Environmental due diligence is an official process used to assess the condition of a real estate property based on the current and historical use of the land. This involves gathering information to evaluate the risk of exposure to environmental contaminants, and identify issues a potential property owner might encounter.
Source: Environmental Protection Agency
Property Condition Assessment
A Property Condition Assessment is an evaluation of commercial real estate assets based on a thorough inspection, including all improvements and all the systems of each building on the property. Property Condition Assessments are defined in ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process. Commercial property and building inspections are important for clients seeking to know the condition of a property or real estate they may be purchasing, leasing, or financing. Generally requested before a property changes ownership, Property Condition Assessments will characterize the asset at a particular point in time, give you a general overview of the costs associated with correcting existing deficiencies as well as an estimate of the costs of maintaining the property over time.
Phase I Environmental Site Assessment
Phase I site assessments are typically conducted on properties under pending commercial real estate contracts or lender financing or owner refinancing. Our reports have been developed with years of experience, resulting in a well-organized format that is easy to read and understand. Phase I Environmental projects are conducted in accordance with ASTM E1527-13 Standard Guide for Environmental Site Assessments: Phase I Environmental Site Assessment Process standard or to meet a client's specific needs. Our services include:
Helping lenders manage their property risk program by evaluating, developing, implementing, and monitoring due diligence policies;
Assessing properties for out-of-scope considerations and other business-related risks to enhance property due diligence;
Provide timely, cost-effective and site-specific recommendations to address recognized environmental conditions (RECs) and business risks identified on-site.
Transaction Screen Assessment
The Transaction Screen Assessment is often used by lenders, brokers and investors as part of a tiered approach to environmental risk management. Transaction Screen projects are conducted in accordance with ASTM E1528 Standard Guide for Environmental Site Assessments: Transaction Screen Assessment Process standard or to meet a client's specific needs. The Transaction Screen offers a good value for evaluating environmental liability at a cost less than the Phase I ESA.
Desktop Environmental Report
A Desktop Environmental Report is a cost-effective due diligence tool for evaluating environmental risk. Desktop reports are often used by lenders, brokers and investors as part of a tiered approach to environmental risk management.
Phase II Environmental Site Assessment
Phase II Environmental Site Assessments (ESA) are used to determine the presence, or absence of, petroleum products or hazardous waste in the subsurface of the site. Phase II ESA projects are conducted in accordance with ASTM E1903 Standard; however, this standard only provides the basic parameters for conducting the assessment process. There is a huge amount of professional judgment that goes into the final report to meet each client's specific needs. That’s why it pays to engage an experienced due diligence consultant who understands what’s involved in the complex assessment and the level of certainty your institution requires. When designing a Phase II ESA, the primary driving variables are:
Areas of Concern
Chemicals of Concern
Site access issues
Facility Condition Assessment
The Facility Condition Assessment provides accurate, objective data about the health of your assets and facilities so that you can target capital investments to meet the goals of your stakeholders. Aging facilities pose huge challenges for facilities managers responsible for dependable facility operation that meets their customers’ demands. Over time, facilities need to repair, upgrade or replace their equipment to meet various goals including operating uptime, service-level, quality, and production goals. Generally requested by asset managers, Facility Condition Assessments will characterize the asset in detail, including a more exhaustive inventory of existing systems and components, and provide specific data regarding repair and maintenance that will allow for more accurate projections of capital expenditures and maintenance costs over time.