Due Diligence

Environmental due diligence is an essential process with any major commercial real estate transaction, including the sale, purchase, lease or refinancing of a property or industrial or oil and gas acquisition. ESE Partners will utilize industry standards and environmental expertise to identify potential environmental liabilities within a property, such as soil and groundwater contamination. Many lending institutions require some form of environmental due diligence be performed prior to financing. Various levels of due diligence can be performed, the most common being a Phase I and II Environmental Site Assessment. Others include Transaction Screens, Record Search Risk Assessments (RSRAs), and desktop reviews.

Phase I Environmental Site Assessments (ESAs)

ESE provides lender approved ASTM-E1527-13 and similar Phase I Environmental Site Assessments and related transaction screens which are often required when a property is externally financed. The purpose of a Phase I ESA is to identify Recognized Environmental Conditions (RECs) associated with a parcel of commercial real estate with respect to the range of contamination within the scope of CERCLA and petroleum products.

Phase II Environmental Site Assessments (ESAs)

A Phase II Environmental Site Assessment is often warranted when a Phase I ESA identifies a Recognized Environmental Condition, requiring further investigation. The purpose of a Phase II ESA is to confirm or deny the presence of chemicals of concern in the environment.  The Phase II ESA involves the sampling and laboratory analysis of multiple medias, often including soil, soil gas, and groundwater.  The analytical testing results are compared to regulatory limits and criteria established by the applicable government agency.  Further remedial action may be warranted based on the results of the Phase II ESA.

Property Condition Assessments (PCAs)

Costs for replacement or repair of major systems, components or equipment at a property can blindside buyers. ESE provides Property Condition Assessments (PCAs) on a variety of commercial structures to educate a buyer or lender with valuable insight regarding costs to remedy physical deficiencies. PCAs are conducted in accordance with the ASTM E 2018-15 guidance document and are often conducted concurrently with a Phase I ESA.

Additional Services

Due Diligence Projects

We invite you to explore our project galleries to see example case studies of our recent work.

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