Jack Schoen - Commercial Real Estate Inspectors, LLCschoen -1131 industrial ave, oxnard, ca 93030

schoen -1131 industrial ave, oxnard, ca 93030

Commercial Real Estate Inspections, LLC. 2550 Honolulu Ave.#101, Montrose, CA, 91020 Page 1All Rights Reserved Copyright 2007 Phone 818.957.4654 Fax 818.949.4435 www.creillc.com

RISK Assessment® ReportDecember 16, 2019

Jack Schoen 1131 Industrial Ave. Oxnard, CA 93030

Inspector - Charles SimingtonConfidential and Proprietary

2550 Honolulu Ave. #101, Montrose, CA 91020818.957.4654 www.creillc.com



Jack Schoen 1131 Industrial Ave. Oxnard, CA 93030


Commercial Real Estate Inspections, LLC. 2550 Honolulu Ave., Montrose, CA 91020 Page 1All Rights Reserved Copyright 2007 Phone 818.957.4654 Fax 818.949.4435 www.creillc.com

This is an assessment of the five major systems - Plumbing, Electrical, Heating and AirConditioning, Structure and Roofing along with an assessment of any other current deferred maintenanceissues for the site.

This assessment will cover three aspects of these systems per industry standards, namely:

1. Expected useful life left in each system.2. Maintenance/Repairs that are needed immediately for each system.3. Total costs that are expected over the next five years for each system.

Note: The cost estimates are industry standards per the R.S. Means - 2007 Building Construction CostData 20th Annual Western Edition along with review and consultation with local contractors.

Although care and thought have gone into this assessment there are many variables that can cause the actualprices to differ greatly, such as: local building ordinances, requirements, specifications and details, localdemand for labor, materials, etc.

No implied warrantee is given.

No cosmetic concerns have been addressed in these estimates.

No Routine Maintenance concerns have been addressed in these estimates below $1000.

ADDRESS: 1131 Industrial Ave., Oxnard, CA 93030

CLIENT: Jack Schoen December 16, 2019



PLUMBING:

1. The expected useful life left in the Plumbing System:

The expected useful life left appears to be approx. 30 - 50+ years - If properlymaintained.

2. What Maintenance/Repairs are needed immediately for the Plumbing System:

A. The system appeared to be in serviceable condition at the time of theinspection and other than routine maintenance no immediate significantdeficiencies or repairs were observed to be needed.B. Installing or locating an approved pressure regulator for the supply line systemis advised for health and safety.C. It is advised to have a protective barrier installed in front of the main supplyline to help prevent vehicle damage.D. It is advised to have an approved Earth Quake Shut off valve installed on thegas system for safety.E. It is noted that a sewer line camera inspection was performed. Please fullyreview the report before the contingency period is over.F. Hot water is a typical requirement for all restroom sinks for hygienic reasons. It is advised to provide hot water to all required locations such as the restrooms.

3. What costs are expected over the next five years for the Plumbing System:

The cost for the above listed repairs/upgrades is approx. $2,000 - $3,000

TOTAL:

$2,000 - $3,000

ELECTRICAL:

1. What is the expected useful life left in the Electrical System:

The expected useful life left of the electrical system is approximately - 30 - 50+years

2. What Maintenance/Repairs are needed immediately for the Electrical System:

Repairs by a qualified electrical specialist to the electrical service cable on the roofis advised for health and safety.Some Repairs of the electrical system are advised at this time for health andsafety, such as ensuring all knockouts at the panels are properly covered; ensuring



all panels are properly labeled as is required by code; ensuring that all outlets areproperly wired; ensuring that all outlets have covers installed.

3. What costs are expected over the next five years for the Electrical System:

Beyond routine maintenance no significant costs are anticipated for the ElectricalSystem over the next five years.

TOTAL:

Routine Maintenance

HEATING AND COOLING:

1. What is the expected useful life left in the Heating and Air ConditioningSystem:

The furnace unit is past its expected useful life.

2. What Maintenance/Repairs are needed immediately for the Heating and AirConditioning system:

It is advised to the system cleaned and serviced at this time.

3. What costs are expected over the next five years for the Heating and AirConditioning System:

Within the next five years significant maintenance, repairs and/or replacementswill most likely be needed to the units per industry standards due to age. Anticipated replacement cost for the units on this site is approx. $3,000 - $5,000at current costs.

TOTAL:

$3,000 - $5,000+

ROOF:

1. What is the expected useful life left in the Roofing System:

It appears that the roof has approx. 3 - 5 years of expected useful life left in it if itis diligently and properly maintained.

2. What Maintenance/Repairs are needed immediately for the Roofing System:

The roof is in need of maintenance or repairs to the existing roof system at this



time to help ensure a leak free condition at this time.Though full review by a qualified roofing contractor is recommended at this time,it appears diligent annual maintenance will be needed for this roofing system andreplacement within the next five years replacement is almost likely.

3. What costs are expected over the next five years for the Roofing System:

In five years replacement of the roof appears likely. Estimated costs: $50,000 -$75,000

TOTAL:

$50,000 - $75,000

STRUCTURE:

1. What is the expected useful life left in the Structural System:

It appears that the expected useful life is from roughly 30 - 50+ years if properlymaintained.

2. What Maintenance/Repairs are needed immediately for the Structural System:

There are areas of damage and deterioration to the slab foundation where reviewand repairs by a qualified structural expert are advised. Due to age a seismic review of the building's structure is recommended todetermine feasible, cost-effective upgrades to improve the building's resistance toearthquake movement according to improvements and upgrades to earthquakesafety standards since the building's construction. This is advised as aprecautionary measure and not due to any significant deficiencies observed.

3. What costs are expected over the next five years for the Structural System:

Due to the nature of structural repairs requiring review by a qualified structuralexpert pricing can vary greatly. Estimated Costs of repairs to the slab which werevisible at the time of inspection are approx. $5,000 to $10,000 are to be expected.

TOTAL:

$5,000 - $10,000+

Specialty Evaluation isneeded to determinethe scope of work



GENERAL MAINTENANCE & REPAIRS:

1. What is the expected useful life left in the Site:

The expected useful life left in the site is approx. 30 - 40 years with routinemaintenance.

2. What Maintenance/Repairs are needed immediately currently for the Site:

A. It is advised to have the exterior of the building fully patched and painted tohelp ensure longer lasting life and help minimize moisture intrusion. Note: due tothe age of the building ensuring all peeling paint is properly dealt with due to thepossible presence of lead based paint is needed for health and safety. B. The Exterior Doors are in need of some Repairs/Replacements. Full review bya qualified door specialist is advised and all needed repairs/replacements areadvised.C. Some repairs to the parking areas are needed then it is advised to have theparking areas fully resealed and restriped at this time.D. Testing of the spray texture ceilings is advised to determine if any asbestostype materials are present. This is advised for health and safety.E. It is advised to have a Phase 1 Environmental inspection done on the site. Thisis to help ensure health and safety. This inspection is typically between $1,500 -$2,000.F. A Fire & Life Safety review by a qualified professional is needed at this time toensure items such as emergency signs, lighting access and egress, trip hazards, etc.are addressed immediately for health and safety. A qualified Fire and Life Safetyreview is typically $600 - $800. The costs to implement the findings can't bedetermined until the review is done and the recommendations are reviewed by aqualified contractor.G. Due to modifications to the site since the original construction that wouldtypically require Building Department permits it is advised to have all paperworkreviewed by a qualified general contractor with the local Department of Buildingand Safety to ensure all proper procedures were taken and approved.

3. What costs are expected over the next five years for the Site:

The cost for the above listed repairs/upgrades is approx. $15,000 - $25,000+

TOTAL:

$15,000 - $25,000+



TOTAL COMBINED ESTIMATED EXPENSES:

It is noted that in this Report a number of Specialty Inspections have beendeemed necessary and are recommended.

Costs associated with the findings of Specialist Inspections can addsignificantly to these Total Combined Estimated Expenses.

Upgrades and renovations to interiors are not included in these costings.

Further review by qualified specialists is advised at this time to determine thefull scope of work.

These estimates should be used as guidelines only.

TOTAL:

$75,000 - $118,000+



INSPECTION CONDITIONSCLIENT & SITE INFORMATION:DATE OF INSPECTION:

December 16, 2019 TIME OF INSPECTION:

11:00 AMCLIENT NAME:

Jack Schoen ADDRESS:

1131 Industrial Ave. Oxnard, CA 93030

INSPECTOR:Charles Simington

CLIMATIC CONDITIONS:WEATHER:

ClearTEMPERATURE:

60's

BUILDING CHARACTERISTICS:BUILDING TYPE:

Industrial Building.STORIES:

Single

UTILITY SERVICES:UTILITIES STATUS:

The utilities were on

OTHER INFORMATION:OCCUPIED:

YesCLIENT PRESENT:

YesGENERAL OVERVIEW:

Overall the site is aged and worn. For the most part the systems exhibittypical wear and tear considering age, type of materials, and quality ofinstallation at the time of construction. The roofing is in need of maintenanceand repairs at this time. The furnace for the office areas is old and worn. The plumbing is generally serviceable, however there is not hot watersupplied.



Due to alterations and modifications observed to the building a fullreview at the local department of Building and Safety is stronglyadvised to determine if all proper procedures have been addressed. Thisis advised by a qualified general contractor at this time.

NOTE - The original date of construction is before 1978. Due to this thereare two aspects that should be taken into consideration during futureupgrades or renovations: 1. The use of lead based paint was common andtypical. 2. The use of asbestos materials in items such as insulation andflooring materials was common. Both items are considered hazardousmaterials and require specialty methods and personnel for mitigation. Theability to determine if these are present require detailed reviews by qualifiedprofessionals which is beyond the scope of a general visual inspection such asthis.

Equipment, furniture and personal items are not moved during theinspection. Due to the amount of items in portions of the building theviews are limited. Limited views can obscure deficiencies.

NOTE: In the Report, building orientation is established by "front, back, leftand right" indications, with "Front" of the building determined by the wallcontaining the building's main entry door.



DEFINITIONS AND STANDARDSTERMS OF THE INSPECTION:SERVICEABLE:

It is the inspectors opinion that this item is doing the job for which it wasintended and exhibits normal wear and tear for it's age.

NEEDS ATTENTION:It is the inspectors opinion that this item is in need of further investigationand/or repairs or appears to be at the end of its expected useful life. Theinspector has made the client aware of this situation by calling it "needsattention" in the report. It is then the clients responsibility to takeappropriate action concerning the situation with the appropriate professionalin a timely manner.

NOT ACCEPTABLE:It is the inspectors opinion that this item is either in need of immediate repairsor is a safety hazard due to adverse conditions. Also the item may be in sucha state of disrepair that significant repairs or replacement is strongly advised.

The inspector has made the client aware of this situation by calling it "notacceptable" and it is then the clients responsibility to take appropriate actionconcerning the situation with the appropriate professional in a timely manner.

STANDARDS:A. The report conforms to the Commercial Standards of Practice of theCalifornia Real Estate Inspection Association and the Business andProfessions Code which defines a commercial real estate inspection as: Theinspection to be performed consists of non-intrusive visual observations tosurvey the readily accessible, easily visible material components, systems andequipment of the building. The inspection is designed to identify materialphysical deficiencies in the buildings components, systems and equipment, asthey exist at the time of the inspection. Unless otherwise agreed between theinspector and client, the specific systems, structures and components of abuilding to be examined are listed in these Commercial Standards of Practice.B. A commercial real estate inspection report provides writtendocumentation of material physical deficiencies discovered in the inspectedbuilding's systems and components which, in the opinion of the Inspector, aresafety hazards, are not functioning properly or appear to be at the end of theirexpected useful life. The report may include the Inspector'srecommendations for correction or further evaluation.

The term material physical deficiencies means the presence of conspicuouspatent defects or material deferred maintenance of the buildings materialsystems, components or building equipment as observed during theinspection. This definition specifically excludes deficiencies that may beremedied by routine maintenance.



C. Inspections performed in accordance with these Standards of Practice arenot technically exhaustive and shall apply to the primary building and itsassociated primary parking structure.



PLUMBING SYSTEMWhile some plumbing observation may be code related, this inspection does not determine if the system complies with code. Supply and waste lines are inspected only where they are accessible and while operating accessible fixtures and drains. Performance of the water flow can vary during different times of the day and performance of the drain during actual usage isundetermined. Drain blockage is common in vacant property. It is advised to have any underground drain lines examined by aspecialist with a camera to determine their actual condition. The following are not included: inaccessible supply or waste lines;leaks in inaccessible areas such as walls, underground or the crawl space; the interior of pipes for mineral or corrosiveclogging, water hammering, solar equipment or water temperature, and the condition of shower pans or if a shower will leakwhen used. No water testing of any type is performed. The type of copper is not part of this inspection and will not bedetermined. The gas system is not tested for leaks and any underground or hidden gas lines are specifically excluded from thisreport. Determining the operation of sewer ejection systems is excluded from this inspection and it should be examined by aspecialist. The shutoff valves under sinks and other plumbing valves, such as the main shut off valve, are not turned or tested.

PLUMBING OVERVIEWOverall the plumbing system, both supply lines and the waste lines, appear tobe serviceable. No significant defects were observed and it appears thattypical and routine maintenance is all that will be needed for the near future.

MAIN WATER SUPPLY LINE:MAIN WATER SHUT OFFLOCATION:

At the front of thebuilding.

MAIN WATER LINEMATERIAL:

The visible portion of the water main is composed of copper. This is thewater supply piping that runs between the city water meter and the building.



CONDITION:Needs Attention:

It was noted there are no protective barriers in front of the exposedpiping. These are strongly recommended to help prevent vehicledamages.

PRESSURE REGULATORCONDITION:

Needs Attention:

No pressure regulator was observed at the main line where it enters thestructure. They are sometimes installed in other locations that are notreadily discoverable.

INTERIOR WATER SUPPLY LINES:WATER SUPPLY PIPINGMATERIAL:

The interior piping that supplies the water throughout the building is made ofcopper where viewed.

CONDITION:Serviceable where viewed.

WATER VOLUME ATFIXTURES:

Serviceable



WATER SUPPLY PIPINGCOMMENTS:

There are abandonedpipes found on thesite. During a generalinspection it is notfully possible to tellwhich ones are still inuse or which oneshave been taken out ofthe system. Thismakes it difficult totell with precision howmuch of the pipinghas been changed outto the newer copperpiping.

WASTE LINES:WASTE LINE MATERIAL:

The piping that takes the waste water to the sewer system is made of castiron where viewed.

CONDITION:The visible waste lines appear to be serviceable.

MAIN SEWER CLEANOUT:Needs Attention:

A main sewer line cleanout access was not found within 3 feet of theperimeter of the building.

WASTE LINE COMMENTS:The interior of the waste lines are not visible. A detailed investigationcan only be performed by the use of an internal camera by a specialtycontractor. Such an inspection is recommended at this time as only bythis kind of inspection can the actual condition of the waste lines bedetermined.



GAS SYSTEM:GAS METER LOCATION:

The meter is located inan underground vault.

GAS SYSTEM CONDITION:Serviceable.

SEISMIC GAS SHUT OFFVALVE:

There is no visible automatic seismic gas shut-off valve(s) on the maingas line(s). This may not be required in this municipality, though it isadvised to have this installed for health and safety purposes.

WATER HEATER OVERVIEW:OVERALL:

No Water Heater was located at the time of the inspection. No hotwater was provided to the plumbing fixtures. Hot water for sinkfixtures is a minimum requirement for health and safety.



EXTERIOR PLUMBING:SPRINKLER SYSTEM:

Exterior sprinklers and plumbing lines are beyond the scope of a generalvisual inspection.

PLUMBING COMMENTS AND RECOMMENDATIONS:WASTE LINERECOMMENDATIONS:

The interior of the waste lines are not visible. A detailed investigationcan only be performed by the use of an internal camera by a specialtycontractor. Such an inspection is recommended at this time.

WATER SUPPLY LINESRECOMMENDATIONS:

No repairs are recommended other than regular routine maintenance of thesystem as needed.

Hot water is a typical requirement for all restroom sinks for hygienicreasons. It is advised to provide hot water to all required locations suchas the restrooms.

GENERAL COMMENTS:The majority of the water supply pipes, waste lines and gas lines areunderground, in walls or installed in concealed parts of the structure and thusare not visible. Their condition cannot be determined and no representationis made as to their status. During the inspection a Representative Sampling ofthe plumbing is viewed. This is to include any limited view areas such as in acrawl space, attic, etc. This is not a detailed specialty inspection.

The adequacy or efficiency of any hot water heater cannot be determined in alimited time visual inspection. It is not known how hot water will get or howlong it will last and this is many times a matter of personal preference.



ELECTRICAL SYSTEMElectrical features are operated with normal controls. The general wiring, switches, outlets and fixtures are randomly checkedin accessible areas. While some observations may be code related, this inspection does not determine if the system complieswith code. The inspection does not determine electrical capacity, determining over current capacity for any item includingappliances, comparing circuit breaker capacity to installed appliance listings; interior or exterior low voltage wiring or fixtures;telephone, security, intercom, stereo, cable or satellite TV, remote controls or timers. The exterior lighting, landscape lightingor any lighting outside the footprint of the building is not inspected. Light bulbs are not removed or changed during aninspection. This inspection does not certify or warrant the system to be free of risk of fire, electrocution or personal injury ordeath.

ELECTRICAL OVERVIEWThe system is in need of some repairs. These repairs do not appear to beoverall significant but are recommended for health and safety.

MAIN ELECTRICAL SUPPLY:PATH OF ELECTRICALSUPPLY:

The electricity issupplied by an overheadline to the building.



ELECTRICAL SUPPLYCONDITION:

Needs Attention:

The main power supply lines are not properly attached to the building. The insulator attachment is broken at both masts.

MAIN SUPPLY PANEL:PANEL LOCATION:

There are two services in the warehouse at the back wall.

MAIN PANEL SPEC'S:Service Amperage - The service amperage rating is not clearly marked.

One panel currently has 60 amps breakers and the second panel has 100 ampsbreakers.



BREAKER SYSTEM:Needs Attention:

There are knock-outsmissing at the panelleaving open spaces inthe cover and thereare exposed liveelectrical items as aresult. This isinexpensive to correctbut should berepaired for healthand safety.

GROUNDING SYSTEM:The connection of the grounding wires to the grounding system was notviewed. It should be connected to a grounding rod and/or the cold waterpiping system but in many cases these connections are not observable and arecovered over within the building.

MAIN PANEL CONDITION:The main electrical panel for the site is overall Serviceable.

COMMENTS:There is a 400 amp disconnection box that appears to be from a previouselectrical service and no longer part of the current system.

ELECTRICAL SUBPANELS:SUBPANEL LOCATION:

There is an electricalsubpanel in the office.



SUBPANEL CONDITION:Serviceable.

INTERIOR ELECTRICAL WIRING:TYPE OF WIRING:

The wiring in the unit consists of plastic coated wires.

TYPE OF WIRING CONDUIT:The conduit that carries the wiring is rigid metal conduit where observed.

WIRING CONDITION:Needs Attention:

There are openjunction boxes withwires exposed. Anysuch junction boxesneed to have coversinstalled.

OUTLETS:CONDITION:

Needs Attention:

There are outlets that did not have grounding when tested.

There are missing covers at some of the electrical outlets.

OUTLET COMMENTS:It is recommended that Ground Fault Circuit Interrupter (GFCI) safetyoutlets be installed at the exterior, restrooms, & any kitchen outlets. Not all the outlets may have these at the proper locations. This isadvised for health and safety.



SWITCHES:CONDITION:

A representative sampling of switches were checked and those that weretested were found to be in working order.

FIXTURES:CONDITION:

Needs Attention:

There is a fixture withexposed wiring thatwas noted

FIRE SUPPRESSION & SAFETY SYSTEMS:FIRE SAFETY SYSTEMS:

This type of building site is required to have certain fire safety items,such as exit signs and/or fire extinguishers. It is advised to check withthe local Fire Marshal to determine if this building meets current firesafety regulations.

EXTERIOR ELECTRICAL:CONDITION:

Inspection of the exterior lighting outside the building and on the grounds istypically not part of the inspection.

ELECTRICAL COMMENTS AND RECOMMENDATIONS:ELECTRICAL SYSTEMRECOMMENDATION:

The system is in need of some Repairs/Maintenance at this time as listedabove. Full review by a qualified electrical contractor is advised so thatall needed repairs and maintenance are performed in a professionalmanner for health and safety however these repairs and maintenance donot appear to be significant.



Low voltage lighting and wiring is excluded from a standard propertyinspection including outdoor lights, phone lines, security systems and speakersystems. Regular voltage exterior lighting is also excluded.

The wiring is enclosed within the walls and ceilings and other parts of thestructure. It is not visible and its condition cannot be fully determined. Norepresentation is made as to its status.



HEATING AND COOLING SYSTEMWhile some observations may be code related, this inspection does not determine if the system complies with building codes. Weather permitting a representative sampling of the systems are operated with normal controls. In order not to damage thesystem, the air conditioners are not activated if the outdoor temperature is below 65 degrees. Gas furnaces are not checked forcarbon monoxide leakage or fire risks. There are carbon monoxide and fire detection devices which can be purchased andinstalled, which we recommend. Air ducts and registers are randomly checked for air flow. Heat exchangers are specificallyexcluded from the inspection, due to being visually obstructed by the design of the system and a complete inspection requiresspecial tools and disassembly, which is beyond the scope of the inspection. The following are additional items that are beyondthe scope of the inspection: balance of the air flow, capacity or velocity of the air flow, humidifiers, air duct cleanliness, theability of the system to heat or cool evenly, the presence of toxic or hazardous material or asbestos, system refrigerant levels,cooling or heating capacity to determine if its sufficient for the building, electronic air filters, solar equipment andprogrammable thermostats. Units that are shut down with not be tested or operated. Determining the remaining life of thesystem is based on industry standards. Window A/C's are not built in units and therefore not usually inspected.

HVAC OVERVIEW:Due to age replacement should be expected in the near future perindustry standards due to age.

SYSTEMLOCATION:

Over the office ceiling.

LOCATION CONDITION:The furnace was blocked with personal items and was not accessible,therefore it was not inspected, evaluated or tested.

SYSTEM TYPE:The heating system is a gas-fired forced air unit.



SYSTEM AGE:It is unknown how old the unit is, but it appears older.

THERMOSTAT:Serviceable.

COMBUSTION AIR:Serviceable.

VENTING:Serviceable.

RETURN AIR AND FILTERS:Needs Attention:

The air filters were missing or not viewed at the time of the inspection.

DUCTING:Serviceable where viewed.

ELECTRICAL DISCONNECT:Serviceable.

HVAC SYSTEM CONDITION:Needs Attention:

The heating system is very old and aged. While the system may still befunctional and working, it is well past its expected life span.



SYSTEMLOCATION:

In the office.

SYSTEM TYPE:Gas wall furnace

VENTING:Due to the nature of the unit and how it is installed the venting systemcan't be seen or commented on.

HVAC SYSTEM CONDITION:Needs Attention:

The heater was not in operation at the time of the inspection. The heaterwas blocked and not accessible. Cleaning and servicing for health andsafety is advised.

CONSOLIDATEDFURNACES:

HEATING AND COOLING COMMENTS:RECOMMENDATIONS:

Due to the overall condition, replacement should be anticipated at thistime or in the near future.

GENERAL COMMENTS:It is advised to keep all units properly serviced and maintained. Properservice and timely repairs can significantly increase the normal expected,industry standard service life.

Per the California Energy Commission, "Beginning October 1, 2005, Title 24of the Building Energy Efficiency Standards requires that ducts be tested forleaks when a central air conditioner or furnace is installed or replaced. Ducts



that leak 15% or more must be repaired"

A property inspection will not be able to determine if this air loss exceeds themaximum allowed of 15%. This test can only be done by a qualifiedtechnician and is beyond he scope of this inspection. It is advised to consultwith a qualified specialist on this matter as the examination may determinethat repairs or replacement of the ducting system is required.



ROOF SYSTEMThe report is not intended to be conclusive regarding the life span of the roofing system, if it is leak free or how long it willremain leak free in the future. The inspection and report are based on visible and apparent condition at the time of theinspection. The inspection does not address manufacturing defects, fastener appropriateness, if the roof was installed per code,if flashing is present in all locations or the numbers of layers present. Unless a rain has fallen just prior to the inspection, it isnot possible to determine if active leakage is occurring. Not all attic areas are readily accessible for inspection. Tile roofs andsteeply pitched roofs are not safe to walk on and access is limited on them. Conclusions made by the inspector do not constitutea warranty, guaranty, or policy of insurance. All roofs require periodic maintenance to achieve typical life spans and should beinspected annually. Expect to make minor repairs to any roof.

While it is possible some prior repairs and leaks may be reported, it is not the intention of the inspection to identify and reportall prior repairs and conditions. It is recommended to refer to the seller and sellers disclosure about the presence of any roofleaks or prior repairs. Also it should be noted that all gutters have rust and have a limited life span before they need to bereplaced.

ROOF OVERVIEW:Overall the roof is generally serviceable, however there are some areas inneed of repairs or maintenance at this time.

ACCESS TO ROOF:ACCESS TO ROOF:

The access to the roof is only by a personal ladder. There is no built in roofaccess.

HOW ROOF ACCESSED:The roofing was walked on to inspect it.

ROOF:



ROOF STYLE:

The roofing system has a Low Slope to it. This means that the slope of theroof appears to be no more than 2" of rise for every 12" of horizontalmeasurement.

TYPE OF ROOFINGMATERIAL:

The roofing material on the low sloped roof is multi-layered roofingmaterials.

ROOF COVERING STATUS:

Needs Attention:

The roofing system is showing signs of general wear and age.



Needs Attention:

There are penetrations through the roof material. Repairs by aqualified roofing specialist is advised to ensure the roof system is areliable moisture barrier.

Needs Attention:

There are areas of the roof that have been patched. This is normallydone to correct past moisture intrusion issues. Full disclosure regardingthese is advised at this time from the building's past history.

EXPOSED FLASHINGS:



CONDITION:Needs Attention:

A rain cap is missingfrom an old heatervent. These shouldhave their capsinstalled to preventdeterioration to theheating units fromrain entering throughthe vent lines.

ROOF DRAINAGE:ROOF DRAINS:

Serviceable.

DOWNSPOUT CONDITION:Needs Attention:

There are damageddownspouts.



ROOF FRAMING:TYPE OF ROOF FRAMING:

The roof is supportedby structural beams,posts and crosssupports.

ROOF FRAMINGCONDITION:

Needs Attention:

There are areas ofstains on the framinglumber as fromformer roof leaks.

ROOF VENTILATION:Serviceable.

ROOF COMMENTS AND RECOMMENDATIONS:RECOMMENDATIONS:

The roofing is in need of maintenance/repairs at this time. It is advisedto have a roofer examine the entire roofing and drainage system andmake any needed repairs or do any maintenance functions needed tohelp ensure a leak free condition at this time.



COMMENTS:It is advised to obtain the roofing Maintenance History for the site. This is tohelp determine the quality of maintenance along with this can be a very strongindicator as to how well the site performs during rains. The quality ofmaintenance can allow a roofing system to perform well past industrystandards regarding typical useful life. Industry wisdom is to have all roofingsystems inspected every year and for any maintenance or repairs to be doneby a qualified professional to help maintain a leak free condition.

California usually has seasonal rains which typically occur near the endand the beginning of each calendar year. Occasionally, the rainfall isexceptionally high. In recent years Southern California has been goingthrough a drought. During drought periods many conditions visiblefollowing rains do not appear. The duty of a building inspector is todisclose visible conditions present at the time of the inspection. If acondition is not visible, it cannot be reported. All roofing systemsrequire regular routine maintenance. It is advised to ensure that theroofing system receives regular routine maintenance.



STRUCTURAL SUPPORT SYSTEMStructural comments are of the conditions observed at the time of the inspection and are the opinion of the inspector and notfact. If further information or facts are needed, they can be obtained through a structural engineer or foundation expert. Theinspection does not determine the potential of the structure to experience future problems, geological conditions or the potentialof the underlying soils to experience movement or water flow or whether the soil is stable. If any form of prior structuralmovement is reported you should expect future movements and possible repairs.

The inspection does not calculate crawl space ventilation capacities, deck and balcony capacity, retaining wall conditions,construction material type, quality or capacity. It does not address the existence of prior repairs, the potential of future repairs,failure analysis, documentation of all possible movement or cracks in floor slabs covered by floor furnishings. It is typical forconcrete floor slabs to have some hairline cracks as a result of the normal drying process of the concrete plus the stressoccurring by settlement and seismic activity. Crawl spaces are observed in a cursory fashion and wood probing is not done andwood damage, dryrot and termites are not part of this inspection but part of the structural pest control operators report.

STRUCTURAL OVERVIEW:Due to age a seismic review of the building's structure is recommendedto determine feasible, cost-effective upgrades to improve the building'sresistance to earthquake movement according to improvements andupgrades to earthquake safety standards since the building'sconstruction. This is advised as a precautionary measure and not due toany significant deficiencies observed.

STRUCTURAL FOUNDATION SYSTEM:DESCRIPTION:

The building is supported by a slab foundation system.

SLAB FOUNDATION:SLAB ON GRADE:

This building is on a monolithic slab of concrete.

There were no observable signs of significant settlement or deflection in theslab. It appears to be performing its function of supporting the structure. Thecracks seen are typical. If a more detailed evaluation is desired it is advised toconsult with a structural engineer at this time.



By the nature of slab construction the structure would typically be anchoredto this concrete slab.

Needs Attention:

There are areas where the concrete slab has cracked. Repairs to theslab are recommended. Further evaluation by a structural engineer orfoundation specialist is advised to make any needed recommendations tocorrect any continued cracking.



EXTERIORThe exterior is viewed in a cursory fashion. Areas of the exterior that are hidden from view by vegetation or stored itemscannot be judged and are not a part of this inspection. Minor cracks are typical in many exterior wall coverings and most donot represent a structural problem. Peeling and cracking exterior paint on windows, doors and trim allow water to enter andcause damage and deterioration. It is important to keep these exterior surfaces properly painted and/or sealed. Many timeschimneys have hidden undisclosed cracks that cannot be seen. A chimney specialist inspector should be employed to determinethe true condition of the structure of any chimney as it is beyond the scope of this inspection to determine damage to chimneys.All exterior grades should allow for surface and roof water to flow away from the foundation and exterior walls.

EXTERIOR OVERVIEW:The Exterior of the building is in need of Some Repairs.

EXTERIOR COVERING OF THE BUILDING:MATERIAL:

The exterior building covering is masonry block material.

CONDITION:

Needs Attention:

There are areas of peeling or bubbling paint to the exterior of thebuilding.



EXTERIOR WINDOW SURFACES:MATERIAL:

The exterior windowsurfaces are metal.

CONDITION:Serviceable overall.

EXTERIOR DOOR SURFACES:MATERIAL:

The exterior doorsurfaces are metal.



CONDITION:

Needs Attention:

There are areas of wear or damage to the exterior of the doors.

EXTERIOR COMMENTS AND RECOMMENDATIONS:EXTERIORRECOMMENDATIONS:

There are areas of the exteriors of the building in need of maintenance andrepairs at this time.

COMMENTS:This inspection is not a structural pest control inspection, otherwise known asa termite inspection. The "termite" inspection also covers such things as dryrot and wood damage and deterioration as well as wood destroyingorganisms. Any and all of these items need to be examined and any repairscompleted by the "termite" company in a timely manner and they usually havea guarantee on their work. Please refer to the structural pest control reportfor any information concerning them

This is not a mold or fungus inspection, it is therefore advised to have a moldspecialist examine the property and structure and do a complete inspection todetermine the presence or not of any mold that may affect the health or safetyof the occupants.



GROUNDSThis inspection is not intended to address or include any geological conditions or site stability information. For informationconcerning these conditions, a geo-technical engineer should be consulted. Proper grading is important to keep water awayfrom the foundation. If it is not raining during the inspection the course of water flowing toward the structure or off the sitecannot be observed. The soil should slope away from the structure to prevent problems caused by excess water not flowingaway properly. Gutter discharge should be directed away from the foundation for the same reason. Out buildings, such asstorage sheds, on the property are excluded from the inspection. Fire pits, a B.B.Q. and other similar items are not inspectednor is the gas to them tested or lit.

This inspection is visual in nature and does not attempt to determine drainage performance of the site or the condition of anyunderground piping, including municipal water and sewer service piping or septic systems. Landscape lighting, sprinklers andtheir timers are not part of a general property inspection. The inspection report does not include the identification of theproperty boundaries.

GROUNDS OVERVIEW:Overall the grounds exhibit excessive wear, damage or deterioration tothe point major repairs are advised.

MAIN ENTRY:CONDITION:

Serviceable.

PARKING AREA:DRIVEWAY:

Needs Attention:

There are areas of wear and deterioration. It is advised to have somerepairs made to areas exhibiting excessive wear, then reseal and restripethe entire parking lot.



PROPERTY WALLS, FENCES & GATES:CONDITION:

Serviceable.

LANDSCAPING:CONDITION:

This grounds of this property have no landscaping at this time.

DRAINAGE:SITE:

Relatively flat site.

DRAINAGE CONDITION:There were no significant observable defects in the grading and drainagewithin six feet of the building.

The site is a relatively flat site, it is expected that there will be some areaswhere water will pool during rainy periods such as the rear of the building.

COMMENTS:Determining the adequacy of the grounds to shed water and prevent moistureintrusion into the structure is beyond the scope of the inspection. It isadvised to obtain the history of any drainage problems and monitor the siteregarding water run-off and drainage in general.

This inspection does not address drainage issues further than 6 feet from thebuilding. Additionally drainage systems that are not visible such asunderground systems are not evaluated or inspected. If more information isrequired it is advised to consult with a qualified general contractor whospecializes in drainage systems.

GROUNDS COMMENTS:GROUNDSRECOMMENDATIONS:

Overall the maintenance of the site and grounds appears to be serviceable.



GENERAL COMMENTS:Low-voltage systems such as phone, cable, internet or grounds lightingon the site are not part of the real estate inspection.

This report does not include identification of property boundaries. Ifthis information is desired, it is advised to consult with a qualifiedprofessional.

California usually has seasonal rains which typically occur near the endand the beginning of each calendar year. Occasionally, the rainfall isexceptionally high. In recent years Southern California has been goingthrough a drought. During drought periods many conditions visiblefollowing rains do not appear. The duty of a building inspector is todisclose visible conditions present at the time of the inspection. If acondition is not visible, it cannot be reported.



INTERIORSAs a general rule, cosmetic deficiencies are considered normal wear and tear and are not reported. The condition of wallsbehind wall coverings, paneling and furnishings cannot be judged. Minor cracks are found on interior surfaces in all buildingsand are typically cosmetic in nature. The condition of floors underneath carpet, furniture and other coverings cannot bedetermined and is specifically excluded from the inspection and report. Only the general condition of visible portions of floorsis included in this inspection.

INTERIOR AREAS:OVERALL:

While the interiors of the building have not received much recent maintenanceand/or upgrades, they are in an overall serviceable condition with typical wearfor such commercial structures.

INTERIOR AREAS:

Serviceable overall with typical wear.

OFFICE AREAS:



OFFICE AREAS:

The office areas are generally aged, but remain serviceable overall.

RESTROOMS:INTERIORS:

The interior surfaces,such as the walls,ceilings and such aregenerally aged andworn, but remainserviceable.

RESTROOM FIXTURES:Needs Attention:

There is no hot water provided to the sink, which is required forsanitary purposes.

The sink drains slowly.



The toilet is not securely mounted at the base.

RESTROOMS:INTERIORS:

The interior surfaces, such as the walls, ceiling and such were found to beserviceable.

RESTROOM FIXTURES:Needs Attention:

There is no or insufficient hot water to the sinks. This is required forhygienic reasons.

DOORS:EXTERIOR DOORS

Serviceable with some wear was noted.

INTERIOR DOORS:

Needs Attention:

There is damage to some of the doors.



WINDOWS:WINDOW CONDITION:

Serviceable.

FLOORS:FLOORING CONDITION:

Needs Attention:

The carpeting in theoffices is generallyworn.

WALLS AND CEILINGS:CEILINGS:

Needs Attention:

There are some stained areas of the ceiling.



WALLS:Needs Attention:

Some of the interiorwalls are in poorcondition.

MISCELLANEOUS PLUMBING:SINK:

Serviceable.

FIRE SAFETY SYSTEMS:FIRE SAFETY COMMENTS:

This type of building site is required to have certain fire safety items. These are items such as exit signs and fire extinguishers. It is advised tocheck with the local Fire Marshal to determine if this building meetscurrent fire safety regulations.



INTERIOR COMMENTS AND RECOMMENDATIONS:GENERAL COMMENTS:

This is a general visual inspection, there was no destructive or intrusiontesting performed. The intention of this report is to inform the client of theoverall condition of the property.

It is typical when a building is remodeled or repairs are undertaken thatadditional problems surface that were not noted on the inspection report.This is to be expected as walls, floors and ceilings are opened up during thework to reveal areas that were not accessible during the inspection. Anyremodeling work undertaken on a property should be expected to revealsome of these problems and it is recommended that additional sums be setaside for this purpose.



INSPECTION LIMITATIONSSPECIFIC EXCLUSIONS AND LIMITATIONS:OUR GOAL:

Our Goal is to enlighten you as to the condition of the property by identifyingmaterial defects that would significantly affect the property and thereforeyour decisions concerning it. We strive to add significantly to yourknowledge of the building. Thus the goal is not to identify every defectconcerning the property but focus upon the material defects andthereby put you in a much better position to make an informed decision.

GENERALIST VS.SPECIALIST

A property inspector is a generalist and the inspection is conducted alonggeneralist guidelines as listed above. The generalist job is to note materialdefects in the property he is inspecting. When he observes and finds one ormore problems in a system of the property that affects its performance hemay then refer the entire system over to a specialist in that field for a furtherdetailed investigation. The specialist is expected to conduct a more detailedexamination on that system from his specialist sphere of knowledge andtraining to determine all the problems with the system and the related costs ofrepairs. The specialist is inspecting from a depth of knowledge andexperience that the generalist does not have.

REPRESENTATIVESAMPLING:

The building has many identical components such as windows, electricaloutlets, etc. We inspect a representative sampling of these only. We do notmove any furniture or personal belongings. This means that some deficiencieswhich were there may go unnoted or there may be items which are impossibleto anticipate. We suggest that you plan for unforeseen repairs. This is partof property ownership as all buildings will have some of these repairs as wellas normally occurring maintenance.

USE OF THE REPORT:The inspection report does not constitute a warranty, insurance policy orguarantee of any kind. It is confidential and is given solely for the use andbenefit of the client and is not intended to be used for the benefit of or berelied upon by any other buyer or other third party.

PRE-INSPECTIONAGREEMENT:

Terms and conditions crucial to interpretation of the report are contained in aseparate pre-inspection agreement. Do not use this report without consultingthe pre-inspection agreement as use of this report constitutes the acceptanceof all the terms, conditions and limitations in that agreement.



MOLD, MILDEW ANDFUNGI:

Mold, mildew and fungus are specifically excluded from the inspection andthe report. The inspector is not qualified to note the presence or absence ofmold. Mold can be a serious problem and should not be overlooked. Thestructure should be inspected for mold during the inspection contingencyperiod by a specialist in this field to ensure that this hazard does not exist.

WOOD DESTROYINGORGANISMS:

Termites, dry rot, wood rot and wood destroying organisms are covered by astructural pest control operator's report. These are not part of the inspectionand the inspector will not be inspecting for them. The Business andProfessions Code prohibits anyone but licensed structural pest controloperators from commenting on this subject.

BUILDING CODES:This is not a building code or code compliance inspection. That is a differenttype of inspection performed by the local municipality, usually duringconstruction. It is advised to obtain all available documentation such asbuilding permits and certificates of occupancy during the inspectioncontingency period.

HAZARDOUS SUBSTANCES:Identifying hazardous substances is not part of this inspection. Items such asformaldehyde, lead based paint, asbestos, toxic or flammable chemicals andenvironmental hazards are not tested for and are not within the scope of theinspection.

INSPECTION LIMITATIONS:This is a limited time visual inspection. It excludes any items we cannotdirectly observe such as chimney interiors, furnace heat exchangers,underground piping, etc. These are specialty inspections and thoseinspections can be arranged using specialized equipment.

Additionally we do not inspect to see if components are installed properly. We do not have the specialized training, instruction sheets or manuals todetermine if they meet manufacturer's or building code requirements forinstallation, which can be quite varied. This is part of the specialist'sinspection and any questions concerning installation would best be answeredby the specialist

Documents

Jack Schoen - Commercial Real Estate Inspectors, LLCschoen -1131 industrial ave, oxnard, ca 93030