Recently, XCG successfully assisted a purchaser make an informed business decision about moving forward with a purchase/sale agreement. The environmental work included a Phase I Environmental Site Assessment (ESA) and follow-up Phase II ESA to assist in understanding the environmental site conditions and risks. As well, the completion of both a property condition assessment (PCA) and designated substance survey (DSS) was undertaken to assist in understanding the short and long-term renovation and building improvement costs. All of this work was done to meet the environmental condition waiver deadline in the purchase and sale agreement within a period of eight weeks leading up to the end of 2016.
The subject property was improved with a single-storey building constructed circa 1960 and included an office area, and a plant area used for light industrial purposes. The building was previously occupied by the same business for the last twenty years. Areas of potential environmental concern included a spill containment underground storage tank (UST), a historic pad-mounted transformer area, and an area of stockpiled fill of unknown quality or source. These areas of potential concern were investigated through the advancement of boreholes and collection of soil and groundwater samples.
Building and Property Conditions
A PCA was completed to visually assess the present condition of the on-site property elements, buildings, and related structures, providing deficiency items to be considered as part of the purchase of the property. The PCA report included a table summarizing capital expenditures and item repairs required to maintain the property value over the term of an assumed financing agreement.
Designated Substance Review (Asbestos/Lead)
The DSS included a review of background information pertaining to the design and use of the building, a site visit, and collection and laboratory testing of a total of 32 samples of different types of building materials. In addition, a Lead in Drinking Water Assessment was completed to determine if lead may be leaching from potential lead-containing water supply lines into the drinking water coming into the building.
The timely and successful completion of the environmental work allowed XCG’s client to make an informed business decision without delaying the overall purchase agreement.