The Importance of a Phase I Environmental Site Assessment Zack Rieger | 12/6/2018 Making commercial real estate purchases can be a cumbersome task. The transaction can be riddled with devastating liabilities that could cost the investors far more money than was initially agreed upon. To prevent situations like these and to protect potential lease, purchase,…
Phase I Site Assessment is the detailed report you need
Our environmental professionals look for evidence of contamination. For instance, sources such as leaking storage tanks, chemical spills, dumping, and construction materials. As a result, substances that we look for evidence of include petroleum products, lead, and asbestos.
However, physical examination of the property and adjoining properties is only part of the process. Most importantly, our experts pore over historical records, conduct governmental and proprietary database searches, examine aerial photographs and topographical maps, and review any other available sources of information about the property.
The Next Phase in Due Diligence Reporting
In the United States, ESAs of real estate properties are required in a number of situations, including:
- When property is purchased or sold
- Buyouts and changes in ownership
- When a lender considers providing a loan for real estate
- Changes in permitting
- When mandated by a regulatory agency
In addition, there are many situations when an ESA is advisable. For example, when a property is being evaluated for purchase, or simply when an owner wishes to know more about the current state of their property.
- Meets SBA requirements
- Meets EPA All-Appropriate Inquiry (AAI)
- Performed in general accordance with ASTM E1527-13
- Requirement for meeting CERCLA liability protection
- Title records search, environmental liens search, activity and use limitations search
- Review of tribal government records
- Research/interview past owners/occupants
- Performed to identify recognized environmental conditions (RECs)
- A physical on-site reconnaissance of subject property and adjoining properties
- Review of selected physical setting sources (topographical maps, soil survey, etc.)
- Review of selected historical use information, (aerial photographs, city directories, etc.)
- Environmental records review of local, state, and/or federal regulatory databases