Environmental Due Diligence
Environmental Due Diligence is the process in which different types of Environmental Site Assessments are done to a property in order to see if there are potential or existing environmental contamination risks.
Our staff’s comprehensive experience follows with the Standard Practice for Environmental Site Assessments (ASTM), Federal and State Regulatory Agency, industry standard procedures, and regulatory framework that are all required by the Small Business Administration and most commercial lenders, regardless of the known past history of the site.
What is an Environmental Site Assessment?
An ESA can take many forms, and will dependent upon the transaction type and risk of the property.Site Assessments that are included in Due Diligence are: Phase I ESA, Phase II ESA, Phase II ESA/ Remediation , questionnaires, and transaction screens. All of these assessments can be done in private and government projects at commercial properties, industrial, and manufacturing facilities.
Phase I ESA and Phase II ESA
An ESA 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.
Why is an ESA Important?
It is important for the seller to provide all key environmental documents for the property like; copies of the previous Phase I ESA or Phase II ESA reports, environmental permits, regulatory permits, maintenance and waste management records and reports, description of response actions or remediation activities, and environmental reserves or liens that the property may have.
If the seller does not have these items, then a prospective purchaser, investor, developer, or responsible party should consider the following assessments be performed for a subject property:
- Phase I Environmental Site Assessment (ESA)
- Phase II Environmental Site Assessment (ESA)
- Phase III Site Cleanup