Part 2: What Happens When an ESA Phase I requires a Phase II?
David Brewer
We provide due diligence services for Commercial Real Estate Transactions: ALTA Surveys, Zoning Reports, Environmental Ph I & Ph II, and Property Condition Reports
Case Study: Mitigating Environmental Concerns to Facilitate a Successful Shopping Center Transaction
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?? Client: CRE Investor in the Southeast
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?? Location: Alabama
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?? Project Duration: 3 Weeks
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Introduction:
In the realm of environmental consulting, challenges often come unannounced, demanding quick thinking and expertise. This case study delves into how NV5, a pioneering environmental consulting firm, seamlessly navigated an unexpected environmental hurdle during a project involving a shopping center in Alabama. Their swift action and comprehensive approach not only resolved the issue but also ensured a successful deal.
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Background:
When a shopping center in Alabama sought NV5's expertise for an Environmental Phase I assessment, the initial goal was to ensure compliance and safety. Little did they know that a seemingly minor issue would become a focal point of the assessment, underlining the importance of thorough evaluations.
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Challenges:
During the site inspection, NV5's experienced team noticed an alarming incident involving the release of hydraulic oil onto the soil from a trash compactor. While some initial steps had been taken, the duration of the release remained uncertain. This incident had the potential to derail the project's progress, prompting NV5 to take proactive measures.
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Phase I to Phase II Transition:
Recognizing the complexity of the situation, NV5 recommended advancing to a Phase II assessment. The objectives were clear:
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- Investigate the extent and longevity of the hydraulic oil release.
- Assess the potential environmental impact of the release, particularly on soil and concrete.
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Thorough Phase II Assessment:
The Phase II assessment consisted of:
- Hand auger borings to accurately gauge the depth and reach of contamination.
- Extensive testing to determine the levels of polyaromatic hydrocarbons and compare them against state standards.
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Positive Outcome and Cleanup:
Surprisingly, the contamination levels of polyaromatic hydrocarbons were found to be below the state standards. Most of the contamination had adhered to the concrete and not penetrated it, significantly simplifying the cleanup process. This crucial discovery paved the way for the shopping center transaction to proceed without hindrance.
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Efficient Cleanup and Conclusion:
NV5's diligent approach allowed for a swift and targeted cleanup. The team efficiently removed a few drums of soil, thereby addressing the concern without disrupting the property extensively. The environmental challenge that once seemed daunting was overcome due to NV5's insightful evaluation and strategic action.
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Lesson Learned: The Unseen Can Be Significant:
This case study exemplifies the significance of a meticulous assessment, especially in situations where issues might not be immediately apparent. What appeared as a minor release on the surface transformed into a more intricate concern beneath. NV5's ability to adapt, evaluate, and implement the appropriate solution saved time, money, and potential disruptions to the property's transaction.
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Conclusion:
NV5's performance in this case is a testament to our expertise in handling unforeseen environmental challenges. By swiftly addressing the hydraulic oil release issue and guiding the shopping center towards an effective cleanup strategy, NV5 once again demonstrated their commitment to fostering safe and sustainable environments while ensuring smooth business operations.