No matter their lender or property owner needs, Esa Real Estate’s due diligence services provide peace of mind in both instances. Their services reduce risk from environmental contamination from past property uses which could otherwise arise during purchase/sale negotiations – helping buyers avoid lawsuits and potential liabilities as part of this crucial step in purchasing or selling real estate.
An environmental site assessment (ESA) serves to identify any current or historical contamination on a property and evaluate whether it poses any threats to human health or the environment. ESAs are conducted by environmental consultants as standard practice when purchasing commercial real estate; often times banks require this practice before financing such deals.
Even small properties used for retail, office space, warehouse storage or residential purposes often require a Phase 1 Environmental Site Assessment. While this does not necessarily indicate unsuitability for development, such factors as past industrial activities nearby facilities and hazardous chemicals and pollutants could necessitate one.
An Environmental Site Assessment (ESA) involves extensive research and observation of the property. An environmental professional (EP) will review any previous records pertaining to it, conduct interviews with current and former tenants or site operators, inspect adjacent properties for signs of contamination and take soil samples from various areas on site before conducting testing for various contaminants.
Once an EP has gathered all the necessary information and observations, they will generate a report outlining their findings. This report should include a list of identified concerns as well as recommendations for further testing. Depending on the results of a Phase 1 ESA, further investigation may be necessary – usually comprising sampling soil, groundwater, building materials, debris or any other source – before testing them against regulatory standards to compare results against.
Based on the findings of a Phase 2 ESA, a consultant can determine what, if any, remediation measures are necessary for your property. Cost and timeline will depend on type and severity of contaminants discovered on site.
As another major consideration when purchasing property is whether there are endangered or threatened species present on it. This could become particularly pertinent if the property serves as critical habitat for listed species under the Endangered Species Act – any disruption or impacting of such critical habitat requires prior approval by the Federal government before development can proceed.
While it may not be possible to fully eliminate all environmental risks, conducting an environmental site assessment (ESA) can significantly lower them. Therefore, all prospective real estate buyers, particularly those requiring financing options, should understand the significance of an ESA in protecting themselves from potentially costly remediation efforts and time consuming remediation efforts.