Skip to main content

Environmental Risk In CMBS 2.0: Know Your Options

When a Phase 1 Environmental report identifies an environmental concern...

...sometimes the recommendation is a Phase 2 Subsurface Investigation but that is not the only option. For commercial mortgage backed securities (CMBS) lenders and borrowers alike, the environmental due diligence process is often little more than a formality. The best case scenario is that the Phase 1 Environmental Site Assessment (Phase 1 ESA) is completed, no environmental issues or recognized environmental conditions are identified, and the Phase I becomes just another document in the underwriting file. The other potential outcome is one that elevates the environmental due diligence process from file-filler to potential deal-killer.

Continue reading the GlobeSt blog here.