What is a site readiness review?

A site readiness review (SRR) is a pre-funding and pre-construction review of diligence information performed for construction lenders and equity providers to confirm that a project and project site are truly ready for construction. Upon request, Smart Site Reviews can verify environmental information, entitlements, utilities and access, review survey and title and confirm that other key requirements are in place before funds are advanced under a construction loan or equity investment. This service helps our bank, credit union, private lender, debt fund and equity clients reduce risk before deploying capital in North Carolina, South Carolina and Virginia.

Why would a construction lender or equity provider request an SRR?

Lenders and equity providers order SRRs to help mitigate collateral and construction risk before they fund the first draw. Our review helps provide high-level confirmation that the site conditions and diligence collected match the plans and budget, that critical pre-conditions (e.g., access, utilities, entitlements, permits) appear to be in place, and that the project is positioned for successful construction monitoring going forward. This is especially important for large commercial real estate construction loans and residential subdivision loans and for equity funding of those projects. Our SRR focuses on the aspects of site and project risk that matter most to lenders and equity providers when underwriting and monitoring construction projects.

For what types of projects do you perform SRRs?

Smart Site Reviews focuses on all classes of commercial construction and residential subdivision projects, including:

• Office, industrial/manufacturing/logistics, retail and mixed-use;
• Multifamily, including apartments and condos;
• Hospitality, self-storage, healthcare/life sciences and education/civic;
• Parking/structured facilities, specialty and other commercial properties; and
• Residential subdivisions and townhome communities (entire projects).

Note that we do not provide services for individual single-family homes.

Where do you provide SRRs?

We provide SRRs for projects in:

• North Carolina (e.g. Charlotte, Raleigh, Durham, Greensboro, Wilmington, Jacksonville, Fayetteville, Rocky Mount, Wilson, Winston-Salem, Asheville and other NC markets).
• Southern Virginia (e.g. Danville, Martinsville, Bristol, Richmond, Norfolk and nearby markets).
• Northern South Carolina (e.g. the greater Charlotte-adjacent and Upstate markets such as Rock Hill, Fort Mill and the Greenville–Spartanburg region).

If a client is financing a project within North Carolina, southern Virginia or northern South Carolina, Smart Site Reviews can also provide plan and cost review and construction draw site inspection services for that project.

How is an SRR different from a construction draw site inspection?

An SRR is a pre-funding or pre-construction service, focused on site diligence, entitlement and conditions, as described above, and alignment with the approved development plan and budget.

A construction draw site inspection, by contrast, is a recurring services performed monthly during construction to confirm the accuracy of draw requests and track project budget and schedule, as described below. Clients can use Smart Site Reviews for both services: an SRR before the first disbursement and recurring inspections afterward, creating extra layers of efficiency and risk reduction

Do you review building codes, issue permits or perform PCAs as part of an SRR?

No. Smart Site Reviews does not perform building code compliance reviews, permitting reviews (although, if requested, we will review issued permits to determine all permits required for each project scope have been issued), or property condition assessments (PCAs).

How does an SRR help with construction financing?

An SRR helps debt and equity underwriters and construction loan administrators validate that the assumptions in the plans, budget and schedule are realistic given the site conditions and entitlements actually in place. This can help identify, among other issues:

• Zoning, access, utility or entitlement problems, gaps, or delays;
• Environmental or geotechnical red flags;
• Sitework scope gaps relative to the budget; and
• Potential schedule risks.

That information supports a correctly allocated capital stack and more accurate loan sizing, contingency setting and construction draw monitoring for construction lenders and equity providers across North Carolina, South Carolina and Virginia.

Who typically engages Smart Site Reviews for SRRs?

Our clients are institutional and private construction financing sources that want independent verification of site readiness, including:

• National, regional and community banks and credit unions;
• Private debt sources, including bridge, development and mezzanine lenders, and hard money lenders; and
• Equity providers and JV partners.

We act as “eyes and boots on the ground” at the site before the first draw is funded.