Due Diligence

Records Search with Risk Assessment

As part of Bluestone’s commitment to providing affordable services for our clients, we offer the service of providing a Records Search with Risk Assessment (RSRA) report as an initial due diligence screening (prior to performing a Phase I). RSRAs are recognized by the Small Business Administration (SBA) and are commonly performed for transactions utilizing a SBA 7(a) or 504 Loan Program. An RSRA provides clients with a preliminary assessment of a property based on a simply ranking of high, elevated, or low risk/probability for having a Recognized Environmental Concern (REC). Properties with a high or elevated risk may require further assessment (ETS, Phase I or II).

A RSRA involves the professionals at Bluestone performing:

  • Database search of publicly available federal, state and local regulatory agency records.
  • Limited historical record review of the subject property and adjacent sites
  • Desktop review of the above information by an Environmental Professional

The purpose of RSRA (for commercial real estate) is when the user wishes to conduct limited environmental due diligence screening that is less comprehensive than a Phase I ESA and does not require qualification under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) Landowner Liability Protections (LLPs).

Environmental Transaction Screen

To further assist our developer and business clients with affordable services, we also offer the service of providing an Environmental Transaction Screening (ETS) report as an initial due diligence screening (prior to performing a Phase I) on commercial properties. An ETS as an alternative approach to a Phase I ESA that is accepted by many lending institutions and are completed in accordance with the ASTM E1528 standard. An ETS is typically performed for properties with a low risk of RECs and that have substantial historical information available.

A ETS involves the professionals at Bluestone performing:

  • A Site inspection,
  • A property owner and/or occupant interview & questionnaire,
  • Database search of publicly available federal, state and local regulatory agency records.
  • Limited historical record review of the subject property and adjacent sites
  • Desktop review of the above information by an Environmental Professional

The purpose of ETS (for commercial real estate) is when the user wishes to conduct limited environmental due diligence screening that is less comprehensive than a Phase I ESA and does not require qualification under the CERCLA LLPs. Specifically, this practice is intended primarily as a commercially reasonable approach to conducting an inquiry to identify potential environmental concerns in connection with a property.

Phase I Environmental Site Assessments

We complete our Phase I Environmental Site Assessments (Phase I) conducted following the latest ASTM Standards. We work with our clients to perform assessments that align with the project objectives as they are an vital part of the due diligence and decision-making process for lending and/or property purchase decisions

A Phase I involves the professionals at Bluestone performing:

  • A Site inspection including surrounding property reconnaissance,
  • A review of historical documentation (i.e. fire insurance maps, city directories and aerial photographs),
  • A review of hazardous material and petroleum product storage, spill and disposal records,
  • A local, regional, and/or state agency file review,
  • A property owner and/or occupant interview & questionnaire

The purpose of a Phase I is intended to permit a user to satisfy one of the requirements to qualify for the innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations under the CERCLA LLPs. Our Phase I’s also meet the requirements of the Housing & Urban Development (HUD) and Small Business Administration (SBA).

Phase II Environmental Site Assessments

If RECs are identified in the Phase I, Bluestone Environmental can perform a site investigation that is designed to fit your needs. These Phase II services typically involve characterizing possible site contamination through site assessments (a.k.a., subsurface investigations), working to identify and define the extent of site contaminants in soil, groundwater, and/or soil gas (a.k.a., soil vapor). Phase II work involves sampling by means soil borings (drilling), the installation of groundwater-monitoring wells, and may involve the use of a geophysical survey to assess subsurface features. We capture the findings of the site assessment efforts in our reports that not only includes a summary of the findings, but also interprets the data in our conclusions to tell the client what the data means and provide recommendations based on the client’s objectives.