Site Readiness Review FAQs
What is a site readiness review?
A site readiness review (SRR) is a pre-funding and pre-construction review of available third-party diligence information performed for construction lenders and equity providers to help discover potential gaps that could cause a project and project site to not be ready for construction. Upon request, Smart Site Reviews can review environmental information, entitlements, utilities and access, 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 does Smart Site Reviews provide SRRs?
Based in Raleigh, Smart Site Reviews provides SRRs for properties and projects throughout North Carolina, South Carolina and Virginia:
- North Carolina (e.g. Charlotte, Raleigh, Durham, Greensboro, Wilmington, Jacksonville, Fayetteville, Rocky Mount, Wilson, Winston-Salem, Asheville and other NC markets).
- South Carolina (e.g. Charleston, Columbia, Greenville, Spartanburg, Rock Hill, Fort Mill, Myrtle Beach, Florence, Aiken, Anderson, Beaufort, Hilton Head Island and other SC markets).
- Virginia (e.g. Richmond, Virginia Beach, Norfolk, Newport News, Williamsburg, Fredericksburg, Charlottesville, Lynchburg, Roanoke, Northern Virginia, Bristol, Danville, Martinsville and other VA markets).
Our service area is based on the property’s location. Lenders, investors, buyers and owners located elsewhere can engage Smart Site Reviews for properties in these three states.
How is an SRR different from a construction draw review?
An SRR is a pre-loan closing service, focused on site conditions, entitlements and pre-construction diligence, as described above, and alignment with the approved development plan and budget.
A construction draw review, by contrast, is a recurring service performed monthly during construction to confirm the accuracy of draw requests and track project budget and schedule. Clients can use Smart Site Reviews for both services: an SRR before the first disbursement and recurring reviews afterward, creating extra layers of efficiency and risk reduction.
Do you review building codes or issue permits as part of an SRR?
No. Smart Site Reviews does not perform building code compliance reviews or permitting reviews (although, if requested, we will review issued permits to determine all permits required for each project scope have been issued).
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.
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.
How long does an SRR take?
The cost of this service depends on project size, scope, complexity, sufficiency and availability of documentation and other aspects of the project. Smart Site Reviews will analyze the project and provide an estimated delivery date.
How much does an SRR cost?
Smart Site Reviews provides a property-specific proposal after reviewing the property information and client requirements. Contact our team with the property address, approximate size, proposed project and requested deadline.