Coldwell Banker Commercial Ownership Services Policy ... · Vendor Letter: The vendor letter includes the new ownership and billing information. A CBC Reference Information page is

Coldwell Banker Commercial

Ownership Services Policy & Procedures

Transitions Manual

2 Ownership Services: Transitions

Transitions

Acquisitions

Development

Dispositions

Third Party Management

Appendix

1. Vendor Set Up/Information Form

2. Acquisition /Disposition Due Diligence Transition Checklist

3. Transition Checklist

4. Services Delivery Chart

© 2010 Coldwell Banker Commercial Affiliates. A Realogy Company. All Rights Reserved. Each Office is Independently Owned and Operated. Coldwell Banker

Commercial and the Coldwell Banker Commercial Logo are registered service marks licensed to Coldwell Banker Commercial Affiliates.


TRANSITIONS – OVERVIEW

As a property development and management company, Coldwell Banker Commercial (“CBC”) often is involved in transitioning a building after its acquisition, during its development or through a management change. In each situation, transition is handled differently, but the ultimate goal is the same: namely a smooth, seamless transition. Achieving this objective is paramount to CBC’s success, and requires both proactive internal and external customer communication and exceptional customer service.

In this section, we will focus on transition during: (i) property acquisition; (ii) development of a property; (iii) property disposition (sale); and (iv) third party management change. In each case, we discuss the various tasks which need to be performed during the transition process, as well as the tools and support personnel required in each circumstance.

Editorial Note: This Manual has been prepared by Coldwell Banker Real Estate LLC dba Coldwell Banker Commercial Affiliates, the franchisor of the Coldwell Banke Commercial real estate franchise system, for use by it’s independently owned and operated franchisees. For ease of reference, each franchised office and the offices that comprise the entire franchise system are referred to as "Coldwell Banker Commercial" (and defined or abbreviated as "CBC"). References to "CBC corporate" and other derivatives of that name (for example, the "Corporate Marketing/Communications Department") are references to Coldwell Banker Real Estate LLC dba Coldwell Banker Commercial Affiliates.


Acquisitions – Overview

A new property acquisition is an exciting opportunity for an owner. For CBC, a new acquisition is a great time to develop new - and continue to grow established - relationships, both within the company and with our customers.

The acquisition process can take two to six months, depending on the property type and/or condition of the land. In this section, we will focus on the steps involved in the acquisition of an operating property.

Once the property has been approved for purchase by an owner, the process of due diligence begins, usually a month or two prior to closing the deal. During the due diligence phase, several documents are provided to the owner. Other reports and documents, usually prepared by consultants or by CBC, include:

• Environmental Surveys • Property Inspection Reports • Lease/Operation Review • Settlement Statement and Closing Documents • Transition Memorandum and Binder

These documents also should be distributed to the Asset and Management Teams during the due diligence period, and, shortly after closing, formally delivered to the owner and/or to Asset Management, with the disposition of all documents recorded in the Due Diligence Transition Checklist (see Appendix #2). Also during the due diligence period, specialists will evaluate the property and advise the team on all critical issues, providing recommendations where appropriate. Our management staff and the property engineering group must work closely with these consultants to provide insight on all reports, and, where applicable, evaluate property operations and personnel.

Acquisition Stages

The following are the various acquisition stages during which CBC will be involved and the associated duties and services we will render:

Letter of Intent – Owner chooses property. Primary communication between Investment Associate and accounting and management teams (Director of Operations).

Purchase and Sale Contract and Execution – Property and accounting teams become involved. This is the due diligence period, usually lasting approximately thirty days, commencing on the execution of the purchase contract and ending on the closing date.

Purchase Date/Closing – Transition call is held involving all team members for the purpose of dissemination of documentation and transfer of utilities, contracts, etc.

Post-Closing – Operational transition process begins. “True-up” with the prior owner; usually within 120 days of closing.


Acquisition Team Members

Investment Associate • Primary point of contact managing the entire acquisition process • Transfers all due diligence materials to accounting and property management

Asset Manager • Primary contact for financial questions during due diligence period • Primarily responsible for overall financial transition and post-closing issues • Assigns responsibilities on the Issue List • Coordinates Transition Calls • May assist in property tours

Management Team: Director of Operations, Property Manager Chief or Lead Engineer

• Key person for answering questions related to operations • Primary person for property tours • Leads transition process once property is purchased • Develops relationship with seller during due diligence period

Portfolio Accounting • Sets up new property in Accounting Systems Manager; Revenue Accountant

• Calculates information for true up with seller post closing


Acquisition Transition Tasks Task Responsibility Description Prior to Purchase

Investment Associate During due diligence period, communicates management issues and targeted closing date to the operations team.

Accounting Management Team

Tenant estoppels are signed by all of the new property tenants and, in some cases, tenant interviews are conducted. Bank account is set up at this time to get ready to receive rent revenue, and property financial information (leases, budgets, general ledgers etc.,) is transferred and communicated to accounting team. Investment and Management teams decide whether to cancel the property contracts or assume the contracts with a thirty day cancellation clause (without cause).

Property Tour

Engineering Director; Management Team

Prior to purchase, a detailed property tour is imperative in assessing the overall condition of the property. The Property Operations Volume provides a sample Building Inspection to aid in the property tour.

Conference Call All Team Members

To start the transition process, the transition team sets up a conference call to transfer important information to property management and accounting and to introduce all members of the teams. This is an important part of our mission of timely and effective communication and is effective in building a strong sense of teamwork among all the members. Generally three calls are scheduled once the property is under contract:

• 3-4 months prior to substantial completion • at closing/purchase • 90 days post closing

Notes will be distributed to the call participants by the transition team and should be placed on a shared drive under “Transition”.


Customer Impact

Management Team The appropriate Senior level management sends a standard letter to each of the new customers announcing the purchase of the property, introducing the management team and providing administrative and accounting information. The presentation of this letter and its timely delivery is critical to the transition process. The letter is hand- delivered in a presentation folder. This is a perfect time to meet each of the customers and complete a Customer Visitation Report.

Vendor, Contract

and Utility Transfer

Management Team Notices are sent to all vendors and contractors introducing the new owner and/or management agent and providing any new address information. All utilities need to be placed in the new owner’s name. Avoid placing security deposits with utility companies by providing financial information to the utility company. The transition team can assist with this process. Vendor Letter: The vendor letter includes the new ownership and billing information. A CBC Reference Information page is included. A copy of the property vendor set up form should be given immediately to accounting to set up all vendors in the accounting system being used for the property. Contract Letter: The contract letter introduces the new ownership and requests new contracts from each of the contractors. In most cases, if reasonable, we assume the previous owner’s contract parameters with a 30 day cancellation clause (without cause). This gives us time to evaluate the current contractors and decide which contractors we want to continue. A Vendor Set Up/Information Form (see Appendix #1) is included with the contract letter and required in order for the vendor to receive payment. Our indemnification and liability language must be attached to each contract to protect the company.


CBC Identity Program

Management Team Our goal is to have all signage ready and installed on the first day of operation. This includes leasing signs, monument signs, other identification (such as the directory board), management office entrance signs, exterior flags, stationery and uniforms. All signs representing the previous ownership or management agent should be taken down immediately. CBC has established a strong corporate graphics and identity program and it is the company’s policy to implement those standards through the Identity Standard Manual, supported by the staff of the Corporate Marketing/Communications Department. Initial stationery and business card orders should be coordinated through the management office. All property staff should preferably be in a standard uniform on the first day of operations with a Coldwell Banker Commercial logo. The Identity Standards Manual can be downloaded from the Blueprint Library, keyword: Identity

New Personnel

Orientation and

Training

Management Team

All new personnel should receive orientation within the first few days of hire. Training for new employees should be coordinated with training of other recent new hires. Schedule a training plan including Coldwell Banker Commercial Policies and Procedures, the accounting systems, A/P Processing and Customer Service.

Property Impact

Management Team High visibility and impact areas (see below) need to be assessed and incorporated into the new budget:

• The main entrance to the building (remove ashtrays or move to rear entrance, polish marble floors, add exterior planters to add flower color)

• Landscape (tighten detail and add a flower rotation or move ahead in schedule)

• Restrooms (thoroughly clean, add tissue, lotion, lighting, deodorizers and full length mirrors where appropriate)

• Hallways (add lighting) • Elevators (replace worn carpets) • Parking lots (paint curbs, restripe parking lot and

re-caulk sidewalks). A strategic plan should be implemented to address all deferred maintenance and capital upgrades as outlined in the property pro-forma or budget.


Transition Team Visit

Asset Manager The transition team aids in the transition process as needed, focusing on customer introduction, personnel orientation and training, and coordinating the Conference Call.

Review Documents

All Team Members Final Investment Memo prepared based on the acquisition Purchase and Sale Contract, New Management Agreement, Settlement Statement and back-up documentation. Transfer of deed and accounting and operations records (leases, contracts, bills, etc.).

Transition Checklist

All Team Members Primary focus for Asset

Manager

Transition Checklist (see Appendix #3) - Use as a ‘tickler list’ to remind you of all tasks that need to be addressed during the transition. Issues List – Create an issues lsit that is kept on the shared drive for all members to have access and track issues to be completed during transition.

Document Transfer Investment Associate

Copying of leases, contracts, utility bills, real estate taxes, etc. Preparation of financial statements, rent rolls, etc.


Development – Overview

CBC is involved in the development of various types of properties, including:

- Inventory buildings owned and developed by CBC clients for future customers - Build-to-suit buildings owned and developed by CBC clients and leased to a specific customer - Properties developed (not owned) by CBC for a customer on a third-party fee basis

In the first two project types, CBC acts as the property manager, unless the build-to-suit customer desires to manage all or a majority of building operations. In third-party fee based projects, CBC typically competes for the property management business, just as it competes for development business. Third-party fee based projects often represent a unique opportunity for the property management and development teams to work together to market a seamless package of real estate services to our customers.

Development Stages

• Design and Review – A buyer has been identified. Primary communication between Development Team, Investment Associate, Asset Manager and Director of Operations.

• Construction – Property and accounting teams become involved. Property managers and

engineering staff should work closely with project managers to ensure smooth transition from “development” to “operations”. The construction period may vary anywhere from three months to one or two years.

• Substantial Completion – The transition from development to operations begins.

• Full Operations – Development period ends 12 months after substantial completion or when

building is 93 percent leased.

• Final Closeout of Issue List – Transition team ensures close out of items outstanding at substantial completion and during transition between development and full operations.


Development Team Members

Asset Manager • Primary contact for financial questions during development transition into operations

• Primarily responsible for issues post substantial completion • Assigns responsibilities on the Issue List • Coordinates Transition Calls • May assist in property financial strategy and tour

Director of Operations, Property Manager, Chief Engineer

• Key person for answering questions related to operations • Primary person for transition issues during construction • Develops relationship with customers and property owner during construction

Portfolio Accounting Manager, Development Accountant

• Prepare Operating Expense Projections • Process and post all bills and rent invoices at move-in • Transfer information from Development to Operations Accounting • Opens bank accounts and ensure property set-up in (insert name of bank account) • Reconcile costs between Development and Operations


Development Transition Tasks Task Responsibility Description

Design and Review

Asset Manager, Director of Ops,

Property Manager, Chief Engineer

In all development projects, property management plays a key role, both during the design process and during the building start-up and transition to an operating property. In-house engineering and property management specialists regularly review drawings and specifications and participate in design team meetings, with the goal of ensuring that mechanical, electrical and plumbing systems and building services address the needs of our customers. In build-to-suit and fee projects, the property management team has the opportunity to meet directly with the customer. An important part of this process is assisting the customer in establishing budgets and building operations programs.

Accounting Transfer

Development and Operations Accounting

The development group communicates management issues and critical dates (substantial completion) to the operations and accounting teams. New leases are signed and distributed internally. A bank account is set up at this time to get ready to receive rental revenue, and the property financial information (leases, budgets, general ledgers etc.) is entered into the accounting system. The development and operations accounting groups work to close accounts appropriately for certain expenditures and reconcile costs between Development and Accounting.

Commissioning Engineering Director Commissioning Checklist: All equipment is tested, documented and accepted into operations for the building. Development and operations groups work with the contractors to set up and/ or transition operational contracts, such as contracts for servicing the elevators and security systems. Prior to substantial completion, the property management team works closely with the design engineer and the general contractor to start-up the building systems and coordinate the completion of punchlist items.

Substantial Completion

All Team Members At substantial completion or on lease commencement dates, rent letters and the Customer Handbook are delivered.

Review Documents

All Team Members Operating Manuals Construction Documents New Management Agreement


Transition call All Team Members; Primary focus for

Asset Manager

Conference Call Outline: At the beginning of the transition process, the transition team conducts team conference calls to prepare for the transition and to transfer important closing information to property management and accounting and to introduce all members of the teams. The Asset Manager schedules the following calls: • 3-4 months prior to substantial completion • At substantial completion • 90 days after substantial completion

Transition Issue List

All Team Members; Primary focus for

Asset Manager

This document should be kept on a shared drive (“shared:\Transition\”) for all members to have access and track issues that arise during this period.


Dispositions – Overview

The disposition of an asset requires careful planning. Owners and/or senior management regularly evaluate portfolio returns to optimize asset and company value. Once a property is designated for sale, a Disposition Team should be established to ensure that the transaction goes smoothly. Every team member plays a role in achieving the highest sales price for the asset.

Throughout the disposition process, team members will be required to perform duties that may be outside their normal scope of work. They must, however, execute all assigned tasks to the best of their ability and with the utmost urgency. In addition, due to the sensitive nature of this transaction, all information related to a disposition must be treated as confidential.

During this process team members should focus on:

• Professional and positive presentation to potential buyers – The impression CBC makes on the buyer during the early stages can secure an opportunity for continued management, leasing and other facility services. We may also develop relationships that lead us to other opportunities.

• Minimum disruption to customers and staff – It is imperative during this period that we

continue to provide the quality services to which our customers and staff are accustomed.

• Controlled flow of information to the buyer – All written correspondence to the buyer should be authorized by the Investment Associate and/or Asset Manager.

• Confidentiality – Do not talk to the media, trade associations or brokers regarding the

transaction or affirm the contemplated sale. All requests for information should be handled through Corporate Communications.

• Effective internal communication – The Investment Associate will direct all communication

to the buyer. The Asset Manager or Director of Operations will coordinate and disseminate communications among the Disposition Team. Questions regarding the transaction should be directed to one of these three individuals.

In many cases the buyer of a property will retain CBC to provide management services for that property. In that event, a management agreement between the new owner and CBC will be executed and should be reviewed by each member of the Disposition Team.


Dispositions Stages

Initial Due Diligence - Period prior to execution of Purchase and Sale Agreement -A buyer has been identified. Primary communication should be between Investment Associate, Asset Manager and Director of Operations. Primary Due Diligence – Period after execution of Purchase and Sale Agreement – Buyer requests information related to the property’s financial and physical history. Property and Accounting teams become involved. Closing – Days immediately preceding and following the sale date -Transition call involving all team members scheduled for dissemination of information and documentation related to the sale. Transfer of utilities, contracts, etc. occurs. Post-Closing – Period extending 30 days to 1 year post-closing. Final operating expense reconciliation will be prepared and “true up” between previous owner and the new owner will be finalized. Final closeout of Issue List will be confirmed. Disposition Team Members Investment Associate • Buyer’s primary point of contact

• Manages the entire disposition process through closing • Person authorized to release information to potential buyer • Transfers all due diligence materials to buyer and team members • Prepares tenant estoppels • Prepares closing pro-rations with assistance from accounting staff

Asset Manager • Primary contact for financial questions during due diligence period • Should be consulted prior to release of information to the buyer • Should review tenant estoppels prior to issuance • Primarily responsible for closeout and post-closing issues • Assigns responsibilities on the Issue List • Coordinates transition calls • May assist in property tours

Director of Operations, • Key person for answering questions related to operations

Property Manager, • Primary person for property tours

Chief Engineer • May be called to assist with gathering and distributing due diligence information such as contracts, utility information, etc

Portfolio Accounting Manager, Revenue Accountant

• Prepares operating expense reconciliation at closing and post-closing • Processes and posts all property bills and accruals up to closing date • Transfers information to the Investment Group • Posts all cash receipts and reconciles receivables prior to closing


Disposition Transition Tasks

Task Responsibility Description Identify Physical Property Issues

Asset Manager, Director of Ops,

Property Manager, Chief Engineer

Non-recurring projects (i.e. capital improvements and major R&M projects) This is done once a property has been identified for sale Review final transition memo from purchase to identify issues that might arise during due diligence. Be able to respond to open items.

Identify Current Customer Open Issues

All Members Attempt to resolve customer disputes Diligently address receivables with aggressive follow up prior to identification of buyer, who may discount the sales price if there are late paying customers. Ensure timely delivery of estoppels, and focus on representations raised in same.

Identify New and Pending Lease Transactions

Asset Manager, Director of Operations Investment Associate

Review and discuss pending lease deals. Maintain list of all commissions earned yet not billed. Coordinate/discuss cost and completion of tenant work.

Property Tours Director of Ops, Property Manager,

Chief Engineer, Asset Manager

Inspect the property thoroughly and perform “spring cleaning.” This should be done early (as part of our ongoing service standard). Reaffirm the property is operated in a professional, clean and orderly manner.

Document Review All Team Members Review the following: a) Final Investment Memo from the acquisition b) Purchase and Sale Agreement c) new Management Agreement (if CBC is involved) d) Closing Statement e) Transfer of Deed f) Accounting records g) Physical Inspection Reports.

Transition Call All Team Members; Primary focus for

Asset Manager

The Asset Manager will schedule transition calls at the following milestones: • Execution of the Purchase & Sale Agreement • 30 days prior to closing • Immediately after closing • 60-90 days after closing


Transition Issue List

All Team Members; Primary focus for

Asset Manager

This document is kept on the shared drive in the folder marked “TRANSITION”. All team members should post issues as they arise and dates when closed out.

Final Accounting Close Out

Portfolio Accounting Manager, Revenue

Accountant

Prepare final operating expense reconciliation. Prepare final true-up with Buyer. Transfer post-closing rents. Follow up on outstanding tenant receivables. Forward tax bills to buyer. Transfer accounting records to CBC (if required). Close bank accounts.

Final Property Close Out

Director of Operations,

General Manager, Chief Engineer

On the day of closing, transfer utilities and phone into name of buyer. Notify vendors of ownership change. Notify tenants of ownership change. Notify payroll of changes in employee allocations. Remove property excluded in the sale (management office equipment). Remove intellectual equipment not included in Purchase and Sale Agreement.

Document transfer

All Team Members (with specific

authorization by Investment Associate)

Copy of leases, contracts, utility bills, real estate taxes, etc. Preparation of financial statements and rent rolls, maintenance reports, etc. Provide general expense ledgers and other historical accounting records. Provide budgets and capital plans.

Disposition Tools and Resources:

Management Close-Out Checklist – The first tab in the Appendix should be used in connection with transfers of both ownership and management. The second tab is for use during transfers of ownership when CBC is retained as the managing agent.

Disposition Tracking – Asset Management tracks property dispositions and maintains a schedule that can be accessed on a central drive identified as “Transition – (Property Names)”.

• Transition Issue List • Purchase and Sale Agreement • Settlement Statements • Closing Proration Schedules • Physical Inspection Reports • Budgets • Investment and Transition Memorandums


Third Party Management - Overview

For more than a decade, CBC has provided comprehensive real estate services to the most value-conscious institutional, corporate, legal and non-profit office building owners. By responding to requests for proposals, and by developing and maintaining relationships with owners, we are able to sustain our third party management business. Once a request for proposal is received, the appropriate management office will review the opportunity, and determine the optimum strategy and plan to present the best proposal. At this time, information about the property, its market and customers is collected and used both to prepare the proposal and, later, to ensure a smooth transition. Transitioning from in-house management to outsourced operations or from one third party provider to another is a difficult process requiring a disciplined, detailed approach. CBC’s process for such transitions has evolved over the years, drawing upon the collective experiences that we have encountered and overcome. Each start-up/transition is unique, requiring flexibility on the part of the management team to understand each client’s specific needs and to factor those demands into the transition process, thereby resulting in programs and procedures that can be relied upon throughout the management assignment. As stated above, we have provided quality office management services to our customers for over 10 years. Accordingly, we are seasoned veterans in managing the challenges our customers face as they transition to a new management provider. At CBC, we focus on the long term service of the properties we manage regardless of property ownership, with the goal of maintaining a superior quality of life for our customers’ employees, while ensuring efficiency and effectiveness of property operations. A smooth transition to a new management team requires a formal transition plan developed specifically for each property being transitioned. Such a transition plan should include a clearly identified transition team (the “Transition Team”) comprised of members each having specific responsibilities to ensure an effective transition. What follows are guidelines for the formation of the Transition Team and the responsibilities of each team member in relation to the transition process. When presenting the transition plan to your customer, you should demonstrate the experience and capabilities of each of the team members and why they were chosen to assist with the transition.


Third Party Transition Team Members The Transition Team should be made up of seasoned professionals and department heads within the organization who should take lead roles in the transitioning process. With respect to larger properties, CBC corporate support can assist local Transition Teams to effectuate more seamless transitions. The following individuals and various departments will be involved in the transition process:

• Transition Manager • Engineering Director • Financial/Operations • Reporting • Operations/Administration • Customer/Occupant Services • Training Personnel • Quality Control

All of the individuals and departments listed above are critical components of a properly functioning Transition Team. Additional individuals can be consulted to provide input regarding particular elements (i.e. Telecommunications, Real Estate Appraisal, Construction Management, etc.) of the transition process as necessary. Prior to the commencement of any action by the Transition Team, the Transition Manager and other team leaders should become familiar with the client’s goals for the operation of the property. Accordingly, detailed discussions with the client should take place concerning the objectives, use and operations timetable for the property. This process will not only provide the insight necessary to establish effective operating practices, but also will provide information from which the Transition Team members can begin to formulate a program that meets or exceeds the client’s expectations. Each transition process is unique and requires customization based upon the client’s objectives. CBC will support and deliver the most qualified individuals to support the goals of the client. The following is a discussion of the specific responsibilities of each of the Transition Team members. Transition Manager The process of transitioning to an outside manager (or to a different third-party manager) is spearheaded by an experienced Transition Manager. The Transition Manager supports the efforts of the local Property Manager and assembles a team comprised both of individuals having regional and national expertise and of local professionals to ensure that the process and tasks discussed later in this section are administered and communicated to clients in an effective and timely manner. The Transition Manager is responsible for the overall coordination of the transition process and will interface with the client on a regular basis to discuss progress and provide status updates. Typically, meetings with clients initially are held weekly, with daily contact as necessary to answer any client questions, to discuss issues or to review strategies. As the transitioning process continues, progress meetings generally take place only once every two weeks. Of course, the Transition Manager also will interface with each of the Transition Team members, and must understand the process to be followed and the actions required to fulfill their responsibilities in connection with the transition process.


Engineering Director The Director of Engineering supervises and reviews the various aspects of the engineering component of property/facility operations. This Transition Team member will support the local Chief Engineer and Project Manager by reviewing drawings and documentation, inspecting machinery & systems, and developing a sequence of operations and preventive maintenance programs in accordance both with the manufacturers’ recommended operating practices and the life cycle costing of the procedures recommended. Financial/Operations Reporting Proper implementation of financial and operations reporting requires coordination with appropriate client representatives outside of the CBC property management team. The individuals responsible for this function must understand the practices utilized by prior management for accounting and reporting on the finances and operations of the property, including: internal controls, accounts payable processing, bank accounts, information systems, budgets & forecasting and review of corporate contracting processes and procedures which must be followed. The reporting team must be able to account for any and all records received from prior management during the transition process. In order to account for these records, the Transition Checklist should be used (see Appendix #3) This position will oversee this function and will meet with designated representatives of the Owner/Client. Operations/Administration In developing appropriate operations procedures, an owner’s representative should work in conjunction with the person at CBC responsible for Quality Control review, for providing guidance to other Transition Team members, and for assessing the presence of security, life safety and disaster recovery plans. Results of this review will be discussed with the appropriate client personnel to discuss establishment of operating procedures. The operations team will identify opportunities to improve service and reduce cost by utilizing the purchasing power of CBC and/or instituting "Best Practices" to generate savings. Additionally, the Transition Manager should also participate in the establishment of prequalification programs for vendors, review and abstracting of all service/vendor contracts, and set-up of the property office, including data lines. Through this process, the Transition Manager becomes effectively cross-trained to serve as a back-up to the assigned manager. Customer/Occupant Services In conjunction with the appropriate client representative, the customer service team will be responsible for the creation of a baseline survey of services. This baseline will help to measure progress against a given set of objectives. These baseline objectives, in turn, serve to establish benchmarks for the superior performance that CBC’s clients expect at properties managed by CBC. Additionally, this team will interface with the facility team to review, modify and publish a customer/facility handbook that will document the procedures and methods for many of the services CBC provides and for handling potential emergency situations. Training Personnel The key to operating complex facilities is to make sure that properly trained and motivated individuals are identified for all available positions. The primary objectives of the training group are to identify and train the appropriate people from within CBC to staff and operate each particular facility. The training group will meet with the client to assess the client’s goals and demands with respect to the operation of the property, and will communicate these goals to the property team to assure compliance with the client’s specific needs. It also is this group’s role to provide ongoing training and advice for the continued advancement of CBC employees through their respective careers.


Quality Control CBC has developed various measurement tools to monitor and ensure the effectiveness of the various teams working in different environments at CBC properties. During the transition phase of a property, the quality control team will identify potentially important performance objectives which can be measured using key performance indicators (“KPI's”). These potential KPI's then will be reviewed and discussed with the client’s representative to ensure that CBC is in fact monitoring the performance objectives which the client desires. We recommended that a baseline survey be conducted immediately following the move-in process. This will act as a baseline against which future customer surveys can and should be measured. This is also addressed on more detail in the customer service sections. [Is this the same as the customer service baseline survey? If so, move this to that section?] KPI's should be measured at least once a year, and on a more frequent basis depending on the needs and desires of the client. Examples of the functions which KPI's measure include:

• Capital Budget Management • Project Management • Survey results • Property tour/Inspection results • Emergency Preparedness • Critical downtime events • Preventive Maintenance Procedures • Control of Expenses • Customer Comfort

Length of Start-Up Process Generally, the transition period for a property lasts between 45-90 days. This timeframe should be adjusted as required in accordance with the client’s specific needs. Third Party Management Transition Process and Program Based upon the information provided in the Request for Proposal (RFP), CBC has developed the Services Delivery Chart (see Appendix #4) to support our understanding of the deliverables that will be required. The development of this chart has factored in the service delivery based on client objectives. Each chart should be specifically aligned to the client requirements. This transition process is broken down between business disciplines that are Core business groups within Coldwell Banker Commercial and those that would be outsourced through vendors.


Appendix

1. Vendor Set Up/Information Form

2. Acquisition /Disposition Due Diligence Transition Checklist

3. Transition Checklist

4. Services Delivery Chart


Appendix 1: Vendor Set Up/Information Form

ASSET SERVICES VENDOR MAINTENANCE FORM METRO NAME: PROPERTY CODE: Check one of the following:

Add New Vendor

Update existing Vendor (Vendor # ) Reason for change: Vendor Name (as it will appear on check): Vendor’s Legal Name (Name listed on W-9): Mailing Address: Billing Address: City: State: Zip: City: State: Zip: Telephone Number: Fax Number: Email Address: Fed Tax ID: - (MUST BE 9 DIGITS) or SSN: - - TAX REPORTING NAME: Vendor Terms: Reason for Terms less than 30 Days:

W-9 and relevant supporting documentation must be submitted with the request. Email completed form to ______________________________and fax to ________________ © 2010 Coldwell Banker Commercial Affiliates. A Realogy Company. All Rights Reserved. Each Office is Independently Owned and Operated. Coldwell Banker


Requestor: Print/Type Name: Email: Signature: _______________________________ Date:

Instructions: • All fields must be completed. Incomplete forms will

not be processed. • Verify vendor does not exist in Yardi before requesting

new vendor. Check by Vendor name and Tax ID.


Appendix 2

Acquisition/Disposition Due Diligence Transition Checklist

Topic Item Forward

to General YTD current Ledger YTD thru settlement date

Old Management Agent Chart of Accounts Last years’ year-end Prior years' year-end

Operating Current period Statement Cut-off thru settlement

Last years' year-end Prior years' year-end Prior mgmt. account roll-up structure

Budget Current years’ - by current mgmt agent

Rent Roll Current status Explanation of transaction codes Status as of settlement Prior year monthly rent rolls

Lease Tenant mailing addresses, phone and fax etc. Admin. Tenant billing addresses, phone and fax etc.

All lease documents Lease Abstracts Leases in negotiation & status of each Stacking Plans with suite #s List of Outstanding Receivables Aged Receivable Report Security Deposit Listing Status of any payment agreement not specified in lease Miscellaneous tenant billings files/work papers Prior tenant billings Percentage (overage) rent Tenant Correspondence Files

Accounts Vendor listing (Name, address, phone, contact, tax ID etc.) Payable List of Outstanding Payables (Only if we are obligated)

Invoice files (copies of current years’ paid invoices)

Operating Operating Expense pass through and CPI files Expenses Base Year Expense Pool Calculations

Prior Year Audited Financial Stmt & Oper. Exp. Audit Prior year expense pool (audited, if available)


Current year operating expense pool (audited, if available)

Taxes Current year tax assessment Current years’ bill Prior five (5) years Assessment appeal information/file & status of current appeal Tax Attorney name, address and number Prior Two Years' Tax Returns Personal property tax return

Other Ground Rent Information - If applicable Excel Field Review Report

Settlement Statement & Supporting Documentation Management Contract, if applicable Fixed asset & accumulated depreciation schedule at sale date Physical inspection report (ie. DFA report) Note: Bold items are critical to initial property set-up and/or are important to timely transition to the operations



mailto:[email protected]


Preliminary Due Diligence Checklist

Location__________________________________________ Date_____________________

GENERAL PARKING

Year Built: Parking Levels:

Gross Sq. Footage: Garage space counts:

Rentable Sq. Footage: Ratio: _____spaces/ ____sq. ft

Sq. Foot per Floor: Handicapped spaces and location:

Architectural plans available: ADA access from garage to building:

Construction Type: Height limit in garage: Tenant stairwells between

floors: Tenant only or daily allowed?

Sprinkled: Valet parking?

Fire doors: Garage operator? Fire stopping between curtain

wall and slab edge: Condition of Garage structure & slab?

Column spacing: Hours of operation? 24 hour access?

Mullion spacing;

Maintenance responsibility of operator?

Floor loads: Manlift? Inspections and licenses?

Ceiling Height, to finished ceiling:

Slab-to-slab height: ROOF Building standard ceiling type,

2x2 drop-in: Roof Type & Age:

Number of Floors (tenanted): Warranty? Number of Tenants & Lease

Expiration Dates: Maintenance inspections?

Storage availability: Adequate drainage? Special tenancies:

Doctor's offices: Consultant's reports?

Hazardous waste generators: Roof tie-offs inspected yearly?

Cafeterias: Tenant access?

Cook hoods: Roof deck?

Computer rooms: Tenant equipment?

File storage: Rooftop equipment leases? Bldg. Operating Hours

(engineering coverage Hrs?): Rooftop maintenance agreement?

After-hours charges:

On-site management office(s):


Façade Type & Caulking condition RESTROOMS

Warranty?: Restrooms per floor

Window glazing condition? ADA Status:

Glass Type: Aesthetics: Window washing frequency

and vendor: Type of fixtures, flushometers, and faucets, availability.

Ventilation adequate:

Floor drains in all restrooms:

SPRINKLER Plumbing plans available: Sprinkler coverage (% of

building covered?)

Type of heads? ELEVATORS

Recalled heads? # of Cabs

# of risers? Mechanical Control Age

Looped system? Condition of Cabs (rehab needed?)

Tampers and flows? Who has maintenance contract:

Sprinkler plans and approvals available? Dedicated freight elevator?

Does it go to PH?

Fire extinguisher type and locations: Size of freight elevator:

Fire extinguisher vendor: Ceiling height in freight elevator:

Does freight have independent riser control?

FIRE SYSTEM How many elevators serve the garage?

Fire System Type & Age Loading Dock

ADA Compliance: Shared access?

Fire control room: Attendant?

Maintenance contract in place: Delivery rules in place? Fire alarm plans and approvals

available: Parking restrictions in place?

Emergency generator:

Maintenance contract in place: Utility Usage

Underground fuel storage: (yearly elec, water & gas costs):

Lighting retrofit:

Security System & vendor: Other energy upgrades:

Human security coverage? Tenant metering, direct from

utility company, or sub-metered and billed back?

Licensed Security Officer 24 hours? Other metering billed to

tenants:

Lobby attendant?


HVAC SYSTEM ELECTRICAL GEAR Type & age: (Manufacturer & Age)

HVAC plans available? Last 3-year maintenance: (Any long standing tenant

comfort issues) Watts/square foot:

Cooling Tower type and age Safety mats in place: Unit/s type & age

(chiller or SCU info) Labeling in place:

Evidence of water infiltration:

BAS SYSTEM Electrical room ventilation:

type & age: Smoke detectors:

BAS system contract? Fire stopping:

Control system plans available? Location of outside air intakes

and security of same: ENVIRONMENTAL

Filtration type and vendor: asbestos,

Sq. ft./ control zone: lead in water,

24 hour commercial tower: lead in paint,

Water treatment program? pcb ballasts,

Vendor? fluorescent lamp disposal,

radon gas,

CORROSION MONITORING: % outside air,

Type of biocide: building pressurization/

infiltration of CO from garage or loading areas,

Legionella Assessments:

location of diesel generator exhaust, cooking exhausts, and

cooling tower mists in relation to OA intakes,

Air quality monitoring: fume or waste-producing tenancies,

Are there test reports: smell issues, Safety equipment in place,

including eye wash stations: EMF issues,

Secondary containment in place: outside noise issues, internal mechanical noise issues,

TELECOMMUNICATIONS PROVIDERS: rodent or pest issues (rats, pigeons, mice, roaches),

Fiber: storage in plenums or utility closets,

Other: fiberglass shedding from sound-lined ducts:

crumbling ceiling tiles or ceiling coatings, etc.

LANDSCAPE CONTRACTS: TRASH HAULER: Cleaning company contract: Recycling:

Union or non-union: Dumpster location: Provide day porters: Compactor:


Appendix 3: Transition Checklist

Sample form, original can be downloaded from Blueprint




Appendix 4

Services Delivery Chart

In-House only

Sub-Contracted/ Managed

Combination Included in Basic

Services (y/n)

Plant Operations Supplemental X X yes Preventive

Maintenance. X yes

Water Treatment X yes

Gen. Maintenance Electrical X yes Painting X yes Plumbing X yes Furniture/Fixtures X yes Power Distribution X yes

Housekeeping General Cleaning X yes Carpet Care X yes Confidential Waste X yes Porter/Matrons X yes

Parking Management X yes Signage X yes

Administration Audit Control X yes Budget Preparation X yes Monthly Reports X yes

Security Fire/Life Safety X yes Security ID’s X yes Post coverage X yes Keying X yes Special Events X yes

Support Service Cafeteria (if required) X no Mailroom X no Shipping/Receiving X no Reprographics X no Secretarial X no

Project Mgmt. Project. Coordination X no Major Projects X yes* Minor Projects X yes Code Compliance X yes

