The voltility in current
commercial real estate lending has led us to see an increase the in
the requests for "reliance letters" on Phase 1 Environmental Site
Assessments (ESA). So what is a reliance letter?
Although whomever commissions the
Phase 1 Site Assessment should also carefully consider
any limitations a consultant may impose on who may use or rely
on the report and explicitly provide for reliance by
investors, lenders or others, this doesn't always happen. This is
usually discussed...
Read More »
During 2011 August Mack
Environmental was awarded more than 1,500 projects. Many of these
projects were Phase I Environmental Site Assessments. Although this
is not our largest revenue segment, it is our largest service area
by number of projects awarded. Many of these projects are performed
near our offices although we have completed transactional due
diligence work in over 40 states. If you need help, give me a call
at 317.916.3105.
Taken from our newsletter
files:
Vapor intrusion (VI) is one pathway for building occupants to come
in contact with chemicals of concern, occurring when vapors from
contaminated soil and/or groundwater migrate into the indoor air of
overlying structures. The American Society for Testing and
Materials (ASTM) Standard Practice for Assessment of Vapor
Intrusion into Structures on Property Involved in Real Estate
Transactions E 2600-08 has been developed based on an industry
need to address the VI...
Read More »
As I've promoted to a position of management, I find myself
conducting fewer and fewer Environmental Due Diligence Assessments.
For logisitical and fiscal reasons, it only makes sense that
managers and EPs will have less time with boots on the ground in
the field, and more time keeping projects moving, reviewing reports
for content and issues, and communcating with clients.
However, I do find it important at least once a month to keep a
Phase I Environmental Site Assessment (ESA), Modified Phase...
Read More »
Phase 1 Site
Assessments are done for a number of reasons. Below are
common examples of why you would order a Phase 1:
- Purchase of real property (property or personal
property) by a person or entity not previously on title
- Contemplation by a new lender to provide a loan on the subject
real estate
- Partnership buyout or principal redistribution of
ownership
- Application to a public agency for change of use or other
discretionary land use permit
- Existing property owner's desire to understand toxic...
Read More »
Federal Court of Appeals Rules Landowner Not Entitled to
Common Law Indemnification
-by Bill Wagner
Great article on why a Phase 1 Environmental Site Assessment is so
important!!!
by Bill Wagner of Taft Law on the EDR Commonground Blog
"
A
federal Court of Appeals recently held that a landowner who
expressly warranted in his sales contract that his property was not
contaminated and breached the warranty through no fault of his own,
was not entitled under Illinois law to common law...
Read More »
Preparing for my webinar on
"Addressing Vapor Intrusion during a Property Transaction," I ran
across an ASTM article that gave a great basic snapshot of the
four tiers involved in conducting a vapor intrusion assessment. I
have copied an exerpt below, but you can find more information at
www.astm.org.
Anthony J. Buonicore, chair of ASTM Task Group E50.02.06 on Vapor
Intrusion, says E2600 defines good commercial and customary
practice for conducting a vapor intrusion assessment on a...
Read More »
August Mack Environmental has
experts that perform hundreds of Environmental Site
Assessments. We have performed work in 40+ states and much of
this work includes due diligence related to environmental
assessments in real estate transactions. August Mack provides the
commitment to complete these projects in a timely fashion which is
usually of utmost importance.
When a property is undergoing a
transaction (e.g., sale, refinance, foreclosure), a Phase I
Environmental Site Assessment (ESA) is conducted to identify any
potential liabilities associated with past or present use of the
property. The industry standard for performing Phase I ESAs is
based on the American Society for Testing and Materials (ASTM)
Standard E 1527, which specifies industry-accepted minimumrequirements for evaluating the environmental condition of a
property. The Phase I ESA is...
Read More »
Recently, I participated in a site inspection on 102-acres of
vacant, agricultural land for a Phase I Environmental
Site Assessment. Because the land was historically
agricultural, I was looking for signs of illegal dumping of
hazardous waste, evidence of historical homes or buildings on the
site, stressed vegetation or any other issues of environmental
concern. I have learned with every site inspection it is
important to be thorough and inspect every part of the
property because you never...
Read More »
We recently conducted some Phase 1 Environmental Site Assessments
in the western United States, and it's amazing how much further
contaminants can travel through the
porous, sandy subsurface soils out west! It was a
definite reminder that local geology plays a big role in making
determinations about off-site sources of contamination.
August Mack was awarded a
portfolio package of properties to perform Environmental Site
Assessments on with a very tight deadline. August Mack's commitment
to this client and project, and our expertise in this subject
area allowed us to complete the project very quickly and the client
was very happy with our deliverables.
We've seen a lot of requests
lately for asbestos and lead-based-paint (LBP) operations and
maintenance (O&M) plans as a result potential asbestos and LBP
issues identified during a Phase 1 Site Assessment. Although it is
cheaper up front to jump straight to an O&M plan, this will be
a MUCH more costly method in the long run. Without conducting a
formal survey to identify specific asbestos containing
materials and surfaces painted with lead based paint,
owners/operators will have to abide by a...
Read More »
We often perform Phase 1 Environmental Assessments prior to
property foreclosure. The Phase 1 Site Assessments are key in
obtaining the CERCLA liability protections, which are afforded by
following the current ASTM standard for conducting Phase I ESAs.
But the ASTM standard scope of work does not require an assessment
of issues pertaining to asbestos, mold, lead-based paint, etc.
Prior to taking title to a property through foreclosure, it is
prudent to have your consultant address these issues...
Read More »
Most of these environmental
concerns and potential liabilities at a given site are unknown
until a Phase 1 Environmental Site Assessment (ESA) is
performed. Unfortunately, a Phase I ESA is typically driven by a
property transaction and not by an expired lease. That does not
mean an evaluation of your tenant’s hazardous material handling
practices cannot be performed. This can be done quickly and in a
cost-effective manner by having an Environmental Tenant Assessment
performed. This assessment...
Read More »
Phase 1 Site Assessments often identify recognized environmenal
conditions (RECs) that result in Phase 2 Subsurface Investigations.
Sometimes it's easy to predict RECs before the Phase 1 Site
Assessment is ever conducted (i.e. onsite USTs, onsite drycleaner,
adjacent gasoline service station or drycleaner). When this is the
case, encourage your consultant to knock out two birds with one
stone. Phase 1 Site Assessments and Phase 2 Subsurface
Investigations can be conducted in one visit to the...
Read More »
Whether you are a lender, borrower,
purchaser, or seller in a commercial property
transaction, August Mack has the tools and experience you'll need
to ensure proper environmental due diligence has been conducted
prior to property transfer. Whether you are simply looking to
manage risk, or if you are seeking CERCLA liability protection,
August Mack can help! We offer the following standard due diligence
services:
- Desktop Records Review with Risk
Assessment
- Transaction Screen Assessment
- Modified...
Read More »
Powered by Compendium