Common Surveys Performed During Diligence

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Common Surveys Performed During Diligence

Tatenda Mpofu
New York City, NY · Member since 2017 · 21 posts · 10 votes

I am working through a PSA for the purchase of a self storage property and I would like to know what surveys you would say are

a) critical

b) nice to have

c) unnecessary

when acquiring a self storage facility especially given standard exceptions in title policies.

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Your mentioning Surveys is throwing me.  What do you mean?  The land survey, but then you dissect into three categories.

    Are you meaning just any other Due Diligence items/concerns?

    0Reply
  • Tatenda Mpofu
    OP
    New York City, NY · Member since 2017 · 21 posts · 10 votes
    2y

    A quick search suggested that the following surveys could be completed in the diligence phase of self storage facility acquisition

    1. Boundary Survey: 
    2. ALTA/NSPS Land Title Survey: 
    3. Topographic Survey: 
    4. Site Planning Survey: 
    5. Floodplain Survey: 
    6. As-Built Survey: 

    I'm curious which of these are necessary versus nice to have

    1Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Is there a reason you are asking this question?  

    Describe your property and location.  In the city?  In the country?  How many acres?  How many and what type of units?  How old?  

    Or is this just a checklist question?  

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    If this is a preexisting location.  Only 1 above is for sure needed.

    2 above is or is not needed depending on your title search and if it finds any easements.  Then it depends on the type of easements whether you need an Alta site.

    3/4/5/6 are not needed.  Floodplain you can check online.  

    Is there a reason for your question?  

    0Reply
  • Tatenda Mpofu
    OP
    New York City, NY · Member since 2017 · 21 posts · 10 votes
    2y

    Thank you,

    I'm new to this type of investing (more familiar with buying businesses) so I'm cobbling together information from brokers, chatGPT and everything in between to figure out what I need to (at reasonable cost while controlling risk profile) complete an acquisition.

    Facility is in rural Kansas, and is composed of a portfolio of 4 buildings on 3 parcels. 195 unit count - ~10 years old on average, some are newer (2 years) others older (15+ years)



    I'm trying to learn what I should watch out for in the process and what studies will be needed to get a good level of comfort before acquiring the facilities
    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    2y

    Use the lookup function. My name and any post with Self Storage in the name.  

    1.  The key issue on all Self Storage is market analysis.  Read my post “Will they come?”.  Do that market analysis.  Assess zoning maps and land available for competitors or expansion in existing locations.

    2.  Physical assets.  How much deferred maintenance?

    3.  Rent roll.  

    0Reply
  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    2y
    Quote from @Tatenda Mpofu:

    A quick search suggested that the following surveys could be completed in the diligence phase of self storage facility acquisition

    1. Boundary Survey: 
    2. ALTA/NSPS Land Title Survey: 
    3. Topographic Survey: 
    4. Site Planning Survey: 
    5. Floodplain Survey: 
    6. As-Built Survey: 

    I'm curious which of these are necessary versus nice to have


     ALTA/NSPS is critical, topo is useful for understanding drainage but some details can indicate that on an ALTA if you specify on Table A. topo needed if you're going to build anything on the excess land.

    as builts are quite useful for improved property. You will get dimensions, type, major features, etc. cheap and fast I always get them.

    The rest are either contained in a Table A or not needed IMO. Did you check FEMA online for flood plain? If yes, you'll need the elevation certificate.

    0Reply
  • Tatenda Mpofu
    OP
    New York City, NY · Member since 2017 · 21 posts · 10 votes
    2y

    Thank you @Henry Clark, you post a meaningful amount of excellent content. I will definitely go through it. Market analysis is where I spend the most time. 

    Good to be reminded about deferred maintenance. 

    Rent rolls I spend a lot of time reviewing as well

    @Ronald Rohde, thank you - this will be a purchase of an existing property that was previously barren land. What is Table A?

    I am contemplating a portfolio buy with 3 facilities. One of the 3 has a 1 in 100 year flood risk (survey was shared by the seller)

    0Reply
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