Dec 07
I have been asked a lot recently about Phase 1s. I realize there is a lot of confusion about them. Let me try to clear the air a bit so to speak.In its simplest terms a Phase 1 is a site visit and document review of the surrounding area to determine if further investigation is advised from an environmental stand point.A Phase 1 inspection is a review of local governmental documents regarding the site to determine what the past usage of the site was along with extensive document review of the surrounding area. It also entails a very involved and detailed site visit by a qualified professional. In addition there is data base information that is gathered and reviewed of the surrounding vicinity to determine if there is a potential risk from an environmental stand point in the immediate area.

These potential risks can be anything from a past gas station on or near the site that might have contaminated the ground water to there having been a dry cleaner on the site that might have spilled chemicals into the ground. There could have been past dumping on the site or an auto repair that did not handle the oils properly, lead in the paint, asbestos, and on and on.

I think you get the picture. The focus of a Phase 1 inspection is environmental not the structure or any of the systems of the building. The systems are the focus of the general visual inspection. They are two separate areas of responsibility. Both are important. Many lending institutions require a Phase 1 clearance before they will lend money.

A Phase 1 inspection is an integral part to many commercial and industrial real estate transactions. One bank that I know of will not lend for any commercial or industrial transaction on real estate over 1.5 million dollars without a Phase I. We are hard pressed to buy anything in the Los Angeles area in the commercial or industrial real estate area for under that.

There are two other aspects to a Phase 1 that may come into play depending on what is found during the Phase 1 inspection and research. These are Phase 2 and Phase 3. As you might assume Phase 2 and Phase 3 are the more involved aspects of the environmental field. Phase 2 involves testing of the site such as coring into the earth and taking samples of the soil along with testing it to determine what is in the soil. The information during a Phase 2 will determine if the site warrants further investigation and/or to be remediated. If remediation is needed this is Phase 3.

Each environmental Phase whether it is Phase 1, 2 or 3, has a very involved set of industry standard requirements. Each requires highly trained professionals to do properly. This is not an area to skimp on. Have a reliable company with vast experience do your Phase 1 inspection. Getting the cheapest deal for something this important I feel could easily be fiscally irresponsible. A properly done Phase 1 inspection really is for everyones protection not just the buyer.

The current rate for a professionally done standard Phase 1 inspection is approx. $1800.00 - $2000.00. Just so you understand to obtain the above mentioned documents is hundreds of dollars by itself. The report ends up usually being hundreds of pages. This price does not usually change unless the site gets very large and very involved. Currently the price stated will usually handle over 90% of all commercial real estate transactions.

I hope this clears the air a bit on what a Phase 1 inspection is.

About the Author

Bob Pace has been a Certified Inspector since 1994 and a licensed contractor for nearly 4o years. For more information about commercial real estate inspections visit his website at http://www.commercialrealestateinspectors.com to find out how he can help with your real estate inspection.

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May 04

The purpose of a Phase I ESA is to identify, to the extent feasible, recognized environmental concerns in connection with the property. This assessment included a site reconnaissance as well as research and interviews with representatives of the public, property management, and regulatory agencies.

From Wikipedia:

A Phase I Environmental Site Assessment is a report prepared for a real estate holding which identifies potential or existing environmental contamination liabilities. The analysis, often called a Phase I ESA, typically addresses both the underlying land as well as physical improvements to the property; however, techniques applied in a Phase I ESA never include actual collection of physical samples or chemical analyses of any kind. Scrutiny of the land includes examination of potential soil contamination, groundwater quality, surface water quality and sometimes issues related to hazardous substance uptake by biota. The examination of a site may include: definition of any chemical residues within structures; identification of possible asbestos containing building materials; inventory of hazardous substances stored or used on site; assessment of mold and mildew; and evaluation of other indoor air quality parameters[1].

Actual sampling of soil, air, groundwater and/or building materials is typically not conducted during a Phase I ESA. The Phase I ESA is generally considered the first step in the process of environmental Due Diligence.

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Apr 15

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Apr 15

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Apr 15

MEDIA ADVISORY April 15, 2014 EPA and South Carolina State University to participate in Fun Walk/Run in Orangeburg, SC to Promote Asthma Awareness Contact Information: Dawn Harris Young, (404) 562-8421 (Direct), (404) 562-8400 (Main), harris-young.dawn@epa.gov ATLANTA - The U.S. Environmental Protection Agency (EPA) and South Carolina State University (SCSU) will participate in a fun walk/run on the campus SCSU in Orangeburg, South Carolina in an effort to bring asthma awareness to college students at Historically Black Colleges and Universities (HBCUs).  The goal of the walk/run will focus on common asthma triggers and ways to reduce exposure to indoor and outdoor pollutants linked to asthma.  WHO:   The U.S. EPA and South Carolina State University
WHAT:   Fun Walk/Run promoting asthma awareness
WHEN:  Wednesday, April 16, 2014, 5:30 P.M. - 7:30 P.M.
WHERE:  South Carolina State University 300 College Street NE Orangeburg, SC 29117 Connect with EPA Region 4 on Facebook: www.facebook.com/eparegion4 [ http://www.facebook.com/eparegion4 ]
And on Twitter: @EPASoutheast
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Apr 15

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