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South Platte Crossing FCA Review
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Summary and Background Information:
Council has engaged in a Purchase and Sale Agreement with the Urban Land Conservency to purchase Unit 6 (the fifth floor) of the South Platte Crossing building located at 7190 Colorado Blvd. This is an older building that will likely require additional investment beyond the purchase price to allow for full use.
As part of the due diligence for this transaction, staff engaged McKinstry Co. to conduct a full facilities condition assessment (FCA). McKinstry has completed the on-site work and has delivered the FCA.
The FCA report states that the building does require some immediate, short-term, and long-term improvements to maintain its usability. The building is managed by Market Street Management (MSM), which conducted a reserve study to plan out future maintenance to be conducted. McKinstry used the reserve study as well as its on-site assessment to prepare the report.
Since the purchase is only for one floor, this unit is treated as a condominium and the building is governed by a Condominium Owner’s Association (COA). The COA is responsible for all maintenance and repairs for shared systems; the tenants are responsible for maintenance and repair of any system that solely services their unit. COA repairs are paid on a pro-rata basis by floor space. All figures in this communication and attached presentation are for the pro-rated amount.
The total estimated cost for maintenance and repairs of this building within the first ten years of occupancy is approximately $867,388.
The short-term items have a total estimated cost of $303,276. These are items that will have to be addressed within three years of the purchase. Three of these items require immediate attention totaling approximately $49,962: The largest of these is the replacement of the building supply fan, which provides all ventilation and AC for the building; the pro-rated cost is $38,793. MSM has already bid out the wor...
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