FRE provides seismic risk assessments (PML’s / SEL’s / SUL’s) for pre-acquisition due diligence services and refinancing services. In evaluating a building’s potential for seismic damage and stability against collapse, we consider six basic characteristics: Configuration, Condition, Compatibility, Continuity, Redundancy, and the Lateral Load Resisting System. In addition, building stability and site stability are evaluated. Below is a list of buildings that are susceptible to significant damage when subjected to large ground motions / earthquakes:

  • Concrete Tilt-Up Buildings:  Pre-1976
  • Tuck Under Parking Buildings; Multifamily; Wood Frame: Pre-1988
  • Wood Frame Buildings with Crawl Spaces: Pre-1976
  • Buildings with a Soft Story: Pre-1988
  • Irregularity in Shape / Stiffness: Pre-1988
  • Steel Moment Frame Buildings: Pre-1994
  • Concrete Frame Buildings: Pre-1976
  • Concrete Shear Wall Buildings: Pre-1980
  • Precast Concrete Frame Buildings: Pre-1994
  • All Un-reinforced Masonry Buildings
  • All Hollow Clay Tile Buildings
  • Masonry Buildings: Pre-1980
  • Also, All Buildings Located on a Site with a Potential for Liquefaction, Landslides or in an Alquist-Priolo Special Studies Zone.

Note equity owners, insurers and lenders are evaluating buildings with more and more intense scrutiny for the potential of seismic risk / damage. This is largely based on prior losses from significant historical earthquakes. For example, the 1989 Loma Prieta earthquake caused more than $6 billion in damage and the 1994 Northridge earthquake caused over $20 billion in damage. Financial institutions need specific and consistent measures of future damage loss for this decision process.