Due diligence is the first step in determining if your development project is feasible and is also a standard part of a property acquisition — a box to check off on your way to financing. But what is your purpose in buying a property? Usually it’s development, ranging from renovating an existing building to construction of a campus of new buildings. If you plan to develop or acquire property, due diligence should be more than a checklist item — it should be part of your entire development plan.

 

Boyken investigates a number of factors that may affect the development of a property — soil and groundwater contamination, soil suitability for foundation construction, soil suitability for constructing storm water drainage, probability of flooding, wetlands, zoning setback and height requirements, depth to the water table, traffic issues, potential opposition of the neighbors, and the list gets quite lengthy. On an existing or ongoing property, Boyken investigates the condition and life expectancy of mechanical systems, building structure and exterior cladding and life safety systems.

 

Often the cost of development is dependent on how these factors are resolved for the best configuration of the project. For example, the wetlands assessment and zoning may indicate one part of the property is the best for a building; but that portion may be where the worst soil conditions for a foundation or the highest levels of contamination are located, indicating that construction costs in that area may be considerably higher than the budget allows and would be better suited for another “higher and best use”.