Phase I & II Due Diligence Assessments for GTJ Realty
GTJ Realty, a multi-million dollar real estate investment trust with significant holdings several Connecticut submarkets, contracted PWGC to prepare multiple Phase I and II Environmental Site Assessments (ESA) for multiple properties for acquisition and/or financing purposes.
Connecticut sites assessed by PWGC on behalf of GTJ include multiple properties in Shelton, Orange, Milford and Rocky Hill. Of note, PWGC conducted an ESA at 4 Meadow St., Norwalk. The subject site is approximately 2.87 acres on which a 50,460-square foot warehouse/distribution building resides. The site has parking / paved areas to the north and west of the building.
The purpose of the Phase I ESA was to identify and evaluate the presence of recognized environmental conditions at the site. Recognized Environmental Conditions REC) included the presence or likely presence of hazardous substances or petroleum product under conditions that indicate an existing release, a past release or material threat of a release of any hazardous substance or petroleum product into structures on the property or into the ground, groundwater or surface water of the property.
The purpose of the Phase II ESA was to further assess REC’s at the site. The assessment consisted of a visual inspection of the subject site and the surrounding areas, interviews, a review of historical information and aerial photographs, and a review of pertinent local, state, federal and facility records. Environmental Data Resources (EDR) of Southport, Connecticut provided the following: a computerized database search of environmental compliance records of sites within an ASTM standard radius of the property, a Sanborn fire insurance map search, historical aerial photograph search and a historical telephone directory search.
Potential RECs identified at the subject property were evaluated to determine whether items initially suspected to be recognized environmental conditions are in fact recognized environmental conditions. PWGC, after conducting the Phase I ESA, recommended that a Phase II ESA be conducted that consists of a subsurface investigation of the site.
PWGC conducted eight soil and four groundwater borings at the site in order to assess these potential issues. The data obtained through the borings did not suggest the presence of an on-site source of contamination. PWGC recommended that the residual impacts be managed by a Site Management Plan in order to guide site management activities such as capping with asphalt / concrete and clean fill.