May 18, 2020
How much does a Phase 1 ESA Cost?
Thinking that you might need a Phase 1 ESA, but are unsure of the costs associated with it? We’ve all been there. In this article, we’ll walk you through what a Phase 1 ESA is, what it might cost, and the factors that impact the cost of the process. Let’s start at the beginning…
What is a Phase 1 ESA?
A Phase 1 Environmental Site Assessment (Phase 1 ESA) is an investigation of a property’s current and historical use. The process views and investigates a property in regards to former use in order to determine if there is a potential for hazardous environmental conditions which might be present on the property. Typically, a Phase 1 ESA involves an on-site inspection by an environmental firm with detailed photography to document conditions. It also reviews records for information about past ownership and uses, and determines if any of them were likely to involve hazardous materials.
Why do I need a Phase 1 ESA?
Lenders require a Phase 1 ESA for all properties that are greater than 4 units, because it’s often helpful for property due diligence, redevelopment projects, and the rezoning of a property. A Phase 1 ESA interviews past and present building occupants, owners of neighboring properties, and relevant others. A Phase 1 ESA does not involve testing of materials like paint, soil, or moisture, though a visual inspection may indicate the presence of hazardous materials.
How much should I expect to pay for a Phase 1 ESA?
Unfortunately, there is no blanket cost for a Phase 1 ESA. Due to a variety of factors that could impact the time it takes to inspect the building and the complexity of the procedure, a Phase 1 ESA could cost anywhere between $1,800 to $4,600+.
What specifically impacts the cost of a Phase 1 ESA? Any of the following factors could have an impact:
- Types of building(s), and building features
- The current and past use of the property
- If any other work is added on to the Phase 1 ESA, including an environmental audit, or testing.
- How quickly you need the Phase 1 ESA to be completed
Got more questions about Phase 1 ESA pricing? Give our experts a call at 1-800-595-7616 with any questions!