A Phase I Environmental Site Assessment (ESA) is a process that identifies potential environmental hazards or liabilities associated with a property. It is typically conducted in support of a commercial real estate transaction, but it can also be used for other purposes, such as refinancing a property or assessing environmental risks associated with a new development.
There are several benefits to conducting a Phase I ESA, including:
Identifying potential environmental hazards: A Phase I ESA can help to identify potential environmental hazards on a property before they become a problem. This can help to avoid costly cleanups and remediation efforts in the future.
Reducing risk: A Phase I ESA can help to reduce the risk of environmental liability for property owners, developers, and lenders.
Facilitating real estate transactions: A Phase I ESA is often required by lenders before financing a commercial real estate transaction. Conducting a Phase I ESA early in the transaction process can help to avoid delays and complications.
A Phase I ESA in Denver, Colorado will typically involve the following steps:
Once the records review, site reconnaissance, and interviews are complete, the environmental consultant will prepare a report that summarizes the findings of the ESA. The report will identify any potential recognized environmental conditions (RECs) associated with the property. RECs are defined as 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 into structures on the property or into the ground, groundwater, or surface water of the property.
If RECs are identified, the environmental professional may recommend that a Phase II ESA be conducted to further investigate the potential hazards and develop recommendations for remediation.
Here are some of the most common environmental hazards that may be investigated during a Phase I ESA in Denver, Colorado:
If you are considering buying or selling a property in Denver, Colorado, it is important to have a Phase I ESA conducted to identify and address any potential environmental risks.
