Customized Phase 1 ESA Reports: Phase Associates
New Jersey has 114 sites with hazardous waste on the EPA National Priorities List. However, the total number of hazardous waste cleanup sites is much higher.
If you plan to buy commercial property, you could unknowingly purchase a contaminated site. But not if you get a Phase 1 ESA report first.
What is a Phase 1 ESA report? Find out here and learn how it can help you make a more informed real estate purchase.
What Is a Phase 1 ESA Report?
A Phase 1 Environmental Site Assessment (ESA) report summarizes the findings of a Phase 1 ESA. The ESA investigates a property’s current and former uses. In addition, it looks for recognized environmental conditions that could affect the property’s value.
Recognized environmental conditions include the presence of substances including:
- Petroleum products
- Hazardous substances like lead, mercury, and volatile organic compounds
A Phase 1 ESA will tell you whether a site has current or historical problems with hazardous materials.
What Triggers a Phase 1 ESA?
A commercial real estate transaction can trigger the need for a Phase 1 ESA. In addition, lenders usually require an ESA as part of due diligence.
The federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) requires due diligence before certain commercial real estate transactions. The property owner must complete All Appropriate Inquiries (AAI). Otherwise, the landowner would be financially and legally responsible for any environmental problems on the property.
You may need a Phase 1 ESA before acquiring, developing, or refinancing commercial property. The ESA helps avoid potential environmental risks and liabilities.
Without an ESA, you might purchase a property and discover contamination later. In addition, you could be responsible for high cleanup costs.
Various real estate transactions can trigger a Phase 1 ESA report, including:
- The property where industrial or commercial operators used regulated hazardous materials
- Property near current industrial or commercial operations
- Property used for oil or gas drilling
- Property with known environmental liens
Phase 1 ESA reports help to ensure buyers and sellers have the information they need before completing the transaction.
What Happens During a Phase 1 ESA?
A Phase 1 ESA must follow ASTM standard E1527-13 or E1527-21. In addition, the professionals conducting the assessment must qualify as Environmental Professionals under the ASTM standard. The process gathers information from several sources.
Records and Historical Sources
The first step in a Phase 1 ESA is looking at records and historical sources. These sources can include:
- Historical aerial photographs
- Historical city directories
- Historical topographic maps
- Historical Sanborn (fire insurance) maps
- Building department records
- Property tax records
- Zoning records
The environmental professional must consult these documents for the subject property and all adjoining properties.
Site Walkthrough
The next step is visiting the site. The environmental professional will visually examine the entire property and investigate any areas of concern.
They will take photographs for the ESA report.
Interviews
Ideally, a Phase I ESA includes interviews with current and former owners and operators of the site. In addition, discussions with state and local regulators can also provide important information.
Written Report
Finally, the environmental professional compiles all the information into the Phase I ESA report. The report will recommend any next steps. For example, if the Phase 1 assessment found environmental concerns, Phase 2 site assessment reports may be necessary.
Where to Find Phase 1 Environmental Site Assessment Services
What is a Phase 1 ESA report? Now you know what it is and its importance. You also understand why ESA reports are essential and what they include.
The next step is to find the correct Phase 1 Environmental Site Assessment services.
PHASE Associates offers assessment services that comply with the most recent ASTM Phase 1 ESA standards. Our investigations also follow the AAI rule. We will customize your report to meet your and your lender’s needs.
Contact us today to discuss your site assessment requirements.
We provide ESA reports to NJ, PA, NY, DE, CT, GA, VA and MD.