In the United States, a Phase I Environmental Site Assessment is a site investigation report prepared for a real estate holding that identifies potential or existing environmental contamination liabilities. EAS, Inc additionally would suggest to our clients considering bundling an environmental site assessment and a property condition assessment. The analysis, often called an ESA, typically addresses both the underlying land as well as physical improvements to the property. A proportion of contaminated sites are “brownfield sites.” In severe cases, brownfield sites may be added to the National Priorities List where they will be subject to the U.S. Environmental Protection Agency’s Superfund program.
A Phase 1 (or ESA) examines environmental risks past, present and future with regard to a commercial property and typically occur during a change in ownership or refinancing of commercial property during the due diligence period. Ultimately, reasons to perform a Phase 1 environmental site assessment are to protect the value of the collateral for a loan for the buyer and lender. Environmental issues can be very expensive- as you don’t wish for property value to become negative due to environmental impacts from previous owners or neighboring businesses or want a property you can’t resell without mitigating potential environmental contamination. If a Phase 1 is not performed, the liability of any environmental issues are transferred to the new owner of the property- which is bad news for banks, lenders, developers and investors.
We provide Phase 1 Environmental Assessments within five to ten business days and have not missed a deadline in 27 years of business! We are ready to work with you and provide you with the best.
The actual sampling of soil, air, groundwater and/or building materials is typically not conducted during a Phase I ESA. The Phase I ESA is generally considered the first step in the process of environmental due diligence. Standards for performing a Phase I site assessment have been promulgated by the US EPA and are based in part on ASTM in Standard E1527-13 and most recently ASTM Standard E1527-21. Our reports are approved by all banks and the U.S. Small Business Administration. We can complete the U.S. SBA requirements with a reliance letter, free of charge.
If a site is considered contaminated, a Phase II environmental site assessment may be conducted, ASTM test E1903, a more detailed investigation involving chemical analysis for hazardous substances and/or petroleum hydrocarbons.
SBA Phase I Environmental Site Assessment means all properties purchased through the United States Small Business Administration‘s 504 Fixed Asset Financing Program require specific and often higher due diligence requirements than regular Real Estate transactions. Due diligence requirements are determined according to the NAICS codes associated with the prior business use of the property. There are 58 specific NAICS codes that require Phase I Investigations. These include, but are not limited to: Funeral Homes, Dry Cleaners, and Gas stations.
EAS is ASTM compliant