Environmental Due Diligence

Before we start we should get on the same page about why environmental consultants are hired by commercial lenders to begin with. An Environmental Consultant’s job is to limit downside risk on a commercial loan. Too often lending institutions business practices encourage environmental consultants to raise costs, increase environmental risk, or both. How can this

The ESA Questionnaire is an important part of an ASTM 1527-13 Phase 1 ESA. A3E wants to help Freelance Environmental Consultants to do more work, faster and ultimately get paid more. Why? Because we’ve been there, done that. Let’s work together!

Phase 1 Environmental Site Assessment Checklist for Freelance Environmental Consultants. Download.

Everyone needs to start somewhere. Commercial investors are no different. Sometimes a commercial building is bought by a business owner because they need it for operations. Other times the commercial investors are buying the property to become a landlord. The building is inventory for potential renters. What do commercial investors need to know? If Your

Before we start we should get on the same page as to what constitutes a “bad” environmental report. You might think bad is the same as saying that your environmental consultant found a Recognized Environmental Condition (REC). A REC generally means issues for buyers, sellers, and lenders while casting a shadow over the transaction. This

Commercial Real Estate Professionals don’t typically hire environmental consultants themselves, but as a trusted professional, they can influence the buyer on who gets used. CRE Pros know they get paid when a property closes. In reality, they get paid IF a property closes. That’s why managing the process after the contract is signed and on

For many people, purchasing a commercial property is a once-in-a-lifetime event. It’s not surprising that most don’t know the terminology. There’s no such thing as a “Level One Environmental”. It’s called a “Phase 1 Environmental Site Assessment”.  This post is dedicated to all the ways people get their terminology understandably wrong. It makes it difficult

To answer the question of which is better, the Environmental Desktop Report (EDR)  or the Record Search with Risk Assessment (RSRA) you must first know what each is.  Environmental Desktop Report (EDR)   This is a light form of environmental due diligence done by an environmental consultant to determine quickly what kind environmental risk is

RSRA is the abbreviation for Record Search with Risk Assessment (RSRA). It was developed by the Small Business Administration (SBA) as a less expensive form of environmental due diligence when applying for SBA backed commercial loans. With a price-point of less than half the cost of a Phase 1 ESA, these environmental reports lowered the

There are three phases for environmental investigations, conveniently called Phase I, II and III. Phase I Environmental Assessment: Phase I is an environmental audit. It starts with a database and historical record search. We request data from the city and fire department and an environmental professional walks through the site looking for past, present or

Environmental Database Reports (EDR Reports) are low cost, high level data regarding the environmental risks affecting a target property. They are sometimes called Desktop Assessments, Desktop Due Diligence or Desktop Environmental Reports. The desktop refers to the fact that an environmental consultant does not visit the subject property like they do in a Phase I

The organization that established guidelines for the Phase 1 Environmental Study is the American Society of Testing and Materials (ASTM). They aren’t guidelines so much as they are a standard way of conducting a Phase 1 ESA. In much the same way as accounting has Generally Accepted Accounting Principles (GAAP) and manufacturing has the International

Phase 1 Environmental Inspections are performed by environmental professional who is trained to find past, present or future threats of environmental contamination walks through a property and inspects for environmental risks as part of the scope of work of a Phase I ESA. Phase 1 ESAs are done by environmental consulting companies, and environmental professionals

When buying commercial real estate everyone knows about Phase 1 Environmental Reports. The Phase 1 ESA is the gold standard when it comes to environmental due diligence. Most investors don’t know that there are other options, less expensive options that are often better choices for determining environmental risk based on constraints of money and time.

There are many reasons to perform Environmental Due Diligence. The most compelling reasons have to do with the risk of financial loss from possible contamination. In addition there’s a legal liability issue when buying contaminated land. Finally, there’s a health and human safety component wise commercial real estate buyers should always be concerned with. Protect

The most common way to clear a Recognized Environmental Condition (REC) from a Phase 1 Environmental Study is to complete a Phase 2 Environmental Study. The results will answer with hard science, if the REC is a concern and if it needs to be further remediated. What is a REC? A REC is basically an

The environmental inspection is part of a Phase I Environmental Site Assessment (ESA). It’s just one component of what goes into the project. If you are asking how the whole process is done, look here. If you are really only looking for insight into the Environmental Inspection part of the Phase I ESA, you are

You are asking an unintentionally difficult question. In order to answer it we need to know what “Environmental Test” you are talking about. If you’re looking for environmental testing of products like cell phones, you’re in the wrong spot. If you’re talking about commercial real estate, soil or groundwater environmental testing, read on… Environmental Screen

The best way to find a historic Phase 1 Report is to find it in your records or email. They are typically sent as PDFs from the consultant that did the work. The second best way to find a historic Phase 1 Environmental Study is to call the consultant who did the work. They should

As environmental professionals we get a lot of questions about the environmental questionnaire. A3 Environmental Consultants uses an online questionnaire to satisfy the requirements of what the ASTM standard calls AAI, or All Appropriate Inquiries. The survey questions are designed for the respondent to answer as either the “user” or “property owner”. Things quickly get

If you are reading this, you are either the buyer or seller involved in a commercial property transaction which requires a Phase 2 ESA. An environmental professional found a Recognized Environmental Condition (REC) during the Phase 1 Environmental Site Assessment process. The short answer to the question of who pays for the Phase 2 ESA

When commercial properties are bought and sold it’s frequently done by someone who is new to the process. Chances are high that you are a first time buyer or seller. So once a contract is signed, or better yet, before a contract is signed, the question comes up, “ Who pays for the Phase 1

A Phase 1 ESA is mainly used to prevent the accidental purchase of a contaminated or otherwise environmentally compromised commercial property at a price that doesn’t take into account the environmental risk or impact. The strategies for purchasing a Phase 1 ESA depend on which party you are to the transaction. There are generally three

Risk of environmental contamination is the worst kind of risk for a business. Environmental risk is expensive but it’s expensive in more than just dollars. Let’s take a moment and explore the ways which environmental risk could adversely affect your bottom line. Financial Risk The motivating factor for environmental contamination concerns affecting profits is fear

An Environmental Site Assessment can refer to either a Phase I Environmental Site Assessment (ESA or Report), a Phase II ESA or just the ‘site visit’ portion of a Phase I ESA. If you are looking for information on the entire process of a Phase I Environmental Report, click through the link to learn more.

The term “Environmental REC” is shorthand for Recognized Environmental Condition. It’s frequently misunderstood by clients that have little experience with them as “an environmental wreck”. It means that an environmental professional has identified the presence or likely presence of hazardous substances or petroleum products in, on, or at a property being assessed due to 1)

Phase 1 Environmental Reports are not public information under most circumstances. If you were not party to the contract between the environmental consultant that did the work and the person (or company) that commissioned the project you will most likely not be able to see the results unless the person who paid for it shows