Does your commercial real estate property require further environmental assessment?
Trying to figure out what steps to do next may be a very frustrating process that can also lead to longer wait times and more out-of-pocket costs for your customers. A Transaction Screening Assessment, sometimes known as a TSA, might be the solution. An alternative to a Phase I Environmental Site Assessment that is both less expensive and quicker is a TSA (ESA). When you place an order for a TSA, you will receive a comprehensive environmental site assessment, which will ensure that your CRE transaction goes through without a hitch.
What is Transaction Screening Assessment?
A Transaction Screen Assessment is a cost-effective environmental due diligence report that provides an overview of the potential environmental liabilities associated with a property. Also known as an Environmental Transaction Screen, this assessment is a scaled down version of the Phase I Environmental Site Assessment and is used to identify any existing or potential environmental concerns. Partner provides hundreds of these assessments each year, and has extensive experience in evaluating and communicating the potential environmental liability associated with a site.
The Transaction Screen Assessment includes an evaluation of historical land use, regulatory records search, interviews with local officials, and visual inspection of the property. This information is then compiled into a concise report that outlines any potential risks associated with the property. By providing this information up front, buyers can make informed decisions about their purchase without having to incur additional costs for more comprehensive assessments.
What is the main distinction between an ESA Phase I report and a TSA report?
What is the main distinction between an ESA Phase I report and a TSA report?
A TSA is an environmental analysis with a restricted scope that is performed with the goal of identifying potential environmental concerns in accordance with the ASTM Standard Guidance E1528-14. Transaction Screen Assessments are typically carried out for commercial real estate, and they are strongly advised for commercial properties located in areas where there are expected to be little concerns posed by neighboring properties.
Scope of the Transaction Screening Assessment
The Transaction Screen Assessment is an environmental due diligence product that is governed by the ASTM Standard Practice 1528-14. It involves a site visit, regulatory records review, key personnel interviews and limited historical research. This assessment is different from the Phase I Environmental Site Assessment (ESA) in that it does not meet the requirements and standards of the EPA’s All Appropriate Inquiry and therefore does not offer protection from CERCLA liability.
The purpose of a Transaction Screen Assessment is to identify potential environmental liabilities associated with a property or transaction. The scope of work includes an evaluation of current and past activities on the property, as well as any potential sources of contamination nearby. The results of this assessment can help inform decisions about whether to proceed with a transaction or to take additional steps such as further investigation or remediation.
Screening of Transactions as an Element of Environmental Policy
The Transaction Screen Assessment is a valuable tool for lenders, brokers and investors to evaluate environmental liability at a lower cost than the Phase I Environmental Site Assessment. This tiered approach to environmental risk management is often required by many states, who have established guidelines regarding thresholds of various contaminants and a specific process for conducting a Human Health Risk Assessment.
The Transaction Screen offers an efficient way to identify potential environmental risks associated with a property or project. It provides an overview of the site’s history and current conditions, including any known contamination or hazardous materials present onsite. It also evaluates the potential human health risks associated with any identified contaminants.
What are the Processes for Transaction Screening Assessment?
Transaction screening reports are an important aspect of Phase 1 environmental assessments. They are used to identify potential environmental liabilities associated with a property, which can have significant financial and legal implications for the buyer, seller, and lenders involved in a property transaction. The transaction screening process typically involves several steps, which are outlined below.
- Initial Site Assessment: The first step in the transaction screening process is to conduct an initial site assessment. This involves reviewing available data on the property, such as historical records, aerial photos, and maps. The purpose of this assessment is to identify any potential environmental concerns that may need further investigation.
- Site Visit: The next step is to conduct a site visit. During this visit, an environmental professional will visually inspect the property and surrounding areas for any evidence of contamination, such as spills, leaks, or hazardous materials.
- Records Review: The environmental professional will also review any available records related to the property, such as regulatory reports, permits, and compliance documents. This helps to identify any past or present environmental issues that may require further investigation.
- Stakeholder Interviews: The environmental professional may also conduct interviews with stakeholders, such as property owners, tenants, and regulators. These interviews can provide valuable insights into the history and current use of the property, as well as any potential environmental concerns.
- Data Analysis: Once all the information has been collected, the environmental professional will analyze the data to identify any potential environmental liabilities associated with the property. This includes assessing the risk of contamination and determining whether further investigation or remediation may be necessary.
- Reporting: Finally, the environmental professional will prepare a transaction screening report outlining the findings of the assessment. This report will typically include a summary of the environmental concerns identified, as well as recommendations for further investigation or remediation, if necessary.
In conclusion, the transaction screening process is a critical component of Phase 1 environmental assessments. It helps to identify potential environmental liabilities associated with a property and provides valuable information for buyers, sellers, and lenders involved in a property transaction. By following the above steps, environmental professionals can provide accurate and comprehensive transaction screening reports that protect all parties involved in the transaction.
If you need any assistance with your Transaction Screening Assessment please email info@rsbenv.com. We look forward to hearing from you.