Environmental Due Diligence
Environmental Due diligence can include Environmental Site Assessment Phase I ESA, Phase II ESA, questionnaires and transactions screens. Environmental due diligence can take many forms, and will dependent upon the transaction type, environmental risk of the property.
Our staff’s comprehensive experience includes the ASTM, federal and state regulatory agency, and industry standard procedures and regulatory framework that are required by the Small Business Administration (SBA) and most commercial lenders, regardless of the known past history of the site, performs environmental site assessments (ESAs) and cleanups for private and government projects at commercial properties, industrial, and manufacturing facilities.
Environmental Due Diligence: Phase 1 ESA and Phase 2 ESA
An environmental site assessment is a report prepared for real estate agencies and/ or property owners which identifies potential or existing environmental impact liabilities. The analysis, often called an Environmental Site Assessment Phase 1 ESA, Phase 2 ESA, typically addresses both the underlying land as well as physical improvements to the property.
Click here to learn the basics of Environmental Due Diligence.
Phase I ESA ASTM E1527-13
The purpose of this Phase I ESA practice is to define good commercial and customary practice in the U.S. for conducting an environmental site assessment of a parcel of commercial real estate. This practice is intended to meet the EPA's All Appropriate Inquiry (AAI) standards
Our Phase I ESAs are performed in accordance with the ASTM E1527 - 13 Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process.
Phase II ESA E1903-11
A Phase 2 ESA may reveal Recognized Environmental Conditions (RECs) that require a subsurface, asbestos, lead based paint, or mold investigation before a determination of liability can be made for a property. This practice is intended for use on a voluntary basis by parties who wish to evaluate known releases or likely release areas identified by the user or Phase II Assessor. For example a historic or active gasoline station, mechanics shop, dry cleaners, or industrial facility may go straight to a Phase II ESA depending on the amount of information available.
When is the best time to have an Environmental Site Assessment done?
It is important for the seller to provide all key environmental documents for the property like; existing Phase I ESA or Phase II ESA, environmental permits, regulatory permits, records, and reports. It is also important to have an ESA done early on during the transaction or even better, before the transaction of the property.
Property Transaction Screens ASTM E1528-14
The purpose of this real estate environmental screening practice is to define good commercial and customary practice in the for conducting a transaction screen for a parcel of commercial real estate where the user wishes to conduct limited environmental due diligence (that is, less than a Phase I Environmental Site Assessment).
All Appropriate Inquiry (AAI)
All Appropriate Inquiry (AAI) is the formal process of assessing properties for the presence or potential presence of environmental contamination, it will evaluate historical and current use of the property in an effort to identify recognized environmental conditions (RECs) and historical recognized environmental conditions (HREC) in connection with the subject property, AAI is obtained by complete a Phase I environmental Site Assessment.