Read more about the ASTM standards recent update written by Dan Spinogatti, Senior Vice President of Real Estate of Sales & Marketing.
- Level 0 is often referred to as a screening level or desktop review and is based on general information about the building type, characteristics and site information. It is considered to have a high uncertainty level. EBI provides this level of investigation based on collection of building data in the field by an experienced field assessor and report preparation, drawing review (when available) and PML calculation by a licensed professional or structural engineer.
- Level 1 is generally considered an engineering cursory review, including a review of construction documents and site visit by a licensed professional or structural engineer. It is considered to have a moderate uncertainty level. EBI provides this level of investigation based on collection of building data in the field by a licensed professional or structural engineer and report preparation, drawing review (when available) and PML calculation by a licensed professional or structural engineer.
The Level 0 as defined in the new ASTM 2016 standard is akin to the industry standard PMLs we’ve been doing for you up to this point (and same that has been common in the lender industry up to this point). My expectation is that most lenders may now or soon start requiring a “Level 1” PML, instead of the “Level 0” PML. I’ve begun to see this with a few lenders we work with. And more to come.
It’s important to take this into account for any deals that you have in play either currently, or in the near future. Best thing to do is to clarify with your lender what their specific requirement is and is expected to be in the near future, so you don’t get caught short when it comes down to the “finish line”.
The Level 1 PML means that we need to send additional qualified staff (a licensed seismic structural engineer) to the site, in addition to the PCR assessor that we are already sending (meaning the costs on these PMLs is going to be higher… Anywhere from $600-1500 additional per site, depending on location, with the approx. $1000-1200 additional per report range probably being the median).
Dan Spinogatti, Senior Vice President of Real Estate Sales & Marketing
