Hybrid Report

Superior Care Home

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100 Marshall Ct, Paducah, KY 42001

Site Visit Conducted by Mitch Abrams

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PC &D

On August 11th, 2020

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

1) Preface 3) HVAC 6) Plumbing

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Table of Contents

7) Electrical-Lighting- Generator 8) Kitchen

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10) Parking Lot

11) Roof & Gutter 12) Exterior

12) Structural

14) Cosmetics 13) Life Safety

17) Laundry

18) Expenditure Summary

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

To Whom It May Concern: is

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a skilled nursing facility located at The property is approximately 5-6 years old. The main structure appears to be built of wood load bearing exterior walls with wood truss systems. The facility is approx. 74,000 sq ft under air with the detached structure being 2,800 sq ft.

The majority of the building has a truss system in place with a 4:12 pitch and asphalt shingles. There are sections of roof on each hall that have flat roofs where the mechanical systems for each wing are located.

The shingled portion of the roof uses a 3-dimensional architectural shingle on plywood decking. The flat portions of the roof use a rubber membrane roofing system manufactured by Firestone.

The site conditions are fairly flat and appear to be well maintained with adequate drainage. There has been a garage added that is built of wood load bearing walls and trusses. This building is used primarily for

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

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storage. The building has an HVAC system but is not constructed by fire rated codes nor is it sprinkled.

Due to the fact it sits more than 30’ away from the nursing facility it meets codes.

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The overall condition of the property was good.

There were a few items of concern noted in the report that should be taken into consideration as potential capital concerns that currently don’t meet codes depending on the local Authority Having Jurisdiction’s (AHJ) interpretation of referenced code.

This assessment was prepared as part of Client’s due diligence in evaluating a possible transaction concerning the property subject of this assessment. However, we make no representation as to the advisability or inadvisability the purchase of, investment in, or financing of the subject properties.

This assessment is subject to additional exceptions and limiting conditions set out in the Consulting Services Agreement with the Client.

Mitch Abrams Founder & CEO Providence Consulting & Design www.pcd-corp.com Cell: 561-301-9354

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

HVAC Total Spend: $500

Items of Concern • $500- A few conduits to attic • Not fire sealed in IT room

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The HVAC equipment is in great condition. The choice of equipment spared no expense and the equipment used in all applications are well known commercial brands. The common areas and halls are conditioned by Carrier Roof Top Units and utilize natural gas for heat (RTU/Gas Pack). The facility appears to be designed in accordance with ASHRAE standards and has outdoor fresh air make-up units. These units are all Aaon units. The design also uses mini-split units in certain portions of the building where PTAC units aren’t feasible but also pose conditions where these rooms need to be self-controlled or have their own thermostat. The units are Diaken units. The resident rooms utilize PTAC units that are heat pumps.

General Notes

Carrier RTU Gas Packs is Central Central Exhaust controls all wings Aaon Make up air Diaken fan coils HVAC Contractor does all central cleaning and maintenance and filters Maintenance only changes PTAC filters A couple of compressors have gone bad HVAC not covered by warranty Contractor for HVAC used to be CMI now Jet Specialties Jet does all HVAC and ice machines A few conduits to attic • Not fire sealed in IT room IT Room has AC mini split systems • Drain pans missing • Parts are ordered

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• • • • •

There were some minor issues with the HVAC system at the time of the visit.

There have also been some significant repairs already performed on some of the units.

• • • • • • •

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

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HVAC Total Spend: $500

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

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HVAC Total Spend: $500

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PC &D

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Plumbing Total Spend: $0

General Notes

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• 2 Boilers • 1 Domestic and holding tank • Tempered water pipe system • Leonard Mixing Valves The plumbing system in this building is • 2nd boiler is a straight feed to laundry and designed utilizing copper supply lines kitchen does not go through mixing valves and PVC wastewater. The domestic

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water is heated through a boiler and then stored in a large 250-gallon storage tank.

This tank then is circulated through a 3-pipe system where the water is tempered by Leonard Mixing Valves and then delivered to the resident rooms. The second boiler heats the water for dietary and laundry and is delivered directly to those departments without the use of a tempering system as this water doesn’t have to be tempered. The plumbing system is also designed to meet all codes and no expense has been spared on the design or equipment chosen.

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001 General Notes

Electrical-Lighting Total Spend: $0

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The electrical and lighting design is adequate per current codes. The only potential concern with this over the coming years is that codes seem to be trending toward having a “place of refuge” for residents to go in extended power outages that will be temperature controlled. Per the maintenance director the heat is wired into the generator but not the HVAC. From a load perspective this makes sense as heat BTU’s are provided by gas and cooling BTU’s by electric. I wasn’t able to determine how this was accomplished due to the nature of the visit but in theory this makes sense in order to keep the generator load down to prevent a much larger KW unit.

• Generator LS only and heat mode • Only central units • No AC on Generator • Generator is only 1 panel @ rec area • 1 is good for generator • T5 lighting throughout • Generator has only 1 annunciator panel reception • This meets code

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Kitchen Total Spend: $8,000

Items of Concern

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• $7,500- Three remote kitchens need suppresion systems • $2500 potential spend at each location.

The commercial kitchen is designed to • $500 OSHA approved eye wash stations

General Notes

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3 small ovens in remote kitchen 3 small microwaves in remote kitchen 3 small bread warmers in remote kitchen No suppression systems Cook line Shunted All kitchen equipment is new

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meet or exceed all codes. There were only minor issues noted in the kitchen.

The main issue noted in the commercial kitchen was the lack of approved single action eye wash stations. The cook line was well equipped and at the time of the visit all equipment was functional. The dish room was also well equipped and functional. The stock rooms and food storage were all in good repair and no issues noted at the time of the visit.

There were 3 remote kitchens. These kitchens had a steam table serving line as well as a microwave, electric oven and bun warmer. This oven was not sprinkled or tied into any form of suppression. This could be an issue if the local AHJ were to deem this as a food prep area. If this were to take place a suppression system would need to be installed at all 3 locations. $2500 potential spend at each location. $500 OSHA approved eye wash stations Total potential spend $8,000.

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

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Kitchen Total Spend: $8,000

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Parking Lot Total Spend: $15,000

Items of Concern

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• $15,000- Parking Lot needs seal and stripe • Pitting in Parking Lot • Seal and Stripe needed • It has never been done since the The parking lot was designed with building opened adequate parking spaces. The parking lot

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has not received the needed preventative maintenance or upkeep to this point. The lot is currently in need of a seal and stripe along with several areas that appear to not have the needed soil compaction as several parking spots have significant pot holes forming where cars park.

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Roof & Gutter Total Spend: $75,000

Items of Concern • $75,000 - Potential roof concerns 5-7 years from time of purchase

General Notes

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The majority of the roof is a 3-dimensional asphalt shingle. There were no issues noted during the tour with the shingled portion of the roof.

The flat roof used a fairly cheap 10-year product that has already experienced some issues per the maintenance director. Per his comments one area has already required replacement. This roof covering is one of the only areas on this building’s systems that doesn’t utilize a higher end product and will need attention within the next 5-7 years due to the product selections.

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• Cheap 10 flat roof • Firestone • 1 section already replaced • Arch Shingles 25-30 Years • No Drainage issues

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PC &D

Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Exterior Total Spend: $0

General Notes

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The exterior of the building consists of brick on the lower 30” of the walls and vinyl siding on the upper portion of the exteriors walls with stone accents. The exterior of the facility is in good repair with no issues.

• Canopy Not Sprinkled • Exterior Needs Pressure washing • Vinyl Siding Upper brick lower with stone accents • Storage Building only 2 years old • Storage Building not sprinkled and doesn’t need to be • It has proper clearance from main structure • Emergency Storage Trailers • One sidewalk with significant crack • All but 3 windows are good • 3 total • 2 rocks • 1 failure

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PC &D

Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Life Safety Total Spend: $115,000

Overview

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The facility was constructed and approved per the local AHJ. However, there are several issues that may be interpreted differently if a new AHJ were to be involved. These items aren’t necessarily items needing to be addressed immediately, but rather, items needing to be noted in case the future AHJ were to interpret the code differently. We have witnessed codes officials across the nation that interpret the codes differently than what is currently being interpreted at this location.

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One major example of this code interpretation is that of doors and their fire ratings. During the tour approx. 15-20 resident doors were inspected and 0 out of the 20 were fire rated. We also inspected numerous other doors such as soiled linen rooms or other rooms we would typically expect to find with a fire rated label, yet none of these doors had a fire rating labels. Per our interpretation of codes these doors should be rated. We even contacted an architect to confirm our interpretation of this code and he (Jerry Herndon Architect – 40 years experience) confirmed our interpretation of this code.

This is a significant codes issues which may result in a survey tag that could lead to having to replace well over 100 doors within this facility. This issue is by far the biggest concern within this facility. The price for the door could be in excess of $500 for the materials only. When considering the removal and installation of the doors it is approximately a $750/per door issue.

Due to the nature of the visit we were not able to do a physical count of every door that may violate this code. We have provided a guesstimate of this issue, should it be brought up by a new AHJ. We feel there could be approximately 100-125 doors affected by this issue.

The entry porte-cochere was not sprinkled. Per an interview with the owner this was a topic at the time of the certificate of occupancy inspection. But it was deemed to not be needed. This is extremely rare, as it is within approximately 2 feet of the existing structure and is constructed of combustible materials. At some point, with a change of inspectors, they will require the porte-cochere to be fully sprinkled as per codes.

The cost to sprinkle this structure will be approximately $15,000.

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001 Items of Concern

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• $100,000-Fire Doors • 15-20 resident doors were inspected and 0 out of the 20 were fire rated.

• The price for the door could be in excess of $500 for the materials only. When considering the removal and installation of the doors it is approximately a $750/ per door issue.

• We feel there could be approximately 100-125 doors affected by this issue.

• $15,000-Porte-cochere • The entry porte-cochere was not sprinkled. The cost to sprinkle this structure will be approximately $15,000.

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Life Safety Total Spend: $115,000

General Notes

• Air compressor recently replaced • 5 separate dry zones for sprinkler • Court yards locked not tied to manual locks only • It does not meet code • There are cameras on all doors • Pager nurse call system with no voiceover • 3 small ovens in remote kitchen • 3 small microwaves in remote kitchen • 3 small bread warmers in remote kitchen • Soiled utility rooms are not locked • Resident Room doors are not fire rated

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001 General Notes (cont.)

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• Fire Doors are labeled in hall • 45 Minutes • Laundry Dryer area exposed wood • Fire Hazard • Therapy door labeled • 100-200 therapy has a dehumidifier • Floors get wet and slick • Ceiling tiles noted wet by therapy • Could be high humidity and sweating • Carpet to 200 hall • Near soiled linen room either wet or stained • Even electrical rooms are not fire rated doors • O2 storage does not have concrete floor • It is vented tank not secure • Shower room in memory care is good • Door is propped open • Some low point drains in closet and one other interior room • No outdoor drain • No fire room annunciators • Only a main panel at entry • Housekeeping door rated at 45 minutes • Clean Utility next to it has no rating • Internal Sprinkler inspection in March of 2020 no issues • No work order system • Only word of mouth to report items broken

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Life Safety Total Spend: $115,000

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

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Life Safety Total Spend: $115,000

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Laundry Total Spend: $16,000

Items of Concern

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• $12,000- Washer replacement cost in years 1-5 • $3,000- Dryer replacement cost in years 5-10 The Laundry equipment was one of the few items in this building where • $1,000- Covering of exposed wood a “short-cut” was taken. None of the laundry equipment was purchased new at the time of the construction. All of the equipment was brought over from the previous location. While all of the equipment is currently functional some of the equipment is in poor condition.

General Notes

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• 2 Washers • 1 Washer is over twenty years old • 1 is over 10 years old • 2 Dryers • 1 Dryer is over 10 years old The area housing the two commerical dryers had a portion of wall built in • 1 was purchased in 2018 with exposed wood. This section of wall should be covered with fire rated 5/8ths sheetrock to prevent any potential fires as no exposed wood in an occupied portion of the building is permissable.

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Superior Care Home

100 Marshall Ct, Paducah, KY 42001

Expenditure Summary Year 1 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

15,000 12,000 27,000

Year 2-3 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

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HVAC Plumbing Electrical-Lighting-Generator Kitchen ($8,000) Suppression Systems OSHA Eyewash Parking Lot Roof & Gutter Exterior Life Safety ($115,000) Fire Doors Sprinkle Portacache Shower Room Laundry ($16,000) Washer Dryer Wood Covering Total

Potentially Immediate $ 500 $ $ $ $ 7,500 $ 500 $ $ $ $ $ 100,000 $ 15,000 $ $ $ $ $ 1,000 $ 124,500

Year 4-5 -

$ $ $ $ $ $ $ $ $ $ $ $ $

75,000 -

$ $ $ $

3,000 78,000

Total $ 500 $ $ $ $ 7,500 $ 500 $ 15,000 $ 75,000 $ $ $ 100,000 $ 15,000 $ $ $ 12,000 $ 3,000 $ 1,000 $ 229,500

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Area

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