Bush Terminal – Physical Condition Assessment and Expanded Facilities ServicesGeolocation: 40.6924, -73.9899

Terracon was engaged by Goldman, Sachs & Co. to complete a property condition assessment of the Bush Terminal industrial portfolio located along the East River in Brooklyn, N.Y. The site consists of 18 multi-story warehouse buildings with associated parking areas, mechanical buildings, and an electrical substation. The property encompasses a total of approximately 6.2 million square feet of building area. The buildings, predominantly warehousing with limited office use, were constructed in the early 1900s as Industrial Cities on approximately 35 acres of land. The aged structures are cast-in-place concrete and found to be generally sound, but had significant deferred maintenance issues. Beyond an anticipated $25 million budget for conversion of some of the warehouse space to office use established by the owner, our assessment identified more than $10 million in immediate repair needs and nearly $18.5 million in anticipated replacement reserve costs that will be required over a 12-year evaluation period. The portfolio's assessment was completed by eight of our professionals. The exercise included specialty assessment for structural, MEP, life safety, elevators, and roofing systems by Terracon's in-house professionals and represents a prime example of Terracon's ability to develop a cohesive team, with members from several offices, which were able to work in unison on a very complex and difficult project. There were several major structural and facade issues discovered during the assessment of these properties. Terracon evaluated and coordinated the resolution of these issues with our client every step of the way. The due diligence exercise included the assessment of approximately 150 elevators (almost all being service elevators utilizing the original overhead drum machines). It was determined that the elevators were 'grandfathered" and in compliance by the City of New York provided they continue to be maintained and not modified. Terracon's scope was expanded to coordinate further review and finer development of budgets for Local Law 11 reporting and facade repairs. We partnered with WJE Engineers and Architects, P.C. to assist us in the Local Law 11 assessment and budget development. Slab-on-grade failures in one of the buildings abutting a slip-channel of the East River were also discovered during our overall assessment. Terracon worked with local geotechnical engineers to help define the extent of structural failure and provide an estimated budget for repair.

Brooklyn, NY