Environmental Due Diligence

Each year, Triterra performs numerous Environmental Due Diligence Assessments (Phase I & II Environmental Site Assessments, Transaction Screens, etc.) in response to property transactions throughout the Midwestern United States. Our environmental due diligence platform is a well-developed process that utilizes industry best practices in consideration of deal-specific requirements (i.e. lending institution policies, MSHDA or SBA procedures, time constraints, need for confidentiality, etc.). We understand that every transaction and parcel of real estate is unique and that environmental issues can limit real estate sales, use, and value. Therefore, it is important to complete the environmental due diligence process and understand what environmental issues may pose a risk to the transaction or overall project goals.

Often the first step in the process is a Phase I Environmental Site Assessment (ESA) performed in conformance with the American Society for Testing and Materials (ASTM) International Standard E1527-13 and on behalf of the user. The standard meets All Appropriate Inquiry (AAI) rules that qualify an innocent landowner, contiguous landowner, or bona fide prospective purchaser as defined by Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Other types of assessments are an option and may be appropriate if a less comprehensive evaluation is needed by the user.

When environmental issues or RECs are identified and additional investigation is warranted as part of the environmental due diligence process, a Phase II ESA is proposed. The Phase II ESA generally involves intrusive sampling of soil, groundwater, and/or soil gas to evaluate if potential contamination exists on the property. When contamination is identified, Triterra communicates the significance of the results and identifies strategies to minimize the potential risk for the user. In Michigan, buyers of a contaminated property may complete a Baseline Environmental Assessment (BEA) that limits their liability for existing contamination. However, a new owner still must exercise Due Care to protect human health and the environment as part of the future use of the contaminated property. Other circumstances may require that remediation or other corrective action be taken.