Check out our video on Phase I Environmental Site Assessments (ESAs) here.

This brief educational video covers the purpose of a Phase I ESA, the ESA process and what is included in a Phase I Report. We hope this is helful to commercial real estate professionals, especially those who may be new to ESAs!

In September 2010 the Small Business Jobs Act was passed into law.  Yesterday the rules for the refinance mechanism within the 504 loan program were announced.  This program will provide a significant tool for small business owners to refinance existing 504 program eligible debt.  Some key points from the new 504 Refi rules:

Eligibility

• Three sources of funding for the refinance project:
  • Third Party Lender (at least 50%)
  • SBA (not more than 40%)
  • Borrower (at least 10%)
• Most (at least 85%) of loan being refinanced must be used for 504 eligible purposes.
  • Borrower must certify that the debt meets the eligible use of proceeds standard.
  • Third Party Lender must also certify that it has no evidence of debt not meeting the use of proceeds standard.
• Loans being refinanced must be scheduled to mature on or before 12/31/2012.
• Loans being refinanced must be current.
• Small business must have been in business for two years prior to the submission of the application.
• Third Party loan and 504 loan cannot exceed 90% of the value of the fixed assets securing the loan.
  • The loan may never exceed the outstanding principal balance being refinanced.

Restrictions

• No refinancing of loans with an existing federal guaranty.
  • 7(a) loan
  • USDA loan
• No refinancing of debt to an Associate of the Borrower, SBIC, or New Market Ventures Capital Company.
• No refinancing of existing 504 projects.
• No refinancing where the creditor is in a position to sustain a loss causing a shift to SBA on all or a portion of a potential loss from an existing debt.
• All loans must be funded by the sale of the debenture within six (6) months of approval.
• The CDC must report any delinquency to SBA after loan approval but before loan funding.

As you can see the new regulations are specific in what types of loans can be refinanced and the requirements for both the lender and borrower.  This is a very exciting program from the SBA and should be a significant source of projects through 2012.

Partner recently attended the PCIA Wireless Infrastructure Show in Hollywood, Florida.  The energy was high as business is booming for this industry, including the Phase I Environmental Site Assessment world.  With so great a demand for wireless infrastructure, tower companies and developers were eager to network with various services providers, including those with expertise in Phase I ESAs, NEPA assessments, SHPO / THPO consultation and related environmental and construction services.  In our discussions, we noticed an emphasis on service providers with national coverage and local knowledge.  One industry trend observed was that calls are just a small percentage of the network usage; the largest and fastest growing network drain is video and data downloads.  Partner expects this industry will continue to grow as the demand for smart phones and large downloads increases.

A property inspection, also known as a Physical Needs Assessment (PNA), is one of the first steps in an equity or transfer of ownership lending transaction involving Fannie Mae as the insurer of the loan.  Partner Engineering and Science, Inc. specializes in transactions that Fannie Mae consider their “small loans” division. These are loans that are less than 3 million dollars and are specifically for multifamily properties.  Partner provides Fannie Mae an initial assessment of the collateral for the transaction.  One of the standardized forms that Fannie Mae reviews, and that we complete as part of our service, is the “Property Assessment Form 4262”.  In addition to this form, Partner provides a thorough executive summary of all building systems and features.  To complete this, Partner performs a physical inspection of the building and property to assess multiple factors of the overall condition, as well as potential life and safety issues. 

This inspection includes, but is not limited to:

• Interviewing property management regarding building operations, systems and features
• Physical inspection of the structural and mechanical aspects of the subject
• Basic environmental evaluations
• Inspection of fire and related life and safety systems
• Building access and exit features
• General property condition ratings
• Providing estimated capital needs expenditures over the term of the loan
• Ensuring the building conforms to local and state building code requirements
• Compliance with ADA (Americans with Disabilities Act) regulations
• Photograph table demonstrating the observation of all of the above systems and features

Physical Needs Assessments are just one of many services that Partner offers relating to the multifamily property lending industry. In addition to Fannie Mae inspections, Partner offers a plethora of building and environmental services. Partner’s engineers provide our clients with cost effective investigations on a national basis in many different scopes.  Please browse our website http://www.partneresi.com/  to review the services we have available.

Communication is a powerful and positive marketing tool in real estate public relations. However, the mere act of communicating does not necessarily mean messages will be understood. Take for example the sage words of famed baseball manager Casey Stengel who addressing his team said, “Now all you fellows line up alphabetically by height.” Ineffective communication is its own form of Stengelese. Whether it’s the way you express your message or how you interpret what others say. Either way, the results are the same: frequent misunderstanding.

In real estate public relations, there are four mutually dependent elements to effective communication: The medium, audience, message and timing. This simple formula, often ignored by others, is at the foundation of everything we do.

Managed Media Relations

Media relations are more than mere publicity. Deriving real value requires knowing how to expertly manage the process, especially as the methods of information delivery continue to evolve. Fundamental to that success is addressing the needs of all those involved in the dialogue. It requires formulating the message and crystallizing it in a way so that it can be best understood; awareness of the needs and requirements of the great variety of platforms that have redefined the “media;” and recognizing that the way people receive their information has changed. Understanding this allows companies to enjoy managed exposure in targeted media and receive expert training and preparation for all types of interview situations.