For investors, lenders, and corporate buyers, understanding environmental, property, and ESG risks is critical to protecting value and successful transactions. Bridge House Advisors has a long track record of providing the full breadth of environmental, ESG, and facilities due diligence. We deliver standard and bespoke due diligence scopes of work including M&A environmental reviews, environmental site assessments (ESAs), property condition assessments (PCAs), and ESG reviews that deliver clear, commercially relevant insights.
Our experience across diverse deal types and sectors allows us to provide tailored, cost-effective due diligence, that supports risk management, value creation, and long-term resilience.
Environmental Due Diligence
Environmental Due Diligence Desktop Reviews
The Desktop Review is cost-effective environmental due diligence to screen environmental liabilities at lower risk sites, or larger deals where environmental is not likely to be material to the transaction. This screen is ideal for pre-bid evaluations, leased facilities, or properties with recent environmental reports.
Desktop reviews can be customized based on the structure of the deal and potential material liabilities (e.g., environmental impacts, EHS compliance, corporate and legacy liability, potential off-site disposal risk exposures), enabling a staged, scalable approach to environmental due diligence.
RECENT HIGHLIGHTS
- Provided staged approach to environmental diligence for a manufacturer of metal tools with a large portfolio of sites by using a high materiality threshold. Conducted a desktop review of the full portfolio (~25 sites), and flagged locations for which additional diligence would be necessary, including confirmatory site visits, focusing on meeting the needs of the insurance and R&W providers.
- Conducted multiple expedited desktop reviews for large portfolios (100+) of leased and/or sub-leased commercial properties (restaurants, beauty professionals, funeral services, etc.) focused on environmental impacts and potential worker exposure concerns (e.g., vapor intrusion) considered material to the deal.
ESG Due Diligence Screens
Our tailored approach for pre-investment due diligence is designed to highlight material risks, as well as opportunities for value creation , associated with environmental, social, and governance (ESG) considerations relevant to a business’s operations. Our extensive experience conducting ESG due diligence across a wide range of industry sectors enables our Clients to make informed investment decisions that effectively manage risk and unlock value creation opportunities.
RECENT HIGHLIGHTS
- Developed a hybrid pre-investment ESG Due Diligence and post-investment Carbon Footprint scope for a global PE Client, addressing ESG risk, capitalizing on ESG value creation opportunities, and understanding future carbon and climate risk exposure.
- Identified potential vehicle fleet cost savings of $1.7M annually for a business through our pre-investment review of Energy Efficiency.
ASTM Phase I Environmental Site Assessments (ESA)
We conduct ASTM-compliant Phase I ESAs to assess whether a property has known or potential environmental contamination. Our assessments conform with the scope and limitations of the ASTM International (ASTM) Standard E1527-21; Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. We have conducted thousands of Phase I ESAs in support of transactions and financing, ranging from single site engagements to 100+ property portfolios.
RECENT HIGHLIGHTS
- Conducted expedited Phase I ESAs for 121 large-box retail stores across the United States in support of a $950M transaction by leveraging our customized portfolio reporting software tools.
- Conducted combined Phase I ESAs and Property Condition Assessments (PCAs) for over 60 data center facilities. Combining the environmental and facility due diligence is both cost-efficient and combining insights from each workstream results in better, more actionable information for the client.
Environmental Health and Safety (EHS) Limited Compliance Reviews
While Phase I ESAs focus on soil and groundwater risks, EHS compliance reviews assess a business’s regulatory standing and growth potential under federal, state, and local regulations. We can further support transactions by providing an EHS Action Plan, inclusive of costs to address potential deficiencies, and outline, by EHS permit transfer requirements.
Topics covered include air emissions, stormwater and wastewater management, underground and aboveground storage tanks, spill prevention and control, solid and hazardous waste management, chemical inventory and release reporting requirements, polychlorinated biphenyls (PCBs), asbestos containing material (ACM), hazardous materials management, and health and safety programs.
RECENT HIGHLIGHTS
- Evaluated operational compliance, remaining useful life, and closure obligations for a private equity investment in a multi-state portfolio of landfills and waste management facilities.
- Completed buy-side Phase I ESAs and limited compliance reviews for 20+ industrial laundry facilities over the course of the PE hold period. We identified a number of potential deficiencies pre-investment and supported the Company post-close with an EHS Action Plan and provided ongoing support for their corporate EHS manager.
Mergers and Acquisitions (M&A) - Environmental Reviews
Environmental Reviews provide a commercial summary of pre-investment diligence findings at a corporate level. These reviews can be customized based on the deal structure to integrate site inspection findings, desktop reviews including ancillary and/or former locations, potential off-site disposal risk exposures, facility condition, and ESG considerations. The Environmental Review format is customizable and allows for a more nuanced framing of risk and potential mitigation. This work product is readily accepted by the broader structured finance and R&W insurance community.
Environmental Liability - Cost Evaluations
Environmental Reviews (e.g., desktop, site visits, ASTM Phase I ESAs) identify contamination risks but don’t quantify costs to address and/or remediate. Bridge House professionals have extensive experience modeling various liability scenarios and associated costs, including triggers that could lead to discovery and reporting, and subsequent regulatory requirements. Where applicable, Bridge House would identify commercial solutions including pre-emptive insurance or protections through various purchase agreement mechanisms.
Environmental Liability reviews do not require sampling data. Bridge House develops bespoke cost models using appropriate statistical approaches and using the available data. Cost evaluations are tailored, with transparent assumptions and modeling. We provide reasonable, probable, and high-range (e.g., reasonable worst case) estimates, incorporating Net Present Value where applicable.
Reserves/Provision Analysis
Bridge House helps clients establish and manage environmental reserves in accordance with FASB and GAAP standards, including contingent liabilities under SOP-96-01 and FAS 5. We also prepare estimates for Asset Retirement Obligations (ARO) under FAS 143/FIN47, using fair value techniques per FAS 157. which may be met with probably weighted estimates that incorporate multiple scenarios and multiple settlement dates.
Our team of experts collaborates with management and counsel to ensure that financial estimates are defensible, scenario-based, and aligned with reporting requirements.
Asset-Related Services
Property Condition Assessments (PCA)
Where an investment includes responsibility for maintaining structural and mechanical systems associated with a facility, Bridge House provides a Property Condition Assessment (PCA) in accordance with the ASTM E2018 Standard Guide for Property Condition Assessments: Baseline Property Condition Assessment Process.
Our PCAs deliver actionable insights into building conditions, with cost and timing estimates for immediate repairs and longer-term capital needs (10–12-year Replacement Reserve Table); helping clients plan and manage future expenditures.
RECENT HIGHLIGHTS
- Conducted concurrent Phase I ESAs and PCAs for a 7-site high-rise portfolio in Atlanta, Georgia.
- Conducted concurrent Phase I ESAs, PCAs, Zoning and ALTA surveys for more than 40 car wash facilities throughout the southern continental U.S.
Facility Condition Evaluation (FCE)
Our bespoke Facility Condition Evaluations (FCEs) = assess the current condition of site and building systems. We developed this bespoke scope of review to identify immediate repair needs and major capital expenditures. The main goal of the FCE is to identify construction defects, facility components with shorter-than-expected lifespan, or poorly maintained systems. Clients rely on FCEs for capital and strategic planning, triple-net lease deposit recovery, and predictive/preventive maintenance.
Facility Sustainability Assessment (FSA)
Facility Sustainability Assessments (FSAs) assess risks related to physical climate change, people, and facility operations. We assess building systems for immediate cost savings and major capital expenditures that need to be reserved for. As part of the evaluation, a limited energy efficiency and building system assessment identifies opportunities for total energy savings, savings for individual systems, carbon emission reduction project costs, and return on investment (ROI) for identified energy efficiency projects. We also assess business continuity risks such as flood risk, water supply, hurricane/typhoon risk, wildfire risk, and heat wave impacts over 15- or 30-year scenarios using physical climate risk modeling.
Green PCAs
The primary objective of a Green Property Condition Assessment is focused on identifying opportunities to improve energy efficiency, maximize water efficiency, re-use and recycle materials where practical, and safeguard the indoor air quality of the building. A Green PCA estimates costs using both “traditional” and “green” principles. Green PCAs typically also include an Energy Audit.
Energy Performance Analysis
For large building/facility portfolios, Bridge House uses utility consumption and cost data to analyze leaders and laggards across the portfolio to help “size the opportunity” (in dollars) of a proactive energy performance improvement program. To help our clients improve performance, capture cost savings, and reduce GHG emissions, the Bridge House approach first focuses on no- and low-cost operations and maintenance-oriented tactics for a fast start.
ADA Assessments
Passed in 1990, the Americans with Disabilities Act (ADA) is a federal regulation establishing enforceable building standards to accommodate the use by individuals with disabilities. Where a corporation may have stated policies and commitments that exceed ADA requirements Bridge House can additionally perform this gap analysis.
Seismic Loss Evaluations
Bridge House can complete Seismic Loss Evaluation in accordance with the ASTM E2026-16a Standard Guide for Seismic Risk Assessment of Buildings and the ASTM E2557 practice for Probable Maximum Loss/Seismic Risk Assessments. Depending on the level of detail required, there are several levels of effort that can be completed ranging from a review of available documentation to detailed independent engineering analysis.
Lender Services
ASTM-Compliant and Client-Specific Phase I Environmental Site Assessments (ESAs)
Bridge House delivers Client-specific, ASTM-compliant, Phase I ESAs to support a wide range of due diligence needs — from refinancing and new loans to real estate acquisitions and portfolio reviews. We work closely with clients to meet in-house and regulatory requirements, ensuring assessments are compliant, timely, and exceed expectations.
RECENT HIGHLIGHTS
- Completed 32-Site fuel station portfolio, providing detailed overview of current underground storage tanks, regulatory status, and potential environmental impacts and risks from long- and short-term operations.
- Provided a Phase I ESA of former landfill assisting in determination of historical risk and ongoing liability associated with a potential redevelopment of the property.
Records Search with Risk Assessment (RSRA)
Bridge House provides Small Business Administration (SBA) 7(a) Loan Program and SBA 504 Loan Program Records Search with Risk Assessment (RSRA) reports for low-risk properties, allowing a lender to evaluate environmental risk quickly for minimal costs. The RSRA can also be used on non-SBA loans as a screening tool to manage the environmental risk on any property.
ASTM-Compliant and Client-Specific Transaction Screen Assessments (TSAs)
Bridge House’s Client-specific, ASTM-compliant, Transaction Screen Assessments (TSA) provide a cost-effective ASTM-governed due diligence product that allows our Clients to understand the environmental risk of a property while with a reduced cost and shorter timeline compared to a Phase I ESA.
The TSA scope of work includes a Site visit, regulatory records review, interviews with key site personnel, and review of historical records (e.g., aerial photographs, Sanborn Fire Insurance Maps, city directories, etc.).