Phase I ESA (ASTM 1527-05 standard)
A Phase I Environmental Site Assessment is the gold standard for evaluating the environmental liability associated with a real estate asset. SoCo is truly an expert at the implementation of the ASTM 1527-2005 Standard. Our Phase I’s are done by Environmental Professionals who meet the requirements of the EPA’s AAI Standard. SoCo’s experience in Phase I’s dates back to before the creation of the ASTM Standards. Having performed Phase I’s on thousands of properties, we offer our clients a perspective on every property type.
Small Business Administration (SBA) Environmental Due Diligence
In October of 2011, the SBA updated its Environmental Investigation requirements for Lender Development Company loans (the 50 10 5(D) Standard Operating Procedures). The SBA has recently clarified terminology and definitions and amended certain environmental due diligence requirements. Some of the more significant changes alter the environmental investigation requirements for two facility types:
“Car Wash Only” facilities are now required to have at least an Environmental Transaction Screen. This loosens the environmental investigation requirements a bit from previously having to start at a Phase I Environmental Site Assessment, due to the generally lower-risk type of these properties (as long as there are not other automotive care operations at the site such as oil changing or fueling).
Gas Stations / Commercial Fueling Facilities: During the required Phase I ESA for gas stations, environmental consultants are now required to determine the compliance of the gas station with state tank and equipment tightness testing requirements, rather than requiring that equipment testing was done within 12 months prior to the environmental investigation. This change was made because not all states require equipment testing every year. The SBA also expanded the Gas Station environmental investigation requirements to include “commercial fueling facilities”, to eliminate any uncertainty.
The remainder of the changes does not significantly alter the environmental due diligence requirements, but include clarifications on the definition of “multi-unit building”, what constitutes a special use facility, the Environmental Questionnaire, who may conduct an SBA Phase I Environmental Site Assessment, and who can indemnify.
SoCo can help you with SBA Environmental Investigation requirements. SoCo can provide you with the following services:
- Phase I ESA (ASTM 1527-05 standard)
- Transaction Screens (ASTM1528-06 standard)
- Records Search with Risk Assessment (RSRA) and Reliance Letters (RLs)
Phase II ESA
SoCo is experienced in designing and completing Phase II Environmental Site Assessments in accordance with the ASTM Standards, and State/Federal requirements to meet client needs and budgets. Prior to implementing a Phase II ESA work scope, SoCo takes the time to understand the goals of the client and project. The Phase II scope of work is then designed to meet the scrutiny of the various parties involved including lenders, regulators, attorneys, and peers.
Vapor Intrusion has emerged as a significant environmental issue in recent years. On June 14, 2010, ASTM published E 2600-10, Standard Guide for Vapor Encroachment Screening on Property Involved in Real Estate Transactions. SoCo performs vapor intrusion screening according to ASTM E 2600-10 at the request of the client and includes the report as part of an AAI-compliant Phase I Environmental Site Assessment. A number of institutions such as HUD already require their consultants to consider vapor encroachment onto the property in their Phase I investigations.
SoCo’s Brownfield redevelopment and management services consider strategies and tools for evaluation of project critical issues, such as market trends, demographics, land use options, infrastructures and construction, investment requirements, government incentives, available financing, and expected returns. Working with experienced real estate, legal and development professionals, SoCo’s Brownfield redevelopment and management team can successfully complete all aspects of Brownfield redevelopment projects.