5      10.0%   pct.              $0            $0                        5
       % of sixth year total                                                                          6      10.0%   pct.              $0            $0                        6
       % of seventh year total                                                                        7      10.0%   pct.              $0            $0                        7
       % of eighth year total                                                                         8      10.0%   pct.              $0            $0                        8
       % of ninth year total                                                                          9      10.0%   pct.       $216,100        $21,600                        9
       % of tenth year total                                                                         10      10.0%   pct.              $0            $0                        10



                 ENHANCEMENT PROJECTS TOTAL WITHOUT INFLATION (Exhibit A)                                                                                     $511,200

12 INFLATION (3.0% Annually)                                                                                                                                    $71,700             12

                                                  Inflation Rate (also applied to contingency amounts):       3.0% Actual        Subtotals
       % of up-front capital (first year) total                                                       u       0.0%                     $0            $0                        u
       % of deferred (first year) total                                                               d       0.0%                     $0            $0                        d
       % of first year total                                                                          1       0.0%                $8,300             $0                        1
       % of second year total                                                                         2       3.0%    2.99      $254,200         $7,600                        2
       % of third year total                                                                          3       6.1%    6.36       $11,000           $700                        3
       % of fourth year total                                                                         4       9.3%                     $0            $0                        4
       % of fifth year total                                                                          5      12.6%                     $0            $0                        5
       % of sixth year total                                                                          6      15.9%                     $0            $0                        6
       % of seventh year total                                                                        7      19.4%                     $0            $0                        7
       % of eighth year total                                                                         8      23.0%                     $0            $0                        8
       % of ninth year total                                                                          9      26.7% 26.67        $237,700        $63,400                        9
       % of tenth year total                                                                         10      30.5%                     $0            $0                        10



                 ENHANCEMENT PROJECTS TOTAL INCLUDING INFLATION (Exhibit Ai)                                                                                  $582,900




       WILSON & STRICKLAND, INC.                                                                                                                          EXHIBIT D, Page 2 of 2
                                                                                     EXHIBIT D
                                                                              Potential Enhancements
JOB:             SAMPLE OFFICE BUILDING                                                                       ATLANTA, GA                                               WSI 3663
AGE:             Construction Year: 1998                                                                      289,879 Rentable Square Feet                            27-Jun-2007

Item     Photo   Item                                                                                                                   Unit                              Deferred Item
 No.     Ref's   Description                                                                                   Quantity Units           Cost   Subtotals           Totals or Year No.

 1      SITE ELEMENTS                                                                                                                                                  $0               1

                 No Enhancement items have been identified in this category


 2      BUILDING STRUCTURE                                                                                                                                             $0               2



 3      BUILDING ENVELOPE and EXTERIOR                                                                                                                                 $0               3

                 No Enhancement items have been identified in this category


 4      INTERIORS                                                                                                                                                      $0               4

                 No Enhancement items have been identified in this category


 5      HVAC and PLUMBING                                                                                                                                       $22,500                 5

5.01             HVAC Control System Portable Interface
                 A laptop computer with Tracer Summit software for use by the Chief Engineer would
                 allow remote monitoring and control of the building automation system.                              1 sum            $7,500     $7,500                            1
5.02             Variable Speed Operation
                 Additional variable speed operation might prove to be a worthwhile investment for some
                 fans and pumps.
                                                                                   Self-contained units              3 each           $5,000    $15,000                            2


 6      ELECTRICAL                                                                                                                                                     $0               6

                 No Enhancement items have been identified in this category


 7      CONVEYING SYSTEMS                                                                                                                                              $0               7

                 No Enhancement items have been identified in this category


 8      LIFE SAFETY & PROPERTY PROTECTION                                                                                                                              $0               8

                 No Enhancement items have been identified in this category


 9      DISABLED ACCESSIBILITY                                                                                                                                         $0               9

                 No Enhancement items have been identified in this category


10 STRUCTURED PARKING                                                                                                                                         $442,200                 10

10.01         Split-Face Block Penetrating Water Repellent
          129 There was evidence of efflorescence and possible organic growth at a few locations in
              the split-face block of the south elevation. Application of a penetrating water repellent
              will significantly reduce water absorption.
                                                       Split-Face Block Penetrating Water Repellent             10,000 sq.ft.          $1.00    $10,000                            3
10.02         Parking Garage Concrete Protection and Waterproofing
      163-164 Over time damage at intermediate decks is likely, and a penetrating water repellent is
              recommended.
                                                 Intermediate Levels
                                                                                     Estimated Useful Life:          7 years
                                          Penetrating Water Repellent - Intermediate Levels - Year        2    288,090 sq.ft.          $0.75   $216,100                            2
                                                                                         Recoat - Year    9    288,090 sq.ft.          $0.75   $216,100                            9




        WILSON & STRICKLAND, INC.                                                                                                                         EXHIBIT D, Page 1 of 2
                                                                               EXHIBIT D
                                                                        Potential Enhancements
JOB:             SAMPLE OFFICE BUILDING                                                                   ATLANTA, GA                                                   WSI 3663
AGE:             Construction Year: 1998                                                                  289,879 Rentable Square Feet                                27-Jun-2007

Item     Photo   Item                                                                                                               Unit                                  Deferred Item
 No.     Ref's   Description                                                                               Quantity Units           Cost       Subtotals           Totals or Year No.

11 CONTINGENCY (10.00%)                                                                                                                                         $46,500             11
                                                                                                                                   Yearly          Yearly
                                                                 Enhancements Projects Contingency:         10.00%               Subtotals   Contingency
       % of up-front capital (first year) total                                                       u      10.0%   pct.              $0            $0                        u
       % of deferred (first year) total                                                               d      10.0%   pct.              $0            $0                        d
       % of first year total                                                                          1      10.0%   pct.         $7,500           $800                        1
       % of second year total                                                                         2      10.0%   pct.       $231,100        $23,100                        2
       % of third year total                                                                          3      10.0%   pct.        $10,000         $1,000                        3
       % of fourth year total                                                                         4      10.0%   pct.              $0            $0                        4
       % of fifth year total                                                                          5      10.0%   pct.              $0            $0                        5
       % of sixth year total                                                                          6      10.0%   pct.              $0            $0                        6
       % of seventh year total                                                                        7      10.0%   pct.              $0            $0                        7
       % of eighth year total                                                                         8      10.0%   pct.              $0            $0                        8
       % of ninth year total                                                                          9      10.0%   pct.       $216,100        $21,600                        9
       % of tenth year total                                                                         10      10.0%   pct.              $0            $0                        10



                 ENHANCEMENT PROJECTS TOTAL WITHOUT INFLATION (Exhibit A)                                                                                     $511,200

12 INFLATION (3.0% Annually)                                                                                                                                    $71,700             12

                                                  Inflation Rate (also applied to contingency amounts):       3.0% Actual        Subtotals
       % of up-front capital (first year) total                                                       u       0.0%                     $0            $0                        u
       % of deferred (first year) total                                                               d       0.0%                     $0            $0                        d
       % of first year total                                                                          1       0.0%                $8,300             $0                        1
       % of second year total                                                                         2       3.0%    2.99      $254,200         $7,600                        2
       % of third year total                                                                          3       6.1%    6.36       $11,000           $700                        3
       % of fourth year total                                                                         4       9.3%                     $0            $0                        4
       % of fifth year total                                                                          5      12.6%                     $0            $0                        5
       % of sixth year total                                                                          6      15.9%                     $0            $0                        6
       % of seventh year total                                                                        7      19.4%                     $0            $0                        7
       % of eighth year total                                                                         8      23.0%                     $0            $0                        8
       % of ninth year total                                                                          9      26.7% 26.67        $237,700        $63,400                        9
       % of tenth year total                                                                         10      30.5%                     $0            $0                        10



                 ENHANCEMENT PROJECTS TOTAL INCLUDING INFLATION (Exhibit Ai)                                                                                  $582,900




       WILSON & STRICKLAND, INC.                                                                                                                          EXHIBIT D, Page 2 of 2
EXHIBIT G, PHOTOGRAPHS and CAPTIONS WOULD APPEAR HERE

								
To top