Why an RSRA is a Great Resource.
By: eScreenLogic Team | 4/2/20
Just as one property differs from another, not every CRE transaction requires a Phase I ESA. Here are a few good reasons why Desktop Reports are an amazing alternative to traditional environmental due diligence.
- Record Search with Risk Assessments (RSRA), also referred to as Desktop Reports are a cost-effective environmental risk assessment for Small Business Association (SBA) commercial property loans. RSRAs categorize the subject property’s environmental risk as either “LOW” or “ELEVATED.”
- RSRAs deliver quicker results, decreasing the overall loan-to-approval time of a property deal. Extensive reports, such as Phase I ESAs, can delay closing times depending on additional variables, such as file availability and scheduling site reconnaissance.
- Desktop Reports (RSRA) may be run on: 1) SBA or conventional loans that are $500,000 or less (however, have been used successfully on higher valuation conventional loans); 2) sites hosting activities that are not in the NAICS codes list of “Environmentally Sensitive Industries”; and 3) properties that typically don’t use hazardous chemicals or generate hazardous waste. Qualifying properties can be evaluated as quickly as three business days.
- Where loan policy allows, an RSRA is a low-cost solution to a Phase I ESA for assessing potential environmental risk, even before a purchase offer or bid. An RSRA allows a lender or borrower to determine whether a property is suitable for immediate investment or requires further assessment before completing a purchase.
- A Desktop Report is an excellent resource for evaluating an asset-light business when additional properties are involved in the transaction, updating a historical Phase I environmental site assessments, or to stress test a broad portfolio for potential environmental liability.
- An increasingly popular use of the Desktop Report is to facilitate property refinancing. Particularly when a previous Phase I ESA was completed within the previous 24-months and business use has remained the same, a Desktop Report can quickly and economically allow an environmental professional to evaluate risk to a property.
Can an RSRA keep your transaction moving?
A desktop report help meet the environmental requirements of your loan.
If you’re looking to move along your transaction, call our support team (916) 288-8170 or email us support@cretelligent.com to see how we can assist you.
