Partner does a high volume of physical due diligence for lenders, which is largelyaimed at evaluating potential risks with the collateral that couldimpact the borrower’s finances or the bank’s ability to take backthe property if the borrower defaults.

What about when the bank will own the property? Duediligence for bank branches and bank-owned facilities is usuallyfar more comprehensive and covers a broader range ofconcerns. The priorities during this situation are also quitedifferent – less about risk tolerance and more about liabilityprotection.

Environmental Due Diligence for BankFacilities

When the bank is the prospective property owner, a fullycompliant AAI / ASTM E1527-05Phase 1 Environmental Site Assessment is essential. CERCLA liability protectionis a prime concern as well as other federal and state laws, thusstreamlined or “desktop”environmental reports that a lender might use during loan duediligence won’t make the grade for bank facility duediligence.

RiskTolerance