Phase I Environmental Site Assessments (ESAs) ASTM-1527-21
The role of “Environmental Due Diligence” has increased dramatically over the years as buyers and lenders are more cautious when entering commercial real estate transactions that may have potential environmental concerns. Utilizing database reports, historical land usage maps and on-site inspections, MECC provides clients with comprehensive reports outlining the environmental concerns of a property. All MECC environmental professionals (EP’s) have at least ten (10) years in the consulting field. In addition, our EP’s have all attended the required ASTM training program.
Whether conducting due diligence prior to purchasing commercial real estate, or obtaining financing from a lender, the Merritt team addresses all potential environmental issues in accordance with the ASTM E1527-21 standards released in February of 2024. The phase one Environmental Site Assessment (ESA) is the only document recognized when meeting the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) law and All Appropriate Inquiry (AAI) rule
Transaction Screen Assessments (TSA) ASTM 1528-22
Although not considered a Phase I Environmental Site Assessment (ESA) and does not offer the legal protections of a ESA report prepared in accordance with the All Appropriate Inquiry (AAI) rule, the TSA can help clients identify potential environmental risks. This can be a more cost-efficient approach and is may be utilized by lenders on smaller size transactions, especially in a re-finance or loan modification. The Small Business Administration (SBA) also recognizes the TSA on certain asset classifications.
Database/Historical Records Review
MECC can assist clients quickly in trying to determine if any potential environmental risks exist from a reported regulatory designation. Although not as comprehensive as other due diligence products such as the ESA or TSA, a database/historical desktop review, can provide a “snapshot” of concerns such as reported releases of petroleum as well as aid in locating historically buried gasoline tanks. Typically conducted from the office with no site inspection, this product has also been referred to as a Records Search and Risk Assessment (RSRA) by the Small Business Administration (SBA)
Focused Sub-Surface Site Investigations (FSSI) AKA Phase II Assessment
Upon discovering a Recognized Environmental Condition (REC) an Area of Concern (AOC) from a previous study (ESA or TSA), MECC has the capacity to provide further investigation for our clients. Utilizing professional geologists (PG’s) as well as Qualified Environmental Professionals (QEP’s), MECC typically prepares a scope of work designed for the client to determine if any sub-surface impacts are present. In addition, Vapor Intrusion (VI) studies to determine if any vapors are present under or within a building are considered a Phase II assessment. Upon completion, MECC outlines the results of the investigation as well as conclusions, recommendations and costs to cure when applicable.
Peer Reviews
Many times, a purchaser or lender will be provided with a prior environmental study on a property (perhaps in conjunction with a past transaction). The MECC staff has many years of experience in reviewing such reports and providing a cursory review to determine if they meet the appropriate standard of care and are prepared with the ASTM recommended shelf life of 180 days (6-months).
Not sure which report is correct for you or your lender? Contact us and we can assist in determining the best product to help evaluate potential environmental concerns.
