Four Seasons Place is a 95-unit luxury condominium development located on the uppermost floors of the Four Seasons Hotel. The building, in Boston's historic Back Bay, has a stunning view overlooking the Boston Public Garden. Management services and many maintenance services are provided by hotel staff. Many building systems, including major mechanical and electrical systems, are shared with the hotel operation.
ON-SITE-INSIGHT was first retained to conduct a capital reserve study of the property in 1990. Both management and association board were eager to determine an appropriate level of annual reserve contributions to insure adequate funding for major capital expenditures over a 20-year time horizon. The five-year-old property had a healthy initial capitalization of the reserve account; it was well constructed and maintained. Physical maintenance and capital costs for the property were divided between the condominium association and the owner of the hotel unit, in specified proportions. Working with top management, OSI prepared alternative scenarios to funding capital improvements. The solution, involving modest increases in annual fees, ensured that all expected capital improvements could be funded. This was deemed preferable to periodic major special assessments.
ON-SITE-INSIGHT has now performed three updates of the initial assessment. OSI has recommended adjustments in annual contribution levels, an alternate strategy of special assessments, and careful monitoring of major mechanical and electrical systems to avoid shortfalls after that point. |
