Phase 1 Environmental Assessments
Phase 1 Environmental price quote
Fast turnaround time!
Case Studies
Client Testimonials
A Definitive Phase 1 Environmental Resource
Phase I Environmental Site Assessment (ESA) reports are prepared for real estate and business transactions such as: land purchases, building purchases, leases, business purchases, new residential developments and bank loans. Our Phase 1 ESA reports are in compliance with the new American Society for Testing and Materials (ASTM) Standard E-1527-21. This ASTM standard adheres to the Environmental Protection Agency All Appropriate Inquiries Rule, codified into the federal regulations by the EPA (40 CFR Part 312). This type of report is the one typically required by lenders and is highly recommended prior to purchasing commercial or industrial real estate, or prior to starting new residential developments.
The main purpose of a Phase 1 Environmental report is to make sure you know the true value of the property and to assure there is no soil or groundwater contamination from previous use or from neighboring sites that may be impacting the property's value or limiting its use due to regulatory-mandated cleanup, or in some cases, resulting in civil liability. This tort liability can be caused by human health exposure and offsite migration with devaluation of neighboring properties.
What is the purpose of a Phase 1 Environmental report?
The purpose is to determine if "Recognized Environmental Conditions" exist at a subject property. The following definition of Recognized Environmental Conditions (RECs) is from the ASTM Standard.
In defining a standard of good commercial and customary practice for conducting an environmental site assessment of a parcel of property, the goal of the processes established by this practice is to identify recognized environmental conditions. The term recognized environmental conditions per the ASTM Standard means the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release, or a material threat of a release of any hazardous substances or petroleum products into structures on the property or into the ground, ground water, or surface water of the property.
The term includes hazardous substances or petroleum products even under conditions in compliance with laws. The term is not intended to include de minimis conditions that generally do not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies. Conditions determined to be de minimis are not recognized environmental conditions. The new ASTM Standard E-1527-21 define RECs as: (1) the presence of hazardous substances or petroleum products in, on or at the subject property due to a release to the environment; (2) the likely presence of hazardous substances or petroleum products in, on or at the subject property due to a release or likely release to the environment; or (3) the presence of hazardous substances or petroleum products in, on or at the subject property under conditions that pose a material threat of a future release to the environment.
Client Testimonials
Case Studies
How much does a Phase 1 Environmental Assessment cost?
What factors affect the price of Phase 1 Environmental Assessments?
A property that has been developed will require more work hours to determine the previous uses. The size of the property determines the time needed to do the site visit and affects the cost of the ESA. AAI has completed so many projects that we understand the actual costs that are required to complete environmental assessments properly.
CLIENT TESTIMONIALS
Mark Moore (First Command Bank), Senior Loan Officer: “We have been a client of AAI for almost 10 years. The company is very responsive to the bank’s inquiries and has provided excellent advice and recommendations. I would recommend AAI as a strategic vendor to any financial institution.”
Ben Freeland (Freeland Management), Real Estate Owner/Developer: “We have used AAI for several projects over the years and appreciate the professional and quality service that we have received. We highly recommend them.”
Lisa Johnson (Evangeline Christian Credit Union), Collateral Analyst: "We have been using AAI for many years now and I would highly recommend them! Easy ordering process, quality reports, very reasonable prices and great customer service!"
Pennie Mills (Fidelity Bank), Vice President, Appraisal Manager: "Relying on outside vendors can be a nerve-racking experience and can make or break a deal. We recently financed a purchase transaction for a borrower with a $50,000 due diligence fee on the line and a quickly approaching deadline. We hired AAI to do a Phase 1 at the last minute and they ran with it from there. They handled the assignment with a sense of urgency and kept me in the loop from beginning to end. Thanks to AAI we were able to close the loan on time and ultimately earn the trust of our client."
Al Sweet (Sweet Development Corp.), Real Estate Developer: "I have been a client for over 9 years and can give you my highest recommendation."
Holly Riece (WFI), Project Manager: "I would recommend them to anyone...as long as you’re looking for fabulous customer service, high-quality reports and a friendly atmosphere at an affordable price."
Jennifer Jones (Cingular), Cell Tower Analyst: “I wanted to take this opportunity to let you know that you and your team are providing some excellent reports for our review. When I see reports from you, I am confident that the information you provide is accurate."
scroll down to review over 30 typical AAI projects
18 truck maintenance facilities in 16 states throughout the U.S. The reports were prepared as exit studies at the end of long-term business leases, in order to establish environmental conditions at the time of exit from the subject properties.
17,400 acres of land for proposed windmill farm in rural Kansas, as part of the initial planning and lease baseline study. The report included review of 221 active and inactive oil and gas wells and several agricultural parcels.
14 industrial equipment distribution properties in 14 states throughout the U.S. completed in 4 weeks, as part of a business purchase transaction. Properties had aboveground fuel storage tanks within secondary containment, with no evidence of leaking with good housekeeping.
1,700-acre ski resort in the Sierra Nevada Mountains in California. Report was conducted on a rush-basis as part of a real estate and business purchase transaction. The project was completed in 10 calendar days.
8-acre former chemical refinery in Louisiana as part of a business and real estate transaction. The ESA and Site Characterization reports were completed in 7 weeks. The project was the due diligence aspect of the transaction that was performed to help determine approximate cleanup costs for potential subsurface contamination.
6 auto dealerships in 6 cities in and around Nashville, Tennessee, as part of a business and real estate transaction. The reports were completed on a rush basis in 10 calendar days. The 3 subsequent Phase 2 Environmental Studies were completed in less than 2 weeks.
2 large Class II Landfills in middle Tennessee, as part of a business and real estate transaction. The reports also included a subsequent Phase II ESA on an associated smelter facility, along with a total of 7 industrial-zoned properties.
Phase 1 Environmental report for a commercial real estate loan at an auto repair and used car property in Los Angeles, CA
Due diligence Phase 1 Environmental Assessment for auto sales property in Orlando, Florida.
Phase I Environmental Site Assessment at medical office building located in Dallas, TX.
Phase 1 Environmental report at multi-family property located in Denver, CO
AAI also has extensive experience throughout the United States conducting due diligence studies, site characterizations and remediation of oilfield properties. We are considered to be one of the leading oilfield environmental assessment companies in the country.
Phase 1 Environmental Requirements:
Having provided due diligence services on over a billion dollars in real estate and business transactions, AAI has gained insightful judgment in providing our clients with our excellent services. Our extensive experience helps our clients make informed decisions regarding existing or potential environmental liabilities, when they are purchasing or leasing a property or business.
21 multi-family properties in Florida for the Orlando Housing Authority in less than 3 weeks. The work was completed per the Housing Authority requirements, including leading pre-bid site walk for asbestos and lead-based paint bidding.
11 lumber yard properties throughout Colorado, including in Denver, as part of business and real estate sale transaction. The ESAs were completed on a rush basis in less than 2 weeks.
140-acre industrial plant property in Nashville, Tennessee, as part of a real estate transaction and lender due diligence. The report was conducted while an ongoing groundwater investigation was being performed and was completed in less than 3 weeks.
8 gas stations located throughout North Carolina for pre-auction due diligence for the Internal Revenue Service. The ESAs were completed in less than 3 weeks. Work included additional consultations with buyers at the time of the IRS auction.
Public charter school in Los Angeles as due diligence for a loan and grant, engaged by law firm. The survey determined the need for a subsequent soil and soil gas sampling, due to being located within the methane gas zone, which was completed within a total of 5 weeks.
28k SF inactive biofuels plant near Seattle, Washington as the due diligence environmental report for a real estate purchase. The report was completed in less than 3 weeks.
80k SF former aerospace facility in Los Angeles, California for lender due diligence requirements. The study was completed in less than 3 weeks. A subsequent subsurface investigation was performed in order to screen the soil for potential contaminants.
What is performed in a Phase 1 Environmental Assessment by AAI:
- historical building records review
- historical aerial photograph review
- historical Sanborn Fire Insurance Map review
- historical city directories review
- historical topo map review
- environmental agency file reviews
- review groundwater conditions
- government environmental database review
- inspection of property
- interview neighbors at abandoned properties
- a detailed professional site plan
- digital photographs with descriptions
- owner/occupant questionnaire
- review of previous environmental reports
- inclusion of the Statement of Qualifications
- conclusions
- recommendations
- 3rd-party reliance letter, if needed, with proof of insurance.
15 auto repair properties located in 14 states throughout the U.S. The ESAs were conducted as baseline studies for long-term business leases for new tenants.
2.25-acre federal courthouse property located in Louisiana. The due diligence study discovered a historical underground storage tank in the building records as part of a real estate transaction. A subsequent Site Characterization of soil and shallow groundwater was completed in order to determine potential cleanup costs and vapor intrusion in the subject building.
What are common property uses or types of businesses where potential issues are found in Phase 1 Environmental Assessments?
Common uses where Recognized Environmental Conditions (RECs) are found include:-
Service stations
-
Manufacturing facilities
-
Dry cleaners
-
Industrial sites
-
Longterm auto repair
-
Oil and gas well drilling and production
-
Former agricultural crops
-
Refineries
-
Underground storage tanks
-
Other sites with releases of chemicals into the subsurface.
These uses don't necessarily always create Recognized Environmental Conditions, as it depends on how long they have been in operation, secondary containments, housekeeping, proper monitoring, and other factors. A general rule of thumb is if these types of facilities have been in operation for long periods of times, the more likely will RECs be found during a real estate transaction.
When a REC is found, it will typically trigger a Phase 2 Study, which requires soil and/or groundwater sampling to determine if there is a significant environmental liability in the subsurface. We have completed thousands of projects in Tennessee, Texas, California, Florida, Georgia, Colorado, Alabama and Ohio and other states. We regularly complete reports on time and within budget.
How often are Recognized Environmental Condtions (RECs) found on properties?
In AAI's vast experience in conducting Phase 1 Environmental Assessment reports, we have found that less than 10% of properties indicate RECs during the performance of Phase 1 Environmental reports. This is where expertise that can only be gained through experience is vital when drawing the correct conclusions and recommendations, based on actual significant risks of an environmental liability. In our experience in reviewing a large number of these reports prepared by other companies, especially the many recently formed new companies, the lack of experience or need to create additional work, influences their decision to identify conditions as RECs. AAI's knowledge allows us to take all factors into consideration, such as: actual groundwater impact risk, regulatory environment, actual potential health risk, lack of liabilities at similar properties, actual liability would be minimal, and do the conditions qualify as "de minimis." This type of experience and ability to properly analyze conditions separates the wheat from the chaff, when it comes to competent environmental consultants. 1.18-acre active dry cleaners property in Atlanta, Georgia with previous service station. NFA letter was received previously for the gas station, so no REC was identified for that potential issue. The dry cleaners had been using and storing perchloroethylene (PCE), also known as, tetrachloroethylene, or by its common name Perc. Based on the long-term use as a dry cleaner, this was considered to be a Recognized Environmental Condition (REC).
80-acre abandoned limestone quarry near Nashville, formerly used for construction of interstate highways in Tennessee during the 1950s and 60s. The ESA was conducted as part of a real estate transaction and bank loan requirement.
34.51-acre mobile home park and community property in Dallas, Texas with historic gas station. NFA letter was received previously for the gas station, so no REC was identified.
1,760 SF auto repair property in San Francisco, California. The long-term use for auto repair, along with heavy staining and pooling of liquids, as well as, the potential for hydraulic fluids in underground hoists with the potential for containing polychlorinated biphenyls (PCBs), due to the age of the hoists, were considered to be RECs at the subject property.
1-acre active gas station in San Diego, California. This service station previously had a Leaking Underground Storage Tank (LUST) case and the site underwent remediation and eventually received a NFA letter from the San Diego County Environmental Health department, as well as, installation of double-hulled fiberglass underground storage tanks with the required leak detection system. The service station also maintained the system with good records. Based on these conditions, no RECs were found.
25-acre active prep school in Brooklyn, NY. Engaged by law firm for a business transaction. Report was completed in 2 weeks. Site visit was performed during active school year and included school buildings, sports facilities, maintenance areas, cafeteria and playgrounds.
Phase 1 Environmental Assessment of apartments for a real estate tranasction for a property in Fort Worth, Texas
Phase 1 Environmental Assessment report at power plant in Atlanta, GA
SBA Loan Phase 1 Environmental reports for due diligence
AAI also has extensive experience in performing Environmental Due Diligence reports for Small Business Administration (SBA) loans for a variety of properties, including: gas stations, retail lefts, commercial properties and industrial properties. AAI includes the reliance letter required by the SBA for free. The SBA's Standard Operating Procedures (SOP 50-10(5)) for 7A and 504 loans that went into effect in August of 2008 are essential for approval of your loan application.
These procedures have specific standards that must be adhered to for certain industries with potential for environmental liabilities. When applying for a commercial mortgage, hiring a consultant with experience in conducting these environmental reports is important for your new or existing business venture.
Environmental Screen Desktop Review Report - a lower cost alternative
With our team being located in most major cities in the United States, we are able to complete our services economically with competitive prices and fast! We have learned how over the years to reduce costs for our clients. We do carry $1 million per occurrence and $2 million aggregate Professional Liability/Errors and Omissions insurance, as well as, $1 million in auto insurance, so you are protected when you hire AAI to conduct your report and visit your property.
A common question we get is: Who pays for Phase 1 Environmental Assessments?
Answer: It varies, but most of the time, the buyer will pay in order to meet the lender requirements. However, sellers or property owners will often pay when placing their property on the market. Sometimes the buyer and seller will split the cost, as well.
AAI Environmental Site Assessments
What is the shelf life of a Phase 1 Environmental report?
According to the ASTM Standard, the shelf life of a report is specified as one year with some updates required after 180 days. Most lenders follow this timeframe and that is typically a good practice and answer to the question: For how long is an ESA good?
From our experience and for understandable and practical reasons, these reports are commonly used beyond the ASTM shelf life timeframe, especially when considering lower-risk properties in lower-risk areas. The answer to this question should be considered on a case-by-case basis, and will often be determined by the requirements of your lender.
Our company strives to provide the most competitive prices in the industry due to our vast experience and team of professionals that do ESA work daily. We have streamlined our process to reduce costs while maintaining standards needed to identify any significant environmental issues and to be accepted by lenders. Due to this experience and the well-oiled machine of our process, we can typically beat any legitimate price.
What is the latest Phase 1 Environmental standard?
The lastest new standard for Phase 1 Environmental Assessment reports is E-1527-21 that went into effect in November of 2021.
Is there a difference between the terms Phase 1 Environmental Assessments and Phase 1 Environmental Site Assessments?
What are Environmental Site Assessments?
What does Phase 3 Environmental mean?
Who can conduct Phase 1 Environmental Assessments?
The ASTM Standard is ASTM Standard E-1527-21:
Defines the term Environmental Professional (EP) and establishes qualifications for those performing ESAs (hold a current Professional Engineer or Professional Geologist license or registration from a state, tribe, or U.S. territory (or the Commonwealth of Puerto Rico) and have the equivalent of three years of full-time relevant experience OR 4 year Baccalaureate degree in any engineering or science field with five years of full-time relevant experience OR ten years of full-time relevant experience).
All of AAI's reports are managed and certified by a licensed Professional Geologist. Additionally, all of our team members across the country are educated and trained geologists, engineers and environmental scientists.
7-acre commercial warehouse storage buildings in Huntsville, Alabama. The subject property had been developed since 1960 and was being converted to an indoor mini-storage facility. The report was completed in 9 calendar days.
4.14-acre auto dealership in New Orleans, Louisiana. The subject property had been completely submersed in the floodwaters from Hurricane Katrina for over one week and long-term auto repair activities had previously occurred at the subject property, including underground hoists and tanks. These factors were considered to be RECs.
2.4-acre county government institution building near Cincinnati, Ohio used for offices and maintenance. A previous LUST case and a separate diesel spill both had received NFA letters from the local oversight agency, and no RECs were found.
Phase 1 Environmental News
March 18, 2024 - 8 Best Commercial Real Estate Loans for 2024. Note: These loans typically require Phase 1 Environmental AssessmentsSeptember 11, 2023 - Public Comment Sought On Cleanup Plan For Portion Of Former Smelter Site
February 13, 2023 - AAI Environmental Corp. Conducts Phase 1 Environmental Reports Per New ASTM Standard E-1527-21, as EPA Published Final Rule Adopting the Standard Practice as of 2/13/23
January 6, 2023 - TDEC Announces Additional $125.9 Million in Water Infrastructure Investments
Are Phase I Environmental Site Assessments and Phase 1 Environmental Assessment the same reports as Phase 1 Environmental?
Yes, these terms are used interchangeably. Phase 1 Environment is the abbreviated version that is most commonly used to describe the full name of this type of due diligence report Phase I Environmental Site Assessment, which is described in ASTM Standard E-15227-21.Atlanta, Dallas, Denver, Fort Worth, Orlando, Houston, Los Angeles phase 1 environmental assessment due diligence reports
Phase 1 Environmental Assessment video
Informative video on Phase 1 Environmental Assessments
Tennessee Phase 1 Environmental in Nashville, Memphis, Chattanooga, Knoxville and Jackson by TN Professional Geologists
AAI staffs licensed TN Professional Geologists with extensive experience throughout the state of Tennessee who will conduct your Phase 1 Environmental reports.
© AAI Environmental. All rights reserved. Nashville, Tennessee