You are here: Home » Resources » Articles » Environmental Insurance for CMBS Deals – What You Need to Know

October 23, 2018

Environmental Insurance for CMBS Deals – What You Need to Know

By Charles Tallinger, LEED AP

OPINION OF PROBABLE COST (OPC) REPORTS AN ESSENTIAL TOOL

The environmental due diligence required for loans that will be securitized into commercial mortgage backed securities (CMBS) does not differ much from that required by most other types of lenders. This consists of a Phase I Environmental Site Assessment (ESA) that meets the requirements of the American Society for Testing and Materials (“ASTM”) and is conducted by a reputable environmental consultant. In most cases the report must have been conducted within 12 months of loan origination.

In the last two years we have seen a significant increase in the number of deals where lenders and borrowers are forgoing a Phase II and going right to either the first bullet point (a 125% – 150% hold back of the cost to cure) or to the third bullet point (environmental insurance).

To read the rest of this blog on GlobeSt, click here.

About the Authors

Charles Tallinger, LEED AP

Relationship Manager

Charles Tallinger joined Partner Engineering and Science, Inc. as a Principal in 2010 and has over 21 years of experience in the commercial real estate due diligence industry. He began his career as a project manager focusing on Phase II subsurface investigations and Phase III remediation projects. He has consulted on over 10,000 real estate transactions throughout his career. His core focus at Partner is to provide real estate lenders, investors, and equity owners with the advice they need to quantify hard asset risk (Environmental/Engineering/Construction/Seismic) in order for them to make informed real estate business decisions. Based in New York City, Mr. Tallinger is an industry leader with particular expertise in capital market-related transactions.

Get in Touch

Charles Tallinger, LEED AP
(646) 794-5975
[email protected]

Other Resources You Might Like

Let us be your Partner

Learn how we can support your next project or share insights via our newsletter.

Contact Us Subscribe to Our Newsletter

Partner is the leading provider of engineering, environmental, construction, energy, and valuation consulting for the commercial real estate industry. We help our clients manage risk, make smart investments, optimize asset performance, and win at their real estate investment strategies.

Follow Us

Our Family of Companies