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Due Diligence Documentation "Exhibit A-3"
Architectural Firm Profile
The following notes
are provided pertaining to this exhibit:
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What: a
report that provides background information on the project's lead architect
and the personnel assigned to the project by the Architect.
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When: this is a
ground floor level services provider. The project architect is
responsible for taking the financial, market and business information of the
Owner1 and transform this information into
a workable building design that accomplishes all of the goals and
requirements the Owner, falls within the financial constraints of the
proposed project and the requirements the market places on the building
program.
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Why: the
Architectural Firm Profile is important because it provides information as
to the actual experience of the architectural firm and the architects and
support personnel who will be doing the actual design work.
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Where: the
participation of the project architect commences once the market feasibility
analysis report is received and the market shows enough entrenched demand
for new construction that construction of the Owner's proposed project is in
fact warranted. This means the project architect must be retained by
the Design/Builder early in the pre-construction phase of the proposed
project's development cycle.
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How: all new
construction syndications require the use of the design/build project
construction management and execution program. The Design/Builder
(note Exhibit C-1) is responsible for selecting and paying the project
architect because the Design/Builder is responsible to the Owner for
construction and the construction design documents.
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What's important:
the importance of this due diligence document is in the development risk
analysis each investor must make before they can be reasonably convinced the
anticipated economic gains sufficiently offset the risks and the project is
(therefore) worth serious investment consideration. Common sense tells
us the more experience the architectural firm has with projects essentially
similar to the proposed project, the more likely it will be that few (if
any) errors will occur that cannot be cost-efficiently dealt with to the
benefit of the Owner.
For more information, please contact us at 832.659.5009 or via email at info@realestateplays.com.
1 - the Owner of the project is, in most cases, the
Developer. The Owner is also referred to as the "Sponsor" of the
transaction and is referred to as the "Borrower" when it comes to
acquiring the project's construction and permanent mortgage loan
financing. The Owner may also be referred to as the "Founder" of
the project. All of these terms and conditions can be used
interchangeably.
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