Environmental Due Diligence

To protect against potential litigation and remediation costs associated with environmental issues, financial institutions and corporations require environmental information before making a financial commitment. Due diligence is the investor’s process of investigating the details of a potential investment, such as examining operations and maintenance procedures, and verifying material facts.

In terms of real estate, Environmental Site Assessments (ESAs, often referred to as Phase I and Phase II ESAs) are the most common tools for evaluating site history and possible environmental liability. The Phase I ESA is an essential part of any commercial or industrial real estate transaction. In general, these assessments are conducted to provide an independent professional opinion regarding the environmental conditions or liabilities, if any, associated with a property.

Mr. Hackett of BMS has designed, managed, and collected data for due diligence efforts on projects that have included large portfolios of properties in addition to individual commercial and industrial parcels. Our experience in Phase I ESAs dates back to before the creation of the ASTM Standard. Having performed hundreds of Phase I ESAs, BMS can offer our clients an expert perspective on every property type.

BMS’ due diligence management services include:

  • ASTM Standard Practice E 1527-13 (meets EPA’s AAI requirements)
  • Pre-Lease Phase I ESA
  • Phase I ESA for Foreclosure
  • USDA Rural Development Due Diligence
  • Vapor Intrusion/ Vapor Encroachment Assessment
  • Due Diligence in support of Mergers and Acquisitions

When recognized environmental conditions are identified during a Phase I Environmental Site Assessment, Brownfield Management Services can investigate further to quantify and resolve environmental issues. We can tailor a Phase II ESA to determine whether contamination exists – and if it does, define the type and extent of contamination. In such cases, BMS LLC will provide timetables and cost estimates for addressing environmental liabilities, allowing transactions to move forward quickly. 

ASTM does have a standard for conducting a Phase II ESA, but the types of investigation can vary widely.

Depending upon the identified environmental issue, the type of investigations can include asbestos sampling, lead paint sampling, soil and soil gas sampling, or groundwater sampling. BMS can mobilize drill rigs, Geo Probes, hand augers or whatever other technology may be appropriate to get the samples to properly characterize a site. BMS experience with geophysical services can allow the options to identify subsurface targets prior to drilling, allowing more cost-effective use of resources.